I finally stopped being a pig. My peers are tired of me pulling out the old saw: “The chicken is involved in a bacon and egg breakfast, the pig is committed,” but for a long time I thought I...Read more »
The IRS is certain: You’re going to need to disclose “Uncertain Positions.”
While it’s not going to be a factor yet, the writing is on the wall: many businesses will face big changes to their reporting requirements when the IRS mandates that “uncertain tax positions” be identified. Essentially, these are strategies applied to tax returns that the IRS may not agree with. Before now, the IRS was at a disadvantage during audits regarding the matter. These changes will reverse that position and put the IRS ahead of the game.
Prior to this change from the IRS, most businesses that will be affected by this move were already reporting uncertain tax positions for accounting purposes. The difference now will be the additional disclosure to the IRS.
Reporting Basics include:
- Disclosures must be included with returns at the time they’re filed.
- Any business with $10 million or more in assets will be required to comply and must have a financial statement prepared under FIN 48
- Disclosures must include a brief description of the positions and possible tax exposure if they are not upheld.
If you have any thoughts or comments regarding this proposal, the IRS is accepting them until March 29, 2010. If you have any questions as to how this could affect your business, please feel free to contact us at any time and we’ll be happy to work with you.