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an * * * (ANPRM) and should not impose a moratorium on
examination”), the discussions turned to the drafting of the
ANPRM, which was filed with the Federal Register on January 23,
2002, and published the following day. See 67 Fed. Reg. 3461
(Jan. 24, 2002).
Another document obtained by petitioners pursuant to their
FOIA request and attached to their reply to respondent’s
objection to the motions is a memorandum dated February 26, 2002,
and entitled “Memorandum for LMSB and SB/SE [Small Business/
Self-Employed Division] Employees” (the LMSB-SB/SE memorandum or
the memorandum). The memorandum is from the commissioners of
those two divisions, and the subject of the memorandum is:
“Guidelines for the Application of Advance Notice of Proposed
Rulemaking for Intangibles Under Secs. 263(a)”. The memorandum
advises: “The rules and standards in the ANPRM are not Service
position and do not provide any authority for the concession of
[capitalization issues discussed in the ANPRM].” The memorandum
notes, however, the statement in the ANPRM that “the IRS and
Treasury Department expect to propose [the 12-month rule]” and
that that rule “would be consistent with * * * U.S. Freightways
Corp. v. Commissioner, 270 F.3d 1137 (7th Cir. 2001), [revg. 113
T.C. 329 (1999)] * * * [which] recognized a ‘a one-year rule’ for
purposes of allowing a deduction for prepaid license fees and
insurance premiums.” The memorandum states that, although “the
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