IRS Form: Draft Form 3115 Instructions on Change in Accounting Methods (IRC §446)

Draft Instructions to Form 3115, Application for Change in Accounting Method, released October 30 that reflects changes to accounting methods after the 2017 tax act, Pub. L. No. 115-97. Effective for tax years beginning after 2017, small business taxpayers can use the cash method of accounting if they had average annual gross receipts for the three preceding tax years of $25 million or less (up from $5 million). The instructions also take note that qualifying small business taxpayers also are exempt from the following accounting rules: (1) the requirement to keep inventories under tax code Section 471(c) ...