New IRS and Court rulings provide guidance on tax accounting method issues

May 2014


In this month’s issue, you will receive insight on recent favorable REIT rulings, as well as related IRS proposed regulations on the definition of real property for REITs. In addition, we have included discussions on: the IRS’ automatic consent procedures to comply with new UNICAP regulations addressing sales-based royalties and sales-based vendor chargebacks; a recent ruling on reverse like-kind exchange transaction; and, a ruling granting a taxpayer permission to use an alternative method of basis recovery to report payments from a contingent payment installment sale. This month’s issue also discusses the Tenth Circuit’s affirmation of a district court decision denying the ordinary business deduction for litigation expenses incurred as part of a reorganization, and a Supreme Court decision to deny certiorari in a case that could have clarified when a deductible liability accrues with respect to policyholder dividends.

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Christine Turgeon
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