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IRS Issues List of 32 Accounting Method Changes

May 18th 2018
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The IRS has issued a new 32-topic list of accounting method changes affected by Revenue Procedure 2018-31.

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:

  1. Gross income
  2. Commodity credit loans
  3. Trade or business expenses
  4. Bad debts
  5. Interest expense and amortizable bond premium
  6. Depreciation or amortization or former
  7. Research and experimental expenditures
  8. Elective expensing provisions
  9. Computer software expenditures
  10. Start-up expenditures and organizational fees
  11. Capital expenditures
  12. Uniform capitalization methods
  13. Losses, expenses and interest with respect to transactions between related taxpayers
  14. Deferred compensation
  15. Methods of accounting
  16. Taxable year of inclusion
  17. Obligations issued at discount
  18. Prepaid subscription income
  19. Special rules for long-term contracts
  20. Taxable year incurred
  21. Rent
  22. Inventories
  23. Last in, first out inventories
  24. Mark-to-market accounting method
  25. Bank reserves for bad debts
  26. Insurance companies
  27. Discounted unpaid losses
  28. Real estate mortgage investment conduit
  29. Functional currency
  30. Original issue discount
  31. Market discount bonds
  32. Short-term obligations

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