change in accounting method


change in accounting method
A change in the taxpayers method of accounting is an overall change in the plan of accounting, e.g. a change from the cash to the accrual method, or a change in the method of valuing inventories. Such change normally requires prior approval from the Internal Revenue Service. Generally, a request to the Internal Revenue Service must be filed within 180 days after the beginning of the taxable year of the desired change. In some instances, the permission for change will not be granted unless the taxpayer agrees to certain terms or adjustments which are prescribed by the Internal Revenue Service

Black's law dictionary. . 1990.

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