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Federal input screens

Screen 3115-2 - Automatic Change & Sec 481(a) (1040)

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Overview

Use this screen to complete Form 3115, Application for Change in Accounting Method.

Information For All Requests (continued)

Enter information in this section to complete Form 3115, Part II.
Additional information about change
Enter any additional information needed per Revenue Procedure 2014-16 in this statement. The application prints this information with Form 3115, Part II, line 12.
Item being changed / Present method... / Proposed method...
If the applicant isn't changing the overall method of accounting, enter a description of the item being changed and the present and proposed methods being changed. If the applicant is changing the overall method, but one or more items are changing to a special method, enter the information for those items.
Present overall method of accounting
Enter
Accrual
,
Cash
, or
Hybrid
 to designate the method of accounting currently being used.
Description of trade(s) or business(es) and principal business activity code...
Use the attached statement to enter a detailed description of the applicant's trade(s) or business(es), and the principal business activity code for each. See the instructions for line 13 if the applicant has more than one trade or business as defined in Regulations Section 1.446-1(d).
Will the proposed method of accounting be used...
Enter
1
 if the proposed method of accounting will be used for the applicant's books, records, and financial statements. Enter
2
 if the proposed method of accounting won't be used for the applicant's books, records, and financial statements.
If no, provide explanation
If
No
 is entered in
Will the proposed method of accounting be used for taxpayer's books and records?
, enter a description in the attached statement explaining why the proposed method of accounting won't be used for the taxpayer's books and records. When this field is completed, the application marks the
No
 box on Form 3115.
Request conference of right at IRS National Office
Enter
X
 if the applicant requests a conference of right with the IRS National Office if the IRS proposes an adverse response. For more information refer to sections 9.04(4) and 10 of Rev. Proc. 2010-1.
Gross receipts for tax years preceding year of change
If the applicant is changing to or from the cash method, or is changing the method of accounting under sections 263A, 448, 460, or 471, enter the year and gross receipts for each of the three tax years preceding the year of change.

Information For Non-Automatic Change Request

Enter information in this section to complete Form 3115, Part III.
Is the requested change described in a revenue procedure...
Enter
1
 if the requested change is described in any revenue procedure, revenue ruling, notice, regulation, or other published guidance as an automatic change request. Enter
2
 if the requested change isn't described as an automatic change request in any authoritative source.
If yes, explain why submitting request...
Use the attached statement to describe why the applicant is submitting a request under advance consent procedures.
Reasons for the proposed change
Use the attached statement to enter the applicant's reasons for the proposed change.
User fee
Enter the user fee in this field if filing under the advance consent request.
Information if qualifying for reduced user fee
Use the attached statement to enter the necessary information or certification required by Rev. Proc. 2010-1 to support the applicant's qualifications for a reduced user fee.

Section 481(a) Adjustment

Use this section to complete Form 3115, Part IV.
Procedures for change requested require use of cutoff method
Enter
X
 if the procedures for the accounting method change being requested require the use of the cut-off method.
Net Section 481(a) adjustment for year of change
Enter the calculated net section 481(a) adjustment for the year of change. If
X
 is entered for cut-off method, the adjustment amount won't transfer to Form 3115.
Computation and methodology of Section 481(a) adjustment
Use the attached statement to enter a summary of the calculation and an explanation of the methodology used to determine the section 481(a) adjustment. If the calculation is based on more than one component, show the calculation for each component.
Elect to take Section 481(a) adjustment into account in year of change
Enter
X
 if the section 481(a) adjustment is an increase to income of less than $25,000 ($50,000 if following Rev. Proc 2015-13) and the applicant elects to take the entire amount of the adjustment into account in the year of change.
Any part of adjustment between members of an affiliated group
Use the attached statement to enter an explanation if any part of the section 481(a) adjustment is attributable to transactions between members of an affiliated group. When information is entered in this statement, the application marks the
Yes
 box on Form 3115.

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