A bill relating to the tax treatment of long-term contracts with respect to taxable years beginning after December 31, 1982.

Amends the Internal Revenue Code to provide for the percentage of completion, completed contract, or any other accounting method which clearly reflects income from the performance of contracts which normally require more than 12 months to complete. Sets forth rules for the severance or aggregation of contracts, for the treatment of a contract as completed and for the treatment of contract costs.

Directs the Secretary of the Treasury to prescribe regulations for the determination of the earnings and profits of a corporation which uses the completed contract method of accounting.