Methods of Accounting. (1) Except as provided in section 3.09(2) of this revenue procedure, the Service will not enter into a PFA for issues relating to a change in method of accounting. In applying the law to the facts, or establishing the facts, a change in the overall plan of accounting for gross income or deductions from the treatment of such items in prior taxable years, or a change in the treatment of any item that involves the proper time for the inclusion of an item or the taking of an item as a deduction from the treatment of such item in prior taxable years generally may be a change in method of accounting. A PFA may not be used to change a taxpayer’s method of accounting.
(2) If the Service has issued a letter ruling granting consent to a change in method of accounting under Rev. Proc. 97-27, or its successor, a taxpayer may request and the Service may enter into a PFA with respect to the approved change in method of accounting. In such case, a PFA may include determinations described in section 11 of Rev. Proc. 97-27 or a similar provision of its successor. Thus, for example, a taxpayer may request and the Service may enter into a PFA with respect to the amount of the section 481(a) adjustment and the implementation of the change in method of accounting in accordance with the terms and conditions of the consent agreement and Rev. Proc. 97-27. A PFA under this provision may only apply to the taxable year of change and may not apply to any other taxable years, except that a determination of the amount of the section 481(a) adjustment under section 11.01(2) of Rev. Proc. 97-27, or a successor, shall apply to any other taxable year for which such amount is taken into account (i.e, any spread period). A PFA under this provision may not be entered into with respect to a change in method of accounting requested pursuant to automatic consent procedures, such as Rev. Proc. 2002-9.
Methods of Accounting. (a) The Company shall cause to be prepared with respect to each Fiscal Year financial statements based on GAAP.
(b) In addition, the Company shall maintain such records and accounts as are necessary to compute (i) the Profit or Loss of the Company (and individual items of income, gain, deduction and loss for Capital Account purposes) and the Capital Accounts of the Members and (ii) the taxable income or loss of the Company (and individual items of income, gain, deduction and loss for tax purposes).
Methods of Accounting. All income tax and financial reports and returns of the Company shall be prepared on an accounting basis approved by the Managers. All elections with respect to tax matters to be made by or for the Company shall be made by the Tax Matters Member.
Methods of Accounting. (1) A PFA may not be used to obtain consent to change a taxpayer's method of accounting. Section 3.09(2) of this revenue procedure provides when the Service may enter into a PFA for issues relating to a change in method of accounting. Section 3.09(3) of this revenue procedure provides what change in accounting method issues may be addressed in a PFA. A change in method of accounting generally includes a change in an overall plan of accounting or a change in the treatment of any material item, which is any item that involves the proper time for the inclusion of the item in income or the taking of the item as a deduction, or both. See Rev. Proc. 2015-13, section 2.
(2) When a change in method of accounting issue may be eligible for a
(a) If the Service has issued a letter ruling granting consent to make a non-automatic change under Rev. Proc. 2015-13, or its predecessor or successor, a taxpayer may request and the Service may enter into a PFA with respect to the approved change in method of accounting.
(b) If a taxpayer has timely filed the required copy of Form 3115 to request an automatic change under section 6.03(1)(a)(i)(B), 6.03(1)(a)(ii), or 6.03(1)(a)(iii) of Rev. Proc. 2015-13, or its predecessors or successors, the taxpayer may request, and the Service may enter into, a PFA with respect to the requested change in method of accounting.
(3) What change in accounting method issues may be addressed in a PFA.
(a) A PFA may include determinations described in section 12 of Rev. Proc. 2015-13 or a similar provision of its predecessor or successor. Thus, for example, a taxpayer may request and the Service may enter into a PFA with respect to the amount of the section 481(a) adjustment and the implementation of the change in method of accounting in accordance with all the applicable provisions for the change in method of accounting.
(b) A PFA under this provision may only apply to the taxable year of change and may not apply to any other taxable years, except that a determination of the amount of the section 481(a) adjustment under section 7.02 of Rev. Proc. 2015-13, or a similar provision of its predecessor or successor, shall apply to any other taxable year for which such amount is taken into account (i.e., any spread period).
Methods of Accounting. Notwithstanding anything herein to the contrary, SpinCo shall not make or cause to be made a change in method of accounting for U.S. federal, state, local or non-U.S. tax purposes with respect to a Pre-Distribution Tax Period or a Straddle Period without the prior written consent of RemainCo (not to be unreasonably withheld, conditioned or delayed) other than with respect to Taxes reflected (or to be reflected) exclusively on a SpinCo Separate Tax Return.
Methods of Accounting. All financial reports of the Company shall be prepared in accordance with GAAP consistently applied. All elections with respect to tax matters to be made by or for the Company shall be made by the TMM.
Methods of Accounting. 24 6.3 Accountants.................................................................. 24 6.4
Methods of Accounting. (a) The Company shall cause to be --------------------- prepared with respect to each Fiscal Year financial statements based on GAAP (the "GAAP Financial Statements"). To the extent that any Owner shall require ------------------------- that the GAAP Financial Statements be reconciled to such Owner's system of accounts, the same shall be at such Owner's sole cost and expense.
(b) In addition, the Company shall maintain such records and accounts as are necessary to compute (i) the Net Profit or Net Loss of the Company (and individual items of income, gain, deduction and loss for Capital Account purposes) and the Capital Accounts of the Owners and (ii) the taxable income or loss of the Company (and individual items of income, gain, deduction and loss for tax purposes).
Methods of Accounting. The Partnership will utilize such method or methods of accounting as the General Partner shall determine. The General Partner shall have the right to make all elections required or permitted to be made for federal income tax purposes, including the elections under Code Sections 754 and 263(c).
Methods of Accounting. The LMSB PFA’s application of the law to the taxpayer’s facts may result in treating an item differently from earlier treatments of similar items in prior taxable years (e.g., deducting items that previously were capitalized, such as certain ISO 9000 costs). If so, the differing treatment may constitute a change in the method of accounting for that item. The LMSB PFA will resolve only the factual characterization of the items at issue for the taxable year(s) to which the LMSB PFA relates, but will not constitute the Commissioner’s consent to make any accounting method change that may be required to conform the agreed upon factual characterization of the item with identical items in earlier years. Permission to make any accounting method changes required by the LMSB PFA’s resolution of the factual and legal issues must be obtained using the applicable administrative procedures. See Rev. Proc. 99-49, 1999-2 C.B. 725 (automatic consent to change certain accounting methods); Rev. Proc. 97-27, 1997-1 C.B. 680.
