Corporate Tax Co-Sourcing
From financial statement reporting to corporate tax compliance, your organization has a variety of specialized tax needs. BKD’s professionals have experience in a wide array of tax issues.
Let our tax advisors design a tax plan that can help your organization maintain compliance, meet reporting requirements and find potential tax deductions and savings.
Financial Statement Reporting
- Quarterly & Annual Accounting Standard Codification (ASC) 740 Compliance
- Many public companies must rely on alternative resources for their tax accounting calculations and documentation. Your quarterly and annual income tax provisions can be prepared and reviewed by professionals with tax, audit and accounting experience. We also can help prepare or review management’s supporting documentation of assertions made in applicable disclosures. Our professionals can help your company’s internal tax and accounting personnel prepare your income tax provisions in a timely and accurate fashion.
- Uncertain Tax Positions
- Adoption of and compliance with ASC740-10 often requires significant research, analysis and documentation. BKD professionals can help you identify uncertain tax positions, consider the strength of those positions and quantify the impact of such positions on your financial statements.
- Footnote & Financial Statement Presentation & Disclosure
- The SEC has numerous requirements for income tax-related disclosures on company financial statements. BKD professionals can help prepare these disclosures for management discussion and analysis as well as applicable footnotes for your company’s financial statements.
Corporate Tax Compliance
- Preparation & Review of Original Tax Returns & Estimates
- Compliance with U.S., state and local income tax filing requirements is a top priority for public companies. BKD professionals can help you navigate the complex filing and payment requirements to make accurate and timely filings and payments, avoiding costly penalties and unnecessary tax exposure.
- Preparation & Review of Amended Tax Returns
- Amending original tax returns may be necessary following an examination by tax authorities. We can help you prepare amended returns in state and local jurisdictions to avoid potential penalties and tax exposure. In addition, our professionals can review your prior tax return positions for potential errors or missed opportunities and compliance factors.
- Staff Augmentation
- Business and operational needs may preclude companies from adding trained tax and accounting staff to internal teams. In these situations, BKD professionals can help fill the gap and assist management with daily tax and accounting needs so the company doesn’t have to hire and train new employees.
Specialty Tax Services
- Accounting Method Evaluations & Method Change Requests
- Numerous accounting methods are available to help taxpayers properly reflect and report their annual income and expenses. BKD tax professionals can review your existing accounting methods and provide potential alternatives for your consideration to achieve your desired goals and results through appropriate income and expense reporting.
- Domestic Production Activities Deduction (DPAD) Computations (IRC Section 199)
- Most domestic manufacturing entities should consider DPAD, which generally equals 9 percent of the lesser of qualified production activities income or taxable income and provides a permanent tax benefit. BKD tax professionals offer in-depth study and analysis to help evaluate what manufacturing activities may qualify for the DPAD and quantify the deduction.
- E&P & Stock-Basis Calculations
- A corporation’s earnings and profits (E&P) measure its ability to pay dividends. Maintaining current and accurate accounting is important and can be costly to reconstruct after the fact. This frequently overlooked annual exercise is typically reviewed as a component of tax due diligence and in other situations. BKD tax professionals can help corporations without accurate E&P accounting by reconstructing and annually updating this important metric, which is affected by nearly all corporate transactions.
- Engineering-Based Cost Segregation Studies
- Your company’s real estate holdings constitute a huge capital investment. A cost segregation study can help you accelerate depreciation tax deductions, enhancing your property’s financial return. Using an engineering-based approach, BKD’s cost segregation professionals identify portions of a building’s cost that can be allocated to shorter depreciable lives (generally five, seven or 15 years) as opposed to the standard 27.5- or 39-year life. This reclassification facilitates accelerated depreciation, deferred income tax, and increased cash flow.
- Ownership Change Loss & Credit Limitation Determinations (IRC Sections 382 & 383)
- A corporation with significant net operating losses and other tax attributes must consider the effect of IRC Section 382, which may limit its ability to use these tax benefits after an ownership change. Assessment of IRC Sec. 382 limitations is an important component of buy- and sell-side tax due diligence and a multitude of other situations. BKD tax professionals can help you determine whether an applicable ownership change has occurred and quantify any applicable limitation.
- Tax Authority Ruling Requests
- At times, companies may need to obtain a specific IRS ruling on a unique transaction. These rulings are beneficial if taxpayers wish to confirm a transaction will likely not result in a tax law violation. BKD tax professionals can work with you to consider if it’s appropriate to seek a letter ruling from the IRS and can prepare any required written requests on your behalf.
Tax Due Diligence
- If you’re considering acquiring a new business, assessing the tax position of the target company can have a significant impact on its enterprise value or the representations and warranties required to complete a deal. Depending on the target’s size, structure and sophistication level, you may encounter potential roadblocks. BKD tax professionals can help you identify the tax risks with new investments and avoid obstacles to completing the transaction.
Federal & State Research & Development Tax Credits
- If your company has spent time and other resources developing new or improved existing products and business processes, you may qualify for the research and development (R&D) tax credit. Only a fraction of U.S. companies qualifying for the R&D tax credit claim it. Through an engineering-based approach, BKD professionals will help your company identify qualified research activities, quantify associated costs, properly document research expenses and calculate available U.S. and state credits.
- ACFE Releases 2016 Report on Occupational Fraud & Abuse 3/2016
- Fraud Hotlines: Are They Necessary? Do They Work? 3/2016
- Visualizing Employee Activities Through Data 3/2016
- Public Companies – New Accounting Standards Effective for First Quarter 2016 3/2016
- Alert – Work Opportunity Tax Credit Filing Deadline Extended 3/2016
- Alert – In Time for the New Year: Treasury Issues Proposed Regulations for CbC Reporting 1/2016
- Alert – IRS Filing Requirements & Penalties Related to International Boycotts 1/2016
- Alert – New IPU Addresses Definition of Substantial Form 5471 Compliance 1/2016
- Alert – Precision Dose Ruling Could Offer Tax Deduction Opportunities for Manufacturers 1/2016