Learn best practices for establishing reserves to account for uncertain sales or use tax positions.
The requirements under Accounting Standards Codification (ASC) 450 regarding establishing reserves for uncertain sales and use tax positions have been under the microscope. Companies and Tax professionals must be ready for scrutinized enforcement by applying sensible strategies and best practices.
ASC 450 mandates an accrual for uncertain losses, a disclosure of important changes in estimates, and provides a cautionary disclosure for potential losses. Due to our evolving economic landscape, there is mounting pressure on companies to properly manage their sales and use tax compliance responsibilities while managing any impact on its business financials.
Our panel of sales tax advisers will share their insights, observations, and best practices for establishing reserves to account for uncertain sales or use tax positions in a prudent manner.
Learning Objectives
- You will be able to define ASC 450.
- You will be able to discuss how to establish a sales and use tax reserve under ASC 450.
- You will be able to identify practical applications for ASC 450.
- You will be able to recognize additional indirect tax considerations.
Agenda
Summary of ASC 450
Identifying Sales and Use Tax Exposure
Establishing and Measuring a Sales Tax Reserve Under ASC 450
- Tax Planning for Occurrences That Could Impair Assets or Increase Liabilities
- Recognizing a Loss Contingency and Other Audit Detections
Practical Applications of ASC 450
Mitigating Sales and Use Tax Loss Contingencies
Additional Indirect Tax Considerations
- Business Property Tax
- Unclaimed/Escheat Property
- Miscellaneous
Q&A
Speakers
Courtney Easterday, MS,
Withum Smith+Brown, PC- Senior Manager at Withum Smith+Brown, PC
- SALT consultant with over five years of state and local sales/use tax specialization, plus two years of private tax accounting in the utility industry and eight years of bookkeeping and accounting experience in various private industries
- Expertise in State and Local Tax Practice areas including state and local sales and use tax taxation and other excise taxes
- In-depth experience in nexus planning, taxability research, audit defense, voluntary disclosure requests, sales/use tax registration, compliance, and sales tax code implementation across all US states and local jurisdictions
- Experienced in management of implementation of Vertex indirect tax and Avalara sales and use tax solutions and leads continued sales/use tax compliance calendar maintenance of Avalara and Vertex systems
- Assists with preparation and filing of Canadian GST/HST, QST, and PST tax returns
- M.S. degree and B.S degree in accounting, New Jersey City University
James Bartek, CPA,
Withum Smith+Brown, PC- Partner, Market Leader, State and Local Tax at Withum Smith+Brown, PC
- Over 25 years of professional experience in advising clients in the areas of ASC 450 (fka FAS 5), reverse sales and use tax audits, audit defense and appeal, sales tax systems automation, negotiation of voluntary compliance agreements, transaction analysis, Sarbanes/Oxley requirements, Streamlined Sales Tax Agreement and sales/use/excise tax compliance services
- Assists numerous clients with complex indirect tax issues in industries including pharmaceutical, technology, retail, financial services, utilities, hospitality, entertainment, defense contractors, telecommunications, and manufacturing.
- Licensed Certified Public Accountant in the states of New York and New Jersey
- B.S. degree, in accounting, Montclair State University
Bonnie Susmano, JD, MBA,
Withum Smith+Brown, PC- Senior State and Local Tax Manager at Withum Smith+Brown, PC
- Over fifteen years of professional experience in advising clients concerning various sales and use tax matters, including nexus reviews, process planning, exposure quantification analysis, ASC 450 reserve analysis, voluntary disclosure agreements, due diligence, technical advisory opinions, ruling requests, audit mitigation, reverse audits, compliance reviews, and outsourcing
- Manage clients’ complex state and local tax issues in various industries, including cryptocurrency, healthcare, technology, retail, financial services, utilities, hospitality, entertainment, real estate, telecommunications, theater, construction, and manufacturing
- Member of the American Bar Association
- J.D. degree, Case Western Reserve University School of Law; M.B.A degree, Weather School of Management
Who Should Attend
This live webinar is designed for Accountants, CFOs, controllers, accounts payable professionals, tax managers, presidents, vice presidents, bookkeepers, and enrolled agents.
