A passthrough entity business cannot use the cash method of accounting if it is classified as a syndicate. This article discusses this rule and ways a passthrough entity business that is currently not a syndicate can avoid being reclassified as one and losing the use of the cash method.
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Methods
Tax accounting method changes: Procedures and potential issues during an IRS exam
Tax practitioners should be familiar with the special rules that apply and issues that can arise when an accounting method change is made while a taxpayer is under IRS examination.
Automatic consent to Sec. 174 accounting method changes modified
In a revenue procedure, the IRS amended the process for changes in tax years after 2021.
New prop. regs. limit taxpayers’ foreign currency elections
The regulations would promote consistency with filing requirements for controlled foreign corporations and limit certain elections regarding foreign currency gains and losses.
Card reward liabilities are eligible for the recurring-item exception
A Chief Counsel Advice memo confirms that accrual-method credit card issuers may use the favorable method, distinguishing the situation from that of Giant Eagle.
IRS updates list of automatic changes
the IRS has updated the list of accounting method changes for which the automatic change procedures of Rev. Proc. 2015-13 (as modified) apply.
A UNICAP exception for real estate development
This item focuses on how real estate owners that develop, hold, and rent their own property can benefit from an exception to Sec. 263A uniform capitalization requirements if they qualify as “small businesses.”
Partnership extraordinary-item treatment for accounting method adjustments
The regulations under Secs. 481(a) and 706 set forth rules governing a partnership’s treatment of accounting method changes and partner allocations but do not provide clear guidance on how income from an unfavorable Sec. 481(a) adjustment should be allocated among partners with varying interests during the four-year recognition period.
The must-know accounting methods for 2022 (and after)
This item highlights five topics specifically related to accounting methods to help taxpayers and practitioners comply with law changes, streamline onerous compliance processes, and minimize tax liabilities.
R&E expenses: Automatic accounting method change procedures
This item discusses IRS guidance explaining the procedures for taxpayers to request automatic accounting method changes for specified R&E expenses to comply with the 2017 amendments to Sec. 174.
Foreign tax credit: Changing from cash to accrual basis
Regulations provide regulatory authority for Treasury’s long-held position that an individual taxpayer who elects on a timely filed return to claim the foreign tax credit on the cash basis may not change to the accrual basis on an amended return.
New accounting method change procedures issued for small business taxpayers
The IRS and Treasury released two revenue procedures on accounting method change procedures.
List of automatic tax method changes updated
A revenue procedure catalogues changes subject to general procedures of Rev. Proc. 2015-13.
IRS issues accounting-method change procedures for small businesses
New procedures follow final regulations to implement simplifications by the law known as the Tax Cuts and Jobs Act.
Sec. 481(a) adjustment affects business interest deduction calculation
The IRS advised that a net negative Sec. 481(a) adjustment resulting from a change in method of accounting for depreciation must be included in calculating adjusted taxable income.
IRS provides new guidance on accounting method changes for CFCs
For a limited time, the IRS is allowing automatic change procedures for CFCs changing to the ADS method and has clarified the process and certain aspects of audit protection.
Automatic accounting method change procedures updated
The IRS updated the list of accounting method changes to which automatic change procedures apply.
Automatic accounting method change procedures updated
The IRS updated the list of accounting method changes to which automatic change procedures apply.
When does it make sense to elect out of the installment method?
Reporting gain in the year of a sale rather than with installments over time may become more attractive as proposals for higher capital gains tax rates gain traction. This article weighs the pros and cons.
Accounting method planning to increase taxable income
In certain circumstances, taxpayers may benefit from increasing taxable income; accounting method planning can help taxpayers achieve that objective.
TAX PRACTICE MANAGEMENT
2025 tax software survey
AICPA members in tax practice assess how their return preparation software performed during tax season and offer insights into their procedures.
