Fact sheet: Industry Issue Resolution (IIR) Program (March 2023)


The Industry Issue Resolution (IIR) program's goal is to resolve frequently disputed or burdensome business tax issues affecting many taxpayers. This goal is accomplished by providing clear guidance that business taxpayers can use, thus reducing the time and expense of resolving issues on a case-by-case basis during tax examinations.

Business tax issues appropriate for IIR

The IIR program is available to all business taxpayers served by the Small Business and Self-Employed Division (SB/SE), Tax Exempt and Government Entities (TEGE), and Large Business and International Division (LB&I). Business tax issues appropriate for the program will have at least two of these characteristics:

  • The proper tax treatment of a common factual situation is uncertain.
  • The uncertainty results in frequent and often repetitive examinations of the same issue.
  • The uncertainty results in taxpayer burden.
  • The issue is significant and impacts many taxpayers, either within an industry or across industry lines.
  • The issue requires extensive factual development, and an understanding of industry practices and views concerning the issue would assist the Service in determining the proper tax treatment.

Business tax issues not appropriate for IIR

  • Issues that are primarily under the jurisdiction of the Operating Divisions of the Service other than the LB&I, TEGE, and SB/SE Divisions.
  • Issues that involve transactions that lack a bona fide business purpose or transactions with a significant purpose of improperly reducing or avoiding federal taxes.
  • Issues involving transfer pricing or international tax treaties.
  • Issues unique to one or a small number of taxpayers.

How the IIR process works

  • Business taxpayers, industry associations, and other interested parties may submit issues for resolution at any time.
  • LB&I, SB/SE, TEGE, Appeals, Chief Counsel, and Treasury screen, evaluate, and select the issues. Factors considered include the appropriateness of the issue for the program and whether the requested guidance promotes sound tax administration.
  • Issues reviewed and IIR projects selected are announced publicly.
  • An IIR team is formed for each issue selected. The team’s role includes fact-finding, evaluating input, and recommending guidance to resolve the issue. Team members typically include the IRS, Chief Counsel, Appeals, and Treasury representatives.
  • For issues selected, the role of submitters and other interested parties may include meeting with the team and providing the team with additional information, including the opportunity to review books and records to assist in the development of the issue.
  • Resolution of an issue is generally through IRS-published guidance, typically a revenue ruling and or revenue procedure, but may include administrative guidance.

How to submit an IIR for consideration

  • All submissions made under the Industry Issue Resolution (IIR) Program will be made available for public inspection and copying.  Therefore, submissions should not include confidential or taxpayer-specific information.
  • Interested parties should submit issues by e-mail to iir@irs.gov.
  • The submission should include the following:
    • an issue statement.
    • a description of why the issue is appropriate for the IIR Program.
    • an explanation of the need for guidance.
    • the estimated number of taxpayers affected by the issue.
    • the name and telephone number of a person to contact if additional information is needed.
    • a recommendation of how the issue may be resolved can be included.

Sources of additional information

Revenue Procedure 2016-19 contains information on how to submit an issue for IIR consideration.