Looking for a Form 3115 Templates? Download it for free!

of the filer that is included on Form 2848. For further details on

shareholders is under examination for a taxable year(s) in

the fax procedures, see section 9.04(3) of Rev. Proc. 2010-1.

which it was a U.S. shareholder of the CFC or 10/50

corporation, except as provided in section 4.02(1) of Rev. Proc.

Type of Accounting Method Change

2008-52, as modified by Rev. Proc. 2009-39.

2. The applicant is (or was formerly) a member of a

Requested

consolidated group that is under examination for a tax year(s)

the applicant was a member of the group. For more information,

Check the appropriate box described below indicating the type

see section 4.02(2) of Rev. Proc. 2008-52.

of change being requested.

•

3. The applicant is an entity treated as a partnership or S

Depreciation or amortization. Check this box for a change

corporation and the accounting method to be changed is an

in the (a) computation of depreciation or amortization (for

issue under consideration in an examination with respect to a

example, the depreciation method or recovery period), (b)

partner, member, or shareholder of the applicant. For more

treatment of salvage proceeds or costs of removal, (c) method

information, see section 4.02(3) of Rev. Proc. 2008-52.

of accounting for retirements of depreciable property, or (d)

4. The applicant engages in a transaction to which section

treatment of depreciable property from a single asset account to

381(a) applies within the proposed tax year of change. For

a multiple asset account (pooling), or vice versa.

•

more information, including exceptions to this limitation, see

Financial products and/or financial activities of financial

section 4.02(4) of Rev. Proc. 2008-52, as modified by Rev.

institutions. Check this box for a change in the treatment of a

Proc. 2009-39.

financial product (for example, accounting for debt instruments,

5. The applicant is in the final tax year of its trade or

derivatives, mark-to-market accounting, etc.), or in the financial

business as described in sections 4.02(5) and 5.04(3)(c) of

activities of a financial institution (for example, a lending

Rev. Proc. 2008-52.

institution, a regulated investment company, a real estate

6. The applicant made or applied to make a change in

investment trust, a real estate mortgage investment conduit,

method of accounting for the same item (or for its overall

etc.).

•

method) within the last 5 tax years, including the year of

Other. For advance consent requests, check this box if

change. For more information, see section 4.02(6) and 4.02(7)

neither of the above boxes applies to the requested change. In

of Rev. Proc. 2008-52.

the space provided, enter a short description of the change and

the most specific applicable Code section(s) for the requested

Line 1. Enter the designated automatic accounting method

change (for example, change within section 263A costs;

change number on line 1(a). These numbers may be found in

deduction of warranty expenses, section 461; change to the

the List of Automatic Accounting Method Changes beginning on

completed contract method for long-term contracts, section 460;

page 9, or in subsequently published guidance. In general,

etc.). For automatic change requests, this informational

enter a number for only one change. However, the numbers for

requirement is satisfied by properly completing Part I, line 1 of

two or more changes may be entered on line 1(a) if specifically

Form 3115.

permitted in applicable published guidance. See section

6.02(1)(b) of Rev. Proc. 2008-52, as clarified by Rev. Proc.

You must follow the instructions below to correctly

2009-39.

complete Form 3115.

CAUTION

If the accounting method change is not included in the List of

•

Applicants requesting a change in method of accounting

Automatic Accounting Method Changes or assigned a number

using the automatic change request procedures must complete

in the published guidance providing the automatic accounting

Parts I, II, and IV.

method change, check the box for line 1(b) and identify the

•

Applicants requesting a change in method of accounting

revenue procedure or other published guidance under which

using the advance consent request procedures must complete

the accounting method change is being requested.

Parts II, III, and IV.

Line 2. Review the applicable accounting method change

•

All applicants must complete Schedules A, B, C, D, and E, as

section in the Appendix of Rev. Proc. 2008-52, or the

applicable, for the requested change in method of accounting.

procedures in other published guidance, if applicable, to

•

If more room is needed to respond to any line, attach a

determine whether the scope limitations of section 4.02 of Rev.

schedule providing the applicable information and label it with

Proc. 2008-52, apply to the specific change in accounting

the line number.

method requested. In general, the scope limitations of section

•

Attachments submitted with Form 3115 must show the filer’s

4.02 of Rev. Proc. 2008-52 apply to the requested change

name and identification number. Also, indicate that the

unless the Appendix of Rev. Proc. 2008-52 or other applicable

information is an attachment to Form 3115.

published guidance specifically states that one or more scope

•

Report amounts in U.S. dollars, translated, if necessary,

limitation(s) do not apply to the requested change.

from functional currency with a statement of exchange rates

If any of the scope limitations apply to the requested change

used.

in method of accounting and apply to the applicant, automatic

consent is not available to the applicant for the requested

accounting method change. However, the applicant may be

Part I—Information For Automatic

eligible to request its change under the advance consent

Change Request

request procedures. See Part III — Information For Advance

Consent Request on page 6 of these instructions to determine if

Automatic Change Request Scope Limitations

these procedures apply to the applicant.

An applicant is not eligible to use the automatic change request

Part II—Information For All Requests

procedures of Rev. Proc. 2008-52 (either in the Appendix or

included by reference in other published guidance) if any of the

Line 3. Ordinarily, the IRS will not consent to a request for a

following six scope limitations (section 4.02 of Rev. Proc.

change in method of accounting for the applicant’s final tax

2008-52) apply to the applicant at the time the copy of the Form

year. If the applicant ceases to engage in the trade or business

3115 would be filed with the IRS National Office, unless the

to which desired change in accounting method relates or

applicable section of the Appendix of Rev. Proc. 2008-52 or

terminates its existence in the year of change, the applicant is

other published guidance states that the particular scope

not eligible to make the change under automatic change

limitation does not apply to the applicant’s requested change.

request procedures unless the applicable section of the

1. The applicant is under examination, except as provided in

APPENDIX of Rev. Proc. 2008-52 or other applicable published

section 4.02(1) of Rev. Proc. 2008-52, as modified by Rev.

guidance states that section 4.02(5) of Rev. Proc. 2008-52 does

Proc. 2009-39. If the applicant is a CFC or 10/50 corporation

not apply to the requested change in method of accounting. If

that is not required to file a federal income tax return, the

the change is requested under the advance consent

applicant is under examination if any of its controlling domestic

procedures, the IRS National Office will consider the reasons

-4-

Instructions For Form 3115 - Application For Change In Accounting Method - Internal Revenue Service - 2009 Page 4

Related Articles

Related forms

Related Categories