In today’s world, most businesses will develop a website and the costs involved can vary greatly depending on the complexity of the site. Website development can be complex and understanding the appropriate tax treatment of the costs can be similarly complex. Do website development costs fall under the “intangible” category of tax section 197 to be amortized over 15 years, or should the expense be deducted immediately as an advertising expense? Is there another way to account for the expense? While there has been massive growth in website development costs over the past few years, the IRS has not issued formal guidance to answer these questions.