IRS Adopts Westpac

The IRS said it will follow the ruling of the Ninth Circuit Court of Appeals in Westpac Pacific Food v. Commissioner (97 AFTR2d 2006-3014) concerning timing of recognition of volume trade discounts paid as cash advances. Westpac, a West Coast partnership of grocery retailers, received advances from manufacturers in exchange for its promises to purchase goods. The advances had to be repaid if Westpac failed to buy the contracted amounts. The IRS and Tax Court held that the advances were income when received; the Ninth Circuit ruled they could be recognized as a reduction of cost of goods at the time of purchase. For more on the decision, see “ Tax Matters,” JofA, Dec. 06, page 80. In Rev. Proc. 2007-53, the IRS outlined how accrual-method taxpayers may adopt the method, including automatic consent to the change.


Year-end tax planning and what’s new for 2016

Practitioners need to consider several tax planning opportunities to review with their clients before the end of the year. This report offers strategies for individuals and businesses, as well as recent federal tax law changes affecting this year’s tax returns.


News quiz: Retirement planning, tax practice, and fraud risk

Recent reports focused on a survey that gauges the worries about retirement among CPA financial planners’ clients, a suit that affects tax practitioners, and a guide that offers advice on fraud risk. See how much you know with this short quiz.


Bolster your data defenses

As you weather the dog days of summer, it’s a good time to make sure your cybersecurity structure can stand up to the heat of external and internal threats. Here are six steps to help shore up your systems.