BarbriSFCourseDetails
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Course Details

Course Information
  • smart_display Format

    On-Demand

  • signal_cellular_alt Difficulty Level

    Intermediate

  • work Practice Area

    Corporate Tax

Date & Time
  • event Date

    Tuesday, June 30, 2020

  • schedule Time

    1:00 p.m. ET./10:00 a.m. PT

  • timer Program Length

    110 minutes

Credit Information

  • BARBRI is a NASBA CPE sponsor and this 110-minute webinar is accredited for 2.0 CPE credits.

  • BARBRI is an IRS-approved continuing education provider offering certified courses for Enrolled Agents (EA) and Tax Return Preparers (RTRP).

$247.00
CPE
ALL

This course will assist tax practitioners in complying with Section 451(b) and its required inclusion of income, not later than for financial accounting purposes, in tax returns for businesses. Our panel will explain the proposed regulations, applicable financial statements, special accounting methods, recognizing revenue, changing accounting methods, and the relativity of implementing Topic 606 with this code section.

Faculty

David Strong
Partner
Crowe LLP

Mr. Strong is a leader in the delivery of tax accounting services related to inventory valuation, accounting method issues, tax controversy, and corporate planning and consultation. He has more than 20 years of experience and specializes in monitoring legislative and regulatory changes for communication to firm management. Mr. Strong has also worked extensively with both publicly traded and privately held companies providing tax compliance and consulting services.

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Ryan Corcoran
Senior Manager - Washington National Tax
RSM US, LLP

As part of RSM’s Washington National Tax practice, Mr. Corcoran specializes in federal accounting methods areas such as capitalization, depreciation, and income and expense recognition. He also assists offices in the firm with questions related to accounting periods and has experience with analyzing and reviewing existing accounting methods for compliance and optimization.

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Karen Messner
Tax Managing Director
BDO USA

Ms. Messner's work has focused on consulting on federal tax accounting issues including accounting methods, timing provisions governing income and expense recognition, accounting period issues, and IRS procedures on changes in accounting methods and periods. She has over 20 years of experience with Big Four firms.

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Description

Section 451(b) requires recognition of income, no later than when included in an AFS (applicable financial statement) for accrual-basis taxpayers. Additional proposed regulations issued September 2019 address what is considered a special accounting method. The regs also cover handling businesses with an AFS one year and no AFS the next, cost-of-goods sold offsets, differences between taxable year-end dates and financial reporting year-end dates. The regs also seek to clarify other matters to comply with the requirements of Section 451(b) added under the recent tax act.

Accelerating the struggle is Topic 606, Revenue from Contracts with Customers issued by the FASB, which generally requires recognition of income when transferring goods or services to the customer fulfills a performance obligation. This accounting announcement comes with required implementation dates for public companies (and certain others) with annual reporting periods beginning after Dec. 15, 2017, and an effective date for annual reporting periods beginning after Dec. 15, 2018, for all others.

Topic 606 implementation requires a change of accounting method for many businesses. Fortunately, Revenue Procedure 2018-60 provides for automatic changes, and a streamlined procedure is available that allows certain taxpayers to omit the filing of Form 3115. Understanding how to comply with these new income recognition requirements but delay income recognition when possible is critical for tax advisers to businesses.

Listen as our panel of experts explains key considerations under these new income recognition requirements, including which companies are subject to 451(b), how to defer revenue inclusion, and best practices for implementing these new standards.

Outline

  1. 451(b): an overview
  2. Topic 606, Revenue from Contracts with Customers
  3. Proposed Section 1.451-3 regulations
  4. Advance payments under 451(c)
  5. Changes in accounting method
  6. Best practices

Benefits

The panel will review these and other critical issues:

  • What is an applicable financial statement?
  • What businesses are impacted by 451(b)?
  • 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)?

NASBA Details

Learning Objectives

After completing this course, you will be able to:

  • Identify applicable financial statements
  • Ascertain what methods are special accounting methods
  • Decide when Form 3115, Application for Change of Accounting Method, should be filed
  • Determine the impact of new accounting pronouncements on income recognition

  • Field of Study: Taxes
  • Level of Knowledge: Intermediate
  • Advance Preparation: None
  • Teaching Method: Seminar/Lecture
  • Delivery Method: Group-Internet (via computer)
  • Attendance Monitoring Method: Attendance is monitored electronically via a participant's PIN and through a series of attendance verification prompts displayed throughout the program
  • Prerequisite: Three years+ business or public firm experience preparing complex tax forms and schedules, supervising other preparers or accountants. Specific knowledge and understanding of pass-through taxation, including taxation of partnerships, S corporations and sole proprietorships, qualified business income, net operating losses and loss limitations; familiarity with net operating loss carry-backs, carry-forwards and carried interests.

Strafford Publications, Inc. is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of Accountancy have final authority on the acceptance of individual courses for CPE Credits. Complaints regarding registered sponsons may be submitted to NASBA through its website: www.nasbaregistry.org.

IRS Approved Provider

Strafford is an IRS-approved continuing education provider offering certified courses for Enrolled Agents (EA) and Tax Return Preparers (RTRP).