IRS Modifies Procedures for Accounting Method Changes

Filed in Miscellaneous by on September 25, 2009

The IRS has updated guidance on how taxpayers obtain consent for changes in methods of accounting. Revenue Procedure 2009-39 provides guidance on automatic consents for accounting method changes and clarifies the general procedures for obtaining non-automatic consents.

In general a taxpayer may not request a change in accounting method when under examination. The updated revenue procedure includes changes to the earlier revenue procedure and adds to the definition of “under examination.” It also refers to changes in filing requirements for an accounting method change, defines which issues mandate filing a change in accounting method form, and provides guidance for specific accounting method changes and when an automatic consent will not apply.

For more information see Internal Revenue Bulletin: 2009-38.

Source: AICPA Tax Alert 9/25/09

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