This item explores the approach taken by the Third Circuit in determining whether a retailer qualified for the recurring-item exception.
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Topics
Methods
Considering cash: Advantages and availability of the cash method of accounting
When not required to use the accrual method, taxpayers should consider the benefits provided under the cash method.
Rules proposed for accounting method changes to reflect FASB revenue recognition standards
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.
Ninth Circuit Upholds Homebuilder’s Use of Completed-Contract Method
A homebuilder could apply the percentage-of-completion method for income deferred under the completed-contract accounting method, based on completion of the development rather than on the sale of individual homes.
Change to Accrual Accounting Will Not Delay Taxes on Certain Deferred Compensation Beyond 2017
The IRS clarified that a taxpayer may not delay the income inclusion of the grandfathered deferred compensation amounts beyond 2017 by requesting a change in method of accounting.
Eligibility Rule Waiver Extended for Taxpayers Adopting Repair Regs.
The IRS extended for one year its waiver of the eligibility rule that generally prevents taxpayers from using the automatic accounting method change procedures to change the treatment of the same item more than once within a five-year period.
Common Income Tax Accounting Pitfalls
This article highlights a few ASC Topic 740, Income Taxes, tax matters companies have missed or overlooked in tax provisions.
Unexpected Change of Accounting Method
In some situations, an accounting method must be changed by operation of law.
Avoiding Conversion to the Accrual Accounting Method by Electing S Status
A corporation may have to use the accrual
method if it is required to maintain inventory records.
IRS Issues Rules for Money Market Fund Accounting Methods
The IRS finalized regulations that implement new SEC rules that change how gains and losses in money market funds are calculated.
IRS Updates Automatic Accounting Change Procedures
Unless otherwise provided, a taxpayer must secure the IRS’s consent before changing its accounting method.
Potential Expiration Is Not an Event
A grocery store/gasoline retailer could take a deduction for discounts on gasoline purchases that the store’s customers had accrued but not yet taken at the end of the year.
Evolving Revenue Recognition Issues: Manufacturers
Any part of the five-step model may cause a significant departure from the current financial reporting practices of many manufacturers and may also have significant income tax implications.
New Revenue Procedure Updates List of Automatic Accounting Method Changes
The IRS updated the procedures taxpayers must use to make automatic changes in accounting method.
Retailer and Restaurant Remodel-Refresh Safe Harbor: Frequently Asked Questions
Taxpayers have had significant questions regarding the safe harbor.
Understanding the Safe Harbor for Ratable Service Contracts
This column focuses on what the revenue procedure provides to taxpayers that was not previously available.
New Form 3115 Is Required, IRS Announces
The IRS alerted the public that a new Form 3115, Application for Change in Accounting Method, has been issued with a revision date of December 2015, the first revision since 2009.
Updating the Fixed-Asset Listing With Estimates After Sampling
This item discusses best practices to consider when planning a tangible property regulations sample.
What Does the New Revenue Recognition Standard Mean for Tax?
Companies should get a jump on analyzing the effects of implementing the standard and evaluating tax methods.
The Sec. 461 All-Events Test: Timing for Deducting Accrued Warranty Claims
Practitioners must carefully consider several tests under Sec. 461 to determine the deductibility of accrued warranty expense for tax purposes.
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.
