"That's caused some hesitation," Ryan said. "Veritas was ultimately victorious, but only after years of litigation."
Companies that don't want to ask the IRS for approval ahead of an audit are advised to get their defenses ready. Companies need to coordinate their documentation of pricing in every country where they operate and hire economists and tax experts to document and analyze their transfer pricing method well in advance of an audit.
"As you can imagine, for multinational companies, that can be incredibly burdensome," Ryan said.