Becoming a Tax Ninja: Tax Accounting Methods Part 1

Author: Greg White

Per the IRS Education Provider Standards this course must be COMPLETED by 12/31/2026 to receive credits. NOTE: Go to My Professional Profile in your CCH CPELink account settings to ensure your name, and PTIN number; matches your PTIN card

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: October 2023

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
• Recognize how to compute the "four-year" spread for "positive" accounting method adjustments
• Identify "automatic" accounting method changes
• Recognize how to compute section 481(a) adjustments
• Identify how this can result in large current write-offs

Level
Basic

Instructional Method
Self-Study

NASBA Field of Study
Taxes (2 hours)

Program Prerequisites
None

Advance Preparation
None