FIN 48 Compliance: Disclosing Tax Positions in an Age of Uncertainty

Tax Adviser, January 2008

9 Pages Posted: 1 Dec 2013

See all articles by Cherie Hennig

Cherie Hennig

University of North Carolina (UNC) at Wilmington - Department of Accountancy and Business Law

William A. Raabe

University of Wisconsin - Whitewater - College of Business and Economics

John Everett

Virginia Commonwealth University (VCU) - Department of Accounting

Date Written: January 1, 2008

Abstract

The interaction of FAS 109 and FIN 48 will result in greater public disclosure of tax planning techniques.

Under FIN 48, a tax position is recorded only if the tax position is more likely than not to be sustained on examination (including related appeals or litigation processes).

A material tax position is tested under a two-step process consisting of a recognition step and a measurement step.

FIN 48 requires a reevaluation of all tax positions at the end of each reporting period. Prior recognized positions may be derecognized or remeasured, and prior unrecognized positions may be recognized in each reevaluation.

Keywords: FIN 48, book tax differences, disclosure

JEL Classification: E62, H25

Suggested Citation

Hennig, Cherie and Raabe, William A. and Everett, John, FIN 48 Compliance: Disclosing Tax Positions in an Age of Uncertainty (January 1, 2008). Tax Adviser, January 2008. Available at SSRN: https://ssrn.com/abstract=2360239

Cherie Hennig

University of North Carolina (UNC) at Wilmington - Department of Accountancy and Business Law ( email )

601 S. College Road
Wilmington, NC 28403
United States

William A. Raabe (Contact Author)

University of Wisconsin - Whitewater - College of Business and Economics ( email )

Whitewater, WI 53190
United States

HOME PAGE: http://billraabetax.com

John Everett

Virginia Commonwealth University (VCU) - Department of Accounting ( email )

Richmond, VA 23284
United States

Register to save articles to
your library

Register

Paper statistics

Downloads
22
Abstract Views
211
PlumX Metrics