The Internal Revenue Service today made it easier for small
business owners to comply with the final tangible property regulations.
Requested by many small businesses and tax professionals,
the simplified procedure is available beginning with the 2014 return taxpayers
are filling out this tax season. The new procedure allows small businesses to
change a method of accounting under the final tangible property regulations on
a prospective basis for the first taxable year beginning on or after Jan. 1,
Also, the IRS is waiving the requirement to complete and
file a Form
3115 for small business taxpayers that choose to use this simplified
procedure for 2014.
The new simplified procedure is generally available to small
businesses, including sole proprietors, with assets totaling less than $10
million or average annual gross receipts totaling $10 million or less. Details
are in Revenue Procedure 2015-20, posted today on IRS.gov.
The revenue procedure also requests comment on whether the
$500 safe-harbor threshold should be raised for businesses that choose to
deduct, rather than capitalize, certain capital expenses.