Requirement of a Statement Disclosing Uncertain Tax Positions, 78160-78161 [2010-31576]

Download as PDF 78160 Federal Register / Vol. 75, No. 240 / Wednesday, December 15, 2010 / Rules and Regulations account, however, in determining the regular tax liability under section 53(c) for the election year. * * * * * (g) Effective/applicability date. This section applies for taxable years beginning after December 15, 2010. See the provisions of §§ 1.1301–1 and 1.1301–1T as in effect on December 14, 2010 for rules that apply for taxable years beginning on or before December 15, 2010. In addition, a taxpayer may apply paragraph (b)(1)(ii) of this section in taxable years beginning after December 31, 2003. § 1.1301–1T ■ [Removed] Par. 3. Section 1.1301–1T is removed. Linda E. Stiff, Deputy Commissioner for Services and Enforcement. Approved: December 7, 2010. Michael Mundaca, Assistant Secretary of the Treasury (Tax Policy). [FR Doc. 2010–31497 Filed 12–14–10; 8:45 am] BILLING CODE 4830–01–P DEPARTMENT OF THE TREASURY Internal Revenue Service 26 CFR Part 1 [TD 9510] RIN 1545–BJ54 Requirement of a Statement Disclosing Uncertain Tax Positions Internal Revenue Service (IRS), Treasury. ACTION: Final regulation. AGENCY: This document contains final 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. DATES: Effective date: This regulation is effective on December 15, 2010. Applicability date: For dates of applicability, see § 1.6012–2(a)(5). FOR FURTHER INFORMATION CONTACT: Kathryn Zuba at (202) 622–3400 (not a toll-free number). SUPPLEMENTARY INFORMATION: emcdonald on DSK2BSOYB1PROD with RULES SUMMARY: Background This document contains 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 make a return when VerDate Mar<15>2010 16:44 Dec 14, 2010 Jkt 223001 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 the returns 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. A proposed regulation under section 6012 (REG–119046–10) was published in the Federal Register on September 9, 2010. Requirement of a Statement Disclosing Uncertain Tax Positions, 75 FR 54802 (proposed Sept. 9, 2010). The IRS received one written comment concerning the proposed regulation, and a public hearing regarding the proposed regulation was held on October 19, 2010. Neither of the two speakers at the public hearing had comments relating to the proposed regulation, although both organizations the speakers represented had previously submitted written comments concerning the draft Schedule UTP and instructions. Announcement 2010–30, 2010–19 IRB 668. After considering the comments, the proposed regulation is adopted by this Treasury decision with one nonsubstantive change related to the effective date. While the proposed regulation applied to returns filed for tax years beginning after December 15, 2009 and ending after the date the regulations were published in the Federal Register, the final regulation applies to returns filed for tax years beginning on or after January 1, 2010. Explanation and Summary of Comments This rule will authorize the IRS to require certain corporations, as set out in forms, publications, instructions, or other guidance, to provide information concerning uncertain tax positions concurrent with the filing of a return. On September 24, 2010, the IRS released Schedule UTP with accompanying instructions that explain how the IRS plans to implement the authority provided by this regulation. One commentator asked that the proposed regulation not be adopted because Schedule UTP would require the disclosure of privileged information. If the regulation is adopted, the commentator recommended it should state that taxpayer may assert any applicable privileges to providing information sought by Schedule UTP and that any disclosure of information on that schedule will not constitute a waiver of any applicable privilege. PO 00000 Frm 00010 Fmt 4700 Sfmt 4700 The final regulation does not adopt this recommendation. The regulation addresses the IRS’s authority to require certain corporations to provide information concerning uncertain tax positions. The IRS has decided to require the filing of Schedule UTP based on its determination that the information about uncertain tax positions taken in a tax return required by the schedule is essential to achieving an effective and efficient self-assessment tax system. Provisions relating to the assertion of privilege are not included in this regulation, since it does not affect the existence of any applicable privileges taxpayers may have concerning information requested by a return or how they may assert those privileges. Special Analyses It has been determined that this final rule 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 5 U.S.C. 553(d)(3), it has been determined that there is good cause for the effective date of this final rule, which is less than 30 days after the date of publication. Pursuant to section 7805(f) of the Internal Revenue Code, the notice of proposed rulemaking preceding this regulation was submitted to the Chief Counsel for Advocacy of the Small Business Administration for comment on their impact on small business. 