Form 3115 Change in Accounting Method: Navigating the IRS Repair Regulations

The IRS repair regulations continue to present a number of challenges for tax professionals. While the regulations provided a safe harbor in 2014 that allowed corporations to follow a simplified set of procedures that did not require a change in accounting method, many taxpayers who elected not to file a Form 3115 for tax year 2014 may elect to do so for the 2015 tax year to take advantage of a favorable IRC Section 481(a) adjustment.

Rev. Proc. 2015-20 appears to have left open the possibility of claiming benefits under the tangible property regulations that accrued prior to 2014. As a result, taxpayers who did not elect a change of accounting method last year may wish to consider whether they should do so for 2015 to take advantage of safe harbors and other changes.

Listen as our experienced panel of expert practitioners reviews the Form 3115 Change in Accounting Method after the relief guidance, details the mechanics and calculations of completing the form, and outlines the practical considerations for making, or foregoing, an accounting method change. Additionally, our panel will address considerations surrounding the implementation and application of the repair regulations to taxpayer’s 2015 tax returns.

1. Discussion of repair regulations and requirement to file Form 3115
2. Completing Form 3115 Change in Accounting Method and required calculations
3. Implementation of Change in Accounting Method regs and Rev. Proc. 2015-20 relief from Form 3115 requirements

The panel will review these and other key issues:

• Why do the repair regulations require a change in accounting method?
• What calculations and disclosures are required with the preparation of a Form 3115?
• What are the ramifications of the relief regulations in Rev. Proc. 2015-20?
• What strategies and best practices should corporate tax professionals implement to handle Form 3115 questions?

Learning Objectives

Upon completing this webinar, you will be able to:

• Identify when filing Form 3115 is mandatory.
• Determine what a taxpayer seeking a change in accounting method must do.
• Establish when the small business exception to filing Form 3115 applies.
• Recognize the list of automatic accounting changes and when they apply under Rev. Proc. 2015-14.
• Determine how the taxpayer is treated when making an election to capitalize repair and maintenance costs.

• Field of Study: Taxes
• Level of Knowledge: Intermediate
• Advance Preparation: None
• Teaching Method: Seminar/Lecture
• Delivery Method: Group-Internet (via computer)
• Attendance Monitoring Method: Attendance is monitored electronically via a participant's PIN and through a series of attendance verification prompts displayed throughout the program
• Prerequisite:

  Three years+ corporate or firm accounting experience at a mid-level preparing complex tax forms and schedules. Supervising other preparers/accountants. Knowledge and understanding of accounting methods and the filing requirements for Form 3115, Change in Accounting Method. Some familiarity with the 2015 repair regulations, Form 3115 calculations, IRC 481 adjustments, safe harbors and required accounting method changes. 

Strafford Publications, Inc. is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of Accountancy have final authority on the acceptance of individual courses for CPE Credits. Complaints regarding registered sponsons may be submitted to NASBA through its website: www.nasbaregistry.org.

IRS Approved Provider

Strafford is an IRS-approved continuing education provider offering certified courses for Enrolled Agents (EA) and Tax Return Preparers (RTRP).