IRS research guidance simplifies rules but has potential traps
In the years since enactment, taxpayers have anxiously awaited further guidance from the IRS about how to file this accounting method change. That guidance finally arrived on December 12 with Rev. Proc. 2023-8.
New procedural guidance
Under the new procedure, adopting new Section 174 rules is done with an automatic accounting method change. Accounting method changes are typically accomplished through filing a Form 3115. However, the IRS is allowing taxpayers to implement this change by attaching a statement to their timely filed tax return for the first year in which R&E amortization is effective, instead of filing a Form 3115.