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Funeral, Aero Industries Win in Final Revenue Accounting Rules

Dec. 23, 2020, 1:56 AM

The funeral and aerospace industries are among those benefiting from IRS regulations clarifying how businesses recognize revenue for tax purposes no later than they recognize it in their financial statements.

In rules published Monday under tax code sections 451(b)—stemming from the 2017 tax law overhaul—the IRS gave a break to companies worried that the tax law change would trigger an obligation to pay taxes earlier than they do now. If a business doesn’t have an enforceable right to sue a customer for the sales price if they cancel a contract, then it’s not considered a present sale. This means ...

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