Advance Pricing Agreement Changes Won’t Limit Program, IRS Says

The IRS’s plan to update the process of applying for advance pricing agreements reflects “no intent to limit or decrease” the number of requests for the agreements that are accepted, an official said Thursday.

“We fully expect to see the program continue to grow, but we want the APA process to be a good experience for taxpayers,” said John Wall, acting director of the IRS’s Advance Pricing and Mutual Agreement program.

Tax authorities and companies enter into advance pricing agreements, or APAs, to agree on companies’ transfer pricing over a set number of years—helping give certainty that the businesses ...