Category Archives: FAS 109

Does your life insurance company qualify for a reduced tax rate?

What tax rate should a small life insurance company use when it records its deferred tax assets and liabilities for GAAP (ASC 740 / FAS 109)?  Enacted vs. effective rate. GAAP generally requires that a small life insurance company compute … Continue reading

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The IRS and Uncertain Tax Positions

Who Must File Schedule UTP in 2010. Beginning on the 2010 tax return, a company will be required to file Schedule UTP if they: issue audited financial statements; file Form 1120, Form 1120-L (life insurance companies), or Form 1120-PC (property … Continue reading

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A Leading Cause of Restatements and Material Weaknesses

Material weaknesses and tax accruals.  Accounting for income taxes is often a leading cause of material weaknesses and/or restatements.  The reason for this is because companies generally lack the needed personnel to prepare their tax provision, the personnel the company … Continue reading

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Tax Provision – A Material Weakness Waiting to Happen?

Auditor independence and tax accruals. Prior to the passage of the auditor independence rules as part of the Sarbanes-Oxley act (“SOX”) in 2002, many companies, both public and private, relied on their external auditors to assist in the preparation of … Continue reading

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