Form 3115, Application for Change in Accounting Method, is not supported by the program. If you're required to file Form 3115, you'll need to complete and submit it separately according to IRS instructions.
Form 3115 is used when a taxpayer wants to change an accounting method for themselves, a business, or another eligible entity. According to the IRS, an applicant may be an individual, business entity, or a separate and distinct trade or business whose accounting method is being changed.
Common examples of accounting method changes include:
- Changing from the cash method to the accrual method
- Changing how certain expenses are deducted
- Changing inventory accounting methods
- Making certain depreciation-related accounting changes
Who Is Required to File Form 3115?
You may need to file Form 3115 if you're requesting a change in the accounting method used for:
- A sole proprietorship
- A partnership
- A corporation
- An S corporation
- An LLC
- A trust or estate
- A separate and distinct trade or business
The taxpayer whose accounting method is being changed is generally responsible for filing the form.
Consolidated Groups and Related Entities
If a consolidated group of corporations files a consolidated tax return, the parent corporation is generally responsible for filing Form 3115 on behalf of itself and any affected members of the group.
Under certain circumstances, the IRS allows multiple entities to include identical accounting method changes on a single Form 3115.
These may include:
- Members of a consolidated group.
- Separate and distinct trades or businesses of the same entity or consolidated group member, including:
- Qualified Subchapter S Subsidiaries (QSubs)
- Single-member LLCs
- Partnerships wholly owned within a consolidated group.
- Certain controlled foreign corporations (CFCs) and 10/50 corporations that meet IRS ownership requirements.
The accounting method change must qualify as an identical change under IRS guidance before multiple entities can be included on one form. For information on what is an identical change in method of accounting, see section 15.07(4) of Rev. Proc. 2019-1.
How Do I File Form 3115?
The filing process depends on whether the accounting method change qualifies as an automatic or non-automatic change request.
Automatic Change Requests
For most automatic accounting method changes, the IRS generally requires that you:
- Attach the original Form 3115 to your timely filed federal income tax return, including extensions, for the year of change.
- Submit a signed copy of Form 3115 to the IRS separately.
The original copy attached to the tax return generally does not need to be signed.
The copy submitted to the IRS must generally be filed no earlier than the first day of the year of change and no later than the date the original Form 3115 is filed with the return.
Non-Automatic Change Requests
Certain accounting method changes require advance IRS approval. For non-automatic requests, Form 3115 is generally filed during the tax year for which the change is requested, unless other IRS guidance provides different filing instructions.
Because these requests require IRS review, taxpayers are encouraged to file as early as possible during the year of change.
IRS Acknowledgment of Non-Automatic Requests
The IRS generally sends an acknowledgment after receiving a properly filed non-automatic Form 3115 request.
If you do not receive an acknowledgment within approximately 60 days, you may contact the IRS to inquire about the status of your request.
IRS Inquiry Address for Non-Automatic Requests
Internal Revenue Service
Control Clerk
CC:IT&A, Room 4512
1111 Constitution Ave. NW
Washington, DC 20224
Control Clerk
CC:IT&A, Room 4512
1111 Constitution Ave. NW
Washington, DC 20224
Where Do I File Form 3115?
The filing address depends on:
- Whether the request is automatic or non-automatic
- Whether the form is mailed through the U.S. Postal Service or a private delivery service
Because IRS filing addresses may change, always refer to the most recent IRS Instructions for Form 3115 before filing.
Address Chart for Form 3115
| A non-automatic change request |
An automatic change request (Form 3115 copy) |
|
| Delivery by mail | Internal Revenue Service Attn: CC:PA:LPD:DRU P.O. Box 7604 Benjamin Franklin Station Washington, DC 20044 |
Internal Revenue Service Ogden, UT 84201 M/S 6111 |
| Delivery by private delivery service | Internal Revenue Service Attn: CC:PA:LPD:DRU Room 5336 1111 Constitution Ave. NW Washington, DC 20224 |
Internal Revenue Service 1973 N. Rulon White Blvd. Ogden, UT 84201 Attn: M/S 6111 |