Instructions for IRS Form 1120 Schedule UTP Uncertain Tax Position Statement

IRS Form 1120 Schedule UTP Uncertain Tax Position Statement

This document contains official instructions for IRS Form 1120 Schedule UTP, Uncertain Tax Position Statement - a tax form released and collected by the Internal Revenue Service (IRS), a subdivision of the U.S. Department of the Treasury. An up-to-date fillable IRS Form 1120 Schedule UTP is available for download through this link.

FAQ

Q: What is IRS Form 1120 Schedule UTP?
A: IRS Form 1120 Schedule UTP is a form used by corporations to report uncertain tax positions.

Q: What is an uncertain tax position?
A: An uncertain tax position is a position taken by a corporation on its tax return that is not certain to be upheld by tax authorities.

Q: Why is Schedule UTP required?
A: Schedule UTP is required by the IRS to improve transparency and provide information about potential tax disputes.

Q: Who needs to file Schedule UTP?
A: Corporations that meet certain criteria, such as having assets of $10 million or more and audited financial statements, are required to file Schedule UTP.

Q: What information is reported on Schedule UTP?
A: Schedule UTP requires corporations to provide a concise description of each uncertain tax position, the tax years involved, and the maximum amount of potential tax liability.

Q: When is Schedule UTP due?
A: Schedule UTP is generally due with the corporation's annual income tax return, which is usually due on the 15th day of the fourth month following the end of the corporation's tax year.