NATIONAL INSURANCE SERVICES PRACTICE
INSURANCE TAX SERVICES
experience ideas // Insurance companies face a variety of issues when it comes to maintaining
surplus while adding value for shareholders and policyholders. You need professional services providers
who can offer quality, personalized service. BKD can help. Our advisors can help you effectively plan for
and comply with complex insurance tax laws and regulations, evaluate and monitor internal controls and
develop and implement technology solutions. Experience how our ideas can help you create value.
TAX PROVISION SUPPORT SERVICES
• Evaluating and documenting management’s assessment of
UTPs and VAs under GAAP and SAP guidance
BKD assists companies in calculating, documenting and
disclosing their tax provisions under generally accepted
accounting principles (GAAP) and statutory accounting
principles (SAP). Our advisors can work closely with
management to identify key inputs and develop solutions
to streamline the tax provision process. Companies want
a methodology that requires as few human touches as
possible to manage the risk of misstatement and allows
for real-time adjustments to tax accounts as underlying
financial statement values change. Areas involving judgment, such as assessment of uncertain tax positions (UTP)
and valuation allowances (VA), require special attention and
robust documentation.
• Evaluating and documenting tax planning strategies used
for GAAP and SAP and reversal pattern assumptions for SAP
deferred tax asset admissibility
We can help manage timing and quality of information
flowing between management and outside auditors. Our
seasoned tax professionals can provide insight and assistance in the following:
• Testing that the tax provision reflects the most up-to-date
trial balance information and that permanent items are identified and considered in light of relevant insurance tax law
• Reconciling tax-related balance sheet accounts rather than
rolling forward prior-year balances
• Assisting with proper allocation of changes in tax balance
sheet accounts to the income statement (capital gains/losses
and operations) and surplus or other comprehensive income
• Reviewing and analyzing effective tax rates and other
metrics to identify potential issues
• Assisting with footnote disclosures, including UTPs, VAs and
tax-planning strategies
TAX PREPARATION & REVIEW
By efficiently using technology to help prepare and review
GAAP and SAP financial statements, BKD can spend more
time working to identify potential tax issues and opportunities. Our insurance tax team can:
• Act as Electronic Return Originator (ERO) and facilitate the
electronic filing process where allowable. Currently, companies that file a federal consolidated or standalone Form
1120-L (for life insurance companies) or 1120-PC (for nonlife
insurance companies) cannot file electronically. We continue
to monitor tax developments for compliance with e-filing
requirements.
We also remain current on state electronic filing requirements so you don’t have to. More and more states have
electronic filing requirements, and staying current with
these requirements can be burdensome on insurers. BKD
prepares thousands of state income tax returns for insurers
and noninsurance group members.
220 INSURANCE COMPANIES
Experience a clear point of view from a firm that works with approximately 220 insurance and insurance services companies and has professionals
trained in the industry.
bkd.com
INSURANCE TAX SERVICES
Our tax professionals also can assist with:
• Help manage exposure and provide peace of
mind that necessary forms and disclosures have
been filed. Tax return disclosure requirements
can be confusing and create significant penalty
exposure, but BKD can help. For instance, UTPs
and reportable transactions generally require the
inclusion of additional forms or statements with
the tax return filing. The recently adopted Form
M-3, which reconciles financial statement and
taxable income, is relatively simple to complete
on a separate company basis but increases in
complexity in a consolidated group setting.
• Due diligence and deal structuring stemming
from anticipated mergers and acquisitions
• State tax planning, including state income, excise
and premium taxes
WHY BKD?
BKD National Insurance Services Practice provides
services to life, accident, health and property and
casualty insurance companies ranging in size from
$5 million to $3 billion in written premiums.
A.M. Best ranks BKD as the seventh-largest
assurance provider for insurance companies. We
also work with numerous insurance agencies and
third-party administrators throughout the U.S.
Our insurance team includes tax professionals
dedicated to the industry who are members of
the Insurance Accounting & Systems Association
(IASA) and speak at IASA’s annual conference.
• Analyze the advantages and disadvantages of tax
return elections, such as the election by property
and casualty companies to discount loss reserves
based upon their own claims payment history.
• Assist in preparing the return-to-provision adjustments so balance sheet accounts (current and
deferred) can be trued up and any effect on the
subsequent year’s effective tax rate is anticipated.
TAX PLANNING
With a partner-to-staff ratio lower than the average for national firms, you’ll have access to partners and
experience personal communication.
BKD THOUGHTWARE®
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Thomas Wheeland // Partner
twheeland@bkd.com // 314.231.5544
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BKD’s unmatched client service is provided by
approximately 2,400 CPAs, advisors and dedicated staff serving clients in all 50 states and internationally. Beyond our knowledgeable solutions,
BKD clients experience expertise, insight, ideas
and attention to help them achieve their financial
goals. Our professionals offer practical advice,
ethical solutions and results with integrity.
offices and subsidiaries, visit bkd.com or contact:
Our advisors understand GAAP and SAP
accounting issues and can help identify tax planning strategies and actions along with their financial reporting and regulatory consequences. We
look for structuring opportunities and available
credits to potentially help reduce cash taxes.
FOR MORE INFORMATION // For a complete list of our
BKD, LLP is a national CPA and advisory firm delivering its experience and service with a deep understanding of your business, your needs and what it
takes to improve your business performance.
bkd.com
© 2016 BKD, LLP 1/16