IRS Practice Unit: Using Financial Statement Method to Value Ending Inventory for UNICAP (IRC §471)

Changes in tax code Section 471 costs for a taxpayer that qualifies to use the alternative method under the final Section 263A Treasury regulations, the IRS Large Business and International Concept Unit outlined in a practice unit released December 4. The alternative method allows certain taxpayers to use their financial statement method of accounting to determine amounts for Section 471 costs in ending inventory in accordance with Treasury Regulations Section 1.263A-1(d)(2)(iii), the IRS stated. The new definitions of Section 471 costs and additional Section 263A costs apply to taxable years beginning on or ...