Requirement of a Statement Disclosing Uncertain Tax Positions, 54802-54804 [2010-22624]
Download as PDF
54802
Federal Register / Vol. 75, No. 174 / Thursday, September 9, 2010 / Proposed Rules
www.regulations.gov and following
comment submission instructions. All
comments must be submitted in
English, or if not, must be accompanied
by an English translation.
Sebastian Pujol Schott, Associate
Deputy Director, Market Compliance,
202–418–5641, or Cody J. Alvarez,
Attorney Advisor, 202–418–5404,
Division of Market Oversight,
Commodity Futures Trading
Commission, Three Lafayette Centre,
1155 21st Street, NW., Washington, DC
20581.
On July
19, 2010, the Commission published for
public comment a NPRM, where it
proposed to collect certain ownership
and control information via an account
‘‘Ownership and Control Report’’
submitted weekly by all U.S. futures
exchanges and other reporting entities.
The NPRM established a 60-day period
for submitting public comment, ending
September 17, 2010. On September 16,
2010, Commission staff intends to hold
a public roundtable meeting at which
invited participants will discuss issues
arising from the Commission’s NPRM.
Shortly after the public roundtable
meeting, a transcript of the meeting will
be published on the Commission’s
Account Ownership and Control Report
public comment page at https://
www.cftc.gov/LawRegulation/
PublicComments/10-009.html. In order
to give interested parties time to prepare
comments on matters that were
discussed at the public roundtable
meeting, the Commission has
determined to extend the comment
period for the NPRM by an additional
twenty days to October 7, 2010.
SUPPLEMENTARY INFORMATION:
Issued in Washington, DC on September 1,
2010 by the Commission.
David A. Stawick,
Secretary of the Commission.
[FR Doc. 2010–22398 Filed 9–8–10; 8:45 am]
BILLING CODE P
COMMODITY FUTURES TRADING
COMMISSION
mstockstill on DSKH9S0YB1PROD with PROPOSALS
17 CFR Part 16
Account Ownership and Control
Report; Notice of Public Meeting
AGENCY HOLDING THE MEETING:
Commodity Futures Trading
Commission (‘‘Commission’’).
VerDate Mar<15>2010
16:58 Sep 08, 2010
Jkt 220001
Background
This document contains proposed
amendments to the Income Tax
Regulations (26 CFR part 1) under
section 6012 relating to the returns of
income corporations are required to file.
Section 6011 provides that persons
liable for a tax imposed by Title 26 shall
[FR Doc. 2010–22400 Filed 9–8–10; 8:45 am]
Thursday, September 16,
2010, commencing at 1 p.m. and ending
at 4:30 p.m.
DATE AND TIME:
DEPARTMENT OF THE TREASURY
Issued in Washington, DC, on September 1,
2010 by the Commission.
David A. Stawick,
Secretary of the Commission.
FOR FURTHER INFORMATION CONTACT:
Three Lafayette Centre, 1155 21st
Street, NW., Washington, DC, Lobby
Level Hearing Room (Room 1000).
STATUS: Open.
MATTERS TO BE CONSIDERED: Agenda: (1)
Sources of Ownership and Control
Report Data; and (2) Implementation of
the Ownership and Control Report.
SUPPLEMENTARY INFORMATION: Notice is
hereby given that Commission staff will
hold a public roundtable meeting at
which invited participants will discuss
issues arising from the Commission’s
notice of proposed rulemaking that calls
for the collection of ownership, control
and related information for all trading
accounts active on U.S. futures
exchanges and other reporting entities.1
Written comments on the proposed rule
will be received until October 7, 2010.
The meeting will be open to the public
with seating on a first-come, first-served
basis. Members of the public may also
listen by telephone. Call-in participants
should be prepared to provide their first
name, last name, and affiliation. The
information for the conference call is set
forth below.
