Jessica L. Jeane, J.D., Director of Public Policy & Strategic Communications
December 22, 2020
The IRS has issued final regulations, ( T.D. 9941 ) on certain accounting changes to sections 451(b) and (c) made under the Tax Cuts and Jobs Act (TCJA) (P.L. 115-97). The final rules provide guidance on the timing of income inclusion under an accrual method of accounting, including the treatment of advance payments for goods, services, and certain other items.
The final regulations follow last year’s proposed rules, ( REG-104870-18 ,) on revised section 451(b), and ( REG-104554-18 ,) on added section 451(c), which codifies Rev. Proc. 2004-34.