IRS Form 1099, 1099-NEC, and Form 1099-MISC: Advanced Issues and Updates

IRS Regulations Under Section 451(b) and (c) (OnDemand Webinar)

$199.00

SKU: 409444EAU

Description

Learn to identify options and methods to limit or defer the recognition of income via certain provisions contained within Section 451 regulations.Income and its recognition is the starting point for all forprofit entities as they determine their ultimate tax liability for a given tax year. The IRS regulations under Section 451(b) and (c), applicable for 2021 and future tax years, provide taxpayers with guidance related to the timing of income inclusion generally as well as the treatment of advance payments for goods, services, and certain other items. The final Section 451 regulations include new concepts and optional methods with respect to income recognition, which requires taxpayers to have a detailed understanding of their specific facts to determine how such rules apply to them. In addition, the final Section 451 regulations include certain provisions that may provide opportunities to limit the amount of income recognized in a given tax year, which taxpayers should consider as part of their overall implementation of the final regulations.This course will provide an overview of and guidance on the final Section 451 regulations. The material will explore opportunities to limit income acceleration and discuss in detail the procedural guidance in place to implement the final Section 451 regulations.

Date: 2022-07-26 Start Time: End Time:

Learning Objectives

Background • How Income Recognition Has Changed in the Past 5 Years
• Section 451 (Pre-TCJA)
• Section 451 (as Modified by the TCJA)
• Release of Treas. Reg. §1.451-3 and -8
• Release of Rev. Proc. 2021-34 (Incorporated Into Rev. Proc. 2022-14)

General Income Recognition • Treas. Reg. §1.451-3
• Special Methods of Accounting
• Income Inclusion • Historic All Events Test vs. Book Recognition (General Rule)
• Optional Methods That Defer Recognition of Income:
• Enforceable Right
• AFS Cost Offset Method
• Tax vs. Book Treatment of a Transaction

Advance Payments • Treas. Reg. §1.451-8
• Full Inclusion Method
• Deferral Method
• Optional Methods That Defer Recognition of Income (Beyond Use of the Deferral Method):
• Advance Payment Cost Offset Method
• Specified Goods Exception

Implementing the Section 451 Final Regulations • Rev. Proc. 2021-34 (as Incorporated Into Rev. Proc. 2022-14)
• Accounting Methods Refresh • Adopting and Changing an Accounting Method
• Method Changes Available to Implement the Section 451 Final Regulations
• Optional Streamlined Method for Implementing the Section 451 Final Regulations

AIPB ,Enrolled Agents ,CPE ,Additional credit may be available upon request. Contact Lorman at 866-352-9540 for further information.

Alison Jones-Ernst & Young LLP, Sam Weiler – Ernst & Young LLP