Regs. define activities of personal service corp
Article Abstract:
The Tax Reform Act of 1986 requires personal service corporations to use the calendar year for the taxable year unless they can show a business reason for using a different period for their taxable year. But under the revisions of the Revenue Act of 1987, a personal service corporation may elect to retain a non-calendar tax year if the corporation's annual accounting period is a fiscal year and it obtains IRS approval to retain the fiscal year. A personal service corporation is a C corporation that engages in the performance of personal services by employee-owners. The activities that qualify as personal services are described in Section 448(d)(2)(A).
Publication Name: Taxation for Accountants
Subject: Business
ISSN: 0040-0165
Year: 1988
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Service issues guidelines describing accounting for long-term contracts
Article Abstract:
The IRS has issued new guidelines on accounting for long-term contracts. Accounting methods for long-term contracts can be changed, and a cost-to-cost method may be used to determine the percentage of completion. The approval of the IRS is required for any changes in the accounting method. The percentage of completion method must be used to determine alternative minimum taxable income.
Publication Name: Taxation for Accountants
Subject: Business
ISSN: 0040-0165
Year: 1987
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