Automatic Procedures for Changing Accounting Methods Updated, Expanded


The IRS on Monday released updated procedures under which taxpayers can receive automatic consent to change their accounting methods ( Revenue Procedure 2011-14 ). The revenue procedure updates prior guidance contained in Revenue Procedures 2008-52 and 2009-39 and gives additional accounting method changes for which taxpayers can obtain automatic consent. The revenue procedure also modifies the procedures in Revenue Procedure 97-27 for requesting and obtaining non-automatic advance consent for a change in method of accounting.

 

The 325-page revenue procedure covers dozens of accounting method changes. It also reiterates in detail the rules applicable to accounting method changes and the application process and specifies when audit protection is available for tax years prior to the year of the change.

 

The revenue procedure is generally effective for applications for automatic consent made on or after Jan. 10, 2011, for a year of change ending on or after April 30, 2010. It is effective for requests for non-automatic advance consent for a change in method of accounting on Forms 3115, Application for Change in Accounting Method, filed under Revenue Procedure 97-27 (as modified by subsequent revenue procedures) on or after Jan. 10, 2011, for a year of change ending on or after Jan. 10, 2011.The procedure also contains some transition rules for taxpayers who had timely filed an application for a change of accounting method on Form 3115 before Jan. 10, 2011, under prior procedures.

 

More from the JofA:

 

 Find us on Facebook      Follow us on Twitter

 

Where to find December’s flipbook issue

The Journal of Accountancy is now completely digital. 

 

 

 

SPONSORED REPORT

Get Clients Ready for Tax Season

This comprehensive report looks at the changes to the child tax credit, earned income tax credit, and child and dependent care credit caused by the expiration of provisions in the American Rescue Plan Act; the ability e-file more returns in the Form 1040 series; automobile mileage deductions; the alternative minimum tax; gift tax exemptions; strategies for accelerating or postponing income and deductions; and retirement and estate planning.