The IRS today released two revenue procedures that provide guidance regarding the advance pricing agreement (APA) program, and 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.
Rev. Proc. 2015-41 [PDF 241 KB] is the IRS guidance with respect to advance pricing agreements (APAs).
The IRS also released Rev. Proc. 2015-40 [PDF 245 KB] as 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.
The following provides an initial overview of the 80+ page Rev. Proc. 2015-41.
Rev. Proc. 2015-41 addresses the process of requesting and obtaining APAs from the Advance Pricing and Mutual Agreement program (APMA), and provides guidance on administration of executed APAs.
Rev. Proc. 2015-41 updates and supersedes Rev. Proc. 2006-9, as modified by Rev. Proc. 2008-31 (which is also superseded).
A proposed version of this revenue procedure was released for public comment in Notice 2013-79, and Rev. Proc. 2015-41 was issued following IRS and Treasury Department consideration of the public comments, and also reflects the continuing internal monitoring and modifications of APMA’s administrative procedures concerning effective administration of APAs.
As summarized by the IRS, the principal differences between today’s final revenue procedure and the proposed version in Notice 2013-79 are as follows: