§88 — Certain amounts with respect to nuclear decommissioning costs
25 citing cases
Statute Text — 26 U.S.C. §88
In the case of any taxpayer who is required to include the amount of any nuclear decommissioning costs in the taxpayer’s cost of service for ratemaking purposes, there shall be includible in the gross income of such taxpayer the amount so included for any taxable year.
Treasury Regulations
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Treas. Reg. §1.88-1Nuclear decommissioning costs
(a) In general. Section 88 provides that the amount of nuclear decommissioning costs directly or indirectly charged to the customers of a taxpayer that is engaged in the furnishing or sale of electric energy generated by a nuclear power plant must be included in the gross income of such taxpayer in the same manner as amounts charged for electric energy. For this purpose, decommissioning costs directly or indirectly charged to the customers of a taxpayer include all decommissioning costs that consumers are liable to pay by reason of electric energy furnished by the taxpayer during the taxable year, whether payable to the taxpayer, a trust, State government, or other entity, and even though the taxpayer may not control the investment or current expenditure of the amount and the amount may not be paid to the taxpayer at the time decommissioning costs are incurred. However, decommissioning costs payable to a taxpayer holding a qualified leasehold interest (as described in paragraph (b)(2)(ii) of § 1.468A-1) are included in the gross income of such taxpayer, and not in the gross income of the lessor.
(b) Examples. The following examples illustrate the application of the principles of paragraph (a) of this section:
(c) Cross reference. For special rules relating to the deduction for amounts paid to a nuclear decommissioning fund, see § 1.468A-1 through § 1.468A-5, 1.468A-7, 1.468A-8.
(d) Effective date. (1) Section 88 and this section apply to nuclear decommissioning costs directly or indirectly charged to the customers of a taxpayer on or after July 18, 1984, and with respect to taxable years ending on or after such date.
(2) If the amount of nuclear decommissioning costs directly or indirectly charged to the customers of a taxpayer before July 18, 1984, was includible in gross income in a different manner than amounts charged for electric energy, such amount must be included in gross income for the taxable year in which includible in gross income under the method of accounting of the taxpayer that was in effect when such amount was charged to customers.
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Treas. Reg. §1.88-1(a)In general.
In general. Section 88 provides that the amount of nuclear decommissioning costs directly or indirectly charged to the customers of a taxpayer that is engaged in the furnishing or sale of electric energy generated by a nuclear power plant must be included in the gross income of such taxpayer in the same manner as amounts charged for electric energy. For this purpose, decommissioning costs directly or indirectly charged to the customers of a taxpayer include all decommissioning costs that consumers are liable to pay by reason of electric energy furnished by the taxpayer during the taxable year, whether payable to the taxpayer, a trust, State government, or other entity, and even though the taxpayer may not control the investment or current expenditure of the amount and the amount may not be paid to the taxpayer at the time decommissioning costs are incurred. However, decommissioning costs payable to a taxpayer holding a qualified leasehold interest (as described in paragraph (b)(2)(ii) of § 1.468A-1) are included in the gross income of such taxpayer, and not in the gross income of the lessor.
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Treas. Reg. §1.88-1(b)Examples.
Examples. The following examples illustrate the application of the principles of paragraph (a) of this section:
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Treas. Reg. §1.88-1(c)Cross reference.
Cross reference. For special rules relating to the deduction for amounts paid to a nuclear decommissioning fund, see § 1.468A-1 through § 1.468A-5, 1.468A-7, 1.468A-8.
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Treas. Reg. §1.88-1(d)Effective date.
Effective date. (1) Section 88 and this section apply to nuclear decommissioning costs directly or indirectly charged to the customers of a taxpayer on or after July 18, 1984, and with respect to taxable years ending on or after such date.
(2) If the amount of nuclear decommissioning costs directly or indirectly charged to the customers of a taxpayer before July 18, 1984, was includible in gross income in a different manner than amounts charged for electric energy, such amount must be included in gross income for the taxable year in which includible in gross income under the method of accounting of the taxpayer that was in effect when such amount was charged to customers.
25 Citing Cases
ing in the Code or the regulations "suggests that the IRS is obligated to take additional steps to effectuate delivery ifthe notice is returned." Armstrong v. Commissioner, 15 F.3d at 975- 976 (quoting King v. Commissioner, 857 F.2d 676, 681 (1988), § 88 T.C. 1042 - 11 - [*11] (1987)). Once the notice ofdeficiency is properly mailed, the Commissioner may assess the tax after waiting the appropriate time. I_d. Petitioner contends that the Bucyrus address where respondent mailed the notice ofdefic
In another variation, section 88 provides that nuclear decommissioning costs that are built into costs of - 40 - services for ratemaking purposes "shall be includible in the gross income of such taxpayer".5 (Emphasis added.) Obviously, Congress has used the terms "includes", "included", and "includible" interchangeably.
88 (nuclear decommissioning costs are “includible” in gross income). Judge Ruwe’s dissent uses the word “included” in section 83(a) to construe the word “included” in section 83(h). Although the choice of “included” or “includible” in section 83(a) would not affect our reading of that subsection, Judge Ruwe’s dissent’s substitution of “includi