• U.S./Canada Toll-Free: (866) 312–
4390
• International Toll: (404) 537–3379
• Conference ID: 94281936
Shortly after the public roundtable
meeting, a transcript of the meeting will
be published on the Commission’s
Account Ownership and Control Report
public comment page at https://www.
cftc.gov/LawRegulation/Public
Comments/10–009.html.
CONTACT PERSONS AND ADDRESSES:
Written comments should be sent to
David Stawick, Secretary, Commodity
Futures Trading Commission, Three
Lafayette Centre, 1155 21st Street, NW.,
Washington, DC 20581. Comments may
be submitted via e-mail at
OCR@cftc.gov. ‘‘Account Ownership and
Control Report’’ must be in the subject
field of responses submitted via e-mail,
and clearly indicated on written
submissions. Comments may also be
submitted by connecting to the Federal
eRulemaking Portal at https://
www.regulations.gov and following
comment submission instructions. All
comments must be submitted in
English, or if not, must be accompanied
by an English translation. For questions,
please contact Sauntia Warfield, 202–
418–5084.
PLACE:
BILLING CODE P
1 75
PO 00000
FR 41775 (July 19, 2010).
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Internal Revenue Service
26 CFR Part 1
[REG–119046–10]
RIN 1545–BJ54
Requirement of a Statement Disclosing
Uncertain Tax Positions
Internal Revenue Service (IRS),
Treasury.
ACTION: Notice of proposed rulemaking
and notice of public hearing.
AGENCY:
This document contains
proposed regulations allowing the IRS
to require corporations to file a schedule
disclosing uncertain tax positions
related to the tax return as required by
the IRS. This document also provides
notice of a public hearing on these
proposed regulations.
DATES: Written or electronic comments
must be received by October 12, 2010.
Outlines of topics to be discussed at the
public hearing scheduled for October
15, 2010, at 10 a.m., must be received
by October 12, 2010.
ADDRESSES: Send submissions to:
CC:PA:LPD:PR (REG–119046–10), room
5205, Internal Revenue Service, P.O.
Box 7604, Ben Franklin Station,
Washington, DC 20044. Submissions
may be hand-delivered Monday through
Friday between the hours of 8 a.m. and
4 p.m. to: CC:PA:LPD:PR (REG–119046–
10), Courier’s Desk, Internal Revenue
Service, 1111 Constitution Avenue,
NW., Washington, DC, or sent
electronically via the Federal
eRulemaking Portal at https://
www.regulations.gov (IRS REG–119046–
10). The public hearing will be held in
the IRS Auditorium, Internal Revenue
Building, 1111 Constitution Avenue,
NW., Washington, DC.
FOR FURTHER INFORMATION CONTACT:
Concerning the proposed regulations,
Kathryn Zuba at (202) 622–3400;
concerning submissions of comments,
the public hearing, and to be placed on
the building access list to attend the
public hearing, Oluwafunmilayo Taylor
of the Publications and Regulations
Branch at (202) 622–7180 (not toll-free
numbers).
SUPPLEMENTARY INFORMATION:
SUMMARY:
E:\FR\FM\09SEP1.SGM
09SEP1
mstockstill on DSKH9S0YB1PROD with PROPOSALS
Federal Register / Vol. 75, No. 174 / Thursday, September 9, 2010 / Proposed Rules
make a return when required by
regulations prescribed by the Secretary
of the Treasury according to the forms
and regulations prescribed by the
Secretary. Treasury Regulation
§ 1.6011–1 requires every person liable
for income tax to make such returns as
are required by regulation. Section 6012
requires corporations subject to an
income tax to make a return with
respect to that tax. Treasury Regulation
§ 1.6012–2 sets out the corporations that
are required to file returns and the form
those returns must take.
