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#1
06-21-2005, 04:51 AM
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 Re: Accounting Method Change "KJ Nichols, CPA" <knichols[at]rfoods.com> wrote: - quote - > If the IRS issues new regulations or changes existing
Section 446(e) requires the consent of the Commissioner for> regulations that change the way an item is treated for tax > purposes, can the taxpayer make the change without filing > Form 3115, Appplication for a Change in Accounting Method? > My specific situation is this, my company sells manufactured > products at grocery stores. We occasionally change the > labeling on the products to freshen their image. Prior to > the final INDOPCO regulations we could choose to amortize > the costs using 1 of 3 methods. The new regulations state > package design costs incurred after 2003 can be expensed > currently. Do I need to file for permission to change or > can I simply expense all costs incurred after 2003 without > IRS consent to the change? any change in accounting method. Rev. Proc. 2002-9 is the most recent pronouncement on an automatic change, via form 3115, for package design costs. Unfortunately it predates the new regulations you reference. The Preamble to the new regulations mentions the IRS *may* allow for an automatic change via Form 3115 under future guidance (that as far as I know hasn't been issued). So it looks like you must apply for the change on form 3115 and pay the applicable user fee. Even if the IRS later allows an automatic change it is almost certain a form 3115 will still have to be filed, you will just save the user fee and know ahead of time it will be approved. << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << Copyright (2005) - All rights reserved > << -------------------------------------------------> |
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06-21-2005, 04:32 AM
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| Re: Accounting Method Change "KJ Nichols, CPA" <knichols[at]rfoods.com> wrote: - quote - > If the IRS issues new regulations or changes existing
I would currently expense per the regulation without filing> regulations that change the way an item is treated for tax > purposes, can the taxpayer make the change without filing > Form 3115, Appplication for a Change in Accounting Method? > My specific situation is this, my company sells manufactured > products at grocery stores. We occasionally change the > labeling on the products to freshen their image. Prior to > the final INDOPCO regulations we could choose to amortize > the costs using 1 of 3 methods. The new regulations state > package design costs incurred after 2003 can be expensed > currently. Do I need to file for permission to change or > can I simply expense all costs incurred after 2003 without > IRS consent to the change? for IRS consent. If audited, refer to the regulation. Wayne Brasch << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << Copyright (2005) - All rights reserved > << -------------------------------------------------> |
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#-1
06-16-2005, 10:58 AM
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| Accounting Method Change If the IRS issues new regulations or changes existing regulations that change the way an item is treated for tax purposes, can the taxpayer make the change without filing Form 3115, Appplication for a Change in Accounting Method? My specific situation is this, my company sells manufactured products at grocery stores. We occasionally change the labeling on the products to freshen their image. Prior to the final INDOPCO regulations we could choose to amortize the costs using 1 of 3 methods. The new regulations state package design costs incurred after 2003 can be expensed currently. Do I need to file for permission to change or can I simply expense all costs incurred after 2003 without IRS consent to the change? << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << -------------------------------------------------> |
| Tags |
| accounting, change, method |
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