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The Section 263A regulations are expected to impact nearly all taxpayers with inventory that are subject to UNICAP. Given the significant complexity of the regulations, and the time required to conduct a UNICAP study, taxpayers should act before year end or sooner to identify required or advantageous accounting method changes and to assess the impact of the regulations for financial reporting.
The breadth of the new rules likely will require many taxpayers using a simplified method to change one or more methods of accounting to comply with the new regulations. We recommend that companies work with PwC to help them comply with these new rules by using the following tailorable approach: