James E. Blasius and Mary Jo Blasius, et al. - Page 35

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          the Commissioner.  Rather, as noted supra, they describe “rules             
          and standards” that the IRS and Treasury “expect to propose” (not           
          final rules and standards), and they invite public comments                 
          “regarding those standards”.  Although they suggest that a                  
          deduction for “all employee compensation” (which would include              
          ACC’s loan origination/acquisition costs) might be proper, that             
          approach is only one of several alternative approaches to the               
          treatment of employee compensation suggested therein; and                   
          deductibility of ACC’s professional fees under the 12-month rule            
          is, at best, unclear, as those costs are not among the costs                
          specifically referred to as deductible when they fall within the            
          12-month rule.  Moreover, to conclude that the ANPRM and                    
          Announcement 2002-9 constitute “applicable published guidance”              
          under section 7430(c)(4)(B)(iv), binding on respondent with                 
          respect to the capitalization rules discussed therein, would be             
          to negate the December 31, 2003, effective date provided in the             
          final INDOPCO regulations and anticipated in the proposed                   
          regulations, a date that respondent has uniformly enforced in               
          connection with requests to change to a method of accounting                
          provided by the final regulations (and, in particular, by section           
          1.263(a)-4(f)(1), Income Tax Regs., which sets forth the 12-month           
          rule).  See Rev. Proc. 2004-23, sec. 2.07, 2004-1 C.B. 785, 786.            
               Under section 7430(c)(4)(B)(iv), “notices” and                         
          “announcements” are included in the list of IRS pronouncements              






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