Taxpayer received extra time to submit duplicate Forms 3115

Plain-English summary

A corporate parent filed two original Forms 3115 with its consolidated return for an acquired subsidiary and reported the requested accounting method changes. It failed, however, to send the required signed duplicate copies to the separate IRS office. The forms requested changes to the accrual method with deferred advance payments and to capitalization under IRC § 263A. The IRS found that the standards for regulatory-election relief were satisfied and granted 45 days to file duplicate copies identical to the originals. The ruling does not decide whether the changes qualify for automatic consent or whether the proposed methods are proper.

Ruling snapshot

• Question: May the taxpayer receive additional time to file duplicate copies of two Forms 3115?
• Outcome: Approved, with 45 days to file the duplicate forms
• Key authorities: IRC §§ 263A and 446(e); Treas. Reg. §§ 301.9100-1 and 301.9100-3; Rev. Proc. 2015-13

Full text (IRS public release)

Internal Revenue Service Department of the Treasury
Washington, DC 20224

Number: 202519007 Third Party Communication: None
Release Date: 5/9/2025 Date of Communication: Not Applicable
Index Numbers: 9100.10-00, 9100.00-00
Person To Contact:
--------------------------- ------------------, ID No. 5525366
---------------------------- Telephone Number:
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Refer Reply To:
CC:ITA:6
------------------------------------------ PLR-114662-24
Date:
February 12, 2025

Legend

Taxpayer = ----------------------
-----------------------

CPA = ------------------------------

Applicant = ---------------------------------------
-----------------------

Date A = -------------------------

Date B = --------------------------

Year A = ------------------------------------------------------

Date C = -----------------------

Dear -------------:

This ruling responds to a letter that was submitted by Taxpayer’s representative, CPA.
CPA has asked that the Commissioner of the Internal Revenue Service give Taxpayer
an extension of time pursuant to §§ 301.9100-1 and 301.9100-3 of the Procedure and
Administration Regulations to file the duplicate copy of two Forms 3115, Application for
Change in Accounting Method. This request is being made by Taxpayer on behalf of
Applicant

                                                   FACTS

CPA and Taxpayer represents the following facts:
PLR-114662-24 2

Taxpayer is a C corporation that incorporated on Date A. Taxpayer files a consolidated
federal income tax return on a calendar-year basis.

On Date B, Taxpayer acquired Applicant. Applicant, as a subsidiary of Taxpayer, was
included in Taxpayer’s consolidated federal income tax return for Year A.

Taxpayer engaged CPA to prepare two Forms 3115 on behalf of Applicant. In the first
Form 3115, Taxpayer was requesting permission for Applicant to change from the cash
receipts and disbursements method of accounting to an accrual method of accounting
and to also defer advance payments. In the second Form 3115, Taxpayer was
requesting permission for Applicant to capitalize costs under § 263A of the Internal
Revenue Code.

After preparing both Forms 3115, CPA informed Taxpayer that copies of both forms
should be signed and dated by an officer of Taxpayer prior to faxing or mailing them to
the appropriate office of the Internal Revenue Service. CPA also informed Taxpayer
that it needed to complete these acts “ahead of the deadline” for the filing of Taxpayer’s
Year A’s tax return. Taxpayer did not complete these acts.

On Date C, Taxpayer filed its consolidated federal income tax return for Year A. The
original Forms 3115 for Applicant were attached to this return, and the return reflected
the desired two accounting changes.

Later, Taxpayer discovered that it had failed to mail the duplicate copies of the Forms
3115 to the appropriate Service location. See section 6.01(1)(a)(i)(B) of Rev. Proc.
2015-13, 2015-5 I.R.B. 419. CPA later submitted this request for an extension of time
to file the duplicate copies of the Forms 3115.

