Application For Change In Accounting Method
Rev. Proc. 2011-14 APPENDIX § 15.11(2)(b) authorizes a taxpayer to file a statement in lieu of a Form 3115. Such statement is deemed an application if it satisfies the requirements of § 15.11(2)(b). The Service recognizes that because taxpayers are not required to file a duplicate copy of the application with either the National Office or the Ogden office, some taxpayers may have interpreted the scope requirements of section 4.02(1) of Rev. Proc. 2011-14 as not applying to the new automatic consent provision. As a result, those taxpayers changed their method of accounting under APPENDIX § 15.11 without obtaining Consent of Director.
Generally, a taxpayer under examination and not in either a 90-day or 120-day window, must obtain Consent of Director to be within the scope of the automatic consent procedure. See Rev. Proc. 2011-14, § 6.03. The Director will consent to the filing of an application to change from a clearly permissible method of accounting. Because § 15.11 of the APPENDIX applies only to taxpayers already properly deferring income under Rev. Proc. 2004-34, Consent of Director will be provided in every case where a taxpayer meets the requirements of § 15.11(1).
Since the taxpayer who meets the requirements of APPENDIX § 15.11 will need to obtain “Consent of Director” to implement the change, we are concerned about inefficient use of Exam resources and increased taxpayer burden for taxpayers intending to use the new automatic consent method change while under examination.