Businesses Encouraged to Submit Tax Issues for Resolution Program | AccountingWEB

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.

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