IRS Determines New Ruling for Tax Shelter
The requirement that companies list all of the transactions involving tax savings has been scaled back by the Internal Revenue Service in the United States. This requirement was intended to help the IRS identify information and issues for possible company audits.
Companies would have been required, had the IRS continued with the phasing of the plan, to list all of their maximum tax liabilities. The IRS has stated new rules will be added within a period of five years.
In order to save the IRS and corporations money and time, the IRS is requesting the companies to provide information for a potential audit.
This delay doesn’t apply to the larger corporations who are required to begin the process immediately for 2010.
The IRS department is making an attempt to change how the public views the IRS. Commissioner Doug Shulman of the IRS stated the relationship between taxpayers and the agency has been perceived as adversarial in the past and now they, the IRS department, are working to make it more transparent.
Shulman stated the IRS decided to drop the requirement for companies to list their possible maximum liability taxes after concern was express by the companies.
The IRS plans to phase in the requirement for companies with $100 million or more in assets to file 2010 tax returns on the new form. In 2007 the number of companies meeting that threshold was 24,500. The number of companies required to file with $100 million in assets should be much higher this year.