Tax Computation

Topics

April 1, 2023

Improve fixed-asset management with technology

This item focuses on how to use technology to improve fixed-asset management.

June 1, 2022

Early signs from Treasury on the scope of digital asset cost basis reporting

This item discusses issues Treasury will have to grapple with when it provides cost basis reporting guidance.

February 1, 2020

Timing of revenue: Prop. regs. issued under Sec. 451(b)

New Sec. 451(b) may require accrual-method taxpayers with applicable financial statements to accelerate the recognition of gross income in certain situations.

January 1, 2019

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.

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.

February 1, 2015

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.

July 24, 2013

Rules for Deferral of Income From Gift Card Sales Clarified

The IRS issued guidance clarifying that taxpayers that sell gift cards can defer recognizing income from the sale of gift cards redeemable by an unrelated third party until the year after the payment is received.

June 1, 2012

Appeals Court Invalidates Associated Property Rule in Capitalization Regulations

The Federal Circuit held that the “associated property” rule requiring capitalization of interest expense under Sec. 263A was invalid insofar as it applies to property temporarily withdrawn from service.

November 1, 2011

Deferral of Income from Sale of Gift Cards

This item summarizes the recently released Rev. Proc. 2011-18, which provides guidance on the deferral of income from the sale of gift cards.

June 1, 2011

IRS Issues Guidance on Treatment of Gift Cards

This item provides background information on the tax and accounting treatment of gift card income and discusses two revenue procedures that address these issues.

May 1, 2011

Favorable Guidance Issued on Deferral of Gift Card Sales and Gift Cards Issued for Returned Goods

The IRS issued two taxpayer-favorable revenue procedures addressing the treatment of payments received for gift cards.

May 1, 2010

Deducting Deficiency Interest Expense in the Proper Tax Year

Deficiency interest is often overlooked after the audit cycle closes. Taxpayers can effectively plan the timing of deducting deficiency interest simply by being aware of when proposed audit adjustments are agreed upon.

June 1, 2009

Electric Utility Refunds Qualify for Sec. 1341 Tax Mitigation

In a recent private letter ruling, the IRS determined that a publicly regulated utility is entitled to claim benefits under Sec. 1341 for amounts paid to a purchaser of electricity to settle claims asserted against predecessor members of the publicly regulated utility’s affiliated group.

February 1, 2009

Treatment of Gift Card/Certificate Sales: No Answers, More Questions

This item highlights certain issues raised by a recent IRS Large and Mid-Size Business Division directive dated October 3, 2008, about the treatment of revenue from the sale of gift cards