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Replace Required Fields into the Tax Sharing Agreement

Replace Required Fields into the Tax Sharing Agreement and eSign it in minutes

Aug 6th, 2022

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Got questions?

Below are some common questions from our customers that may provide you with the answer you're looking for. If you can't find an answer to your question, please don't hesitate to reach out to us.

When should a change in tax law be accounted for?

However, the guidance is clear that the entire effect of a change in tax rate or tax law should be reflected in the period of enactment, regardless of whether the financial statements for a prior period have been issued.

Why do I need a tax sharing agreement?

A tax sharing agreement (TSA) is a contract created to clarify the economic expectations among members of a related group of corporations included in consolidated or combined reporting tax returns.

What is the purpose of ASC 740?

ASC 740, Income Taxes, provides recognition, initial measurement, subsequent measurement, presentation and disclosure guidance for income taxes in the financial statements. Its primary objective is to show the after-tax financial position of a company in its balance sheet.

What is the role of ASC 740-10?

740-10 Overall ASC 740-10 notes the following: This Subtopic provides guidance for recognizing and measuring tax positions taken or expected to be taken in a tax return that directly or indirectly affect amounts reported in financial statements.

What is a tax sharing agreement?

A tax sharing agreement is an instrument enabling a parent company with subsidiaries to file a consolidated tax return that satisfies the tax liability of all entities together.

What is ASC 740 10 25 33?

As required by ASC 740-10-25-33, when a taxable entity switches to nontaxable status, the change in status should be recognized on the approval date if approval is necessary. If approval is not necessary, the change in status should generally be recognized at the filing date.

What is ASC 740 disclosure requirements?

ASC 740-10-50-10 requires all entities to disclose the amount of income tax expense (or benefit) allocated to continuing operations and the amounts separately allocated to other items (for example, discontinued operations or other comprehensive income (loss)) each year for which those items are presented.

What is the ASC 740 tax position?

ASC 740 defines the term tax position. A position in a previously filed tax return or a position expected to be taken in a future tax return that is reflected in measuring current or deferred income tax assets and liabilities for interim or annual periods.

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