We have a small business and are just learning on the new requirement to file Form 3115 to meet the IRS repair and tangible property regulations. It seems as though the rules apply to all businesses? Is this true?

ANSWER

The BIDaWIZ Team's Answer:

Up until this week, generally all businesses needed to file Form 3115. However, the IRS recently issued Revenue Procedure 2015-20 which lessens the requirements for certain companies to file a Form 3115 while adopting the new repair regulations. Under this new procedure, certain small taxpayers have the option of following the new regulations only prospectively, without filing a 3115. Specifically, a small taxpayer is anyone with total assets of less than $10 million as of the beginning of the first tax year that started on or after Jan. 1, 2014, or with average annual gross receipts of $10 million or less over the three prior tax years.

References: Revenue Procedure 2015-20
State: California