On December 22, 2022, the Internal Revenue Service (IRS)
finalized changes to Schedule UTP, Uncertain Tax Position Statement,
and Instructions for Schedule UTP.
Proposed changes to Schedule UTP and the UTP Instructions were
announced on October 11, 2022, with comments requested by November
18, 2022. Our prior coverage of the proposed changes and comments
can be found here and here.
Several comments were submitted in response to the proposed
changes, expressing significant concerns regarding privilege
issues, the increase in information required to be disclosed and
uncertainty surrounding penalty protection. We submitted our own comments, which focused
primarily on the IRS's proposal to require taxpayers to
identify all "contrary authorities" to a position
identified on Schedule UTP, including nonprecedential and
unpublished guidance.
