Regions Bank 2011 Annual Report Download - page 220

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with the IRS Appeals Division and it is anticipated that the matter will be concluded within the next 12 months.
The impact of the protest, whether successful or not, will not have a material impact on the Company’s business,
financial position, results of operations or cash flows. All federal tax years subsequent to the above years are
open to examination.
With few exceptions, the Company is no longer subject to state and local income tax examinations for tax
years before 2007. Currently, there are disputed tax positions taken in previously filed tax returns with certain
states, including positions regarding investment and intellectual property subsidiaries. The Company continues to
evaluate these positions and intends to defend proposed adjustments made by these tax authorities. The Company
does not anticipate that the ultimate resolution of these examinations will result in a material change to its
business, financial position, results of operations or cash flows.
As a result of the potential resolution of multiple state income tax examinations and the federal income
examination for the tax years 2007 through 2009, it is reasonably possible that the UTB balance could decrease
as much as $13 million during the next twelve months, since resolved items will be removed from the balance
whether their resolution results in payment or recognition in earnings.
As of December 31, 2011, 2010 and 2009, the balance of the Company’s UTBs that would reduce the
effective tax rate, if recognized, was $25 million, $24 million and $18 million, respectively. The remainder of the
UTB balance has indirect tax benefits in other jurisdictions or is the tax effect of temporary differences.
During 2011, 2010 and 2009, income tax expense (benefit) includes interest expense, interest income and
penalties related to income taxes, before the impact of any applicable federal and state deductions, of ($2)
million, $2 million and $5 million, respectively. As of December 31, 2011 and December 31, 2010, the Company
recognized a liability of $7 million and $10 million, respectively, for interest and penalties related to income
taxes, before the impact of any applicable federal and state deductions.
196