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September 8, 2020

IRS issues final regulations providing nuclear decommissioning trust guidance

The IRS has issued final regulations (TD 9906) under IRC Section 468A on tax deductions for contributions to trusts that are maintained for decommissioning nuclear power plants and the use of amounts held in those trusts. The final regulations generally follow proposed regulations (REG-112800-16) issued in December 2016, although some changes were made based on comments received. The final regulations apply to tax years ending on or after September 4, 2020, but may also apply to prior tax years for which the taxpayer's payment deadline is after September 4, 2020. A Tax Alert is forthcoming.