Businesses are affected in different ways and to different degrees . Most popular accounts of the problem have been focused on software. Most organizations will need to analyze their accounting, payroll, accounts receivable and other related business applications. Most software companies have a Y2K upgrade available and are typically less expensive than a new software purchase. The IRS says that it will allow a full tax deduction in a single year for businesses having to repair or convert existing software.
Computer hardware is another area of concern .
Most computer companies offer a Year 2000 testing and consultation service. If you do not have someone in your company to evaluate your hardware it is advised that you contact your computer service representative to setup an evaluation of your equipment. IRS has not addressed a special deduction for hardware upgrades. Computer software and hardware are the most critical areas affected by Y2K , but do not overlook other systems within your business that could be affected. Anything controlled by a date sensitive embedded system could be affected.