Uncertain Tax Positions: Accounting for Income Tax--And Why it Matters to Both Individual and Business Investors
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
Civic Research Institute
Journal of Taxation of Investments
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.