Taxpayers have a new template for requesting an Advance Pricing Agreement (APA) under Rev. Proc. 2015-41, I.R.B. 2015-35, 263. Also, the IRS released a filled-in and annotated example template and a redlined comparison of the current template and the proposed September 2017 template.
APA Template, Example, and Comparison
The template is used to draft APAs. It is designed to systemize how taxpayers propose terms for their APA. Also, the template provides standardized language to be used in the APA. Rev. Proc. 2015-41, which defines the APA process, requires taxpayers to include a draft APA and a redline comparison of the proposed draft against the current APA. The template serves as the model APA. In addition, the draft APA and redline comparison must be included in Word format in the completed APA request. The template uses an option-based format for selecting terms.
Taxpayers may request Microsoft Word files of the template, example, and comparison by sending an email request to the APMA mailbox email@example.com, with the subject line “APMA Template Request”.
Taxpayers with APAs in progress should ask their assigned team leaders in the Advance Pricing and Mutual Agreement Program (APMA) whether the template can be used.
Comments are requested on the removal of section 7 of Appendix A, Effect of Certain Adjustments by Tax Authorities and Resulting Competent Authority Proceedings. Direct comments to the APMA mailbox with the subject line “APA Template Comments”. Taxpayers may also provide feedback at anytime using this procedure.
APA Template Example May 2018
APA Template May 2018
Code Sec. 482
CCH Reference – 2018FED ¶22,283.103
Tax Research Consultant
CCH Reference – TRC INTL: 15,200