Minor memos - September 1998
Lee Sheppard argues that borrowers should not be allowed to deduct “interest” paid on DECS, TRUPS, PRIDES and QUIPPS in an article in Tax Notes magazine in early September. The magazine is widely read at the IRS and Treasury Departments . . . . The Edison Electric Institute and three other utility trade associations are lobbying Treasury to let utilities deduct the cost of removing old assets. The utility industry specialist at the IRS said he believes such costs should be treated as part of the cost of any replacement property and added to the tax basis of the replacement property . . . . The IRS recently released an old “field service memorandum” to its agents in the field advising that US companies may claim foreign tax credits for social contribution taxes paid in Brazil.