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taxmanrog
taxmanrog, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 624
Experience:  Licensed CPA, MA, MST with 31 years' experience. Teach Accounting and Tax courses at Masters level.
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Need help with Form 3115. We are to file Form 3115 automatic

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Need help with Form 3115. We are to file Form 3115 automatic method change for accrued vacation (#134). We have a case awaiting decision from the Appeals office for a different tax issue. Can we still file automatic method change for accrued bonus? I am not clear with question 5a Part II.
Welcome to Just Answers! Thank you for giving me the opportunity to assist you! I will do my best to help!

The Revenue Procedures that are mentioned relate to accounting methods that are being changed for the same issue that is currently in Appeals. The Rev Procs normally provide protection from audit for prior years on the issue being changed. However, if the item being changed is one of the items under Appeals consideration, then this audit protection does not apply.

When completing the Form 3115, Part II, Item 5a, you should check "Yes" and check the Appeals box, and then list the office, phone number and tax years. For Item B, you have to indicate if you have provided the Appeals office with a copy of the Form 3115 or not. Finally, for Item 5c, since you said the Appeals issue is different, you would mark this box as "No".

I hope this answers your questions. If you have any more, please feel free to ask me. If you have found my answer helpful, please rate me highly! I would appreciate it!

Thanks again! Have a great weekend!

Roger
Customer: replied 3 years ago.

Thanks for your answer. Just want to confirm: we can still file Form 3115 for accrued vacation #134 as an automatic method change? (to differentiate from non-automatic change and pay fee).

Yes, you are correct. Accrued Vacation is one of the "automatic methods changes" that are allowed. There are a handful that are currently free. Who knows when the IRS will look at this as a revenue generator. But until they do, this method change is free.

 

Again, if you have any more, please feel free to ask me. If you have found my answer helpful, please rate me highly! I would appreciate it!

Have a great weekend!

Roger

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