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FASB Interpretation No. 48, "Accounting for Uncertainty in Income Taxes"

 

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In June, 2006 the Financial Accounting Standards Board issued Interpretation 48 of Financial Accounting Standard 109. This interpretation, known as ¡°FIN 48¡±, is intended to eliminate inconsistency in accounting for uncertain tax positions in financial statements certified in accordance with U.S. GAAP. FIN 48 mandates new rules for recognition, de-recognition, measurement, and disclosure of all tax positions.

FIN 48 Policy and Field Guidance

IRS has determined that documents produced by a taxpayer and/or its auditors to substantiate the taxpayer¡¯s uncertain tax positions in compliance with FIN 48 are included within the Service¡¯s interpretation of Tax Accrual Workpapers and are therefore subject to the applicable policy of restraint.