Tax Accounting
A company’s mere promise to pay was not sufficient to consider the liability fixed since all of the events to establish the fact of the liability did not occur during the year the offer was made.
Before a liability is considered as incurred, the ‘last event’ necessary to establish the existence of the taxpayer’s liability must have happened, and the liability cannot be contingent.
The Inflation Reduction Act passed by the Senate on Sunday includes many tax items, some designed to raise revenue and others to promote various clean energy initiatives.
The process of accounting for stock options, a mainstay in the equity compensation portfolio, is unique within the category of book-tax differences.
This item discusses how depreciation recapture applies in certain situations involving partnerships.
The bill’s semiconductor production incentives would include a new 25% investment credit.
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.
This item discusses issues Treasury will have to grapple with when it provides cost basis reporting guidance.
Regulations provide regulatory authority for Treasury’s long-held position that an individual taxpayer who elects on a timely filed return to claim the foreign tax credit on the cash basis may not change to the accrual basis on an amended return.
This article discusses a strategy to allow more interest to be deducted under the limitation involving the strategic adoption of FASB Accounting Standards Codification Topic 606, Revenue From Contracts With Customers.
The IRS and Treasury released two revenue procedures on accounting method change procedures.
The IRS is sending letters to taxpayers who may need to take additional actions related to qualified opportunity funds.
The Internal Revenue Service issued its annual inflation-adjusted update of depreciation limitations for passenger automobiles, including passenger vans and trucks, placed in service in 2022.
This item outlines the general provisions of Sec. 263A, including special rules and exceptions for resellers, and provides insight into a reseller’s uniform capitalization calculation that may be areas of focus during an IRS examination.
During 2021, the IRS issued taxpayer-favorable procedures allowing certain taxpayers that have made the real property trade or business election under Sec. 163(j)(7)(B) with residential rental property to depreciate such property using the shorter 30-yearrecovery period, using ADS, and certain other taxpayers with qualified residential
living facilities to be eligible for the real property trade or business election.
Beginning a detailed analysis early will allow taxpayers the time and flexibility to make those choices and to perform complex computations or make required tax filings.
A revenue procedure catalogues changes subject to general procedures of Rev. Proc. 2015-13.
New procedures follow final regulations to implement simplifications by the law known as the Tax Cuts and Jobs Act.
The IRS advised that a net negative Sec. 481(a) adjustment resulting from a change in method of accounting for depreciation must be included in calculating adjusted taxable income.
The IRS updated the list of accounting method changes to which automatic change procedures apply.
