Freddie Mac 2015 Annual Report Download - page 284

Financial Statements Notes to the Consolidated Financial Statements | Note 11
Freddie Mac 2015 Form 10-K 282
Accordingly, we concluded that it is more likely than not that our net deferred tax assets will be realized
and that a valuation allowance against our net deferred tax asset was not necessary at December 31,
2015.
UNRECOGNIZED TAX BENEFITS AND IRS EXAMINATIONS
We recognize a tax position taken or expected to be taken (and any associated interest and penalties) if it
is more likely than not that it will be sustained upon examination, including resolution of any related
appeals or litigation processes, based on the technical merits of the position. We measure the tax position
at the largest amount of benefit that is greater than 50% likely of being realized upon ultimate settlement.
We evaluated all income tax positions and determined that there were no uncertain tax positions that
required reserves as of December 31, 2015.
We finalized the stipulation of settled issues and closing agreement with the IRS for years 1998-2010
related to our tax accounting method for certain hedging transactions. A final decision was entered in U.S.
Tax Court in June 2015. We have accrued gross interest receivable of $65 million and $535 million as of
December 31, 2015 and 2014, respectively, related to payments on account with the IRS.