Tax News Update    Email this document    Print this document  

December 23, 2020
2020-2931

IRS finalizes regulations updating simplified tax accounting rules for small businesses to reflect TCJA changes

The IRS has issued final regulations (TD 9942) to implement changes made under the TCJA to IRC Sections 263A, 448, 460, and 471 to simplify the application of tax accounting provisions for certain businesses with average gross receipts that do not exceed $25 million. Further, the final regulations provide special accounting rules for long-term contracts under IRC Section 460 applicable to corporate taxpayers. Proposed regulations were published in August 2020 (see Tax Alert 2020-2114). A Tax Alert is forthcoming.

 

The information contained herein is general in nature and is not intended, and should not be construed, as legal, accounting or tax advice or opinion provided by Ernst & Young LLP to the reader. The reader also is cautioned that this material may not be applicable to, or suitable for, the reader's specific circumstances or needs, and may require consideration of non-tax and other tax factors if any action is to be contemplated. The reader should contact his or her Ernst & Young LLP or other tax professional prior to taking any action based upon this information. Ernst & Young LLP assumes no obligation to inform the reader of any changes in tax laws or other factors that could affect the information contained herein.

 

Copyright © 1996 – 2024, Ernst & Young LLP

 

All rights reserved. No part of this document may be reproduced, retransmitted or otherwise redistributed in any form or by any means, electronic or mechanical, including by photocopying, facsimile transmission, recording, rekeying, or using any information storage and retrieval system, without written permission from Ernst & Young LLP.

 

EY US Tax News Update Master Agreement | EY Privacy Statement