As we approach the end of the 2024 calendar year, year-end tax planning is a subject that is undoubtedly garnering attention. Conducting a strategic review of your accounting methods with Andersen could help identify opportunities to implement an accounting method change to either accelerate deductions to decrease income or defer deductions to increase income. Making an accounting method change could also help mitigate the impact of inflation and address recent tax law changes.

Filing an accounting method change also has the benefit of generally providing the taxpayer with audit protection on its prior accounting method, which is effective immediately upon filing Form 3115, Application for Change in Accounting Method. A four-year spread period applies for unfavorable adjustments, while favorable adjustments are taken into account entirely in the year of change.

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