IRS Offers Help on Mutual Fund Expenses


TAX NEWS

Mutual fund distributors can benefit from the new IRS guidance on how to account for commissions paid on sales of mutual fund B shares.

Revenue procedure 2000-38, which became effective October 2, outlines three methods—the distribution fee period, the five-year and the useful life. All three allow the distributor to capitalize the commissions paid.
Larry Langdon, commissioner of the IRS Large and Mid-Size Business Division, said the revenue procedure is an example of how the division is focusing on working with taxpayers to resolve issues in a quicker, fairer manner.

Distributors who wish to change to one of the three accounting methods must obtain the IRS commissioner’s consent by following the procedures outlined in the new guidance.

The text of the revenue procedure is available on the IRS Web site, www.irs.gov .

SPONSORED REPORT

Building client loyalty with payroll services

In this report, CPA experts detail their tactics for performing successful payroll services, how to mitigate risk in the process, and the impact payroll can have as a value-added service.

PODCAST

Using drones to enhance audits

Hermann Sidhu, CPA, global assurance digital leader at EY, walks us through EY’s exciting new project to use drones to help audit large warehouses and outdoor inventories.