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TPR Update: Small Businesses Need Not File Forms 3115

Last Friday the 13th was one to remember at Perkins & Co! After months of gearing up to prepare Forms 3115 for nearly all of our business clients, we learned Friday that the IRS is no longer requiring small businesses to file them to comply with the new tangible property regulations (TPRs). Around here, this is the kind of news that gets people running up and down hallways cheering and heading to the beer keg for a celebratory toast.

The simplified procedures, which were announced in Revenue Procedure 2015-20, apply to business with less than $10M in assets or less than $10M in average annual gross receipts. And, the simplified procedures don’t allow for retroactive adoption of the rules for years before 2014. So, we will still be filing some 3115s – but only the ones that will have a meaningful impact on our clients. We can live with that!

This blog post is a summary and is not intended as tax or legal advice. You should consult with your tax advisor to obtain specific advice with respect to your fact pattern.