IRS Issues New Safe Harbor Rules for Natural Gas Repairs: What Rate-Regulated Utilities Need to Know

The IRS has issued a new revenue procedure, Rev. Proc. 2023-15, providing a safe harbor method of accounting for natural gas transmission and distribution property repairs, maintenance, replacements, and improvements. This new method allows taxpayers to classify these costs as either capital or deductible expenditures, providing clear and bright-line rules to reduce the burden of compliance.

Vadim LantukhMay 8, 2023tax, accounting, rate regulated utilities, utility industry, lucasys tax, lucasys, tax software, fixed asset accounting, irs, safe harbor, natural gas repairs, rate-regulated, capitalization, tax accounting software, capital expenditures

Capitalization of Cloud Computing Costs

Moving data, applications and platforms to the cloud creates substantial business benefits as companies reduce capital expense outlays while maintaining a more flexible IT environment. Though the advantages are numerous, companies pursuing cloud computing solutions need to consider the financial reporting implications as well as broader tax and IT considerations that result from recent guidance on accounting standards effective in 2020 for public business entities.