Revenue Procedures 2009-41 and 2010-32, both issued by the Internal Revenue Service (IRS), provide guidance regarding automatic accounting method changes. The central distinction lies in their respective scopes and application periods. Procedure 2009-41 consolidated and updated various existing automatic change procedures, aiming to streamline the process for taxpayers seeking to alter their accounting practices. It was effective for changes filed on or after June 15, 2009. In contrast, Procedure 2010-32 specifically addressed the automatic consent procedures for changes related to depreciation and amortization, providing updated and clarified rules in this area. It became effective for changes filed on or after May 3, 2010.
Understanding the nuances between these procedures is crucial for taxpayers and tax professionals. Selecting the correct procedure ensures adherence to IRS regulations, potentially avoiding penalties or audit scrutiny. The historical context reveals the IRS’s ongoing effort to simplify and update accounting method change procedures, with each issuance reflecting modifications and refinements based on experience and emerging issues. Choosing the incorrect procedure could result in a rejected application or require an amended filing, leading to delays and additional compliance costs.
