Instructions For Form 3115 (Rev. December 2015) Page 5
ADVERTISEMENT
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23Table B: Schedules to Complete on Form 3115 for Common Accounting Method Changes
Information to be completed for common method change requests
Common Method
Schedule A
Schedule B
Schedule C
Schedule D
Schedule E
Changes
Part I
Part II
Part I
Part II
Part I
Part II
Part III
Accrual to Cash
X
X
Cash to Accrual
X
Capitalize to Expense
Expense to Capitalize
X*
X*
Depreciation
X
Long-Term Contracts
X
X
Inventory Valuation
X
X*
Change
LIFO Change–Including
X
X
Pooling
Change to Deferral
X
Method for Advanced
Payments
X
Must fully complete section
Section need not be completed
X*
To be completed if applicable—See instructions regarding Schedules D and E, later
Generally, an applicant is only eligible to use the automatic
Part I—Information For Automatic
change procedures of Rev. Proc. 2015-13 if it satisfies the
following requirements (see section 5.01(1) of Rev. Proc.
Change Request
2015-13):
1. On the date the applicant files a Form 3115, the change is
Automatic Changes—Scope and Eligibility
described in the List of Automatic Changes;
Rules
2. On the date the applicant files a Form 3115, the applicant
meets all requirements for the change provided in the applicable
Line 1a. Enter the DCN on line 1(a). These numbers may be
section of the List of Automatic Changes;
found in the List of DCNs at the end of the instructions, the List
of Automatic Changes, or in subsequently published guidance.
3. The requested change is not to the principal method
In general, enter a number for only one change. However, the
under Regulations sections 1.381(c)(4)-1(d)(1) or
numbers for two or more changes may be entered on line 1(a) if
1.381(c)(5)-1(d)(1);
specifically permitted in applicable published guidance to file a
4. The requested year of change is not the final year of the
single Form 3115 for particular concurrent changes in method of
trade or business (but see instructions for Line 4);
accounting. See section 6.03(1)(b) of Rev. Proc. 2015-13. For
5. For an overall method of accounting change, the
example, an applicant requesting both a change to deduct repair
applicant has not made or requested an overall method change
and maintenance costs for tangible property (DCN 184) and a
during any of the five tax years ending with the year of change;
change to capitalize acquisition or production costs (DCN 192)
and
may file a single Form 3115 for both changes by including both
6. The applicant has not made or requested a change for
DCNs 184 and 192 on line 1(a) of Form 3115.
the same item during any of the five tax years ending with the
Line 1b. If the accounting method change is not included in the
year of change.
List of Automatic Changes or assigned a number in the
published guidance providing the automatic accounting method
Note. Some automatic changes in methods of accounting waive
change, check the box for line 1(b) and identify the revenue
some of the above requirements. These changes may be found
procedure or other published guidance under which the
in the List of Automatic Changes or the published guidance
automatic accounting method change is being requested.
providing the automatic accounting method change.
Line 2. If yes, check yes and provide an explanation as to why
Line 3. The filer must complete Form 3115, including any
the applicant(s) qualifies to file under the automatic change
required statements or attachments. See Table A earlier, for the
procedures. If no, check no. If other published guidance
Form 3115 Part(s) required to be completed for all automatic
provides for an automatic change in method of accounting not
and non-automatic change requests. See Table B above for a
listed on the List of Automatic Changes, attach a statement
sample of common method changes and the Form 3115
citing the guidance. An example of this would be, a change from
Schedule(s) to be completed for each. Additionally, see
the cash method under Regulations section 1.448-1(h)(2).
published guidance for any additional required information or
-5-
ADVERTISEMENT
0 votes
Related Articles
Related forms
Related Categories
Parent category: Financial