Looking for a Irs Forms And Templates? Download it for free!

2010

Department of the Treasury

Internal Revenue Service

Instructions for Schedule

UTP

Uncertain Tax Position Statement

reserve was recorded because of an

accounting standards, either no reserve

Section references are to the Internal

expectation to litigate). A tax position

was required for a tax position taken on

Revenue Code unless otherwise noted.

taken on a tax return is a tax position

a tax return because the amount was

General Instructions

that would result in an adjustment to a

immaterial for audited financial

line item on that tax return if the

statement purposes, or that a tax

position is not sustained. If multiple tax

position was sufficiently certain so that

Purpose of Schedule

positions affect a single line item on a

no reserve was required, then the

tax return, report each tax position

corporation need not report the tax

Schedule UTP asks for information

separately on Schedule UTP. SeeTax

position on Schedule UTP.

about tax positions that affect the U. S.

position taken on a tax return on page

Transition rule. A corporation is not

federal income tax liabilities of certain

required to report on Schedule UTP a

corporations that issue or are included

tax position taken in a tax year

in audited financial statements and

Reporting current year and prior

beginning before January 1, 2010, even

have assets that equal or exceed $100

year tax positions. Tax positions

if a reserve is recorded with respect to

million.

taken by the corporation on the current

that tax position in audited financial

year’s tax return are reported in Part I.

Reporting Uncertain

statements issued in 2010 or later. See

Tax positions taken by the corporation

Example 8.

on a prior year’s tax return are reported

Tax Positions

on Part II. A corporation is not required

Periods covered. File a 2010

on Schedule UTP

to report a tax position it has taken in a

Schedule UTP with the 2010 income

prior tax year if the corporation reported

tax return for the calendar year 2010

Tax positions to be reported.

that tax position on a Schedule UTP

and for a fiscal year that begins in 2010

Schedule UTP requires the reporting of

filed with a prior year tax return. If a

and ends in 2011. A corporation is not

each U.S. federal income tax position

transaction results in tax positions

required to file a Schedule UTP for a

taken by an applicable corporation on

taken on more than one tax return, the

short tax year that ends in 2010.

its U.S. federal income tax return for

tax positions must be reported in Part I

which two conditions are satisfied.

of the Schedule UTP attached to each

Who Must File

tax return in which a tax position is

1. The corporation has taken a tax

A corporation must file Schedule UTP

taken regardless of whether the

position on its U.S. federal income tax

with its income tax return if:

transaction or a tax position resulting

return for the current tax year or for a

from the transaction was disclosed in a

1. The corporation files Form 1120,

prior tax year.

Schedule UTP filed with a prior year’s

U.S. Corporation Income Tax Return;

2. Either the corporation or a related

tax return. See Example 6 and

Form 1120-F, U.S. Income Tax Return

party has recorded a reserve with

Example 7. Do not report a tax position

of a Foreign Corporation; Form 1120-L,

respect to that tax position for U.S.

on Schedule UTP before the tax year in

U.S. Life Insurance Company Income

federal income tax in audited financial

which the tax position is taken on a tax

Tax Return; or Form 1120-PC, U.S.

statements, or the corporation or

return by the corporation.

Property and Casualty Insurance

related party did not record a reserve

Company Income Tax Return;

for that tax position because the

Note. Part II will not be completed for

2. The corporation has assets that

corporation expects to litigate the

Schedule UTP for the 2010 tax year,

equal or exceed $100 million;

position.

because tax positions taken before the

3. The corporation or a related party

2010 tax year are not reported. See

A tax position for which a reserve

issued audited financial statements

Transition rule below.

was recorded (or for which no reserve

reporting all or a portion of the

Concise description of tax position.

was recorded because of an

corporation’s operations for all or a

A corporation that reports a tax position

expectation to litigate) must be reported

portion of the corporation’s tax year;

in Part I (or Part II after the 2010 tax

regardless of whether the audited

and

year) is required to provide a concise

financial statements are prepared

4. The corporation has one or more

description of each tax position in Part

based on U. S. generally accepted

tax positions that must be reported on

III. See Examples 10 through 12.

accounting principles (GAAP),

Schedule UTP.

International Financial Reporting

Consistency with financial statement

Attach Schedule UTP to the

Standards (IFRS), or other

reporting. The analysis of whether a

country-specific accounting standards,

corporation’s income tax return. Do not

reserve has been recorded for the

including a modified version of any of

file it separately. A taxpayer that files a

purpose of completing Schedule UTP is

the above (for example, modified

protective Form 1120, 1120-F, 1120-L,

determined by reference to those

GAAP).

or 1120-PC must also file Schedule

reserve decisions made by the

UTP if it satisfies the four requirements

A tax position is based on the unit of

corporation or a related party for

set forth above.

account used to prepare the audited

audited financial statement purposes. If

financial statements in which the

the corporation or a related party

A corporation required to file

reserve is recorded (or in which no

determined that, under applicable

Schedule UTP also must check “Yes” to

Cat. No. 55028G

Instructions For Schedule Utp - Uncertain Tax Position Statement - Internal Revenue Service - 2010

Related Articles

Related forms

Related Categories