Federal Tax

Transfer Pricing: Audits, Appeals, and Penalties (Portfolio 891)

  • This Portfolio analyzes transfer pricing recordkeeping requirements; audits, appeals and penalties; document requests and summonses; and Competent Authority consideration in transfer pricing cases.


The Detailed Analysis consists of Chapters 1 and 2 of the Tax Management Transfer Pricing Portfolio Series.

Chapter 1, “Audits, Appeals, and Penalties,” discusses the effect on taxpayers of various IRS enforcement programs. The chapter also describes in detail the operation of field audits and review by the Appeals Office, and illustrates taxpayer strategies for dealing with the IRS in those contexts. It also discusses the penalties associated with §482 adjustments.
Chapter 2, “Document Requests and Summons Enforcement,” provides a detailed explanation of §982 document requests, designated summonses, §§6038A and 6038C summonses, and third-party summonses.


Table of Contents

Chapter 12: TRANSFER PRICING, AUDITS, APPEALS, AND PENALTIES by William Dodge, George H. Soba, Esq., Deloitte Tax LLP, Washington, D.C., and Steven C. Wrappe, Esq., Ernst & Young LLP, Washington, D.C.

12:I. Introduction

12:II. Field Audit: Preparation

12:III. Field Audit: Information Gathering and Analysis

12:IV. Field Audit: Examination and Assessment

12:V. Appeals

12:VI. Case Study

12:VII. Related Issues

12:VIII. Penalties Relevant to Section 482 Adjustments

Chapter 13: TRANSFER PRICING DOCUMENT REQUESTS AND SUMMONS ENFORCEMENT by Joseph R. Goeke, Esq., Gregory L. Barton, Esq., and Richard T. Morrison, Esq., Mayer, Brown & Platt, Chicago, Illinois

13:I. Introduction

13:II. Section 982: Requests for Documents Maintained in Foreign Countries

13:III. The Designated Summons Under § 6503(j)

13:IV. Section 6038A Summonses

13:V. Confidentiality and Protective Orders in an Audit Context

13:VI. Third-Party Summonses

Chapter 14: COMPETENT AUTHORITY CONSIDERATION IN TRANSFER PRICING CASES by Brian S. Gleicher, Esq., White & Case, Washington, D.C.

14:I. Introduction

14:II. Treaty Basis for Competent Authority Relief

14:III. U.S. Implementation of the Competent Authority Procedure

14:IV. Procedures for Requesting Competent Authority Assistance

14:V. Limitations on Applicability and Availability of Competent Authority Relief

14:VI. Considerations in Requesting Competent Authority Assistance

14:VII. Negotiation of the Agreement Between the Competent Authorities

14:VIII. Competent Authority Process in U.S.-Initiated Transfer Pricing Cases

14:IX. Competent Authority Process in Foreign-Initiated Transfer Pricing Cases

14:X. Finalization of Competent Authority Agreement

14:XI. Direct Costs and Benefits of a Competent Authority Agreement

14:XII. Indirect Costs and Benefits of a Competent Authority Agreement

William Dodge
George Soba
Principal, Tax / Transfer Pricing
Deloitte Tax LLP
David Blair
Crowell & Moring LLP
Steven Wrappe
Kevin Kenworthy
Miller & Chevalier Chartered
Kathryn Morrison Sneade
Kathryn Morrison Sneade
RS Office Of Chief Counsel, Financi
Megan Kirmil
Attorney (Income Tax & Accounting)
Irs Office Of Chief Counsel