Accounting method change procedures are revised
The IRS issued updated procedures for automatic accounting method changes. The new rules generally apply to changes on or after May 9, 2018.
Accounting methods
Can a trade or business include activities conducted in a different entity?
This discussion focuses on whether a taxpayer’s trade or business can include activities conducted through a different entity.
Accounting method planning for 2017 can result in permanent tax benefits
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 intersection of new Sec. 451 and revenue recognition
The amendments to Sec. 451 potentially affect a broader cross section of taxpayers than almost any other change made by the TCJA.
IRS updates automatic accounting method change procedures
The IRS issued updated procedures for automatic accounting method changes. The new rules generally apply to changes on or after May 9, 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.
Completed-contract method allowed for grading and soil compaction
A taxpayer’s long-term construction contracts requiring grading and soil compaction qualify for the completed-contract method of accounting.
Accounting method change procedures under the new revenue recognition standards
IRS proposed procedures that may be used to request consent to change a method of accounting for recognizing income related to the new standards.
Sec. 481 adjustment can make end run around the statute of limitation
This item explains how a change in accounting method can result in an extended statute of limitation.
Procedures for obtaining automatic accounting method changes are revised
The IRS provided updated rules for the various accounting method changes that qualify for automatic consent from the IRS.
Tax reform: Accounting method opportunities
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.
Guidance proposes accounting method changes for FASB revenue recognition
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 extends waiver to ease transition to file certain tangible property regs. method changes
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.
Automatic accounting method change procedures updated
The IRS provided updated rules for the various accounting method changes that qualify for automatic consent from the IRS.
Giant Eagle and economic performance under Sec. 461(h)
This item explores the approach taken by the Third Circuit in determining whether a retailer qualified for the recurring-item exception.
Interplay between Sec. 174 and Sec. 41 for software development activities
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.
Considering cash: Advantages and availability of the cash method of accounting
When not required to use the accrual method, taxpayers should consider the benefits provided under the cash method.
Rules proposed for accounting method changes to reflect FASB revenue recognition standards
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.
Change to Accrual Accounting Will Not Delay Taxes on Certain Deferred Compensation Beyond 2017
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.
Ninth Circuit Upholds Homebuilder’s Use of Completed-Contract Method
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.
