Instructions For Schedule Utp Draft - Uncertain Tax Positions Statement

Reporting current year and prior year tax positions. Tax positions taken by the corporation in the

current year’s tax return for which the decision whether to record the reserve was made at least 60 days

before filing the tax return are reported on Part I. Tax positions taken by the corporation in a prior year’s

tax return for which the decision whether to record the reserve was made at least 60 days before filing the

tax return are reported on Part II. A corporation is not required to report a tax position it has taken in a

prior tax year if the corporation reported that tax position on a Schedule UTP filed with a prior year tax

return. If a transaction results in tax positions taken in more than one tax return (and a decision whether

to reserve has been made), the tax positions arising from the transaction must be reported on Part I of the

Schedule UTP attached to each tax return in which a tax position resulting from the transaction is taken

regardless of whether the transaction or a tax position resulting from the transaction was disclosed in a

Schedule UTP filed with a prior year’s tax return. See Example 6. Do not report a tax position on

Schedule UTP before the tax year in which the tax position is taken in a tax return by the corporation.

Determinations made within 60 days prior to filing the tax return. Tax positions for which a reserve

was recorded within 60 days before filing a tax return, or a decision not to record a reserve was made

during that same period based on an expectation to litigate or an IRS administrative practice, must be

reported either on Part I of the Schedule UTP for the current year or on Part II of the Schedule UTP for

the next tax year.

Concise description of tax position. A corporation that reports a tax position in either Part I or Part II is

required to provide a concise description of each tax position on Part III. See Examples 14, 15, and 16.

Transition rules. A corporation is not required to report on Schedule UTP a tax position taken in (a) a

tax year beginning before December 15, 2009, or (b) a tax year beginning on or after December 15, 2009,

and ending before January 1, 2010, regardless of whether or when a reserve was recorded with respect

to that tax position.

Electronic Filing.

[RESERVED]

Who Must File

A corporation must file Schedule UTP with its income tax return if:

1. The corporation files Form 1120, U.S. Corporation Income Tax Return; Form 1120 F, U.S. Income

Tax Return of a Foreign Corporation; Form 1120 L, U.S. Life Insurance Company Income Tax Return; or

Form 1120 PC, U.S. Property and Casualty Insurance Company Income Tax Return;

2. The corporation has assets equal to or exceeding $10 million;

3. The corporation or a related party issued an audited financial statement and the audited financial

statement covers all or a portion of the corporation’s operations for all or a portion of the corporation’s tax

year; and

4. The corporation has one or more tax positions that must be reported on Schedule UTP.

A corporation’s assets equal or exceed $10 million if the amount reported on Part I, Box D of Form 1120,

or the higher of the beginning or end of year total assets amounts reported on Schedule L of Form 1120-

F, Form 1120-L, or Form 1120-PC, is at least $10 million.

Schedule UTP must accompany a tax return and should not be filed separately. A taxpayer that files a

protective Form 1120, 1120 F, 1120 L, or 1120 PC must file Schedule UTP if it satisfies the requirements

set forth above.

Affiliated groups. An affiliated group of corporations filing a consolidated return will file a Schedule UTP

for the affiliated group. The affiliated group need not identify the member of the group to which the tax

position relates or which member recorded the reserve for the tax position. Any affiliate that files

separately and satisfies the requirements set forth above must file a Schedule UTP with its return setting

forth its own tax positions.

Instructions For Schedule Utp Draft - Uncertain Tax Positions Statement - 2010 Page 2

Related Articles

Related forms

Related Categories