In our Toolkit podcast series, we are taking a deep dive into one accounting topic each month that goes beyond the basics and into areas that require judgment. This month, we are covering income taxes–an area that generates numerous technical questions.

In this episode, Heather Horn was joined by Jenn Spang and Matt McCann, partners in PwC’s National Office, to discuss the specific fact patterns that often cause preparers to question which guidance to apply to their tax transaction.

In this episode, you will hear:

• 1:17 - An overview of the GAAP guidance and what counts as an “income tax”
• 5:03 - Specific considerations for partnerships and pass-through entities
• 9:38 - Withholding taxes from the perspectives of the entities paying and receiving a dividend
• 13:12 - Accounting for tax credits and other tax incentives
• 18:22 - Key facts that determine whether digital service taxes are in the scope of ASC 740
• 20:43 - Takeaways on how to effectively navigate the global tax landscape and establish appropriate monitoring

Want to learn more? Listen to the previous podcasts in our Tax toolkit in which we discuss how to work with uncertain tax positions, separate company financial statements, and divestitures. Also, refer to our chapter on Scope of ASC 740 in our Income taxes guide.

Jenn Spang is a partner in PwC’s National Office and serves as the income tax accounting leader, specializing in tax accounting under US GAAP and IFRS. She has over 25 years of experience helping companies in a variety of industries navigate complex tax accounting matters.

Matt McCann is a partner in PwC's National Office who provides consultation in the areas of revenue recognition and income taxes. He has over 25 years of experience and previously served as the leader of the Consumer & Industrial Products Sector Assurance Practice in North Texas.

Heather Horn is PwC’s National Office thought leader, responsible for developing our communications strategy and conveying firm positions on accounting and financial reporting matters. She is the engaging host of PwC’s accounting and reporting weekly podcast and quarterly webcast series. With over 30 years of experience, Heather’s accounting and auditing expertise includes financial instruments and rate-regulated accounting.

Transcripts available upon request for individuals who may need a disability-related accommodation. Please send requests to [email protected]. 

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