How Can I Change Accounting Methods?
How Can I Change Accounting Methods?The United States Internal Revenue Service (IRS) allows businesses to use either the accrual accounting method or the cash accounting method, or a combination of both accounting systems, to track and report financial data for a business. However, whatever method you inform the IRS that you have chosen during the first year of your business you must continue to use. Answer: If you wish to change accounting methods you are required to get permission from the IRS in advance. Failure to do so can result in penalties imposed by the IRS. Once you have set up your accounting method and filed your first return, you must get IRS approval before you change the method. In general, you must file a current Form 3115 to request a change
