{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

C12-Chp-01-1C-Women acct conference- selected slides-Penalties

C12-Chp-01-1C-Women acct conference- selected slides-Penalties

Info iconThis preview shows pages 1–11. Sign up to view the full content.

View Full Document Right Arrow Icon
Tax Update For The 2011 Annual Conference for Women in Accounting Prepared by By Howard Godfrey, Ph.D., CPA Professor of Accounting – UNC Charlotte October 25, from 1:40 to 3:20 pm.
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Part 7 Uncertainty in Tax Practice: Economic Substance, Uncertain Positions
Background image of page 2
aaa
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Background image of page 4
Unrecognized tax benefits- Duke Energy Duke Energy reported total Unrecognized Tax Benefits of $664 million as of January 1, 2010. The balance declined to $342 million by the end of the year, primarily due to settlements of $320 million. Form 10-K. December 31, 2010.
Background image of page 5

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Unrecognized tax benefits- Walmart At January 31, 2010 and 2009, the company had an unrecognized tax benefit of $1.7 billion , which is related to an ordinary worthless stock deduction from the fiscal 2007 disposition of its German operations… If …the ordinary loss is determined to be a capital loss, the resulting deferred tax asset will be included with the company’s non-current assets of discontinued operations . In addition to amounts shown … (above), $1 billion of unrecognized tax benefits are considered uncertain tax positions and have been recorded as liabilities.
Background image of page 6
Unrecognized tax benefits- Walmart As of January 31, 2010 and 2009, the amount of unrecognized tax benefits related to continuing operations was $1.0 billion , of which, the amount of unrecognized tax benefits that would affect the company’s effective tax rate is $671 million and $582 million for January 31, 2010 and 2009, respectively. Accrued penalties totaled $2 million at January 31, 2010 and 2009.
Background image of page 7

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Unrecognized tax benefits- Walmart During the next 12 months, it is reasonably possible that tax audit resolutions could reduce unrecognized tax benefits by between $350 million and $500 million, either because the tax positions are sustained on audit or because the company agrees to their disallowance. The company does not expect any change to have a significant impact on its results of operations or financial position.
Background image of page 8
Reporting Uncertain Positions 1 Tax positions to be reported. Schedule UTP requires the reporting of each U.S. federal income tax position taken by an applicable corporation on its U.S. federal income tax return for which two conditions are satisfied. 1. The corporation has taken a tax position on its U.S. federal income tax return for the current tax year or for a prior tax year. 2. Either the corporation or a related party has recorded a reserve with respect to that tax position for U.S. federal income tax in audited financial statements, or the corporation or related party did not record a reserve for that tax position because the corporation expects to litigate the position.
Background image of page 9

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Reporting Uncertain Positions 2 A tax position for which a reserve was recorded (or for which no reserve was recorded because of an expectation to litigate) must be reported regardless of whether the audited financial statements are prepared based on U. S. generally accepted accounting principles (GAAP), International Financial Reporting Standards (IFRS), or other country-specific accounting standards, including a modified version of any of the above (for example, modified GAAP).
Background image of page 10
Image of page 11
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}