June 2010

AICPA Submits Comments on IRS Uncertain Tax Position Proposal

From Journal of Accountancy.

On June 1, the AICPA submitted comments to the IRS on the Service’s proposal to require certain business taxpayers to disclose their uncertain tax positions on their tax returns. The comments raise concerns the AICPA has with the proposal and make several recommendations to the IRS. In its comments, the AICPA urges the IRS to withdraw the proposal and focus on existing disclosure mechanisms that already supply information to the Service. However, if it does move forward with the proposal, the AICPA encourages the IRS to change its proposal so that fewer taxpayers are affected and to rethink its most burdensome aspects.

Background
On Jan. 26, the IRS announced it plans to make changes to how certain business taxpayers report uncertain tax positions (Announcement 2010-9). Under the proposal, business taxpayers with total assets of more than $10 million will be required to file new Schedule UTP, Uncertain Tax Position Statement, if they have one or more uncertain tax positions.

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