A grocery store/gasoline retailer could take a deduction for discounts on gasoline purchases that the store’s customers had accrued but not yet taken at the end of the year.
Any part of the five-step model may cause a significant departure from the current financial reporting practices of many manufacturers and may also have significant income tax implications.
The IRS updated the procedures taxpayers must use to make automatic changes in accounting method.
Taxpayers have had significant questions regarding the safe harbor.
This column focuses on what the revenue procedure provides to taxpayers that was not previously available.
The IRS alerted the public that a new Form 3115, Application for Change in Accounting Method, has been issued with a revision date of December 2015, the first revision since 2009.
This item discusses best practices to consider when planning a tangible property regulations sample.
Companies should get a jump on analyzing the effects of implementing the standard and evaluating tax methods.
Practitioners must carefully consider several tests under Sec. 461 to determine the deductibility of accrued warranty expense for tax purposes.
Small business taxpayers should be aware of the implications of adopting the regulations through the small business exception.
Taxpayers using the accrual-basis method of accounting were given a safeharbor to treat economic performance as occurring on a ratable basis for certain service contracts.
The IRS asked for comments on what effect the new proposed financial accounting revenue recognition standards issued by FASB and the International Accounting Standards Board should have on taxpayers’ methods of accounting.
Qualifying accrual-basis taxpayers will be allowed to treat economic performance of certain service contracts as occurring on a ratable basis under a safe harbor introduced by the IRS.
The IRS has posted a draft revised version of Form 3115, Application for Change in Accounting Method, on its website.
The relief from the requirement to file Form 3115 may not be the best choice for all small business taxpayers. Find out here whether to revisit this choice.
Procedures for filing Form 3115, Application for Change in Accounting Method, for both automatic and nonautomatic method changes have been combined into one procedure, and the list of automatic method changes has been separated into its own procedure.
Taxpayers affected by the tangible property regulations will have more time to file Form 3115 under Rev. Proc. 2011-14 according to revised procedures issued by the IRS.
The IRS asked for comments on what effect the new proposed financial accounting revenue recognition standards should have on taxpayers’ methods of accounting
IRS Modifies Rules for Filing Accounting Method Changes and Procedures for Taxpayers Under Examination
This item highlights the significant developments in rules for filing accounting method changes and procedures for taxpayers under examination.
Small business taxpayers will be allowed to make certain accounting method changes under the repair regulations without filing Form 3115 in their first tax year beginning on or after Jan. 1, 2014, the effective date of the regulations.