IRS, Treasury to Issue Guidance on Historic Rehabilitation Tax Credits
CHICAGO—The Internal Revenue Service and Treasury Department hope to quickly issue a safe harbor revenue procedure that will address certain real estate industry concerns that have emerged over historic rehabilitation tax credit financing, two senior government attorneys said May 1.
Curtis Wilson, IRS associate chief counsel (passthroughs & special industries), said the guidance would respond in part to questions that have emerged following U.S. Tax Court and appeals court rulings involving the dissolution of a partnership between Pitney Bowes Inc. and the New Jersey Sports Authority.
Wilson said the guidance would emphasize the government's position in the litigation that investors with no meaningful “downside risk or upside potential’’ in a partnership would not be treated as partners for tax purposes. At the same time, Wilson said the guidance would address an unexpected chilling effect that has emerged among investors in the rehabilitation credit arena.
For full access to this article,
please register for a free trial to Daily Tax Report®