AICPA Asks IRS to Revisit Repair Regulations The American Institute of Certified Public Accountants (AICPA) has asked the IRS to revisit the final tangible property (repair) regulations ( T.D. 9636). The AICPA expressed concern about the $500 de minimis safe harbor, prospective application and administrative burdens. Background For acquisitions of tangible property, a de minimis safe harbor in the final regulations allows taxpayers to deduct certain items. The safe harbor applies to items that cost $5,000 or less (per item or invoice) and that are deductible in accordance with the company’s applicable financial statement (AFS). The final repair regulations also provide a $500 de minimis safe harbor threshold for taxpayers without an applicable financial statement. AICPA recommendations The AICPA urged the IRS to increase the de minimis safe harbor threshold amount for taxpayers without an applicable financial statement from $500 to $2,500. The AICPA also recommended adjusting the de minimis safe harbor threshold amount on an annual basis for inflation. Additionally, the AICPA proposed allowing qualified small businesses to elect to apply the repair regulations prospectively, without calculating adjustments with respect to prior-year tangible property costs.