Tax Credits - IRC Sec. 41
Tax Basis Balance Sheets are used to provide assurance to businesses that all of their book/tax differences have been identified and properly recorded. The starting point for the tax basis balance sheet is the book balance sheet. Each book balance sheet account must be analyzed and adjusted for potential book tax differences to come up with a final tax balance sheet.
The tax basis balance sheet serves as proof that the basis differences are accurate. This assurance provides business comfort that their tax accounts and accompanying financial statements are correct. Many times this analysis uncovers areas where a book tax difference should be in place and is not. It can provide a planning and tax savings opportunity for some businesses.
Because implementation is challenging, many businesses do not have a good tax basis balance sheet on file. ZHF professionals have the knowledge and experience to assist you in setting up and/or maintaining an accurate tax basis balance sheet.