IRC CODE & CONCEPTS
This determines whether income is ordinary or capital.
What is character?
The pass-through entity that generally avoids double taxation.
What is an S Corporation?
The schedule that tracks contract revenue, costs, and gross profit over time.
What is a WIP schedule?
This provision allows exclusion of gain on qualified small business stock held 5 years.
What is Section 1202?
This form authorizes someone to represent a taxpayer before the IRS.
What is Form 2848?
This represents a taxpayer’s investment in property for tax purposes.
What is basis?
This election allows partnerships and S Corps to pay state tax at the entity level.
What is the PTE tax election?
This revenue recognition method recognizes income based on progress toward completion.
What is Percentage-of-Completion?
This section allows deferral of gain when selling stock to an ESOP.
What is Section 1042?
This form requests additional time to file a tax return.
What is Form 7004?
This doctrine taxes income when a taxpayer has unrestricted access to it.
What is constructive receipt?
This doctrine allows the IRS to recharacterize S-Corp distributions as wages.
What is reasonable compensation?
This method defers contract income until the job is finished.
What is the Completed Contract Method?
This structure allows deferral of capital gain by reinvesting in distressed areas.
What is a Qualified Opportunity Zone?
This form is used to change an accounting method.
What is Form 3115?
This principle requires income and expenses to be matched to the proper period.
What is the matching principle?
This IRC section governs tax-free contributions of property to a corporation.
What is Section 351?
This Revenue Ruling authorizes excluding retainage from income until billable.
What is Rev. Rul. 69-314?
This method spreads recognition of gain over time when seller financing is used.
What is the installment sale method under Section 453?
This document provides official IRS guidance on administrative procedures.
What is a Revenue Procedure?
This doctrine prevents taxpayers from avoiding tax through purely formal transactions lacking economic substance.
What is the economic substance doctrine?
This IRC section allows tax-free contributions of property to a partnership.
What is Section 721?
This average annual receipts threshold allows small contractors to avoid PCM for long-term contracts (2025 level).
What is approximately $29 million?
(Accept “small contractor exemption threshold”)
This IRC section provides energy-efficient building deductions often used by contractors.
What is Section 179D?
This is the standard IRS audit statute of limitations for filed returns.
What is three years?