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Screen 3115-5 - Change in Long-Term Contracts (1040)

Change in Reporting Income From Long-Term Contracts

Enter information in this section to complete Form 3115, Schedule D, Part I.
Enter a description of the applicant's present and proposed methods for reporting income and expenses from long-term contracts. If the applicant is a construction contractor, include a detailed description of its construction activities.
Enter
1
 if the contracts are long-term contracts as defined by section 460(f)(1). Enter
2
 if the contracts are not long-term contracts as defined by section 460(f)(1).
Enter
1
 if all contracts are long-term contracts defined by section 460(f)(1) and all contracts qualify for the exception under section 460(e). Enter
2
 if the contracts are long-term contracts as defined by section 460(f)(1) but do not qualify for the exception under section 460(e).
Use the attached statement to indicate why the long-term contracts do not qualify for the exception under section 460(e).
Enter
1
 if the applicant is requesting to use the percentage-of-completion method under Regulations section 1.460-4(b). Enter
2
 if the applicant is not requesting to use the percentage-of-completion method.
Enter
1
 if the applicant is requesting to use the exempt-contract percentage-of-completion method under Regulations section 1.460-4(c)(2). Enter
2
 if the applicant is not requesting to use the exempt-contract percentage-of-completion method.
Use the attached statement to indicate what cost comparison will be used to determine a contract's completion factor.
Use the attached statement to indicate what cost comparison will be used and the authority for its use.
Enter
1
 if the applicant has long-term manufacturing contracts as defined in section 460(f)(2). Enter
2
 if the applicant does not have long-term manufacturing contracts as defined in section 460(f)(2).
Use the attached statement to indicate the present and proposed method(s) of accounting for long-term manufacturing contracts.
Use the attached statement to describe the manufacturing activities, including any required installation of manufactured goods.
Enter
1
 if the applicant will be using the cost-to-cost method in Regulation Section 1.460-4(b). Enter
2
 if the applicant will not be using this method.
Enter
1
 if the applicant will be electing the simplified cost-to-cost method and Regulations Section 1.460-5(c). Enter
2
 if the applicant will not be making this election.
Use the attached statement to indicate whether any of the applicant's contracts are either cost-plus long-term contracts or federal long-term contracts.

Change in Valuing Inventories

Enter information in this section to complete Form 3115, Schedule D, Part II.
Enter
1
 if the applicant is subject to section 263A. Enter
2
 if the applicant is not subject to section 263A.
Enter
1
 if the present inventory valuation method is in compliance with section 263A. Enter
2
 if the inventory method is not in compliance with section 263A.
Enter
X
 to indicate whether the inventory method has or has not changed.
Use the statement attached to this field to enter another inventory method.
Enter the value at the end of the tax year preceding the year of change under the present and proposed method.
Use the attached statement to submit a statement of explanation that explains why the applicant is unable to furnish a copy of Form(s) 970. See the form instructions for Schedule D, line 5a for more detailed information on what should be included in the statement.
Use the attached statement to describe whether the applicant is changing to the method required by Regulations Section 1.472-6(a) or (b), or whether the applicant is proposing a different method. Complete this field only for applicants requesting advance consent.
Use the attached statement to enter the statement required by section 22.01(5) of the Appendix of Rev. Proc. 2008-52 (or its successor). Complete this field only for applicants requesting an automatic change.
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