The IRS Large Business and International division (LB&I) is rolling out a series of campaigns focused on specific compliance issues. The division analyzed extensive data as well as suggestions from IRS compliance employees and the tax community to improve large business compliance activities.
According to the IRS, some large land developers that construct in residential communities may be improperly using the Completed Contract Method (CCM) of accounting. A developer whose average annual gross receipts exceed $10 million may only use the CCM under a home construction contract. In some cases, developers are improperly deferring all gain until the entire development is completed. LB&I will develop a practice unit on this issue, train agents to address compliance matters through letters, and follow up with issue-based examinations as needed.
For more information on this and other IRS LB&I compliance campaigns, click here: https://www.irs.gov/businesses/large-business-and-international-launches-compliance-campaigns
