United States : IRS Issues New Proposed Regulations Defining "Solid Waste Disposal Facilities" for Tax-Exempt Bond Purposes.Byline: datta03 The Internal Revenue Service (IRS An abbreviation for the Internal Revenue Service, a federal agency charged with the responsibility of administering and enforcing internal revenue laws. ) and Treasury Department have issued new proposed regulations defining the types of facilities that qualify as "solid waste disposal facilities" eligible to be financed with tax-exempt private activity bonds issued by a state or local government. The Proposed Regulations replace the proposed regulations that were issued by the IRS and Treasury Department in May of 2004 but never finalized See finalization. . The public finance update gives a general summary of the proposed regulations. The Internal Revenue Service (IRS) and Treasury Department have issued new proposed regulations (Proposed Regulations) defining the types of facilities that qualify as "solid waste disposal facilities" eligible to be financed with tax-exempt private activity bonds issued by a state or local government. The Proposed Regulations replace the proposed regulations that were issued by the IRS and Treasury Department in May of 2004 but never finalized. The IRS and Treasury Department will consider any written or electronic comments on the Proposed Regulations that are timely submitted to the IRS, and a public hearing on the Proposed Regulations has been scheduled for January 5, 2010. Background Under Sections 103(a) and 142 of the Internal Revenue Code The Internal Revenue Code is the body of law that codifies all federal tax laws, including income, estate, gift, excise, alcohol, tobacco, and employment taxes. These laws constitute title 26 of the U.S. Code (26 U.S.C.A. § 1 et seq. of 1986, as amended a·mend v. a·mend·ed, a·mend·ing, a·mends v.tr. 1. To change for the better; improve: amended the earlier proposal so as to make it more comprehensive. 2. (Code), state or local government may issue tax-exempt bonds Tax-exempt bond A bond usually issued by municipal, county, or state governments whose interest payments are not subject to federal and, in some cases, state and local income tax. tax-exempt bond See municipal bond. to finance "solid waste disposal facilities" that are used in a private trade or business. Longstanding Treasury Regulations have generally defined "solid waste disposal facilities" as property used for the collection, storage, treatment, utilization, processing, or final disposition of "solid waste." For this purpose, "solid waste" was generally defined as garbage garbage: see solid waste. , refuse, and other discarded dis·card v. dis·card·ed, dis·card·ing, dis·cards v.tr. 1. To throw away; reject. 2. a. To throw out (a playing card) from one's hand. b. solid materials, but only if such material is useless, unused, unwanted, or discarded solid material that has no market value at the place where the property is located (No-Value Test). Those Treasury Regulations further provide that recycling recycling, the process of recovering and reusing waste products—from household use, manufacturing, agriculture, and business—and thereby reducing their burden on the environment. facilities may qualify as solid waste disposal facilities, provided that solid waste constitutes at least 65 percent, by weight or volume, of the total materials introduced into the recycling process. Starting in the late 1990's the IRS began challenging the tax-exempt status of certain tax-exempt private activity bonds issued to finance recycling facilities on the grounds that the materials being processed at such facilities did not qualify as solid waste. Copyright : Euclid Infotech Pvt. Ltd. Provided by Syndigate.info an Albawaba.com company |
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