The financial reporting and tax aggressiveness implications of schedule utp

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dc.contributor Schnee, Edward J.
dc.contributor Lopez, Thomas J.
dc.contributor Reitenga, Austin L.
dc.contributor Mittenthal, John
dc.contributor Williams, Eric S.
dc.contributor.advisor Stone, Mary S. Davenport, Stephan Arthur 2017-03-01T17:36:00Z 2017-03-01T17:36:00Z 2015
dc.identifier.other u0015_0000001_0002014
dc.identifier.other Davenport_alatus_0004D_12435
dc.description Electronic Thesis or Dissertation
dc.description.abstract In 2010, the Internal Revenue Service (IRS) announced the requirement to disclose uncertain tax positions (UTPs) on a new schedule (Schedule UTP) to be filed with federal corporate income tax returns. Schedule UTP requires companies to report line-item detail to the IRS of the aggregate disclosure requirement of uncertain tax benefits (UTBs) established by FIN 48 (KPMG 2010a). I examine firms’ change in reporting UTBs subsequent to the announcement of Schedule UTP. Overall, the results indicate firms reduce not only the levels of reported UTB, but they also significantly reduced the year to year changes in reported UTBs. Consistent with my predictions, firms which are required to file Schedule UTP earlier have an incrementally more significant reduction in reported UTBs. Results provide mixed evidence for financially conservative firms. Contrary to expectations, the decrease in reported UTBs is not incrementally more significant for firms in the upper quartile of tax aggressiveness. Additionally, I examine whether the announcement of Schedule UTP impacts other proxies for tax aggressive behavior. Results indicate that book-tax differences decrease subsequent to Schedule UTP. However, neither measure of tax aggressiveness based on effective tax rates provides statistically significant results. This finding suggests the decrease in reported UTBs is merely a change in reporting behavior and not a change in aggressive tax behavior.
dc.format.extent 129 p.
dc.format.medium electronic
dc.format.mimetype application/pdf
dc.language English
dc.language.iso en_US
dc.publisher University of Alabama Libraries
dc.relation.ispartof The University of Alabama Electronic Theses and Dissertations
dc.relation.ispartof The University of Alabama Libraries Digital Collections
dc.relation.hasversion born digital
dc.rights All rights reserved by the author unless otherwise indicated.
dc.subject.other Accounting
dc.title The financial reporting and tax aggressiveness implications of schedule utp
dc.type thesis
dc.type text Culverhouse School of Accountancy Accounting The University of Alabama doctoral Ph.D.

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