When the IRS Requires a Taxpayer to Change Accounting Methods

question 54

Multiple Choice

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.

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Definitions:

FMVSS-121

Federal Motor Vehicle Safety Standards 121, which sets the requirements for air brake systems in heavy-duty vehicles to ensure safety through proper functionality and performance.

System Air Pressure Loss

The decrease in air pressure within a system, often due to leaks or inefficiencies, which can affect system performance.

Tractor-Protection Valve

A safety device in trucks that prevents air loss in the tractor if there's a leak in the trailer, ensuring the tractor's braking system remains functional.