Form 3115

[TXEA]

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?

If there is not 481a adjustment, then there is no need for an explanation. How do explain the calculation of nothing unless you have both positive and negative adjustments that net to -0-.?

I know inserting a statement that there is no 481a adjustment makes us feel better, but it is really not necessary.

[TXEA]

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

yes, too many for me to worry about the mailing.....The client can take some responsibility.

[TaxprepP]

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

According to what I have read, to accept the new regulations requires the filing of form 3115 because it is considered a change in accounting method. A taxpayer seeking to change to a method of accounting permitted in the final regulations must secure the IRS’s consent before implementing that new method

[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?

[TaxprepP]

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

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

[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!

[TXEA]

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

[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.

[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?

[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]

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?

[TXEA]

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

[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]

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]

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