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)All of the above are correct.
E)None of the above is correct.

Question

Quizplus · Accepted Answer

If the IRS requires a taxpayer to change accounting methods, the taxpayer may be subject to penalties and interest. Generally, the taxpayer is required to make the change as of the beginning of the earliest open year. The adjustments due to the change cannot be spread over subsequent years. Therefore, all of the above statements are correct.

When the IRS Requires a Taxpayer to Change Accounting Methods