We are a Marketing firm using accrual method accounting to record revenue on a completed contract basis. We would like to switch to percentage of completion so we completed a 3115 citing Section 460 as our support. The IRS returned the form saying we can't cite Section 460 since we are not contractors. My questions are 1.) do I even need to complete a 3115 since I'm not switching from accrual to cash method. 2.) If I do, does anyone know what Section of the code should we cite as a professional service firm. Annual sales annual are 25 million plus. Thanks in advance
