Tax Return Disclosures … Is Form 8275 Indispensable?
A recent article (in Tax Notes, posted today 1/19) by two San Francisco attorneys, entitled “Tax Return Disclosures: What Is Adequate and Why It Matters,” provides a comprehensive discussion emphasizing that it is important to carefully consider the form of making disclosures of aggressive positions taken in tax returns.
Consideration of this article in connection with tax return disclosures involving basis reductions for payments received from manufacturers for Factory image upgrade construction or in the settlement of claims against Volkswagen is recommended for CPAs advising auto dealerships.
One cannot help but think that it may be unwise to try to get by with a simple “white paper” narrative statement describing the position taken - instead of attaching Form 8275 to the tax return.
There are some really good insights and examples in this article, a copy of which can probably be obtained by directly requesting it from either of its authors - Robert W. Wood (Wood@WoodLLP.com) or Milan N. Ball (Ball@WoodLLP.com).