Tax Accounting Methods

Description

Quickly get up to speed on key tax accounting rules and concepts. Learn more about favorable methods for small businesses and how to select and adopt a method of accounting. Plus, review method vs. error, timing rules for income and expenses and inventory accounting. Examples and exercises are used throughout the course to illustrate relevant Internal Revenue Code, regulations, IRS rulings and court cases. In addition, review tax planning ideas and its relevance to the income tax provision for financial accounting.

Highlights

• What is a method of accounting, and why is the answer important?
• How to select and adopt a method of accounting
• When is income to be reported for both cash and accrual method businesses?
• When are expenses to be reported for both cash and accrual method businesses?
• How and when to account for inventory
• How and when to change a method of accounting
• Avoiding accounting method problems
• Identifying planning opportunities
• Relevance to income tax provision for financial reporting

Objectives

• Understand the importance of tax accounting methods in financial reporting, tax compliance and planning.
• Understand how to identify "small businesses" including application of the rules on tax shelters and aggregation of gross receipts, and the favorable methods available to small businesses. 
• Determine when both cash and accrual method taxpayers report income and claim deductions.
• Distinguish between method changes, changes in facts and errors; learn how to make a method change.
• Understand the special rules for inventory and method changes.
• Identify when interest capitalization and long-term contract accounting may apply.

Designed For

CPAs, attorneys and tax professionals.