Tax Provision Services

Every business owner needs to know how much money their company has made every quarter and each year. But an important part of the profit formula is typically missing – how much the business owes in taxes. Since tax returns are not finalized until months after the end of the fiscal year, an accurate estimate of what the company’s final tax bill will be can serve as a “placeholder” when calculating predicted financial results. This estimate is called a tax provision.

Because a tax provision plays such an important role Peck Associates has developed a practice area devoted to the complex process of tax provision calculation. Our Boston area CPA firm ensures that our clients can see the full picture of their tax positions and how their decisions can impact those positions.

The provision for income taxes is the estimated amount that a business or individual taxpayer expects to pay in income taxes for the current year. Calculating the amount of the tax provision involves adjusting the reported net income of a business with a variety of permanent differences and temporary differences, then factoring in tax rates. It is important that the tax provision be as accurate as possible to comply with GAAP.

Our tax provision services include:

• Preparation, review, and support of annual tax provisions
• Income tax accounting for purchase accounting requirements of business combinations
• Uncertain Tax Positions (ASC 740-10)
• Assistance in drafting required footnote disclosures