Tax Reform Updates To The Cash Method Of Accounting Agenda

Agenda

• Changes in the Thresholds to $25,000,000 (IRC §448(c))


• Calculating the Threshold – Gross Receipts Test


• Threshold Indexed


• Who Can Switch – Limitations


• When to Consider Switching


• Procedure Switching to Accrual to Cash If Threshold Met


• Filling Form 3115


• Dealing With Adjustments From the Change


• Conformity With GAAP and Financial Statement

• UNICAP (§§263A)


• IRC §471


• IRC §471 Conformity With Financial Statements

• If Switching From Percentage of Completion to Completed Contract What Issues Arise


• Applied on a Cut off Basis


• 481(a) Adjustments

• Bonus Depreciation


• Automobiles -280F and 168(k) Rev Procedure 2019-13 Safe Harbor


• Dealing With State Tax Refunds – Rev. Rul. 2019-11


• Section 199A and Depreciation Issues in Arriving at QBAI