Uncertain Tax Positions: Accounting for Income Tax--And Why it Matters to Both Individual and Business Investors

Document Type

Article

Comments

Published by the Civic Research Institute in the Journal of Taxation of Investments, volume 28 issue 4, 2011. Bryant users may access this article here.

Keywords

Deferred; accounting; income tax; asc; tax expense; temporary; financial statement; tax benefit; book value; tax basis; tax rate; deductible; tax position; permanent; capital gain; taxable income; tax liability; capital loss; swap; balance sheet; tax authority; recovered; inventory; allowance; valuation; prepare; deferred compensation; recording, offset; ordinary income

Publisher

Civic Research Institute

Publication Source

Journal of Taxation of Investments

Abstract

Accounting for income tax is an important and complex area for financial accounting purposes, and it has recently become important for income tax purposes as well. The newly released Schedule UTP (i.e., uncertain tax positions) reflects the heightened interest that the Internal Revenue Service has in taxpayers' financial accounting for income tax. n1 Accounting for income tax is even important to individual taxpayers who do not prepare financial statements.

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