TCJA changes increase the pool of taxpayers qualifying for favorable small business accounting method reform.
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Methods
Accounting method change procedures for book-tax conformity rule
The IRS announced procedures for taxpayers to change their accounting method to comply with the amendment of Sec. 451(b) enacted by the tax law known as the Tax Cuts and Jobs Act.
UNICAP rules on negative adjustments finalized
The IRS issued final regulations on the use of negative adjustments under Sec. 263A’s simplified methods for determining costs that must be capitalized.
Proposed regs. reflect amendments to all-events test and advance payments
The IRS is proposing to remove regulations on advance payments and long-term contracts to reflect amendments to Sec. 451 included in the law known as the Tax Cuts and Jobs Act.
IRS issues procedures for implementing accounting method changes related to ASC Topic 606
This discussion highlights some of the provisions
and potential implications of the new automatic method change procedures.
Accounting method change procedures are revised
The IRS issued updated procedures for automatic accounting method changes. The new rules generally apply to changes on or after May 9, 2018.
Can a trade or business include activities conducted in a different entity?
This discussion focuses on whether a taxpayer’s trade or business can include activities conducted
through a different entity.
Accounting method planning for 2017 can result in permanent tax benefits
A corporate tax rate change provides an opportunity for taxpayers to make favorable accounting method changes for the 2017 tax year to create permanent
tax benefits.
The intersection of new Sec. 451 and revenue recognition
The amendments to Sec. 451 potentially affect a broader cross section of taxpayers than almost any other change made by the TCJA.
IRS updates automatic accounting method change procedures
The IRS issued updated procedures for automatic accounting method changes. The new rules generally apply to changes on or after May 9, 2018.
IRS finds future costs of fuel rewards are subtracted from gross receipts when earned
An accrual-method taxpayer could reduce gross receipts by the estimated future cost of fuel reward redemptions in the tax year that the customer earns those rewards.
Completed-contract method allowed for grading and soil compaction
A taxpayer’s long-term construction contracts requiring grading and soil compaction qualify for the completed-contract method of accounting.
Accounting method change procedures under the new revenue recognition standards
IRS proposed procedures that may be used to request consent to change a method of accounting for recognizing income related to the new standards.
Sec. 481 adjustment can make end run around the statute of limitation
This item explains how a change in accounting method can result in an extended statute of limitation.
Tax reform: Accounting method opportunities
Accounting method planning that accelerates deductions or defers revenue could provide corporations with the potential to take deductions at the current rate and recognize revenue at a proposed lower rate.
Procedures for obtaining automatic accounting method changes are revised
The IRS provided updated rules for the various accounting method changes that qualify for automatic consent from the IRS.
Guidance proposes accounting method changes for FASB revenue recognition
The IRS is asking for comments on proposed procedures for requesting consent to make accounting method changes to reflect FASB’s new revenue recognition standards.
IRS extends waiver to ease transition to file certain tangible property regs. method changes
IRS extended specific eligibility rule waivers by a year for taxpayers filing an automatic consent change in accounting method to comply with the tangible property regulations.
Automatic accounting method change procedures updated
The IRS provided updated rules for the various accounting method changes that qualify for automatic consent from the IRS.
Interplay between Sec. 174 and Sec. 41 for software development activities
Taxpayers should note the interplay between tax accounting methods and tax credit eligibility when choosing to adopt or change their method specific to software development activities.
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.
