Form 3115

[TaxprepP]

For those with tangle property filing form 3115 to accept the new regualtions with no 481(a) adjutment, I’m still a little confused on checking what under Part II on form 3115. I took the NAPT webinar, "The ABCs of Form 3115". The lecturer instructed to answer all but reading IRS Rev. Proc. 2014-54 under Reduced Filing Requirement for Small Taxpayers, it states “Part II, all lines except lines 11, 13, 14, 15, and 17”. Could use some guidance.

[TXEA]

(4) Reduced filing requirement for qualified small taxpayers.
(a) In general. A qualified small taxpayer, as defined in section 6.01(4)(b) of this revenue procedure, is required to complete only the following information on Form 3115 to make this change:
(a) The identification section of page 1 (above Part I);
(b) The signature section at the bottom of page 1;
(c) Part I;
(d) Part II, all lines except lines 11, 13, 14, 15, and 17;
(e) Part IV, all lines except line 24; and
(f) Schedule E.

Go by the Rev Proc. - you are correct.

[TaxprepP]

Oh, thank you very much. This will make things much easier.

[TaxprepP]

Out of curiosity are you requireing theTP to sign for 3115?

[TXEA]

Taxpayer signs the mailed copy to Utah. The signature form for the e-file is deemed signature for the Form 3115 filed with the return (at least that is my understanding).

[TaxprepP]

Ok. Good to know, thanks.
The firm I work will be handeling the 3115 forms for our clients. Does anyone know if more than one form 3115 can be mailed in the same envelope to Ogden, UT? Or will have to mail each form for each tax return separately?

[TXEA]

I am having the clients send them certified - return receipt. I don't want the liability.

[TaxprepP]

I am having the clients send them certified - return receipt. I don't want the liability.

Do you have a lot of clients that should have forem 3115?

[TaxprepP]

(4) Reduced filing requirement for qualified small taxpayers.
(a) In general. A qualified small taxpayer, as defined in section 6.01(4)(b) of this revenue procedure, is required to complete only the following information on Form 3115 to make this change:
(a) The identification section of page 1 (above Part I);
(b) The signature section at the bottom of page 1;
(c) Part I;
(d) Part II, all lines except lines 11, 13, 14, 15, and 17;
(e) Part IV, all lines except line 24; and
(f) Schedule E.

Go by the Rev Proc. - you are correct.

For Part IV line 25 I I could use a little aid in some verbage best to use. I have many clients that have followed the temporary regualtions and is consistant with the final regualtions, no adjsutment. How best to expalin methodology to determin no 481(a) adjsutment?

[TaxprepP]

Oh, thank you very much. This will make things much easier.

For those using Drake software, in attaching form 3115 as a pdf attachment what "Reference Source" and "Description" are you using?

[dkss]

maybe this?

how about this?

The taxpayer reviewed its prior accounting records through 12-31-13 and determined there were no assets that were incorrectly capitalized under the prior regulations. Conversely, it was determined that there were no materials, supplies, or repairs that were incorrectly expensed that should have been capitalized under the new regulations.

No 481(a) adjustment is required.

[TXEA]

Verbiage to use.......It depends on the change number.

[TaxprepP]

how about this?

The taxpayer reviewed its prior accounting records through 12-31-13 and determined there were no assets that were incorrectly capitalized under the prior regulations. Conversely, it was determined that there were no materials, supplies, or repairs that were incorrectly expensed that should have been capitalized under the new regulations.

No 481(a) adjustment is required.

I like. Sounds much better than what I came up with.
Thanks!

[TaxprepP]

Verbiage to use.......It depends on the change number.

Majority of form 3115 for clients will be Change numbers: 184, 186 and 187.

[TaxGuyBill]

how about this?

The taxpayer reviewed its prior accounting records through 12-31-13 and determined there were no assets that were incorrectly capitalized under the prior regulations. Conversely, it was determined that there were no materials, supplies, or repairs that were incorrectly expensed that should have been capitalized under the new regulations.

No 481(a) adjustment is required.

If you aren't changing anything, why are you filing a 3115?