ASC 740 Center of Excellence

Accounting for income taxes  

Accounting for Income Taxes continues to be one of the leading causes of financial statement weakness, deficiencies and restatements. The critical audit matters communication in the auditor’s report continues to highlight the complexity and challenges companies have accounting for income taxes under ASC 740 and IAS 12.

Tax departments are expected to do more with less against the backdrop of accelerated reporting deadlines, business, legislative and regulatory changes, including adoption of new accounting standards, and global tax reform. These factors create a high-risk environment that tax leaders are required to manage.

The KPMG national ASC 740 Center of Excellence (COE) offers a variety of integrated processes and technology solutions that can assist tax departments with their most complex challenges and needs through the deployment of highly technical experienced tax professionals, resident in KPMG offices throughout the US. The US teams liaise with our international collogues to bring a global delivery of service to meet the needs of tax departments of multinational companies. The COE services are supported by the KPMG Washington National Tax Services group as well as our National Office. 

• Preparation (review) of quarterly and annual income tax provision, including:
  • accounting for uncertain tax positions,
  • accounting for business combinations, 
  • valuation allowance analysis, 
  • and fresh start accounting
• Tax process redesign
• SOX control redesign and remediation
• Data collection and management
• “On-call” accounting for income tax consultation
• Tax provision software implementation
• Loan staff