IRS is looking for problems

The Internal Revenue Service is encouraging business taxpayers, associations and other interested parties to submit controversial or frequently disputed tax issues to the Industry Issue Resolution (IIR) Program.

The purpose of the IIR program is to clarify and recommend guidance that resolves an issue and benefits both taxpayers and the IRS by reducing the time and expense of resolving the issue through case-by-case tax examinations. Since the program began in 2000, there have been 89 submissions, of which 25 resulted in determinations that taxpayers can rely on.

While business associations and business taxpayers may submit tax issues for resolution at any time, in order to be considered during the fall review, submissions must be received by Aug. 31, 2007.

Business issues selected for consideration generally have two or more of the following characteristics:

  • When assessing a common factual situation, interpretation of the tax regulations is uncertain.

  • This uncertainty results in frequent, and often repetitive, examinations of the same issue among significant numbers of taxpayers.

  • The uncertainty results in undue taxpayer burden.

  • The issue is significant and affects a large number of taxpayers, either within an industry or across industry lines.

  • The issue requires extensive factual development, and an understanding of industry practices and views of the issue would assist the IRS in determining proper and consistent tax treatment for the future.

    Although there is no set format for submitting an issue for review, there are specific data that need to be included in the submission. The IIR project submission procedures are available in Revenue Procedure 2003-36. Interested parties should submit issues by e-mail to IIR@IRS.GOV.

    Alternatively, submissions may be mailed or faxed to:
    Internal Revenue Service, Office of Prefiling and Technical Services
    Large and Mid-Size Business Division LM: PFT
    Mint Building 3rd Floor M3-420
    1111 Constitution Avenue NW
    Washington, DC 20224
    Fax: 202-283-8406

    You may like these other stories...

    IRS audits less than 1 percent of big partnershipsAccording to an April 17 report from the Government Accountability Office (GAO), the IRS audits fewer than 1 percent of large business partnerships, Stephen Ohlemacher of the...
    Legislation coming out of Washington just might reduce homeowners' burden for disaster insurance. It's a topic very much on everyone's minds since the mudslide in Oso, Washington. The loss of human life was...
    Divorce is hard, and the IRS isn't going to make it any easier. The IRS generally says "no" to tax deductions that might ease the pain of divorce. In certain circumstances, however, you might be able to salvage...

    Upcoming CPE Webinars

    Apr 22
    Is everyone at your organization meeting your client service expectations? Let client service expert, Kristen Rampe, CPA help you establish a reputation of top-tier service in every facet of your firm during this one hour webinar.
    Apr 24
    In this session Excel expert David Ringstrom, CPA introduces you to a powerful but underutilized macro feature in Excel.
    Apr 25
    This material focuses on the principles of accounting for non-profit organizations' revenues. It will include discussions of revenue recognition for cash and non-cash contributions as well as other revenues commonly received by non-profit organizations.
    Apr 30
    During the second session of a four-part series on Individual Leadership, the focus will be on time management- a critical success factor for effective leadership. Each person has 24 hours of time to spend each day; the key is making wise investments and knowing what investments yield the greatest return.