NECPA in NEBRASKA Posted September 10, 2014 Report Share Posted September 10, 2014 I went to a tax seminar today and the instructor and material says that the IRS is expecting almost every return that includes depreciation to have a Form 3115 attached and that if you don't they will be checking to see why it's not attached. I can't imagine how much extra time this is going to take on top of the ACA changes. How are all of you handling these changes? Are you calling your clients and explaining the new rules or sending out letters? I swear, if I were younger, I'd be trying to get out of this field. Thanks! Quote Link to comment Share on other sites More sharing options...
kcjenkins Posted September 10, 2014 Report Share Posted September 10, 2014 This is what often happens with IRS rules. They just keep expanding requirements until enough voters raise enough ruckus with Congress that they get pulled back. Of course, you'll have to charge more, but if you explain it to your clients, perhaps they will be among those raising that ruckus. Quote Link to comment Share on other sites More sharing options...
Jack from Ohio Posted September 10, 2014 Report Share Posted September 10, 2014 I went to a tax seminar today and the instructor and material says that the IRS is expecting almost every return that includes depreciation to have a Form 3115 attached and that if you don't they will be checking to see why it's not attached. I can't imagine how much extra time this is going to take on top of the ACA changes. How are all of you handling these changes? Are you calling your clients and explaining the new rules or sending out letters? I swear, if I were younger, I'd be trying to get out of this field. Thanks!What is the origin of his information? Sounds like someone wanting to appear like he knows more than he truly does. Quote Link to comment Share on other sites More sharing options...
Lee B Posted September 10, 2014 Report Share Posted September 10, 2014 I tend to be leery of the type of presenters that make dire alarmist predictions. As a practical matter the IRS doesn't even have the manpower to even handle something like this. Quote Link to comment Share on other sites More sharing options...
NECPA in NEBRASKA Posted September 11, 2014 Author Report Share Posted September 11, 2014 Did anyone hear anything like this at the IRS seminars? This is the first that I had heard or read anything about the changes requiring so much additional work. The presenter is an ex revenue agent out of Iowa. I will look at what was in their material and post it when I get back to the office. He is always an alarmist, but I really like the other presenters, so I continue to go to the seminars. Quote Link to comment Share on other sites More sharing options...
B. Jani Posted September 11, 2014 Report Share Posted September 11, 2014 I attended New Orleans seminar for 3 days. But did not hear anything about adding 3115 must be attached. Quote Link to comment Share on other sites More sharing options...
Jack from Ohio Posted September 11, 2014 Report Share Posted September 11, 2014 I attended Chicago Forums and heard nothing of the sort. Just paint me skeptical!! 2 Quote Link to comment Share on other sites More sharing options...
jklcpa Posted September 12, 2014 Report Share Posted September 12, 2014 The statement made at the seminar makes no sense. The regs were just finalized in Sept of last year and are applicable to tax years beginning on or after Jan 1, 2014, and optionally in their temporary form to tax years after 2011. Why would every return with depreciation be expected to need a 3115? 1 Quote Link to comment Share on other sites More sharing options...
NECPA in NEBRASKA Posted September 12, 2014 Author Report Share Posted September 12, 2014 I didn't understand it either. I just got back to my office and will drag out the book and see how explained it. Several of us tried to discuss it with him, but then he just said it was time to go on break. It makes me feel better that it wasn't mentioned at the IRS seminars. This is the first one that I have attended this year and I still have Vern Hoven and a few more to go to. I have printed out a lot of emails, etc about the regs, but hearing about the 3115's being required for some reason made no sense. Thanks! Quote Link to comment Share on other sites More sharing options...
SaraEA Posted September 12, 2014 Report Share Posted September 12, 2014 I read the same thing in today's online Journal of Accountancy (or whatever it's called). The issues are things like building components (like when you get a new roof you have to do something on the books with the old one, even if you bought the building with a roof and never separated it for depreciation purposes). The one that will likely affect most business clients is the ability to expense as supplies things that cost up to $500 ($5k if the taxpayer has certified financial statements--only those with gov't contracts are likely to have those). Some of the changes fall under automatic change of accounting methods, others will require the 3115. What confuses me is the difference between the old and new rules. It appears that some of the treatments we always used now have to be elected. How many of us actually depreciated a $50 calculator or $100 coffee pot? And I always added a new roof as a new asset and never touched the value of the original building. One thing that will help a lot is being able to expense "smallwares," like dishes and pots for restaurants, storage containers and baking sheets for bakeries, etc. I think this falls under the automatic elections, but I could be wrong. Let's hope our professional associations have lots of courses available before the upcoming season. Of course, we're already looking for ACA courses to familiarize ourselves with the new forms. This is going to be quite a season! 5 Quote Link to comment Share on other sites More sharing options...
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