The Internal Revenue Service has released a list of industry-specific issues that its auditors may consider when examining a business’s returns.

The IRS is looking at cost segregation studies of whether an asset is Section 1250 property (which generally has a 39-year recovery period) or Section 1245 property (generally a five- or seven-year recovery period). The IRS said there has been an increase in claims reclassifying Section 1250 property as Section 1245 property. The issue affects various industries, including retailers, food, pharmaceuticals, and healthcare.

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