IR-2004-100, July 29, 2004 WASHINGTON — The Internal Revenue Service and the Treasury Department today announced that tax issues confronting the banking and heavy equipment distributor industries have been selected for the Industry Issue Resolution (IIR) Program, which reviews complex business tax issues to provide consistency and clarity for affected taxpayers. The banking industry issue involves how lending institutions should determine interest income on “non-performing” loans. There are different book and tax accounting standards for when a loan becomes “non-performing” for purposes of determining interest accruals. The heavy equipment distributor industry issue involves the valuation of parts inventory. Inventory valuation is a factor that determines the “cost-of-goods-sold.” IRS and the industry will seek to determine a valuation method that reduces burden and provides certainty and consistency for affected taxpayers. "The IIR program provides clarity and consistency to complex tax issues, while reducing the burden for taxpayers,” said Large and Midsize Business Commissioner Deborah M. Nolan. “These are issues that can be resolved up front for all affected taxpayers so that they do not become contested issues downstream during tax audits on a case-by-case basis.” Since its inception in 2000, the IIR program has resulted in resolution of many different tax issues cumulatively affecting thousands of taxpayers in many different lines of business, including restaurants, gas stations, day-care providers, health-care providers, cable television and car dealerships. Business associations and taxpayers can submit at any time tax issues that they believe could be resolved though the IIR program. The IIR project selection criteria and submission procedures are in Revenue Procedure 2003-36 available at IRS.gov. Related Item: Industry Issue Resolution Program Submissions (PDF 92KPDF) Subscribe to IRS Newswire
