How do disclosures of tax uncertainty to tax authorities affect reporting decisions? : evidence from Schedule UTP

dc.contributor.advisorMills, Lillian F.
dc.creatorTowery, Erin Marieen
dc.date.accessioned2013-10-30T19:42:47Zen
dc.date.issued2013-05en
dc.date.submittedMay 2013en
dc.date.updated2013-10-30T19:42:48Zen
dc.descriptiontexten
dc.description.abstractThis study exploits the recently-issued Uncertain Tax Position Statement (Schedule UTP) to examine the effect of mandatory disclosures of tax uncertainty to tax authorities on firms' reporting decisions. Schedule UTP requires firms to disclose federal income tax positions to the Internal Revenue Service that have been classified as 'uncertain' for financial reporting purposes. In showing how Schedule UTP disclosure requirements affect private and public reporting decisions, I provide insights into the usefulness of these disclosures. Using confidential tax return data and public financial statement data, I find that after imposition of Schedule UTP reporting requirements, firms report lower financial reporting reserves for uncertain income tax positions, but do not claim fewer income tax benefits on their federal tax returns. These findings suggest some firms changed their financial reporting for uncertain tax positions to avoid Schedule UTP reporting requirements without changing the underlying positions. The effect is concentrated among firms with greater business complexity, whose business operations facilitate tax planning strategies that are more difficult for the IRS to identify. More broadly, my results imply private disclosures of tax uncertainty can affect the informativeness of public disclosures of tax uncertainty.en
dc.description.departmentAccountingen
dc.format.mimetypeapplication/pdfen
dc.identifier.urihttp://hdl.handle.net/2152/21819en
dc.language.isoen_USen
dc.subjectIRSen
dc.subjectTax uncertaintyen
dc.subjectAccounting for income taxesen
dc.subjectDisclosureen
dc.subjectSchedule UTPen
dc.titleHow do disclosures of tax uncertainty to tax authorities affect reporting decisions? : evidence from Schedule UTPen
thesis.degree.departmentAccountingen
thesis.degree.disciplineAccountingen
thesis.degree.grantorThe University of Texas at Austinen
thesis.degree.levelDoctoralen
thesis.degree.nameDoctor of Philosophyen

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