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

Line 19. For further details on what is to be included in the

Proc. 2009-39, that prevents audit protection.

attachment, see sections 9.03(1) (facts and other information),

9.03(4) (analysis of material facts), 7.01(8) and 9.03(1)

Line 9. For further details, see section 9.03(6)(a) of Rev. Proc.

(statement of supporting authorities), 9.03(2) (statement of

2010-1, and either section 8.05 of Rev. Proc. 97-27 or sections

contrary authorities), and 9.03(7) (statement identifying pending

4.02(6) and 4.02(7) of Rev. Proc. 2008-52, as applicable. See

legislation) of Rev. Proc. 2010-1.

also section 5.02(2) of Rev. Proc. 2009-39.

Line 20. Attach true copies of all contracts, agreements, and

Line 10. For further details, see section 9.03(6)(b) of Rev.

other documents directly related to the proposed change in

Proc. 2010-1.

method of accounting. See section 9.03(3) of Rev. Proc.

Line 12. A special method of accounting for an item is a

2010-1.

method of accounting, other than the cash method, expressly

Line 21. For further details on what is to be included in the

permitted by the Code, regulations, or guidance published in

attachment, see section 7.01(1)(d) and 9.03(1) of Rev. Proc.

the IRB that deviates from the rules of sections 451 and 461

2010-1.

(and the regulations thereunder) that are applicable to the

taxpayer’s overall method of accounting (proposed over all

Line 23. Taxpayers filing under the advance consent request

method if being changed). For example, the installment method

procedures must pay a user fee for each Form 3115. See

of accounting under section 453 is a special method of

section 15 and Appendix A of Rev. Proc. 2010-1.

accounting. See section 14.01(3)(e) of the Appendix of Rev.

Note: Taxpayers filing under an automatic change request

Proc. 2008-52 for additional examples of special methods.

procedure do not pay a user fee.

Line 13. For each applicant, including each member of a

consolidated group and each eligible CFC filing a single Form

A separate user fee must be paid for each member of an

3115 requesting the identical accounting method change,

affiliated group, for each CFC or 10/50 corporation, and for

attach (i) a schedule describing its trade(s) or business(es) for

each separate and distinct trade or business of a taxpayer

each separate and distinct trade or business, including any

(including a QSub or a single-member LLC) to which the

QSub or single-member LLC, and (ii) the Principal Business

requested advance consent accounting method change applies.

Activity code. For guidance on what is a separate and distinct

If the filer is not requesting an advance consent accounting

trade or business, see Regulations section 1.446-1(d). For each

method change for itself, a user fee for the filer is not required.

trade or business, use the most specific Principal Business

However, the lesser user fee in section (A)(5)(b) of Appendix

Activity code listed in the instructions for the applicant’s federal

A of Rev. Proc. 2010-1 applies in the following situations.

tax return (or the filer’s federal tax return, if applicable).

1. A taxpayer requesting an identical change in method of

Line 14. Insurance companies must also state whether the

accounting on a single Form 3115 for two or more separate and

proposed method of accounting will be used for annual

distinct trades or businesses (for purposes of Regulations

statement accounting purposes.

section 1.446-1(d)), including QSubs or single-member LLCs.

Line 16. For details on requesting and scheduling a

2. A common parent corporation requesting the identical

conference, see sections 9.04(4) and 10 of Rev. Proc. 2010-1.

change in method of accounting on a single Form 3115 on

behalf of two or more members of the consolidated group.

Part III—Information For Advance

3. A common parent requesting the identical change in

method of accounting on a single Form 3115 on behalf of two or

Consent Request

more CFCs that do not engage in a trade or business within the

United States where all controlling U.S. shareholders of the

Advance Consent Request Scope Limitations

CFCs are members of the consolidated group.

An applicant may not use the advance consent request

4. A taxpayer requesting an identical change in method of

procedures if any of the following four scope limitations apply at

accounting on a single Form 3115 on behalf of two or more

the time the Form 3115 would be filed with the IRS National

CFCs that do not engage in a trade or business within the

Office. See Rev. Proc. 97-27, as modified by Rev. Proc.

United States for which the taxpayer is the sole controlling U.S.

2002-19, and Rev. Proc. 2009-39.

shareholder of the CFCs.

1. The change in accounting method is required to be made

See section 15.07(4) of Rev. Proc. 2010-1 for what qualifies

according to a published automatic change procedure, such as

as an identical change in method of accounting.

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

more information, see section 4.02(1) of Rev. Proc. 97-27.

If any of the situations listed above apply, pay the user fee in

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

section (A)(3)(b)(i) or section (A)(4) of Appendix A of Rev. Proc.

section 4.02(2) of Rev. Proc. 97-27, as modified by Rev. Proc.

2010-1, as applicable, for the first member of the consolidated

2002-19, and Rev. Proc. 2009-39.

group, CFC, or separate and distinct trade or business; and the

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

lesser user fee in section (A)(5)(b) of Appendix A for each

consolidated group that is under examination, or before an

additional member of the group, CFC, or separate and distinct

Appeals office, or before a federal court for the tax year(s) the

trade or business. If a filer qualifies for a lesser user fee under

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

section (A)(5)(b) of Appendix A, the filer must submit the

see section 4.02(5) of Rev. Proc. 97-27, as modified by Rev.

additional information required by section 15.07 of Rev. Proc.

Proc. 2009-39.

2010-1.

4. In the case of a partnership or S corporation, the

Filers whose gross income is less than the amounts

accounting method the applicant is requesting to change is an

specified in section (A)(4) in Appendix A of Rev. Proc. 2010-1

issue under consideration in an examination, or by an Appeals

qualify for a reduced user fee. For the definition of gross

office, or before a federal court with respect to a partner,

income, see sections (B)(2), (3), and (4) in Appendix A of Rev.

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

Proc. 2010-1. If the filer qualifies for the reduced user fee under

see section 4.02(6) of Rev. Proc. 97-27, as modified by Rev.

this provision, the filer must attach to the Form 3115 the

Proc. 2009-39.

representation required by section (B)(1) in Appendix A of Rev.

Line 18. If the requested change is covered by an automatic

Proc. 2010-1.

change request procedure, and that procedure applies to the

For information on user fees for tax-exempt organizations,

applicant for the requested year of change, the applicant is not

see Rev. Proc. 2010-8, 2010-1 I.R.B. 234 (or its successor).

eligible to file an advance consent request. If the requested

change is covered by an automatic change request procedure,

The user fee (check or money order payable to the Internal

attach an explanation describing why the applicant is eligible to

Revenue Service) must be attached to any Form 3115 filed

file a request under advance consent request procedures.

under Rev. Proc. 97-27 that is filed with the IRS National Office.

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Instructions For Form 3115 - Application For Change In Accounting Method - Internal Revenue Service - 2009 Page 6

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