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Screen 3115 - Change in Accounting Method (1040)
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Form 3115 - General Information
Enter information in this section to complete Form 3115, Page 1.
Unit
The application automatically enters the next available number in this field. You can replace this number, but you can't leave this field blank. The application uses this information to get and coordinate information for the specified activity.
Description
The description entered in this field is used as the unit description. This field is mandatory.
Related activity form & unit #
The application transfers the principal business / agricultural activity code from the related activity for which the change is being requested. The application also transfers the business mailing address from the related activity. The following table lists the available forms and the folders in which they are located.
Folder | Form description |
|---|---|
Business | Schedule C |
Rent | Schedule E, page 1 |
Farm | Schedule F |
Principal business/agricultural activity code number
Enter the principal business activity code of the activity for which the change is being requested. When data is entered in the
Related activity form and unit #
fields in the 3115
screen, the application transfers the principal business/agricultural code from the related activity.Mailing address
Enter
1
in this field to use the primary residence address in the 1040
screen for Form 3115. Enter 2
in this field to use the business address in the C
or Rent
screens for Form 3115. When this field is blank, the application defaults to the primary residence address entered in the 1040
screen.note
When a business address is used, code
C
(Schedule C) or code E
(Schedule E, page 1) will need to be entered, and a unit number will need to be specified, in the Related activity form and unit #
fields.Tax year of change begins and ends
Enter the beginning and ending tax year of change. If these fields are blank, the application defaults to the calendar year.
Telephone number
Enter the telephone number of the contact person. If this field is blank, the application defaults to the daytime phone number entered in the
1040
screen.Name of applicant / SSN
Enter the name of the applicant requesting a change. The application defaults to the name and Social Security number of the filer indicated in
T, S, J
in the 3115
screen.Type of accounting method change being requested
To specify the type of change, enter
D
for depreciation or amortization, F
for financial products and/or financial activities of financial institutions, or O
for other.Specify if other method
If code
O
is entered in Type of accounting method change being requested
, which specifies that the type of accounting method change isn't for depreciation, amortization, or financial products, enter the accounting method in this field. The application enters this method description on Form 3115.Print name / Title of signer
Enter the name and title of the individual who will sign Form 3115. If
Print name
is blank, the application defaults to the name of the filer indicated in T, S, J
in the 3115
screen.Name of preparer
Enter the name of the individual preparing Form 3115. If this field is blank, the application defaults to the preparer name selected in the
File
, then Client Properties
statement.IRS Service Center to file Form 3115 (Force)
The application automatically determines the address to which the Form 3115 copy should be mailed based on the type of accounting change requested. Use this field to change the address.
Taxpayer qualifies for reduced filing requirements
Enter
X
if the taxpayer meets the requirements of a qualifying taxpayer as defined in Revenue Procedure 2018-29. A qualifying taxpayer is required to complete only the following information on Form 3115.- The identification section of page 1 (preceding Part I)
- The signature section at the bottom of page 1
- Part I
- Part II, all lines except lines 13, 15b, 16c, and 17
- Part IV, except line 25
- Schedule E
When you enter
X
in this field, the application prints "Rev. Proc. 2018-29 Reduced Filing for Small Taxpayer" at the top of Form 3115.note
The application doesn't verify whether individual meets the requirements for a qualifying taxpayer.
Information for All Requests
Enter information in this section to complete Form 3115, Part I and II.
Accounting method change numbers
Enter the change number for the accounting method change request. For a more detailed description of the change numbers listed in this fieldview, see the Form 3115 instructions. If the type of change being requested isn't listed in the fieldview, leave this field blank and enter a description in
Description of other type of change and citation of IRS guidance
.Note that the Form 3115 filing instructions will indicate that the form should be filed at the Ogden, UT center instead of the IRS National Office in Washington D.C. when any automatic accounting method change numbers are selected in this field.
DCN from subsequently published guidance
Use this field to indicate DCN codes published in IRS Revenue Procedures subsequent to the final Form 3115 instructions.
Description of other type of change and citation of IRS guidance
If the type of change being requested isn't listed in
Accounting method change number
, use the attached statement to enter the type of change and the revenue procedure or other published guidance under which the accounting method change is being requested. If information is entered in this statement, the application marks the Other
box on Form 3115.Did the applicant cease to engage in travel or business or terminate its existence...
