The changes update Revenue Procedure 2015-13 and primarily replace the list of automatic accounting method changes in Revenue Procedure 2017-30. Taxpayers must file Form 3115, Application for Change in Accounting Method, when changing accounting methods – regardless of whether IRS approval is required.
The new revenue procedure “is effective for a Form 3115 filed on or after May 9 for a year of change ending on or after Sept. 30, 2017, that is filed under the automatic change procedures of Revenue Procedure 2015-13, as clarified and modified by Revenue Procedure 2015-33, and as modified by Revenue Procedure 2017-59, and by Section 17.02 of Revenue Procedure 2016-1. Transition rules allow taxpayers who have a change in accounting method pending on May 9 to notify the IRS that they want to have Revenue Procedure 2015-13 apply to their request.”
Here’s the full list of topics addressed in the revenue procedure:
Commodity credit loans
Trade or business expenses
Interest expense and amortizable bond premium
Depreciation or amortization or former
Research and experimental expenditures
Elective expensing provisions
Computer software expenditures
Start-up expenditures and organizational fees
Uniform capitalization methods
Losses, expenses and interest with respect to transactions between related taxpayers
Terry Sheridan is an award-winning journalist who has covered real estate, mortgage finance, health care, insurance, personal finance, and accounting and taxation issues for newspapers, magazines, and websites. A Chicago native and former South Florida resident, she now lives in New England.