Businesses Encouraged to Submit Tax Issues for Resolution Program

Business taxpayers and associations may seek resolution of problematic tax issues through the Internal Revenue Service’s (IRS) Industry Issue Resolution (IIR) Program. The objective of the IIR program is to resolve business tax issues common to significant numbers of taxpayers, through new guidance. Issues submitted by March 31, 2006 will be considered for IIR project selection and inclusion in the 2006-2007 Treasury and IRS Guidance Priority List.


Recent results of the IIR program include:

  • Providing a safe harbor accounting method that heavy equipment dealers can use to more simply calculate heavy equipment parts inventories using standard price list. (Rev Proc 2006-14)

  • Allowing companies to reduce administrative burden by signing employment tax returns by facsimile. (Rev Proc 2005-39)

Issues selected for as 2005 IIR Projects include:

  • Calrification of eligibility for Work Credit and Welfare to Work Credit, submitted by Dewey Ballantine on behalf of the national Employment Opportunities Network and

  • Definition of a Home Construction Contract, submitted by Carbis Walker LLP on behalf of CFMA Associate Builders and Contractors, Inc.

Issues submitted but NOT selected as 2005 IIR projects include:

  • Standardized Method for Interdepartmental Profit
  • Alternative LIFO Method for Used Vehicles Not in Official Used Vehicle Guides
  • Inventory Price Index Computation (IPIS) LIFO Method for Parts Inventory
  • Dealer Provided Fuel under Rev Proc 2001-56
  • Equipment Rental (Diving Gear)
  • Stand-alone Amendments to Form 941 and 945
  • Form 1099 (MISC) for Medical Payment
  • Tax Treatment of Elders who Invest in Fraudulent Scams

For each issue selected, an IIR team of IRS and Treasury personnel gather relevant facts from taxpayers or other interested parties affected by the issue. The goal is to recommend guidance to resolve the issue. The benefit, to both taxpayers and the IRS, is savings of time and expense that would otherwise be expended on resolving the issue through examinations.

The IIR Project submission procedures and selection criteria are described in Revenue Procedure 2003-36. The IRS reviews submissions semi-annually, after March 31 and August 31 each year.

You may like these other stories...

School tax breaks get House support as Democrats objectRichard Rubin of Bloomberg reported that the House of Representatives on Thursday voted to expand and simplify tax breaks for education as Republicans continue to pass...
Many senior US tax professionals believe that a streamlined audit process will be the top benefit resulting from the IRS Transfer Pricing Audit Roadmap, a new toolkit organized around a notional 24-month audit timeline,...
Tax accounting to be simplified for money-market fundsThe US Securities and Exchange Commission (SEC) voted 3-2 on Wednesday for sweeping changes to institutional money-market funds, Emily Chasan, senior editor of...

Upcoming CPE Webinars

Jul 31
In this session Excel expert David Ringstrom helps beginners get up to speed in Microsoft Excel. However, even experienced Excel users will learn some new tricks, particularly when David discusses under-utilized aspects of Excel.
Aug 5
This webcast will focus on accounting and disclosure policies for various types of consolidations and business combinations.
Aug 20
In this session we'll review best practices for how to generate interest in your firm’s services.
Aug 21
Meet budgets and client expectations using project management skills geared toward the unique challenges faced by CPAs. Kristen Rampe will share how knowing the keys to structuring and executing a successful project can make the difference between success and repeated failures.