Treasury Working on New Guidance on Accounting for Tangible Property

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The government plans to issue another set of guidance in December to help taxpayers interpret final rules (T.D. 9636) on accounting for the costs of maintaining, fixing and repairing tangible property, a Treasury Department official said.
Scott Mackay, a Treasury taxation specialist who was a key part of the team that worked on the final rules, said Oct. 28 that Treasury and the Internal Revenue Service plan to issue two revenue procedures. “We have all hands on deck to move this out by the end of the year,” he said.
Speaking at the Tax Executives Institute 68th Annual Conference in New Orleans, Mackay said the revenue procedures will be for taxpayers to use in making any tax method accounting changes under the final rules the government unveiled in September (179 DTR GG-1, 9/16/13). The rules address whether taxpayers must capitalize or can deduct expenses related to tangible property.

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