ACCOUNTING

New Deadlines for Accounting Changes

Advertisement

August 17, 2005--The Internal Revenue Service (IRS) has issued a new procedure this week that waives the 90-day period for submitting accounting method change requests.

The new protocol affects the time requirement for business taxpayers applying to change their accounting methods for Commodity Credit Corporation loans and for those requesting consent to accrue their real property taxes. It also applies to requests made by acquiring corporations to use specific methods of accounting or taking inventory.

Applicants now have three options for when they wish to submit requests, including the last day of the tax year for which they want to change their accounting methods. Applicants may otherwise choose one of the following options for filing: within 180 days after the date of distribution or transfer; or the day on which the taxpayer files his federal income tax return for the tax year in which the distribution occurred - whichever date comes first.

Previously, applicants needed to submit those requests within the first 90 days of the pertinent tax year. Before that, a 180-day period was in place.

The IRS said that the method of submitting requests remains the same under the specific ramifications of the relevant codes. The only change to codes' applications processes is the timeframe allotted them.

Last updated: Aug 17, 2005




Register on Inc.com today to get full access to:
All articles  |  Magazine archives | Livestream events | Comments
EMAIL
PASSWORD
EMAIL
FIRST NAME
LAST NAME
EMAIL
PASSWORD

Or sign up using: