With regard to uncertain tax positions, the FASB requires that companies recognize a tax benefit when

Question

Quizplus · Accepted Answer

According to FASB, companies can recognize a tax benefit related to uncertain tax positions only if it is more likely than not that the tax position will be sustained upon audit. This means the company must have a probability of greater than 50% that the tax position will be accepted by tax authorities. Option A is incorrect as it doesn't include the "more likely than not" condition, and option B incorrectly assumes that a 51% probability is sufficient. Therefore, option C is the most accurate choice. Option D is incorrect as it is a broad statement that includes incorrect options A and B.

With Regard to Uncertain Tax Positions, the FASB Requires That