IRS Publication 334 — Tax Guide for Small Business (Schedule C)
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“Appeals. If you don’t agree with the examiner’s proposed changes, you can appeal to the IRS Independent Office of Appeals. Most differences can be settled without expen- sive and time -consuming court trials.”
Once you have set up your accounting method, you must generally get IRS approval before you can change to another method. A change in your accounting method includes a change in:
1. Your overall method, such as from cash to an accrual method; and
2. Your treatment of any material item.
To request approval, you must file Form 3115. You can get IRS approval to change an accounting method under either the automatic change procedures or the advance consent request procedures. You may have to pay a user fee. For more information, see the Instructions for Form 3115.
Automatic change procedures. Certain taxpayers can presume to have IRS approval to change their method of accounting. The approval is granted for the tax year for which the taxpayer requests a change (year of change), if the taxpayer complies with the provisions of the automatic change procedures. No user fee is required for an application filed under an automatic change procedure generally covered in Revenue Procedure 2025 -23, available at IRS.gov/irb/2025-24_IRB#REV-PROC-2025-23 (or its successor).
Generally, you must use Form 3115 to request an automatic change. For more information, see the Instructions for Form 3115. 3.
Dispositions of Business Property
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