¹See Rev. Proc. 2000-50, IRB 2000-52, 601.

²Id.

³INDOPCO, Inc., 503 US 79 (1992).

⁴REG-125638-01 (12/19/02).

⁵See Rev. Rul. 55-540, 1955-2 CB 39.

⁶Such software is produced by SAP in Germany, by Baan in the Netherlands, and by Oracle, PeopleSoft, J.D. Edwards, and Microsoft in the U.S.

⁷For further discussion, see Rible, LMBD Agent Suggests Principles to Distinguish Acquired and Developed Software, 2002 TNT 46-36.

⁸Id.

⁹IRS Letter Ruling 200236028 (9/6/02). Proposed regulations on capitalization of acquired intangibles do not provide rules for distinguishing acquired software from developed software or for the treatment of ERP software. However, the IRS stated that final regulations will treat ERP software in a manner consistent with this letter ruling; see the Preamble to REG-125638-01, note 4 supra.

¹⁰See Maples, Finegan and Maples, Deducting the Costs of Implementing a New Information System Despite IRS Objections, 95 J. of Taxn 267 (November 2001).

¹¹Rev. Rul. 96-62, 1996-2 CB 9.

¹²See note 3, supra.