Congress has launched a debate on comprehensive tax reform, the likes of which the country has not seen since 1986. As a result, the AICPA, in fulfilling one of its key roles as a leading professional organization, has been active in monitoring and educating Congress about the implications of various tax reform legislative proposals.
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Methods
Dispositions of Property Get Automatic Accounting Method Change Procedures
The IRS issued procedures for taxpayers to obtain automatic consent to accounting method changes involving dispositions of tangible depreciable property.
Common Improvements Considered in Home Construction Contract Completion
In determining whether a contract qualifies as a home construction contract, taxpayers may include costs attributable to common improvements and development of infrastructure in the estimated costs. However, the IRS and taxpayers have long disagreed as to whether these costs are included in the tests for determining the date a contract is complete.
Accounting Method Change Procedures for Sales-Based Royalties and Vendor Allowances Are Announced
Taxpayers who are adopting the new rules for sales-based royalties and vendor allowances under Sec. 263A and Sec. 471 were given new procedures for obtaining automatic consent to accounting method changes to conform to those rules.
Tax Court Clarifies the All-Events Test for Prepaid and Accrued Liabilities
Tax Court recently held that an accrual-method corporation was not permitted to change its method of accounting to accelerate the timing of various deductions because it failed to satisfy the requirements of the all-events test.
Accounting Method Change Procedures Under the Tangible Property Regs.
The IRS issued the second part of the guidance on accounting method changes under the so-called repair regulations.
Foreign Corporations: Procedures and Pitfalls in Adopting and Changing Methods of Accounting for Purposes of Determining E&P
This item provides a high-level discussion of the general timing for certain foreign corporations’ adoption of methods of accounting for purposes of determining E&P, the procedural rules regarding how such foreign corporations change their method of accounting, and the importance of understanding when and how a method is adopted in light of the increased limitations such foreign corporations may face in changing methods.
Repair Regs. Accounting Method Change Guidance Issued
The IRS issued guidance on accounting method changes under the final regulations governing the treatment of expenditures incurred in acquiring, producing, or improving tangible assets.
Guidance on Repair Regs. Updates Accounting Method Change Procedures
The IRS issued the second part of the guidance on accounting method changes under the so-called repair regulations, which govern the treatment of expenditures incurred in acquiring, producing, or improving tangible assets.
Taxpayer Not Properly Accounting for Advance Payments
The Office of Chief Counsel advised that a taxpayer was not properly using the method of accounting for advance payments in Regs. Sec. 1.451-5 for certain payments the taxpayer received pursuant to long-term agreements for the sale of goods.
Guidance Issued on Accounting Method Changes Under Repair Regs.
The IRS issued long-awaited guidance on accounting method changes under the so-called repair regulations, which govern the treatment of expenditures incurred in acquiring, producing, or improving tangible assets.
Repair Regulations Are Finally Issued
The IRS issued long-awaited final and proposed regulations regarding the treatment of expenditures incurred in acquiring, producing, or improving tangible assets.
Final Regs. Adopt Differential Income Stream Method for Cost-Sharing Agreements
The IRS issued regulations that govern the application of the differential income stream approach to cost-sharing arrangements.
Sale of Unrealized Receivables Not Eligible for Installment Method
The Tax Court held that the taxpayers could not report the portion of a sale of a partnership interest that was attributable to unrealized receivables using the installment method.
Understanding the Principles of DASTM Accounting
The DASTM rules govern the tax accounting of items from a qualified business unit that uses a functional currency that becomes “hyperinflationary” for U.S. federal income tax purposes.
LIFO Inventory Considerations When Making a C-to-S Conversion
A taxpayer valuing its inventory under the last-in, first-out (LIFO) method should consider two significant implications for taxable income when converting from a C corporation to an S corporation.
Tax Accounting Methods for Small Businesses
There are several simplifying conventions and accounting methods tailored to smaller business entities that can sometimes result in tax savings and streamline the tax return preparation process and recordkeeping requirements.
Collateral Issues to Consider in Repair Regs. Accounting Method Changes
Accounting method changes adopted under the repair regulations will, in certain cases, affect the computation of other deductions or credits allowed under the Internal Revenue Code.
Additional Time for Filing Automatic Accounting Method Changes
While taxpayers generally must obtain the IRS’s consent to change an accounting method for federal income tax purposes, the IRS grants automatic consent for certain accounting method changes, provided the taxpayer complies with certain procedures.
Accounting Method Changes Under the Tangible Property Regulations
This article details the method change rules under the current automatic consent procedural guidance and discusses the method changes that would be necessary to early adopt provisions of the temporary regulations.
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.
