IRS Releases Revenue Procedure For Filing Method Changes Under Final Disposition Regulations

The IRS recently issued a revenue procedure (Rev. Proc. 2014-54) that provides taxpayers with rules for filing accounting method changes related to certain provisions of the final regulations regarding dispositions, including partial dispositions, of tangible depreciable property (final disposition regulations). This revenue procedure updates Rev. Proc. 2014-17, which was issued earlier this year for the same purpose. (For more on the final disposition regulations, see Tax Flash 2014-10).

The recent revenue procedure also updates the comprehensive list of automatic method changes in Rev. Proc. 2011-14 by adding or modifying several method changes. In general, the changes in method of accounting relate to asset-grouping rules and disposition rules under the final disposition regulations.