IRS Rules Salvage is Protected, Cost of Removal is Not

On October 15, the IRS issued PLR 202141001 for regulated electric utilities. In its ruling, the IRS reiterated earlier assertions that the net deferred tax asset (DTA) related to the cost of removal (COR) is not subject to normalization, but also added clarification that the deferred tax liability (DTL) and DTA from the salvage value is subject to normalization rules.

Vadim LantukhNovember 3, 2021tax, accounting, irs, rate regulated utilities, electric, regulated electric utilities, lucasys, lucasys tax, normalization, cost of removal, depreciation, tax systems, tcja, tax rate changes, utility industry