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Because most of these considerations apply to some assets or liabilities but not to others, the provision for income taxes should be computed separately for each asset and each liability It is not necessary, however, to disclose all these computations in the note For example, note 12 in Exhibit 412, which is reproduced from SOP 82 1, shows only the excess of estimated current values over the tax bases of major assets (c) TAX BASIS It is often dif cult to determine the tax basis of an asset or liability acquired long ago or by inheritance or trade In such a case, the preparer may use a conservative estimate of the tax basis in computing the provision for income taxes, with a note disclosing how the estimate was determined (d) DISCLAIMER SOP 82 1 requires a statement that the provision will probably differ from the amounts of income taxes that might eventually be paid because those amounts are determined by the timing and the method of disposal, realization, or liquidation and the tax laws and regulations in effect at the time of disposal, realization, or liquidation This statement should be made in the note (see Exhibit 412, note 12) (e) OMISSION OF DISCLOSURE In addition to omitting the deferred tax liability some practitioners will also not estimate the income tax liability for the provision for income taxes This departure from GAAP must be disclosed in the report In our experience many personal statements are prepared in connection with bank requirements for loans We have found that for most of those loans the banks are not concerned with the amount of estimated taxes on appreciation in value of assets What they are concerned with are the unpaid income tax obligations for the current and prior years and other short-term liquidity issues If not provided by the client, one technique to obtain the federal tax liability is to obtain a transcript of the individuals current and prior tax year records The transcripts are available if a power of attorney, Form 2848, has been led with the Internal Revenue Service. reduce pdf file size in c# how to optimize pdf using c# programming. - CodeProject
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