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Schedule UTP Guidance – Initial Observations

6 Pages Posted: 28 Sep 2010 Last revised: 1 Mar 2012

J. Richard (Dick) Harvey

Villanova University School of Law and Graduate Tax Program

Date Written: September 27, 2010

Abstract

In this article, the author discusses the IRS’s Schedule UTP guidance issued on September 24, 2010. He commends the IRS for the extensive guidance issued, and specifically expanding its policy of restraint. However, he believes several issues remain with the policy of restraint that may need to be considered by both corporations and the IRS. Specifically, the IRS may have been (i) too generous by not conditioning the expanded policy of restraint on adequate completion of Schedule UTP, and (ii) not generous enough by leaving opportunities for it to pursue tax reserves and tax opinions in certain cases.

In addition, the author raises several questions surrounding the IRS’s new reserve ranking approach – a substitute for the maximum tax adjustment disclosure previously proposed in draft Schedule UTP. The most important question is likely to be whether the IRS obtains the information necessary to meet its stated goal of prioritizing audit selection and selecting issues for audit.

Keywords: Schedule UTP, Tax Gap, Tax Accrual Workpapers, and Work-Product Doctrine

Suggested Citation

Harvey, J. Richard (Dick), Schedule UTP Guidance – Initial Observations (September 27, 2010). Tax Notes, p. 115, October 4, 2010; Villanova Law/Public Policy Research Paper No. 2010-17. Available at SSRN: https://ssrn.com/abstract=1683607

J. Richard Harvey (Contact Author)

Villanova University School of Law and Graduate Tax Program ( email )

299 N. Spring Mill Road
Villanova, PA 19085
United States
610-519-4474 (Phone)

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