Bus. 223F - Tax Accounting Methods & Periods

     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:

• IRS Publication 538 on Accounting Periods and Methods [this is a good pub; read it before you read the following primary authority]
• Internal Revenue Bulletins

• Questions You Should Be Able to Answer by the End of the Course
• Chapter 1 reading materials
• Academic Integrity  and  Reminders

• Podcast intro to §451(20 minutes)
• Chapter 2 reading materials
• Podcast with answers to questions in the reading materials
• Quiz on Desire2Learn to be completed by the date indicated on Desire2Learn
• IRS LMSB Industry Directive on Gift Cards (skim)
  • #1 (2007)
  • #2 (2008)
  • Information Document Request info
  • In 2011, the IRS issued new guidance (revenue procedures) on some gift card transactions.
• 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 or CCH) (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)

online

• Podcast intro to §461(20 minutes)
• Article - Economic Performance - It's Only Part of the Picture (to be handed out in class)
• Chapter 3 reading materials
• Video (57 minutes) with answers to questions in the reading materials + Powerpoint file
• Quiz on Desire2learn to be completed by midnight on May 15
• 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)
• Workers' Comp article from March 2010 The Tax Adviser - this article is posted on Desire2Learn
• FTB Notice 92-6 on R&D Accounting

Answers to Chapter 3 problems at end  (that we also discussed in class)

In-class discussion and problem-solving on timing of income and expenses.

A & B: May 19

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 - note that Rev Proc 2008-52 has mostly been replaced with Rev. Proc. 2011-14
• Reference materials (skim them with focus on the purpose; no need to print because they are easier to use online):
  • Rev. Proc. 97-27, 1997-21 IRB 10 (non-automatic change procedures) - skim. 
    • Some modification by Rev. Proc. 2011-14 (below)
  • Rev. Proc. 2011-14, 2011-4 IRB 330 (automatic change procedures) - skim
    • Rev. Proc. 2008-52, 2008-36 IRB 547 [Section 13 was not superceded by RP 2011-14]
    • Rev. Proc. 2009-39, 2009-38 IRB 371, which modifies Rev. Procs. 97-27 and 2008-52
    • 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)
    • Be sure to also see what RP 2011-14 provides wrt depreciation changes
  • Involuntary Changes in Method:
    • Announcement 2002-37, 2002-13 IRB 703, which explains the new guidance issued in March 2002 (RP 2002-18 and RP 2002-19)
    • Rev. Proc. 2002-18, 2002-13 IRB 678 - skim
  • Form 3115 (see top of page for link to IRS forms page)

  ---

online

+

A: May 26
B: June 2

• Slides and Questions   [print the slides so you can follow the video that is on Desire2Learn]
  • Notes to accompany slides
  • Video for slides 1 - 8 (19 minutes)
  • Video for slides 9 - 41 (68 minutes)
  • Video for slides 42 - 65 (47 minutes)
  • 2 quizzes on Desire2Learn to be completed by date indicated on Desire2Laern
  • Rev Proc. 2001-10 and Rev. Proc. 2002-28
  • CO PLR-10-004 - Example of state tax relevance of supplies v inventory
• LIFO Overview (fyi only - won't be covered in class or tested)
  • Form 970 (see top of page for link to IRS forms page)
• Supreme Court Cases to obtain from FindLaw (click at the left)
  • Thor Power Tool, 439 U.S. 522 (1979)  - just skim the inventory issue (skip bad debt issue)

• Chapter 6 Reading Materials
• Video - Introduction to 263A
• 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)

online

• Slides to accompany video
  • Video  (42 minutes)
  • Quiz on Desire2Learn to finish by date indicated on Desire2Learn
• Chapter 7 Reading Materials
• Pub 538 - pages 2 - 8
• Form 1128 (see top of page for link to IRS forms page)
• Rev. Proc. 2006-45 (pg 851 of IRB) - skim well
  • Rev. Proc. 2007-64, 2007-42 IRB 818 - modifies RP 2006-45 - reference only
• Rev. Proc. 2006-46 - (skim) (pg 859 of IRB)
• Rev. Proc. 2002-39 - (skim)
• Rev. Proc. 2003-34  - modifies Rev. Proc. 2002-39 - reference only
• Notice 2002-72 - modifies Rev. Proc. 2002-39 - reference only
• Rev. Proc. 2003-62 - revenue procedure on how individuals can change their accounting - reference only

Saturday June 4

A: 9 am - 1 pm
B: 1 pm - 5 pm

• Chapter 8 Reading Materials
• IRS-Treasury Priorities for Guidance 
  • 10/11 Plan (12/10) - see pages 20-21
• 11/07 proposed changes to Reg 1.381(c)(4)-1 and 1.381(c)(5)-1 (skim)
• FTB Notice 2000-8 - Request for Changes in Accounting Periods or Methods
• FTB - How Does My Corporation Change it Accounting Period
• IFRS and Your Tax Practice, by Stromson, The Tax Adviser, May 2009 - posted on Desire2Learn

Final Exam

Review - Questions You Should Be Able to Answer by the End of the Course  +  Podcast with answers (50 minutes)

Podcast on inventory (30 minutes)