In Announcement 2010–9, 2010–7
I.R.B. 408, and Announcement 2010–17,
2010–13 I.R.B. 515, the IRS announced
it was developing a schedule requiring
certain taxpayers to report uncertain tax
positions on their tax returns. The IRS
released the draft schedule, Schedule
UTP, accompanied by draft instructions
that provide a further explanation of the
IRS’s proposal in conjunction with
Announcement 2010–30, IRB 2010–19.
That announcement invited public
comment by June 1, 2010, on the draft
schedule and instructions, which would
be finalized after the IRS received and
considered the comments regarding the
overall proposal and the draft schedule
and instructions.
The draft schedule and instructions
provide that, beginning with the 2010
tax year, certain corporations with both
uncertain tax positions and assets equal
to or exceeding $10 million will be
required to file Schedule UTP if they or
a related party issued audited financial
statements. The draft schedule and
instructions stated that, for 2010 tax
years, the IRS will require corporations
filing the following returns to file
Schedule UTP: Form 1120, U.S.
Corporation Income Tax Return; Form
1120 L, U.S. Life Insurance Company
Income Tax Return; Form 1120 PC, U.S.
Property and Casualty Insurance
Company Income Tax Return; and Form
1120 F, U.S. Income Tax Return of a
Foreign Corporation. The draft schedule
and instructions do not require a
Schedule UTP from any other Form
1120 series filers, pass-through entities,
or tax-exempt organizations in 2010 tax
years.
A substantial number of public
comments have been received regarding
the draft schedule. The IRS and
Treasury Department are currently
reviewing the comments and anticipate
publishing a final Schedule UTP in
sufficient time to allow taxpayers to
comply with the proposed effective date
of these regulations.
Explanation of Provisions
These proposed regulations require
corporations to file a Schedule UTP
VerDate Mar<15>2010
16:58 Sep 08, 2010
Jkt 220001
consistent with the forms, instructions,
and other appropriate guidance
provided by the IRS. As explained in
Announcement 2010–9, the United
States federal income tax system relies
on taxpayers to make a self-assessment
of tax and to file returns that show the
facts upon which tax liability may be
determined and assessed. Section
601.103 of the Procedure and
Administration Regulations. To
discharge its obligation to fairly and
uniformly administer the tax laws, the
IRS must be able to quickly and
efficiently identify those returns, and
the issues underlying those returns, that
present a significant risk of
noncompliance with the Internal
Revenue Code.
Existing corporate tax returns do not
currently require that taxpayers
separately identify and explain the
uncertain tax positions that are
identified in the process of complying
with generally accepted accounting
principles. Instead, to identify uncertain
tax positions the IRS must select a
return for audit and expend a
substantial amount of effort by revenue
agents to determine what uncertain tax
positions might relate to the return.
Corporations that prepare financial
statements are required by generally
accepted accounting principles to
identify and quantify all uncertain tax
positions as described in Financial
Accounting Standards Board,
Interpretation No. 48, Accounting for
Uncertainty in Income Taxes (June
2006) (FIN 48). FIN 48 is now codified
in FASB ASC Topic 740–10 Income
Taxes. Income Taxes, Accounting
Standards Codification Subtopic 740–10
(Fin. Accounting Standards Bd. 2010).
Other corporations that file returns of
income in the United States may be
subject to other requirements regarding
accounting for uncertain tax positions.
For example, corporations may be
subject to other generally accepted
accounting standards, including
International Financial Reporting
Standards and country-specific
generally accepted accounting
standards.
Congress, through the Internal
Revenue Code, has given the IRS broad
authority and discretion to specify the
form and content of returns, so long as
the IRS promulgates regulations
requiring persons made liable for a tax
to file those returns. This regulation will
authorize the IRS to require certain
corporations, as set out in forms,
publications, or instructions, or other
guidance, to provide information
concerning uncertain tax positions
concurrent with the filing of a return.
This information will aid the IRS in
PO 00000
Frm 00010
Fmt 4702
Sfmt 4702
54803
identifying those returns that pose the
most significant risks of noncompliance
and in selecting issues for examination.
