Financial Institutions Tax Services Frequently Asked Questions
What tax compliance obligations may sit outside a financial institution’s income tax returns?
The compliance scope may also include real and personal property tax reports, tangible and intangible property tax reports, sales tax returns, employee benefit plan tax returns, and state or local registrations and applications. Representation may also be needed when the IRS or a state tax authority examines a filing.
Which tax analyses may be useful when a financial institution changes its operating structure?
Relevant planning areas may include income tax nexus analysis, sales and use tax exposure analysis, entity choice modeling, financial risk assessment, and employee benefit modeling. These areas can be considered together when operational changes affect the institution’s compliance, structure, or reporting needs.
What tax work may be relevant before a merger, acquisition, or other transaction?
The service scope may include transaction analysis and planning, merger and acquisition analysis, entity choice modeling, financial risk assessment, and accounting for income taxes under ASC 740. The appropriate combination depends on the proposed transaction and the institution’s tax compliance and reporting needs.
How can tax planning support financial statement reporting?
Financial institution tax services can include accounting for income taxes under ASC 740, financial risk assessments, and transaction-related tax planning. These areas connect tax analysis with financial reporting and broader business decisions.
When may tax examination support be part of the engagement?
Tax examination support may be relevant when the IRS or a state authority reviews a financial institution’s filings. The service scope includes representation for IRS and state examinations, together with the related compliance work and supporting information under review.
