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Tax Methods & Periods

Tax Methods & Periods 

This section covers issues concerning tax accounting methods and periods.  It contains articles, tools and practice aids, as well as comment letters pertaining to legislative matters and IRS regulation and administration.  Some of the topics in this section include:
  • overall methods of accounting (cash, accrual, hybrid)
  • timing of income
  • timing of deductions, including capitalization versus expensing
  • inventory methods (FIFO, LIFO, average cost, cost, cost or market, whichever is lower, sub-normal goods)
  • uniform capitalization of costs (Sec. 263A)
  • accounting periods, including voluntary changes in accounting periods
  • voluntary changes in accounting methods (automatic and prior approval)
  • domestic production activities deduction (Sec. 199)
  • tax consequences associated with international financial reporting standards (IFRS)

Practice Support 

 

 

 

 

 

 

Access to additional tools and aids.


Advocacy 

 

 

  • AICPA 04.17.2012 Comment Letter on proposed and temporary regulations under Sections 162(a), 168, and 263(a) regarding deduction and capitalization of expenditures related to tangible property (REG-168745-03 and TD 9564) and Revenue Procedures 2012-19 and 2012-20.

 

  • AICPA 08.01.2011 Comment Letter on Schedule M-3, providing additional comments and recommendations with the objective of reducing burden and duplication.

 

 

 

 


Access to additional advocacy documents.

Access information on the AICPA's Tax Methods and Periods Technical Resource Panel.

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Tax Methods & Periods

Overview :  Coverage of tax accounting issues, including accounting methods and periods, inventories, section 263A and section 199 (Domestic Manufacturing Deduction).
Published on May 14, 2012

Archive of April 23, 2012 AICPA Tangible Property Infocast

Webcast :  The materials and replay of this event are now available for free without CPE for Tax Section members.  The AICPA held an audio and slide infocast on Monday, April 23, 2012 from 2:00 to 3:30 p.m. Eastern on Do You Know What to Deduct and What to Capitalize?  Understanding the New
Published on May 14, 2012

April 23, 2012 Tangible Property Infocast Presentation and Supplemental Materials

Webcast :  The presentation and supplemental materials from the AICPA audio and slide infocast held on Monday, April 23, 2012 from 2:00 to 3:30 p.m. Eastern on Do You Know What to Deduct and What to Capitalize?  Understanding the New Temporary Regulations for Tangible Property.
Published on May 14, 2012

LB&I Directive 03.15.2012 regarding Capitalized Assets

Guidance :  IRS LB&I Directive of March 15, 2012 for taxpayers who adopted a method of accounting relating to the conversion of capitalized assets to repair expense under IRC section 263(a), providing direction to the field in examinations of the repair versus capitalization issue.  Issued following the temporary and proposed regulations under
Published on May 14, 2012

AICPA Testified 05.09.2012 regarding Deduction and Capitalization of Tangible Property Expenditures

Testimony :  AICPA testified before the IRS and Treasury at the May 9, 2012 public hearing on proposed and temporary regulations under IRC sections 162(a), 168, and 263(a) regarding the deduction and capitalization of expenditures related to tangible property, REG-168745-03 and TD 9564, and Revenue Procedures 2012-19 and 2012-20.
Published on May 11, 2012

04.23.2012 Infocast on Do You Know What to Deduct and What to Capitalize

Webcast :  The AICPA is holding an audio and slide infocast on Monday, April 23, 2012 from 2:00 to 3:30 p.m. Eastern on Do You Know What to Deduct and What to Capitalize?  Understanding the New Temporary Regulations for Tangible Property. Panelists include:  Jane Rohrs and Natalie Tucker
Published on April 27, 2012

04.23.2012 Infocast on Do You Know What to Deduct and What to Capitalize

Webcast :  The AICPA is holding an audio and slide infocast on Monday, April 23, 2012 from 2:00 to 3:30 p.m. Eastern on Do You Know What to Deduct and What to Capitalize?  Understanding the New Temporary Regulations for Tangible Property. Panelists include:  Jane Rohrs and Natalie Tucker
Published on April 27, 2012

AICPA Submits Comments regarding Deduction and Capitalization of Expenditures Related to Tangible Property

Comment Letter :  The AICPA submitted comments on 04.17.2012 on proposed and temporary regulations under Sections 162(a), 168, and 263(a) regarding deduction and capitalization of expenditures related to tangible property (REG-168745-03 and TD 9564) and Revenue Procedures 2012-19 and 2012-20.
Published on April 18, 2012

Transitional Guidance Released for Temporary Repair Regulations

Article :  On March 7, 2012, the IRS released Revenue Procedures 2012-19 and 2012-20, the transitional guidance necessary for taxpayers to effectuate the transition to the temporary regulations regarding tangible property.
Published on April 16, 2012

Temporary and Proposed Tangibles Regs. Impact Most Business Taxpayers

Article :  On December 23, 2011, the IRS released temporary and proposed regulations regarding the deductibility or capitalization of expenditures related to tangible property, impacting many taxpayers, under IRC sections 162(a), 168, and 263(a).
Published on April 16, 2012

IRS Examination Activity Suspended on Repair / Capitalization Issues

Article :  On March 15, 2012, the IRS LB&I Division released a directive to field examination regarding various capitalization and deduction issues for repairs, due to the release of temporary and proposed regulations at the end of 2011, and transition guidance in 2012.
Published on April 16, 2012

Form 3115 Instructions Revised for Capitalization Regulations

Article :  The IRS has revised instructions to Form 3115, Application for Change in Accounting Method, in March 2012, to incorporate the automatic tax accounting method changes authorized under the temporary regulations released in December 2011 regarding the treatment of repairs and maintenance, materials and supplies, and depreciation, disposition and related subjects.
Published on April 06, 2012

Form 3115, Application for Change in Accounting Method

Form :  IRS Form 3115, Application for Change in Accounting Method, revised December 2009.  Taxpayers use Form 3115 to request a change in either an overall tax method of accounting or the tax accounting treatment of any item.  The form is used for automatic tax accounting method change requests under Rev. Proc.
Published on April 06, 2012

Instructions to Form 3115, Application for Change in Accounting Method

Form :  Instructions to IRS Form 3115, Application for Change in Accounting Method, revised March 2012.  Taxpayers use Form 3115 to request a change in either an overall tax method of accounting or the tax accounting treatment of any item.  The form is used for automatic tax accounting method change requests under
Published on April 06, 2012

The Accrual Basis to Cash Basis Worksheet

Tools :  The Accrual Basis to Cash Basis Worksheet is a tool to assist you in computing the cash basis income in any given period. It can be used during the year to provide year-to-date cash basis income for planning opportunities.
Published on March 30, 2012

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