Source: https://www.federalregister.gov/documents/2005/08/03/05-15362/guidance-regarding-the-simplified-service-cost-method-and-the-simplified-production-method
Timestamp: 2018-05-25 01:36:36
Document Index: 314439465

Matched Legal Cases: ['art 1', '§\u20091', '§\u20091', '§\u20091', '§\u20091', '§\u20091', '§\u20091']

Federal Register :: Guidance Regarding the Simplified Service Cost Method and the Simplified Production Method
A Proposed Rule by the Internal Revenue Service on 08/03/2005
70 FR 44535
05-15362
https://www.federalregister.gov/d/05-15362 https://www.federalregister.gov/d/05-15362
Start Preamble Start Printed Page 44535
In the Rules and Regulations section of this issue of the Federal Register, the IRS is issuing temporary regulations relating to the capitalization of costs under the simplified service cost method of the Income Tax Regulations and the simplified production method. The regulations affect taxpayers that use the simplified service cost method or the simplified production method for self-constructed assets that are constructed on a routine and repetitive basis in the ordinary course of their businesses. The text of those regulations also serves as the text of these proposed regulations.
Send submissions to: CC:PA:LPD:PR (REG-121584-05), room 5203, Internal Revenue Service, POB 7604, Ben Franklin Station, Washington, DC 20044. Submissions may be hand delivered Monday through Friday between the hours of 8 a.m. and 4 p.m. to CC:PA:LPD:PR (REG-121584-05), Courier's Desk, Internal Revenue Service, 1111 Constitution Avenue, NW., Washington, DC, or sent electronically via the IRS Internet site at http://www.irs.gov/​regs or the Federal eRulemaking Portal at http://www.regulations.gov (IRS and REG-121584-05 or RIN-1545-BE57).
Concerning the proposed regulations, Scott Rabinowitz, (202) 622-4970; concerning submission of comments and/or requests for a public hearing, LaNita VanDyke, (202) 622-7180 (not toll-free numbers).
Temporary regulations in the Rules and Regulations section of this issue of the Federal Register amend the Income Tax Regulations (26 CFR part 1) relating to section 263A of the Internal Revenue Code (Code). The temporary regulations provide that self-constructed property is considered produced on a routine and repetitive basis for purposes of the simplified service cost method and the simplified production method when numerous units of tangible personal property are mass-produced, i.e., substantially identical assets are manufactured within a taxable year using standardized designs and assembly line techniques, and the recovery period of the assets under section 168(c) is not longer than 3 years. The text of those regulations also serves as the text of these proposed regulations. The preamble to the temporary regulations explains the amendments.
Before these proposed regulations are adopted as final regulations, consideration will be given to any written comments (a signed original and eight (8) copies) or electronic comments that are submitted timely to the IRS. The IRS and the Treasury Department specifically request comments on the clarity of the proposed rules and how they can be made easier to understand. All comments will be available for public inspection and copying. The IRS and the Treasury Department also request comments on whether additional simplified methods should be made available to taxpayers in certain industries. A public hearing will be scheduled if requested in writing by any person that timely submits written comments. If a public hearing is scheduled, notice of the date, time and place for the hearing will be published in the Federal Register.
Par 2. Section 1.263A-1 is amended by revising paragraph (h)(2)(i)(D) and adding paragraphs (k) and (l) to read as follows:
(D) [The text of this proposed paragraph (h)(2)(i)(D) is the same as the text of § 1.263A-1T(h)(2)(i)(D) published elsewhere in this issue of the Federal Register.]
(k) [The text of this proposed paragraph (k) is the same as the text of § 1.263A-1T(k) published elsewhere in this issue of the Federal Register.]
(l) [The text of this proposed paragraph (l) is the same as the text of § 1.263A-1T(l) published elsewhere in this issue of the Federal Register.]
Par 3. Section 1.263A-2 is amended by revising paragraph (b)(2)(i)(D) and adding paragraphs (e) and (f) to read as follows:
(D) [The text of this proposed paragraph (b)(2)(i)(D) is the same as the text of § 1.263A-2T(b)(2)(i)(D) published elsewhere in this issue of the Federal Register.]
(e) The text of this proposed paragraph (e) is the same as the text of § 1.263A-2T(e) published elsewhere in this issue of the Federal Register.] Start Printed Page 44536
(f) The text of this proposed paragraph (f) is the same as the text of § 1.263A-2T(f) published elsewhere in this issue of the Federal Register.]
[FR Doc. 05-15362 Filed 8-2-05; 8:45 am]