ASC 740 exists for the purpose of managing tax risk. Tax risk comes from both known and unknown uncertain tax positions. The Sarbanes-Oxley law (“SOX”) requires auditors to detect and quantify tax risks under ASC 740-10, developed from and often still referred to as FASB Interpretation 48 (“Fin 48”). It further requires taxpayers to maintain tax internal controls and procedures properly constructed to ensure tax compliance.

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TaxGroup is experienced in the tax aspects of SOX compliance. We routinely assist taxpayers in preparing tax materials required by SOX and prepare the detailed analysis required to comply with ASC 740-10 (or Fin 48). Moreover, because we are not auditors, we are uniquely positioned to assist clients in establishing “best practices” for tax SOX-compliant tax procedures. In addition to providing ASC 740-10/Fin 48 materials for audits, we consult with taxpayers to help them conduct their internal tax practices in a way that allows them to conduct SOX-mandated tax procedures efficiently and successfully.

We are experienced in tax reporting for uncertain tax positions, including determining when an uncertain tax position actually exists, determining the amount of exposure, and preparing federal Schedule UTP when necessary.