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S), the prevailing approach for disclosing uncertain tax positions on IRS Form UTP is to provide as little information as possible and not to spend much time in drafting them. This article suggests that a different approach may often be better. Form UTP is a deceptively simple form. The 2011 form requires corporate taxpayers with assets of more than $100 million1 to report issues for which tax reserves have been accrued under ASC 740 (formerly FAS 109 or FIN 48). In addition, taxpayers mus.

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ASC 740 includes rules for accounting for uncertain tax positions (UTPs).

Corporations attaching a Schedule UTP must include a concise description of the uncertain tax position with (1) the relevant facts affecting the tax treatment of the position, and (2) information that identifies the tax position, its amount, unit of account, and the nature of the controversy or potential controversy.

Uncertain Tax Position Reporting Corporations filing Forms 1120, 1120-F, 1120-L, or 1120-PC must file Schedule UTP if total assets equal or exceed $10 million for the tax year and the corporation recorded a liability for unrecognized tax benefits for a tax position in audited financial statements.

Uncertain Tax Position Reporting Corporations filing Forms 1120, 1120-F, 1120-L, or 1120-PC must file Schedule UTP if total assets equal or exceed $10 million for the tax year and the corporation recorded a liability for unrecognized tax benefits for a tax position in audited financial statements.

The IRS defines a UTP as a position taken on a tax return for which the corporation or a related party has recorded a reserve in its audited financial statements. A UTP also refers to instances in which a company hasn't recorded a reserve for the position because it expects to litigate it.

But uncertainty is a double-edged sword: if they don't pass muster with taxing authorities, uncertain tax positions (UTPs) can materially impact your financial statements, and therefore your tax provision. That spells heightened risk for audits, financial restatements—and, of course, more uncertainty downstream.

ASC 740 includes rules for accounting for uncertain tax positions (UTPs).

Requirements for Filing Schedule UTP The corporation has assets that equal or exceed $10 million; The corporation or a related party issued audited financial statements reporting all or a portion of the corporation's operations for all or a portion of the corporation's tax year; and.

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© Copyright 1997-2025
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Form Packages
Adoption
Bankruptcy
Contractors
Divorce
Home Sales
Employment
Identity Theft
Incorporation
Landlord Tenant
Living Trust
Name Change
Personal Planning
Small Business
Wills & Estates
Packages A-Z
Form Categories
Affidavits
Bankruptcy
Bill of Sale
Corporate - LLC
Divorce
Employment
Identity Theft
Internet Technology
Landlord Tenant
Living Wills
Name Change
Power of Attorney
Real Estate
Small Estates
Wills
All Forms
Forms A-Z
Form Library
Customer Service
Terms of Service
DMCA Policy
About Us
Blog
Affiliates
Contact Us
Privacy Notice
Delete My Account
Site Map
All Forms
Search all Forms
Industries
Forms in Spanish
Localized Forms
Legal Guides
Real Estate Handbook
All Guides
Prepared for You
Notarize
Incorporation services
Our Customers
For Consumers
For Small Business
For Attorneys
Our Sites
US Legal Forms
USLegal
FormsPass
pdfFiller
signNow
airSlate workflows
DocHub
Instapage
Social Media
Call us now toll free:
1-877-389-0141
As seen in:
  • USA Today logo picture
  • CBC News logo picture
  • LA Times logo picture
  • The Washington Post logo picture
  • AP logo picture
  • Forbes logo picture
© Copyright 1997-2025
airSlate Legal Forms, Inc.
3720 Flowood Dr, Flowood, Mississippi 39232