For years beginning after December 15, 2006, all GAAP-based financial statements must account for taxes in accordance with FIN 48, Accounting for Uncertain Tax Positions, including a required analysis of all tax positions at the beginning of the period or, for calendar-year-end businesses, as of January 1, 2007.  To help financial statement preparers, auditors, and tax advisers meet this new requirement, the Accounting Standards, Auditing and Attest Standards, and Tax Teams have developed a Practice Guide on Accounting for Uncertain Tax Positions Under FIN 48. Tax positions can only be recognized if they meet a “more-likely-than-not” threshold of being realized if challenged by a taxing authority with full knowledge of the facts. If this level of certainty is not met, no tax benefit can be booked, and even if it is met, only the amount which has a greater than 50% change of being sustained may be booked. Specific financial statement disclosures are required with respect to uncertain tax positions.  The AICPA’s 13-page practice guide includes highlights of FIN 48 and its implications for in-house accountants, auditors, and tax advisers. It is not authoritative, but intended to assist members in quickly understanding the requirements of FIN 48. The practice guide is available without charge to all AICPA members. 

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