The IRS intends to implement the
authority provided in this regulation
initially by issuing a schedule and
explanatory publication that require
those corporations that prepare audited
financial statements to file a schedule
identifying and describing the uncertain
tax positions, as described in FIN 48
and other generally accepted accounting
standards, that relate to the tax liability
reported on the return.
Proposed Effective/Applicability Date
When adopted as a final regulation,
this rule will apply to returns filed for
tax years beginning after December 15,
2009, and ending after the date of
publication of these rules as final
regulations in the Federal Register.
Special Analyses
It has been determined that this notice
of proposed rulemaking is not a
significant regulatory action as defined
in Executive Order 12866. Therefore, a
regulatory assessment is not required.
This regulation will only affect
taxpayers that prepare or are required to
issue audited financial statements.
Small entities rarely prepare or are
required to issue audited financial
statements due to the expense involved.
It is hereby certified that this regulation
will not have a significant economic
impact on a substantial number of small
entities pursuant to the Regulatory
Flexibility Act (5 U.S.C. chapter 6).
Accordingly, a regulatory flexibility
analysis is not required.
Pursuant to section 7805(f) of the
Internal Revenue Code, this notice of
proposed rulemaking will be submitted
to the Chief Counsel for Advocacy of the
Small Business Administration for
comment on their impact on small
business.
Comments and Requests for a Public
Hearing
Before these proposed regulations are
adopted as final regulations,
consideration will be given to any
written (a signed original and eight (8)
copies) or electronic comments that are
submitted timely to the IRS. The IRS
and the Treasury Department request
comments on the substance of the
proposed regulations, as well as on the
clarity of the proposed rules and how
they can be made easier to understand.
All comments submitted by the public
will be made available for public
inspection and copying. A public
hearing has been scheduled for October
15, 2010, beginning at 10 a.m. in the IRS
Auditorium, of the Internal Revenue
E:\FR\FM\09SEP1.SGM
09SEP1
54804
Federal Register / Vol. 75, No. 174 / Thursday, September 9, 2010 / Proposed Rules
Building, 1111 Constitution Avenue,
NW., Washington, DC. Due to building
security procedures, visitors must enter
at the Constitution Avenue entrance. In
addition, all visitors must present photo
identifications to enter the building.
Because of access restrictions, visitors
will not be admitted beyond the
immediate entrance area more than 30
minutes before the hearing starts. For
information about having your name
placed on the building access list to
attend the hearing, see the FOR FURTHER
INFORMATION CONTACT section of this
preamble.
The rules of 26 CFR 601.601(a)(3)
apply to the hearing. Persons who wish
to present oral comments at the hearing
must submit electronic or written
comments and an outline of the topics
to be discussed and the time to be
devoted to each topic (signed original
and eight (8) copies) by October 12,
2010. A period of 10 minutes will be
allotted to each person for making
comments. An agenda showing the
scheduling of the speakers will be
prepared after the deadline for receiving
outlines has passed. Copies of the
agenda will be available free of charge
at the hearing.
Drafting Information
List of Subjects in 26 CFR Part 1
Income taxes, Reporting and
recordkeeping requirements.
Proposed Amendments to the
Regulations
Accordingly, 26 CFR part 1 is
proposed to be amended as follows:
PART 1—INCOME TAXES
Paragraph 1. The authority citation
for part 1 is amended by adding an entry
in numerical order to read as follows:
Authority: 26 U.S.C. 7805 * * *
Section 1.6012–2 is also issued under the
authority of 26 U.S.C. 6011 and 6012.
mstockstill on DSKH9S0YB1PROD with PROPOSALS
Par. 2. Section 1.6012–2 is amended
by adding paragraphs (a)(4) and (a)(5) to
read as follows:
§ 1.6012–2 Corporations required to make
returns of income.
