News › Weekly Alert Article
Uncertain Tax Positions - How Will This Impact Companies Disclosures
The IRS unveiled the final Schedule UTP and instructions on September 24, 2010, modifying many of its prior proposals. There is now a proposed regulation mandating the filing of a finalised schedule requiring certain corporations to file a disclosure of nearly all uncertain tax positions reported in the 2010 income tax return. Taxand US identifies the common questions companies may have when filing their tax disclosures for 2010.
Taxpayers no longer need to compute and disclose a value for each uncertainty, instead they will need to disclose their uncertainties in a way that ranks them from largest to smallest based on each uncertainty's relative reserve size, to all reported uncertainties for the year. This is just one of the changes to the filing of tax disclosures. The purpose of this article is not to explain how the schedule was born, nor to contrast and compare how it has evolved since its introduction in January 2010. Instead, this article will help companies focus on what they should be doing now -- not in the spring or summer of 2011 when they are in the midst of preparing the 2010 tax return.
Your Taxand contact for further queries is:
T. +1 206-664-8910