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April 14, 2023
2023-0714

IRS offers safe harbor for determining whether expenses from natural gas transmission and distribution property must be capitalized

In Revenue Procedure 2023-15, the IRS provides a safe harbor method of accounting that taxpayers may use to determine whether they must capitalize expenses to repair, replace, or improve natural gas transmission and distribution property. The safe harbor requires a taxpayer to classify its natural gas transmission and distribution property as either linear (e.g., pipes, valves) or non-linear (e.g., compressors) and then use particular methods of accounting according to the type of property. A Tax Alert is forthcoming.

Published by NTD’s Tax Technical Knowledge Services group; Carolyn Wright, legal editor

 

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