We have intercompany pricing, but no real section 6662 documentation. Is that automatically a penalty disaster?
The company does have contracts and invoices, but not the kind of formal transfer pricing study people usually mean when they talk about section 6662 documentation. Now that a return review is happening, management is acting like the absence of a formal study automatically means a 20% or 40% penalty is already locked in. I am not sure that is the right way to think about it.
What I need is a calmer framework. If the missing documentation materially weakens our defense but does not by itself decide the entire penalty case before any adjustment happens, then we should act urgently without becoming fatalistic.
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