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Feb 16 2015
IRS Provides Repair Regulation Relief

Posted in addnew

On 02/13/15 the IRS issued Rev. Proc. 2015-20 making it easier for small businesses to comply with the final tangible property regulations.  Under 2015-20 a small business is allowed to change its method of of accounting for certain repairs and maintenance costs without requiring the Taxpayer to file Form 3115 (Change of Accounting Method).  It also allows the small business to apply the change on a prospective basis for 2014 and going forward.  Under the prior rules the business would have been required to calculate the prior year’s cumulative effect of the change and report that amount as a IRC 481(a) adjustment.  Under 2015-20 a small business is one with average annual sales totaling $10 million or less and assets under $10 million.

Last Updated by Admin on 2015-02-16 07:03:25 AM