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Mixed Service Costs Information Document Request (IDR) #3

  1. Provide a list of the departments that you determined to be mixed service departments.
  2. Provide a description of the functions performed in each of the departments you identified as mixed service departments.
  3. Provide a job description of all the employees in the departments you identified as a mixed service departments.
  4. For each mixed service department, provide a schedule of the costs that you determined were incurred by that department.
  5. Identify and provide the computations on how the costs associated with the mixed service departments were allocated between production of self-constructed assets (capitalizable production activities) and deductible activities (non-production activities). 
  6. Provide a detailed description of the production and non-production activities within each department that you identified as a mixed service department.

NOTE:  Once the audit team has obtained the job descriptions,  it is recommended that the following audit techniques be used:

  1. Request and review detailed timesheet data.
  2. Conduct interviews of the personnel in these departments.  
  3. Request project identification/work order summaries.

All this data should be examined to determine if the costs incurred by these departments include:

  1. Direct production costs (both material and labor), or
  2. Clearly capitalizable service costs, and/or,
  3. Clearly deductible service costs which are not mixed service costs as defined in § 1.263A-1(e)(4)(ii)(C).

If it is determined that the departments do not support both production and non-production activities, then they are not mixed service departments.  They are either capitalizable or deductible service departments.
 

Page Last Reviewed or Updated: 26-Nov-2013