Tax Compliance Series for Construction Contractors: Lookback

Share Button

In part one of our six-part series on tax compliance, we explored the various methods of accounting common to construction companies. Today, we take a closer view at lookback.

When the IRC Section 460 was enacted in 1986, the IRS determined that it was possible for contractors to abuse the new reporting requirements and intentionally under-report taxable income by manipulating the percentage of completion on a contract. To combat this, they incorporated a lookback provision which states that, in the year a contract is completed, the taxpayer must look back to the prior tax years the contract was …read more

Read more here:: Construction

About

has written 972 post in this blog.

Share Button