Filing Form 3115 for Method of Change

Description

This class is designed to introduce the participant to the process and procedures to follow in filing a Form 3115, Application for Change in Accounting Method.

Highlights

LINK AND INSTRUCTIONS TO COME FROM AES TAX ONE DAY PRIOR TO SESSION

Objectives

After completing this course the participant will be able to:

• Discuss filing a Form 3115 for nonautomatic changes, where to file the Form 3115, the due date, and the cost ($13,225 for 2026) (see Rev. Proc. 2015-13).
• Discuss filing a Form 3115 for automatic changes (see Rev. Proc. 2025-23).
• Describe the changes that qualify as automatic changes, where to find the automatic method changes, and who to ask whether client qualifies for an automatic method change.
• Define a positive §481 adjustment.
• Define a negative §481 adjustment.
• Identify the relevance of §446(e), change proper method to proper method.
• Identify the relevance of §446(f), change improper method to proper method.
• Define category A method; Code, Regs, or Supreme Court (no sign, no Form 8275).
• Determine when the treatment of an item becomes a method of accounting or a treatment of a material item.
• Describe the tax effect of the Tax Cuts and Jobs Act on changes in method of accounting, including a number of Revenue Procedures that have been issued in order to comply with changes made in the Tax Cuts and Jobs Act.