Client Alert
| March 23, 2011
IRS Releases “Frequently Asked Questions” on Schedule UTP
On March 23, 2011, the Internal Revenue Service (“IRS”) released frequently asked questions (“FAQs”) on its website regarding Schedule UTP, “Uncertain Tax Position Statement.” Schedule UTP is applicable to the 2010 tax year for corporations with total assets equal to or exceeding $100 million and requires the reporting of each US federal income tax position taken by an applicable corporation on its US federal tax return if the position is an “uncertain tax position.” A position is an “uncertain tax position” if (1) the corporation has taken a tax position on its US federal income tax return for the current year or a prior year and (2) either the corporation or a related party has recorded a reserve with respect to that tax position for US federal income tax purposes in audited financial statements, or the corporation or related party did not record a reserve for that tax position because the corporation expects to litigate the position.
This memorandum is intended only as a general discussion of these issues. It is not considered to be legal advice. We would be pleased to provide additional details or advice about specific situations. For additional information on this important topic, please feel free to call upon your Dewey & LeBoeuf relationship partner. No part of this publication may be reproduced, in whole or in part, in any form, without our prior written consent.
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