Wisdom

On July 19, 2011, the IRS issued a second set of frequently asked questions (FAQs) explaining the requirement for certain corporations to file Schedule UTP (Uncertain Tax Position Statement) with their Form 1120. The FAQs address practical questions raised by practitioners about filing Schedule UTP, including when is a reserve recorded, the effect of a change in circumstances in a later year, and the treatment of a net operating loss (NOL) carryforward. The full-text of IRS’s “Frequently Asked Questions on Schedule UTP” released July 19, 2011 can be viewed at http://www.irs.gov/businesses/article/0,,id=237538,00.html.