The IRS today released two revenue procedures that offer guidance on the process for taxpayers to request and obtain the assistance of the U.S. Competent Authority under the U.S. network of income tax treaties and that provide guidance regarding the advance pricing agreement (APA) program.
Rev. Proc. 2015-40 [PDF 245 KB] provides guidance on the process of requesting and obtaining assistance under U.S. tax treaties from the U.S. Competent Authority, acting through the Advance Pricing and Mutual Agreement Program and the Treaty Assistance and Interpretation Team of the Deputy Commissioner (International) Large Business and International Division of the Internal Revenue Service.
Rev. Proc. 2015-40 updates and supersedes Rev. Proc. 2006-54, and was issued along with Rev. Proc. 2015-41 [PDF 241 KB] as guidance with respect to advance pricing agreements (APAs).
The following provides an initial overview of the 80+ page Rev. Proc. 2015-40.
A proposed version of the revenue procedure was released for public comment in Notice 2013-78. Today’s release is the final version of the revenue procedure, and was issued following IRS and Treasury Department consideration of public comments. Rev. Proc. 2015-40 also reflects modifications based on continuing internal monitoring of the administrative procedures of the U.S. Competent Authority with respect to the administration of U.S. tax treaties.
Rev. Proc. 2015-40 states that the principal differences between this final revenue procedure and the proposed version in Notice 2013-78 are as follows: