When do you file Form 3115? What regulations allow variations between financial and tax reporting? When it comes to accounting methods, questions like these are common among tax professionals. This self-study course provides you with an overview of the various factors considered for the determination of the proper accounting method (such as cash, accrual) and provides detailed examples of court rulings and client examples (for specific industries).
This course covers updates for Tax Cuts and Jobs Act (TCJA) and changes to cash method of accounting rules, as well as considerations for changes in an accounting period of an entity. In addition, the course provides a case study and example tax forms to highlight how to identify which IRS Revenue Procedures are applicable to a given client situation, as well as how and when to prepare the Form 3115.
Format: Voiceover PowerPoint, Audio
▪ Recognize when the use of the cash method is appropriate.
▪ Understand and apply the basic rules for a change in accounting method.
▪ Choose a proper accounting period under the federal tax rules.
▪ Identify which IRS Revenue Procedure(s) provides the guidance for a given scenario for a taxpayer to change their accounting method with the IRS.
▪ Prepare the Federal Form 3115 – Application for Change in Accounting Method and understand how and when this form should be filed by the taxpayer.
▪ What constitutes a method
▪ Cash versus accrual
▪ Automatic changes
▪ Changes needing permission
▪ When and how to change a method
▪ How to account for the change in method
Tax professionals in public accounting and tax professionals within corporate finance or tax departments