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Washington Tax Alert – August 19, 2008 – Automatic accounting method changes

Washington Tax Alert from Don Barnes, [email protected]
August 19, 2008

The Internal Revenue Service issued a new revenue procedure yesterday afternoon (see Rev. Proc. 2008-52) setting forth procedures for obtaining automatic consent for certain accounting method changes. The new revenue procedure is 282 pages long and supersedes Rev. Proc. 2002-9.

Rev. Proc. 2008-52 contains scores of new and revised provisions. The Appendix to Rev. Proc. 2008-52 has thirty three sections, whereas the Appendix to Rev. Proc. 2002-9 only had thirteen sections.

Rev. Proc. 2008-52 is effective for accounting method change applications filed on or after August 18, 2008, for tax years ending on or after December 31, 2007.

Taxpayers who filed Forms 3115 under Rev. Proc. 97-27 before August 18, 2008 for tax years ending on or after December 31, 2007 may choose, if otherwise eligible, to make their accounting method changes under Rev. Proc. 2008-52, but must notify the National Office by September 18, 2008.