IRS's Uncertain Tax Positions
The IRS issued the final Schedule UTP and instructions that require corporations to report so-called "uncertain tax positions," or UTPs. The draft UTP instructions required all corporations that file Form 1120, 1120-F, 1120-L or 1120-PC with assets more than $10 million to file Schedule UTP. Corporations with assets more than $100 million must file the Schedule UTP for tax year 2010. This threshold for filing will be reduced to $50 million in assets in 2012 and $10 million in assets in 2014.
In conjunction with finalizing the schedule, the IRS released Announcement 2010-75, explaining the changes it made to the final Schedule UTP from the draft schedule and instructions. Additionally, the IRS issued Announcement 2010-76, which details the IRS's revisions to its policy of restraint with regard to seeking taxpayers' tax accrual workpapers during audit, as well as, an internal directive to the field which outlines the IRS' plan for treating uncertain tax positions.
Presentation Objectives:
- To gain a better understanding and filing requirements on Form 1120
- How to report and describe uncertain tax positions
- The impact of privilege and work product
- How to access impact outside of the United States
Upon completion of this webinar, participants will be able to:
- Report and describe uncertain tax positions for filing in 2010
- Identify what the IRS is looking for when reporting uncertain tax positions
- Provide planning techniques to reduce uncertainty and controversy
SPEAKER
Brian Trauman is a Tax Principal in KPMG’s Economic and Valuation Service practice, and is the U.S. East region leader for transfer pricing controversy services. Brian helps clients manage and resolve disputes and respond to the challenges that come with transfer pricing controversies, whether related to intercompany pricing between the U.S. and other countries or between U.S. states. Prior to joining KPMG, Brian was a partner with a multinational law firm, where he was responsible for assisting multinationals with a wide range of both U.S. and non-U.S. tax controversy and transfer pricing matters, including transfer pricing structures and supply chains, advance pricing agreements, mutual agreement procedures, documentation, intercompany agreements, and audits, appeals, and litigation. His clients include leading companies in such industries as the automotive, agricultural, chemical, finance, oil and gas, technology, and telecommunications sectors. Brian has responded to state, federal and foreign information document requests, liaised with exam teams, drafted protests to notices of proposed adjustments, presented cases to appeals teams, and participated on litigation teams. In addition, he has interacted with Congress, the IRS, Treasury, and the OECD for changes to Income Tax Code, Regulations, and other guidance. Brian also has served as an attorney-advisor with the U.S. Tax Court. Brian is a frequent speaker and writer on a wide range of transfer pricing and controversy topics, including the IRS’s Schedule for Uncertain Tax Positions, business restructurings, implementing the US services regulations, valuation of intangibles, choice of administrative and judicial forum, and advance rulings. These engagements include presentations and publications for ABA, BNA, OFII, IBFD, the United States Tax Court and other events. Brian has also guest lectured on transfer pricing topics for NYU’s LL.M. program, and for the Republic of Colombia’s international tax examiners.