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?© BrainMass Inc. brainmass.com June 3, 2020, 8:09 pm ad1c9bdddf
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 ...
The solution the procedure to change an accounting method with the IRS. It lists the three types of changes which are subject to approval.