When the IRS requires a taxpayer to change accounting methods:
A) The taxpayer may be subject to penalties and interest.
B) The taxpayer generally is required to make the change as of the beginning of the earliest open year.
C) The adjustments due to the change cannot be spread over subsequent years.
D) Only a. and b. are correct.
E) a., b., and c. are correct.

Question

Quizplus · Accepted Answer

The taxpayer may face penalties and interest, and is generally required to make the change as of the beginning of the earliest open year. Additionally, the adjustments due to the change cannot be spread over subsequent years.

When the IRS Requires a Taxpayer to Change Accounting Methods