Tax News

IRS Updates Procedures for Change in Accounting Methods

In a new Revenue Procedure, the Internal Revenue Service issued updated procedures for changing a business’s method of accounting for income tax purposes. Revenue Procedure 2015-13 updates and provides revised procedures under Section 446(e) of the Tax Code and Section 1.446-1(e) of the Income Tax Regulations for taxpayers to obtain:

• Automatic consent for a change in an accounting method; and,
• Advance (non-automatic) consent to change an accounting method.

In addition, a second Revenue Procedure (Revenue Procedure 2015-14) contains a List of Automatic Changes to which the automatic change procedures in Rev. Proc. 2015-13, 2015-5 Internal Revenue Bulletin (or its successor), apply.

The Revenue Procedures are generally effective for Forms 3115 filed on or after Jan. 16, 2015, for a year of change ending on or after May 31, 2014. Some transitional rules applies. For more guidance, contact John Monahan at 720.227.0060 or

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