Thus, a taxpayer that is making the de minimis safe-harbor election does not file a Form 3115
. Similarly, the small taxpayer safe-harbor election and the book capitalization election are made under the time-and-manner provisions set forth in the regulations and not by fifing a Form 3115
90-63 allows taxpayers until 180 days after the beginning of the third tax year ending on or after December 18, 1990 to file Form 3115
adopting one of the capitalization and amortization methods.
Instead, the taxpayer must generally request IRS consent through filing Form 3115
, Application for Change in Accounting Method, and must apply the change prospectively (although a catch-up adjustment is generally required to ensure that items of income or expense are not duplicated or omitted as a result of the change) (see Sec.
Qualifying taxpayers will file form 3115
according to the automatic-change-in-accounting-method provisions of revenue procedure 99-49.
When full UNICAP compliance is defined as filing a Form 3115
and a section 263A checklist, a number of interesting findings emerge.
2011-14 generally files a Form 3115
, Application for Change in Accounting Method, by the due date (including extensions) of its federal income tax return for the tax year for which the method change is to be effective.
Taxpayers may file form 3115
during the first 90 days of any taxable year (the 90-day window) if the taxpayer has been under examination for at least 12 consecutive months as of the first day of the taxable year and the accounting change is not an issue currently under consideration or in suspense at the time form 3115
This triggered the requirement that the Commissioner's prior consent be obtained by means of the Form 3115
procedure set forth in Treas.
Peco filed its 1998 tax return with Form 3115
, Application for Change in Accounting Method, to which it attached a schedule reflecting the cost-segregation study's adjustments to real property assets originally classified with a 39-year class life, reclassifying them as tangible personal property with a 7-year or 15-year life.
For example, individuals who own rental property and have used an incorrect method to depreciate it or sole proprietors who use an accrual basis to account for inventory need to file Form 3115
, Application for Change in Accounting Method.
Statutory changes such as the uniform capitalization rules require taxpayers to file a separate Form 3115
(Application for Change in Accounting Method) for each corporate affiliate.
As a result of the TRA, Capital One filed a Form 3115
, Application for Change in Accounting Method, with its 1998 tax return to change its method of accounting for other types of credit card fees, but it did not specifically mention late fees in the Form 3115
or include late fees in its Sec.