answersLogoWhite

0


Best Answer

Fin 48 clarified the accounting for uncertainty in income taxes by providing criteria for the recognition and measurement of Unrecognized Tax Benefits (UTB). UTBs are a reserve account for future tax contingencies and liabilities. They represent the firm's expectation of additional tax expense from the resolution of an audit by the taxing authorities, assuming all tax positions will be subject to audit.

User Avatar

Wiki User

12y ago
This answer is:
User Avatar

Add your answer:

Earn +20 pts
Q: What is an unrecognized tax benefit?
Write your answer...
Submit
Still have questions?
magnify glass
imp
Related questions

Whether unrecognized tax benefits is a tax portion?

An unrecognized tax benefit is the difference between the tax benefit reflected on the income tax return and the amount of the benefit recorded on the financial statements. Example: taxpayer deducts $100 on its return but believes that a $60 deduction will be the most likely outcome in a negotiated resolution with the IRS on audit. The $40 difference is the unrecognized tax benefit.


What is the tax benefit of a car donation?

Not everyone can get a tax benefit and if you do the amount can vary.


The governments benefit from a tax can be measured by?

tax revenue


Is a income tax benefit account a contra account of income tax expense?

The answer is no.A contra account to the "Income Tax Benefit (Deferred)" would be a "Income Tax Charge (Deferred)".


How do you use unrecognized in a sentence?

The Roman centurion's salute went unrecognized. How long will my talent go unrecognized?


How do tax payers benefit from paying taxes?

Individuals benefit from state services.


What is a tax trap?

A tax trap is a tax law provision that can result from a taxpayer's loss of an otherwise available tax benefit from a transaction.


What is tax trap?

A tax trap is a tax law provision that can result from a taxpayer's loss of an otherwise available tax benefit from a transaction.


Why is the tax expense reported on the income statement comprised of current and deferred tax?

This is in accordance with Generally Accepted Accounting Principles, SFAS No. 109, "Accounting for Income Taxes". The theory is that even if you don't owe tax today on a given temporary difference, you will one day owe (or get the tax benefit) of said temporary difference. Remember: current tax expense= your tax bill this year deferred tax expense/ benefit=your future tax expense or benefit on the book/tax temporary items


Who pays child benefit?

We do simply by paying tax!


What is the tax-benefit or tax-advantage of being a silent partner?

Compared to an active partner - NONE.


Do you pay taxes on a house buyout?

You pay tax on the profit from a sale. And get a tax benefit from a loss.