The U.S. IRS has published a practice unit on Examining a Reseller's 263A Computation. The process overview of the practice unit includes the following: This Practice Unit provides tax law and audit steps for reviewing a reseller's uniform capitalization cost computations under IRC 263A. Treas. Reg. 1.263A-3 focuses on the costs a reseller must capitalize to inventory. The regulations define resellers as retailers, wholesalers, and other taxpayers that acquire property described in IRC 1221(a)(1) for resale. IRC 1221(a)(1) property is the taxpayer's stock in trade or other property of a kind that the taxpayer would properly include in its inventory...