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.