(a) * * *
(4) Disclosure of uncertain tax
positions. A corporation required to
make a return under this section shall
attach Schedule UTP, Uncertain Tax
Position Statement, or any successor
form, to such return, in accordance with
16:58 Sep 08, 2010
Steven T. Miller,
Deputy Commissioner for Services and
Enforcement.
[FR Doc. 2010–22624 Filed 9–7–10; 4:15 pm]
BILLING CODE 4830–01–P
DEPARTMENT OF LABOR
Mine Safety and Health Administration
30 CFR Chapter I
RIN 1219–AB71
Safety and Health Management
Programs for Mines
Mine Safety and Health
Administration, Labor.
ACTION: Notice of public meetings;
notice of close of comment period.
AGENCY:
The Mine Safety and Health
Administration (MSHA) will hold three
public meetings to gather information
about effective, comprehensive safety
and health management programs at
mines. Public meetings will include
presentations on model programs by
representatives from: Academia; safety
and health professionals; industry
organizations; worker organizations; and
government agencies. Model programs
should be designed to prevent injuries
and illnesses, maintain compliance with
the Federal Mine Safety and Health Act,
safety and health standards and
regulations, and include participation of
everyone from the Chief Executive
Officer (CEO) to workers and
contractors. Model programs should
involve hazard identification and
control and training and retraining of
workers. The Agency will use
information from the meetings to help
develop a proposed rule for Safety and
Health Management Programs for mines
which will allow miners and operators
to be proactive in their approach to
health and safety.
DATES: All comments must be received
by midnight Eastern Standard Time on
December 17, 2010. MSHA will hold
three meetings on October 8, 2010,
October 12, 2010, and October 14, 2010
at the locations listed in the
SUPPLEMENTARY INFORMATION section of
this notice.
SUMMARY:
The principal author of these
regulations is Kathryn Zuba of the
Office of the Associate Chief Counsel
(Procedure and Administration).
VerDate Mar<15>2010
forms, instructions, or other appropriate
guidance provided by the IRS.
(5) Effective/applicability date.
Paragraph (a)(4) of this section applies
to returns filed for tax years beginning
after December 15, 2009, and ending
after the date of publication of the
adoption of these rules as final
regulations in the Federal Register.
*
*
*
*
*
Jkt 220001
PO 00000
Frm 00011
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Comments must be
identified with ‘‘RIN 1219–AB71’’ and
may be sent by any of the following
methods:
(1) Federal e-Rulemaking Portal:
https://www.regulations.gov. Follow the
instructions for submitting comments.
(2) Electronic mail: zzMSHAcomments@dol.gov. Include ‘‘RIN 1219–
AB71’’ in the subject line of the message.
(3) Facsimile: 202–693–9441. Include
‘‘RIN 1219–AB71’’ in the subject line of
the message.
(4) Regular Mail: MSHA, Office of
Standards, Regulations, and Variances,
1100 Wilson Boulevard, Room 2350,
Arlington, Virginia 22209–3939.
(5) Hand Delivery or Courier: MSHA,
Office of Standards, Regulations, and
Variances, 1100 Wilson Boulevard,
Room 2350, Arlington, Virginia. Sign in
at the receptionist’s desk on the 21st
floor.
Comments can be accessed
electronically at https://www.msha.gov
under the Rules and Regs link.
Comments may also be reviewed at
the Office of Standards, Regulations,
and Variances, 1100 Wilson Boulevard,
Room 2350, Arlington, Virginia. Sign in
at the receptionist’s desk on the 21st
floor.
MSHA maintains a list that enables
subscribers to receive e-mail notification
when rulemaking documents are
published in the Federal Register. To
subscribe, go to https://www.msha.gov/
subscriptions/subscribe.aspx.
FOR FURTHER INFORMATION CONTACT:
Patricia W. Silvey, Director, Office of
Standards, Regulations, and Variances,
MSHA, at silvey.patricia@dol.gov (email), 202–693–9440 (voice), or 202–
693–9441 (facsimile).
