Obtaining automatic consent to change accounting methods for expenditures paid or incurred in tax years starting after December 31, 2021
The IRS today released Rev. Proc. 2024-34 to modify procedures under section 446 for obtaining automatic consent to change accounting methods for expenditures paid or incurred in tax years starting after December 31, 2021.
Specifically, the revenue procedure:
In addition, for any change under Rev. Proc. 2024-23 made in a tax year beginning in 2022 or 2023 (other than the first tax year beginning after December 31, 2021), Rev. Proc 2024-34 limits audit protection for research or experimental expenditures paid or incurred in the taxpayer’s first tax year beginning after December 31, 2021, if the taxpayer failed to make a change for such expenditures for such tax year.