The Accounting for Uncertainty in Income Taxes released by FASB on July 15, 2006 has increased substantially the complexities of accounting for taxes. These new rules change dramatically how companies account for uncertain income tax positions. They include a higher standard that tax benefits must meet before they can be recognized in a company’s financial statements. Although FIN 48 is intended to increase the comparability of financial statements, it also significantly increases the calculation and documentation requirements for individually identified income tax exposures. FIN 48 requires a more rigorous and methodical assessment of financial statement reporting of tax decisions made and applies to all tax positions accounted for under FASB Statement 109.

Benefits of working with BAILEYCOLE

Our professionals have extensive skills in FAS 109, corporate taxes and accounting under GAAP. Our approach includes working with your in-house team or independently to

• develop implementation plans including resource requirement
• review and document income tax positions,
• determine which tax positions may be recognized,
• measure uncertain tax position benefits.
• assist in establishing in-house processes and controls
• review for compliance with SOX