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The Schedule UTP requires the reporting of each U.S. federal income tax position taken by an applicable corporation on its U.S. federal income tax return for which two conditions are satisfied:

 The statistics show that:

Schedule UTP TY2011 Filing Statistics (as of December 2012)

• 1,783 taxpayers filed Schedule UTP for TY2011. (This compares to 1,761 taxpayers at the same time last year. Total returns filed and number of issues disclosed will increase as late year filters and other returns are filed)
• 83% of all returns filed with Schedule UTP were filed by IC taxpayers.
• 4,120 tax positions have been disclosed on Schedule UTPs for TY 2011.
• Returns filed by CIC taxpayers with a Schedule UTP averaged 3.8 uncertain tax positions per Schedule, while returns filed by IC taxpayers with a Schedule UTP averaged 2.0 positions per Schedule.
  • Note that beginning with TY2011, corporations are required to report tax positions taken in the prior year on Part II of Schedule UTP if that position was not reported on the prior year Schedule. As such, we expect a slight increase in the average number of total positions reported per taxpayer. We will at a later date begin to break out the total number of positions reported between current year and prior year positions.
• 47% of all Schedule UTP returns filed included only one uncertain tax position.
• IRS is still compiling the data regarding the top code sections reported with the TY2011 filings, although we do not expect much variation from TY2010. That information will be posted as soon as it becomes available.

For comparison, the TY2010 stats were: Schedule UTP TY2010 Filing Statistics

• 2,356 taxpayers filed Schedule UTP for TY2010.
• 79% of all returns filed with Schedule UTP were filed by IC taxpayers.
• 4,712 tax positions were disclosed on Schedule UTPs for TY 2010.
• Returns filed by CIC taxpayers with a Schedule UTP averaged 3.1 uncertain tax positions per Schedule, while returns filed by IC taxpayers with a Schedule UTP averaged 1.9 positions per Schedule.
• 49% of all Schedule UTP returns filed included only one uncertain tax position.
• The top three code sections reported by UTP filers are IRC 41, 482 and 162. Analysis of UTP filers’ concise descriptions revealed that the third highest primary IRC section is actually IRC 263 capitalization.
• Transfer Pricing and Research Credit comprise 43% of all disclosed uncertain tax positions.

The signing on Thursday came the day after Finance Minister Eveline Widmer-Schlumpf told a news conference that Switzerland had decided to agree to a bilateral deal with the Internal Revenue Service (IRS) which allows for certain exceptions, notably for the Swiss insurance sector, pension funds and the Swiss National Bank.

Switzerland is only the second state after Japan to opt for this type of agreement; most other nations are reportedly willing to sign a standard agreement.

Swiss banks active in international financial markets have no choice but to apply the US rules, according to Widmer-Schlumpf.

The Swiss Bankers Association said it welcomed the signing of the agreement although the banks continue to view Fatca "critically" due to the costs it incurs and the administrative burden it creates.

Widmer-Schlumpf said negotiations with Washington on a global settlement for outstanding tax issues were still under way but she refused to elaborate.

The finance minister added the US authorities had given assurances that acceptance of the Fatca deal would be considered beneficial to speed up a global deal for Switzerland’s financial sector.

The government has been trying to strike a deal for about a dozen Swiss banks which risk court proceedings in the US over illegal tax practices.

“Today’s announcement marks a significant step forward in our efforts to work collaboratively to combat offshore tax evasion,” said Acting Secretary of the Treasury Neal S. Wolin. “We are pleased that Switzerland has signed a bilateral agreement with us, and we look forward to quickly concluding agreements based on this model with other jurisdictions.”

Widmer-Schlumpf said the Fatca deal could also put more pressure on Switzerland to accept the automatic exchange of bank data with the European Union.

Until now Switzerland has refused to cave in to demands from Brussels, saying bilateral agreements with individual EU member states on a withholding tax were more practical.

Accords with Britain and Austria came into force at the beginning of the year. A similar deal with Berlin was rejected by the German parliament. Negotiations with a number of other countries are pending.

 Undeclared Income from a Swiss Bank Account?

 

Contact the Tax Lawyers at Marini & Associates, P.A.

 

 

for a FREE Tax Consultation at www.TaxAid.us or www.TaxLaw.ms

or Toll Free at 888-8TaxAid (888 882-9243).

The IRS does not yet know how many of these cases will result in collected proceeds after examination or investigation, as the amounts alleged reflect only the whistleblower’s estimate of the potential recovery.