Useful Items

Refer to the following items for more information on changing an accounting method.

Rev. Proc. 2023-1. See Rev. Proc. 2023-1 . This revenue procedure provides specific and additional procedures for requesting an accounting method change, including the user fee for non-automatic method of change requests.

Rev. Proc. 2015-13. See Rev. Proc. 2015-13 . This revenue procedure provides the automatic and non-automatic method change procedures to obtain consent of the IRS to change an accounting method.

Rev. Proc. 2022-14. See Rev. Proc. 2022-14 . This revenue procedure contains a list of accounting method changes that may be eligible to file under the automatic method change procedures.

Inflation-adjusted amount. Certain automatic accounting method changes require that the applicant’s average annual gross receipts for the 3 preceding tax years be at or less than the “inflation-adjusted amount” (set forth in an annual revenue procedure) See, for example, DCN 22. For years beginning in 2022, the inflation adjusted amount is $27,000,000. See Rev. Proc. 2021-45 .

Pub. 538, Accounting Periods and Methods. This publication provides general information on accounting methods.