The IRS today released an advance version of Notice 2017-17 to request comments on a proposed revenue procedure that, if finalized, would provide procedures by which a taxpayer may request consent to change a method of accounting for recognizing income when the change is made for the same tax year for which the taxpayer adopts the new financial accounting revenue recognition standards and the change is made as a result of, or directly related to, the adoption of the new revenue recognition standards (a qualifying same-year method change).
Read text of Notice 2017-17 [PDF 39 KB]
In a May 2014 joint announcement, the FASB and the IASB announced new financial accounting standards for recognizing revenue, effective for public companies in 2018 and private companies in 2019.
In June 2015, the Department of Treasury and the IRS published Notice 2015-40 [PDF 38 KB] which requested comments on federal tax accounting issues related to the adoption of the new standards, including, whether the new standards are permissible methods of accounting for federal income tax purposes, the types of accounting method change requests that might result from adopting the new standards, and whether the current procedures for obtaining IRS consent to change a method of accounting are adequate to accommodate those requests. Read TaxNewsFlash-United States
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