IRS seeks business owners’ input

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The Internal Revenue Service is looking for input from business taxpayers about issues involving a controversy, a dispute or an unnecessary burden on taxpayers.

The IRS would like recommendations for the Industry Issue Resolution program, in order to resolve business-tax issues that are common to a significant numbers of taxpayers.

Prior feedback from businesses and associations has helped shape tax policy for thousands of taxpayers.

Recent submissions accepted into the IIR program include:
• Network assets in the telecommunications industry (unit of property)
• Asset class determination under Revenue Procedure 87-56 for wireless telecommunication assets
• Vendor mark-down allowances in calculation of inventory under the retail inventory method
• Network assets in the utilities industry (unit of property)

Guidance issued as a result of the IIR program include:
• Technical terminations of publicly traded partnerships – procedures for requesting relief, delegation of authority for granting relief, and a sample closing agreement documenting the conditions under which relief is granted.
• Auto Last In First Out – for automobile wholesalers, manufacturers and dealers regarding the proper treatment of the dollar-value, LIFO inventory method for pooling purposes of crossover vehicles, which have characteristics of trucks and cars.

To resolve issues, a team of IRS and Treasury personnel gather facts from those affected by the issue. The IRS’s goal is to recommend guidance to resolve the issue. This benefits both taxpayers and the IRS by saving time and expense that would otherwise be used to resolve the issue through audits.

Requests for guidance on tax issues under the IIR program can be submitted to IIR@irs.gov.

Submissions are reviewed semi-annually. The next selections will be made from issues submitted by September 30.