A tool for IRS auditors to identify potential tax issues As posted to the IRS website on 9/14/16 Overview On September 14, 2016, the IRS issued an Audit Techniques Guide (ATG) on the Capitalization of Tangible Property. The ATG is a tool to assist IRS examiners in identifying potential tax issues. Examiners are advised to carefully assess risk and apply the law to the facts and circumstances for issues involving the capitalization and dispositions of tangible property. Background The IRS and the Treasury began a project in 2004, to revise the tangible property regulations. In anticipation of these regulations, many taxpayers changed their method of accounting beginning as early as 1/1/06. As a result, many of these taxpayers may now be using a method of accounting for tax purposes that...
