On September 5, 2019, the US Internal Revenue Service (the "IRS") released two separate, but related, sets of proposed regulations. One set addresses tax accounting for advance payments, and the other addresses accelerated tax income recognition when a taxpayer recognizes income on an applicable financial statement (an "AFS") prior to the time it recognizes such income under normal accrual method accounting. The Tax Cuts and Jobs Act amended the US tax code to include both of these rules for tax years beginning after 2017. 

The attached Mayer Brown Legal Update, prepared by New York lawyers Mark Leeds, Juan Lopez, Brennan Young and Stephanie Wood, summarizes how these rules impact affected taxpayers. This Legal Update will be published in the BNA/Bloomberg Tax Management Memorandum on September 23, 2019.

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Originally published September 23 2019

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This Mayer Brown article provides information and comments on legal issues and developments of interest. The foregoing is not a comprehensive treatment of the subject matter covered and is not intended to provide legal advice. Readers should seek specific legal advice before taking any action with respect to the matters discussed herein.