Article Date:
January 2011

Word Count:



Tax Tip: The Classic Repair—the Farmer’s Creamery Case

On November 12, 2010, the IRS issued its audit technique guide on capitalization versus repairs.1


The IRS audit guide provides IRS examiners with the IRS version of the definition of repairs versus that of improvements.


Farmer’s Creamery gives you a look at a case that the IRS lost and to which it non-acquiesced (meaning that it disagreed with the court’s decision and would not follow the case).2 Since the non-acquiescence in 1954, courts have continued to cite and follow the reasoning in ... Log in to view full article.

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