Tax Reform’s Effect on Revenue Reporting Still Not Fully Understood

U.S. companies will have to pay attention to a narrow section of the law that could have a big effect on certain industries — a provision that ties revenue reporting to income tax reporting. The change to the tax code requires businesses to recognize revenue for tax purposes no later than when it is recognized for financial reporting purposes. … Read More

CA 8 vacates; Tax Court didn’t obtain sufficient facts in transfer pricing case

The Court of Appeals for the Eighth Circuit vacated a Tax Court decision that used the comparable uncontrolled transactions method for determining transfer pricing between Medtronic and its Puerto Rican subsidiary. The Eighth Circuit found that the the Tax Court’s factual findings were insufficient and remanded the case with instructions to make more complete factual findings. … Read More

Lawmakers explain TCJA errors & request IRS guidance reflect Congressional intent pending corrections

Several Republican members of the Senate Finance Committee have written a letter to Treasury and IRS officials identifying three key provisions in the Tax Cuts and Jobs Act (TCJA; P.L. 115-97, 12/22/2017) where the statutory language doesn't reflect Congressional intent and asking IRS to reflect this intent in its guidance and enforcement of those provisions. … Read More

Debt Classification Guidance Moves Closer to Final Status

The FASB plans to settle some of the lingering issues on its upcoming guidance for classifying debt before publishing the guidance later this year. The accounting board is working on an amendment to U.S. GAAP that is expected to require businesses to more clearly distinguish between debts they must pay right away versus those for which they have more time to settle. … Read More

Average bronze coverage premium for shared responsibility payment increases for 2018

In a Revenue Procedure, IRS has provided the 2018 monthly national average premium for qualified health plans that have a bronze level of coverage. This figure is used in determining the maximum individual shared responsibility payment under Code Sec. 5000A(c)(1)(B) for 2018—the last year it's in effect. … Read More