The revisions to the tangible property/repair regulations brought a dark side of Form 3115, at least until the small taxpayer relief in February 2015. But changing other accounting methods using Form 3115 is actually an opportunity for CPAs to assist their clients in planning to reduce tax liabilities. This course explores those opportunities. In January of 2015, the IRS consolidated the guidance on how and when we apply for accounting method changes in Revenue Procedure 2015-13. The companion Revenue Procedure 2015-14 offers detailed instructions on more than 200 “Automatic Changes”. Every CPA who provides tax services to business clients must know how to evaluate accounting methods in order to respond to changing accounting standards and business practices.- CPAs must also recognize opportunities to save the client money or solve problems for clients who have not been using required methods to correct problems more favorably than having the IRS correct the problem on exam.
Course ID: AMTP
ACCOUNTING METHOD AS A TAX PLANNING SERVICE: FILING FORM 3115 TO SAVE TAXES
- ? Evaluate a client’s existing accounting methods ? Prepare timely, complete, and correct Forms 3115 to inform the IRS of one or more accounting method changes for your client’s benefit
? Revenue Procedure 2015-13 – Automatic and non-automatic method of accounting change procedures: required documentation and time for filing Form 3115 ? Revenue Procedure 2015-14 – The new consolidated automatic changes: required documentation and time for filing Form 3115 ? Detailed “How To” for many frequently encountered accounting method changes ? Depreciation and Amortization ? Taxable year of inclusion; advance payments, retainages, financial statement conformity ? Taxable year of deduction; self-insured medical benefits, real property taxes, rebates, ? Liabilities for services and insurance, gift cards issued as refunds for returned goods ? Repairs and costs of acquiring tangible property ? Calculation and timing of Section 481(a) “spread period” adjustment