Taxpayers using PCM cautioned by IRS on delaying income recognition. (percentage of completion method): An article from: The Tax Adviser

This digital document is an article from The Tax Adviser, published by American Institute of CPA's on September 1, 1997. The length of the article is 951 words. The page length shown above is based on a typical 300-word page. The article is delivered in HTML format and is available in your Amazon.com Digital Locker immediately after purchase. You can view it with any web browser.

From the supplier: A 1997 IRS coordinated issue paper warned contractors, developers, and other taxpayers who might use the percentage of completion (PCM) accounting method to delay issue recognition. Contractors cannot delay subcontractor-related cost recognition so as to delay PCM income recognition, according to the IRS. In the issue paper, the IRS dismissed the taxpayer's characterization of the relationship between contractor and subcontractor, the taxpayer's accounting method changes, and other reasoning used to defend income deferral under PCM.

Citation Details
Title: Taxpayers using PCM cautioned by IRS on delaying income recognition. (percentage of completion method)
Author: Richard F. Bliha
Publication:The Tax Adviser (Magazine/Journal)
Date: September 1, 1997
Publisher: American Institute of CPA's
Volume: 28 Issue: n9 Page: 543(2)

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