Daily Tax Update - December 14, 2012: IRS Amends Applicability Date for Temporary "Repair Regs"

IRS AMENDS APPLICABILITY DATE FOR TEMPORARY “REPAIR REGS”:  The IRS has released amendments to temporary regulations relating to guidance regarding deduction and capitalization of expenditures related to tangible property, also referred to as the "repair regs."

  • The amendments change the applicability date of the temporary regulations from tax years beginning on or after January 1, 2012, to tax years beginning on or after January 1, 2014. 
  • Taxpayers may choose to apply the temporary regulations to tax years that begin on or after January 1, 2012.
  • For additional information, contact  -Aaron P. Nocjaranocjar@steptoe.com

CONGRESS LEAVES FOR WEEKEND WITH LITTLE PROGRESS ON FISCAL CLIFF:  Congress will return Monday in the hope of reaching an agreement on resolving the outstanding issues on the fiscal cliff by the end of the year deadline.  House Speaker John Boehner characterized his hour-long meeting with President Obama yesterday as a "frank" discussion, but the meeting produced no breakthroughs in reaching a final agreement.

INTERNAL REVENUE SERVICE - CIRCULAR 230 DISCLOSURE:  As provided for in Treasury regulations, advice (if any) relating to federal taxes that is contained in this communication (including attachments) is not intended or written to be used, and cannot be used, for the purpose of (1) avoiding penalties under the Internal Revenue Code or (2) promoting, marketing or recommending to another party any plan or arrangement addressed herein.

STEPTOE & JOHNSON LLP - TAX PRACTICE  Steptoe & Johnson LLP has one of the largest and most diverse law firm tax practices in the country.  The practice covers the entire spectrum of federal taxation, including representation of businesses before the Congress, Treasury and the national office of the IRS; transactional planning for domestic and multinational corporations; complex audit and controversy work for corporations and other business interests contesting IRS adjustments; litigation before the Tax Court, Court of Federal Claims, district courts, courts of appeals and the Supreme Court.  The firm's tax practice also encompasses all aspects of employee benefits (ERISA), executive compensation, tax-exempt organizations and charitable giving.  Steptoe has an extensive state and local tax practice, representing an array of business clients on complex sales and use tax, corporate income tax and property tax matters, both advising those clients and handling audits, administrative appeals, and litigation for them. Read more information on Steptoe's tax practice.