Intangibles capitalization.

• Author: Laffie, Lesli S.
• Position: FROM THE IRS

Rev. Proc. 2005-17, which modifies Rev. Proc. 2005-9, waives the five-year prior-change scope limit for taxpayers seeking automatic consent to change an accounting method for the costs of acquiring or creating intangible assets.

Rev. Proc. 2005-9 detailed steps taxpayers could take to obtain automatic consent to change accounting methods for capitalizing intangible assets during their second tax year ending after Dec. 30, 2003. However, it did not waive scope limits contained in Rev. Proc. 2002-9, including the five-year prior-change scope limit.

Rev. Proc. 2005-17 modifies Rev. Proc. 2005-9 so that the five-year prior-change scope limit contained in Rev...