New Audit Techniques Guide for Capitalization of Tangible Property

• Published in: The Tax Adviser Vol. 48; no. 2; p. 105
• Main Authors: Shi, Debbie, Watkins, Tracy
• Format: Trade Publication Article
• Language: English
• Published: New York American Institute of Certified Public Accountants 01.02.2017
• Subjects: Accounting; Annual reports; Audit risk; Capitalization; Compliance; Documentation; Guidelines; Tax audits; Taxpayers; United States > US
• ISSN: 0039-9957

The latest Audit Techniques Guide examines the capitalization and disposition of tangible property. The ATG, Capitalization of Tangible Property, serves as a tool for IRS examiners to aid in the identification of potential tax issues and risk areas to ensure compliance with the final tangible property regulations and disposition regulations. The ATG summarizes the final tangible property regulations and disposition regulations. While the ATG is intended to serve as a guideline, it provides taxpayers with valuable insights into specific issues that the IRS may scrutinize upon exam. Taxpayers should review the ATG to ensure that proper documentation exists to support compliance with the final regulations. Taxpayers familiar with the regulations should not expect major surprises, as the ATG primarily recaps topics covered in the final regulations and raises relevant questions to evaluate compliance