August 14, 2020 IRS issues guidance on normalization accounting method issues arising due to TCJA corporate rate decrease The IRS has issued guidance (Revenue Procedure 2020-39) addressing normalization issues arising, or anticipated, in ratemaking proceedings because the corporate tax rate was decreased under the Tax Cuts and Jobs Act (TCJA). Regulated public utilities use normalization (a system of accounting) to reconcile the tax treatment of accelerated depreciation of public utility assets with their regulatory treatment. A Tax Alert is forthcoming. | ||||