Consolidated return requirements date to 1917
Section 240(d) of Revenue Act of 1921 permitted consolidation of accounts to correctly reflect income of related parties
Section 45 added to Code in 1928 (direct predecessor of Section 482)
Regulations under Section 45 issued in 1935 (applied arm’s length standard)
Section 45 became Section 482 in IRC of 1954
International Enforcement Program ("IEP") implemented in 1960
Congress considered amending Section 482 in 1962, but instead suggested study and issuance of new Section 482 regulations
Treasury issued final Section 482 regulations in 1968
- Services (arm’s length, with cost safe harbor for non-integral services) - Tangible property (prioritized TPMs: CUP, RPM, CP, some other method, i.e., "fourth methods") - Intangible property (CUT and 12 factors when CUT not applicable)
Congress enacted Section 982 (formal document request exclusionary rule) in 1982
Congress amended Section 367(d) to create the deemed contingent payments regime for certain outbound transfers of intangibles (replacing the principal purpose advance ruling exception previously applicable to intangibles transfers) in 1984
Congress amended Section 367(d) and Section 482 in 1986 to add the commensurate with income standard for transfers of intangibles and directed IRS to conduct a comprehensive study of transfer pricing rules
Congress enacted Section 1059A in 1986
Treasury issued its 1988 White Paper which focused on:
- Access to transfer pricing information - Transfers of high-profit intangibles
Congress substantially expanded Section 6038A in 1989 to target perceived inbound transfer pricing abuses and to provide IRS power to coerce production of foreign-held transfer pricing information
Congress held hearings regarding perceived inbound transfer pricing abuses, further expanded Section 6038A and enacted Section 6038C in 1990
Congress extended Section 6662 accuracy-related penalty to address Section 482 adjustments in 1990
Congress enacted Section 6503(j) "designated summons" provision in 1990
Proposed Section 482 regulations issued in 1992
Section 6662 transfer pricing penalties expanded in 1993
Temporary and proposed Section 482 regulations issued in 1993
Temporary and proposed Section 6662(e) regulations issued in 1994
Final Section 482 regulations issued in 1994
- Tangible property (best method rule; TPMs: CUP, RPM, CP, CPM, PS and "unspecified methods") - Intangible property (best method rule; TPMs: CUT, CPM, PS and "unspecified methods")
Final Section 482 cost sharing regulations issued in 1995
Final Section 6662(e) regulations issued in 1996
Final Section 482 cost sharing regulations amended in 1996
Final Section 482 cost sharing regulations amended in 2003 (stock options)
Proposed Section 482 regulations issued in 2003 (services and intangible property)
Proposed Section 482 regulations issued in 2005 (cost sharing)
IntlTaxLaw.Com IntlTaxLaw.Com IntlTaxLaw.Com IntlTaxLaw.Com IntlTaxLaw.Com