CCA 201008037: Allocation reports may qualify as other records under the regulations

Plain-English summary

Chief Counsel advised that TAM 201002036 accurately describes the National Office position on whether an accounting firm’s allocation report is an “other record” under the regulations. The field must examine information supplied by the taxpayer and then decide, based on all the evidence, whether the taxpayer provided sufficient documentation to support the allocation. The CCA also states that there is no per se rule automatically excluding information supplied by a taxpayer.

Ruling snapshot

• Question: Must the field consider an accounting firm’s allocation report and other taxpayer-supplied information when evaluating sufficient documentation?
• Outcome: Advice given
• Key authorities: IRC § 263

Full text (IRS public release)

ID: CCA_2010012115125915 Number: 201008037
Release Date: 2/26/2010
Office: ----------
UILC: 263.08-04

From: ---------------
Sent: Thursday, January 21, 2010 3:13:12 PM
To: --------------------
Cc: ------------------------------------------------------------------------------------------ Subject: RE: 263 allocation issue

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I think TAM 201002036 accurately describes the National Office position on whether the accounting firm's allocation report is an "other record" within the meaning of the regulations. That TAM basically says that the field must examine any information the taxpayer provides, but the field then determines based on all the evidence provided whether the taxpayer has provided "sufficient documentation" to support the taxpayer's allocation.

Not sure I read the rebuttal as being contrary to the TAM (I read it as engaging in an analysis of whether the information was "probative"), but nonetheless, I agree with you that there is no per se rule that automatically excludes consideration of any information a taxpayer provides.

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