News & Events Listings

In early 2015, the IRS transitioned its listing of automatic accounting method changes from the appendix of the general Revenue Procedure to its own separate Revenue Procedure, giving it the freedom to regularly issue new changes and modifications. On May 5, the IRS did just that in issuing Rev. Proc. 2016-29; among the highlights:
  • issued new changes related to start-up costs under section 195, changes to interest capitalization under section 263A and changes to retail inventory under section 471;

  • eliminated automatic changes from long-term contracts to the percentage-of-competition method; and

  • disallowed changes to deprecation methods on property in which the taxpayer previously received a federal tax credit.

  • The complete Revenue Procedure can be found here on the IRS' website. If you have any questions, contact your local UHY LLP professional.