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. Adoption of Amendments to the Regulations Accordingly, 26 CFR part 1 is amended as follows: ■ E:\FR\FM\15DER1.SGM 15DER1 Federal Register / Vol. 75, No. 240 / Wednesday, December 15, 2010 / Rules and Regulations DATES: 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 (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 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 on or after January 1, 2010. * * * * * Steven T. Miller Deputy Commissioner for Services and Enforcement. Approved: December 9, 2010. Michael Mundaca, Assistant Secretary of the Treasury (Tax Policy). [FR Doc. 2010–31576 Filed 12–13–10; 11:15 am] BILLING CODE 4830–01–P PENSION BENEFIT GUARANTY CORPORATION 29 CFR Parts 4022 and 4044 Allocation of Assets in SingleEmployer Plans; Benefits Payable in Terminated Single-Employer Plans; Interest Assumptions for Valuing and Paying Benefits Pension Benefit Guaranty Corporation. ACTION: Final rule. AGENCY: This final rule amends Pension Benefit Guaranty Corporation’s regulations on Benefits Payable in Terminated Single-Employer Plans and Allocation of Assets in Single-Employer Plans to prescribe interest assumptions under the benefit payments regulation for valuation dates in January 2011 and interest assumptions under the asset allocation regulation for valuation dates in the first quarter of 2011. Interest assumptions are also published on PBGC’s Web site (http://www.pbgc.gov). emcdonald on DSK2BSOYB1PROD with RULES SUMMARY: VerDate Mar<15>2010 16:44 Dec 14, 2010 Jkt 223001 Effective January 1, 2011. FOR FURTHER INFORMATION CONTACT: Catherine B. Klion, Manager, Regulatory and Policy Division, Legislative and Regulatory Department, Pension Benefit Guaranty Corporation, 1200 K Street, NW., Washington, DC 20005, 202–326– 4024. (TTY/TDD users may call the Federal relay service toll-free at 1–800– 877–8339 and ask to be connected to 202–326–4024.) SUPPLEMENTARY INFORMATION: PBGC’s regulations on Allocation of Assets in Single-Employer Plans (29 CFR part 4044) and Benefits Payable in Terminated Single-Employer Plans (29 CFR part 4022) prescribe actuarial assumptions—including interest assumptions—for valuing and paying plan benefits under terminating singleemployer plans covered by title IV of the Employee Retirement Income Security Act of 1974. The interest assumptions in appendix B to part 4044 are used to value benefits for allocation purposes under ERISA section 4044. PBGC uses the interest assumptions in appendix B to part 4022 to determine whether a benefit is payable as a lump sum and to determine the amount to pay. Appendix C to part 4022 contains interest assumptions for private-sector pension practitioners to refer to if they wish to use lump-sum interest rates determined using PBGC’s historical methodology. Currently, the rates in appendices B and C of the benefit payment regulation are the same. The interest assumptions are intended to reflect current conditions in the financial and annuity markets. Assumptions under the asset allocation regulation are updated quarterly; assumptions under the benefit payments regulation are updated monthly. This final rule updates the benefit payments interest assumptions for January 2011 and updates the asset allocation interest assumptions for the first quarter (January through March) of 2011. The first-quarter 2011 interest assumptions under the allocation regulation will be 4.07 percent for the first 25 years following the valuation date and 3.93 percent thereafter. In comparison with the interest assumptions in effect for the fourth quarter of 2010, these interest assumptions represent no change in the select period (the period during which the select rate (the initial rate) applies), a decrease of 0.41 percent in the select rate, and a decrease of 0.58 percent in the ultimate rate (the final rate). The January 2011 interest assumptions under the benefit payments regulation will be 2.25 percent for the PO 00000 Frm 00011 Fmt 4700 Sfmt 4700 78161 period during which a benefit is in pay status and 4.00 percent during any years preceding the benefit’s placement in pay status. In comparison with the interest assumptions in effect for December 2010, these interest assumptions are unchanged. PBGC has determined that notice and public comment on this amendment are impracticable and contrary to the public interest. This finding is based on the need to determine and issue new interest assumptions promptly so that the assumptions can reflect current market conditions as accurately as possible. Because of the need to provide immediate guidance for the valuation and payment of benefits under plans with valuation dates during January 2011, PBGC finds that good cause exists for making the assumptions set forth in this amendment effective less than 30 days after publication. PBGC has determined that this action is not a ‘‘significant regulatory action’’ under the criteria set forth in Executive Order 12866. Because no general notice of proposed rulemaking is required for this amendment, the Regulatory Flexibility Act of 1980 does not apply. See 5 U.S.C. 601(2). List of Subjects 29 CFR Part 4022 Employee benefit plans, Pension insurance, Pensions, Reporting and recordkeeping requirements. 29 CFR Part 4044 Employee benefit plans, Pension insurance, Pensions. In consideration of the foregoing, 29 CFR parts 4022 and 4044 are amended as follows: ■ PART 4022—BENEFITS PAYABLE IN TERMINATED SINGLE-EMPLOYER PLANS 1. The authority citation for part 4022 continues to read as follows: ■ Authority: 29 U.S.C. 1302, 1322, 1322b, 1341(c)(3)(D), and 1344. 2. In appendix B to part 4022, Rate Set 207 is added to the table to read as follows: ■ Appendix B to Part 4022—Lump Sum Interest Rates For PBGC Payments * E:\FR\FM\15DER1.SGM * * 15DER1 * *