                             RULING REQUESTED

Taxpayer requests an extension of time pursuant to §§ 301.9100-1 and 301.9100-3 to
file the duplicate copies of the Forms 3115 required by Rev. Proc. 2015-13 in order to:

1. Change Applicant’s method of accounting to an accrual method of accounting
   and defer advance payments, and

2. Change Applicant’s method of accounting under § 263A.

                             LAW AND ANALYSIS
   

Rev. Proc. 2015-13 provides the procedures by which a taxpayer may obtain automatic
consent to change certain accounting methods. A taxpayer complying with all the
applicable provisions of this revenue procedure has obtained the consent of the
Commissioner to change its method of accounting under § 446(e) and the Income Tax
Regulations thereunder.
PLR-114662-24 3

Section 6.03(1)(a)(i) of Rev. Proc. 2015-13 provides that a taxpayer changing an
accounting method pursuant to Rev. Proc. 2015-13 must complete and file a Form 3115
in duplicate. The original must be attached to the taxpayer’s timely filed (including any
extensions) original federal income tax return for the year of change, and a copy (with
signature) of the Form 3115 must be filed with the appropriate office of the Internal
Revenue Service no earlier than the first day of the year of change and no later than
when the original is filed with the federal income tax return for the year of change.

Section 301.9100-1(c) provides that the Commissioner has discretion to grant a
reasonable extension of time under rules in §§ 301.9100-2 and 301.9100-3 to make
certain regulatory elections.

Sections 301.9100-1 through 301.9100-3 provide the standard the Commissioner will
use to determine whether to grant an extension of time to make an election.
§ 301.9100-2 provides automatic extensions of time for making certain elections.
§ 301.9100-3 provides extensions of time for making elections that do not meet the
requirements of § 301.9100-2.

Section 301.9100-3(a) provides that requests for relief subject to § 301.9100-3 will be
granted when the taxpayer provides evidence to establish to the satisfaction of the
Commissioner that the taxpayer acted reasonably and in good faith and that the
granting of relief will not prejudice the interests of the Government.

                                 CONCLUSION

Based solely on the representations submitted, this office concludes that the
requirements of §§ 301.9100-1 and 301.9100-3 have been satisfied in this case.
Accordingly, Taxpayer is granted 45 calendar days from the date of this letter to file the
required duplicate copies of the Forms 3115 (identical to the original copies already filed
with the Service) changing:

1. Applicant’s method of accounting to an accrual method of accounting and defer
   advance payments, and

2. Applicant’s method of accounting under § 263A

With the appropriate Service location. Please attach a copy of this letter ruling to each
duplicate copy.

Except as expressly set forth above, this office neither expresses nor implies any
opinion concerning the tax consequences of the facts described above under any other
provision of the Code or regulations. Specifically, we have no opinion, either expressed
or implied, concerning whether the accounting method changes Taxpayer has tried to
make on behalf of Applicant are eligible to be made under the automatic consent
PLR-114662-24 4

procedures of Rev. Proc. 2015-13 or whether Taxpayer otherwise meets the
requirements of Rev. Proc. 2015-13 to make accounting method changes using Rev.
Proc. 2015-13. Further, we express no opinion regarding the propriety of either of
Applicant’s proposed methods of accounting.

The ruling contained in this letter ruling is based upon facts and representations
submitted by CPA or Taxpayer, with accompanying penalties of perjury statements
executed by appropriate parties. While this office has not verified any of the material
submitted in support of this request for an extension of time to file the required Forms
3115, all material is subject to verification on examination.

This ruling is directed only to Taxpayer and Applicant. Section 6110(k)(3) provides that
it may not be used or cited as precedent.

In accordance with the power of attorney on file with our office, we will send a copy of
this letter to each of Taxpayer’s authorized representatives.

                                             Sincerely,



                                             Cheryl L. Oseekey
                                             Senior Counsel, Branch 6
                                             Office of Associate Chief Counsel
                                             (Income Tax & Accounting)

cc:

ATTN: -------------------

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ATTN: -----------------------