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Intuit Assesses the Impact of Corporate Tax Reform

Congress recently passed the largest piece of tax reform legislation in more than three decades. Intuit is reviewing the latest corporate tax reform legislation, working through the impact to the company financials in fiscal 2018 and beyond. A number of factors determine the impact of the new tax laws to the GAAP and long-term structural

Written by Intuit Blog Team
Published Jan 22, 2018 - [Updated Nov 9, 2022]
1 min read

A number of factors determine the impact of the new tax laws to the GAAP and long-term structural non-GAAP tax rates. Because Intuit’s fiscal 2018 year started in August 2017, it will be subject to IRS rules relating to transitional tax rates in fiscal 2018. That means if the tax rate changes during a taxable year, the tax rate for the full year is calculated using the prior and new tax rates on a proportional basis using the number of days under each tax rate.

“Tax reform results in fewer corporate deductions. As a result, beyond the transitional year in fiscal 2018 we expect our GAAP and long-term structural non-GAAP rate could be closer to or higher than the new statutory rate,” said Neil Williams, Intuit’s executive vice president and chief financial officer.

Intuit plans to incorporate the impact of the new tax rates to guidance when the company reports fiscal second-quarter earnings in February.

For taxpayers curious about how the laws may impact them when it comes time to file, TurboTax is up to date and able to answer any questions you may have with live experts, on-demand. For more information, check out the TurboTax Reform Hub.