Becoming a Tax Ninja: Tax Accounting Methods Part 1 (Currently Unavailable)

Author: Greg White

This is a hands-on approach to unleashing large deductions for your clients, and helping your clients avoid significant tax risks before they mushroom into major tax issues. Buried deep in the Internal Revenue Code are the mysteries of accounting methods. These have traditionally been to exclusive province of only large accounting firms; you can bring this critical tax tool to your clients. We’ll cover the big issues, and how to make these changes with hands-on, real-life examples and filled-out Forms 3115.

Publication Date: September 2022

Topics Covered

• Accounting method rules and the statute of limitations
• Taxable years that must be used by entities like S corps, partnership, trusts and estate
• The "four-year" spread for "positive" accounting method adjustments
• Distinguishing between elections and accounting method changes

Learning Objectives

• Recognize whether the accounting method rules override the statute of limitations
• Compute the "four-year" spread for "positive" accounting method adjustments
• Identify "automatic" accounting method changes
• Compute section 481(a) adjustments
• This can result in large current write-offs
• Identify the adjustment made to account for the positive/negative impacts from an accounting method change
• Identify the form that should be filed to request permission to change from the accrual method to cash basis method
• Identify the approximate number of automatic changes available
• Identify an example of a nonautomatic change
• Identify the statute of limitations period relating to accounting method changes

Level
Basic

Instructional Method
Self-Study

NASBA Field of Study
Taxes (2 hours)

Program Prerequisites
None

Advance Preparation
None