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IRS Defers Effective Date of Repair Regs

The Internal Revenue Service and the Treasury Department released Notice 2012-73 on November 20, 2012. In this notice they state that “...the Service and the Treasury Department will publish in the Federal Register a Treasury Decision amending the temporary regulations to apply to taxable years beginning on or after January 1, 2014, while permitting taxpayers to choose to apply the temporary regulations to taxable years beginning on or after January 1, 2012, and before the applicability date of the final regulations. Taxpayers can still choose to apply the provisions of the temporary regulations to taxable years beginning on or after January 1, 2012, and before the applicability date of the final regulations may continue to obtain the automatic consent of the Commissioner of Internal Revenue to change their methods of accounting under Revenue Procedures 2012-19, 2012-14 I.R.B. 689, and 2012-20, 2012-14 I.R.B. 700.”

During 2013, the Service and the Treasury Department expect that final
Regulations will be published explaining the tax treatment of amounts paid to acquire, produce, or improve tangible property under sections 162 and 263(a), and on how to account for, and dispose of, property subject to section 168.

The Notice states that “…taxpayers choosing to apply the provisions of the final regulations to taxable years beginning on or after January 1, 2012, the Service and the Treasury Department expect to publish procedures for obtaining automatic consent to change a method of accounting when the final regulations are published.” To read the whole notice, please click here

 

Craig Alberts is the Private Business Services Group Director. Craig has over 30 years experience, working with business owners in a wide variety of industries on both individual and business accounting issues.

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