Failing Corporate Tax Transparency and the Immediate Need to Reduce Overburdening Duplicative Tax Reporting Requirements

Akron Law Tax Journal, 2012

34 Pages Posted: 10 Mar 2014

Date Written: March 9, 2012

Abstract

In the last decade the Internal Revenue Service has promulgated multiple mandatory tax disclosure requirements for the corporate taxpayers. Mandatory disclosures of the Listed Transactions, Schedule M-3, and now Schedule UTP have resulted in duplicative reporting requirements. The same duplicative issue exists in additional forms that are electively filed by taxpayers or tax practitioners to avoid penalties. This duplicity creates uncertainty as to reporting procedure, unnecessarily increases compliance costs, and presents a novel tax issue that may lead to litigation of whether required information was properly disclosed. This article reports on an investigation of key current disclosure corporate tax requirements mandated by the Service, identifies duplicative reporting patterns, and proposes viable solutions which should decrease taxpayers’ tax compliance costs while increasing transparency and efficiency of the compulsory tax disclosure reporting.

Keywords: Schedule UTP, Schedule M-3, Mandatory Disclosures, IRS Reporting Requirements, Transparency.

Suggested Citation

Lipin, Ilya A., Failing Corporate Tax Transparency and the Immediate Need to Reduce Overburdening Duplicative Tax Reporting Requirements (March 9, 2012). Akron Law Tax Journal, 2012, Available at SSRN: https://ssrn.com/abstract=2406579

Ilya A. Lipin (Contact Author)

PriceWaterhouseCoopers LLP ( email )

1301 Avenue of the Americas
New York, NY 10019
United States

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