SUPPLEMENTARY INFORMATION: All
meetings will start at 9 a.m. and
conclude by 5 p.m. The agenda for the
meetings will include:
• Registration,
• Opening Statement,
• Presentations,
• Comments from the Public, and
• Closing Statement.
MSHA requested academia, safety and
health professionals, industry
organizations, worker organizations, and
government agencies to present
information at these meetings on best
practices for safety and health programs.
MSHA is particularly interested in
information on programs which include
active involvement of workers from the
development of the program through
implementation to evaluation. Requests
to present at a meeting may be made by
telephone (202–693–9440), facsimile
(202–693–9441), or mail (MSHA, Office
of Standards, Regulations and
ADDRESSES:
E:\FR\FM\09SEP1.SGM
09SEP1
Agencies
[Federal Register Volume 75, Number 174 (Thursday, September 9, 2010)]
[Proposed Rules]
[Pages 54802-54804]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2010-22624]
=======================================================================
-----------------------------------------------------------------------
DEPARTMENT OF THE TREASURY
Internal Revenue Service
26 CFR Part 1
[REG-119046-10]
RIN 1545-BJ54
Requirement of a Statement Disclosing Uncertain Tax Positions
AGENCY: Internal Revenue Service (IRS), Treasury.
ACTION: Notice of proposed rulemaking and notice of public hearing.
-----------------------------------------------------------------------
SUMMARY: This document contains proposed regulations allowing the IRS
to require corporations to file a schedule disclosing uncertain tax
positions related to the tax return as required by the IRS. This
document also provides notice of a public hearing on these proposed
regulations.
DATES: Written or electronic comments must be received by October 12,
2010. Outlines of topics to be discussed at the public hearing
scheduled for October 15, 2010, at 10 a.m., must be received by October
12, 2010.
ADDRESSES: Send submissions to: CC:PA:LPD:PR (REG-119046-10), room
5205, Internal Revenue Service, P.O. Box 7604, Ben Franklin Station,
Washington, DC 20044. Submissions may be hand-delivered Monday through
Friday between the hours of 8 a.m. and 4 p.m. to: CC:PA:LPD:PR (REG-
119046-10), Courier's Desk, Internal Revenue Service, 1111 Constitution
Avenue, NW., Washington, DC, or sent electronically via the Federal
eRulemaking Portal at https://www.regulations.gov (IRS REG-119046-10).
The public hearing will be held in the IRS Auditorium, Internal Revenue
Building, 1111 Constitution Avenue, NW., Washington, DC.
FOR FURTHER INFORMATION CONTACT: Concerning the proposed regulations,
Kathryn Zuba at (202) 622-3400; concerning submissions of comments, the
public hearing, and to be placed on the building access list to attend
the public hearing, Oluwafunmilayo Taylor of the Publications and
Regulations Branch at (202) 622-7180 (not toll-free numbers).
SUPPLEMENTARY INFORMATION:
Background
This document contains proposed amendments to the Income Tax
Regulations (26 CFR part 1) under section 6012 relating to the returns
of income corporations are required to file. Section 6011 provides that
persons liable for a tax imposed by Title 26 shall
[[Page 54803]]
make a return when required by regulations prescribed by the Secretary
of the Treasury according to the forms and regulations prescribed by
the Secretary. Treasury Regulation Sec. 1.6011-1 requires every person
liable for income tax to make such returns as are required by
regulation. Section 6012 requires corporations subject to an income tax
to make a return with respect to that tax. Treasury Regulation Sec.
1.6012-2 sets out the corporations that are required to file returns
and the form those returns must take.
