What Can We Learn About Uncertain Tax Benefits from Fin 48?

National Tax Journal, Vol. 60, No. 3, September 2007

Posted: 26 Jan 2014

See all articles by Jennifer Blouin

Jennifer Blouin

University of Pennsylvania - Accounting Department

Cristi A. Gleason

University of Iowa - Department of Accounting

Lillian F. Mills

University of Texas at Austin - McCombs School of Business; The University of Texas at Austin

Stephanie A. Sikes

University of Pennsylvania - Accounting Department

Date Written: September 01, 2007

Abstract

FIN 48, Accounting for Uncertainty in Income Taxes, standardizes accounting for uncertain tax benefits and requires companies to disclose their tax reserve amounts. We summarize hand-collected disclosures related to tax reserves from 2005 through the first quarter of 2007. For the largest 100 non-financial, non-regulated firms, the reserve at adoption on January 1, 2007 is $78 billion excluding interest, or about two percent of assets. Of this $78 billion, an estimated $58 billion would affect earnings if ever released.

Keywords: tax compliance, FIN 48, accounting for income taxes, disclosure

JEL Classification: C72, H25, M41

Suggested Citation

Blouin, Jennifer and Gleason, Cristi A. and Mills, Lillian F. and Mills, Lillian F. and Sikes, Stephanie A., What Can We Learn About Uncertain Tax Benefits from Fin 48? (September 01, 2007). National Tax Journal, Vol. 60, No. 3, September 2007, Available at SSRN: https://ssrn.com/abstract=2384870

Jennifer Blouin

University of Pennsylvania - Accounting Department ( email )

1315 SHDH
3620 Locust Walk
Philadelphia, PA 19104-6365
United States
215-898-1266 (Phone)

Cristi A. Gleason

University of Iowa - Department of Accounting ( email )

108 Pappajohn Business Building
Iowa City, IA 52242-1000
United States

Lillian F. Mills

The University of Texas at Austin ( email )

McCombs School of Business
1 University Station B6400
Austin, TX 78712-0211

University of Texas at Austin - McCombs School of Business ( email )

Austin, TX 78712
United States

Stephanie A. Sikes (Contact Author)

University of Pennsylvania - Accounting Department ( email )

3641 Locust Walk
Philadelphia, PA 19104-6365
United States

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