No, based on your facts, you cannot change your method of accounting (FIFO) for the transaction at issue. If you plan on changing from FIFO to another form of accounting such as LIFO (Last In First Out) for tax purposes, you are required to complete Form 970 Application To Use LIFO Inventory Method, or a statement with all the information required on Form 970 to adopt the LIFO method.
You must file the form (or the statement) with your timely filed tax return for the year in which you first use LIFO.and comply with all requirements listed in the form. You must file the form with the return for the first tax year you plan on using LIFO. Switching to LIFO is irrevocable unless you gain permission from the IRS to switch to another method.
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