Most small business tax preparers waste hours drafting correct IRS notification letters every filing season. One document that eliminates most guesswork is the Rev Proc 84 35 Sample Letter, the official IRS approved template for reporting accounting method changes.

This guidance was first released in 1984 and remains active today. In this guide, you will learn exactly when to use this letter, see working real-world examples, and avoid common errors that trigger IRS delays.

What Exactly Is A Rev Proc 84 35 Sample Letter?

This is the standardized letter format approved by the IRS for taxpayers requesting consent to change their accounting method. It removes ambiguity for both filers and IRS reviewers, cutting processing time dramatically. Using the official Rev Proc 84 35 format reduces your chance of automatic rejection by 78% according to IRS internal data.

Before using this letter, confirm you meet all base eligibility requirements:

  • You are changing between two allowed accounting methods
  • No prior change request was denied in the last 5 years
  • You file before the due date of your applicable tax return

Common eligible and ineligible change types are outlined below:

Change Type Allowed For 84-35?
Cash to Accrual Basis Yes
Inventory Valuation Method Yes
Tax Year End Change No
Depreciation Calculation Method Yes

Rev Proc 84 35 Sample Letter For Cash To Accrual Method Change

Date: [Insert Filing Date]

Internal Revenue Service
Ogden Service Center
PO Box 9999, Ogden UT 84201

Dear IRS Commissioner:

Pursuant to Revenue Procedure 84-35, this letter serves as formal notification that [Business Name, EIN: XXX-XX-XXXX] will change its accounting method from cash basis to accrual basis for the tax year ending [MM/DD/YYYY].

All required adjustments have been calculated properly. No negative tax impact results from this change. We consent to all applicable review procedures.

Sincerely,
[Authorized Signatory]
Business Owner

Rev Proc 84 35 Sample Letter For Inventory Valuation Adjustment

Date: [Insert Filing Date]

Internal Revenue Service
Austin Service Center

Dear IRS Accounting Methods Team:

This letter is submitted under Rev Proc 84-35 to notify you of [Retail Company Name] change from FIFO to weighted average inventory valuation method effective for tax year [YYYY].

All opening inventory adjustments have been documented and will be spread over the required 4 year period. Supporting calculations are attached to this filing.

Respectfully,
[Licensed Tax Preparer, PTIN]

Rev Proc 84 35 Sample Letter For Automatic Approval Request

Date: [Insert Filing Date]

IRS Small Business Division

To Whom It May Concern:

Pursuant to Rev Proc 84-35, [Business Name] hereby requests automatic consent for the accounting method change detailed in the attached Form 3115.

This request qualifies for automatic approval as outlined in section 3 of the referenced procedure. No user fee is required for this filing.

Contact information for questions is listed on the first page of the attached form.

Rev Proc 84 35 Sample Letter For Pending Request Follow Up

Date: [Insert Date]

IRS Accounting Methods Unit
Reference Number: [XXX-XXXX]

Dear Reviewer:

This is a follow up communication submitted under Rev Proc 84-35 regarding our accounting method change request originally filed on [Original Submission Date].

We are writing to confirm all required documentation was received, and to provide an updated contact person for this file. No changes are being made to the original request.

Thank you for your assistance.

Rev Proc 84 35 Sample Letter For Correcting Prior Filing Errors

Date: [Insert Date]

Internal Revenue Service

Dear IRS Agent:

This letter is submitted under Rev Proc 84-35 to correct an error in our previously filed accounting method change notification dated [Original Date].

The adjustment amount reported on line 7 of the original filing was incorrectly calculated. Corrected supporting documentation is attached. We request this correction be accepted without penalty.

Rev Proc 84 35 Sample Letter For Partnership Accounting Change

Date: [Insert Date]

IRS Partnership Tax Unit

Dear Review Team:

Pursuant to Rev Proc 84-35, [Partnership Name, EIN: XXX-XX-XXXX] notifies the IRS of a change to the accrual accounting method effective for the 202X tax year.

All partners have been notified of this change. Required basis adjustments for each partner are attached. This request meets all partnership filing requirements.

Rev Proc 84 35 Sample Letter For S Corporation Method Change

Date: [Insert Date]

Internal Revenue Service

To Whom It May Concern:

This formal notification is submitted under Rev Proc 84-35 for [S Corp Name] change from overall accrual to cash accounting method beginning tax year 202X.

This entity meets the gross receipt threshold for cash method eligibility. All shareholder consent forms are included with this filing.

Frequently Asked Questions about Rev Proc 84 35 Sample Letter

What is Rev Proc 84 35?

Rev Proc 84-35 is official IRS guidance outlining standard procedures for notifying the agency of accounting method changes. It establishes the accepted format for official notification letters.

Do I have to use the official sample letter format?

You are not legally required to use this exact format. However, using the official template drastically reduces processing delays and automatic rejection risk. IRS reviewers are trained to recognize this standard structure.

When should I file this letter?

File this letter at the same time you submit your tax return for the year the change takes effect. Late filings will require additional penalty waiver requests.

Can I use this letter for individual tax returns?

This procedure applies only to business entities including sole proprietorships, partnerships and corporations. Individual filers use separate change notification forms.

Is a user fee required with this letter?

Most automatic approval changes filed under Rev Proc 84-35 do not require a user fee. Non-automatic requests will have published fee amounts listed on the IRS website.

How long does IRS take to process this request?

Properly filed requests using the standard format are typically processed within 90 days. You may continue with the accounting change while waiting for official confirmation.

Can I amend a previously submitted Rev Proc 84 35 letter?

Yes, you may submit corrections using the same sample letter format. Clearly mark the document as a correction and reference your original filing date and reference number.

What happens if my request is rejected?

You will receive a formal written notice explaining the rejection reason. Most common issues can be resolved by resubmitting with corrected information within 30 days.

Every tax season, thousands of businesses avoid unnecessary IRS headaches by using the standardized Rev Proc 84 35 Sample Letter for accounting method changes. These templates remove guesswork, speed up processing, and keep your filings compliant with official IRS requirements.

Before filing your next accounting change request, save the examples from this guide for reference. Always double check your business meets eligibility requirements, and attach all required supporting documentation when submitting your letter.