 Income tax 2021-2022, change an accounting method. Get ready to get refunds to the max diving into income tax 2021-2022. Most of this information can be found in Publication 334, Tax Guide for Small Business Tax Year 2021, looking at the income tax formula line 1, which would be supported by another schedule, basically an income statement, income and expenses. The expenses basically being deduction, the net then flowing in to line 1 of the income tax formula, as well as page 1 of the form 1040, the tax return. We have the schedule C, which would flow in then to the schedule 1, the schedule 1 flowing in then to the first page of the 1040 line number 8. This is the schedule C, the profit and loss for a business, basically an income statement. We're looking now at a change in accounting methods. So in prior presentations, we talked about a cash method, on a cruel method, a combination method. Now we're thinking about what if I need to change the method? What if I marked off the wrong thing? What if I changed my process of accounting in the future? Am I locked into whatever method I put on that first tax return? Because we saw that that was important. It's important to pick out the proper method when you make your first tax return, because if there's a problem with it, can you just change it? Willy to the nilly, willy-nilly? No, you can't. You've got to get permission. You might be able to get permission, but just realize that. So you want to get it right on the first one, and then if you need to get permission, then you've got to ask for it to change it. So changing an accounting method, once you have set up your accounting method, you must generally get IRS approval before you can change the accounting method, change to another accounting method. A change in accounting method includes a change in one, your overall method, such as from cash to an accrual method, and two, your treatment of a material item in it. So to get approval, you must file form 3-1-1-5 application for change in accounting method. You can get IRS approval to change an accounting method under either the automatic change procedures or the advanced consent request procedure. You may have to pay a user fee for more information. See the instructions for form 3-1-1-5. So if you pay them enough money and ask nicely, there might be a fee to it. You've got the schedule that you got to basically have here. Note that under certain circumstances, you would think they would be more likely to accept the change. So for example, if you're moving from a cash method to an accrual method, possibly because you have inventory or something like that, you would think the IRS would approve with that kind of change because typically, that lines up with the thought process of people with inventory and that change. If you're moving from an accrual method and you have inventory to a cash method or something like that, that might be a little bit more difficult of an argument to make as to the rationale from an IRS perspective. So automatic change procedure. Certain taxpayers can presume to have IRS approval to change their method of accounting. So you could just, I presumed, I presume that I have the IRS approval. So these would be methods that would be more kind of like automatic type of things where the IRS, you would think they would give the approval so that you can have the approval assumed. The approval is granted for the tax year for which the taxpayer requested a change, year of change, if the taxpayer complies with the provisions of the automatic change procedure. No user fee is required for an application filed under an automatic change procedure generally covered in Revenue Procedure 2015-13. So you can look that up on the IRS website, 2015-15IRB419, which is available at, you got the IRS website here. If you want to check that out, you could possibly just go to the IRS website and type it in there too, but you got this extension you could take a look at. Generally you must use Form 3-1-1-5 to request an automatic change for more information. You can see instructions for Form 3-1-1-5. So if you're going through this process, good luck, God bless, hope it goes well. Take a look at the instructions that Form 3-1-1-5, and they could find that on the IRS website, hopefully guiding you to success.