Global Tax Adviser
February 2010

IRS to Require Detailed Reporting of Uncertain Tax Positions

Derrick Novis
International Tax, Toronto

Alex Feness
International Tax, Toronto

The IRS is developing a schedule to require certain businesses to report uncertain tax positions, as determined under GAAP or IFRS, on their US income tax returns. Under the new schedule, business taxpayers with total assets over US $10 million and reporting one or more uncertain tax positions must annually file a concise description of these positions and their magnitude. According to the IRS Commissioner, the new rules would not apply for the 2009 tax year.

The IRS also said it was evaluating additional options for penalties or sanctions for inadequate disclosure of uncertain tax positions, including a penalty for failure to file the schedule.

The IRS notes that it will otherwise retain its existing policy of restraint for tax accrual working papers requests. Comments on the proposed schedule should be filed by March 29, 2010.

For more information, contact your KPMG Tax adviser.

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