Technical Guidance:- Various IRS Notices Issued

Notice 2009-83 provides guidance on determining eligibility for the carbon dioxide sequestration credit under section 45Q and the amount of the credit, as well as rules regarding adequate security measures for secure geological storage of CO2. The notice also sets forth a separate reporting requirement for taxpayers claiming the section 45Q credit.

Notice 2009-84 provides a limited administrative exception to the ability of the Internal Revenue Service to examine a Form 706 (United States Estate (and Generation-Skipping Transfer) Tax Return) in connection with certain protective claims for refund based on a deduction under section 2053 of the Internal Revenue Code (Code) and filed within the time prescribed in section 6511(a) of the Code.

Notice 2009-85 provides guidance under section 877A, which was enacted by section 301 of the Heroes Earnings Assistance and Relief Tax Act of 2008 (the "Act") and applies to individuals who expatriate on or after June 17, 2008. Section 877A generally provides that all property of a “covered expatriate” is treated as sold on the day before the individual’s expatriation date. Gain and loss from the deemed sale must be taken into account at that time (subject to a $600,000 exclusion amount, which will be indexed for inflation – Exclusion amount for 2009 is $626,000) unless the individual elects to defer payment of the tax by providing security and waiving treaty rights that would prevent assessment or collection of the deferred tax. There are special rules for deferred compensation items, specified tax deferred accounts, and interests in nongrantor trusts.

Revenue Procedure 2009-50 sets forth the cost-of-living adjustments to certain items for 2010 as required under various provisions of the Code.

For More Information Contact The Atlanta, Georgia Law Offices Of AttorneyBritt:

AttorneyBritt
Gary L. Britt, CPA, J.D.
1200 Abernathy Road, Suite 1700
Atlanta, Georgia 30328

404-567-6445

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IRS Circular 230 Disclosure: To ensure compliance with requirements imposed by the IRS, we inform you that any tax advice contained in this communication (including any attachments) is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code or (ii) promoting, marketing or recommending to another party any transaction or matter addressed herein.

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