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Deferred tax assets and liabilities are critical in reporting income tax liability. A correctly-calculated deferred tax asset is a true and valuable business asset; an incorrectly calculated or overlooked deferred tax liability is a disaster waiting to happen. We are highly experienced in detecting and evaluating deferred tax items in a manner that efficiently meets the requirements of ASC 740.

In many cases deferred tax items or potential deferred tax items arise from unusual business transactions. TaxGroup’s transactional expertise allows us to deal with the actual economic issues underlying those items. In many cases we are able to clarify or even resolve tax issues that might appear opaque or difficult to understand.

Logo-Bullet Value In Tax Attributes

This is not only a matter of understanding tax income and deduction items; it is a matter of handling the complex layers of limitations and exceptions that often surround valuable tax attributes. While an initial determination may be all-or-nothing, accounting for deferred taxes often involves a valuation allowance or other partial restriction. Determining when to make such valuation allowances, and making them judiciously, is an important part of TaxGroup’s service offering.

Some deferred tax items are considered temporary items, while others create permanent book-tax differences. The distinction between the two is not always intuitively obvious; complex rules govern the determination. We are conversant with those rules and prepared to assist clients in correctly reporting deferred tax items.