US Treasury Delays Final Tax Accounting Regulations

by Mike Godfrey, Tax-News.com, Washington

20 September 2005

Final regulations governing tax accounting guidance considered a high priority by the United States Treasury are likely to be forced back until the end of the year whilst Congress is busy dealing with the after-effects of Hurricane Katrina, the American Bar Association Section of Taxation meeting was told last week.

According to George Manousos of the Treasury Office of Tax Legislative Counsel, the Katrina recovery operation has meant that the Treasury's highest priority regulations, namely section 199 domestic production guidance and section 409A deferred compensation guidance have slipped down the legislative agenda.

While Manousos told the ABA Tax Section’s Capital Recovery and Leasing Committee that the 199 regulations are "basically done and waiting for the time and resources to get the final kick out the door,” he stated that the Treasury will not be able to issue the regulations until the end of the year at the earliest.

However, final regulations under section 168 for classifying property, known as the 'Brookshire regulations' are well advanced, as is depreciation guidance addressing property eligible for an extended placed-in-service date. Both of these are likely to be issued during the fall, Manousos said.

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