The recently revised accounting method change procedures provide greater flexibility for accounting method changes filed as a result of certain merger and acquisition transactions.
This KPMG report explains how the rules changed and how an acquiring corporation in an eligible acquisition transaction may shift a positive (additional income) section 481(a) adjustment from the target’s use of improper accounting methods entirely to the target corporation by making an affirmative election.
Read an August 2015 report [PDF 175 KB] prepared by KPMG LLP: What’s News in Tax: Eligible Acquisition Transactions—One-Year Spread Permitted on Positive Section 481(a) Adjustments
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