[Federal Register Volume 59, Number 121 (Friday, June 24, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-15356]


[[Page Unknown]]

[Federal Register: June 24, 1994]


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DEPARTMENT OF THE TREASURY

Internal Revenue Service

26 CFR Part 1

[PS-29-94]
RIN 1545-AS77

 

Amortization of Goodwill and Certain Other Intangibles

AGENCY: Internal Revenue Service (IRS), Treasury.

ACTION: Advance notice of proposed rulemaking.

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SUMMARY: This notice invites written comments from the public on issues 
that the IRS may address in proposed regulations under section 197 
relating to the amortization of goodwill and certain other intangibles. 
This notice is intended to help develop guidance to assist taxpayers in 
applying the rules relating to section 197.

DATES: Written comments concerning the regulations must be received by 
August 23, 1994.

ADDRESSES: Send comments to: CC:DOM:CORP:T:R (PS-29-94), room 5228, 
Internal Revenue Service, POB 7604, Ben Franklin Station, Washington, 
DC 20044. In the alternative, comments may be hand delivered between 
the hours of 8 a.m. and 5 p.m. to: CC:DOM:CORP:T:R (PS-29-94), 
Courier's Desk, Internal Revenue Service, 1111 Constitution Avenue NW., 
Washington, DC.

FOR FURTHER INFORMATION CONTACT: John Huffman or Susan Reaman (202) 
622-3110 (not a toll-free number).

SUPPLEMENTARY INFORMATION: Section 13261 of the Omnibus Budget 
Reconciliation Act of 1993 (OBRA '93) added section 197 to the Internal 
Revenue Code. Section 197 establishes a uniform 15-year amortization 
period for acquired goodwill and certain other intangibles. In 
developing guidance to assist taxpayers in applying the rules of 
section 197, the IRS has identified certain issues that should be 
addressed by proposed regulations for section 197.
    The IRS invites comments (signed original and eight (8) copies) 
from the public on these and any other issues for which taxpayers 
believe guidance is particularly needed. All materials submitted will 
be available for public inspection and copying. The identified issues 
are as follows:

Section 197  Intangibles--Definitions

    (1) What types of licenses, permits, or other rights should be 
covered by section 197(d)(1)(D)?
    (2) What should constitute ``an interest in a trade or business or 
a substantial portion thereof'' for purposes of section 197(d)(1)(E) 
(covenants not to compete)?

Intangibles Excepted From Section 197 Treatment

    (3) What types of software should be excluded from section 197 
treatment under sections 197(e)(3)(A)(i) and (ii)?
    (4) Under what circumstances should intangibles described in 
section 197(e)(4) (A), (B), or (C) be considered as not acquired in a 
transaction (or series of transactions) involving the acquisition of 
assets constituting a trade or business or substantial portion thereof?
    (5) What rights, whether under a contract or granted by a 
governmental unit or agency or instrumentality thereof, should be 
excluded from section 197 treatment under the regulatory authority of 
section 197(e)(4)(D)?

Anti-Churning Rules

    (6) What specific rules are needed to clarify the application of 
the anti-churning rules of section 197(f)(9)?
Stuart Brown,
Associate Chief Counsel. (Domestic)
[FR Doc. 94-15356 Filed 6-22-94; 8:45 am]
BILLING CODE 4830-01-U