Routine service contracts.

• Author: Josephs, Staurt R.
• Position: FED TAX UPDATES - Brief article

Rev. Proc. 2015-39 provides a safe harbor under which accrual basis taxpayers may treat economic performance as occurring ratably for ratable service contracts.

A change in the treatment of these contracts to conform to this safe harbor is an accounting method change. A taxpayer making this change must use the automatic change procedures in Rev...