A review panel has concluded FAS 109, addressing accounting for income taxes, generally achieves its purpose but may not have reduced complexity.
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Deferred Income Taxes
Post-Implementation Review of FIN 48
The Financial Accounting Foundation issued its Post-Implementation Review (PIR) Report on FASB Interpretation No. 48, Accounting for Uncertainty in Income Taxes.
LB&I Directive on Success-Based Fees Has Tax Accounting Implications
A recent directive instructs LB&I examiners not to challenge the treatment of success-based fees incurred or paid in tax years ending before April 8, 2011, if the taxpayer capitalized at least 30% of the total success-based fees incurred on the transaction on its originally filed return.
Reporting Uncertain Tax Positions
This item explores the differences between financial statement reporting and federal income tax return disclosure in preparing for disclosure of uncertain tax positions on the Schedule UTP,
Disclosure of Nonincome Tax Contingencies Under ASC 450 for Not-for-Profit Entities
This item focuses on the importance of properly accounting for and considering the impact of nonincome taxes as they apply to not-for-profit (NFP) entitles.
FIN 48 and Tax Return Disclosure
This item provides a brief overview of the FIN 48 requirements, an update on the IRS plans, and some observations on the dynamics created among an engagement’s auditors, tax preparers, and client personnel resulting from these new rules.
Case Studies for Book-Tax Differences in the Classroom
The authors discuss how to most effectively cover book-tax differences in financial accounting and tax courses and how to prepare accounting graduates for this type of work in the profession.
Indefinite-Lived Assets in Tax Provision
Indefinite-lived assets can cause unexpected results related to the determination of a valuation allowance and its impact on the effective tax rate.
Private Companies and FIN 48
On October 15, 2008, the Financial Accounting Standards Board (FASB) deferred the effective date of FIN 48 (FASB Interpretation No. 48, Accounting for Uncertainty in Income Taxes ) for all nonpublic companies for one year.
Hot Topics in FAS 109
As the financial statement year-end tax provision planning process begins, it is a good time to review some areas of Statement of Financial Accounting Standards No. 109 (FAS 109), Accounting for Income Taxes, that could require more analysis in preparing year-end tax provisions for companies.
FIN 48 Compliance: Disclosing Tax Positions in an Age of Uncertainty
FIN 48 presents new challenges for taxpayers, auditors, and tax advisers. The disclosures required by the interaction of FAS 109 and FIN 48 will result in greater public disclosure of tax planning techniques, including the strengths and weaknesses of those techniques.
Practical Considerations for the New Paid Preparer Penalty Rules and FIN 48
Editor: Michael D. Koppel, CPA, PFS Return preparers have recently become subject to new, higher standards from two sources: Congress and the Financial Accounting Standards Board (FASB). This item compares the new “more likely than not” standard and explores the pitfalls that CPAs may encounter under FIN 48 and the
Guidance on FIN 48 and Independence
The AICPA’s Professional Ethics Executive Committee (PEEC) recently issued nonauthoritative guidance on whether under AICPA Interpretation 101-3, Performance of Nonattest Services, members could assist an attest client in applying FASB Interpretation No. 48 (FIN 48), Accounting for Uncertainty in Income Taxes, without impairing independence, given the potential complexity of the
Fin 48 and State and Local Income Taxes
Scott Salmon, CPA, M.Acc. The required adoption of Financial Accounting Standards Board Interpretation No. 48, Accounting for Uncertainty in Income Taxes (FIN 48), for enterprises with fiscal years beginning after December 15, 2006, has placed increased scrutiny on state and local income taxes. Given that in the past, state and
FIN 48 and R&D Tax Credits
Editor: Terence E. Kelly, CPA Under Financial Accounting Standards Board Interpretation No. (FIN) 48, Accounting for Uncertainty in Income Taxes, claims for research and development (R&D) credits are tax positions that companies following GAAP must evaluate to determine whether (and the extent to which) they may be recorded as a
Must a Valuation Allowance Be Recorded against a Deferred Tax Asset?
Editor: Terence E. Kelly, CPA Companies are facing more scrutiny than ever about whether a valuation allowance should be recorded against their deferred tax assets and, if so, when. Auditors face challenges when evaluating the appropriateness of a company’s position on these allowances. A valuation allowance should be recorded against
employee benefits & pensions
Profits interests: The most tax-efficient equity grant to employees
By granting them a profits interest, entities taxed as partnerships can reward employees with equity. Mistakes, however, could cause challenges from taxing authorities.
