FIN 48 Compliance: Disclosing Tax Positions in an Age of Uncertainty
Tax Adviser, January 2008
9 Pages Posted: 1 Dec 2013
Date Written: January 1, 2008
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: Suggested Citation