IRS Form 3115 and Small Business Owners
By Barry G. Fowler, EA on 2015-01-14
Are you wondering what IRS Form 3115 is and how it is used for your small business?
You will probably have to file IRS Form 3115 on your 2014 return to comply with the new, retroactive repair and improvement regulations that became effective for 2014. In 2014, the Treasury Department expects every taxpayer who owns, leases, or produces property to file a Form 3115 to comply with its new mandatory repair regulations.
Form 3115 allows you to make current year (2014) expensing and capitalization adjustments for actions taken in the prior year that were not in compliance with the final regulations. Failure to do so can have serious repercussions if your expenses and depreciation are challenged in an audit.
If you have prepared your own return in the past and are unfamiliar with the new 200-page repair and improvement regulations, it may be appropriate for you to seek professional assistance in preparing your 2014 return. With over 150 accounting method changes on this form, Form 3115 is not easy or short.
Obviously, this would not be the year to rely on do-it-yourself software or big-box part-time preparers. Call on Taxation Solutions, Inc. instead, and our team will help you avoid tax problems down the road.