This item provides examples of accounting method changes or elections that may decrease taxable income.
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Methods
Acceleration of deferred revenue in M&As
Sec. 451(c) should be considered when structuring such M&A transactions — including special rules
relating to short tax years of 92 days or less.
Final Sec. 451 regs. provide relief and additional complexities
This item discusses highlights of the Sec. 451(b) regulations, which address the timing of income recognition for accrual-method taxpayers with an applicable financial statement.
Highlights of the final small business taxpayer regulations
These simplifying provisions, which apply to small business taxpayers, expand the use of the overall
cash method of accounting and grant
exemptions from inventory methods
under Sec. 471, UNICAP rules under Sec. 263A, and
the use of the percentage-of-completion method for certain long-term construction contracts under Sec. 460.
Guide to expensing HVAC costs
This guide provides tax preparers an outline of questions to ask clients when evaluating HVAC repair costs.
Sec. 451(b) regs. renew interest in Sec. 460
Taxpayers should consider all available facts and circumstances when determining the suitability and
permissibility of a Sec. 460 long-term contract method.
The rules on interest for loans between related parties
This article discusses self-charged interest requirements.
Sec. 451 rules are finalized
The IRS issued final regulations on Sec. 451 income inclusion rules and advance payments, as those rules were amended by the TCJA.
Final rules for simplified accounting methods allow tax shelter annual election
The IRS finalized regulations for simplified accounting rules for small businesses.
Small business exemption regs. provide surprises for large taxpayers
The TCJA expanded the number of taxpayers
eligible to use the cash method under Sec. 448, expanded the exception from the uniform capitalization rules under Sec. 263A, and more.
Final rules govern income inclusion and advance payments
The IRS issued final regulations on Sec. 451 income inclusion rules and advance payments, as those rules were amended by the law known as the Tax Cuts and Jobs Act.
Simplified accounting rules for small businesses allow annual election
The IRS finalized regulations for simplified accounting rules for small businesses, which are defined as businesses with inflation adjusted average annual gross receipts of $25 million ($26 million for 2020 and 2021).
Small business taxpayers get simplified accounting rules
The IRS issued regulations on the simplified accounting method rules for small business taxpayers enacted in 2017 by the law known as the Tax Cuts and Jobs Act.
Small business accounting regulations and tax shelter implications
New simplified accounting rules for small businesses do not apply to tax shelters — and the definition of a tax shelter can cause problems for businesses with large deductions or losses during a tax year.
Simplified accounting rules issued for small businesses
The IRS issued regulations on the simplified accounting method rules for small business taxpayers enacted in 2017 by the law known as the Tax Cuts and Jobs Act.
IRS to allow faxing of automatic method change requests
The IRS announced that, beginning Friday, in response to the coronavirus pandemic, it is temporarily accepting duplicate copies of Form 3115, Application for Change in Accounting Method, sent by fax instead of mail.
UNICAP: Changing to the modified simplified production method
This discussion focuses on how to make the switch from the SPM to the MSPM.
ASC Topic 842 changes financial, but not tax, accounting for leases
Topic 842 does not affect how leases are treated for federal income tax purposes. Thus, differences in the treatment of leases for financial accounting and
income tax accounting remain, and implementing
Topic 842 may highlight improper historical tax accounting methods.
Reducing GILTI liability using CFC accounting method change procedures
Methods of accounting may be an effective tool in tax planning for GILTI; however, method change procedures for CFCs differ from procedures for domestic taxpayers.
Inflation adjustments affect small business limits, Sec. 179 expensing
Inflation adjustments for 2019 and 2020 may increase the number of taxpayers that qualify as a small business and the amount of costs that can be expensed under a Sec. 179 election.
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.
