A highly certain tax position is one in which the tax position is based on clear and unambiguous tax law and where it is more likely than not that (i.e., a greater than 50% probability) the position taken and the amount in question would be upheld if reviewed. An uncertain tax position also requires it to be more likely than not that the position will be sustained but there is less certainty about the amount that will be upheld.
A highly certain tax position and an uncertain tax position both require at least a 50% probability that the tax position will be sustained. The difference between a highly certain tax position and an uncertain tax position comes in assessing the probabilities associated with the various dollar outcomes.
In one page or less, discuss the probabilities associated with when an uncertain tax position becomes a highly certain tax position.