Tax Methods & Periods

    Tax Methods & Periods 

    This section covers issues concerning tax accounting methods and periods. It contains articles, tools, practice aids, as well as, comment letters pertaining to legislative matters, 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 vs 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); and tax consequences associated with international financial reporting standards (IFRS).

    News and Developments

    Below are recent developments in this area:

    • IRS issues proposed regulations (REG-110732-13) under section 168 regarding dispositions of tangible depreciable properties, September 13, 2013
    • IRS finalizes the tangible property regulations (T.D. 9636), September 13, 2013
    • IRS issues proposed regulations (REG-124148-05) under section 174 (R&D Expenditures), September 5, 2013 
    • IRS finalizes regulations (T.D. 9630) for cost-sharing arrangements, August 26, 2013
    • IRS clarifies rules of advance payments received from the sale of gift cards (Rev. Proc. 2013-29), July 24, 2013
    • IRS Issues Directive on Treatment of Eligible Milestone Payments, (LB&I-04-0413-002), April 29, 2013
    • IRS Clarifies Eligibility of HVAC Units as Qualifying Leasehold Improvement Property (CCA 201310028), March 8, 2013
    • New Automatic Consent to Change Method of Accounting for Plant Production Including Blackberry, Papaya, and Rasberry(Rev. Proc. 2013-20), February 15, 2013

    Key Resources

    Below are recent developments and important resources in the Tangible Property area for practitioners:

    Tools

    2013 Practice Guides
    • Uniform capitalization (UNICAP)
    • Long term contracts
    • Installment sales
    • Oil and Gas Practice Guide
    Articles
    See a comprehensive list of tools developed for the tax methods and periods area.

    Upcoming and Recent Webcasts
    To see a full list of past and present tax webcasts, visit Webcast Archives page.


      Advocacy

      This section contains comments and recommendations submitted by the AICPA on legislative, regulatory and administrative matters concerning tax accounting methods and periods, visit the Tax Methods and Periods Advocacy page.

       

       

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