Financial Accounting News

Advance Payment Tax Rule Carveout May Apply Beyond Aerospace (1)

Sept. 19, 2019, 4:01 PMUpdated: Sept. 19, 2019, 8:47 PM

Aeorspace businesses emerged as the big winners under proposed rules on companies’ abilities to defer tax on payments they receive from customers ahead of delivering goods or services.

But other industries could also benefit, according to IRS and Treasury officials.

The 2017 tax overhaul amended tax code Section 451 to allow companies to defer, for up to a year, taxes on all or a portion of payments customers make ahead of time for goods and services.

Manufacturers like Boeing Co. and United Technologies Corp., however, previously enjoyed multiple years of deferral on advance payments for expensive products and equipment,...

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