Making Dispute Resolution Mechanisms More Effective – Consolidated Information on Mutual Agreement Procedures 2023

United States

Recent developments relating to MAP in United States prior to 15 August 2023

Developments relating to MAP in the tax treaty network

• The United States signed a new treaty with Croatia, and the United States Senate has approved the Chilean treaty for ratification. Neither treaty has entered into force.

• Amending protocols entered into with Japan, Spain, and Switzerland, which incorporate mandatory and binding arbitration provisions to resolve MAP disputes under those treaties, are now in force.

Other developments relating to MAP

• No developments were reported

Latest Action 14 Peer Review report

13 August 2019 - https://doi.org/10.1787/305147e9-en

Tax treaty network of United States

• 62 treaties, applicable to 70 jurisdictions (covering all treaties signed, although not necessarily in force)

• status of MLI: not signed.

Table 1. State of play of United States' tax treaty network

Treaties in line with the Action 14 Minimum Standard following MLI impact	Treaties where actions are ongoing to make them in line with the Action 14 Minimum Standard	Following impact/actions, remaining treaties that are not in line with Action 14 Minimum Standard
35	--	27

Source: OECD

United States' MAP programme

Organisation of competent authority function

• 114 persons:

  • one head of unit, leading four groups

  • 109 persons working on MAP cases:

    • 97 persons work on attribution/allocation MAP/APA cases and 12 persons work on other MAP cases.

• contact persons for MAP requests:

  • for attribution / allocation cases: Commissioner, Large Business and International Division, Internal Revenue Service, 1111 Constitution Avenue, N.W., Washington, DC 20224, SE:LB:TTPO:APMA:K (Attention: APMA)

  • for other cases: Commissioner, Large Business and International Division, Internal Revenue Service, 1111 Constitution Avenue, N.W., Washington, DC 20224, SE:LB:TTPO:APMA:TAIT:K (Attention: TAIT).

Figure 1. Competent Authority Organisational Structure

Source: OECD

Table 2. Guidance on the MAP process

MAP guidance	Rev. Proc. 2015-40, section 3 and the Appendix	https://www.irs.gov/pub/irs-drop/rp-15-40.pdf (Section 2 to be referred to for form and content of a MAP request, including information requirements)
	Web page	https://www.irs.gov/businesses/overview-of-the-map-process
MAP profile	14 October 2022	https://www.oecd.org/tax/dispute/united-states-dispute-resolution-profile.pdf

Overview of United States' MAP Statistics for 2022

Please refer to https://www.oecd.org/tax/dispute/map-statistics-united-states.pdf for details with respect to United States' MAP Statistics.

Figure 2. Cases Closed in 2022

Source: OECD

Figure 3. Evolution of the United States’ MAP caseload (2016-22)

Source: OECD

Table 3. Overview of the United States’ MAP caseload for 2022

Inventory for year 2022	Opening Inventory 1/1/2022	Cases started	Cases Closed	End Inventory 31/12/2022
Attribution/allocation cases	424	145	129	440
Other cases	263	80	125	218
Total	687	225	254	658

Source: OECD

Table 4. United States’ average time to resolve MAP cases in 2022

Cases resolved in year 2022	Pre-2016 cases		Post-2015 cases		All
	Number of cases	Average time	Number of cases	Average time	Number of cases	Average time
				Start to End
Attribution / Allocation cases	23	97.37	106	31.06	129	42.88
Other cases	24	103.55	101	22.31	125	37.91
All cases	47	100.53	207	26.79	254	40.43

Source: OECD