When the IRS requires a taxpayer to change accounting methods:

a. The taxpayer may be subject to penalties and interest.
b. The taxpayer generally is required to make the change as of the beginning of the earliest open year.
c. The adjustments due to the change cannot be spread over subsequent years.
d. Only a. and b. are correct.
e. a., b., and c. are correct.


e
RATIONALE: These results should be compared to a voluntary change in accounting method. In the case of a voluntary change in accounting method that results in a positive adjustment, a., b., and c. are false.

Business

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What will be an ideal response?

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Indicate whether the statement is true or false

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