On this page
What is the Pre-Filing Agreement program (PFA)
ob体育 to request a pre-submission conference
When to submit a PFA request
ob体育 to submit a request
Ways to send the request
What to expect next
Resources
What is the Pre-Filing Agreement (PFA) program
The IRS Pre-Filing Agreement Program (PFA) is a proactive tool available to taxpayers within the jurisdiction of the IRS’s Large Business and International division (LB&I). The program allows LB&I taxpayers to resolve potential tax issues before filing their return. This agreement offers tax certainty, reduces audit risks, and encourages voluntary compliance.
If accepted into the program, there is a user fee of $181,500.
Revenue Procedure 2016-30 provides program authority.
Program statistics
- PFA applications have been received across a variety of geographic practice areas and industries.
- From 2019-2024, the PFA request acceptance rate was 67%.
- From 2019-2024, the research credit and IRC Section 165(g)(3) worthless stock deduction issues accounted for 57% of PFA requests. Other requests included sale/leaseback transactions, loans for federal tax purposes, and passthrough elections.
ob体育 to request a pre-submission conference
If you’re unsure whether a PFA is right for your situation, you may request a pre-submission conference to discuss your issue. This meeting gives you a chance to present the issue in question and determine if submitting a formal request makes sense.
- Prepare a written statement describing the issue you want to discuss
- Include a summary of the relevant facts and the tax year involved
- If you are currently under examination by LB&I, contact your case manager
- If you are not under examination, you may submit your request by email
When to submit a PFA request
To fully maximize the benefits of a PFA and reach resolution timely, before the due date of the tax return, the PFA request needs to be submitted as early as reasonably possible. You’ll work closely with the IRS throughout this process.
IRS recommends submitting your PFA request:
- No later than 60 days after the transaction in question is completed
- Or within 30 days after the close of the tax year (whichever comes first)
This early submission gives the IRS 8 to 9 months to review, develop, and finalize the agreement.
ob体育 to submit a PFA request
Follow these steps to start the process. See Revenue Procedure 2016-30 for detailed guidance to ensure your request is submitted accurately.
Step 1: Identify the issue
- Refer to the Pre-Filing Agreement likely suitable issues and documentation page.
- For research credit issues, the IRS recommends attaching certain documentation to your request.
- For requests involving an issue not on the PFA likely suitable issues and documentation page, please provide as much information as possible, including a detailed description of the availability of documents for review.
- If your issue is pending litigation with the IRS for an earlier taxable year, then it is ineligible for a PFA.
Step 2: Confirm document availability
- Ensure documents to support your position are readily available. Clearly state whether these documents are ready for review or attach them to your request.
- If any documents are not available for review, explain why and identify the alternate documentation you can provide.
Note: If you do not confirm document availability or provide a sufficient explanation, your request may face delays or be denied.
Step 3: Finalize and submit your request
- Review your request to confirm it’s complete.
- If using a representative, include a signed Form 2848, Power of Attorney and Declaration of Representative, with your request.
Ways to send the request
If you are currently under examination by LB&I, email your PFA request to the LB&I team or case manager in charge. Otherwise, email your PFA request to [email protected].
What to expect next
- The IRS will acknowledge receipt of your request within five business days by email or phone.
- The IRS will review your request to ensure it meets the Revenue Procedure criteria.
- The IRS may contact you by email or phone for more information, if needed.
Please note that submitting a request does not guarantee acceptance. If your request is denied you will receive an explanation and further guidance on possible next steps by email or phone.
The IRS usually decides within 60 calendar days. If your request involves complex issues and takes longer, the IRS will notify you. Contact the IRS at [email protected] for status updates.