3115 Tax Form For Change in Accounting Method:
View Sample Form 3115 Filled Out
Also known as Application for Change in Accounting Method, IRS Form 3115 is required for any taxpayer that changes their accounting method or makes or revokes certain late elections.
Who Needs to Submit Form 3115?
Any taxpayer filing changes in their accounting methods will need to submit Form 3115. This includes both large and small businesses, regardless of size or industry. Individuals, corporations, partnerships, exempt organizations, and S corps need to submit the form.
When and Where To File Tax Form 3115
For automatic change requests:
Attach the original Form 3115 to the filer’s timely filed federal income tax return for the year of change. This includes extensions. The original Form 3115 attachment does not need to be signed, according to the IRS.
Mail or fax a copy of the signed Form 3115 to IRS Ogden Service Center no earlier than the first day of the year of change and no later than the date the original is filed with the federal income tax return for the year of change. The form can be a photocopy.
For non-automatic change requests:
Under the non-automatic method change procedures, you must mail Form 3115 to the IRS National Office during the tax year for which the change is requested. The IRS recommends filing as early as possible during the year of the accounting method change, in order to provide them with adequate time for a response.
Do You Attach Form 3115 To a Tax Return?
For automatic method changes, the IRS requires Form 3115 to be attached to the filer’s timely filed federal income tax return for the year of change. This includes extensions. For non-automatic method changes, the IRS Consent Agreement for the change must be attached to the federal income tax return.
What To Include on Form 3115
Completing this form can be very complicated, as it requires significant amounts of detailed information and detailed calculations. Aside from your personal name and business name, address, and contact details, it will also ask for:
Tax year information
Type of accounting method change requested
Legal justification for the change in many situations
The purpose of the supporting information is to show any section 481(a) adjustment taken into account as part of the change as well as other information that establishes the taxpayer’s eligibility to make the change in accounting method.
Depending on whether you are filing for an automatic change request or a non-automatic change request will determine the exact information you need to provide.
Form 3115 Example:
IRS Form 3115 Example of Completion
Below is a completed Form 3115 example.
How Source Advisors Can Help with your 3115 Tax Form
For services Source Advisors provides, such as cost segregation, LIFO, UNICAP, and 179D, our team of tax professionals can help you by preparing Form 3115. Specifically, we can help with:
Determining if you should file an automatic change request or non-automatic change request
Assisting your CPA or other tax return preparer with filing Form 3115
Correcting depreciation methods
Changing inventory methods
Determining if Form 3115 should be filed
Assisting with additional matters related to the form