Industry Tax Issue Resolution Program

Industry Tax Issue Resolution Program

Industry Tax Issue Resolution Program
For roughly the​ last ten years,​ the​ internal revenue service has made a​ fairly major effort to​ be more taxpayer friendly .​
The Industry Tax Issue Resolution Program is​ one such step.
Industry Issue Resolution Program
After years of​ living in​ denial,​ the​ IRS has come around to​ admitting tax forms and procedures may be a​ mess for certain industries .​
As one IRS agent put it,​ the​ agency doesn’t actually work in​ the​ industries,​ so it​ doesn’t have a​ lot of​ practical knowledge in​ how things work financially for the​ businesses on​ a​ day-to-day basis .​
In a​ creative move,​ the​ IRS created the​ Industry Issue Resolution Program .​
This program essentially lets businesses complain to​ the​ IRS about burdensome tax issues .​
The IRS then considers the​ problem,​ researches alternatives and tries to​ come up with new regulations .​
One of​ the​ better aspects of​ the​ programs is​ the​ guidance factor .​
If you’ve every filled out business taxes,​ you​ know there are areas that need serious clarity .​
You either can’t tell what the​ IRS is​ asking for or​ how they want it​ determined .​
Using the​ Industry Issue Resolution Program,​ businesses can seek clarity regarding many of​ the​ mystifying aspects of​ the​ tax regulations .​
If a​ business wants to​ raise a​ topic with the​ IRS under this issue resolution program,​ it​ has to​ meet some criteria .​
Issued raised must have at​ least two of​ the​ following criteria or​ the​ IRS will reject the​ application.
1 .​
The tax treatment of​ a​ common factual situation is​ uncertain.
2 .​
The uncertainty results in​ frequent,​ repetitive examination of​ the​ same issue for businesses in​ the​ industry.
3 .​
The uncertainty results in​ a​ tax burden.
4 .​
The issue is​ significant and impacts a​ large number of​ taxpayers.
5 .​
The IRS would benefit from gaining a​ better understanding of​ the​ industry by interacting with the​ industry .​
The procedure for pursuing an​ issue in​ the​ resolution program is​ fairly simple,​ but fairly slow .​
Application is​ made to​ the​ relevant department dictated in​ the​ application instructions .​
You then wait until the​ IRS announces whether it​ will accept the​ application,​ announcements which only occur semi-annually! If it​ is​ accepted,​ the​ IRS will set up a​ team to​ investigate it​ and be in​ touch to​ get your viewpoint.

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