Accounting Methods and Periods
Is your company taking advantage of the most tax-efficient accounting methods available?
Implementing optimized accounting methods helps to maximize cash flow, manage effective tax rates and mitigate IRS examinations. Are you following the current guidance regarding income deferral or deduction acceleration? The IRS continues to expand the availability of automatic consent procedures, which eases the process of changing current accounting methods.
If your business cannot address these issues efficiently and effectively, or if you do not have the internal resources to handle this task, RSM can assist. We offer:
- Comprehensive reviews. Detailed analysis of your books, records and tax returns, as well as interviews with tax department personnel, can reveal current accounting practices and allow us to offer valuable insights into your organization. This can lead to more tax-efficient methods for improving cash flow, managing effective tax rates, mitigating past noncompliance or even managing expiring net operating losses. Learn more about our accounting methods review.
- Strategic analysis and discussion. Our team can recommend changes to your existing accounting methods and analyze the potential benefits to your organization. We can work with your team and company leadership to adopt the desired changes.
- Compliance. Method changes are both strategic and tactical. Our accounting methods specialists can prepare the required forms, implement the new methods, file documents and follow up as necessary.
An S-corporation opting to change to a C-corporation, may need to change certain accounting methods, requiring a section 481(a) adjustment.
When developing plans to expand or improve facilities, manufacturers should take an approach that includes analysis of tax opportunities.
Accounting methods and other notable items in the second quarter update to the IRS and Treasury’s 2017-2018 Priority Guidance Plan.
Revenue procedure 2018-14 allows payments made after Jan. 1, 2018 to be included on their 2017 tax return (including amended returns).
Repair expenses for commercial rental property held to be depreciable capital expenditures due to lack of evidentiary support.