On Nov. 19, the IRS issued final regulations (T.D. 9843) that amend the uniform capitalization (UNICAP) rules under Sec. 263A. The IRS also updated the procedures by which taxpayers can get automatic consent to change their methods of accounting to reflect the new regulations (Rev. Proc. 2018-56).The IRS says the rules issued in T.D. 9843 are intended to reduce various "compliance costs, burden, and administrative complexity" under Sec. 263A. The regulations provide rules for the treatment of negative adjustments related to certain costs required to be capitalized to property produced or acquired for resale. They also provide a new simplified method of accounting — called the modified simplified production method — for determining the additional Sec. 263A costs that must be capitalized to ending inventory or other property on hand at the end of the year. For details about these regulations, see "Negative Additional Sec. 263A Costs," in the Tax Clinic.