The IRS and the Treasury Department have accepted a request for guidance under the IRS’s Industry Issue Resolution Program regarding capitalization rules used by restaurants.

The request seeks guidance on the capitalization rules including:

  • Application of unit of property rules;
  • Refresh and remodel expenses; and,
  • Rules for general maintenance and repair expenses.

The IIR program aims to resolve business tax issues common to significant numbers of taxpayers through new or better guidance. In past years, issues have been submitted by associations and others representing both small and large business taxpayers. For each issue selected, an IIR team of IRS and Treasury personnel gather relevant facts from taxpayers or other interested parties to recommend guidance.
Business associations and taxpayers may submit issues they believe the IIR Program could help resolve to IIR@irs.gov. Selection criteria and submission procedures are outlined in Revenue Procedure 2003-36 at IRS.gov.

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