Accounting methods
The IRS is proposing to remove regulations on advance payments and long-term contracts to reflect amendments to Sec. 451 included in the law known as the Tax Cuts and Jobs Act.
This discussion highlights some of the provisions
and potential implications of the new automatic method change procedures.
A corporate tax rate change provides an opportunity for taxpayers to make favorable accounting method changes for the 2017 tax year to create permanent
tax benefits.
The IRS issued updated procedures for automatic accounting method changes. The new rules generally apply to changes on or after May 9, 2018.
This discussion focuses on whether a taxpayer’s trade or business can include activities conducted
through a different entity.
The amendments to Sec. 451 potentially affect a broader cross section of taxpayers than almost any other change made by the TCJA.
The IRS issued updated procedures for automatic accounting method changes. The new rules generally apply to changes on or after May 9, 2018.
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.
A taxpayer’s long-term construction contracts requiring grading and soil compaction qualify for the completed-contract method of accounting.
IRS proposed procedures that may be used to request consent to change a method of accounting for recognizing income related to the new standards.
This item explains how a change in accounting method can result in an extended statute of limitation.
The IRS provided updated rules for the various accounting method changes that qualify for automatic consent from the IRS.
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.
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.
IRS extended specific eligibility rule waivers by a year for taxpayers filing an automatic consent change in accounting method to comply with the tangible property regulations.
The IRS provided updated rules for the various accounting method changes that qualify for automatic consent from the IRS.
When not required to use the accrual method, taxpayers should consider the benefits provided under the cash method.
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.
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.
