IRS Announces Small Business Relief for Form 3115 (Property Regulation Issue)

The IRS apparently figured out that under a literal reading of the new property/capitalization/depreciation regulations, every business would have to submit a Form 3115. The IRS determined that being buried under a tsunami of paper wasn’t a great idea. Today, the IRS announced in Revenue Procedure 2015-20 that a business which has under $10 million of average sales (for the last three years) or less than $10 million of assets (as of the beginning of their 2014 tax year) can use a simplified method for complying with the new property regulations.

I’ve done a quick read of the new Revenue Procedure. What I suspect we will have to do is attach a statement stating that the taxpayer is an eligible taxpayer under Revenue Procedure 2015-20, and has elected to follow this Revenue Procedure to come into compliance with the regulations. This will be far easier and far more palatable to most of my clients.

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This entry was posted on Friday, February 13th, 2015 at 12:51 pm and is filed under IRS. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.

3 Responses to “IRS Announces Small Business Relief for Form 3115 (Property Regulation Issue)”

  1. Tax Roundup, 2/16/15: Titanic saved! Well, except for the iceberg thing. Or, the regs are dead, long live the repair regs. « Roth & Company, P.C says:
    February 16, 2015 at 6:24 am

    […] Russ Fox, IRS Announces Small Business Relief for Form 3115 (Property Regulation Issue) […]

  2. Daniel C says:
    February 18, 2015 at 12:02 pm

    Right in Rev. Proc. 2015-20 Section 5.01 it says,

    “Accordingly, the taxpayer is permitted to make these changes on its federal tax return for such taxable year without including a separate Form 3115 or separate statement for its applicable trades or businesses.”