Enter
1
if the tax year of change is the final tax year in the trade or business. Enter 2
if the tax year of change isn't the final tax year in the trade or business. See the Form 3115 instructions for filing requirements in the final tax year of the trade or business.Beginning and ending dates Federal returns under examination
If the applicant has a federal income tax return under examination on the date Form 3115 is filed, enter the beginning and ending dates. The application prints the beginning and ending dates next to Form 3115, line 4a.
Beginning and ending dates requesting to change issue under consideration...
If the method of accounting the applicant is requesting to change is an issue under consideration, indicate the beginning and ending dates for the request. The application prints the beginning and ending dates next to Form 3115, line 4b.
Beginning and ending dates of issue pending for any tax year under examination...
If the method of accounting the applicant is requesting to change is an issue pending for any tax year under examination, indicate the beginning and ending dates of the tax year. The application prints the beginning and ending dates next to Form 3115, line 4c.
Ending date of examination and attach required statement
Enter the ending date of examination if the applicant is filing under the 120-day window. For further information concerning the required statement information for filing under the 90-day window, see section 6.01(2) of Rev. Proc. 97-27 or 6.03(2) of Rev. Proc. 2008-52. For further information concerning the required statement information for filing under the 120-day window, see section 6.01(3) of Rev. Proc. 97-27 or 6.03(3) of Rev. Proc. 2008-52.
Name of examining agent / Telephone number... / Tax year(s)...
Enter the name and telephone number of the examining agent as well as the tax year(s) under examination if the applicant has any federal return(s) under examination.
Copy of form been provided to examining agent
Enter
1
if a copy of Form 3115 was provided to the examining agent identified on line 4f. Enter 2
if a copy of Form 3115 wasn't provided to the examining agent.Is the Federal income tax return before appeals or Federal court?
Enter
1
to mark the Appeals officer
box, 2
to mark the counsel for the government
box, or 3
to mark both boxes on Form 3115. When a code is entered, the application also marks the Yes
box on Form 3115.Name of appeals officer or counsel... / Telephone number / Tax year(s)
Enter the name and telephone number of the appeals officer or counsel for the governments as well as the tax year(s) the return was before appeals and/or federal court.
Copy of form provided to the appeals officer/counsel for the government?
Enter
1
if a copy of Form 3115 was provided to the appeals officer or counsel for the government identified on line 5a. Enter 2
if a copy of Form 3115 wasn't provided to the appeals officer or counsel for the government.Method of accounting requesting to change...
Use the attached statement to enter an explanation if the method the applicant is requesting to change is an issue under consideration by an appeals and/or federal court. If information is entered in this statement, the application marks the
Yes
box on Form 3115.Parent corp's information...
If the applicant is a present or former member of a consolidated group whose return is under examination or before an appeals office and/or federal court, enter the parent corporation's name, identification number, address, and tax year(s) during which the applicant was a member.
Changing from accounting method that is an issue under exam...
Enter
1
if the applicant is an entity treated as a partnership or S Corporation for federal income tax purposes and is requesting a change from a method of accounting that's an issue under consideration in an examination, before appeals, or before a federal court, with respect to a federal income tax return of a partner, member, or shareholder of that entity. Enter 2
if the applicant isn't treated as a partnership or S Corporation for federal income tax purposes.Applicant does not receive audit protection for the requested change
Use the attached statement to explain how the revenue procedure states that the applicant doesn't receive audit protection for the requested change. If information is entered in this statement, the application marks the
Yes
box on Form 3115, Page 2, Part II, Line 8a. If information isn't entered in this statement, the application marks the No
box on that line.If change in accounting method/period in past 5 years...
Use the attached statement to enter the change in accounting method and the year of change. If information is entered in this statement, the application marks the
Yes
box on Form 3115.If application withdrawn, not perfected, or denied...
Enter an explanation in the attached statement if any application was withdrawn, not perfected, or denied; a consent agreement was sent to the taxpayer but wasn't signed and returned to the IRS; or the change wasn't made or not made in the requested year of change.
Name, type of request & specific issue...
Use the attached statement to enter the required information if the applicant has a request pending for a private letter ruling, change in accounting method, or technical advice, and to mark the
Yes
box on Form 3115.Requesting to change overall method of accounting?
Enter
1
if the applicant is requesting to change its overall method of accounting. Enter 2
if the applicant isn't requesting to change its overall method of accounting.