Tax Code, Global Accounting Rules Seen Clashing

Reuters, Jun 16, 2008

Tax Code, Global Accounting Rules Seen Clashing

Reuters, Jun 16, 2008

Regulators at the U.S. Securities and Exchange Commission are currently crafting a road map that would set milestones and targets for U.S. companies to drop U.S. GAAP and join more than 100 other companies using International Financial Reporting Standards (IFRS). But, the U.S. tax code and other basic facts of U.S. corporate life would need revising to enable U.S. companies to meet these international rules.

States Debate Quid Pro Quo on Corporate Taxes

Financial Week, Apr 24, 2008

States Debate Quid Pro Quo on Corporate Taxes

Financial Week, Apr 24, 2008

As budgets turn red, states look to lure more business within their borders with lower taxes, while closing loopholes.

Can Textron Keep Its Secrets?

CFO.COM, Apr 23, 2008

Can Textron Keep Its Secrets?

CFO.COM, Apr 23, 2008

The U.S. Court of Appeals is expected to rule this summer on a case that could determine whether companies have a right to keep secret their tax accrual work papers. The appeal, being brought by the Internal Revenue Service, involves conglomerate Textron Inc., and the company's effort to keep proprietary work papers private.

Tax-Hungry States Complicate FIN 48

Compliance Week, Apr 15, 2008

Tax-Hungry States Complicate FIN 48

Compliance Week, Apr 15, 2008

With Sarbanes-Oxley tamed and states hungry for new revenue, tax professionals say 2008 will be a year of reckoning for corporate finance staffs booking tax benefits and liabilities in accordance with Financial Interpretation No. 48, Accounting for Uncertainty in Income Tax.

IRS Targeting R&D Claims

Financial Week, Jan 28, 2008

IRS Targeting R&D Claims

Financial Week, Jan 28, 2008

As more firms claim research and development tax credits, the agency has designated them a top priority for enforcement. Another ‘product’?

Taxmen Seek Closer Ties to Businesses

Financial Times, Jan 15, 2008

Taxmen Seek Closer Ties to Businesses

Financial Times, Jan 15, 2008

Large businesses will be offered closer links with tax authorities under a new approach by the Organisation for Economic Co-operation and Development that is meant to tackle aggressive tax avoidance.

OECD Study Calls for “Enhanced Relationship” Between Large Corporate Tax Payers, Tax Intermediaries and Tax Authorities to Combat Aggressive Tax Planning

KPMG International, Jan 11, 2008

OECD Study Calls for “Enhanced Relationship” Between Large Corporate Tax Payers, Tax Intermediaries and Tax Authorities to Combat Aggressive Tax Planning

KPMG International, Jan 11, 2008

An OECD study into the role that tax advisers play in the use of tax minimization techniques by large companies has recommended that governments should attempt to reduce the demand for aggressive tax planning by encouraging a wider tripartite relationship between revenue bodies, taxpayers and tax advisers.

Changes in the Climate of Tax Administration in the U.K. and the OECD

TGI Webcast Executive Summary, May 8, 2008

Changes in the Climate of Tax Administration in the U.K. and the OECD

TGI Webcast Executive Summary, May 8, 2008

The Tax Governance Institute (TGI) recently hosted a live video Webcast on the changing climate of tax administration in the United Kingdom and the Organisation for Economic Co-operation and Development (OECD). This executive summary highlights the discussion of the tripartite relationship between revenue bodies, taxpayers, and tax intermediaries, and how this relationship may influence the revenue bodies' ability to assess the tax risk presented by the taxpayers.

IFRS is Coming, What Does This Mean for Tax?

Washington National Tax, KPMG LLP, Apr 11, 2008

IFRS is Coming, What Does This Mean for Tax?

Washington National Tax, KPMG LLP, Apr 11, 2008

Many companies are in the early stages of considering what impact the transition to International Financial Reporting Standards (“IFRS”) from U.S. Generally Accepted Accounting Principles (“U.S. GAAP”) will have on financial reporting; however, are they also thinking about the impact it will have on tax reporting?

Changes in Tax Reserves in Anticipation of FIN 48

Social Science Research Network (SSRN), Mar 18, 2008

Changes in Tax Reserves in Anticipation of FIN 48

Social Science Research Network (SSRN), Mar 18, 2008

FIN 48, Accounting for Uncertainty in Income Taxes, introduces new disclosure and computational requirements that reduce discretion in estimating tax reserves. FIN 48’s adoption rule requires firms to record cumulative effect adjustments in stockholders’ equity rather than through earnings. The author's predict that over-reserved firms will decrease their tax reserves in advance of adoption because such releases will enhance earnings and potentially decrease visibility to the IRS.

FIN 48 and Tax Compliance

Social Science Research Network (SSRN), Mar 5, 2008

FIN 48 and Tax Compliance

Social Science Research Network (SSRN), Mar 5, 2008

The authors developed a model to examine the effects of Financial Accounting Standards Board (FASB) Interpretation No. 48, Accounting for Uncertainty in Income Taxes (FIN 48) on the strategic interaction between publicly-traded corporate taxpayers and the government. Their model demonstrates that the economic effects of FIN 48 include: higher expected payoffs to some taxpayers that claim uncertain tax benefits; a disclosed liability that may understate the expected tax liability; and continued claims of uncertain tax benefits by taxpayers whose circumstances only weakly support their position. Their findings contradict conjectures in the popular press.

Implications of the New, Heightened Tax Return Preparer Penalties

TGI Webcast Executive Summary, Feb 21, 2008

Implications of the New, Heightened Tax Return Preparer Penalties

TGI Webcast Executive Summary, Feb 21, 2008

The Tax Governance Institute (TGI) recently hosted a live videocast panel discussion regarding the implications of the new, heightened tax return preparer standards. The panel included an attorney-advisor in the Office of Tax Policy, U.S. Department of Treasury, and one of the principal authors of the guidance; a former Treasury associate legislative counsel; and a former deputy commissioner of the Internal Revenue Service.

FASB Defers Interpretation 48 for Nonpublic Entities

KPMG Defining Issues, Jan 25, 2008

FASB Defers Interpretation 48 for Nonpublic Entities

KPMG Defining Issues, Jan 25, 2008

Defining Issues 08-5 discusses the FASB’s decision to permit nonpublic entities to defer applying FASB Interpretation No. 48, Accounting for Uncertainty in Income Taxes, until they prepare their annual financial statements for years beginning after December 15, 2007, unless they have already issued a complete set of annual financial statements that fully reflect the Interpretation’s requirements or are nonpublic subsidiaries of public entities that report in U.S. GAAP. The FSP that will incorporate these decisions is expected to be issued soon.

OECD Study into the Role of Tax Intermediaries

Organisation for Economic Co-operation and Development, Jan 10, 2008

OECD Study into the Role of Tax Intermediaries

Organisation for Economic Co-operation and Development, Jan 10, 2008

This report by the OECD’s Forum on Tax Administration (FTA) looks closely at the role tax advisers play in the increasingly complex tax environment, examining the work they undertake in helping their clients comply with the requirements of existing tax codes and complex tax legislation.

IFRS: Tax Considerations when Converting from U.S. GAAP