The IRS and Treasury on Nov. 20 issued a notice addressing the
effective date for 2011 Temporary Regulations that apply to amounts
paid to acquire, produce, or improve tangible property (commonly
referred to as the "repair regulations"). Notice 2012-73
provides that the effective date of the Temporary Regulations will
be amended to apply to taxable years beginning on or after Jan. 1,
2014.
Taxpayers will be permitted to apply the Temporary Regulations
to taxable years beginning on or after Jan. 1, 2012. Further, final
regulations are expected to be issued in 2013 to apply to taxable
years beginning on or after Jan. 1, 2014.
Background
On Dec. 23, 2011, Treasury and the IRS issued Temporary
Regulations (T.D. 9564) that provide guidance on amounts paid to
improve tangible property (see Tax Flash 2011-14 for more
information). The effective date of the Temporary Regulations made
them applicable to taxable years beginning on or after Jan. 1,
2012.
