Accounting Method Changes White Paper
Created on September 28, 2012
Once accounting methods are established if the taxpayer wishes to change them they must generally request permission for the accounting method change from the Commissioner. Whether it’s simply advantageous to adopt a new method or just change from an impermissible method to a permissible one, proper steps must be taken to ensure the method is accepted by the IRS
There are many possible changes that can be applied for. As a tax advisor and preparer it’s critical to know some of the most common changes such as cash to accrual and depreciation changes. The IRS recognizes that there are many common changes which have the potential to burden the IRS as well as the taxpayer. The IRS has attempted to streamline the process for common changes. Therefore, changing an accounting method may not be as difficult as one may think.
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