TEC initiatives.

• Author: Hoops, Jeffrey R.
• Position: DC Currents

In the past few months, Tax Division volunteers and AICPA tax staff have been very busy fulfilling the Tax Section's mission and the action steps listed in its Strategic Plan. The AICPA's Tax Section has approximately 23,000 members. The Tax Division includes those Section members who serve on committees, technical resource panels (TRPs), task forces and working groups. Below is a summary of recent activities.

FIN 48

Financial Accounting Standards Board (FASB) Interpretation (FIN) No. 48, Accounting for Uncertainty in Income Taxes, was issued in July 2006 and interprets FASB Statement of Financial Accounting Standards (FAS) No. 109, Accounting for Income Taxes. For years beginning after Dec. 15, 2006, all GAAP-based financial statements must account for taxes in accordance with FIN 48, including a required analysis of all tax positions at the beginning of the period or, for calendar-year-end businesses, as of Jan. 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 be recognized only if they meet a "more-likely-than-not" threshold of being realized if challenged by a taxing authority with flail knowledge of the facts. If this level of certainty is not met, no tax benefit can be booked; even if it is met, only the amount that has a greater-than-50% chance of being sustained may be booked. Specific financial statement disclosures are required for 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 FIN 48 requirements. The practice guide is available without charge to all AICPA members and can be downloaded at www.aicpa.org/FIN48Guide.

Tax Practice Guides and Checklists

The Tax Division's annual package of Tax Practice Guides and Checklists is being posted online as premium content for Tax Section members, and was scheduled to be distributed to Tax Section members in January 2007 on CD-ROM. It is also available in a print version for a small fee. These products are also available to nonmembers through CPA2Biz.

The package exceeds 600 pages and includes over 100 return-specific checklists, along with tax organizers, engagement...