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1) The accounting method change you described is automatic change #28 per the instructions to Form
2) No 481(a) adjustment would apply under the conversion of a C corporation to an S corporation, since that is not a change in accounting method but simply a change in entity structure. However, the built in gains tax
would apply to effectively tax any appreciated property
inside the C corporation (including unrealized receivables and goodwill) at C corporation tax rates
when sold even once the corporation is converted to an S corporation. The period for built in gains tax does expire after some time depending on the law
at the time of conversion. These built in gains lookback periods have ranged from 5-10 years in recent history, but change frequently based on various tax acts passed by Congress.