IRS Publishes Updated List of Automatic Accounting Method Changes in Rev. Proc. 2019-43

The IRS recently published Rev. Proc. 2019-43, which is an updated list of automatic accounting method changes.

BACKGROUND

An accounting method is the method by which income and expenses are reported for taxation purposes. Accounting methods can be used as a tax planning tool to help taxpayers implement cost segregation studies and energy efficiency incentives, adopt favorable provisions of the Tangible Property Regulations, and numerous other tax minimization strategies. Further, accounting methods also help taxpayers correct improper methods to maintain tax compliance or to eliminate audit risk.

REV. PROC. 2019-43

As bit of housekeeping, the IRS publishes a new list of accounting method changes on a roughly annual basis. So, for example, the prior list of automatic accounting method changes found in Rev. Proc. 2018-31 did not include a new accounting method that expands the number of small business taxpayers eligible to use the cash receipts and disbursements method of accounting (cash method) found in Rev. Proc. 2018-40. New Rev. Proc. 2019-43 now includes this accounting method.

HOW WE CAN HELP

ICS Tax has tremendous experience with accounting methods and preparing Form 3115, Application for Change in Accounting Method. Please let us know if you need help.

FREE CPE

Alex Bagne, the President of ICS Tax and an accounting method export, has provided CPE sessions to state CPA societies as well as to CPA firms throughout the country. We provide free in-house CPE sessions for tax professionals. Please contact us to learn more.