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IRS releases latest Schedule UTP filing statistics

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Tax Hot Topics: IRS releases latest Schedule UTP filing statisticsThe IRS released Schedule UTP, “Uncertain Tax Position Statement” filing statistics for the tax year ended Dec. 31, 2014, showing consistent figures with years past.

In the 2014 tax year, there were 2,747 Schedule UTP filers, up from 2,469 from the 2013 tax year. Seventy-one percent of the filers were repeat filers, down from 80% in 2013. Notably, 50% of the filers in 2014 were public companies, which is down from 57% in 2013, indicating that more private companies are filing Schedules UTP reporting their uncertain tax positions. This is consistent with the Schedule UTP filing transition rules, which have dropped the reporting threshold for each year since the 2012 tax year. Under current rules, corporations with assets of $10 million or more must file Schedule UTP if it has taken a tax position for the current year or a prior year, and the taxpayer or a related party has recorded a reserve with respect to that position for financial statement purposes, or if it has not recorded a reserve and expect to litigate the position.

The most common uncertain tax position reported, for the fourth straight year, was related to the Section 41 research credit, followed by Section 482 transfer pricing positions. Those two issues made up more than half of all uncertain tax positions reported.

Contact
David Auclair
National Managing Principal, Washington National Tax Office
+1 202 521 1515

Shamik Trivedi
Manager, Washington National Tax Office
+1 202 521 1511


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