Form 3963

Form 3963-A

A brief description of the taxpayer's operations and history.

An explanation of issues considered and changed.

An explanation of issues considered and not changed.

An organization chart if warranted.

A cover sheet.

Form 4549-B or Form 4605-A.

Forms 886-A

Name, address, EIN/SSN of Taxpayer.. Enter the name, address, and identification number, reflected on the return, on the Taxpayer Info. Screen.

Form and Suffix.Enter the type of return under examination from the pop-up menu.

Activity Code. Enter the three digit activity code listed in Document 6036 that indicates the type and class of tax return examined.

PIA Code. Enter the four digit business activity code number from the tax return, if applicable, for the year under examination.

NAICS Code. Enter the six digit business activity code number from the tax return, if applicable, for the year under examination. IEWS will automatically choose the appropriate six digit code if a four digit code is entered first, and, conversely, IEWS will choose the appropriate four digit code if a six digit code is entered.

Segment 4. Enter the applicable fourth segment code from Document 6036.

Segment 5. Enter the applicable fifth segment code from Document 6036.

Segment 6. Enter the applicable sixth segment code from Document 6036.

FCC. From the pop-up menu, enter Yes or No as to whether the taxpayer under examination is a foreign controlled corporation.

Foreign Control Country. From the pop-up menu, enter the name of the country where the corporation, partnership, trust, or person that controls the taxpayer under examination is located.

Percent of Control. Enter the percentage of ownership that the foreign entity or individual has of the taxpayer under examination.

Foreign Control Name. Enter the name of the foreign entity or individual that controls the taxpayer under examination.

BOD, Industry, Director, Territory, and Group. Enter the BOD (Business Operating Division) number, Industry number, Director number, Territory number, and Group number of the IE's team.

Support Audit? (From Return Information screen) Toggle between N for not a support and Y for is a support audit.

Type of Referral (From Return Information screen). Choose original, supplemental, or claim from the pop-up menu.

Corrected Referral(From Return Information screen). Choose yes on no from the pop-up menu.

Disposal Code (From Return Information screen). IEWS will automatically apply codes 02 for no-change cases if a no-change issue with no dollar amount is entered in the Issue Screen, 03 if an agreed issue is entered in the Issue Screen, and 08 if an unagreed issue is entered. For other closures enter a code from the pop-up menu.

Start Date (From Return Information screen). Enter the date when time was first applied to the case.

Report Date (From Taxpayer Info. screen). IEWS enters the date that the report is completed.

Subsidiary of a Consolidated Return (From Taxpayer Info. screen). In the case of a support audit the EIN and name of the parent company of the taxpayer under examination will be entered.

Business Operating Division(From Taxpayer Info. screen). In the case of a support audit the BOD of the parent company and the subsidiary will be entered.

Admin Screen. The Admin Screen contains a number of special feature questions regarding International Boycott Reports, Summons, Economist Referrals, Expert Witnesses, Counsel involvement, the requirement for a MAP Report, the requirement for a Pattern Letter, IFASP involvement, ISP involvement, and section 982 requests. If any of these special features are involved in an examination, the appropriate pop-up menus should be used to indicate that the feature is present and the remaining additional information should be entered.

Recommendations of adjustments by the IE are entered on the Issue Screen. The Issue Screen is accessed from the Referral Screen. The Referral Screen is accessed from the Return Screen. The year for the entry of a recommended adjustment is selected by toggling among the years entered on the return screen. After the applicable year is selected on the return screen, the Issue Screen is accessed to enter the recommended adjustment.

The first step for entering a recommended adjustment is to determine the applicable UIL Code. The UIL Codes are accessed from a pop-up menu that lists the UIL Codes in descending order based on the Internal Revenue Code. The numerous UIL codes all have a brief description.

After the UIL Code has been selected, the next step is to identify the type of adjustment. Type 1 adjustments are adjustments to taxable income. Type 2 adjustments are adjustments to foreign tax credits. Type 3 adjustments are penalties. Type 4 adjustments are other tax changes. The most common types of "other tax change" is a change to the tax on U.S. source income reported on Form 1042 and changes to the IRC Section 936 Possession Corporation tax credit.

After the type of adjustment is entered, the amount of the adjustment is entered. Special care must be taken when entering the amount of an adjustment to foreign tax credits. Amounts entered as positive adjustments to foreign tax credits decrease FTC allowed to the taxpayer. Conversely, amounts entered as negative adjustments to foreign tax credits increase the amount of FTC allowed to the taxpayer.

The next item on the Issue input screen is a yes or no question as to whether the recommended adjustment is the result of a joint venture issue.

The next item is a pop-up menu of country codes to identify the country that is the source of the recommended adjustment.

The next item is a pop-up item that identifies the recommended adjustment as a primary or alternative adjustment.

The next item is a pop-up item that indicates whether the recommended adjustment is agreed or unagreed.

A brief description of the taxpayer's U.S. business operations and the operations of all subsidiaries involved in the MAP request, including the control and ownership of all of the entities involved.

Copies of the parts of the examination report and workpapers pertinent to the MAP issues.

A statement regarding the degree of the taxpayer's cooperation in providing information.

If the taxpayer submits a MAP request prior to the completion of the MAP, provide a statement whether the taxpayer agrees or disagrees with the facts in the MAP report. If the taxpayer disagrees with the facts in the MAP report, include an explanation for each disagreement.

A status report of the statute of limitations for each year included in the MAP request.

Unless an evaluation of the MAP issues, taking into account the U.S. taxpayer's business operations and the arm's length standard, is provided in the body of the report such an evaluation should be made. If the MAP issue(s) is a recurring item, provide the status of any prior adjustments and the date any pattern letter(s) 1853(P) and / or 1915(P) were issued.

Comments as to whether a formal or informal request for economic assistance was made.

Attach either pattern letter 1853(P) and / or 1915(P) for the current examination, with any required schedules and / or attachments, to the Form 3963.

International Examiners Report

Taxpayer's Name

Taxable Year(s)

Primary Adjustments: Income adjustments. Use a separate line item to identify each proposed Income Adjustment recommended and indicate the applicable IRC section that most clearly identifies the particular international issue.

Other Adjustments. List all proposed adjustments other than those affecting taxable income and indicate the applicable IRC section that most clearly identifies the particular international issue.

Alternative Adjustments. Identify a separate Form 4549-B as "Alternative Adjustments to Income" . List each proposed alternative adjustment and show the dollar amount of adjustments by year(s). If more than one alternative adjustment is recommended, identify each as First Alternative, Second Alternative, etc. Provide an explanation of alternative adjustments in the body of the report.

Reflect dollar amounts in the appropriate "year" columns.