Bloomberg Tax
Nov. 30, 2022, 9:38 PM

Companies Face Greater Tax Disclosure as Long-Awaited Plan Gels

Nicola M. White
Nicola M. White

After more than six years of debate and two proposals that went nowhere, US accounting rulemakers will issue a plan early next year calling on companies to give detailed breakdowns about the state, federal, and foreign income taxes they pay.

The proposal—slated for release release in the first quarter of 2023—is a response to long-running complaints from investors and analysts that existing lump sum financial statement income tax disclosures give zero insight into tax exposure. That’s particularly a problem for businesses with overseas operations. If a country or jurisdiction plans to raise tax rates where a company operates, that’s money ...