IRS Announces It Will Require the Disclosure of Uncertain Tax Positions


In a speech today before the New York State Bar Association, IRS Commissioner Douglas Shulman announced that, for certain corporations and other business taxpayers, it will require disclosure of uncertain tax positions on tax returns, but that it is otherwise retaining its policy of restraint on requesting tax accrual workpapers. In Announcement 2010-9 (Jan. 26, 2010), which was released contemporaneously with the text of the Commissioner’s speech, the IRS stated that the new requirement would apply to corporations and other business taxpayers who have assets of more than $10 million and who prepare (or are included in) financial statements for which U.S. federal income tax reserves are determined under FIN 48 or other similar accounting standards.

Taxpayers impacted by the Announcement will be required to annually disclose uncertain tax positions with their tax returns. Uncertain tax positions include those for which a reserve must be established under FIN 48 or other accounting standards, as well as other positions related to the determination of any federal income tax liability for which a taxpayer (or a related entity under Internal Revenue Code § 267(b), 318(a) or 707(b)) has not recorded a tax reserve because: (1) the taxpayer expects to litigate the position; or (2) the taxpayer has determined that the IRS has a general administrative practice not to examine the position.

Please see full alert below for more information.

LOADING PDF: If there are any problems, click here to download the file.

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Sutherland Asbill & Brennan LLP | Attorney Advertising

Written by:


Sutherland Asbill & Brennan LLP on:

JD Supra Readers' Choice 2016 Awards
Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:

Sign up to create your digest using LinkedIn*

*By using the service, you signify your acceptance of JD Supra's Privacy Policy.

Already signed up? Log in here

*With LinkedIn, you don't need to create a separate login to manage your free JD Supra account, and we can make suggestions based on your needs and interests. We will not post anything on LinkedIn in your name. Or, sign up using your email address.