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Change in Accounting Method

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Change in Accounting Method
A change from one accounting method to another, which usually requires prior approval from the IRS. A change generally requires adjustments to avoid omissions or duplications.


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The court found that the taxpayer's application for a change in accounting method was not clearly indicative of the requested change.
The IRS has ruled in technical advice (TAM 200738014) that a service provider's request for a change in accounting method for mixed service costs does not qualify for audit protection because the service provider received written notification, citing the treatment of mixed service costs as an issue under consideration.
Kindinger said dealers using the replacement cost method in the guide may continue to use it without applying for a change in their accounting methods, while others who want to change may do so by filing Form 3115--Application for Change in Accounting Method.
 
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