IRS Statement about Uncertain Tax Positions (UTP) Reporting

Updated October 19, 2022: Added an email for submitting comments by November 18, 2022.

October 11, 2022

The IRS announced today draft changes to the Schedule UTP and the UTP Instructions for 2022 Tax Year (processing year 2023).  The documents are accessible at Draft Tax Forms and taxpayers can submit comments on the draft form. In addition to submitting comments on the draft form as part of the normal draft tax forms process, stakeholders can provide input on the changes to LB&I at on or before November 18, 2022. 

The draft changes to Schedule UTP and instructions will improve the form’s usefulness. 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 records a liability for unrecognized tax benefits for a U.S. federal income tax position in audited financial statements.

The changes to the form include, for example, a new field for the incremental dollar amount of the uncertain tax positions taken. Also, for tax positions reported on Schedule UTP, rather than Form 8275 (Disclosure Statement) or Form 8275-R (Regulation Disclosure Statement), new columns will identify the rulings or regulation sections that are contrary to positions taken on the tax return.  Finally, the revised Schedule UTP instructions incorporate more relevant examples and provide enhanced guidance on what constitutes an adequate disclosure for the concise description.