FASB Interpretation No. 48, Accounting for Uncertainty in Income Taxes—an interpretation of FASB Statement No. 109 [FASB ASC 740 and 805]
Financial Accounting Standards Board (“FAS B”) Interpretation No. 48, Accounting for
Uncertainty in Income Taxes—an interpretation
of FASB Statement No. 109 (“FIN 48”) [FAS B ASC 740 and 805] generally was effective for fiscal years beginning after December 15, 2006. The effective date was extended for nonpublic enterprises (as defined in paragraph 289, as amended, of Statement 109), except for nonpublic consolidated entities of public enterprises that apply U.S. generally accepted accounting principles (“GAAP”). For these entities, FIN 48 is effective for annual financial statements for fiscal years beginning after December 15, 2008.
Since benefit plans are generally exempt from income taxes, a few matters, such as unrelated business income and operational issues that may jeopardize a plan’s tax exempt status, may trigger the application of FIN 48. The adoption of FIN 48 by an employee
benefit plan will require a fresh look at the
risk of unrelated business income tax and
other potential disqualifying impacts on its
activities.
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