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Zaher Fallahi, Tax CPA; IRS permits small business taxpayers to make changes in accounting methods with Section481 (a) without filing the Form 3115

posted Feb 15, 2015, 8:42 AM by Zaher Fallahi

Issue Number:    RP-2015-20

Revenue Procedure 2015-20 permits small business taxpayers to make certain tangible property changes in methods of accounting with a § 481(a) adjustment that takes into account only amounts paid or incurred, and dispositions, in taxable years beginning on or after January 1, 2014.  In addition, for their first taxable year that begins on or after January 1, 2014, small business taxpayers are permitted to make certain tangible property changes without filing a Form 3115.  The revenue procedure also requests comments on whether it is appropriate to increase the de minimis safe harbor limit provided in § 1.263(a)-1(f)(1)(ii)(D) for a taxpayer without an applicable financial statement (AFS) to an amount greater than $500, and, if so, what amount should be used and the justification for considering that amount appropriate.

Revenue Procedure 2015-20 will be in IRB 2015-09, dated Mar. 2, 2015.

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]