Methods
These simplifying provisions, which apply to small business taxpayers, expand the use of the overall
cash method of accounting and grant
exemptions from inventory methods
under Sec. 471, UNICAP rules under Sec. 263A, and
the use of the percentage-of-completion method for certain long-term construction contracts under Sec. 460.
This item discusses highlights of the Sec. 451(b) regulations, which address the timing of income recognition for accrual-method taxpayers with an applicable financial statement.
This guide provides tax preparers an outline of questions to ask clients when evaluating HVAC repair costs.
Taxpayers should consider all available facts and circumstances when determining the suitability and
permissibility of a Sec. 460 long-term contract method.
This article discusses self-charged interest requirements.
The IRS issued final regulations on Sec. 451 income inclusion rules and advance payments, as those rules were amended by the TCJA.
The IRS finalized regulations for simplified accounting rules for small businesses.
The TCJA expanded the number of taxpayers
eligible to use the cash method under Sec. 448, expanded the exception from the uniform capitalization rules under Sec. 263A, and more.
The IRS issued final regulations on Sec. 451 income inclusion rules and advance payments, as those rules were amended by the law known as the Tax Cuts and Jobs Act.
The IRS finalized regulations for simplified accounting rules for small businesses, which are defined as businesses with inflation adjusted average annual gross receipts of $25 million ($26 million for 2020 and 2021).
The IRS issued regulations on the simplified accounting method rules for small business taxpayers enacted in 2017 by the law known as the Tax Cuts and Jobs Act.
New simplified accounting rules for small businesses do not apply to tax shelters — and the definition of a tax shelter can cause problems for businesses with large deductions or losses during a tax year.
The IRS issued regulations on the simplified accounting method rules for small business taxpayers enacted in 2017 by the law known as the Tax Cuts and Jobs Act.
The IRS announced that, beginning Friday, in response to the coronavirus pandemic, it is temporarily accepting duplicate copies of Form 3115, Application for Change in Accounting Method, sent by fax instead of mail.
Methods of accounting may be an effective tool in tax planning for GILTI; however, method change procedures for CFCs differ from procedures for domestic taxpayers.
This discussion focuses on how to make the switch from the SPM to the MSPM.
Topic 842 does not affect how leases are treated for federal income tax purposes. Thus, differences in the treatment of leases for financial accounting and
income tax accounting remain, and implementing
Topic 842 may highlight improper historical tax accounting methods.
Inflation adjustments for 2019 and 2020 may increase the number of taxpayers that qualify as a small business and the amount of costs that can be expensed under a Sec. 179 election.
For the 2019 tax year, taxpayers and their accountants should seriously consider revisiting
repairs and maintenance when planning strategies for increased deductions.
Taxpayers must carefully examine their revenue line items to ensure that financial accounting changes
or new tax laws have not exposed them to compliance risk.
