FAS 109/FIN 48 Software Selection

RSM McGladrey, Inc is pleased to announce its selection of TaxStream tax provision and planning software as its tool of choice for implementing FAS 109/FIN48 tax services.

Following an intensive evaluation period, TaxStream software was selected due to its outstanding performance in the areas of technical accuracy, ease of implementation, flexibility and overall experience in the marketplace.

TaxStream Professional is a web-based application that computes and stores everything needed to complete a tax provision. The system provides a single point of data entry that can be accessed by all users via the Internet.  TaxStream Professional includes complete federal, state and foreign tax calculations, self-reconciling reports, dynamic review screens, and a provision wizard designed to assist users in the collection of data from foreign and remote locations. Sub-consolidations allow users to run reports in any number of combinations. Work flow controls and audit trails help to satisfy the requirements of Sarbanes-Oxley.

Many clients are telling us that the recent release of FASB Interpretation No. 48 (FIN 48), Accounting for Uncertainty in Income Taxes — an Interpretation of FASB Statement No. 109 (SFAS 109), is the single most pressing concern for their tax function this year. Our conversations have focused on the impact of FIN 48 and how it will change how companies accounting for tax exposures.

FIN 48 is effective for fiscal years beginning after Dec. 15 2006, with an adjustment required to the beginning balance of retained earnings. In setting this effective date, FASB decided that a period of five months would be sufficient to apply the new rules.  TaxStream’s FIN 48 solution addresses this difficult challenge by handling the identification, recognition and measurement of uncertain tax positions in a separate FIN 48 module and then integrating the relevant data into the existing FAS 109 module. At the same time, the rollforward of the deferred accounts support the temporary differences established for uncertain tax positions in deferred tax balances.  TaxStream will soon be releasing Version 2 of their FIN 48 module and a team of RSM McGladrey FAS 109/FIN 48 specialists have worked closely with TaxStream providing technical advice for the software enhancements.