Uncertain Tax Positions - Schedule UTP


Uncertain Tax Position Reporting

Since Tax Year 2010, Schedule UTP has been used by certain corporations to report uncertain tax positions. Corporations filing Forms 1120, 1120-F, 1120-L, or 1120-PC must file Schedule UTP if total assets equal or exceed the applicable asset threshold for the tax year and the corporation reserved for a tax position in audited financial statements.

For tax years beginning in 2014 and later, the asset threshold for reporting uncertain tax positions on Schedule UTP (Form 1120) decreased to $10 million. Corporations meeting all other Schedule UTP filing requirements must file a Schedule UTP if total assets equal or exceed $10 million. This asset threshold decrease for tax year 2014 is the final phase of the five-year Schedule UTP filing requirement phase-in. The asset threshold for tax years 2010 and 2011 was $100 million, and it decreased to $50 million for tax years 2012 and 2013.

Refer to the Schedule UTP Instructions (see below) for additional filing requirement information, definitions and special rules, and guidelines for completing Schedule UTP.

Submit your questions, comments, or concerns regarding Schedule UTP to the IRS.  Although individual responses may not be provided, the IRS will consider submissions in efforts to improve Schedule UTP.

Information about UTP Education and Outreach Efforts

LB&I is undertaking an education and outreach effort regarding Schedule UTP. Taxpayers’ Schedule UTP concise descriptions are reviewed for compliance with the published guidance. When disclosures do not meet the requirements set forth in the Schedule UTP instructions, Letter 5191 is mailed to the taxpayer. If the taxpayer has a valid Power of Attorney on file with the IRS, the Power of Attorney also receives a copy of this letter.

While the letter requires no action by taxpayers regarding the referenced Schedule UTP, taxpayers are advised to ensure that concise descriptions follow the instructions on future filings of a Schedule UTP.  All returns filed with a Schedule UTP will continue to be subject to review by LB&I.

Letter 5191 refers taxpayers to this website if they have questions about the filing requirements for Schedule UTP. The letter directs taxpayers to the Schedule UTP Instructions and updated examples of UTP concise descriptions that meet the requirements (see “Guidance for Preparing UTP Concise Descriptions,” below).

Related Documents

IRS Pronouncements:

Date Document Document Description or Originator
09-24-10 Announcement 2010-76, Policy of Restraint and Uncertain Tax Positions PDF Impact of the Policy of Restraint on Uncertain Tax Positions. 
09-24-10 Announcement 2010-75, Reporting of Uncertain Tax Positions PDF Reporting of Uncertain Tax Positions.
04-19-10 Announcement 2010-30 PDF Schedule UTP draft form and instructions.
03-05-10 Announcement 2010-17 PDF Extension for comment request for Uncertain Tax Position reporting requirements.
01-26-10 Announcement 2010-9 PDF Comment request for Uncertain Tax Position reporting requirements.

IRS and LB&I Guidance Memorandums

Date Document Document Description or Originator
05-31-13 Guidance for Preparing UTP Concise Descriptions Specific guidance
11-01-11 UTP Guidance and Procedures for the Field Cover memo by Commissioner, LB&I    
11-01-11 LB&I Schedule UTP Guidance Specific guidance
03-23-11 Uncertain Tax Positions - Modified Policy of Restraint Commissioner, LB&I memo
09-24-10 Directive for LB&I: Reporting of Uncertain Tax Positions PDF Deputy Commissioner, Services and Enforcement

Public Statements and Comments by IRS Executives

Date Document Document Description or Originator
03-26-12 IRS Deputy Commissioner, Service and Enforcement Remarks before Tax Executives Institute  Remarks of Steven T. Miller, Deputy Commissioner, Service and Enforcement Internal Revenue Service Before the Tax Executives Institute, Mid-Year Conference
09-24-10 IRS Commissioner Shulman Remarks before the American Bar Association, 9/24/2010  
04-12-10 Remarks of IRS Commissioner Shulman at the Tax Executives Institute Mid-Year Meeting  
01-26-10 IR-2010-13 Remarks of IRS Commissioner Doug Shulman to the New York State Bar Association Taxation Section Annual Meeting