From our friends at the IRS:
Announcement 2008-84 makes necessary modifications to the transition rules of Rev. Proc. 2008-52, which updates the procedures by which taxpayers may obtain automatic consent to change certain methods of accounting.
Announcement 2008-54 will appear in IRB 2008-38. September 22, 2008.
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Does "automatic consent" cover a taxpayer changing his decision to amortize premiums for taxable bonds? If so, how does the procedure work? Has anybody out there done this, and can tell about potential problems?
Background:
On tax returns, I currently amortize the premium for taxable bonds purchased at a premium.
According to IRS publication 550:
"You can change your decision to amortize bond premium only with the written approval of the IRS. To request approval, use Form 3115, Application for Change in Accounting Method."
I?m considering this change in order to simplify my record-keeping.
See page 85 of Rev. Procedure 2008-52 for how you obtain automatic approval to revoke your election to amortize.
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