Reviewing Assets for Tax Compliance

Sometimes the IRS issues regulations that affect assets that you have already entered in the system. These regulations may require that you change some of the asset information so that your assets comply with the regulations.

For example, in July of 2025, Congress passed legislation that was signed into law that retroactively allows a 168 Allowance of 100% to be taken for assets placed in service after 1/19/2025. If you have already entered assets that were placed in service after 1/19/2025 with a 168 Allowance of 40% and you wish to take the 168 Allowance of 100%, you can run the Audit Advisor. It will identify and group these assets to help you review them. You can run thee 168 Allowance Switch to easily switch the assets from 40% to 100%.

You can use the Audit Advisor feature to locate assets that may not be in compliance with IRS regulations. For information about the types of potential problems that the Audit Advisor looks for, see Audit Advisor Validations.

Note: The Audit Advisor helps you locate assets that may not be in compliance with IRS regulations. Running the Audit Advisor does not change any of your asset data. It is up to you to decide whether to change the information for your assets.

To review assets for tax compliance

1. Select Depreciation/Audit Advisor from the menu bar. The system displays the Audit Advisor window.
2. Complete the Audit Advisor window, and then select the Run Review button. The system reviews the assets in the selected book for the selected fiscal year, and it displays the results on your computer’s screen.

The system also creates groups of assets that may not comply with IRS regulations so that you can review the assets more easily. The report indicates the names of the groups that the system creates.