Change in Accounting Method

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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It also presents an opportune time to review the types of accounting practices that constitute a method of accounting for tax purposes, the general procedures by which a taxpayer may initiate a change in accounting method, certain benefits or consequences of initiating or not initiating a change, and a brief discussion of the new voluntary-method-change guidance.
97-27, TEI objected to the IRS's use of a revenue procedure to assert that a change in character of an item may be a change in accounting method.
Nine-month income before the change in accounting method was $5,984,000, or $1.
Any change by a taxpayer from the present method of accounting for inventory to the UsedVehicle Alternative LIFO Method is a change in accounting method that requires filing Form 3115, Request for Change in Accounting Method.
Moreover, the new procedure adopts a novel and, to our mind's eye, unwarranted expansion of the definition of what constitutes a change in accounting method.
31 per share, down from 1993 first-half income before a change in accounting method of $4,005,000, or $0.
A nonqualifying taxpayer would be required to file Form 3115, Application for Change in Accounting Method, under the provisions of Rev.
Hence, taxpayers complying with the procedure are generally accorded "back-year" protection against involuntary changes by the IRS in addition to prospective effect for the change in accounting method.
109, prior year financial statements have not been restated to reflect the change in accounting method.
Taxpayers that want to make an automatic change in accounting method for a tax year ending on or after Dec.
Third, section 481 and the applicable revenue procedures generally allow a taxpayer several years to take into the income the effect of an unfavorable change in accounting method.
05 per share, down from 1993's first quarter income before change in accounting method of $2,851,000, or $0.
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