IRS updates accounting method rules for research expenses

September 10, 2024

The IRS has updated the procedures for obtaining automatic consent to change accounting methods for research or experimental expenditures incurred after Dec. 31, 2021.

According to Revenue Procedure 2024-34, issued August 29, the eligibility rules from Rev. Proc. 2015-13 now include accounting method changes for tax years beginning in 2022 or 2023.

Taxpayers can now make changes under Rev. Proc. 2024-23 without having to file for other tax years.

However, for changes made in these years, audit protection is limited if the taxpayer did not make a change for expenditures in their first tax year beginning after Dec. 31, 2021. Learn more.

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