Accounting Methods & Periods: Including Form 3115 - Tax Staff Essentials

Overview

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My client changed accounting methods - now what?

This course will answer that question and more. When do you file Form 3115, Application for Change in Accounting Method? What regulations allow variations between financial and tax reporting? When it comes to accounting methods, questions like these are common among tax professionals.

Learn about various factors in determining proper accounting methods, with detailed examples of court rulings and client examples for specific industries. Learn about updates due to the Tax Cuts and Jobs Act (TCJA), changes to the cash method of accounting rules, and issues related to changes in an accounting period of an entity.

A case study and example tax forms highlight how to identify which IRS revenue procedures are applicable to a given client situation, as well as how and when to prepare Form 3115.

Highlights

Key Topics

• 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

Prerequisites

Experience in taxation

Designed For

Who Will Benefit

• Tax professionals in public accounting
• Tax professionals within corporate finance or tax departments

Objectives

Learning Outcomes

• 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 procedures provide the guidance for a given scenario for a taxpayer to change his or her accounting method with the IRS.
• Prepare Form 3115, Application for Change in Accounting Method, and recognize how and when this form should be filed by the taxpayer.