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.
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Tax 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.
Acquired Taxpayer Is Not Eligible for Success-Based Fee Safe Harbor of Rev. Proc. 2011-29
An S corporation was not eligible to elect the safe harbor since it was the target of the acquisition, and it must capitalize the success-based fees that it claimed as an expense.
FASB Simplifies Financial Reporting for Income Taxes
FASB issued an accounting standard that is designed to simplify the financial reporting for the income tax consequences of intra-entity transfers other than inventory.
Final Regulations Govern Money-Market Funds
The IRS finalized regulations that implement new SEC rules that change how gains and losses in money market funds are calculated.
Application of Partial Asset Dispositions and the De Minimis Safe Harbor
The initial adoption of the tangible property regulations has passed, but practitioners should continue to monitor partial asset dispositions and de minimis
safe-harbor elections.
Benefiting From New Tangible Property Regulations and Disposal Provisions
This item discusses how a taxpayer could have benefits of both the MACRS disposition regulations and tangible property regulations limited or lost entirely by failing to perform required compliance in a timely manner.
Avoiding Cost Segregation Recapture Tax
Tax professionals should consider a number of worthwhile opportunities to reduce or avoid recapture tax that is realized upon sale of property.
Taxpayer Wins Big in Transfer-Pricing Dispute
The Tax Court held that the IRS had abused its discretion in reallocating income related to intercompany licenses for the intangible property to manufacture medical devices from a Puerto Rican company to its U.S. parent company.
FASB Proposes Changing Income Tax Disclosure Requirements
FASB issued a proposal Tuesday that would modify disclosures about income taxes that organizations are required to report on their financial statements.
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.
FASAB Seeks Transparency on Tax Expenditures
The Federal Accounting Standards Advisory Board proposed a standard with the intention of providing the public more information about the U.S. government’s tax expenditures.
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.
Deduct Your Demolished Building Using a General Asset Account
Recently released tangible property regulations provide a potential opportunity to continue depreciating a building after demolition has occurred.
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.
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.
