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Essential ASC-740 Resources

ASC 740 is a complex financial accounting standard that affects all C-corporations required to produce generally accepted accounting principles (GAAP) financial statements. From terms and definitions to calculations and reporting, the standard for computing and reporting income tax provisions demands painstaking attention to detail. As a result of these efforts, companies are able to recognize current year taxes due or refundable, and manage expected future tax consequences of deferred assets and liabilities.

TaxOps is experienced with every aspect of ASC 740, including:

  • Accounting for income tax uncertainties;
  • Business combinations;
  • Valuation allowances;
  • International operations; and
  • Sarbanes-Oxley Act 404 documentation; and
  • IAS 12, the IFRS equivalent to ASC 740.

ASC 740 addresses financial accounting and reporting for the effects of income taxes – federal, foreign, state and local – that result from an enterprise’s activities during the current and preceding years. ASC-740 is the Financial Accounting Standards Board (FASB) Accounting Standards Codification Topic (ASC) 740, Income Taxes. ASC-740 includes FASB Interpretation No. 48 (FIN 48) – Accounting for Uncertainty in Income Taxes, an interpretation of FASB Statement (FAS) No. 109.

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A Closer Look at ASC 740: Accounting for Income Taxes

Explore how accounting for uncertain tax positions can help smooth out tax liabilities and improve financial statement transparency in A Closer Look at Accounting for Income Taxes. Get the File »

ASC 740 fundamentals series

Download A Closer Look at ASC 740: Accounting for Income Taxes above and also receive the TaxOps Fundamental Series to walk you through the practical application of ASC 740 for preparing an income tax analysis. Everything from basic terms and definitions through calculating uncertain income tax positions is covered in this 10-part series so download the white paper now. 

Contact us

John Monahan, partner with TaxOps, is a specialist in ASC 740 analysis and compliance. He can be reached at 720-227-0060 or jmonahan@taxops.com.

Tax News for ASC 740

 Restatements Rise for Biggest U.S. Companies (Apr 2013)

IRS Updates Statistics on Taxpayers Reporting Uncertain Tax Positions (Mar 2013)

ASC 740 Income Tax Restatements Second Leading Cause for Financial Restatements (Jan 2013)

IRS says UTP descriptions of some tax positions are too “concise” (Jun 2012)

Williams Shareholders take a $500M Hit from a Tax Provision Misstatement (May 2012)


Other Resources

Beginning January 1, 2010, certain corporate taxpayers are required to file Schedule UTP to report uncertain tax positions with the Form 1120. Completion instructions and other information related to the filing of Schedule UTP can be found at the UTP web page at Schedule UTP.

In addition, the IRS posted a list of seven frequently asked questions (FAQs) that supplement the 2010 instructions and other guidance issued on Schedule UTP. The FAQs address some of the key issues that taxpayers and practitioners have raised about Schedule UTP and related guidance.

Seven Frequently Asked Questions

During its review of Schedule UTP (Uncertain Tax Position Statement) filed by taxpayers for the 2010 year, the Internal Revenue Service discovered that descriptions of some disclosed tax positions were more “concise” than they should have been. Review the second set of frequently asked questions issued by the IRS on July 19, 2011.

IRS Schedule UTP Guidance for Preparing Concise Descriptions

More FAQ Guidance on Filing Schedule UTP