The U.S. IRS has published a practice unit on Examining a Reseller's 263A Computation. The process overview of the practice unit includes the following:
This Practice Unit provides tax law and audit steps for reviewing a reseller's uniform capitalization cost computations under IRC 263A. Treas. Reg. 1.263A-3 focuses on the costs a reseller must capitalize to inventory.
The regulations define resellers as retailers, wholesalers, and other taxpayers that acquire property described in IRC 122…