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Schedule UTP – Two Major Issues

7 Pages Posted: 11 Mar 2011 Last revised: 30 Mar 2011

J. Richard (Dick) Harvey

Villanova University School of Law and Graduate Tax Program

Date Written: March 1, 2011

Abstract

Although Corporate America is not happy about Schedule UTP, most corporations seem resigned to the schedule’s existence and are now attempting to comply. In the process, Corporations have been addressing many technical questions, but two seem to be receiving the most attention: the definition of a “tax reserve”, and the application of the transition rule to pre-2010 NOL carryforwards.

The current definition of tax reserve is circular and it is not clear whether it includes certain scenarios (e.g., deferred tax reserves). The application of the transition rule is of significant importance to corporations that incurred NOL carryforwards during the recession from 2007 to 2009 and expect to utilize those carryforwards in 2010 and later years. The author addresses these two issues in depth and offers various alternative approaches.

Keywords: Schedule UTP, transparency, tax reserves, and NOL carryforwards

Suggested Citation

Harvey, J. Richard (Dick), Schedule UTP – Two Major Issues (March 1, 2011). Tax Notes, p. 1559, March 28, 2011; Villanova Law/Public Policy Research Paper No. 2011-03. Available at SSRN: https://ssrn.com/abstract=1782936

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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