Uncertain Tax Positions
IRS Outlines Guidance for Disclosure of Uncertain Tax Positions
The IRS continues to move forward with a new requirement under which large corporations will soon need to start reporting uncertain tax positions (UTPs) directly on their tax returns using the new Schedule UTP . First announced in January , the new disclosure requirements came as a surprise to many in the accounting profession, and reports indicate that the IRS received a high volume of unfavorable comments related to the proposed rule. The IRS announced a number of significant changes to the new requirement late last month, and made public the final version of Schedule UTP and its instructions. The new requirement will be effective for. Read More.
UPDATE: IRS Extends Comments Period for Changes to Uncertain Positions Disclosure
After a January announcement that shocked many tax preparers and professionals , the IRS has announced an extension to the comment period for a proposal that would change reporting requirements for uncertain tax positions. The proposed changes would require a business with more than $10 million in assets to disclose any uncertain tax positions with a “few sentences” on the nature of each position. In response to the large number of requests, the comments period will continue until June 1st this year. After that time, the schedule will be implemented for both calendar year 2010 and fiscal years beginning in 2010. The IRS intends these changes to. Read More.
IRS Proposal Would Require Businesses to Report Uncertain Tax Positions Directly on Returns
IRS Commissioner Shulman shocked most tax preparers and professionals last week at a New York State Bar Association Tax Section Meeting when he proposed that businesses should be required to provide detailed information in their tax returns regarding uncertain tax positions taken on their returns. Under the Commissioner’s proposal , taxpayers would be required to provide a “few sentences” of information explaining the nature of each uncertain tax position, and taxpayers who fail to disclose these “uncertain tax positions” would be subject to significant penalties. If it sounds like the Commissioner is asking taxpayers to do the IRS’s job for them, you are at least partially right. The. Read More.