The road to the final regulations has been an arduous one, and has involved significant revisions as the IRS solicited and received feedback. The good news is the IRS listened and considerably altered many aspects from the temporary regulations. The bad news is the regulations as issued still have an unusually large scope and will affect taxpayers in numerous ways. We estimate that the average business will need to make 4-6 changes in their accounting method to comply with the regulations. The purpose of the regulations was to accumulate and formalize numerous court cases on the capitalization of tangible property, and to provide examples of how to implement the 200+ pages of regulations. Check out our recent “Tax Impacts” bulletin which provides an introduction to the most common issues that will need to be addressed.This blog post is a summary and is not intended as tax or legal advice. You should consult with your tax advisor to obtain specific advice with respect to your fact pattern. Based on the most recent “best practice” standards for tax advisors issued by the Treasury Department, commonly referred to as Circular 230, we wish to advise you that this blog post has not been prepared to be used, and cannot be used, to provide assurance that penalties which may be assessed by the IRS or other taxing authority (including specifically section 6662 understatement penalties) will not be upheld.