In Announcement 2010-9, 2010-7 I.R.B. 408, and Announcement 2010-
17, 2010-13 I.R.B. 515, the IRS announced it was developing a schedule
requiring certain taxpayers to report uncertain tax positions on their
tax returns. The IRS released the draft schedule, Schedule UTP,
accompanied by draft instructions that provide a further explanation of
the IRS's proposal in conjunction with Announcement 2010-30, IRB 2010-
19. That announcement invited public comment by June 1, 2010, on the
draft schedule and instructions, which would be finalized after the IRS
received and considered the comments regarding the overall proposal and
the draft schedule and instructions.
The draft schedule and instructions provide that, beginning with
the 2010 tax year, certain corporations with both uncertain tax
positions and assets equal to or exceeding $10 million will be required
to file Schedule UTP if they or a related party issued audited
financial statements. The draft schedule and instructions stated that,
for 2010 tax years, the IRS will require corporations filing the
following returns to file Schedule UTP: Form 1120, U.S. Corporation
Income Tax Return; Form 1120 L, U.S. Life Insurance Company Income Tax
Return; Form 1120 PC, U.S. Property and Casualty Insurance Company
Income Tax Return; and Form 1120 F, U.S. Income Tax Return of a Foreign
Corporation. The draft schedule and instructions do not require a
Schedule UTP from any other Form 1120 series filers, pass-through
entities, or tax-exempt organizations in 2010 tax years.
A substantial number of public comments have been received
regarding the draft schedule. The IRS and Treasury Department are
currently reviewing the comments and anticipate publishing a final
Schedule UTP in sufficient time to allow taxpayers to comply with the
proposed effective date of these regulations.
Explanation of Provisions
These proposed regulations require corporations to file a Schedule
UTP consistent with the forms, instructions, and other appropriate
guidance provided by the IRS. As explained in Announcement 2010-9, the
United States federal income tax system relies on taxpayers to make a
self-assessment of tax and to file returns that show the facts upon
which tax liability may be determined and assessed. Section 601.103 of
the Procedure and Administration Regulations. To discharge its
obligation to fairly and uniformly administer the tax laws, the IRS
must be able to quickly and efficiently identify those returns, and the
issues underlying those returns, that present a significant risk of
noncompliance with the Internal Revenue Code.
Existing corporate tax returns do not currently require that
taxpayers separately identify and explain the uncertain tax positions
that are identified in the process of complying with generally accepted
accounting principles. Instead, to identify uncertain tax positions the
IRS must select a return for audit and expend a substantial amount of
effort by revenue agents to determine what uncertain tax positions
might relate to the return.
Corporations that prepare financial statements are required by
generally accepted accounting principles to identify and quantify all
uncertain tax positions as described in Financial Accounting Standards
Board, Interpretation No. 48, Accounting for Uncertainty in Income
Taxes (June 2006) (FIN 48). FIN 48 is now codified in FASB ASC Topic
740-10 Income Taxes. Income Taxes, Accounting Standards Codification
Subtopic 740-10 (Fin. Accounting Standards Bd. 2010). Other
corporations that file returns of income in the United States may be
subject to other requirements regarding accounting for uncertain tax
positions. For example, corporations may be subject to other generally
accepted accounting standards, including International Financial
Reporting Standards and country-specific generally accepted accounting
standards.
Congress, through the Internal Revenue Code, has given the IRS
broad authority and discretion to specify the form and content of
returns, so long as the IRS promulgates regulations requiring persons
made liable for a tax to file those returns. This regulation will
authorize the IRS to require certain corporations, as set out in forms,
publications, or instructions, or other guidance, to provide
information concerning uncertain tax positions concurrent with the
filing of a return. This information will aid the IRS in identifying
those returns that pose the most significant risks of noncompliance and
in selecting issues for examination. The IRS intends to implement the
authority provided in this regulation initially by issuing a schedule
and explanatory publication that require those corporations that
prepare audited financial statements to file a schedule identifying and
describing the uncertain tax positions, as described in FIN 48 and
other generally accepted accounting standards, that relate to the tax
liability reported on the return.
