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December 2002 Plain Language Regulations

Education Tax Credit
These final regulations provide guidance to individuals who may claim the Hope Scholarship Credit and the Lifetime Learning Credit (education tax credit) for the payment of certain postsecondary educational expenses.  The regulations describe the eligibility requirements for a taxpayer to claim the education tax credit.  They also provide rules for calculating the amount of any allowable education tax credit, as well as define what expenses may qualify for the education tax credit.
TD 9034.  Publiched December 26, 2002.
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Defenses to Imposition of Accuracy Related Penalty
Establishing Defenses to the Imposition of the Accuracy-Related Penalty:  These proposed regulations will limit the defenses available to the imposition of the accuracy-related penalty when taxpayers fail to disclose reportable transactions or fail to disclose that they have taken a position on a return based upon a regulation being invalid.  They also clarify the existing regulations with respect to the facts and circumstances that the IRS will consider in determining whether a taxpayer acted with reasonable cause and in good faith in relying on an opinion or advice.  REG-126016-01.  Published December 31, 2002.
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Reduced Maximum Exclusion From Sale of Residence
Reduced Maximum Exclusion of Gain From Sale or Exchange of a Principal Residence:  These proposed regulations explain the exclusion of gain from the sale or exchange of a principal residence for taxpayers who have not owned and lived in the residence for two of the last five years or have excluded gain from another residence in the last two years.  These taxpayers may be entitled to exclude a reduced maximum amount of gain if the primary reason for the sale is a change in place of employment, health, or unforeseen circumstances.  REG-138882-02.  Published December 24, 2002.
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Returns Required for Controlled Foreign Partnerships
Returns Required with Respect to Controlled Foreign Partnerships:  These final and temporary regulations provide instructions for filing Form 8865, that certain U.S. persons that are partners in a foreign partnership must follow, will no longer be contained in the regulations, but only in the instructions to the form.  TD 9033.
Published December 23, 2002.
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Election to Treat Trust as a Part of an Estate
These final regulations provide rules regarding an election to treat and tax a qualified revocable trust as part of an estate.  They also provide clarification of the reporting rules for a trust treated as owned by a grantor or another person for the taxable year ending with the death of the grantor.  TD 9032.  Published December 24, 2002.
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Reduced Maximum Exclusion From Sale of Residence
Reduced Maximum Exclusion of Gain From the Sale or Exchange of a Principal Residence:  These temporary regulations explain the exclusion of gain from the sale or exchange of a principal residence for taxpayers who have not owned and lived in the residence for two of the last five years, or have excluded gain from another residence in the last two years.  These taxpayers may be entitled to exclude a reduced maximum amount of gain if the primary reason for the sale is a change in place of employment, health, or unforeseen circumstances.  TD 9031.  Published December 24, 2002.
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Exclusions of Gain From Sale of Principal Residence
Exclusion of Gain From the Sale or Exchange of a Principal Residence:  These final regulations describe the rules for excluding gain from the sale or exchange of a principal residence, including ownership and use requirements, the definition of a principal residence and how the exclusion applies to property used partially for residential purposes and partially for business purposes.  They also provide that an individual's residence may be entitled to exclude the gain if the individual would have qualified.  TD 9030.  Published December 24, 2002.
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Returns Required for Controlled Foreign Partnerships
Returns Required With Respect to Controlled Foreign Partnerships:  These temporary regulations provide instructions for filing Form 8865, that certain U.S. persons that are partners in a foreign partnership must follow, will no longer be contained in the regulations, but only in the instructions to the form.  REG-124069-02.  Published December 23, 2002.
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Deduction and Capitalization of Expenditures
These proposed regulations provide rules for determining whether a taxpayer may deduct cost that produce some future benefit for the taxpayer, but do not result in the acquisition, creation, or enhancement of a tangible asset.  The regulations identify certain intangible assets, the costs of which must be capitalized (and not immediately deducted) by the taxpayer.  In addition, these regulations proved a fixed period over which taxpayers may deduct certain of these capitalized costs.  REG-125638-01.  Published December 19, 2002. 
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Governing Practice Before the IRS
This document provides advance notice of proposed rulemaking to amend the regulations governing practice before the Internal Revenue Service, which appear in the Code of Federal Regulations and in pamphlet form as Treasury Department Circular 230, Regulations Governing the Practice of Attorneys, Certified Public Accountants, Enrolled Agents, Enrolled Actuaries, and Appraisers before the Service.  REG-122380-02. Published December 19, 2002.
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Reporting Qualified Tuition and Related Expenses
Information Reporting for Qualified Tuition and Related Expenses; Magnetic Media Filing Requirements for Information Returns:  These final regulations relate to information reporting requirements for qualified tuition and related expenses.  They also include provisions for filing information returns reporting qualified tuition and related expenses on magnetic media.  These regulations apply to information returns required to be filed, and information statements required to be furnished, after December 31, 2003.  TD 9029.  Published December 19, 2002.
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Rents and Royalties
These proposed regulations relate to the inclusion in gross income of amounts paid for the future use of property (“advance rentals”).  The proposed regulations allow the Commissioner, in his or her discretion, to provide rules that would allow taxpayers to include advance rentals in gross income in a year other than the year of receipt.  They generally affect taxpayers, using the accrual method of accounting, that receive advance payments for the use of certain items (such as intellectual property) to be designated by the Commissioner.  REG-151043-02. Published December 18, 2002.
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Third Party Contacts
These final regulations provide guidance on third-party contacts made with respect to the determination or collection of the taxpayer’s liability without giving the taxpayer reasonable advance notice that contacts with persons other than the taxpayer may be made.  TD 9028.  Published December 18, 2002.
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Levy Restrictions During Installment Agreements
These final regulations provide for the prohibition of levy while an installment agreement is pending with the Secretary, while an installment agreement is in effect, and following the rejection or termination of an installment agreement. They clarify when levy is prohibited and the effect of that prohibition on the statute of limitations for collection and provide that the IRS may not refer a case to the Department of Justice for the commencement of a proceeding in court for the collection of a tax included in a proposed or active installment agreement while levy is prohibited.  TD 9027.  Published December 18, 2002.
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Low-Income Tax Clinics
These final regulations provide guidance regarding when a qualified Low-Income Taxpayer Clinic (LITC) will be considered an income tax return preparer under the Internal Revenue Code.  They also provide guidance as to when certain persons who are employed by, or volunteer for, such a clinic will be considered an income tax preparer.  TD 9026.  Published December 18, 2002.
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Intercompany Transactions
These final regulations govern the intercompany transaction system of the consolidated return regulations. The regulations confirm that the timing rules of the intercompany transaction system are a method of accounting. They apply to all taxpayers filing consolidated returns. TD 9025. Published December 16, 2002.
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Reductions of Accruals and Allocations
These proposed regulations will provide rules regarding the requirements that accruals or allocations under certain retirement plans not cease or be reduced because of the attainment of any age. In addition to providing generally applicable rules, the proposed regulations will provide special rules for cash balance plans, and will provide rules for the application of certain non-discrimination requirements to cash balance plans. REG-209500-86; REG-164464-02. Published December 11, 2002.  Change Notice published January 17, 2003.  Public hearing to be held on April 9, 2003 at 10 a.m.
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Loans From a Qualified Employer Plan
These final regulations provide guidance relating to loans made from a qualified employer plan to plan participants or beneficiaries. The regulations affect administrators of, participants in, and beneficiaries of qualified employer plans that permit participants or beneficiaries to receive loans from plans. TD 9021. Published December 3, 2002.
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Page Last Reviewed or Updated: 12-Dec-2014