What Can We Learn About Uncertain Tax Benefits from Fin 48?
National Tax Journal, Vol. 60, No. 3, September 2007
Posted: 26 Jan 2014
Date Written: September 01, 2007
FIN 48, Accounting for Uncertainty in Income Taxes, standardizes accounting for uncertain tax benefits and requires companies to disclose their tax reserve amounts. We summarize hand-collected disclosures related to tax reserves from 2005 through the first quarter of 2007. For the largest 100 non-financial, non-regulated firms, the reserve at adoption on January 1, 2007 is $78 billion excluding interest, or about two percent of assets. Of this $78 billion, an estimated $58 billion would affect earnings if ever released.
Keywords: tax compliance, FIN 48, accounting for income taxes, disclosure
JEL Classification: C72, H25, M41
Suggested Citation: Suggested Citation