New Series

Having restarted my blog with a practitioner-to-practitioner focus, I am launching a series of posts based on my experiences interacting with other tax practitioners online and in real life. These posts will address frequently asked questions and common misconceptions in the area of tax accounting methods and credits.

IRS to Restaurants: Comply with UNICAP!

On September 26, 2014, the Service released Chief Counsel Advice 201439001 on restaurants' UNICAP compliance. Historically, few restaurants complied with UNICAP. This led to LB&I examining a number of restaurants on this issue.  In this memo, Chief Counsel advised the Field that restaurants willing to adopt a reasonable facts-and-circumstances UNICAP method should not be required to use the Simplified Production Method.