February 22, 2010

The IRS’ Broad Proposal to Require Tax Uncertainties Disclosure

A few weeks ago, the IRS issued a proposed policy (in the form of IRS Announcement 2010-9) that would require corporate taxpayers to make broad disclosures on a schedule regarding their tax uncertainties, pulling information derived from FIN 48. The schedule would require a concise description of each “uncertain tax position” and information about its magnitude, but would not require disclosure of the taxpayer’s risk assessments or tax reserve amounts.

If this controversial proposal is adopted, it could impact those of us who have to evaluate these positions to draft disclosures to be flied with the SEC. Notable is IRS Commissioner Doug Shulman’s recent speech that discusses this proposal. We have been posting memos regarding this development in our “Tax Uncertainties” Practice Area.

The Last Samples: Companies Complying with the SEC’s New Rules

In our “Proxy Season Blog” on Friday, I posted another batch of proxy statements filed under the SEC’s new rules, courtesy of Kevin O’Neil of Vorys and Jackie Lasaracina of Perkins Coie.

Here’s my last word on the subject – a preliminary proxy statement filed by Umpqua Holdings that uses a grid for director qualifications. I wonder how many others will follow this format compared to those that insert the information directly into the director biography section…

Note that the SEC has announced an open Commission meeting for this Wednesday to consider publishing an IFRS statement.

More on “One Hot Potato: Climate Change Disclosure”

Recently, I blogged about how the SEC’s climate change interpretive guidance was a political hot potato. To bolster that statement, House Republican Spencer Bauchus (R-Ala), ranking member of the Committee on Financial Services (the committee that oversees the SEC), wrote this letter to the SEC recently, asking if the White House pushed the climate guidance. I’m sure there will be more to come…

Check out Kevin LaCroix’s analysis in his blog about whether the new climate change disclosure requirements could lead to more climate-related lawsuits.

– Broc Romanek