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Deferred Income Taxes And The Tax Cuts And Jobs Act

The Tax Cuts and Jobs Act (TCJA) is hot off the presses and contains many provisions which will impact taxpayers in 2018. In addition, the change in corporate tax rates could also impact many regular (or “C”) corporations immediately.

Regular corporations recognize deferred tax assets and liabilities related to temporary differences between book and tax income. These deferred tax assets and liabilities are calculated using an effective tax rate at which these temporary differences are expected to reverse. The TCJA may cause a significant adjustment to deferred tax assets and liabilities resulting in an unexpected impact on 2017 earnings for regular corporations.

A recent Forbes’ article estimated that S&P 100 companies could see as much as a $120 billion net positive earnings’ impact from this change. This impact reflects companies with a positive impact of $200 billion, offset by companies with a negative impact of $80 billion.

Put simply, regular corporations with a net deferred tax asset could expect to see a charge against earnings based on the TCJA, and those with a net deferred tax liability could expect to see a benefit to earnings. Regular corporations should consult with their applicable Blue & Co. tax advisor for more information on this impact.

 

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indiana sales tax

New Indiana Sales Tax Rule for Not-For-Profits – Sales Tax Collection & Filing Threshold Increased

By Cory Schunemann, CPA, Manager at Blue & Co. Indiana’s 2023 Senate Enrolled Act (SEA) 417 made another change to the sales tax collection requirements for not-for-profits after 2022’s SEA 382. Not-for-profits with taxable retail sales in excess of $100,000 in the current or prior year are now required to collect and remit sales tax. […]

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Clipboard with paper that reads Employee Retention Credit | IRS Orders Immediate Stop to New Employee Retention Credit Processing – What You Need to Know | What You Need to Know About ERC

IRS Orders Immediate Stop to New Employee Retention Credit Processing – What You Need to Know

By Amy Sandlin, CPA, Tax Senior Manager at Blue & Co. On Thursday, Sept. 14, the IRS announced a moratorium on processing of new Employee Retention Credit (“ERC”) claims through at least December 31, 2023. This decision is in response to a flood of questionable claims and trusted tax advisors expressing a slew of concerns […]

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Changes to Medicare Bad Debt and S-10 Template Effective this Month

The new Medicare Bad Debt template (Exhibit 2A) and S-10 template (Exhibit 3B and 3C) have been finalized by Medicare and are now required for cost reporting periods ending on or after September 30, 2023. This deadline is quickly approaching, and Blue & Co. wants to be sure you are prepared. If you are feeling […]

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