Professor Donald Williamson, executive director of the Kogod Tax Center, testified May 9 at an IRS hearing on temporary regulations on tangible property.
These regulations, released late in 2011, apply to expenditures made in 2012. Specifically, they relate to the deduction and capitalization of expenses for tangible property, and they affect all business owners—even those who own the smallest of businesses and file the simplest returns, often without the assistance of a tax adviser.
Williamson argues that the regulations, which seek to establish greater technical accuracy so taxable income is not distorted, place an undue burden on the business owners. If the regulations were to become permanent, he believes they may result in unintentional or intentional noncompliance.
He offered the five potential improvements to the regulations; these can be reviewed in his planned testimony statement here.