FIN 48: Accounting for Uncertainty in Income Taxes – an Interpretation of FASB Statement 109
With the launch of FASB’s Accounting Standards Codification, FIN 48 is now referred to as Accounting Standard Codification Topic 740. The objective of FASB’s Income Tax project is to improve the accounting for income taxes, while reducing the existing differences between the Accounting Standards Codification Topic 740 on income taxes (FASB Statement No. 109, Accounting for Income Taxes), and IAS 12, Income Taxes.
Background on FIN 48 | Online Resources
Latest News
Uncertain tax positions reporting proposal extended to June 1
The IRS has extended the comment period for the controversial uncertain tax positions reporting proposal to June 1 to allow taxpayers and practitioners time to provide more comprehensive feedback on the proposal, the implementation schedule and instructions.
IRS proposal for uncertain tax positions could have far-reaching effects
The IRS proposed regulations that would require companies to disclose their uncertain tax positions is causing concern among many in the profession.
IRS will require practitioners to advocate for disclosure of return positions
An editorial from E. Lynn Nichols, CPA
The heat is on tax practitioners! Regulators and lawmakers responding to irresponsible tax advice from CPAs and attorneys who were believed to be reputable have produced a steady stream of new rules and regulations regarding disclosure and responsibility for tax return information.
IRS considers changing reporting requirements on uncertain tax positions
The IRS is considering changes to reporting requirements regarding certain business taxpayers’ uncertain tax positions in order to improve tax compliance and administration. The IRS proposal would require the reporting of uncertain tax positions at the time a return is filed by business taxpayers that have over $10 million in assets, and that have a financial statement prepared under FIN 48 or similar accounting standard.
Controversy has always surrounded FIN 48, which was first effective for fiscal years beginning after Dec. 15, 2006. FASB deferred FIN 48’s effective date for nonpublic entities until annual financial statements for periods beginning after Dec. 15, 2008—effectively beginning in 2009. FASB declined to exempt private companies and not-for-profit entities from FIN 48 in its entirety. However FASB decided to modify the disclosure requirements for nonpublic entities and provide further guidance for pass-through and not-for-profit entities.
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