Les Schneider Talks to Tax Notes About Final Small Business Tax Accounting Regulations

IPB partner Les Schneider spoke to Tax Notes about final regulations issued by the IRS this week for small business tax accounting for the article Taxpayers Get Mixed Bag on Small Business Inventory Accounting.

'“It’s sort of a mixed bag; they gave people some of the things they wanted, but not everything,” Leslie J. Schneider of Ivins, Phillips & Barker Chtd. told Tax Notes of the final small business tax accounting regulations.

The final regs (T.D. 9942), released December 23, implement changes to small taxpayer exceptions from the normal section 448 cash method of accounting restriction, the section 263A uniform capitalization rules, the section 471 inventory accounting rules, and the section 460(e) restrictions on the completed contract method of accounting made by the Tax Cuts and Jobs Act.

The TCJA made all four thresholds the same, raised the floor to $25 million of gross receipts, and indexed it prospectively. The threshold applies to the taxpayer’s average gross receipts over the prior three years.'