The IRS issued its annual notice specifying the special per-diem rates, including the transportation industry meal and incidental expenses rates, the rate for the incidental-expenses-only deduction, and the rates and list of high-cost localities for purposes of the high-low substantiation method.
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Tax Accounting
Tax accounting rules issued for advance payments
Taxpayers that use the accrual method and receive advance payments for good or services were given new rules by the IRS on when to include the advance payments in income.
The solar energy credit: Where to draw the line?
To determine the IRS’s likely treatment, an analysis is necessary of two Code sections that address energy credits: Sec. 25D and Sec. 48.
Understanding small taxpayer gross receipts rules
Although small taxpayer testing may be time-consuming, the tax and time benefits of a small taxpayer classification may be critical to certain taxpayers.
Foreign corporations may not receive audit protection for accounting method changes
This item discusses the limitation on audit protection that arises as a result of Sec. 965, enacted as part of the TCJA, which imposes a one-time “transition” tax on unrepatriated E&P of certain FCs.
The cost of deferred revenue
This article discusses the treatment of unearned revenue from a financial accounting and tax point of view and how unearned revenue can affect the seller and the buyer in an M&A transaction.
Future mineral production advance payments may be sooner than you think
The TCJA revised Sec. 451(c), changing the timing of taxation for certain advance payments, including advance payments for future mineral production
and delivery.
Tax accounting for businesses after the TCJA: Some widely applicable and lesser-known changes
This item discusses certain TCJA changes to domestic provisions relevant to tax accounting.
2019 inflation-adjusted vehicle depreciation limits and income inclusions issued
The IRS provided the limitations on depreciation deductions for passenger automobiles first placed in service in 2019 and the amounts of income inclusion for lessees of passenger automobiles first leased during 2019.
FASB proposes simplifying accounting for income taxes
FASB issued a proposal that is intended to make accounting for income taxes less costly and complex.
The not-so-simple aggregation rules for tax reform’s simplifying conventions
This discussion reviews the mechanics of the gross receipts test, highlights several potential traps for the unwary, and raises several common but still
unanswered questions.
Updated automatic method change procedures ease transition to new revenue recognition rules
Updated procedures provide a streamlined way to
comply with Sec. 451(b), which does not involve filing Form 3115 or attaching a separate statement to the tax return.
IRS issues safe-harbor procedure for vehicle bonus depreciation
The IRS issued a safe-harbor procedure that taxpayers may follow for determining the deduction for depreciating passenger vehicles when they are eligible for 100% bonus depreciation but are also subject to the Sec. 280F limits on deductions for luxury automobiles.
Accounting method change procedures provide for book-tax conformity
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.
Bonus depreciation safe-harbor rules for vehicles issued
The IRS issued a safe-harbor procedure that taxpayers may follow for determining the deduction for depreciating passenger vehicles when they are eligible for 100% bonus depreciation but are also subject to the Sec. 280F limits on deductions for luxury automobiles.
Negative additional Sec. 263A costs
Treasury and the IRS released final regulations T.D. 9843 under the uniform capitalization rules that deal with negative additional Sec. 263A costs.
Proposed bonus depreciation regs. provide answers, create new questions
The proposed regulations clarify the elections available to all taxpayers regarding bonus depreciation.
Final regulations amend the uniform capitalization rules
The IRS issued final regulations on the use of negative adjustments under Sec. 263A’s simplified methods for determining costs that must be capitalized.
Modification of variable prepaid forward contracts triggers gain realization
A Second Circuit decision may affect the analysis
of whether the modification of a derivative triggers gain or loss.
IRS confirms that Sec. 451(b) does not accelerate inclusion of market discount income
The IRS announced that it intends to issue proposed regulations confirming that taxpayers may continue to defer including market discount income in income for tax purposes until there is a payment or sale at a gain.
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.