Proposed Effective/Applicability Date
When adopted as a final regulation, this rule will apply to returns
filed for tax years beginning after December 15, 2009, and ending after
the date of publication of these rules as final regulations in the
Federal Register.
Special Analyses
It has been determined that this notice of proposed rulemaking is
not a significant regulatory action as defined in Executive Order
12866. Therefore, a regulatory assessment is not required.
This regulation will only affect taxpayers that prepare or are
required to issue audited financial statements. Small entities rarely
prepare or are required to issue audited financial statements due to
the expense involved. It is hereby certified that this regulation will
not have a significant economic impact on a substantial number of small
entities pursuant to the Regulatory Flexibility Act (5 U.S.C. chapter
6). Accordingly, a regulatory flexibility analysis is not required.
Pursuant to section 7805(f) of the Internal Revenue Code, this
notice of proposed rulemaking will be submitted to the Chief Counsel
for Advocacy of the Small Business Administration for comment on their
impact on small business.
Comments and Requests for a Public Hearing
Before these proposed regulations are adopted as final regulations,
consideration will be given to any written (a signed original and eight
(8) copies) or electronic comments that are submitted timely to the
IRS. The IRS and the Treasury Department request comments on the
substance of the proposed regulations, as well as on the clarity of the
proposed rules and how they can be made easier to understand. All
comments submitted by the public will be made available for public
inspection and copying. A public hearing has been scheduled for October
15, 2010, beginning at 10 a.m. in the IRS Auditorium, of the Internal
Revenue
[[Page 54804]]
Building, 1111 Constitution Avenue, NW., Washington, DC. Due to
building security procedures, visitors must enter at the Constitution
Avenue entrance. In addition, all visitors must present photo
identifications to enter the building. Because of access restrictions,
visitors will not be admitted beyond the immediate entrance area more
than 30 minutes before the hearing starts. For information about having
your name placed on the building access list to attend the hearing, see
the FOR FURTHER INFORMATION CONTACT section of this preamble.
The rules of 26 CFR 601.601(a)(3) apply to the hearing. Persons who
wish to present oral comments at the hearing must submit electronic or
written comments and an outline of the topics to be discussed and the
time to be devoted to each topic (signed original and eight (8) copies)
by October 12, 2010. A period of 10 minutes will be allotted to each
person for making comments. An agenda showing the scheduling of the
speakers will be prepared after the deadline for receiving outlines has
passed. Copies of the agenda will be available free of charge at the
hearing.
Drafting Information
The principal author of these regulations is Kathryn Zuba of the
Office of the Associate Chief Counsel (Procedure and Administration).
List of Subjects in 26 CFR Part 1
Income taxes, Reporting and recordkeeping requirements.
Proposed Amendments to the Regulations
Accordingly, 26 CFR part 1 is proposed to be amended as follows:
PART 1--INCOME TAXES
Paragraph 1. The authority citation for part 1 is amended by adding
an entry in numerical order to read as follows:
Authority: 26 U.S.C. 7805 * * *
Section 1.6012-2 is also issued under the authority of 26 U.S.C.
6011 and 6012.
Par. 2. Section 1.6012-2 is amended by adding paragraphs (a)(4) and
(a)(5) to read as follows:
Sec. 1.6012-2 Corporations required to make returns of income.
(a) * * *
(4) Disclosure of uncertain tax positions. A corporation required
to make a return under this section shall attach Schedule UTP,
Uncertain Tax Position Statement, or any successor form, to such
return, in accordance with forms, instructions, or other appropriate
guidance provided by the IRS.
(5) Effective/applicability date. Paragraph (a)(4) of this section
applies to returns filed for tax years beginning after December 15,
2009, and ending after the date of publication of the adoption of these
rules as final regulations in the Federal Register.
* * * * *
Steven T. Miller,
Deputy Commissioner for Services and Enforcement.
[FR Doc. 2010-22624 Filed 9-7-10; 4:15 pm]
BILLING CODE 4830-01-P