This procedure provides that certain taxpayers that are required to use inventories in order to clearly determine income may obtain expeditious consent to change their method of accounting to an overall accrual method, or to an accrual method of accounting in conjunction with a request to change to a special method of accounting. 85-36 modified and superseded. 85-37 modified and superseded. An administrative procedure is provided by which a property and casualty insurance company determines whether a line of business is an eligible line of business for purposes of computing discounted unpaid losses based on the taxpayer's historical payment pattern. Administrative guidance is provided concerning the proper amount of deduction for property and casualty insurance companies that, pursuant to regulations, increase unpaid losses by the amount of estimated salvage recoverable take into account on a company's annual statement.
Guidance is provided on the treatment of estimated salvage recoverable relating to insurance pools.
In addition, the date is extended for property and casualty insurance companies to disclose the extent to which estimated salvage recoverable relating to certain insurance pools was taken into account as a reduction to unpaid losses shown on the company's annual statement. Certain relief is granted to taxpayers and tax practitioners who are unable to meet deadlines for filing returns and paying taxes due to the destruction caused by Hurricane Andrew. This announcement discusses deductibility of contributions to organizations for Hurricane Andrew Relief, and explains how newly formed organizations may expedite consideration of their applications for recognition of exempt status.