The IRS issued guidance on how taxpayers can take advantage of various provisions enacted by last year’s PATH Act.
Tax Accounting (Methods & Periods)
The IRS provided updated rules for the various accounting method changes that qualify for automatic consent from the IRS.
Taxpayers should note the interplay between tax accounting methods and tax credit eligibility when choosing to adopt or change their method specific to software development activities.
This item explores the approach taken by the Third Circuit in determining whether a retailer qualified for the recurring-item exception.
When not required to use the accrual method, taxpayers should consider the benefits provided under the cash method.
The IRS is asking for comments on proposed procedures for requesting consent to make accounting method changes to reflect FASB’s new revenue recognition standards.
The IRS released the inflation adjustments to the depreciation limits for cars and trucks used for business purposes in 2017.
In addition to extending bonus depreciation and phasing out the bonus rate, the PATH Act made several changes to the types of eligible property under Sec. 168(k)(2).
The IRS’s LB&I division released its latest Audit Techniques Guide.
The IRS announced that it has updated various 2016 form instructions to reflect changes to AMT adjustments made by the PATH Act.
A homebuilder could apply the percentage-of-completion method for income deferred under the completed-contract accounting method, based on completion of the development rather than on the sale of individual homes.
The IRS clarified that a taxpayer may not delay the income inclusion of the grandfathered deferred compensation amounts beyond 2017 by requesting a change in method of accounting.
The IRS extended for one year its waiver of the eligibility rule that generally prevents taxpayers from using the automatic accounting method change procedures to change the treatment of the same item more than once within a five-year period.
This article highlights a few ASC Topic 740, Income Taxes, tax matters companies have missed or overlooked in tax provisions.
In some situations, an accounting method must be changed by operation of law.
A corporation may have to use the accrual method if it is required to maintain inventory records.
An S corporation was not eligible to elect the safe harbor since it was the target of the acquisition, and it must capitalize the success-based fees that it claimed as an expense.
FASB issued an accounting standard that is designed to simplify the financial reporting for the income tax consequences of intra-entity transfers other than inventory.
The initial adoption of the tangible property regulations has passed, but practitioners should continue to monitor partial asset dispositions and de minimis safe-harbor elections.
The IRS finalized regulations that implement new SEC rules that change how gains and losses in money market funds are calculated.