Differential Method Adopted for Cost-Sharing Agreements Reviewed by Momizat on . The IRS recently issued regulations (T.D. 9630) affecting how the differential income stream approach applies to cost-sharing agreements.  Nearly two years ago, The IRS recently issued regulations (T.D. 9630) affecting how the differential income stream approach applies to cost-sharing agreements.  Nearly two years ago, Rating: 0
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Differential Method Adopted for Cost-Sharing Agreements

IRS

The IRS recently issued regulations (T.D. 9630) affecting how the differential income stream approach applies to cost-sharing agreements.  Nearly two years ago, “final” cost-sharing rules were published under Sec. 482.  This newer round of regulations is intended to ensure that cost-sharing agreements are in line with Sec. 482’s commensurate-with-income principle.  In its earlier attempt to guarantee pricing practice in all cost-sharing agreements, the IRS instituted the income, acquisition price, and market capitalization methods.  The motives of the IRS and a summary of the new regulations are provided by Sally Schreiber, senior editor at the Journal of Accountancy, along with links to the official IRS release. 

T.D. 9630 PDF

https://s3.amazonaws.com/public-inspection.federalregister.gov/2013-20786.pdf

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