revenue procedure also covers the application of Sec.
2013-13, issued in January, the IRS gave taxpayers an optional safe-harbor
method to calculate a deduction for expenses of a business use of a residence under Sec.
The IRS issued guidance (Q&A 12 in Notice 89-25) that provided three safe-harbor
methods for satisfying this exception.
Given the limited application of the proposed scheme to most of the companies represented by TEI's membership - and the seeming "inevitability" of the ratcheting down of the safe-harbor
percentage as the means of "paying for" the new system (if a funding mechanism is necessary) - the Institute has not previously commented on the proposed regulations.
The procedure provides three safe-harbor
methods that permit individuals to calculate the decrease in FMV of their personal residences and one safe-harbor
method that allows individuals to calculate the decrease in FMV of their personal belongings.
The exchange must be completed within 180 days to receive the automatic safe-harbor
It involves compliance with an administrative scrutiny requirement of either the statutory safe-harbor
test or one of five administrative safe harbors.
doc) and others, the IRS has provided, in recently issued Notice 2006-15, an extension of the June 28, 2005 safe-harbor
grandfather date (from Rev.
However, effective for plan years beginning in 1999, the Small Business Job Protection Act of 1996 introduced safe-harbor
formulas for 401(k) salary deferral and matching contributions that eliminated the need for employers to perform annual nondiscrimination testing.
In the alternative, we believe that a different turnover rate should be assigned to each industry category enumerated in the contemplated revenue procedure for safe-harbor