Daily Tax Update - November 3, 2015: IRS Releases Article Regarding 2011-2012 Schedule M-3 Profiles of Schedule UTP Filers

IRS Releases Article Regarding 2011-2012 Schedule M-3 Profiles of Schedule UTP Filers:  Today, the IRS made a report titled “Schedule M-3 Profiles of Schedule UTP Filers by IRC Section Cited” available for download on its website.  The report, which was originally published in Tax Notes on October 12, 2015, presents and compares 2011 and 2012 Schedule M-3 and Form 1120 tax return data profiles for Schedule UTP (Uncertain Tax Position Statement) filers and nonfilers.  

In addition, for Schedule UTP filers with SEC Form 10K/public financial statements and at least $100 million in assets, the report further compares the Schedule M-3 profiles of corporations that cite or do not cite on Schedule UTP the five most commonly cited code sections, which are 482 (transfer pricing), 41 (research credit), 162 (trade or business expense), 199 (domestic production activities deduction), and 263 (capitalized cost).  Of those filers, 72% cited at least one of the five sections in 2012, with section 41 being the most frequently cited.

 
Miscellaneous Guidance: The Treasury Department released corrections to proposed regulations (REG-139483-13) that relate to certain transfers of property by U.S. persons to foreign corporations.  

In addition, the Treasury Department released corrections and correcting amendments to TD 9728, which contained final regulations regarding the determination of a partner’s distributive share of partnership items of income, gain, loss, deduction, and credit when a partner’s interest varies during a partnership taxable year.