IRS Practice Unit: Producer’s Uniform Capitalization Costs, Audit Techniques (IRC §263A)

Application of the Uniform Capitalization of Costs under tax code Section 263A for a taxpayer who is a producer and suggested audit techniques when examining a producer’s Section 263A computation, the IRS Large Business and International Concept Unit outlined in a practice unit released February 25. The IRS discusses how to: (1) determine if the taxpayer produced inventory; (2) review the basic law and concepts for Section 263A and Section 471; (3) identify and determine the amount of additional Section 263A costs allocable to production activities; (4) determine the amount of Section 263A ...