R&E Expenses: Automatic Accounting Method Change Procedures

The following article, R&E expenses: Automatic accounting method change procedures, originally appeared in the May 2023 issue of The Tax Adviser.

In December 2022, the IRS released guidance explaining the procedures for taxpayers to request automatic accounting method changes for specified research or experimental expenses to comply with the 2017 amendments to Section 174 of the Internal Revenue Code. 

This article dissects that guidance, provides a broad overview of the procedures, and highlights potential foot faults.

BDO’s Karen Messner and Lina Ivanova co-author details of the guidance which can be found in their full article in The Tax Adviser