What is a FIN 48 position?

The FIN 48 process is used to ensure that a tax-related asset or liability actually exists at the date the financial statements are prepared and that the tax position will be sustained on review by the tax authorities.

What is included in uncertain tax positions?

The IRS defines a UTP as a position taken on a tax return for which the corporation or a related party has recorded a reserve in its audited financial statements. A UTP also refers to instances in which a company hasn’t recorded a reserve for the position because it expects to litigate it.

Is FIN 48 the same as ASC 740?

ASC 740, formerly known as FIN 48, offers guidance on uncertain tax positions. It is broad in scope and now applies to both nonprofit and for-profit entities.

What is fin18?

FIN 18: Accounting for Income Taxes in Interim Periods.

What information must be disclosed in the disclosure notes to the financial statements for net operating loss carryforwards?

Disclosure Notes: NET OPERATING LOSS (NOL) CARRYFORWARDS. The amounts and expiration dates should be revealed for any net operating loss carryforwards. Remember, net operating losses can be carried forward for reduction of future taxable income for 20 years.

What is substantial authority percentage?

Sec. 1. 6694-2(b)(1) before amendment by T.D. 9436), a position with “substantial authority” has come to be understood as one having approximately a 40% chance of success based on its merits.

What are the criteria for recognizing the benefits of an uncertain tax position?

For a position to qualify for benefit recognition, the position must have at least a more-likely-than-not chance of being sustained based on its technical merits if challenged by the relevant taxing authorities and taken by management to the court of last resort.

Which of the following items would likely not be included in the computation of a company’s structural effective tax rate?

74. Which of the following items would likely not be included in the computation of a company’s structural effective tax rate? Goodwill impairment would be considered a discrete item and would not be considered part of a company’s structural effective tax rate.

What does ASC stand for in ASC 740?

Accounting Standards Codification
Accounting Standards Codification (ASC) 740, Income Taxes addresses how companies should account for and report the effects of taxes based on income.

What type of account is provision for income tax?

current tax liabilities
Tax provisions are considered current tax liabilities for the purpose of accounting because they are amounts earmarked for taxes to be paid in the current year.

How is Aetr calculated?

The estimated annualized current effective tax rate is calculated by dividing the total current tax expense/(benefit) by the pre-tax net income after book adjustments.

What are discrete items?

A discrete item is defined as an item that is not part of a larger body of material (e.g., a fonds or collection).