Part I. Rulings and Decisions Under the Internal Revenue Code of 1986

Section 263A.—Capital- ization and Inclusion in Inventory Costs of Cer- tain Expenses

Notice 2013–18 modifies and supersedes Notice 2000–45, 2000–2 C.B. 256, which provides guidance to taxpayers engaged in the trade or business of farming in determining whether a plant has a pre

productive period in excess of 2 years for purposes of § 263A(d) and (e) of the Internal Revenue Code. Specifically, Notice 2013–18 removes raspberry, blackberry, and papaya plants from the previously published list of plants having a preproductive period in excess of 2 years. See Notice 2013-18, page 742. Concurrently with the issuance of Notice 2013–18, the Service and the Treasury Department issued Rev. Proc. 2013–20, which modifies Rev. Proc. 2011–14, 2011–4 I.R.B. 330, to provide procedures

for a taxpayer to obtain the automatic consent of the Commissioner under § 446(e) of the Internal Revenue Code to change its method of accounting under § 263A for the production of one or more plants removed from the list of plants grown in commercial quantities in the United States having a preproductive period in excess of two years based on the nationwide weighted average preproductive period for such plant. See Rev. Proc. 2013-20, page 744.

2013–14 I.R.B. 737 April 1, 2013