An IRS Lifeline To Public Utilities On Normalization
Jeffrey Davis, David Burton and Isaac MaronSeptember 14, 2017, 4:21 PM EDT
Law360, New York (September 14, 2017, 4:21 PM EDT) -- On Sept. 7, the Internal Revenue Service issued Revenue Procedure 2017-47 to provide a safe harbor for public utilities that inadvertently or unintentionally use a practice or procedure that is inconsistent with the so-called normalization rules. Before describing the revenue procedure, we first discuss the basics of normalization.
Normalization is an accounting system provided for by Treasury regulations that is used by regulated public utilities to reconcile the tax treatment of the investment tax credits (ITC) set forth in section 46 of the Internal Revenue Code of...