Construction Executive published an article by Construction Leader Joseph Natarelli and Tax Partner Barry Fischman, about whether construction accounting methods for financial reporting and Income Tax Reporting should ever be the same.
Construction Accounting & Taxation
By Joseph Natarelli, National Construction Industry Group Leader & Barry Fischman, Partner, Tax & Business Services
To properly advise the contractor, CPAs must not only know and understand GAAP, as well as the income tax rules and provisions under IRC 460, but also must be able to identify the contracts that lend themselves to deferral opportunities. The work in process (WIP) schedules for open and closed jobs is a great place to start.