STATE & LOCAL TAX

Pennsylvania CPA Journal, January, 2008 by Bingel, Gary C

Can You Define State Income Taxes Under FIN 48?

"The distinction between what is and what is not an 'income tax' is becoming increasingly challenging."

One of the hottest state tax topics today is the application of FASB Interpretation No. 48 (FIN 48). One reason for this is that the state tax arena historically has been one of high litigation and uncertainty, with relatively little guidance compared with federal tax. An area of uncertainty that is growing in importance relates to what would appear to be a basic FIN 48 question: what state and local taxes are "income taxes" for FIN 48 purposes?

FIN 48 is an interpretation of FASB Statement No. 109 (FAS 109), Accounting for Income Taxes, so the definition of "income tax" found in FAS 109 applies to FIN 48 as...

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