Tax Accounting

Topics

May 10, 2018

IRS updates automatic accounting method change procedures

The IRS issued updated procedures for automatic accounting method changes. The new rules generally apply to changes on or after May 9, 2018.

May 1, 2018

IRS finds future costs of fuel rewards are subtracted from gross receipts when earned

An accrual-method taxpayer could reduce gross receipts by the estimated future cost of fuel reward redemptions in the tax year that the customer earns those rewards.

May 1, 2018

Which taxpayers are potentially subject to the new ‘BEAT’?

Imposition of a base-erosion and anti-avoidance tax adds fresh complexity to the calculation of transfer-pricing tax and accounting results.

May 1, 2018

Deducting deferred bonuses

Numerous rules and restrictions govern the timing
of deductibility of bonuses accrued in one year and paid in another.

April 3, 2018

IRS guidance addresses limitations on business interest expense

The IRS has issued initial guidance on the new rules governing the deductibility of business interest in Sec. 163(j), as amended by the Tax Cuts and Jobs Act of 2017.

March 22, 2018

Guidance addresses partnership accounting when IRS collects underpayments

A new technical question and answer from the AICPA provides nonauthoritative guidance to help financial statement preparers account for the amount a partnership pays the IRS under these circumstances.

March 1, 2018

SEC permits reasonable estimates of tax liability to ease effect of new tax law

SEC allows companies to use reasonable estimates of their tax liability post-tax reform.

February 7, 2018

FASB moving forward on reclassification of stranded tax effects

FASB is moving quickly to give financial statement preparers a targeted improvement in their accounting for effects of the new tax reform law.

February 1, 2018

Investment adviser’s inducement payments to shareholders are not intangibles

The IRS ruled that the inducement payments were otherwise deductible under Sec. 162 and were not capitalizable under Sec. 263(a).

January 18, 2018

FASB proposes corporate reporting change related to new tax law

FASB proposed a new standard that is intended to help organizations reclassify certain income effects in accumulated other comprehensive income resulting from the Tax Cuts and Jobs Act.

January 10, 2018

FASB addresses financial reporting impacts of new tax law

FASB addressed numerous financial reporting implications of P.L. 115-97, known as the Tax Cuts and Jobs Act.

January 2, 2018

SEC permits reasonable estimates in corporate tax reporting

Companies may initially have difficulty determining the effects of the new federal tax law on their income tax reporting.

November 1, 2017

Completed-contract method allowed for grading and soil compaction

A taxpayer’s long-term construction contracts requiring grading and soil compaction qualify for the completed-contract method of accounting.

October 1, 2017

Accounting method change procedures under the new revenue recognition standards

IRS proposed procedures that may be used to request consent to change a method of accounting for recognizing income related to the new standards.

October 1, 2017

Sec. 481 adjustment can make end run around the statute of limitation

This item explains how a change in accounting method can result in an extended statute of limitation.

October 1, 2017

Accelerating deductions with payroll tax accruals

This item focuses on how payroll tax accruals might be deducted in 2017 rather than 2018 without additional costs for the employer and no adverse tax consequences for the employees.

September 1, 2017

How the death of a partner could affect a partnership’s year end

Partnerships must reevaluate their current fiscal year when a partner dies, since the estate may have a different year end than the individual partner.

August 1, 2017

Market discount rules: In search of an escape route for distressed debt

Many times a taxpayer who has purchased distressed debt is unaware of the unfavorable results of the market discount rules.

July 1, 2017

Improvements to employee share-based payment accounting

A new rule eliminates the need for companies to continue to track their windfall pools.

July 1, 2017

Tax reform: Accounting method opportunities

Accounting method planning that accelerates deductions or defers revenue could provide corporations with the potential to take deductions at the current rate and recognize revenue at a proposed lower rate.