Rev. Proc. simplifies voluntary accounting method changes

Article Abstract:

The IRS has introduced Revenue Procedure 97-27 which reforms the general guidelines and conditions for applying for voluntary income tax accounting method changes. The new Procedure introduces changes to the five-year old rules included in Revenue Procedure 92-20, such as revisions of general filing requirements, window periods, rules for taxpayers being examined, and terms and conditions. This Procedure also clarifies definitions of such terms as 'under examination' and 'issues under consideration.' It provides taxpayers greater opportunity to perform method changes, consists of some IRS National Office policies, clarifies or removes contentious issues, and encourages voluntary method changes. Nevertheless, it also features certain provisions that will constrict ability to introduce changes once examination begins. Effectivity date is on May 14, 1997.

Accounting and auditing, Accounting, Income tax

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Expanded services and products offered by computerized batch and on-line processors

Article Abstract:

A review of the services and products offered by batch and on-line computer processors for the tax accounting business is presented. Service and products for tax accountants have been greatly expanded for the 1991 filing year, although there are fewer processing companies due to the merger of several companies. When selecting an on-line processor or service bureau, a tax accountant should look for many variables, including: the average price for processing a return last year, the maximum price for processing a return, and the cost and availability of supporting material.

Methods, Services, Tax accounting, Tax administration and procedure, Tax administration, Surveys, Accountants

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Amending returns is not always best for reflecting changes to tax liability

Article Abstract:

Filing an amended tax return, taking no immediate action, or making compensating adjustments on a current return can all be appropriate actions for correcting prior-year tax returns. The principal situations for which the IRS accepts amended tax returns are discussed, along with procedures and time limits for amending. Tax practitioners should be aware that: some taxpayer elections made in the original return cannot be revoked without IRS consent; amended Federal returns often necessitate filing amended state returns; and amended returns can increase the risk of audit.

Management, Auditing

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