Tax Law

IR-2010-13 and IR-2010-9: A New Approach to Uncertain Tax Position Reporting Requirements

IRS Commissioner Doug Shulman's prepared remarks on January 26th to the New York State Bar Association Taxation Section Annual Meeting proposed new parameters to improve tax reporting transparency. IR-2010-13. See also IR-2010-9.

Explaining the proposal and its anticipated effects, Mr. Shulman said:

"Reporting uncertain tax positions would be required at the time a return is filed by certain business taxpayers: those who have both a financial statement prepared under FIN 48 or other similar accounting standards reflecting uncertain tax positions and assets over $10 million. Under the Announcement, these taxpayers would be required to annually disclose uncertain tax positions in the form of a concise description of those positions and the maximum amount of US income tax exposure if the taxpayer’s position is not sustained. By concise, we mean a few sentences that inform us of the nature of the issue, and not pages of factual description or legal analysis."

Mr. Shulman added: "We do not believe we will be adding substantial new work or burden on taxpayers. These taxpayers are already required to establish tax reserves for uncertain tax positions in determining their financial statement income under US or foreign accounting standards, such as FIN 48. So the work is already being done."

Related Links: For information about uncertain tax position reporting requirements under FIN 48 standards, see