Automatic Consent Procedures Updated for Certain Accounting Method Changes

The IRS has updated automatic consent procedures for taxpayers to change their method of accounting to comply with final regulations under Code Secs. 263A, 448, 460 and 471 issued on January 5, 2021 (T.D. 9942). This guidance modifies Rev. Proc. 2019-43, 2019-48 I.R.B. 1107, as modified by Rev. Proc. 2021-34, 2021-35 I.R.B. 337 and Rev. Proc. 2018-40, 2018-34 I.R.B. 320, to remove the option of netting the remaining portion of a Code Sec. 481(a) adjustment that resulted from a prior method change. Further, procedures for taxpayers to revoke an election made under proposed Reg. §1.448-2(b)(2)(i)(B) for tax years beginning on or after January 5, 2021, or in the case of taxpayer that early applies the final regulations, for tax years in which the final regulations are applicable, have also been provided.