Overview
On October 11, 2022, the IRS released draft changes to Schedule UTP and Schedule UTP Instructions for the 2022 tax year. Schedule UTP was first introduced for the 2010 tax year and requires certain corporations meeting a minimum asset threshold to report their uncertain tax positions as part of their Form 1120, 1120-F, 1120-L, or 1120-PC filings.
Larry Hill was a significant contributor to the American Bar Association’s Section of Taxation comment letter on the draft changes in a letter to Acting IRS Commissioner, Douglas O’Donnell. The comment letter outlines the important procedural and tax policy issues arising from the proposed changes, including concerns about the potential waiver of the attorney-client privilege, the section 7525 tax practitioner’s privilege, and the attorney work product doctrine implicated by disclosing the dollar amount of the uncertain tax position and providing a “sufficient” description.
