Daily Tax Update - May 29, 2015: IRS Requests Comments on Revenue Recognition Standards

IRS Requests Comments on Revenue Recognition Standards:  In Notice 2015-40, the IRS requests comments regarding the effect of new revenue recognition standards announced by the Financial Accounting Standards Board and the International Accounting Standards Board on taxpayers’ methods of accounting.  The IRS notes that the new standards for financial accounting purposes may affect the timing of income for tax accounting purposes, and that this raises substantive and procedural issues for the IRS.  The IRS is therefore inviting comments on whether the new standards are permissible methods of accounting for federal income tax purposes, the types of accounting method change requests that will result from the new standards, and whether the current procedures for obtaining IRS consent to change accounting methods are adequate.

IRS Provides Guidance on Regulated Investment Companies:  In Notice 2015-41, the IRS provides guidance for regulated investment companies regarding capital gain dividends.  The notice addresses how changes that were made to section 852 in 2010 affect the bifurcation adjustment and other aspects of the computation of capital gain dividends.