* A taxpayer not currently under examination (or a taxpayer under examination if the shrinkage issue is not an issue under consideration) does receive audit protection for prior years on changing to the retail safe harbor method.
* Unlike prior automatic revenue procedures, the audit protection for prior years is not limited to issues under consideration as of the date of issuance or publication of the revenue procedure, but is based on the date of filing Form 3115.
97-27 provides three methods by which a taxpayer under examination may file a method change -- the 90-day window period, the 120-day window period, and district director consent.(57) The IRS did not adopt the common request to allow taxpayers to file method change requests any time prior to having an issue under consideration since this provision would have resulted in a large number of disputes regarding when an issue came under consideration.
92-20, the new 90-day window allows taxpayers that have been under continuous examination for 12 months as of the beginning of the year of change to request a change in method of accounting for an issue not under consideration or in suspense during the first 90 days of any taxable year.(58) To afford Coordinated Examination Program (CEP), large case, and other taxpayers undergoing extended examinations greater flexibility to file method change requests, the existing 30-day window was expanded to 90 days at the start of the taxable year and the continuous examination requirement was reduced from 18 to 12 months.
under continuous examination additional opportunities to change their methods of accounting voluntarily without significantly increasing the potential for disputes regarding when an issue has come under consideration. Reducing the continuous examination requirement to a period of less than 12 months would have greatly increased the number of taxpayers eligible to utilize this window.
The 120-day window period allows taxpayers to request a method change for issues not under consideration or placed in suspense at the time the request is filed during the 120-day period following the date an examination ends, regardless of whether a subsequent examination has commenced.(59) Although this window period is similar to the 120-day window provided in Rev.
Since this interregnum will provide examination agents additional opportunities to raise issues under consideration, the new provision effectively eliminates taxpayers' ability to utilize the 120-day window.
As the foregoing discussion makes clear, Tax Executives Institute has significant misgivings about many of the proposals under consideration. Although the Institute endorses the process the Subcommittee has employed to afford taxpayers an opportunity to express their views (other than the untimely issuance of the Joint Committee's description), we view most of the proposals should be promptly and soundly rejected.
Two proposals under consideration by the Subcommittee would affect this long-accepted treatment: the first would disallow the cost of compensatory damages under certain environmental laws, and the second would reverse the longstanding deduction for environmental remediation costs by requiring either capitalization of certain costs or capitalization and amortization of certain expenses over uniform periods.
A proposal under consideration by the Subcommittee would require capitalization and amortization of advertising expenses over a period of years.
A proposal under consideration by the Subcommittee would require the IRS to establish an on-line electronic transmission facility to enable payers to obtain access to taxpayer identification numbers (TINs) on a dial-up basis.
A proposal under consideration by the Subcommittee would repeal section 530 of the Revenue Act of 1978 (relating to the classifications of workers as independent contractors) for construction industry workers.
95-19 indicates that an interest capitalization issue is
under consideration if the taxpayer has received written notification, including an information document request, identifying a method or submethod as
under consideration.
Frequently, the rejection letter, which explains the reasons for the rejection, will be accompanied by written or oral suggestions as to how to increase the likelihood of presenting an acceptable offer.(36 )In addition, a detailed narrative of the factors causing the Service to reject the offer can be obtained from the Collection Division.[37] If the client chooses, a new offer can be submitted, as long as no other offers are currently
under consideration.
One year of instruction is required in the "common body of knowledge in business administration." This includes production and marketing of goods and services and the financing of the business and other types of organizations; economic, legal, and ethical environments pertaining to profit and nonprofit organizations; concepts and applications of accounting, quantitative methods, and management information systems, including computers; organization theory, behavior, and interpersonal communication; and a study of administrative processes
under considerations of uncertainty, including integrating analysis and policy determination at the management level.
