Gain an understanding of timing issues under federal income tax law by understanding how to maximize timing to benefit your clients; reviewing historical antecedents, including U.S. Supreme Court cases and federal tax rules regarding timing of income and expenditures; and learning how cash and accrual methods of accounting have grown toward mirroring each other for federal income tax purposes. You'll also study underutilized planning opportunities to defer income or facilitate tax reporting and benefit from the hands-on approach to Code and Regulation sections, revenue procedures and court cases.
Identify and apply statutory provisions of the Internal Revenue Code regarding timing of income and expenditures, and policies underlying those rules.
Determine fundamental principles regarding cash receipts and disbursements methods of accounting.
Recognize fundamental principles of the accrual method of accounting.
Determine how the cash and accrual methods of accounting for tax purposes have grown toward each other over time.
Recognize tax timing planning opportunities and restrictions.
Identify the rules governing the use of accounting periods and methods by various taxpayers.
Cash receipts and disbursements method of accounting, including history
Cash method limitations, including tax shelters per IRC Sec. 448(d)(3), 461(i)(3) and 1256(e)(3)
Cash method by small businesses, including Revenue Procedures 2001-10 and 2002-28
Accrual of income and expenses, including history
Economic Performance and Recurring Item Exception, IRC Sec. 461(h)
Deferral of Certain Advance Payments (Revenue Procedure 2004-34)
CPAs, attorneys and others engaged in income tax return preparation or consulting.
Familiarity with preparing federal income tax returns for individuals or businesses.
Advanced Prep: None
Speaker: DAVID J. CLARK, JD, CPA
Field of Study: Tax
CPE Credit: 8 Hours
Meet the Speaker:
DAVID J. CLARK, JD, CPA David Clark has extensive experience in all facets of tax law with particular emphasis in real estate, family-owned businesses, and complex estate and trust arrangements. His clients appreciate his depth of understanding of the Internal Revenue Code and his practical approach to structuring complex transactions. During Mr. Clark's nine years at Arthur Andersen & Co., his largest clients were closely held corporations involved in the real estate industry, their shareholders, related entities and family members. Since leaving Arthur Andersen & Co., he has been involved in a number of projects inside and outside the United States for both private and governmental employers. Mr. Clark is a Commissioner from California to the National Conference of Commissioners on Uniform State Laws (NCCUSL), also known as the Uniform Law Commission (ULC). He is active in the American Bar Association (ABA) Section of Taxation. He is currently a partner in the Novato CPA firm of Boerio, Clark & Associates CPAs, LLP.