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IRS Revenue Recognition Rules Offer Clarity on Tax Timing (1)

Dec. 21, 2020, 11:05 PMUpdated: Dec. 22, 2020, 2:37 AM

The IRS gave businesses some welcome clarifications on a part of the 2017 tax overhaul law that many worried would mean they would have to pay taxes earlier than they used to.

The IRS on Monday, in rules issued under tax code sections 451(b) and 451(c), clarified how to apply a part of the law that marries revenue accounting for tax purposes with the revenue they report in their financial statements, like a 10K for a publicly traded company.

The final rules (RIN: 1545-BO68 and 1545-BO78) specify that the determination of whether a taxpayer has ...

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