Understanding the Components of Tax Expense on the P&L

The True Nature of Tax Expense When you look at a company’s profit and loss (P&L) statement, the tax expense shown isn’t just the tax the company expects to pay on its current year’s tax returns. Instead, this tax expense, often referred to as the “tax provision,” is a combination of two key components: current […]

Understanding Amazon’s $5.2 Billion in Uncertain Tax Positions

The Certainties of Amazon Amazon is known for its speed of delivery, low prices, and vast selection of products. However, there is one area where uncertainty prevails: their tax positions. As of the end of 2023, Amazon reported $5.2 billion worth of uncertain tax positions. What Are Uncertain Tax Positions? Under ASC 740, companies must […]