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 […]

The Potential Impact of Lowering the Corporate Tax Rate to 20%

Recently, former President Trump floated the idea of lowering the corporate tax rate from 21% to 20%. For those involved in tax provisions, this brings back vivid memories of the Tax Cuts and Jobs Act (TCJA) of 2017, which dramatically slashed the corporate tax rate from 35% to 21%. The announcement of the TCJA led […]

Exploring Apple’s Effective Tax Rate: A Deep Dive into ASC 740

Insights from ASC 740 Apple’s effective tax rate (ETR) in 2023 was 14.7%. Given that the US corporate tax rate is 21%, and adding in state tax rates pushes the overall US statutory rate to around 27%+, it’s fascinating to see how Apple achieved an ETR that’s almost half the statutory rate. The answer lies […]