In our prior communication dated November 18, 2014, we informed you about the tangible property regulations issued by the IRS. The regulations explain when amounts paid to acquire, produce, or improve tangible property can be deducted and when they must be capitalized. Click here to read that newsletter.
On February 13, 2015, the IRS issued a Revenue Procedure that offers significant relief to small business taxpayers from the requirements of filing Form 3115, Application for Change in Accounting Method, to comply with the final tangible property regulations (“TPRs”) and certain asset disposition regulations, which were originally issued in December 2013.
This tax alert covers the qualifications and options that small business taxpayers have when considering relief from the requirements of filing Form 3115.