MALL » Topics » 6. Income Taxes

This excerpt taken from the MALL 10-Q filed May 11, 2009.

6. Income Taxes

 

Accounting for Uncertainty in Income Taxes

 

We adopted FIN 48, “Accounting for Uncertainty in Income Taxes — An Interpretation of FASB Statement No. 109” (“FIN 48”) on January 1, 2007. FIN 48 clarifies the accounting for uncertainty in tax positions by prescribing the recognition threshold a tax position is required to meet before being recognized in the financial statements. It also provides guidance on derecognition, classification, interest and penalties, accounting in interim periods, disclosure, and transition. We had no unrecognized tax benefits and no accrued interest or penalties recognized as of the date of our adoption of FIN 48. During the three months ended March 31, 2009, there were no changes in our unrecognized tax benefits, and we had no accrued interest or penalties as of March 31, 2009.

 

We are subject to U.S. and foreign income tax examinations for years subsequent to 2004, and state income tax examinations for years following 2003. In addition, certain federal and state net operating loss carryforwards generated after 1998 and 1996, respectively, and used in a subsequent year, may still be adjusted by a taxing authority upon examination.

 

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These excerpts taken from the MALL 10-K filed Mar 16, 2009.

Income Taxes

 

We account for income taxes under the liability method as prescribed in accordance with SFAS No. 109, “Accounting for Income Taxes.” Under this method, deferred tax assets and liabilities are recognized by applying enacted statutory tax rates applicable to future years to differences between the tax basis and financial reporting amounts of existing assets and liabilities. We make certain estimates and judgments in determining income tax provisions and benefits, in assessing the likelihood of recovering our deferred tax assets and in evaluating our tax positions. A valuation allowance is provided when it is more likely than not that all or some portion of deferred tax assets will not be realized. See Note 8 for more detailed information.

 

We account for uncertainty in income taxes recognized in financial statements in accordance with FIN 48, “Accounting for Uncertainty in Income Taxes — An Interpretation of FASB Statement No. 109,” which we adopted on January 1, 2007. FIN 48 prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. FIN 48 also provides guidance on derecognition, classification, interest and penalties, accounting in interim periods, disclosure, and transition. Only tax positions that meet the more-likely-than-not recognition threshold may be recognized. Under FIN 48, we recognize penalties and interest accrued related to unrecognized tax benefits, if any, as part of “Income tax expense (benefit)” in our Consolidated Statements of Operations.

 

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Income Taxes



 



We account for income taxes
under the liability method as prescribed in accordance with SFAS No. 109, “Accounting
for Income Taxes.” Under this method, deferred tax assets and liabilities are
recognized by applying enacted statutory tax rates applicable to future years
to differences between the tax basis and financial reporting amounts of
existing assets and liabilities. We make certain estimates and judgments in
determining income tax provisions and benefits, in assessing the likelihood of
recovering our deferred tax assets and in evaluating our tax positions. A
valuation allowance is provided when it is more likely than not that all or
some portion of deferred tax assets will not be realized. See Note 8 for more
detailed information.



 



We account for uncertainty
in income taxes recognized in financial statements in accordance with FIN 48, “Accounting
for Uncertainty in Income Taxes — An Interpretation of FASB Statement No. 109,”
which we adopted on January 1, 2007. FIN 48 prescribes a recognition
threshold and measurement attribute for the financial statement recognition and
measurement of a tax position taken or expected to be taken in a tax return.
FIN 48 also provides guidance on derecognition, classification, interest and
penalties, accounting in interim periods, disclosure, and transition. Only tax
positions that meet the more-likely-than-not recognition threshold may be
recognized. Under FIN 48, we recognize penalties and interest accrued related
to unrecognized tax benefits, if any, as part of “Income tax expense (benefit)”
in our Consolidated Statements of Operations.



 



67
















 



Income Taxes



 



We account for income taxes
under the liability method as prescribed in accordance with SFAS No. 109, “Accounting
for Income Taxes.” Under this method, deferred tax assets and liabilities are
recognized by applying enacted statutory tax rates applicable to future years
to differences between the tax basis and financial reporting amounts of
existing assets and liabilities. We make certain estimates and judgments in
determining income tax provisions and benefits, in assessing the likelihood of
recovering our deferred tax assets and in evaluating our tax positions. A
valuation allowance is provided when it is more likely than not that all or
some portion of deferred tax assets will not be realized. See Note 8 for more
detailed information.



