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Tag Archive for Tangible Property Regulations

Tax Compliance Alert: The IRS Issues Transition Period Guidance for Recently Revised Form 3115

Peter Scalise

Introduction                                                                                                  

The Internal Revenue Service (hereinafter the “Service”) issued on March 24 of 2016 their Announcement 2016-14 addressing the transition period implementation dates in connection with the recently revised Form 3115 entitled “Application for Change in Accounting Method which was most recently revised and released to the public in December of 2015. This presents a paradigm shift as while most tax forms and publications are updated annually, this was the first update to Form 3115 since December of 2009. Read more

IRS Releases Retail & Restaurant Safe Harbor Related to Tangible Property Regulations

Gian Pazzia11-23-15

On November 20, 2015, the IRS released Revenue Procedure 2015-56, providing certain “qualified tax payers” engaged in the trade or business of operating a retail establishment or a restaurant a safe harbor accounting method for costs incurred related to remodeling and refreshing of their “qualified buildings.” “Qualified taxpayers” include those conducting activities within NAICS codes 44 or 45, but specifically exclude motor vehicle dealers and gas stations, among others.

KBKG Insight: The Tangible Property Regulations introduced the concept of “Unit of Property” and “building systems” along with the requirement to analyze capital expenditures related to a betterment, adaptation, or restoration of the system rather than the entire building as a Unit of Property. Retailers and restaurateurs have argued that refreshing type activities often require work to be performed on the building systems Read more

The Service Issues New Administrative Authority Governing Tangible Property Regulations Compliance

Pete Scalise7

On November 20, 2015, the Internal Revenue Service (hereinafter the “Service”) issued new administrative authority governing the Tangible Property Regulations (hereinafter “TPR”) in connection to the safe harbor rules for the retail and restaurant industries. More specifically, the newly released Revenue Procedure 2015-56 (hereinafter “Rev. Proc. 2015-56) provides a safe harbor method of accounting for taxpayers engaged in the trade or business of operating either a retail establishment or a restaurant for purposes of determining whether expenditures paid or incurred to remodel or refresh a qualified building are:

• Deductible pursuant to I.R.C. § 162(a);

• Requires capitalization treatment as an improvement pursuant to I.R.C. § 263(a); or Read more

Tangible Property Webinar

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March 31 – 11:00AM (CDT) – Click To Register

TaxConnections and ACPEN offer The Tangible Property Webinar.

The Tangible Property Regulations went into effect on January 1, 2014. On February 13, 2015, the IRS released the “repair regs” under Rev. Proc. 2015-20. These were billed as providing relief for small taxpayers struggling with the tangible property regulations. However, as with most attempts to help taxpayers this “relief” is a mixed blessing for some taxpayers. Learn how, as a practical matter, availing oneself of the processes contained in Rev. Proc. 2015-20 could cause the taxpayer to miss out on important tax savings. ACPEN’s expert practitioners will explain the practical impact of under the repair regulations. Both practitioners and taxpayers need to be wary of the possible traps of Read more

Additional Dates For Tangible Property Webinar

3-13-2015 8-49-24 AM

March 23 – 11:00AM (CDT) – Click To Register

March 31 – 11:00AM (CDT) – Click To Register

TaxConnections and ACPEN offer these additional dates for for The Tangible Property Webinar.

The Tangible Property Regulations went into effect on January 1, 2014. On February 13, 2015, the IRS released the “repair regs” under Rev. Proc. 2015-20. These were billed as providing relief for small taxpayers struggling with the tangible property regulations. However, as with most attempts to help taxpayers this “relief” is a mixed blessing for some taxpayers. Learn how, as a practical matter, availing oneself of the processes Read more

Busy Season Updates – Tangible Property Regulations And Affordable Care Act

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Well into the start of busy season, the IRS issued important guidance on some parts of the Affordable Care Act (ACA) and how small businesses can adopt the tangible property regulations (TPR).  I’ve got a summary of the ACA updates (and beyond) in a short article in the 3/12/15 AICPA Tax Insider – An update on Affordable Care Act busy season developments.

Here is my summary of the TPR items as well as a recent news release by the California Franchise Tax Board on conformity with TPR.

Policy Item: Both the ACA items (particularly the relief from the $100/employee/day penalty for health reimbursement arrangements (HRAs) that violate ACA provisions), and the TPR Read more

Additional Dates For Tangible Property Webinar

3-11-2015 8-49-24 AM

March 16 – 11:00AM (CDT) – Click To Register

March 23 – 11:00AM (CDT) – Click To Register

March 31 – 11:00AM (CDT) – Click To Register

TaxConnections and ACPEN offer these additional dates for for The Tangible Property Webinar.

The Tangible Property Regulations went into effect on January 1, 2014. On February 13, 2015, the IRS released the “repair regs” under Rev. Proc. 2015-20. These were billed as providing relief for small taxpayers struggling with the tangible property regulations. Read more

The IRS Streamlines The Methodology For Small Businesses To Comply With The Tangible Property Regulations

Examining Tax Law

On February 13 of 2015, The Internal Revenue Service (hereinafter the “Service”) streamlined the methodology for small business owners to comply with the Final Treasury Regulations (hereinafter the “regulations”) governing Tangible Property with newly released administrative authority.

Revenue Procedure 2015-20 permits small businesses to change a method of accounting under the regulations on a prospective basis for the first taxable year beginning on or after January 1 of 2014. Moreover, the Service is waiving the arduous requirement to file a Form 3115 Read more

Regulations Bring Clarity to Treatment of Tangible Property Expenses

TaxConnections Blog Post - Harold Goedde about Tangible Property RegulationsWhile many of us were working long hours in mid-September to wrap up the 2012 tax filings for our clients, the IRS was busy as well. On September 13, 2013, the IRS issued the final, revised tangible property regulations TD 9636. In doing so, the taxing authorities have provided clarity for taxpayers in many areas surrounding the treatment of capital expenditures.

These regulations govern the treatment of expenditures incurred in acquiring, producing, or improving tangible assets, including rules on determining whether costs related to tangible property are deductible repairs or capital improvements. The regulations have broad application – they affect all taxpayers that acquire, produce, or improve tangible property.

History

By issuing these regulations, the IRS has sought to resolve the capitalization vs. expense conundrum that has befuddled taxpayers for years. These regulations have followed a tortuous path—the original proposed regulations from 2006 were withdrawn in 2008 after receiving a negative reception, and new proposed regulations were issued. Then in 2011 the 2008 proposed regulations were withdrawn and new regulations were issued in temporary and proposed forms. Those regulations were originally intended to be effective in 2012, but the difficulty of adopting the Read more

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