On August 12, the US Internal Revenue Service outlined procedures (Revenue Procedure 2021-34) for obtaining automatic consent to change methods of accounting to comply with final rules issued in 2020 under Internal Revenue Code Section 451 relating to the taxable year of inclusion in gross income.
The guidance also addresses changing methods of accounting for certain inventory costs if those changes are made in connection with a change to comply with the final IRC Section 451 rules.
The guidance is generally effective for Forms 3115, Application for Change in Accounting Method, filed on or after August 12.
Concurrently, to reflect changes made to the treatment of certain credit card fees by the 2017 Tax Cuts and Jobs Act, the IRS updated guidance allowing taxpayers to use a safe harbor method of accounting for original use discount on a pool of credit card receivables for certain purposes (Revenue Procedure 2021-35). The changes are effective August 12.
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