SECTION 6. BUSINESS AND INDIVIDUAL TAX ISSUES

Statute or Regulation Act Postponed

1. Treas. Reg. § 1.71–1T(b), Q&A–7 A payer spouse may send cash to a third party on behalf of a spouse that

qualifies for alimony or separate maintenance payments if the payments are made to the third party at the written request or consent of the payee spouse. The request or consent must state that the parties intend the payment to be treated as an alimony payment to the payee spouse subject to the rules of section 71. The payer spouse must receive the request or consent prior to the date of filing of the payer spouse’s first return of tax for the taxable year in which the payment was made. 2. Treas. Reg. § 1.77–1 A taxpayer who receives a loan from the Commodity Credit Corporation may elect to include the amount of the loan in his gross income for the taxable year in which the loan is received. The taxpayer in subsequent taxable years must include in his gross income all amounts received during those years as loans from the Commodity Credit Corporation, unless he secures the permission of the Commissioner to change to a different method of accounting. Treas. Reg. § 1.77–1 requires such requests to be filed within 90 days after the beginning of the taxable year of change. Rev. Proc. 83–77 provides an automatic 90-day extension. 3. Treas. Reg. The lessee must expend its construction allowance on the qualified long-term § 1.110–1(b)(4)(ii)(A) real property within eight and one-half months after the close of the taxable

3. Treas. Reg. The lessee must expend its construction allowance on the qualified long-term § 1.110–1(b)(4)(ii)(A) real property within eight and one-half months after the close of the taxable

year in which the construction allowance was received. 4. Sec. 118(c)(2) A contribution in aid of construction received by a regulated public utility that provides water or sewerage disposal services must be expended by the utility on qualifying property before the end of the second taxable year after the year in which it was received by the utility. 5. Treas. Reg. A contribution of an undivided present interest in tangible personal property § 1.170A–5(a)(2) shall be treated as made upon receipt by the donee of a formally executed and

5. Treas. Reg. A contribution of an undivided present interest in tangible personal property § 1.170A–5(a)(2) shall be treated as made upon receipt by the donee of a formally executed and

acknowledged deed of gift. However, the period of initial possession by the donee may not be deferred for more than one year. 6. Sec. 172(b)(1)(H) Certain taxpayers desiring to take advantage of the new 5-year carryback period, and/or desiring to apply for a tentative carryback adjustment, must act on or before a specified date. (See Rev. Proc. 2002–40, 2002–23 I.R.B. 1096). 7. Sec. 468A(g) A taxpayer that makes payments to a nuclear decommissioning fund with respect to a taxable year must make the payments within 2½ months after the close of such taxable year (the deemed payment date). 8. Sec. 530(h) A trustee of a Coverdell education savings account must provide certain information concerning the account to the beneficiary by January 31 following the calendar year to which the information relates. In addition, Form 5498 must be filed with the IRS by May 31 following the calendar year to which the information relates.

2002–46 I.R.B. 853 November 18, 2002