On August 12 the IRS issued final guidance (Rev. Proc. 2015-40) significantly updating procedures for requesting and obtaining an advance pricing agreement (APA) from the Advance Pricing and Mutual Agreement (APMA) program. All new APA requests will need to be filed under these “new procedures”, however, an APA request may be filed under the prior procedures (Rev. Proc. 2006-9), if a new and substantially complete request is filed no later than December 29, 2015.
The new procedural guidance, reflects a number of public comments from the business community and advisors following the draft version released by the IRS in November 2013. In some respects, the new guidance also reflects the OECD’s base erosion and profit shifting (BEPS) project and other international tax trends. The new procedures incorporate many of the principles that have guided the APA process in the past and reflect the IRS’s continuing commitment to the APA process as a mechanism for avoiding and resolving transfer pricing disputes.
The new procedures modify prior practice in terms of:
For full details of the Revenue Procedure 2015-41 see the pdf link below. At 87 pages it is not a short read, but contains a very interesting insight into the current thinking of the IRS in respect of APAs.