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.
A personal service corporation must generally use a calendar year, but it can choose a fiscal year in certain circumstances.
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.
The TCJA revised Sec. 451(c), changing the timing of taxation for certain advance payments, including advance payments for future mineral production and delivery.
Partnerships must reevaluate their current fiscal year when a partner dies, since the estate may have a different year end than the individual partner.
This item highlights the accounting period rules and the guidance for changing an accounting period for the most common types of entities.
This article highlights a few ASC Topic 740, Income Taxes, tax matters companies have missed or overlooked in tax provisions.
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.
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.
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).
This item considers what is the proper time to report the transaction if a reorganization spans different tax years.
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.
The use of a fiscal year defers reporting of the S corporation’s passthrough income to the shareholders and facilitates year-end tax planning.
The use of a 52-53-week year can provide significant tax planning opportunities for a C corporation and its shareholders.
The IRS has modified the scope provision for corporations that exit a consolidated group and request consent to change their annual accounting periods.