To meet the new 30-day issue disclosure requirement, a taxpayer must provide as much information as possible within 30 days of the transaction being completed or of becoming aware of an issue having a material impact on the federal income tax liability. This information should be sufficient to facilitate preliminary resource planning and risk assessment by the Compliance Assurance Process (CAP) team. The taxpayer must then complete the full disclosure within 90 days of the transaction being completed or of becoming aware of the issue. The latest date for the taxpayer to submit disclosures is 90 days after the end of the tax year.
This change from 90 to 30 days is intended to allow sufficient time for issue resolution in a pre-filing environment, moving from a periodic or quarterly disclosure model to a more contemporaneous disclosure model. This approach better positions the taxpayer to meet the number of open years eligibility criteria going forward.
Sources:
T.D. 9350
Notice 2017-8
T.D. 9328
IRS Proposed Regulations REG-109348-22
T.D. 9853
