IRS Seeks Public Comment on Draft Changes to UTP Form

Taxpayers can submit comments on draft changes to Schedule UTP and the UTP Instructions for the 2022 tax year (processing year 2023) now through the end of the day on Nov. 18, the IRS said.

Since the 2010 tax year, 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, according to the IRS.

The IRS believes the draft changes to Schedule UTP and instructions will improve the form’s usefulness. The changes to the form include, for example, a new field for the incremental dollar amount of the uncertain tax positions taken. In addition, 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, the IRS said.