“It cannot be put off any longer. We have known about the new repair regulations in one form or another for several years now. We have had proposed and then temporary guidance that we could choose to follow or not follow. Now the guidance is finalized and complete. Tax years beginning on or after Jan. 1, 2014, must comply with the guidance.

For most taxpayers affected by the repair regulations, the tax return for the 2014 year will require the submission of multiple Form 3115s to report changes of accounting methods. Taxpayers must also choose whether to adopt the final regulations or the temporary regulations for the 2012 and 2013 tax years. The IRS has relaxed restrictions on changes of accounting methods to permit these filings in 2014. Filing these changes for the 2015 year may be too late, as these relaxed restrictions will have expired. Taxpayers may also permanently lose tax deductions if the complete Form 3115s are not filed with the 2014 tax return.”

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This article was written by George G. Jones and Mark A. Luscombe for AccountingToday.com and published on 11/01/2014.