Rev. Proc. 2011-46: Nonaccrual-Experience Method Taxpayer Safe Harbor

The I.R.S. has issued a revenue procedure addressing the safe harbor for certain nonaccrual-experience taxpayers under section 448(d)(5). Under the safe harbor, taxpayers using the method generally are not required to include amounts accrued, but not expected to be collected, for the performance of services. To qualify to use this method, the accounts not expected to be collected must be for services in one of eight specified fields or total less than $5 million.

See Rev. Proc. 2011-46 (Sept. 28, 2011).

Posted by Adam Bair, Associate Editor, Wealth Strategies Journal