Noting the presence of IRS staff charged with reducing taxpayer burden, Mr.
Adams stated that the IRS recognizes that the new form may require systems changes, noting that the IRS is trying to build upon existing systems and software for tracking financial information.
Trager stated that the lack of instructions for the Schedule M-3 could hamper efforts to comment on the proposal, noting that the lack of definition of a restatement is causing some concern.
Norton referred to the advance pricing agreement (APA) program, noting the request from Senators Grassley and Baucus of the Senate Finance Committee for more than 400 APAs and their underlying documentation, the names of all professionals employed by the APA unit in the last 10 years, and a summary of all disciplinary actions brought against APA and competent authority personnel for the last three years.
He offered TEI's assistance in reviewing any guidance on the issue, noting
that the system should encourage companies, as good corporate citizens, to participate in such campaigns.
Burke agreed, noting that especially with respect to indirect activities, companies are at a loss to determine what costs are subject to the disallowance.
DeLuca then referred to the five-percent de minimis rule set forth in the proposed regulations, noting that a higher figure will lessen the recordkeeping requirements by keeping companies from inadvertently "tripping over" the threshold.
Burke stated that the lack of final regulations is holding up audits, noting that the examining agents (as well as taxpayers) are disturbed by the lack of finality.