This CPE course will provide you with an overview of the various factors considered for the determination of the proper accounting method (such as cash, accrual) and provides detailed examples of court rulings and client examples (for specific industries) involving each. Then, the course discusses accounting periods, and considerations for changes in the accounting period of an entity. Lastly, there is a case study and example tax forms to highlight how to identify which IRS Revenue Procedures are applicable to a given client situation, as well as how and when to prepare the Form 3115.
Learning Objectives
Recognize when the use of the cash method is appropriate.
Understand and apply the basic rules for a change in accounting method.
Choose a proper accounting period under the federal tax rules.
Identify which IRS Revenue Procedure(s) provides the guidance for a given scenario for a taxpayer to change their accounting method with the IRS.
Prepare the Federal Form 3115 – Application for Change in Accounting Method and understand how and when this form should be filed by the taxpayer.
Key Topics
What constitutes a method
Cash versus accrual
Automatic changes
Changes needing permission
When and how to change a method
How to account for the change in method
Who will it benefit?
Tax Staff Essentials, Level 2 is designed for junior tax staff who want to take on a wider variety of firm engagements and establish a supervisory role within the firm. Those with 2 to 4 years of tax experience.
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