Legal Alert: IRS provides additional guidance on cost of removal, salvage and normalization
Posted on Oct 20, 2021 in Energy Tax
In PLR 202141001 (July 15, 2021) the IRS expanded upon the guidance it provided in PLR 202033002 (Aug. 14, 2020) regarding the proper ratemaking treatment of cost of removal (COR) and salvage under the normalization rules. As explained in our alert, the IRS: Reaffirmed that COR is not subject to the normalization rules, but salvage must be normalized. The computation of the reversal of...
Legal Alert: IRS extends continuity safe harbor for renewable energy projects
Posted on Jun 30, 2021 in Energy Tax, Legal Alerts
On June 29, 2021, the IRS issued Notice 2021-41, which provides a further extension of the continuity safe harbor and revises the “facts and circumstances” rules:- For PTC and ITC-eligible projects for which construction began in calendar years 2016 through 2019, the continuity safe harbor is extended to six years.- For PTC and ITC-eligible projects for which construction began in...
Legal Alert: Warren bill fundamentally changes financial account reporting requirements and substantially increases IRS funding
Posted on May 28, 2021 in Legal Alerts, Tax Accounting
On May 24, 2021, Sen. Warren introduced Senate Bill 1788, the “Restoring the IRS Act” (the Proposed Legislation). The Proposed Legislation generally (1) imposes new information reporting obligations on financial institutions relating to various types of transaction information associated with an account of an individual or business at that institution, (2) provides for significantly...
IRS Releases Guidance on the Transition Tax Provision
Posted on Jan 2, 2018 in International Tax, News
Last week, the IRS released Notice 2018-07 (the “Notice”), which provides guidance on calculating the so-called “transition tax” of the Tax Cuts and Jobs Act. While the Notice itself does not contain any specific regulations, it does describe the regulations that the IRS plans to issue at a later date, including guidance on the effects that the future regulations will have. The Notice...