Final regulations: Simplified accounting for small businesses, long-term contracts (text of regulations)

Simplified accounting for small businesses

The IRS today posted to its website a version of final regulations (T.D. 9942) as guidance implementing changes to sections 263A, 448, 460, and 471 as made by the 2017 tax law (Pub. L. No. 115-97) or the law that is often referred to as the “Tax Cuts and Jobs Act” (TCJA).

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The final regulations [PDF 370 KB] (101 pages) include guidance implementing these following changes made by the 2017 tax law:

  • Simplifying the application of tax accounting provisions for certain businesses having average annual gross receipts not exceeding $25 million (adjusted for inflation)
  • Certain special accounting rules for long-term contracts under section 460 for corporate taxpayers

The version of the final regulations posted by the IRS today includes the following statement:

This document has been submitted to the Office of the Federal Register (OFR) for publication and will be pending placement on public display at the OFR and publication in the Federal Register. The version of the final rule released today may vary slightly from the published document if minor editorial changes are made during the OFR review process. The document published in the Federal Register will be the official document.

Today’s release will finalized regulations that were proposed in August 2020. Read TaxNewsFlash

The purpose of this report is to provide text of the final regulations.

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