Tax Compliance

Topics

June 30, 2025

Announcement 2024-40: A gift and a curse?

While expenditures may be qualified investments for the Sec. 48D advanced manufacturing investment credit, related grant agreements are not long-term contracts under Sec. 460, the IRS announced.

March 31, 2025

A closer look at the costs of borrowing

Comparison of the accounting and tax treatment of interest expense may reveal crucial differences and lead to best practices for managing it.

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.

March 1, 2008

Accelerating FICA and FUTA Tax Deductions for Vacation and Bonus Pay

Rev. Rul. 2007-12 holds that if the all-events test and recurring-item exception of Sec. 461 are otherwise met, an accrual-method taxpayer may deduct FICA and FUTA tax expenses (payroll taxes) in the year that the deferred compensation to which they relate is earned, regardless of whether that deferred compensation is deductible in a later year under Sec. 404.

April 1, 2007

Accrued Payroll Tax Liability Is Deductible Even If Compensation Is Deferred Under Sec. 404

A recent ruling states that accrual-method taxpayers may deduct payroll tax liability incurred in the current year, for compensation deferred and deductible in the following year, under Sec. 404, provided the all-events test and recurring-item exception of Sec. 461 are met. Facts X, a corporation, uses an accrual method of