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Screen 3115-3 - Change in Overall Method (1040)

Overview

Use this screen to enter information for a change in overall method of accounting, change to the cash method of accounting, and change in reporting advance payments.

Change in Overall Method of Accounting

Enter information in this section to complete Form 3115, Schedule A, Part I.
Enter the income accrued but not received as of the close of the tax year preceding the year of change. If this field is left blank, the application prints "None" on Form 3115, Page 4, Schedule A, Part I, line 1a.
Enter the income received or reported before it was earned as of the close of the tax year preceding the year of change. If this field is left blank, the application prints "None" on Form 3115, Page 4, Schedule A, Part I, line 1b.
Use the attached statement to enter a description of the income and legal basis for the proposed method.
Enter the expenses accrued but not paid as of the close of the tax year preceding the year of change. If this field is left blank, the application prints "None" on Form 3115, Page 4, Schedule A, Part I, line 1c.
Enter the prepaid expenses previously deducted as of the close of the tax year preceding the year of change. If this field is left blank, the application prints "None" on Form 3115, Page 4, Schedule A, Part I, line 1d.
Enter the supplies on hand previously deducted as of the close of the tax year preceding the year of change. If this field is left blank, the application prints "None" on Form 3115, Page 4, Schedule A, Part I, line 1e.
Enter the inventory on hand previously deducted as of the close of the tax year preceding the year of change. If this field is left blank, the application prints "None" on Form 3115, Page 4, Schedule A, Part I, line 1f.
Enter any other amounts as of the close of the tax year preceding the year of change. If this field is left blank, the application prints "None" on Form 3115, Page 4, Schedule A, Part I, line 1g.
Enter
1
 if the applicant is requesting the recurring item exception under section 461(h)(3). Enter
2
 if the applicant is not requesting the recurring item exception under section 461(h)(3).
Use the attached statement to enter an explanation if the amounts in Part I, lines 1a through 1g do not agree with those shown on both the profit and loss statement and the balance sheet.

Change to the Cash Method

Enter information in this section to complete Form 3115, Schedule A, Part II.
If the applicant is requesting a change to the cash method, enter a description of inventory items and materials and supplies used in carrying out the business.
If the applicant is requesting a change to the cash method, enter an explanation as to whether the applicant is required to use the accrual method under any section of the Internal Revenue Code or regulations.

Change to Deferral Method for Advance Payments

Enter information in this section to complete Form 3115, Schedule B.
Use the attached statement to provide detailed information if the applicant is requesting to change to deferral method described in Rev Proc 2004-34.
Use the attached statement to provide detailed information if the applicant is requesting to change to deferral method described in Rev Proc 2004-34.
Use the attached statement to provide detailed information if the applicant is requesting to change to deferral method described in Rev Proc 2004-34.
Use the attached statement to provide detailed information if the applicant is requesting to change to deferral method described in Regulation 1.451-5(b)(1)(ii).
Use the attached statement to provide detailed information if the applicant is requesting to change to deferral method described in Regulation 1.451-5(b)(1)(ii).
Use the attached statement to provide detailed information if the applicant is requesting to change to deferral method described in Regulation 1.451-5(b)(1)(ii).
Use the attached statement to provide detailed information if the applicant is requesting to change to deferral method described in Regulation 1.451-5(b)(1)(ii).
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