New IRS Final Section 451(b) and 451(c) Regulations: Rules for Income Recognition and Advance Payments
All-Events Test for Gross Income, Cost Offset, Multi-Year Contract Issues, Contracts With Multiple Performance Obligations, and More
Recording of a 90-minute premium CLE/CPE video webinar with Q&A
This CLE/CPE course will provide tax professionals and advisers a detailed analysis of IRS final regulations and new rules under Sections 451(b) and 451(c) for the timing of income recognition and advance payments. The panel will discuss the challenges and opportunities for taxpayers under the final regulations, the all-events test for recognizing gross income, using a deferral method of accounting for advance payments, cost offset methods, and issues stemming from multi-year contracts and contracts with multiple performance obligations.
Outline
- Overview of income recognition rules
- Impact of final regulations
- Timing and income recognition under 451(b)
- Advance payments under 451(c)
- Changes in accounting method
- Best practices
Benefits
The panel will review these and other critical issues:
- What are the key provisions of the final Section 451 regulations?
- What is an applicable financial statement?
- What businesses are impacted by 451(b)?
- What are the challenges under 451(c)?
- What issues arise from multi-year contracts and contracts with multiple performance obligations?
- What is a special method of accounting?
- Which companies qualify for the streamlined method change?
- How do accrual-basis businesses avoid income inclusion under 451(b)?
Faculty
Ellen McElroy
Partner
Eversheds Sutherland (US)
Ms. McElroy works on a broad variety of taxpayer issues involving both accounting methods and inventories. She has... | Read More
Ms. McElroy works on a broad variety of taxpayer issues involving both accounting methods and inventories. She has worked on accounting methods for large corporate clients, and with the IRS Office of Special Counsel (Legislation). She chairs the ABA Tax Accounting Committee and previously chaired its Capitalization Subcommittee.
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Michael D. Resnick
Attorney
Eversheds Sutherland (US)
Mr. Resnick focuses his practice on federal taxation matters, including tax accounting methods and compliance,... | Read More
Mr. Resnick focuses his practice on federal taxation matters, including tax accounting methods and compliance, planning, and controversy issues. He regularly counsels clients on the proper tax treatment of costs associated with tangible property, intangible property and corporate transaction costs. He also counsels on tax restructurings and the regulation and taxation of tax-exempt organizations.
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