0
Crown Colony Office Park
300 Congress Street, Unit 406
Quincy, MA 02169
Phone: (617) 439-0600
Fax: (617) 439-7080


Advance Payment Proposed Regulations Released
October 14, 2019
Similar to Rev. Proc. 2004-34
The proposed regulations include many provisions similar to those of Rev. Proc. 2004-34, I.R.B. 2004-22, 991. For example the proposed regulations:

  • provide a similar deferral method for non-AFS taxpayers;
  • provide a list of items excluded from the definition of advance payment;
  • provide rules consistent with Rev. Proc. 2004-34 to ensure the acceleration of an advance payment when a taxpayer dies or ceases to exist, or when a taxpayer's obligation is satisfied or otherwise ends; and
  • use the short tax year rules of Rev. Proc. 2004-34 for the AFS and non-AFS deferral methods
    The proposed regulations also provide additional definitions and clarifications.
Change in Accounting Method
The IRS intends to provide the procedures by which a taxpayer may change its method of accounting to use one of the deferral methods described in these proposed regulations. Until further guidance is issued, a taxpayer may continue to rely on Rev. Proc. 2004-34, as described in Notice 2018-35, I.R.B. 2018-18, 520.

Effective Date
The proposed regulations are to apply to tax years beginning on or after the date the final regulations are published in the Federal Register. Until the date the Treasury Decision adopting these regulations as final regulations is published in the Federal Register, a taxpayer may rely on these proposed regulations for tax years beginning after December 31, 2017, as long as the taxpayer: (1) applies all the applicable rules contained in these proposed regulations, and (2) consistently applies these proposed regulations to all advance payments.


Back to News Article List...
Copyright © Wald & Company, P.C. All rights reserved. John S. Crosby, CPA | John P. Fahey, CPA | John S. Crosby, Jr., CPA
Boston Tax Services | MA Accounting Services | Boston CPA Firm | MA Tax Planning | Accounting Firms in Boston
Boston Web Design by DreamingCode