Financial Accounting Blog

Sunday, March 28, 2004

The Accounting Web Reports Treasury Issues Accounting Method Change Procedure.
The Treasury Department and IRS issued a revenue procedure that sets forth the exclusive administrative procedures that taxpayers must use to obtain automatic consent to change to their methods of accounting under the recently issued regulations on capilatlizing costs incurred in acquiring or creating intangible assets. Several companies switched following the January 2002 issuance of advance notice of proposed rulemaking and did so without the Commissioners consent. Those taxpayers will not be eligible to use these procedures until their ammend their prior federal income tax returns to correct their unauthorized charges.