9054 / Is a taxpayer required to use the installment method to account for an installment sale?

In situations where the installment method applies, the taxpayer is required to use the installment method unless an election is made to opt out of this treatment. If the taxpayer does not affirmatively elect out, the installment method is the default method of accounting for transactions covered by the installment sale rules (see Q 9051 and Q 9053). The opt-out election must be made on or before the due date for filing the taxpayer’s return for the year. Once the election is made, the taxpayer may only revoke the election with the IRS’ consent.¹

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1. IRC § 453(d).

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