Part I—Information for Automatic — 1222 Inst 3115 (PDF)

Automatic Changes—Scope and Eligibility Rules

Line 1a. Enter the DCN on line 1a. These numbers may be found in the List of DCNs at the end of the instructions, the List of Automatic Changes, or in subsequently published guidance. In general, enter a number for only one change. However, the numbers for two or more changes may be entered on line 1a if specifically permitted in applicable published guidance to file a single Form 3115 for particular concurrent accounting method changes. See section 6.03(1)(b) of Rev. Proc. 2015-13. For example, an applicant requesting both a change to deduct repair and maintenance costs for tangible property (DCN 184) and a

Table B: Schedules To Complete on Form 3115 for Common Accounting Method Changes

Information to be completed for common method change requests

Common Method Changes	Schedule A		Schedule B	Schedule C		Schedule D			Schedule E
	Part I	Part II		Part I	Part II	Part I	Part II	Part III
Accrual to Cash	X	X
Cash to Accrual	X		X**
Capitalize to Expense
Expense to Capitalize								X*	X*
Depreciation									X
Long-Term Contracts						X		X
Inventory Valuation Change							X	X*
LIFO Change—Including Pooling				X	X
Revenue Recognition Change for Deferral Method for Advance Payments, Cost Offset Methods, and/or Applicable Financial Statement Income Inclusion Rule			X

X Must fully complete section

Section does not need to be completed.

X* To be completed if applicable—See instructions regarding Schedules D and E, later

X** To be completed if applicable—See instructions regarding Schedule B, later.

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change to capitalize acquisition or production costs (DCN 192) may file a single Form 3115 for both changes by including both DCNs 184 and 192 on line 1a of Form 3115.

Line 1b. If the accounting method change is not included in the List of Automatic Changes or assigned a number in the published guidance providing the automatic accounting method change, check the box for “Other” on line 1b and identify the revenue procedure or other published guidance under which the automatic accounting method change is being requested.

Line 2. If “Yes,” provide an explanation as to why the applicant(s) qualifies to file under the automatic change procedures. If other published guidance provides for an automatic accounting method change not listed in the List of Automatic Changes, attach a statement citing the guidance. For example, for an applicant electing out of certain exemptions from securities dealer status to the mark-to-market method under section 475, attach a statement citing Rev. Proc. 97-43. If the eligibility rules otherwise restrict the applicant from requesting the change under the automatic change procedures, but such rules are waived for the requested change, then check “No.”

Certain automatic method change requests require