Final regulations further clarify the capitalization and expensing of amounts paid to acquire, maintain, improve, or replace tangible property, which will affect both taxable income and accounting for income taxes.
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Tax Accounting
Small Businesses Get Relief From Complying With the Tangible Property Regulations
Small business taxpayers will be allowed to make certain accounting method changes under the repair regulations without filing Form 3115 in their first tax year beginning on or after Jan. 1, 2014, the effective date of the regulations.
Cost-Segregation Studies and the Impact of the Tangible Property Regulations
This item highlights several important aspects of the final tangible property regulations and related transition guidance that may affect cost-segregation studies and resulting changes in accounting methods.
What Taxpayers Need to Know to Comply With the Final Tangible Property Regulations
An overview of the final tangible property regulations and discussion of the procedural guidance and what taxpayers will need to consider in complying with the final regulations.
Changes Are Proposed for Accounting for Income Taxes Under FASB ASC
FASB proposed two standards changes to Accounting Standards Codification (ASC) Topic 740, Income Taxes, that are designed to reduce complexity in accounting for income taxes.
New Procedures for Filing Accounting Method Changes Are Released
The IRS issued new procedures taxpayers should use to make accounting method changes.
Small Businesses Won’t Have to File Form 3115 to Comply with Repair Regs.
Small business taxpayers will be allowed to make certain accounting method changes under the tangible property (or “repair”) regulations without filing Form 3115, Application for Change in Accounting Method, the IRS announced.
Final Guidance Related to Tangible Property Regulations Provides Time-Limited Opportunities
IRS released guidance related to the tangible property regulations regarding depreciation and dispositions.
Sampling to Efficiently Implement the New Tangible Property Regulations: The Clock Is Ticking
New tangible property regulations apply to all current and certain prior-year tangible assets, creating compliance efforts and opportunities for immediate and long-term tax savings.
Changing an LLC’s Tax Year
An LLC’s required year can change for several reasons. A change in the LLC’s required year is treated as automatically approved by the IRS.
Income and Related Deductions for an Item Considered for an Accounting Method Change
A growing number of guidance items and recently issued Chief Counsel Advice suggest the IRS is continuing to move toward viewing gross income and related deductions jointly as one item in determining whether an accounting practice constitutes a method of accounting or an error.
Recent Guidance Raises Long-Standing Issue of What Is a Separate Trade or Business
Chief Counsel Advice takes a fresh look at whether divisions of a business are separate and distinct.
IRS Updates Accounting Method Change Procedures
The IRS issued new procedures taxpayers should use to make accounting method changes.
New Revenue Recognition Standard Has Significant Implications for Tax Accounting and Return Preparation
FASB and the IASB jointly issued a comprehensive new revenue recognition standard that will supersede nearly all existing revenue recognition guidance under U.S. GAAP and International Financial Reporting Standards.
Changing Method of Accounting to Comply With New Retail-Inventory Method Regulations
The IRS provided the exclusive procedures taxpayers must use to obtain consent to change a method of accounting to comply with the recently issued final regulations on the retail-inventory method of accounting.
New Simplified Accounting and Exception to Wash Sales for Money Market Funds
IRS issued guidance related to SEC changes in how certain money market fund shares are valued.
Final Sales-Based Vendor Allowance and Markdown Rules Are Issued
Recent regulations restate and clarify retailers’ computation of ending inventory value, including the application of common vendor discounts.
Final Set of Repair Regs. Issued
The IRS issued final regulations providing rules for how to determine gain or loss when property subject to depreciation is disposed of, how to determine the asset disposed of, and how to account for partial dispositions of depreciated property.
AICPA Asks for Raise in Repair Regulations’ De Minimis Safe Harbor Threshold
The AICPA raised concerns about the low amount of the de minimis safe harbor threshold in the tangible property regulations and about the retrospective application of the new rules.
The Application of the Success-Based Fee Safe Harbor to Milestone Payments
The IRS Large Business and International Division recently issued a memorandum providing that it will not challenge a taxpayer’s application of success-based fee safe harbor to certain “milestone payments” so long as specific criteria are met.
PRACTICE MANAGEMENT
2026 tax software survey
CPAs rate their return preparation software’s performance during this year’s tax season.
