Treasury and IRS Release Final Regulations under Section 451

On December 22, the Department of the Treasury and the Internal Revenue Service released final regulations under section 451(b) and (c). Section 451(b) generally provides that a taxpayer must recognize income no later than when the taxpayer takes the income into account on its applicable financial statement, and section 451(c) provides rules regarding the timing of the recognition of advance payments. The regulations generally finalize regulations proposed in September 2019 with certain changes, such as adding additional special methods of accounting under Treas. Reg. §1.451-3(c)(5).

Read More: Final Regulations

Read More: Proposed Regulations under Section 451(b)

Read More: Proposed Regulations under Section 451(c)

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