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T Corporation publishes an annual business directory. During 20x0 T solicits orders for its 20x1 directory, which will be published and distributed in February of 20x1. In November of 20x0, T bills its customers. The bills are due in 30 days. T, using the accrual method of accounting, takes the income into account in 20x0. T's VP of Marketing believes she can increase sales if T Corp billed its customers in the year the directory is published, rather than in the prior year. T's President agrees and the billing procedure is changed. Thus, T will not recognize the income from the 20x2 edition until 20x2.
Problem 1: Is this a change in method of accounting that requires advance permission from the I.R.S.?
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