Minor memos

Minor memos

September 15, 2006 | By Keith Martin in Washington, DC

The IRS committed in a new business plan released in mid-August to issue guidance about when production tax credits can be claimed on electricity generated from biomass. The agency had been expected to issue the guidance last April, but at last check, the guidance had “bogged down.” Also on the business plan are additional guidance on investment tax credits for coal-to-liquids plants, power plants that use advanced technologies to burn coal and other gasification projects. The agency has also committed to address whether telephone companies must report amounts received from federal universal service programs as taxable income…. A lessor had to pay gross receipts taxes in Indiana on the rents it received for leasing equipment to businesses located in Indiana. The lessor had no office in the state, and the leases were arranged by the equipment manufacturers who steered customers who wanted to lease — rather than own — to the lessor for prearranged lease financing. The state tax department assessed back taxes on the lessor on audit. The case is described in the July 1 issue of the Indiana Register.