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.
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.
WHAT THIS MEANS TO TAXPAYERS
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.
HOW CAN ICS TAX HELP?
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