Taxpayers in Section 381 Reorganizations Can Change Accounting Method

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Taxpayers engaging in corporate reorganizations or tax-free liquidations under Section 381(a) will be allowed to make an automatic accounting method change for the taxable year of the transaction for the first time, IRS says. IRS announces this policy change in Revenue Procedure 2012-39. Also, the agency provides more time for electricity companies to seek automatic accounting method changes. However, in a third change, IRS says designers of energy-efficient commercial building property that have been allocated deductions under tax code Section 179D generally will not be eligible to apply for an automatic change to their accounting method.

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