Internal Revenue Bulletin:  2005-37 

September 12, 2005 

INCOME TAX


Rev. Rul. 2005-59 Rev. Rul. 2005-59

Valid return; election to file joint return. This ruling clarifies when documents prepared or executed by the Secretary under section 6020 of the Code, or waivers on assessment constitute valid returns under Beard v. Commissioner, 82 T.C. 766 (1984), aff’d, 793 F.2d 139 (6th Cir. 1986), for purposes of the election to file a joint return under section 6013.  Rev. Rul. 74-203 revoked.

T.D. 9217 T.D. 9217

Final, temporary, and proposed regulations under section 263A of the Code relate to the definition of self-constructed property that is considered produced on a “routine and repetitive” basis in the ordinary course of a taxpayer’s trade or business for purposes of the simplified service cost method and the simplified production method provided by the regulations. For purposes of these methods, property is produced on a routine and repetitive basis only if numerous substantially identical assets are manufactured within a taxable year using standardized designs and assembly line techniques, and the applicable recovery period of the property determined under section 168(c) is not longer than 3 years.

REG-121584-05 REG-121584-05

Final, temporary, and proposed regulations under section 263A of the Code relate to the definition of self-constructed property that is considered produced on a “routine and repetitive” basis in the ordinary course of a taxpayer’s trade or business for purposes of the simplified service cost method and the simplified production method provided by the regulations. For purposes of these methods, property is produced on a routine and repetitive basis only if numerous substantially identical assets are manufactured within a taxable year using standardized designs and assembly line techniques, and the applicable recovery period of the property determined under section 168(c) is not longer than 3 years.

T.D. 9218 T.D. 9218

Final regulations under section 883 of the Code amend the applicability date of final regulations (T.D. 9087, 2003-2 C.B. 781) that relate to income derived by a foreign corporation from the international operation of ships or aircraft. Section 423 of the American Jobs Creation Act of 2004 delayed the applicability date of the final regulations under section 883 for one year so that they will apply to taxable years of foreign corporations beginning after September 24, 2004.

Rev. Proc. 2005-61 Rev. Proc. 2005-61

This procedure amplifies Rev. Proc. 2005-3, 2005-1 I.R.B. 118, which sets forth areas of the Code in which the Service will not issue advance rulings or determination letters. The procedure provides that the Service will not issue advance rulings or determination letters involving the recovery of costs by any investor-owned public utility through a legislatively authorized securitization mechanism. Rev. Proc. 2005-3 amplified.

Rev. Proc. 2005-62 Rev. Proc. 2005-62

This procedure modifies, amplifies, and supersedes Rev. Proc. 2002-49, 2002-2 C.B. 172. Rev. Proc. 2005-62 extends the safe harbor provisions for certain investor-owned utility companies to recover transition costs through a legislatively authorized securitization mechanism to any utility company for the recovery of costs other than transition costs through such legislatively authorized securitization mechanisms. Additionally, this procedure clarifies that payments of principal and interest with respect to evidences of indebtedness in a utility’s securitization transaction for the recovery of transition or specified costs need not be exactly level. Rev. Proc. 2002-49 modified, amplified, and superseded.


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