Final Rules Give IRS Authority to Require UTP Disclosure; Date Changed

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IRS unveils final regulations (T.D. 9510) giving the agency authority to require disclosure of uncertain tax positions, with an effective date change that one practitioner says pushes back the date taxpayers will have to file the first round of forms. In general, the guidance allows IRS to require corporations to file a schedule revealing their uncertain tax positions to the government. The rules are unchanged from the proposed rules (REG-119046-10), with the exception of an effective date that moved from Dec. 15, 2009, to Jan. 1, 2010. The guidance is the latest development in a mandate that many taxpayers have viewed as changing the landscape of disclosure. IRS notes in the preamble that it would not adopt a taxpayer's request to address privilege issues because the rules are intended to address only the issue of IRS's authority to mandate that the Schedule UTP, Statement of Uncertain Tax Position, be filed. While the original rules applied to returns filed for tax years beginning after Dec. 15, 2009, and ending after the date of publication in the Federal Register, the final regulations apply to returns filed for tax years beginning on or after Jan. 1, 2010.