IRS issues procedures for complying with Section 451(b) revenue recognition

Tax Hot Topics newsletterThe IRS has released automatic procedures (Rev. Proc. 2018-60) for accrual-method taxpayers with applicable financial statements (AFS) to change methods of accounting to comply with Section 451(b), as revised by the Tax Cuts and Jobs Act (TCJA).

With the issuance of these procedures, most changes in revenue recognition due to new accounting standards and the TCJA are at least temporarily automatic. However, certain special accounting method changes remain non-automatic.

For more details, see our Tax Flash.

Sharon Kay
Partner, Accounting Methods
Washington National Tax Office
T +1 202 861 4140

John Suttora

Managing Director
Washington National Tax Office
T +1 202 521 1523

Caleb Cordonnier
Manager, Accounting Methods
Washington National Tax Office
T +1 202 521 1555

Debbie Shi
Manager, Accounting Methods
Washington National Tax Office
T +1 202 521 1501

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