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IRS Proposes Regulations On Capitalization Of Tangible Assets
March 10, 2008
FEI Summary
On March 7, 2008, the Internal Revenue Service (IRS) issued proposed regulations to clarify the treatment of expenditures incurred in selling, acquiring, producing or improving tangible assets.
As noted in IRS News Release 2008-35, "These proposed regulations replace the regulations that were proposed by the Treasury Department and the IRS in August 2006.”
The proposed regulations released March 7 were published in the Federal Register on March 10, and are entitled, “Guidance Regarding Deduction and Capitalization of Expenditures Related to Tangible Property.”
The IRS noted that the proposed regulations released on March 7 “take into account many of the comments received in response to the 2006 proposed regulations.”
June 9 is the comment deadline on the proposed regulations relating to tangible assets released March 7. A public hearing is also scheduled for June 24.
FEI's Committee on Taxation (COT) is following this issue.
Separately, on February 27, COT filed a comment letter with the Chairmen and Ranking Members of the Senate Finance Committee and House Ways and Means Committee, reiterating COT's opposition to their revenue-raising tax proposals.
For questions about COT, contact Matt Miller in FEI's Washington, D.C., office, by email: mmiller@financialexecutives.org or by telephone: 202-626-7804,
Prepared by: Edith Orenstein, Director, Technical Policy Analysis, Financial Executives International (FEI). This summary does not represent FEI opinion unless specifically noted above.
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