USA Construction Accounting - Projects without Profit- I.R.S. accept it ???

[celebenil2024]

Hi

I work for a construction company and it has a few projects without any profit ( I know.... ) The question is if the I.R.S. accept it.

 

[DrStrangeLove]

Why would the IRS have a say in "accepting" these projects or not"? It's up to management whether it accepts projects that generate losses. Some projects turn unprofitable, and some contracts for now-unprofitable contracts can't be cancelled, modified or broken. Plus, if your company is generating more losses than profits....that's a problem the IRS doesn't have to solve, so to speak. So long as you're accurately reporting income and deductions, your loss-making projects are not the IRS's problem.