Industry Director’s Directive #3 on Super Completed Contract Method
LB&I Control No. LB&I-4-1010-029
Impacted IRM: 4.51.2
February 23, 2011
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MEMORANDUM FOR |
INDUSTRY DIRECTORS, LB&I |
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FROM: |
Keith M. Jones /s/ |
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SUBJECT: |
Industry Director’s Directive #3 on Super Completed Contract Method |
This memorandum is issued to supplement the second Industry Director’s Directive on the Super Completed Contract Method (SCCM) of accounting (LMSB-04-0209-006) issued September 15, 2009, which provides direction in examinations involving use of the SCCM, including in the residential construction industry. SCCM is an LB&I Tier II Issue.
Effective immediately, the status of the SCCM issue is changed from active to monitoring. In monitoring status, the SCCM issue can be resolved by examiners applying existing guidance without the extensive coordination required for issues in active status. While issues in monitoring status may no longer require the focused attention of an Issue Management Team, they still need to be managed in accordance with established guidance whenever they appear on a tax return. Other than this change to monitoring status, the second Industry Director’s Directive on the SCCM remains in effect.
This Directive is not an official pronouncement of law and cannot be used, cited, or relied upon as such.
Contact
If you have any questions, please contact the Construction Technical Advisor.
Issue Tracking
| UIL Codes: | 460.04-00 Exception for Certain Construction Contracts 460.04-01 Home Construction Contract Exceptions |
| SAIN: | 707 Accounting Methods |
| Second Tier SAIN: | 360 Completed Contract Method |
| Project Code: | 0539 |
| ERCS Tracking Code: | 0539 |
This Directive is not an official pronouncement of law and cannot be used, cited, or relied upon as such.
cc: Commissioner, LB&I
Deputy Commissioner (Operations), LB&I
Deputy Commissioner (International), LB&I
Director, Planning, Quality, Analysis & Support, LB&I
Director, Research & Workload Identification, LB&I
Division Counsel, LB&I
Chief, Appeals
Commissioner, SBSE
www.IRS.gov