 



We account for uncertainty
in income taxes recognized in financial statements in accordance with FIN 48, “Accounting
for Uncertainty in Income Taxes — An Interpretation of FASB Statement No. 109,”
which we adopted on January 1, 2007. FIN 48 prescribes a recognition
threshold and measurement attribute for the financial statement recognition and
measurement of a tax position taken or expected to be taken in a tax return.
FIN 48 also provides guidance on derecognition, classification, interest and
penalties, accounting in interim periods, disclosure, and transition. Only tax
positions that meet the more-likely-than-not recognition threshold may be
recognized. Under FIN 48, we recognize penalties and interest accrued related
to unrecognized tax benefits, if any, as part of “Income tax expense (benefit)”
in our Consolidated Statements of Operations.



 



67
















 



This excerpt taken from the MALL 10-Q filed Nov 10, 2008.

6. Income Taxes

 

Accounting for Uncertainty in Income Taxes

 

We adopted FIN 48, “Accounting for Uncertainty in Income Taxes — An Interpretation of FASB Statement No. 109” on January 1, 2007. We had no unrecognized tax benefits and no accrued interest or penalties recognized as of the date of our adoption of FIN 48. During the nine months ended September 30, 2008, there were no changes in our unrecognized tax benefits, and we had no accrued interest or penalties as of September 30, 2008.

 

We are subject to U.S. and foreign income tax examinations for years subsequent to 2003, and state income tax examinations for years following 2002. In addition, certain federal and state net operating loss carryforwards generated after 1997 and 1996, respectively, and used in a subsequent year, may still be adjusted by a taxing authority upon examination.

 

This excerpt taken from the MALL 10-Q filed Aug 5, 2008.

6. Income Taxes

 

Accounting for Uncertainty in Income Taxes

 

We adopted FIN 48, “Accounting for Uncertainty in Income Taxes — An Interpretation of FASB Statement No. 109” on January 1, 2007. We had no unrecognized tax benefits and no accrued interest or penalties recognized as of the date of our adoption of FIN 48. During the six months ended June 30, 2008, there were no changes in our unrecognized tax benefits, and we had no accrued interest or penalties as of June 30, 2008.

 

We are subject to U.S. and foreign income tax examinations for years subsequent to 2003, and state income tax examinations for years following 2002. In addition, certain federal and state net operating loss carryforwards generated after 1997 and 1996, respectively, and used in a subsequent year, may still be adjusted by a taxing authority upon examination.

 

This excerpt taken from the MALL 10-Q filed May 12, 2008.

6. Income Taxes

 

Accounting for Uncertainty in Income Taxes

 

We adopted FIN 48, “Accounting for Uncertainty in Income Taxes — An Interpretation of FASB Statement No. 109” on January 1, 2007. We had no unrecognized tax benefits and no accrued interest or penalties recognized as of the date of our adoption of FIN 48. During the three months ended March 31, 2008, there were no changes in our unrecognized tax benefits, and we had no accrued interest or penalties as of March 31, 2008.

 

We are subject to U.S. and foreign income tax examinations for years subsequent to 2003, and state income tax examinations for years following 2002. In addition, certain federal and state net operating loss carryforwards generated after 1997 and 1996, respectively, and used in a subsequent year, may still be adjusted by a taxing authority upon examination.

 

10


 

These excerpts taken from the MALL 8-K filed Nov 29, 2007.
Income Taxes - A current tax liability or asset is recognized for the estimated taxes payable or refundable on tax returns for the year. Deferred taxes are provided for temporary differences arising from assets and liabilities whose basis is different for financial reporting and income tax purposes.

 

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Note 12 - Income Taxes

 

The Company accounts for deferred income taxes in accordance with Statement of Financial Accounting Standards No. 109 (SFAS 109), Accounting for Income Taxes. This standard requires that deferred taxes be provided for the temporary differences between the financial reporting and the income tax basis of the Company’s assets and liabilities by applying enacted statutory rates applicable to future years to the basis differences.

 

The primary reasons for the difference between the federal statutory income tax rate and the Company’s effective income tax rate is the treatment of the yield on mandatorily redeemable preferred stock as a nondeductible expense for income tax purposes and the change in the valuation allowance recognized for deferred tax assets during 2006 and 2005.

