Sec. 451 regulations offer ways to reduce revenue acceleration
This item summarizes the TCJA’s changes to Sec. 451 and discusses the opportunities the December 2020 final regulations may provide to reduce income acceleration.
Period Selection
Choosing a tax year for a personal service corporation
A personal service corporation must generally use a calendar year, but it can choose a fiscal year in certain circumstances.
Opportunities and pitfalls with automatic method changes for revenue recognition
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.
Future mineral production advance payments may be sooner than you think
The TCJA revised Sec. 451(c), changing the timing of taxation for certain advance payments, including advance payments for future mineral production and delivery.
How the death of a partner could affect a partnership’s year end
Partnerships must reevaluate their current fiscal year when a partner dies, since the estate may have a different year end than the individual partner.
Accounting period planning may provide preferred year
This item highlights the accounting period rules and the guidance for changing an accounting period for the most common types of entities.
Common Income Tax Accounting Pitfalls
This article highlights a few ASC Topic 740, Income Taxes, tax matters companies have missed or overlooked in tax provisions.
Changing an LLC’s Tax Year
An LLC's required year can change for several reasons. A change in the LLC's required year is treated as automatically approved by the IRS.
Bonus Deduction Timing: Finding the Correct Tax Year
This item focuses on an employer’s ability to deduct bonuses in the tax year they are earned rather than the tax year in which they are paid to the employee.
Determining the LLC’s Required Year
An LLC taxed as a C corporation can choose any year end as the tax year end; if an LLC is classified as a partnership for federal income tax purposes, however, its tax year is governed by Sec. 706(b).
One Reorganization, Two Tax Years, One Practical Solution
This item considers what is the proper time to report the transaction if a reorganization spans different tax years.
Deducting Deficiency Interest Expense in the Proper Tax Year
Deficiency interest is often overlooked after the audit cycle closes. Taxpayers can effectively plan the timing of deducting deficiency interest simply by being aware of when proposed audit adjustments are agreed upon.
S Corporation Tax Year Rules
The use of a fiscal year defers reporting of the S corporation’s passthrough income to the shareholders and facilitates year-end tax planning.
Benefiting from a Fiscal Tax Year
The use of a 52-53-week year can provide significant tax planning opportunities for a C corporation and its shareholders.
Accounting Period Changes Affecting CFCs and Corporations Exiting a Consolidated Group
The IRS has modified the scope provision for corporations that exit a consolidated group and request consent to change their annual accounting periods.
