On 6/1/2022 the IRS updated its Cost Segregation Audit Techniques Guideline (ATG) for the first time since 2017. On Page 1 of the Introduction, the ATG states that it is “…not intended as an official IRS pronouncement. Accordingly, it may not be cited as authority.”
Nonetheless, the ATG is quite valuable as it takes readers into the mind of an IRS Examiner, spelling out exactly what he is looking for as he scrutinizes a report. The proactive and thoughtful reader can use this guidance to ensure best practices in his cost segregation studies.
The 2022 update points out two new areas of focus. The importance of identifying land values is stressed, and an entire new chapter is added on the subject of electrical distribution systems. This seems to imply that future auditors will be taking a close look at these subjects. Director of Engineering Ziv Carmel notes, “Capstan engineers always seek to comply with IRS guidelines regarding electrical load distribution and analysis. We also make certain to confirm land values with the client.”
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