On July 15th, The IRS posted onto its website an early released draft of Form 3115, Application for Change in Accounting Method. Form 3115 is used for accounting method changes, including complying with the Tangible Property Regulations ("TPRs") as well as making depreciation adjustments resulting from Cost Segregation studies. The current version of Form 3115 was last revised in 2009.
The changes to the draft Form 3115 are subtle. For example, the draft form better allows taxpayers to list multiple designated automatic accounting method change numbers ("DCN"s). This is helpful when filing concurrent accounting method changes under the TPRs, where taxpayers now can list several DCNs on a single Form 3115.
While the draft form cannot be used for filing purposes until finalized, it does indicate that a new form is forthcoming. Fortunately for taxpayers making changes under the Tangible Property Regulations, the IRS stated on a recent webinar that the current form can be used throughout the 2014 tax year. Thus, taxpayers do not need to rush to file Form 3115s for 2014 Tangible Property Regulation changes over concerns that the 2009 form will be superseded.
Find out if filing a Form 3115 will benefit you under the Tangible Property Repair Regulations