IRS updates automatic accounting method change procedures

Posted 5/11/2018

The IRS has released details of a new revenue procedure that provides a new automatic way that companies can use when changing their accounting method to conform to the FASB’s new revenue recognition standard. The revenue procedure the IRS issued Thursday modifies an earlier one from last year, Rev. Proc. 2017-30, to provide procedures for obtaining automatic consent from the IRS for the change in accounting method. It provides new procedures for taxpayers changing their method of accounting for the recognition of income for federal income tax purposes, and when the method change is made for the taxable year in which the taxpayer adopts the new standards.

Journal of Accountancy Accounting Today