The ATG for cost segregation provides a wealth of information for consultants completing cost segregation studies and for tax professionals trying to choose a cost segregation specialist.
For example, in Chapter 3 they look at the various methods that may be employed in cost segregation studies. The IRS’ preferred method is an engineering-based approach, using site inspection, cost records, and technical documentation. MS Consultants employs just such an approach in our cost segregation studies: our engineering-based approach follows the IRS’s guidelines to the fullest, and provides our clients with “the most methodical and accurate approach, relying on solid documentation and minimal estimation.”
And in Chapter 4, the ATG discusses what the IRS considers to be a “quality” cost segregation study and report. If you compare the principal elements discussed in this guide with the elements of MS Consultants’ reports, you’ll see the similarities. It’s because of this stringent adherence to the IRS’ guidelines that our reports have historically held up so well to audits. And that performance gives us the confidence to offer free audit support with all of our studies: because we’re confident that you won’t need much—if any—support.
Take a minute to read through the full Cost Segregation Audit Technique Guide to the right.
Remember: ATGs are not authoritative, and should not be treated as tax law. However, they are the IRS' guidance to their examiners, and offer excellent insights to taxpayers and tax professionals alike on how best to prepare studies and reports.