A taxpayer's method of accounting must clearly reflect income and be used consistently from year to year. Once adopted, a method of accounting cannot be changed without approval from the IRS; consequently, sound advice from a professional is vital to clients. This course reviews and defines the most common changes in accounting method, providing practitioners with the knowledge they need to properly advise their clients. Though detailed examples (complete with filled-in forms) attendees will learn how to properly complete Form 3115, which items are necessary and those that should be skipped, how to calculate and present IRC § 481(a) adjustments, the required attachments under the latest revenue procedure, and recently revised filing instructions.
After completing this course, you will be able to:
- Identify the difference between a change in accounting method and a correction of an error
- Recognize when and how to file (and e-file) Form 3115 and the importance of timing
- Recognize when to limit the information included on Form 3115 and what to skip entirely
- Apply accounting method changes in the List of Automatic Changes
- Determine when an accounting method change can be accomplished relative to an IRS examination
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