Learn the latest tax strategies as well as happenings at ICS Tax, LLC

Alex Bagne and Mike Piper are heading to Orlando, Florida to attend the annual conference of the American Society of Cost Segregation Professional (ASCSP). Both Alex and Mike are members of ASCSP, which provides education, credentials, technical standards and a Code of Ethics within the cost segregation industry. Alex will be speaking on two panels. For the first panel, he will be discussing Accounting Method Changes and the new Form 3115, the Tangible Property Regulations, and Partial Asset Dispositions. On the second panel, he will be discussing the new depreciation category called Qualified Improvement Property, the PATH Act, and the §179 Expense Election.


ICS Tax is looking forward to presenting information regarding Federal tax incentives for the Dakota Electric Association’s Commercial & Industrial Fall Meeting on November 3rd. The DEA is a member-owned, electric utility with more than 100,000 members and ranked among the 25 largest electric distribution cooperatives in the nation. Click here for more information on the DEA.

The IRS released final regulations concerning the application of the R&D tax credit to “internal use software” (i.e., software which is developed by or for the benefit of the taxpayer). Examples of internal-use software include software for use in human resources, support services and financial management. Software that is not for internal use needs to meet a lower threshold to qualify for the credit. These final regulations also include examples to illustrate the application of the process of experimentation requirement to software. Click here to view the full regulations.


Alex Bagne and Mike Piper presented tax planning strategies specifically for the construction industry at the Columbus Contractors Network’s Construction Success workshop. See additional information here: www.columbuscontractorsnetwork.com.


The IRS recently released an Audit Techniques Guide titled “Capitalization of Tangible Property”. Audit Techniques Guides (ATGs) help IRS examiners during audits by providing insight into issues unique to specific industries. While designed to provide guidance for IRS employees, these guides are useful to business owners and tax professionals as they are more reader-friendly than the code and regulations, and they often discuss the implications of case law as well as other relevant authorities.


The Capitalization of Tangible Property ATG deals primarily with issues related to the Tangible Property Regulations (TPRs). In March of 2012, the IRS issued a directive that suspended current field examinations on the repair vs. capitalization issues to permit taxpayers to file accounting method changes under recently issued temporary regulations and revenue procedures. The IRS has since been lenient on examination of TPR issues to allow taxpayers time to adopt the new rules. The new ATG shows that the IRS has renewed interest in auditing TPR issues to ensure proper compliance.


ICS Tax has nationally-renowned experts in the Tangible Property Regulations that can assist with compliance-related issues as well as take advantage of several new, taxpayer-friendly provisions. For more information, please contact an ICS Tax representative.

Click below to view the full Audit Techniques Guide


The ICS Tax, LLC sister company, ICS Consulting, Inc., was just named one of the Minneapolis/St. Paul Business Journal’s Best Places to Work in 2016 for the second year in a row! Click here for more information.

ICS is providing specialty tax and cost segregation related services for Ted Glasrud Associates, a Twin Cities based property management and development firm, for approximately 2 million square feet of commercial and industrial space.

ICS Tax president Alex Bagne co-published an article on Avoiding Recapture Tax in Cost Segregations, featured in the AICPA’s Tax Insider newsletter. The recapture tax rules require taxpayers to pay back any tax deductions for accelerated depreciation when appreciated property is sold. While the effects of a cost-segregation study can magnify recapture issues, tax professionals should consider a number of worthwhile opportunities to reduce or avoid recapture tax that would otherwise be realized upon sale of property. To learn more, please click here.

ICS happy to announce that we are working on behalf of Eide Bailey, LLP to provide specialty tax consulting services for the Scheels All Sports facilities portfolio.

ICS Tax President Alex Bagne coauthored an article on the Tangible Property Regulations in “Disclosures” magazine, a publication by the Virginia Society of CPAs.

Click below to view the article.


Taxpayers can realize significant benefits under the Tangible Property Regulations by identifying and removing building components that have been replaced or demolished by writing off and taking a loss upon the undepreciated basis. Valuing the cost of the replaced or demolished building component requires a careful understanding of these regulations. Alex Bagne coauthored an article for Bloomberg BNA on Dispositions of Tangible Property-IRS Restricts Use of Discount Value Approach. Click below view the article.