IRS Says Amendment to Regulations Needed for Late Section 179 Elections on Amended Returns After 2007

Abstract

<p>Although some commentators argued to the contrary, the Internal Revenue Service in a Revenue Procedure issued in late August of 2008<strong>1 </strong>acknowledged that Section 179 elections<strong>2 </strong>could not be made on amended returns for taxable years beginning after December 31, 2007, without the Commissioner’s consent.<strong>3 </strong>The Revenue Procedure announced that <em>amendments to the regulations would need to be made resolving the</em> <em>problem,</em><strong>4 </strong>provided guidance on the rules applicable to the 50 percent bonus depreciation for 2008<strong>5 </strong>and provided further guidance on depreciation allowances claimable with respect to the Kansas Disaster Area Recovery Assistance Property and GO Zone property.<strong>6</strong></p>