SECTION 9. WHAT ARE — Internal Revenue Bulletin 2015-1

CHANGE IN METHOD OF ACCOUNTING FROM THE ASSOCIATE OFFICES? .............................................................40 .01 Automatic and non-automatic change in method of accounting requests...........................................................................40

(1) Automatic change in method of accounting...................................................................................................................40 (2) Non-automatic change in method of accounting............................................................................................................41 .02 Ordinarily only one change in method of accounting on a Form 3115, Application for Change in Accounting

Method, and a separate Form 3115 for each taxpayer and for each separate and distinct trade or business ...................41 .03 Information required with a Form 3115...............................................................................................................................41

(1) Facts and other information requested on Form 3115 and in applicable revenue procedures.....................................41 (2) Statement of contrary authorities ....................................................................................................................................42 (3) Copies of all contracts, agreements, and other documents ............................................................................................42 (4) Analysis of material facts................................................................................................................................................42 (5) Information regarding whether same issue is in an earlier return.................................................................................42 (6) Statement regarding prior requests for a change in method of accounting and other pending requests .....................43 (7) Statement identifying pending legislation.......................................................................................................................43 (8) Authorized representatives...............................................................................................................................................43 (9) Power of attorney and declaration of representative......................................................................................................43 (10) Tax Information Authorization......................................................................................................................................44 (11) Penalties of perjury statement .......................................................................................................................................44 .04 Additional procedural information required in certain circumstances.................................................................................44

(1) Recipients of original and copy of change in method of accounting correspondence .................................................44 (2) To request expedited handling ........................................................................................................................................44 (3) To receive the change in method of accounting letter ruling or any other correspondence

related to Form 3115 by fax ...........................................................................................................................................44 (4) To request a conference...................................................................................................................................................45

Bulletin No. 2015–1 3 January 2, 2015

.05 Addresses to which to send Forms 3115..............................................................................................................................45 .06 A Form 3115 must not be submitted by fax........................................................................................................................47 .07 Docket, Records, and User Fee Branch receives, initially controls, and refers

the Form 3115 to the appropriate Associate office..............................................................................................................47 .08 Additional information ..........................................................................................................................................................47

(1) Reply period.....................................................................................................................................................................47 (2) Request for extension of reply period.............................................................................................................................47 (3) Penalties of perjury statement for additional information..............................................................................................48 (4) Identifying information included in additional information...........................................................................................48 (5) Faxing information request and additional information.................................................................................................48 (6) Address to which to send additional information to an Associate office......................................................................48 (7) Failure to timely submit additional information to an Associate office........................................................................49 .09 Circumstances in which the taxpayer must notify the Associate office..............................................................................50 .10 Determines if proposed method of accounting can be modified to obtain favorable letter ruling ....................................50 .11 Near the completion of processing the Form 3115, advises the taxpayer if the Associate

office will rule adversely and offers the taxpayer the opportunity to withdraw Form 3115 .............................................50 .12 Non-automatic Form 3115 may be withdrawn or Associate office may decline to issue

a change in method of accounting letter ruling ...................................................................................................................50 (1) In general .........................................................................................................................................................................50 (2) Notification of appropriate Service official.....................................................................................................................50 (3) Refund of user fee. ..........................................................................................................................................................51 .13 How to check status of a pending non-automatic Form 3115 ............................................................................................51 .14 Service is not bound by informal opinion............................................................................................................................51 .15 Single letter ruling issued to a taxpayer or consolidated group for qualifying identical change in method of accounting .............51 .16 Letter ruling ordinarily not issued for one of two or more interrelated items or submethods ..........................................51 .17 Consent Agreement ...............................................................................................................................................................51 .18 A copy of the change in method of accounting letter ruling is sent to appropriate Service official.................................52 .19 Consent to change a method of accounting may be relied on subject to limitations.........................................................52 .20 Change in method of accounting letter ruling does not apply to another taxpayer ...........................................................52 .21 Associate office discretion to permit requested change in method of accounting..............................................................52 .22 List of automatic change in method of accounting request procedures..............................................................................52 .23 Other sections of this revenue procedure that are applicable to Form 3115......................................................................54

SECTION 10. HOW ARE CONFERENCES FOR LETTER RULINGS SCHEDULED? ...............................................................................55

.01 Schedules a conference if requested by taxpayer ................................................................................................................55 .02 Permits taxpayer one conference of right.............................................................................................................................56 .03 Disallows verbatim recording of conferences ......................................................................................................................56 .04 Makes tentative recommendations on substantive issues ....................................................................................................56 .05 May offer additional conferences .........................................................................................................................................56 .06 Requires written confirmation of information presented at conference ..............................................................................57 .07 May schedule a pre-submission conference .........................................................................................................................57 .08 May schedule a conference to be held by telephone...........................................................................................................58

SECTION 11. WHAT EFFECT WILL A LETTER RULING HAVE? ..............................................................................................................59

.01 May be relied on subject to limitations................................................................................................................................59 .02 Will not apply to another taxpayer.......................................................................................................................................59 .03 Will be used by a Field office in examining the taxpayer’s return.....................................................................................59 .04 May be revoked or modified if found to be in error or there has been a change in law ..................................................59 .05 Letter ruling revoked or modified based on material change in facts applied retroactively..............................................60 .06 Not otherwise generally revoked or modified retroactively ................................................................................................60 .07 Retroactive effect of revocation or modification applied to a particular transaction .........................................................61 .08 Retroactive effect of revocation or modification applied to a continuing action or series of actions...............................61 .09 Generally not retroactively revoked or modified if related to sale or lease subject to excise tax.....................................61 .10 May be retroactively revoked or modified when transaction is entered into before the issuance of the letter ruling.......................62

January 2, 2015 4 Bulletin No. 2015–1

.11 Taxpayer may request that retroactivity be limited .............................................................................................................62

SECTION 12. UNDER WHAT CIRCUMSTANCES DO DIRECTORS ISSUE DETERMINATION LETTERS? .....................................63

.01 In income and gift tax matters..............................................................................................................................................63 .02 In estate tax matters ..............................................................................................................................................................63 .03 In generation-skipping transfer tax matters..........................................................................................................................63 .04 In employment and excise tax matters .................................................................................................................................63 .05 Requests concerning income, estate, or gift tax returns ......................................................................................................64 .06 Review of determination letters............................................................................................................................................64

SECTION 13. WHAT EFFECT WILL A DETERMINATION LETTER HAVE? ...........................................................................................64

.01 Has same effect as a letter ruling .........................................................................................................................................64 .02 Taxpayer may request that retroactive effect of revocation or modification be limited ....................................................64