I have a new client who has a 754 election on his books. The books are kept on the tax basis, and is asking for us to prepare a compilation on his company. His books all match his tax returns. The question I have is if I am preparing a compilation on the Tax Basis with no disclosures, is there any other special verbiage that needs to be added to the accountant's reports beside stating the financials were prepared on the Tax Basis. How does the end user know that a step-up basis has been taken.