What it is
ASC 740-10 recognizes a tax position only if it is more likely than not to be sustained on examination, and measures it at the largest amount that is more than 50% likely to be realized on settlement. The difference between the benefit claimed and the benefit recognized is the unrecognized tax benefit.
This workbook tracks that position by position: gross benefit, recognized benefit, movements in the year, ending balance, accrued interest and penalties and the date the statute of limitations expires. A rollforward tab totals the movements in the tabular format and ties to the ledger.
When to use it
- Maintaining the year-end reserve for uncertain tax positions.
- Auditing the unrecognized tax benefit balance and its rollforward.
- Preparing the tabular rollforward and the reasonably possible change disclosures.
What’s inside
- Positions tab with recognition, measurement, movements, ending balance and statute dates
- Flags for positions that lapse within twelve months
- Rollforward tab with ledger tie-out and effect-on-rate amount
- Interest and penalty accrual lines and a reasonably possible change field
Standard cited
This template follows ASC 740-10 (FIN 48). It is written in our own words, except for phrases the standard requires the document to contain, with [bracketed placeholders] for client details, amounts in USD and dates as MM/DD/YYYY. Check it against the current standard and your firm’s methodology before use.
Questions
Is the tabular rollforward required?
ASC 740-10-50-15A requires public entities (public business entities after ASU 2023-09) to present it, gross of interest and penalties. The entity must also disclose its policy for classifying interest and penalties, in income tax expense or elsewhere.
Does the workbook decide whether a position is sustainable?
No. It records the result of the recognition and measurement analysis. Keep the technical memo with the file.
What happens when the statute of limitations lapses?
The related unrecognized tax benefit is released in the period of lapse. The Positions tab flags rows that lapse within twelve months so the release and the disclosure of reasonably possible changes are not missed.
Related templates
- Income Tax Provision Workbook (ASC 740)
- Rate Reconciliation Template (ASC 740)
- Deferred Tax Rollforward and Valuation Allowance Worksheet
Last updated 11/05/2026. All free templates.