The Financial Accounting Standards Board and International Accounting Standards Board adopted new financial accounting standards for revenue recognition, commonly called ASC 606. The IRS subsequently issued Rev. Proc. 2018-29, allowing taxpayers to change their method of accounting to conform to ASC 606. The IRS recently published Rev. Proc. 2018-49, which revises the effective date of Rev. Proc. 2018-29.
Taxpayers that have adopted ASC 606 for revenue recognition financial accounting purposes, including early adopters, should review their methods of accounting in light of the changes under ASC 606. Taxpayers may change certain methods of accounting to conform to ASC 606 using the automatic procedures.