Tax Accounting

The right accounting methods go a long way.

Steve Borman

Steve Borman

Partner, Tax, KPMG US

+1 212-954-6855

Knowledge pays

At no time is this adage truer than when it comes to selecting the right accounting method. After all, your tax accounting decisions directly impact your cash flow, your tax liability and your reporting obligations.

KPMG’s Tax Accounting Services (TAS) team can help you evaluate your overall tax position, identify tax deductions or income deferrals, and recommend the appropriate accounting methods for your organization.

Our services address the procedural and the technical aspects of:

  • Income recognition
  • Expense recognition
  • Cost recovery of capitalized items
  • Inventory accounting
  • Mergers & acquisitions
  • Earnings & profits

We also provide services related to permanent deductions, including:

  • Section 199 (Domestic Production Activities Deduction)
  • Meals & entertainment
  • Lobbying expenses
  • Medical device excise tax

 

Latest news and insights

TaxWatch webcast replay on final 263A regulations

Listen to our recent webcast on the final regulations under section 263A, which were released on November 19, 2018 by the IRS and Treasury.

 

Clarity Provided for Timing of Revenue Under the Accrual Method

 

Recently-issued proposed regulations under Code sections 451(b) and 451(c) and (2) Rev. Proc. 2019-37 provides procedural guidance for requesting a change in accounting method to comply with the proposed regulations. The proposed regulations are helpful for purposes of determining when an item of revenue that is accelerated in a taxpayer’s AFS requires a corresponding acceleration of recognition for income tax purposes. However, there are several unanswered questions (discussed in Section III, p. 62) that we hope Treasury will address in the final regulations.

 

 

 

Final 263A Regulations

The final section 263A regulations released on November 19, 2018 address the treatment of “negative adjustments” in computing the amount of additional 263A costs that are allocated to ending inventory for federal tax purposes.

Research credit and meal and entertainment services

Reimagining tax...combining KPMG's tax experience with IBM Watson's cognitive capabilities, discover corporate tax benefits and risk with greater confidence.

Meal and entertainment services in a post tax reform environment

With tax reform, Congress took a bite out of the meals and entertainment deduction. Now more than ever, companies should consider performing an in-depth analysis to comply with the law and capture potential benefits that may otherwise be left on the table.

 

 

Not All Lobbying Costs are Nondeductible
We’re well-versed in rules that address what costs are disallowed for federal, state and local lobbying costs.