IRS Releases Final Version of Schedule UTP

On September 24, 2010, the Internal Revenue Service (IRS) released the final U.S. tax schedule for reporting uncertain tax positions (Schedule UTP) together with important guidance regarding its implementation. In general terms, Schedule UTP requires U.S. and non-U.S. corporations that file certain types of U.S. federal income tax returns to disclose specific U.S. tax positions taken on those tax returns if the corporation or a related person has recorded a reserve on its audited financial statements with respect to such positions. This new disclosure obligation represents a significant extension of the IRS's strategy of enhancing taxpayer transparency and is driven by "the fundamental principle that transparency is essential to achieving an effective and efficient self-assessment tax system," in the words of Douglas Shulman (IRS Commissioner). The September 24 guidance includes several very important changes to the previously issued draft Schedule UTP and