Expertise Beyond the Numbers

Unique Audit and Tax Services for Investment Companies (Podcast)

In this podcast, you can gain insights from Paul Shifrin, a Director with SC&H Group, about how investment companies can best leverage unique audit and tax services. To learn more about the firm’s Audit & Tax Advisory Services, click here.

Since investment companies operate much differently than traditional brick-and-mortar and service companies, they face a unique set of challenges when it comes to audit and tax requirements.

From an audit perspective, there are requirements from the U.S. Securities and Exchange Commission (SEC) that have to be met annually. In addition, the governing documents for many investment companies require an audit to give comfort that the returns on the funds and financial statements are accurate, and to minimize the chances for fraud.

In terms of taxes for funds, there are a number of complex challenges at play. These include issues related to mark to market (MTM) elections, 988(a)(1)(B) elections, QEF and PFIC issues and other topics such as foreign account reporting, foreign partner reporting/withholding and more. There are also tax implications with regards to reporting capital gains versus ordinary income and the timing and character of reporting gains, losses, various items of income and deduction. All of these complexities can create increased tax exposure, and higher tax payments, if not handled by experienced audit and tax experts.

If you have any questions about this content, or are interested in learning more about SC&H Group’s services in this area, we welcome you to contact Paul here.