KPMG: Tax Executives Unsure What to Make of New IRS Rules

A slew of new tax regulations introduced by the U.S. Treasury Department and the Internal Revenue Service have been met with skepticism by corporate finance chiefs, according to a new study from KPMG.

The rules are designed to "repair" existing tax liabilities and reporting obligations, while the proposed Treasury regulations address rules related to the capitalization of expenses incurred to acquire, maintain or improve tangible properties.

However, nearly two-thirds of surveyed tax executives - 62 percent - are unsure about whether to view the new rules as favorable or unfavorable. Twenty-three percent claimed they were favorable, and 15 percent said they were unfavorable. Finally, 42 percent of respondents said they expect the new regulations to be more difficult to administer in practice.

"The Repair Regs affect most industries and corporate taxpayers," said Eric Lucas, a principal in KPMG's Washington National Tax practice. "The new regulations are quite extensive, so the uncertainty around their impact on tax operations is not surprising. Regardless, they are effective in the 2012 tax year and taxpayers will need to get up to speed and prepare quickly."