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This course covers the disclosure requirements for uncertain tax positions.  Under ASC 740-1 (formerly FASB interpretation #48 (FIN48)) a corporation must make a determination of the likelihood that one or more of its tax positions will be sustained upon review by the authorities and applies to both temporary and permanent differences.  A tax position taken on a current or previously filed federal tax return may also be subject to disclosure on Schedule UTP which is filed with the Form 1120, US Corporation Tax Return.  Disclosure is required when either the corporation or a related party has recorded a reserve with respect to that tax position for federal income tax in an audited financial statement.  Furthermore, if a reserve for that tax position was not recorded because the corporation expects to litigate its position, disclosure is also required.

This course covers the tax accrual process for an uncertain tax position when preparing the corporation’s financial statements and the requirements to adequately disclose an uncertain tax position on Schedule UTP.  Topics covered include:

  • Determining what is an uncertain tax position for financial accounting purposes
    • Recognition and measurement issues
    • Required disclosure on financial statements
  • Determining which uncertain tax positions must be disclosed on the tax return
    • Disclosure requirements of Schedule UTP
    • Overlap between Schedule M-3 and Schedule UTP disclosure requirements

      Note:  The tax accrual was covered in the first basic course, and Schedule M-3 reporting requirements were covered in the three intermediate courses.   

A comprehensive example of Schedule UTP and M-3 disclosures is provided to reinforce your knowledge of identifying and reporting uncertain tax positions for both financial accounting and tax accounting purposes.

 

Course Series

This course is included in the following series:

7 CoursesReporting and Compliance for Book-Tax Differences

  1. Corporate Tax Filing: Schedule M-1 Disclosure of Book-Tax Differences on the Corporate Tax Return
  2. Corporate Tax Filing: Schedule M-3: Part I: Compliance and Reporting Issues
  3. Corporate Tax Filing: Schedule M-3: Part II: Compliance and Reporting Issues
  4. Corporate Tax Filing: Schedule M-3: Part III: Compliance and Reporting Issues
  5. Corporate Tax Filing: Schedule M-3: Additional Reporting in Parts II and III
  6. Corporate Tax Filing: Schedule M-3: Reporting Requirements for a Consolidated Group
  7. Corporate Tax Filing: Uncertain Tax Positions: Financial Accounting and Tax Reporting Requirements

Learning Objectives

  • Identify how to determine and report uncertain tax positions on the financial statements and the tax return.
  • Discover which uncertain tax positions must be disclosed on the tax return entify the Schedule UTP filing requirements.
  • Recognize the overlap of Schedule M-3 and Schedule UTP disclosure requirements.

4 Reviews (31 ratings)Reviews

5
Member's Profile
This course was a helpful guide to navigating the reporting requirements that are associated with uncertain tax positions
3
Anonymous Author
Very confusing but expected considering the complexity of the tax topic.
3
Member's Profile
A complex topic that is explained clearly and thoroughly at this level.
4
Anonymous Author
Basic overview of uncertain tax position disclosure requirements.

Prerequisites

Course Complexity: Advanced

No Advanced Preparation or Prerequisites are needed for this course. However, it is recommended to take the other courses in the series prior to completing this one.

Education Provider Information

Company:
Illumeo, Inc., 75 East Santa Clara St., Suite 1215, San Jose, CA 95113
Contact:
For more information regarding this course, including complaint and cancellation policies, please contact our offices at (408) 400- 3993 or send an e-mail to .
Course Syllabus
INTRODUCTION AND OVERVIEW
Uncertain Tax Positions
  12:21ASC740-10-50 and UTP
  6:40UTP
  13:01Form 8275 Vs. Schedule UTP
  13:29Schedule UTP Reporting, Requirements, and Disclosures
CONCLUSION
  16:55Case Study and Conclusion
Continuous Play
  1:05:51Corporate Tax Filing: Uncertain Tax Positions: Financial Accounting and Tax Reporting Requirements
SUPPORTING MATERIALS
  PDFSlides: Financial Accounting and Tax Reporting Requirements
  PDFFinancial Accounting and Tax Reporting Requirements Glossary/Index
REVIEW & TEST
  quizREVIEW QUESTIONS
 examFINAL EXAM