 

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SARCOM, Inc.

Notes to Financial Statements

December 31, 2006 and 2005
(000s omitted, except share and per share amounts)

 

Deferred income taxes arise from timing differences resulting from income and expense items reported for financial accounting and tax purposes in different periods. Differences for which deferred taxes are provided relate primarily to tax basis goodwill amortization, the use of accelerated depreciation methods of property and equipment for income tax purposes, and net operating loss carryforwards of approximately $14,000, which begin expiring in 2023.

 

Deferred tax assets at December 31, 2006 and 2005 total approximately $9,000 and $9,500, respectively, and deferred tax liabilities totaled approximately $1,000 in each year. A valuation allowance has been recognized for the amount of the net deferred tax assets at December 31, 2006 and 2005 due to the uncertain nature of their ultimate realization based upon the Company’s historical operating losses.

 

This excerpt taken from the MALL 10-Q filed Nov 14, 2007.

6. Income Taxes

 

We adopted FIN 48 on January 1, 2007. As of the adoption date, we had no material unrecognized tax benefits. We do not believe that the total amounts of unrecognized tax benefits will significantly increase or decrease within 12 months of September 30, 2007. We recognize penalties and interest accrued related to unrecognized tax benefits, if any, as part of income tax expense in our Consolidated Statements of Operations. As of January 1, 2007, we had no amounts accrued for income tax-related interest or income tax-related penalties on our Consolidated Balance Sheets.

 

We conduct business through one or more of our subsidiaries in the U.S., Canada and the Philippines. We or one of our subsidiaries file income tax returns in the U.S. federal jurisdiction, and various state and foreign jurisdictions. Because we utilized or have available U.S. federal and state net operating loss carryforwards generated in certain jurisdictions for the years of 1997 through 2001, such jurisdictions for the respective tax years remain subject to examination by tax authorities. Except for the respective jurisdictions for the years indicated above, we are generally no longer subject to U.S. federal, state and local, or non-U.S. income tax examinations by tax authorities for years before 2002. All tax returns for the 2006 fiscal year have been filed.

 

This excerpt taken from the MALL 10-K filed Mar 12, 2007.

Income Taxes

We account for income taxes under the liability method as prescribed in accordance with SFAS No. 109, “Accounting for Income Taxes.” Under this method, deferred tax assets and liabilities are recognized by applying enacted statutory tax rates applicable to future years to differences between the tax basis and financial reporting amounts of existing assets and liabilities. We make certain estimates and judgments in determining income tax provisions and benefits, in assessing the likelihood of recovering our deferred tax assets and in evaluating our tax positions. A valuation allowance is provided when it is more likely than not that all or some portion of deferred tax assets will not be realized. See Note 9 for more detailed information.

This excerpt taken from the MALL 10-K filed Mar 31, 2006.

Income Taxes

We account for income taxes under the liability method as prescribed in accordance with SFAS No. 109, “Accounting for Income Taxes.” Under this method, deferred tax assets and liabilities are recognized by applying enacted statutory tax rates applicable to future years to differences between the tax basis and financial reporting amounts of existing assets and liabilities. We make certain estimates and judgments in determining income tax provisions and benefits, in assessing the likelihood of recovering our deferred tax assets and in evaluating our tax

 

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positions. A valuation allowance is provided when it is more likely than not that all or some portion of deferred tax assets will not be realized. See Note 6 for more detailed information.

These excerpts taken from the MALL 10-K filed Mar 31, 2005.

Income Taxes

 

The Company accounts for income taxes under the liability method. Under this method, deferred income taxes are recognized by applying enacted statutory tax rates applicable to future years to differences between the tax bases and financial reporting amounts of existing assets and liabilities. A valuation allowance is provided when it is more likely than not that all or some portion of deferred tax assets will not be realized. See Note 4 for more detailed information.

 

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Index to Financial Statements

Income Taxes

 

The Parent files a consolidated federal income tax return and a combined state income tax return that include the operating results of the Company. The income tax provision for the Company is computed as if a separate company tax return were being filed. The Company accounts for income taxes under the liability method. Under this method, deferred income taxes are recognized by applying enacted statutory tax rates applicable to future years to differences between the tax bases and financial reporting amounts of existing assets and liabilities. A valuation allowance is provided when it is more likely than not that all or some portion of deferred tax assets will not be realized.

 

F-9


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