What is a schedule UTP tax position?
Schedule UTP asks for information about tax positions that affect the U.S. federal income tax liabilities of certain corporations that issue or are included in audited financial statements and have assets that equal or exceed $10 million. Tax positions to be reported.
What does UTP stand for?
3 meanings of UTPabbreviation related to Accounting: Accounting Accounting Accounting Technology Business Networking Education 1/ 10 Sort Sort Rating A-Z Short first Long first UTP Accounting Abbreviation 1 UTP Uncertain Tax Position+ 1 variant Tax, Schedule, Financial Tax, Schedule, Financial 1
How do I enter UTP numbers for tax positions?
UTP No. Enter a number in column (a) for each tax position reported. The UTP numbers on Part I, column (a), include a preprinted "C" prefix to indicate that they are positions for the current tax year. A corresponding UTP number with the letter "C" prefix will be used on Part III for reporting the concise description of the tax position.
What is schedule UTP for Form 1120?
Corporations filing Forms 1120, 1120-F, 1120-L, or 1120-PC must file Schedule UTP if total assets equal or exceed the applicable asset threshold for the tax year and the corporation reserved for a tax position in audited financial statements.
What is the asset threshold for filing UTP?
For tax years beginning in 2014 and later, the asset threshold for reporting uncertain tax positions on Schedule UTP (Form 1120) decreased to $10 million. Corporations meeting all other Schedule UTP filing requirements must file a Schedule UTP if total assets equal or exceed $10 million. This asset threshold decrease for tax year 2014 is the final phase of the five-year Schedule UTP filing requirement phase-in. The asset threshold for tax years 2010 and 2011 was $100 million, and it decreased to $50 million for tax years 2012 and 2013.
Does the letter require action by taxpayers regarding the referenced Schedule UTP?
While the letter requires no action by taxpayers regarding the referenced Schedule UTP, taxpayers are advised to ensure that concise descriptions follow the instructions on future filings of a Schedule UTP. All returns filed with a Schedule UTP will continue to be subject to review by LB&I.
What is ASC 740-10-25?
ASC Section 740-10-25 defines the threshold for recognizing the benefits of tax-return positions in the financial statements as “more-likely-than-not” to be sustained by the tax authority based solely on its technical merits as of the reporting date. In making this assessment, a company must assume that the tax authorities will examine the position and have full knowledge of all relevant information. In other words, detection risk is not considered in the assessment.
Is ASC 740 accounting for uncertain tax positions?
As a result, the accounting for uncertain tax positions under ASC 740 is in the spotlight. We recommend that companies and their auditors brush up on this important accounting topic.
How does UTP work?
Unlisted trading privileges were developed in order to help increase the liquidity of securities across markets that do not include registered exchanges. Unlisted trading privileges give certain companies the ability to trade on an exchange without meeting the additional requirements required ...
Who approves the extension of UTP?
The extension of UTP must be approved by the SEC, which can integrate certain additional requirements.
What Are Unlisted Trading Privileges (UTP)?
Unlisted trading privileges (UTP) refer to the processes around the trading of a security that is not required to meet certain minimum requirements to be traded on an exchange. Regulation for UTP is detailed in the Unlisted Trading Privileges Act of 1994. 1
What is unlisted trading?
Unlisted trading privileges (UTP) refer to the processes around the trading of a security that is not required to meet certain minimum requirements to be traded on an exchange. Regulation for unlisted trading privileges is detailed in the Unlisted Trading Privileges Act of 1994. 1 . The most common instance of unlisted trading occurs ...
What is Schedule UTP?
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. 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.
Why do corporations have to report their tax position in each of the 15 years?
The corporation has taken a tax position in each of the 15 tax years because on each year’s tax return there would be an adjustment to a line item on that return if the position taken in that year is not sustained. The corporation must report the 2018 tax position on Part I of Schedule UTP for the 2018 tax year.
How much is a corporation's total assets?
A corporation’s assets equal or exceed $10 million if the amount reported on page 1, item D of Form 1120, or the higher of the beginning or end of year total assets reported on Schedule L of Form 1120-L or Form 1120-PC, is at least $10 million.
Does a corporation need to report a reserve on Schedule UTP?
The analysis of whether a reserve has been recorded for the purpose of completing Schedule UTP is determined by reference to those reserve decisions made by the corporation or a related party for audited financial statement purposes. If the corporation or a related party determined that, under applicable accounting standards, either no reserve was required for a tax position taken on a tax return because the amount was immaterial for audited financial statement purposes, or that a tax position was sufficiently certain so that no reserve was required, then the corporation need not report the tax position on Schedule UTP. For a corporation subject to FASB Interpretation No. (FIN) 48, a tax position is considered "sufficiently certain so that no reserve was required," and therefore need not be reported on Schedule UTP, if the position is "highly certain" within the meaning of FIN 48.