From the AICPA Special News Update February 10, 2015 – Volume 22 No. 7
"We are reaching out to members to address issues and concerns with the tangible property "repair" regulations. Over the last few weeks, we have heard from an unprecedented number of members with questions, concerns and requests for resources. The two biggest questions we are hearing are: Will the IRS be issuing guidance or relief? What should we do right now?
What is the Status of IRS Guidance or Relief?
We understand that the IRS and Treasury are considering our recommendations to provide relief from the reporting requirements related to the repair regulations. We are hopeful they will release some form of relief for small businesses in the next couple of weeks. We understand that time is of the essence. If any relief is granted or if the IRS releases additional information, we will notify members immediately.
Our advocacy efforts on this issue date back to the release of the proposed regulations. Since that time, the AICPA Tax Executive Committee and the Tax Methods and Periods Technical Resource Panel have continued to provide comments and feedback to Treasury and the IRS to express our concerns about the administrative burdens associated with the regulations and request relief on behalf of members and small businesses. We have asked for the following forms of relief:
• Make Form 3115, as well as the section 481 adjustment, optional.
• Allow for the adoption of a “cut-off method” and apply the rules prospectively.
• Accept a statement in lieu of Form 3115 to acknowledge compliance with the regulations.
• Raise the de minimis safe harbor from $500 to $2,500.
What Should We Do Right Now?
We find ourselves in a challenging predicament. On the one hand, we are hopeful that the IRS will issue relief which would ease the burden for small businesses. On the other hand, there is no guarantee that relief will come in time (if at all). As we move further into tax season, tensions continue to mount as rumors spread regarding what the IRS may or may not provide in terms of guidance, relief, support or ... "
Source: AICPA Special News Update. February 10, 2015 – Volume 22 No. 7. http://www.aicpa.org/publications/newsletters/aicpanewsupdate/pages/20100210-specialnewsupdate.aspx