Title: Income Recognition for Tax: A Summary of Changes from the Tax Cuts and Jobs Act of 2017
Author(s) : Jemiolo Shannon, Redpath Ian, Vogel Tom
The Tax Cuts and Jobs Act of 2017 added Sections 451(b) and (c) to the IRC in an effort to provide more conformity with financial accounting rules regarding income recognition. Final regulations for these sections were issued in December 2020. With the final regulations generally applicable to accrual-basis taxpayers for tax years beginning on or after January 1, 2021, practitioners will need to understand this historic shift in income recognition standards and hit the ground running this year.