Hi, Website Visitor. Here are your Articles for April 25, 2007.
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Rea & Associates, Inc. Announcements
What Happens When You Cross a Financial Statement with a Tax Return
All companies are required to file income tax returns, but not all companies are required to issue financial statements to third parties such as banks, investors or bonding companies. If your company issues financial statements to a third party, you may be interested in Financial Accounting Standards Board (FASB) Interpretation 48, Accounting for Uncertainty in Income Taxes (or FIN 48 for short).
Over the course of my 30 years in practice, I've been asked this question a number of times, since I represent many dental practices. Certainly the best way to determine this is to have a full-blown business valuation done to set a value for purposes of sale of the practice or, in those unfortunate cases, for valuation at the time of a divorce, death or other equally tragic situations.
We take great care in the preparation of our articles and announcements. We also have a process of reviewing articles when major changes take place. The business, legal and tax climate is constantly changing especially when reviewed on an industry basis.
It may be very important to consult with us or your Investment Advisor before implementing ideas contained in articles and announcements. Many ideas have complexities and nuances that cannot be adequately detailed in the articles or announcements. We are not responsible for errors, misinterpretations or omissions related to these articles or announcements. Nor are we responsible for the applicability to your personal, business or tax situation.
Pursuant to Circular 230 promulgated by the Internal Revenue Service, if this email, or any attachment hereto, contains advice concerning any federal tax issue or submission, please be advised that it is not intended or written to be used, and that it cannot be used, for the purpose of avoiding federal tax penalties unless otherwise expressly indicated.
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