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What qualifies as an income tax under US GAAP? 5 things to know

10/08/19

Tune in as we help navigate tax foundations with a refresher on what’s in scope of ASC 740―we have 5 things you need to know.

Accounting for income taxes impacts almost all companies and can be complex. In order to get the accounting right, it’s important to understand what’s in the scope of the income tax guidance. Help is on the way as Jennifer Spang and Kassie Bauman join Heather Horn walk you through the principles involved. Topics include:

2:04 - Definition of income taxes. We start with an important first step: knowing what qualifies as an income tax.

3:46 - Withholding taxes. Withholding taxes are common. Kassie helps us understand how to determine whether withholding taxes are within the scope of ASC 740 and the different models to follow.

6:44 - Tax credits and other benefits. Jenn explains how it's not always clear if credits and incentives are in the scope of the income tax guidance. It can take some detective work to get to the right answer.

10:22 - Partnerships and other non-taxable entities. Legal form alone isn’t always determinative. We discuss what else to consider when figuring out if you need to apply income tax accounting.

14:11 - The evolving tax landscape. Jenn provides some final reminders.

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About our guests

Jennifer Spang is a tax partner in PwC's National Office who consults on tax accounting under US GAAP and IFRS.

Kassie Bauman is a managing director in PwC's National Office who consults on tax accounting under US GAAP and IFRS.

About our host

Heather Horn is PwC’s National office thought leader, responsible for developing our communications strategy and conveying firm positions on accounting and financial reporting matters. She is the engaging host of PwC’s accounting and reporting weekly podcast and quarterly webcast series, as well as periodic webcasts for the power and utilities industry. With over 25 years of experience, Heather’s accounting and auditing expertise includes financial instruments and rate-regulated accounting.