Coal transportation and handling costs of utilities cannot be deducted immediately
February 1, 2002 |
By
Keith Martin in Washington, DC
COAL transportation and handling costs of utilities cannot be deducted immediately, the IRS said.
The IRS released a series of rulings in December and January in which it rejected requests by power companies to deduct their transportation and handling costs for fuel immediately. The agency said the costs must be treated as a cost of the coal and deducted in the year the coal is burned.
An accounting firm had been urging power companies to apply en masse for the rulings.
