Just saw this on Sunday Night Football with a friend of mine and he is vehement the officials made a mistake.

It was the first play from scrimmage for the Jaguars at about the 40-yard line. Fred Taylor received the handoff and took it to the house, however there was a holding call on the play. The touchdown was called back, however it remained 1st & 10, when he argues it should be 1st & 20.

Just looking for clarification: Did the officials make a mistake in not making it 1st & 20, or, is there some exception in the NFL rulebook verifying 1st & 10?

If it's a holding call, it is a spot foul. So if the holding was on the 50 then the ball would be spotted 10 yards from the spot of the foul, thus 1 and 10 from the 40.

This is also why you could end up with a 1st-2, 1st-5,... after a hold or similar foul by the offense.