IRS Proposing New Reporting Requirements Regarding Uncertain Tax Positions, Including Valuations

1/27/2010 12:00:00 AM

IRS announced on January 26 it is considering changes to its disclosure requirements regarding companies’ uncertain tax positions.  The new disclosures would require companies to provide a “concise description of each uncertain tax position” concerning which it  has provided a reserve  in its accounting, and the “maximum amount of potential federal tax liability” the company faces if its claim fails.  As part of the disclosure, companies would be required to state “whether the position involves a determination of the value of any property or right.”  Currently, companies following Financial Accounting Standards Board standards are required to include this information as part of its accounting documents as required by FASB Interpretation 48.

To read the entire IRS announcement, click here.

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