A change in a taxpayer's
accounting method to the NAE book safe-harbor method is a change in
accounting method to which Secs, 446 and 481 apply.
Grassley and Max Baucus, chair and ranking member of the Senate Finance Committee, urging the retention of the LIFO inventory
accounting method. A proposal to repeal the LIFO method was included in the proposed Gas Price Relief and Rebate Act of 2006, but was subsequently withdrawn to permit Congress additional time to study the issue.
Several sections of the repair regulations require taxpayers to secure the IRS's consent before changing to an
accounting method provided for in the regulations.
The Tax Court held that the IRS's denial of a request for a change in
accounting method that the taxpayer made outside the effective dates of the relevant regulations and revenue procedure was not an abuse of discretion.
The objective of the LIFO
accounting method is to permit taxpayers to properly match their current sales revenues with the current replacement costs and thereby compute--and pay taxes on--a meaningful gross profit amount.
* Filing Form 3115, Application for Change in
Accounting Method, with the next succeeding year's return.
On January 10, 2011, the IRS issued revised procedures for automatic
accounting method changes.
One of the taxpayer's subsidiaries attached Form 3115, Application for Change in
Accounting Method, to its 1998 consolidated return, requesting a change in its method of accounting based on the provisions of section 1272(a)(6)(C)(iii).
The IRS or the taxpayer can initiate a change in
accounting method. Taxpayers that file a request for change before being contacted for an IRS examination generally receive more favorable terms and conditions (e.g., a later year of change and a longer Sec.
[section] 1.446-l(e)(2)(iii), Example 6, properly including overhead costs in inventory valuation after those costs had consistently been omitted is given as an illustration of a change in
accounting method.
shareholders who own directly or indirectly, in the aggregate, more than 50% of the total combined voting power of all classes of CFC stock who are entitled to vote and undertake to act on its behalf--may make an election, or adopt or change an
accounting method, on behalf of the CFC (without regard to any other different methods or elections previously used to prepare its books and financial statements).
There's a new philosophy in the marketplace about life insurance, and we believe it warrants a change in the
accounting method used for this popular investment product.
On July 30, 1998, Tax Executives Institute submitted the following comments on Notice 98-31, relating to IRS-initiated
accounting method changes.
A sigh of relief usually follows when a tax practitioner informs a client that a particular
accounting method change request can be filed under the automatic
accounting method change procedures.
2018-60, which provides automatic consent for accrual-method taxpayers with an AFS to make certain
accounting method changes to comply with Sec.
