IRS updates automatic approval procedures for accounting-period changes.

Tax Adviser, The, January, 2007 by Herndon, Diane

In Rev. Proc. 2006-45, the Service updated its automatic consent procedures for certain eligible corporations to change their annual accounting periods. The procedure clarifies, modifies, amplifies and supersedes Rev. Proc. 2002-37, and is generally effective for accounting-period changes for which the first effective year ends after Oct. 17, 2006.

Overview

Rev. Proc. 2006-45 makes several changes to Rev. Proc. 2002-37, addressing eligibility, terms and conditions, and filing requirements. In dealing with eligibility for automatic consent, it includes the following changes:

* A passthrough entity (as well as a controlled foreign corporation (CFC)) that does not have a required tax year, is disregarded solely for purposes of determining...

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