Bus. 223F - Tax Accounting Methods & Periods

Professor Annette Nellen

Late Spring 2009

Weekly Reading Assignments

The materials should be read before class. For example, read what is listed for April 22 before the April 22 class.

Be sure to also see,:

1) Course Syllabus for additional required work for this class,

2) The set of Research Questions.

3) Blackboard Instructions and login

Date Reading In Addition to the IRC and Regulations
FORMS YOU WILL NEED FOR THIS CLASS:
At the IRS Web Site - click here, you can download and print the forms you'll need for this class:

     Form 6252 (week #2)  (skim on line)
     Form 3115 (week #4) (print)
     Form 970 (week #5)  (skim on line)
     Form 8697 (week #6)  (skim on line)
     Form 1128 (week #8) (print)

Additional links you may need for this class:

4/22 1. Introduction to Tax Accounting Methods 
4/29 2. Timing of Income    
  • Podcast (Blackboard; 20 minutes)
  • Chapter 2 reading materials
  • IRS LMSB Industry Directive on Gift Cards (skim)
  • Form 6252 (see top of page for link to IRS forms page) (skim online - no need to print)
  • Supreme Court Cases to obtain from FindLaw (click at the left, or obtain from RIA Checkpoint) (your choice as to whether you read these online and take notes or you print the cases)
    • Indianapolis Power & Light, 493 U.S. 203  (read)
    • Schlude, 372 U.S. 128 (skim)

5/9 & 5/13

 3. Timing of Expenses   
  • Podcast (Blackboard; 20 minutes)
  • Article - Economic Performance - It's Only Part of the Picture (to be handed out in class)
  • Chapter 3 reading materials
  • IRS Advice Memorandum 2007-009 explaining that both 3 1/2 month rule and recurring item exception (RIE) under the economic performance rules are "all or nothing" and generally no proration is allowed when a prepayment exceeds that period. Do you agree with this interpretation regarding the RIE? (skim)
  • FTB Notice 92-6 on R&D Accounting
 

5/20

 4. What is a Method of Accounting & How To Change a Method    

NOTE: In downloading Revenue Procedures, just print the pages from the IRB that contain the relevant document, don't print the entire IRB.  Or you may just want to download it to your computer rather than print them.

  • Chapter 4 Reading Materials
  • Reference materials (print these and skim them):
    • Rev. Proc. 97-27, 1997-21 IRB 10 (non-automatic change procedures) - skim. 
    • Rev. Proc. 2008-52, 2008-36 IRB 547 [DO NOT PRINT; skim first few pages. It will be easier to use this for your homework if you have the electronic version to search in]
    • Rev. Proc. 2002-19, 2002-13 IRB 696, modifies Rev. Procs. 97-27 and 2002-9 - skim.
    • Rev. Proc. 2002-54 - clarifications to RP 2002-19 (reference)
    • Rev. Proc. 2007-16, 2007-4 I.R.B. 358 - depreciation changes (skim)
    • Involuntary Changes in Method:
    • Form 3115 (see top of page for link to IRS forms page)

5/27

 5. Inventory Accounting Methods and Definitions     

5/30

 6. Special Rules - §263A and §460    
  • Chapter 6 Reading Materials
  • Notice 2009-25, 2009-15 IRB 758 (skim; think about why the IRS is seeking comments - what has changed in recent years?)
  • Form 8697 (see top of page for link to IRS forms page) (skim)

6/3

 7. Accounting Periods

6/10

 8. Miscellaneous Special Rules and Future Developments  
  6/17

 

Final Exam! 

[Questions You Should Be Able to Answer by the End of the Course  +  Podcast with answers on Blackboard (50 minutes)]

 

  

Professor Annette Nellen                                                                                                                                 June 10, 2009