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The “Tax Cuts and Jobs Act” (Public Law No. 115-97) becomes eligible for testing in the CPA Exam’s Regulation (REG) section on January 1, 2019. The AICPA first shared this information with candidates in February as it began integrating and revising Exam content for the ’19Q1 test window. Candidates were reminded of the coming changes earlier this month.
When taking the revised REG section, candidates may get questions that have different tax treatments based on timing specified in the Act (e.g. alimony arrangements, net operating losses, etc.). If so, these questions will clearly state the timing so candidates can find the proper portions of the Internal Revenue Code or Treasury Regulations that may apply.
When timing or assumptions are not stated in an Exam question, candidates should assume that the transactions or events referenced occur in the current year. In this case, candidates should apply the most recent provisions of the tax law according to the Board of Examiners’ Policy on New Pronouncements.