slides - NABE

Setoff Claims Taxpayers generally cannot use §482 affirmatively Taxpayers may report the results of a controlled transaction in amanner different than the actual transaction if they do so on anoriginal return. Treas. Reg. §1.482-1(a)(3). But taxpayers also have a limited opportunity to make taxpayerfavorabletransfer pricing adjustments through setoff claims followinga primary adjustment Setoff claim must be submitted within 30 days of the earlier of receipt ofexamination report (30-day letter) or notice of deficiency (90-day letter) Setoff claim may relate to any other non-arm’s-length transaction betweenthe same controlled parties in the same year Taxpayer must establish that the setoff transaction was not arm’s lengthand also establish the arm’s-length price16