IRS Announces New Industry Focus Areas
As part of its Industry Issue Resolution Pilot Program, the IRS has announced it will focus on the following seven areas:
- Golf course construction costs
- Clarification of the conformity election by banks for bad debts
- Demonstrator vehicles provided for employee use
- Reporting of payments to employees who own heavy equipment used by their employers
- Treatment of restaurant smallwares packages
- Determination of recoverable reserves of oil and gas for cost depletion purposes
- Local impact fees associated with low income housing tax credit property
The IRS plans to develop consistent positions in hopes of removing uncertainty and guess work regarding tax treatment of these areas.
"The goal of the Industry Issue Resolution program is to move away from auditing frequently disputed industry issues on a case-by-case basis and toward solutions that apply to significant numbers of business taxpayers," according to Larry Langdon, commissioner of the Large- and Mid-Size Business Division at the IRS.