LB&I Keeps Transfer Pricing Examination Process Current

The IRS continues to review and update the Transfer Pricing Examination Process (“TPEP”), taking into account revisions to the Internal Revenue Manual regarding the development of IRC 482 cases and routine feedback from examiners, taxpayers, practitioners, and other stakeholders. The TPEP, initially released on June 18, 2018, provides a framework and guide for transfer pricing examinations, including their planning, execution and resolution.

Although updates have not materially changed the core content of the TPEP as originally issued, they do serve to highlight the ongoing commitment of the IRS to the TPEP and the best practices and processes it provides. Taxpayers are reminded that the TPEP not only contains guidance in relation to the examination of transfer pricing issues but also in relation to the selection of issues.

Specifically, the TPEP identifies seven different approaches that examination teams can deploy to perform an initial assessment of transfer pricing risk prior to receiving transfer pricing documentation, including analyzing the country-by-country report and performing ratio analyses. Review of the applicable guidance for these approaches can assist with taxpayer’s own assessment of risk and documentation planning for the current year.

For Duff & Phelps’ coverage of the initial release of the TPEP, please see “LB&I’s Issuance of the New Transfer Pricing Examination Process”.

The current version of the TPEP, revised June 6, 2019, can be found here. The IRM manual transmittal revising IRM 4.61.3, International Program Audit Guidelines, Development of IRC 482 Cases, can be found here.

Read Transfer Pricing Times – June 2019

LB&I Keeps Transfer Pricing Examination Process Current 2019-07-09T00:00:00.0000000 /insights/publications/transfer-pricing/transfer-pricing-times-june-2019/lbi-transfer-pricing-examination-process-current /-/media/assets/images/publications/transfer-pricing/transfer-pricing-times-june-2019/transfer-pricing-times-june-issue-irs.ashx publication {B062D54C-1425-4A04-8F9F-95EA14068E6D} {4C8AF8F6-BAEC-4E94-ACC7-7AC0F36685FC} {A3FAE5E6-C751-4276-AC87-234103D93C38} {2E7EDEAD-E023-488B-8F09-E024DFB699C6} {80211481-0C08-4D73-8897-1EC6A32EC65F} {39D6E6F9-3469-472B-8F01-56C403009AE2} {00DD564D-6E8A-4A1D-980F-FEF2F6DA16CF}

Related Services

Valuation Advisory

Valuation and consulting for financial reporting, federal, state and local tax, investment and risk management purposes.

Valuation Advisory

Transfer Pricing

Comprehensive transfer pricing advisory covering compliance, planning, controversy and implementation.

Transfer Pricing

Transfer Pricing Operational Services

Enhance internal strategic reviews, implementation strategies and assistance in evaluating planning structures and third-party tools.

Transfer Pricing Operational Services