CPA Firms Haskell & White, Katherman Kitts & Co. Combine Practices to Enhance Client Services

Tax Provision Compliance and Consulting

Katherman Kitt’s dedicated team of tax professionals provides ASC 740 (formerly FAS 109) compliance and consulting.

What is ASC 740?

ASC 740 is a set of financial accounting and reporting standards related to the effects of income taxes on a company's financial statements. 

ASC 740 also referred to as an "income tax provision", is calculated through an analysis of the company's activities (so operations) for the current and proceeding years.  The result is recorded on the company's financial statements.

Do I need to record a tax provision on my financial statements?

Generally, if you are producing a financial statement under United States Generally Accepted Accounting Principals (GAAP), an income tax provision calculation is needed. 

If you have hired an accounting firm to audit or review your financial statements, they will request that you prepare and present to them your income tax provision calculation.  When this happens, we can help!

We offer a range of provision compliance and consulting services including:

  • Outsourcing of tax provision calculation (including annual and quarterly calculations)
  • Analysis of the effective tax rate impact of transactions
  • Assistance with drafting required financial statement disclosure
  • Assessment and documentation of internal controls relating to the tax provision process