INCOME TAX

Notice 2011–29, page 663. This notice provides that, pending the resolution of a number of legal and factual issues, the IRS will not challenge a taxpayer’s position that the Puerto Rican excise tax is a tax in lieu of an income tax under section 903 of the Code.

Rev. Proc. 2011–26, page 664. This procedure provides guidance with respect to the 100–percent additional first year depreciation deduction under sections 168(k)(5) of the Code, and the extension of the 50–percent bonus depreciation deduction for qualified property placed in service in 2010. This procedure defines which property is eligible for the 100–percent bonus depreciation deduction and provides guidance regarding the time and manner for making certain elections under sections 168(k)(2) and (5). The procedure also provides a safe harbor method of accounting for passenger automobiles that qualify for the 100–percent additional first year depreciation deduction and that are subject to first-year limitations under section 280F. Rev. Proc. 2011–21 amplified.

Finding Lists begin on page ii.