Revenue Procedure 2020-39 and the Future of Excess Deferred Income Taxes

On August 14, 2020, the Internal Revenue Service (IRS) issued Revenue Procedure 2020-39 to clarify normalization requirements following the corporate tax rate reduction provided in the Tax Cuts and Jobs Act (TCJA). Though this Revenue Procedure addressed several open questions posed by the utility industry, in some regards, the publication raised more questions than it answered.

Vadim LantukhOctober 19, 2020tax, accounting, tax systems, lucasys, lucasys tax, enterprise, excess deferred income, taxes, irs, revenue procedure, tcja, section 168, ARAM, alternative method, tax reform act of 1986, normalization, deferred tax, software solutions