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

Why cybercriminals are targeting CPAs

This free report expands on the most commonly found scams, why education and specialized IT knowledge help to lessen security vulnerabilities, and why every firm should plan carefully for how it would respond to a breach.

PODCAST

How tax reform will impact individual taxpayers

Amy Wang, a CPA who is a senior technical manager for tax advocacy at the AICPA, answers to some of the most common questions on how the new tax reform law will impact individual taxpayers.