See "
Judging the Yorkshire Terrier by Dr. E. Carolyn Hensley."
In particular, note the statement, "Do not forget that under FCI rules a Yorkie tail is no longer docked; however, there has been no statement made as to how the natural tail should be carried. Under AKC governance, a judge has the full option of dismissing or of judging a dog with a natural tail and will be supported."
Hope this helps. --KatysMom