The IRS has issued a new revenue procedure that taxpayers must follow when they want to obtain automatic consent to change accounting methods. The new procedure generally applies to applications to change accounting methods that are filed on or after January 10, 2011, for a year of change ending on or after April 30, 2010.

In general, a change in accounting method occurs when there is a change in the overall plan of accounting for gross income or deductions or when there is a change in the treatment of any material item. Except as otherwise provided, a taxpayer must obtain the consent of the IRS before changing accounting methods for tax purposes. Under the general rule, a taxpayer obtains IRS consent to an accounting method change by filing Form 3115, Application for Change in Accounting Method, during the tax year in which the taxpayer wants to make the change.

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