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Zaher Fallahi, Tax CPA, IRS Makes it Easier for Small Businesses to Apply Repair Regulations to 2014 and Future Years

posted Feb 13, 2015, 10:01 PM by Zaher Fallahi

WASHINGTON —The IRS today made it easier for small businesses to comply with the final tangible property regulations.

Requested by many small businesses, tax professionals, and the AICPA, the simplified procedure is available effective January 1, 2014. The new procedure permits small businesses to change a method of accounting under the final tangible property regulations prospectively for the first taxable year beginning on or after Jan. 1, 2014.

Also, the IRS is waiving the requirement of filing the Form 3115 for small business taxpayers that choose to use this simplified procedure for 2014. Zaher Fallahi is a Tax CPA

"We are pleased to be able to offer this relief to small business owners and their tax preparers in time for them to take advantage of it on their 2014 return,” said IRS Commissioner John Koskinen. “We carefully reviewed the comments we received and especially appreciate the valuable feedback provided by the professional tax community on this issue.”

The new simplified procedure is generally available to small businesses, including sole proprietors, with assets totaling less than $10 million or average annual gross receipts totaling $10 million or less. Details are in Revenue Procedure 2015-20, posted today on

The revenue procedure also requests comment on whether the $500 safe-harbor threshold should be raised for businesses that choose to deduct, some desire to be $2,500, rather than capitalize, certain capital expenses. 

Zaher Fallahi is a Tax CPA and assists clients with  tax preparation, tax planning, IRS representation, disclosing undeclared foreign bank accounts (offshore voluntary disclosure program, OVDP), report of foreign bank & financial accounts (FBAR, Foreign Account Tax Compliance Act (FATCA), Telephones:  (310) 719-1040 (Los Angeles), ( 714) 546-4272 (Orange County) or e-mail:  [email protected]