ASC 740 requires taxpayers to examine each and every "tax position" taken.

Question

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ASC 740 requires taxpayers to examine each and every "tax position" taken, meaning that they must review every potential taxable event and determine the appropriate tax treatment for each one. This includes evaluating the likelihood of the position being accepted by taxing authorities and reconciling any differences between the tax treatment and financial reporting treatment of the same transaction or event.

ASC 740 Requires Taxpayers to Examine Each and Every "Tax