Method and system to evaluate and trade a liability for an uncertain tax position

摘要

Method and system to provide an exchange to enable trading of liability for uncertain tax positions between a taxpayer and a counterparty. The exchange provides risk assessments and operates as a market maker to consummate bids and acceptance thereof over a network. The method comprises obtaining over a network an indication of the valuation risk associated with the taxpayer's position; recalculating a risk profile of the tax position using weighting factors such as knowledge of tax laws, tax administrative department rulings, regulations, and court decisions; and providing the recalculated risk profile to counterparties who may place bids regarding the tax position in exchange for a proposed payment. The invention may also enable the taxpayer and counterparty to conclude a financial transaction concerning the tax position and the proposed payment. The invention is particularly directed to mitigating uncertainty regarding a taxpayer's FIN 48 tax position.