The IRS on Thursday, Aug. 12, updated its list of accounting method changes to which automatic change procedures apply.
Generally, unless otherwise provided, a taxpayer must secure the IRS’ consent before changing its accounting method. To obtain consent, taxpayers file Form 3115, Application for Change in Accounting Method.
Changes under Rev. Proc. 2021-34 cover a variety of matters, including certain uniform capitalization methods, changes in the overall method of accounting from the cash method to an accrual method, and the timing of income recognition and incurring inventory costs. Learn more.