[Federal Register Volume 77, Number 244 (Wednesday, December 19, 2012)]
[Rules and Regulations]
[Page 75016]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2012-30490]


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DEPARTMENT OF THE TREASURY

Internal Revenue Service

26 CFR Part 1

[TD 9564]
RIN 1545-BJ93


Guidance Regarding Deduction and Capitalization of Expenditures 
Related to Tangible Property

AGENCY: Internal Revenue Service (IRS), Treasury.

ACTION: Correcting amendments.

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SUMMARY: This document contains correcting amendments to the temporary 
regulations (TD 9564), which were published in the Federal Register on 
Tuesday, December 27, 2011, relating to guidance regarding deduction 
and capitalization of expenditures related to tangible property. These 
amendments revise the general asset account regulations to provide the 
time and manner of making a general asset account election. The 
amendatory instructions of TD 9564 inadvertently redesignated 
paragraphs (m)(2) and (m)(3) for the general asset account regulations 
as in effect before TD 9564 as paragraphs (l)(2) and (l)(3) for the 
general asset account regulations as amended by TD 9564. These 
correcting amendments will affect all taxpayers that make a general 
asset account election.

DATES: These amendments are effective December 19, 2012.

FOR FURTHER INFORMATION CONTACT: Kathleen Reed or Patrick Clinton, 
Office Associate Chief Counsel (Income Tax & Accounting), (202) 622-
4930 (not a toll-free call).

SUPPLEMENTARY INFORMATION:

Background

    The regulations that are the subject of these corrections are under 
section 168 of the Internal Revenue Code.

Need for Correction

    As published on December 27, 2011 (76 FR 81060), TD 9564 contains 
errors which may prove to be misleading and are in need of 
clarification.

List of Subjects in 26 CFR Part 1

    Income taxes, Reporting and recordkeeping requirements.

Correction of Publication

    Accordingly, 26 CFR part 1 is amended by making the following 
correcting amendments.

PART 1--INCOME TAXES

0
Paragraph 1. The authority citation for part 1 continues to read as 
follows:

    Authority: 26 U.S.C. 7805 * * *
    Section 1.168(i)-1 also issued under 26 U.S.C. 168(i)(4). * * *


0
Par. 2. Section 1.168(i)-0 is amended by revising the entry in the 
table of contents for paragraph (m) of Sec.  1.168(i)-1 to read as 
follows:


Sec.  1.168(i)-0  Table of contents for the general asset account 
rules.

* * * * *


Sec.  1.168(i)-1  General asset accounts.

* * * * *
    (m) [Reserved]. For further guidance, see the entry for Sec.  
1.168(i)-1T(m).

0
Par. 3. Section 1.168(i)-1 is amended by revising paragraphs (l)(2) and 
(l)(3) to read as follows:


Sec.  1.168(i)-1  General asset accounts.

* * * * *
    (1) * * *
    (2) Time for making election. The election to apply this section 
shall be made on the taxpayer's timely filed (including extensions) 
income tax return for the taxable year in which the assets included in 
the general asset account are placed in service by the taxpayer.
    (3) Manner of making election. In the year of election, a taxpayer 
makes the election under this section by typing or legibly printing at 
the top of the Form 4562, ``GENERAL ASSET ACCOUNT ELECTION MADE UNDER 
SECTION 168(i)(4),'' or in the manner provided for on Form 4562 and its 
instructions. The taxpayer shall maintain records (for example, 
``General Asset Account 1--all 1995 additions in asset class 
00.11 for Salt Lake City, Utah facility'') that identify the assets 
included in each general asset account, that establish the unadjusted 
depreciable basis and depreciation reserve of the general asset 
account, and that reflect the amount realized during the taxable year 
upon dispositions from each general asset account. (But see section 
179(c) and Sec.  1.179-5 for the recordkeeping requirements for section 
179 property.) The taxpayer's recordkeeping practices should be 
consistently applied to the general asset accounts. If Form 4562 is 
revised or renumbered, any reference in this section to that form shall 
be treated as a reference to the revised or renumbered form.
* * * * *

 Guy R. Traynor,
Federal Register Liaison, Publication & Regulations Branch, Legal 
Processing Division, Associate Chief Counsel, Procedure & 
Administration.
[FR Doc. 2012-30490 Filed 12-18-12; 8:45 am]
BILLING CODE 4830-01-P