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    Taxation: Change in accounting method for tax reporting

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    Once a method of accounting has been selected and applied for tax reporting, it can only be changed with permission of the IRS.

    Any change from an improper method to a proper method will automatically be approved after filing for permission.


    1. List three common types of changes in method subject to review and approval by the IRS.

    2. Adjustments as a result of a change in method can affect how many years?

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    Solution Preview

    1. Three types of changes subject to approval are:

    a. A change from cash to accrual, or accrual to cash as explained in Rev. Proc. 2002-9.

    b. Any change in the ...

    Solution Summary

    The solution the procedure to change an accounting method with the IRS. It lists the three types of changes which are subject to approval.