Search Results for keywords:"tax reporting"

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Search Results: keywords:"tax reporting"

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  • 2020-28653 — Taxable Year of Income Inclusion Under an Accrual Method of Accounting and Advance Payments for Goods, Services, and Other Items
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    Type:Rule
    Citation:86 FR 810
    Reading Time:about 5 hours

    The Treasury Department and Internal Revenue Service have issued final regulations addressing how certain taxpayers should report income and advance payments under an accrual method of accounting. These regulations, influenced by the Tax Cuts and Jobs Act, require that income be reported no later than when it is recorded in a taxpayer’s financial statement. The regulations also allow some taxpayers to defer reporting income from advance payments to the next taxable year, provided it matches the company's financial statement treatment. These rules aim to ensure consistency between tax reporting and financial accounting.

    Simple Explanation

    The Treasury Department and IRS made new rules so that businesses who keep track of money they earn and spend can do it in a way that matches their financial reports, especially when they get money before doing the work. This helps everything line up nicely and makes it fair when they say how much they earned.

  • 2025-00312 — Multi-Year Reporting Requirements for Corporate Separations and Related Transactions
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    Type:Proposed Rule
    Citation:90 FR 4687
    Reading Time:about 23 minutes

    The Treasury Department and the Internal Revenue Service (IRS) have proposed new regulations that require corporations engaging in specific tax-free separations to report their transactions annually to ensure compliance with tax laws. These rules focus on Section 355 transactions, which involve the tax-free distribution of a corporation’s stock. The new regulations mandate detailed reporting to prevent tax evasion, and this must be done via a new form attached to the corporation's annual tax return over a multi-year period. The proposed changes are intended to help narrow the federal tax gap by improving the IRS's ability to track and address potential noncompliance.

    Simple Explanation

    Imagine the government has a new rule where companies have to tell them every year for many years about certain special ways they split up or share their parts, almost like telling a story to prove they're playing fair and not cheating.