Tax position definition
/A tax position is a position that an entity takes in a previously filed tax return or which it expects to take in a future tax return, which it uses to measure current or deferred income tax assets and liabilities. A tax position can yield a permanent reduction or deferral of income taxes payable.
Examples of Tax Positions
Examples of tax positions are the decision to not file a tax return, to shift income between tax jurisdictions, and to classify a transaction as tax-exempt.