Agencies

[Federal Register Volume 75, Number 240 (Wednesday, December 15, 2010)]
[Rules and Regulations]
[Pages 78160-78161]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2010-31576]


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DEPARTMENT OF THE TREASURY

Internal Revenue Service

26 CFR Part 1

[TD 9510]
RIN 1545-BJ54


Requirement of a Statement Disclosing Uncertain Tax Positions

AGENCY: Internal Revenue Service (IRS), Treasury.

ACTION: Final regulation.

-----------------------------------------------------------------------

SUMMARY: This document contains final 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.

DATES: Effective date: This regulation is effective on December 15, 
2010.
    Applicability date: For dates of applicability, see Sec.  1.6012-
2(a)(5).

FOR FURTHER INFORMATION CONTACT: Kathryn Zuba at (202) 622-3400 (not a 
toll-free number).

SUPPLEMENTARY INFORMATION:

Background

    This document contains 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 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 the returns 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.
    A proposed regulation under section 6012 (REG-119046-10) was 
published in the Federal Register on September 9, 2010. Requirement of 
a Statement Disclosing Uncertain Tax Positions, 75 FR 54802 (proposed 
Sept. 9, 2010). The IRS received one written comment concerning the 
proposed regulation, and a public hearing regarding the proposed 
regulation was held on October 19, 2010. Neither of the two speakers at 
the public hearing had comments relating to the proposed regulation, 
although both organizations the speakers represented had previously 
submitted written comments concerning the draft Schedule UTP and 
instructions. Announcement 2010-30, 2010-19 IRB 668. After considering 
the comments, the proposed regulation is adopted by this Treasury 
decision with one non-substantive change related to the effective date. 
While the proposed regulation applied to returns filed for tax years 
beginning after December 15, 2009 and ending after the date the 
regulations were published in the Federal Register, the final 
regulation applies to returns filed for tax years beginning on or after 
January 1, 2010.

Explanation and Summary of Comments

    This rule will authorize the IRS to require certain corporations, 
as set out in forms, publications, instructions, or other guidance, to 
provide information concerning uncertain tax positions concurrent with 
the filing of a return. On September 24, 2010, the IRS released 
Schedule UTP with accompanying instructions that explain how the IRS 
plans to implement the authority provided by this regulation. One 
commentator asked that the proposed regulation not be adopted because 
Schedule UTP would require the disclosure of privileged information. If 
the regulation is adopted, the commentator recommended it should state 
that taxpayer may assert any applicable privileges to providing 
information sought by Schedule UTP and that any disclosure of 
information on that schedule will not constitute a waiver of any 
applicable privilege.
    The final regulation does not adopt this recommendation. The 
regulation addresses the IRS's authority to require certain 
corporations to provide information concerning uncertain tax positions. 
The IRS has decided to require the filing of Schedule UTP based on its 
determination that the information about uncertain tax positions taken 
in a tax return required by the schedule is essential to achieving an 
effective and efficient self-assessment tax system. Provisions relating 
to the assertion of privilege are not included in this regulation, 
since it does not affect the existence of any applicable privileges 
taxpayers may have concerning information requested by a return or how 
they may assert those privileges.

Special Analyses

    It has been determined that this final rule 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 5 U.S.C. 553(d)(3), it has been determined that there is 
good cause for the effective date of this final rule, which is less 
than 30 days after the date of publication.
    Pursuant to section 7805(f) of the Internal Revenue Code, the 
notice of proposed rulemaking preceding this regulation was submitted 
to the Chief Counsel for Advocacy of the Small Business Administration 
for comment on their impact on small business.

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.

Adoption of Amendments to the Regulations

0
Accordingly, 26 CFR part 1 is amended as follows:

[[Page 78161]]

PART 1--INCOME TAXES

0
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.

0
Par. 2. Section 1.6012-2 is amended by adding paragraphs (a)(4) and (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 on or after January 1, 
2010.
* * * * *

Steven T. Miller
Deputy Commissioner for Services and Enforcement.
    Approved: December 9, 2010.
Michael Mundaca,
Assistant Secretary of the Treasury (Tax Policy).
[FR Doc. 2010-31576 Filed 12-13-10; 11:15 am]
BILLING CODE 4830-01-P