Ezel / IRS Rulings / 200227009

TAM 200227009: IRS modifies earlier impact fee advice

Number
200227009
Outcome
Other outcome
Document type
Technical Advice Memorandum
IRS subject
Eligible Basis; Other Intangible Property; Modified Accelerated Cost Recovery System; Capitalization; Effect of Private Rulings
Topics
Income and deductions Procedure, penalties, and administration
Code sections
§ 42, § 167, § 168, § 263A, § 7805
Ruling dated
March 11, 2002
Publicly released
July 5, 2002
Source
View Official PDF

Apply this to your situation

This page covers IRS technical advice on one taxpayer's case, issued in 2002, which can't be cited as precedent. Ask about your situation and see what the current Code and IRS guidance say, with citations.

Currency note: this determination was released in 2002
Statutory amendments, regulation changes, court decisions, or later IRS guidance may have changed the analysis since then. Treat this page as historical context, not current tax advice. Verify current law before relying on any specific rule, threshold, or position mentioned here.
Not precedent. Under 26 U.S.C. § 6110(k)(3), this written determination may not be used or cited as precedent. It answered an IRS office's question about one taxpayer's case on its specific facts, and identifying details were redacted by the IRS before release. The official IRS release (linked on this page as a PDF) is the authoritative source.
About this page: The plain-English summary and ruling snapshot below were written by Ezel based on the official IRS release. The full text is the IRS's own document.
View official IRS release (PDF)

Plain-English summary

The IRS modified an earlier technical advice memorandum about impact fees to make it consistent with Revenue Ruling 2002-9. It also lifted a suspension on considering the impact fee issue in another memorandum. A taxpayer had sought to have the earlier advice applied without retroactive effect under section 7805(b)(8), but the IRS said that provision did not apply in light of the revenue ruling and this modification. The one-page memorandum gives no further analysis of the underlying impact fee treatment.

Ruling snapshot

  • Question: How should the prior impact fee advice and pending request for nonretroactive treatment be handled after Revenue Ruling 2002-9?
  • Outcome: Earlier advice modified; suspension lifted; section 7805(b)(8) held inapplicable
  • Key authorities: IRC § 7805(b)(8); Rev. Rul. 2002-9; TAM 200043016; TAM 200203013

Full text (IRS public release)

INTERNAL REVENUE SERVICE
NATIONAL OFFICE TECHNICAL ADVICE MEMORANDUM

March 11, 2002

Number: 200227009
Release Date: 7/5/2002
Index (UIL) No: 42.04-00, 167.14-11, 168.00-00, 263A.00-00, 7805.05-00 CASE MIS No.: TAM-111584-02/CC:PSI:B5

Industry Director
Natural Resources & Construction (LM:NRC)

Taxpayer’s Name:
Taxpayer’s Address:
Taxpayer’s Identification No:
Tax Year Involved:

This technical advice memorandum (TAM) modifies TAM 200043016 (July 14,
2000) to make it consistent with Revenue Ruling 2002-9, 2002-10 I.R.B. 614, as it applies to the issue of impact fees.

   Further, this TAM lifts the suspension on consideration of the impact fee issue in

TAM 200203013 (October 9, 2001), where the taxpayer requested, in part, that relief under § 7805(b)(8) of the Internal Revenue Code as to the issue of impact fees, be extended to it and that TAM 200043016 be applied without retroactive effect. Based on the holding in Revenue Ruling 2002-9 and the modification of TAM 200043016 by this TAM, § 7805(b)(8) is not applicable.

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