7334769, 12CER09-01 - Florida Administrative Rules, Law, Code, Register

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Notice: 7334769

Notice of Emergency Rule

Department:

DEPARTMENT OF REVENUE

Division:

Corporate, Estate and Intangible Tax

Overview

RULE:

12CER09-01

Adjustments for Section 179 Expense and Special 50% Bonus Depreciation

SPECIFIC REASONS FOR FINDING AN IMMEDIATE DANGER TO THE PUBLIC HEALTH, SAFETY OR WELFARE:

Chapter 2009-18, Laws of Florida, authorizes the Department of Revenue to promulgate an emergency rule, and to renew such rule, to implement the provisions of this law. The law provides that conditions necessary for an emergency rule and its renewal have been met. The additions for bonus depreciation and Internal Revenue Code section 179 expense contained in Sections 220.13(1)(a)14., and 15., F.S., are retroactively repealed as of January 1, 2008. Taxpayers are required to file amended Florida corporate income tax returns to report any differences in taxable income as a result of this law change. This emergency rule establishes procedures for reporting the additions and claiming the subtractions required by Section 220.13(1)(e), F.S., and provides procedures for filing amended Florida corporate income tax returns for the 2007 and 2008 tax years.

REASON FOR CONCLUDING THAT THE PROCEDURE IS FAIR UNDER THE CIRCUMSTANCES:

The Legislature expressly authorized the promulgation of an emergency rule, and the renewal of such rule, to implement Chapter 2009-18, Laws of Florida, and determined that all conditions necessary for this emergency rule have been met. The law requires taxpayers to amend their Florida corporate income tax returns for the 2007 and 2008 tax years. This emergency rule establishes procedures for reporting additions and claiming the subtractions required by Section 220.13(1)(e), F.S., so that taxpayers may timely file the required amended returns.

SUMMARY:

Emergency Rule 12CER09-01, (Adjustments for Section 179 Expense and Special 50% Bonus Depreciation), provides procedures for taxpayers subject to the adjustments contained in Section 220.13(1)(e), F.S., for I.R.C. section 179 expense in excess of $128,000 and special 50% bonus depreciation under I.R.C. section 168(k). This emergency rule: (1) provides the additions that taxpayers are required to add back to the amount of the federal deduction claimed under I.R.C. section 179 that exceeds $128,000; (2) provides the subtractions that are available in each of seven tax years beginning with the year an addition is made under Section 220.13(1)(e), F.S.; (3) requires taxpayers to maintain a schedule reflecting all adjustments made under Section 220.13(1)(e), F.S.; (4) provides that these adjustments do not affect the basis of the property; (5) requires taxpayers who filed their Florida corporate income tax returns and reported additions to tax for bonus depreciation as provided in Emergency Rule 12CER08-31, to amend their Florida tax return; (6) provides that penalty and interest will be compromised or waived when the differences between additions and subtractions result in additional tax due when an amended Florida corporate income tax return is filed; (7) provides when the subtractions under Section 220.13(1)(e), F.S., are not to be included in a taxpayer’s Florida corporate income tax return; and (8) provides when the deductions allowed under I.R.C. section 179 and for special 50% bonus depreciation are not required to be included in a taxpayer’s Florida corporate income tax return.

THE PERSON TO BE CONTACTED REGARDING THE EMERGENCY RULE IS:

Gary Moreland, Senior Attorney, Technical Assistance and Dispute Resolution, Department of Revenue, P. O. Box 7443, Tallahassee, Florida 32314-7443, telephone (850)922-4831

PRINT PUBLISH DATE:

7/2/2009 Vol. 35/26

OVERSIGHT COMMITTEE:

Joint Administrative Procedures Committee
Florida Administrative Law Central Online Network (F.A.L.C.O.N.)

RELATED COURT CASES:

Division of Administrative Hearings

FEDERAL eRULEMAKING
WEB PORTAL:

Regulations.gov

HOW TO LINK TO
THIS NOTICE:

http://www.flrules.org/gateway/ruleno.asp?id=12CER09-01&PDate=7/2/2009&Section=4

REFERENCE MATERIALS:

No reference(s).

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