HAND OFF THE ACCOUNTING METHOD WITHOUT LOSING THE YEAR-END CUTOFF
EINForeigner — private preparation worksheet — November 4, 2026
https://einforeigner.com/llc-accounting-method-handoff/

Start with the filed returns and prior workpapers. Then reconcile the timing of the same transaction across invoices, bank records and returns. Do not switch treatment merely because a new bookkeeping program defaults to cash.

Keep this sheet and sensitive identifiers in your own secure records. Do not send them to this site. This is not an IRS form, filing or authorization.

WORKSHEET
For each field, attach the named evidence or mark UNKNOWN; do not fill a gap from memory.

1. Taxpayer and period
What to record: Entity/owner return involved, tax year, classification evidence and preparer contact kept privately.
Your record: ____________________
Evidence file/reference and date: ____________________
Open question: ____________________

2. Method evidence
What to record: First/latest filed return, relevant schedules, workpapers, method by material item and any change documentation.
Your record: ____________________
Evidence file/reference and date: ____________________
Open question: ____________________

3. Open item
What to record: Invoice ID, amount, performance/invoice/availability/payment dates and supporting files.
Your record: ____________________
Evidence file/reference and date: ____________________
Open question: ____________________

4. Prior/current bridge
What to record: Prior-year book amount, prior-year return amount, current proposal and potential duplication/omission.
Your record: ____________________
Evidence file/reference and date: ____________________
Open question: ____________________

5. Reviewer resolution
What to record: Question, applicable rule, conclusion and source; preserve unresolved items before changing software settings.
Your record: ____________________
Evidence file/reference and date: ____________________
Open question: ____________________

WORKED REFERENCE — FICTIONAL, NOT YOUR RECORD
New software says cash
A bookkeeper imports January deposits into a cash dashboard after an accrual year.
Preserve the import and reconcile opening receivables; do not call the software toggle an approved tax-method change.

COMPLETION CHECK
The handoff is ready when each open cutoff item links to prior-year treatment and a specific unresolved question or supported resolution. It is a continuity record, not a method election or Form 3115 filing.

SOURCES
IRS Publication 538: accounting periods, methods and changes
https://www.irs.gov/publications/p538
IRS 5472 instructions: scope, foreign-owned U.S. DEs, related parties and records
https://www.irs.gov/instructions/i5472