Updated October 16, 2026. Quick answer: Form 3115 is the Application for Change in Accounting Method. The instructions say to file it to request a change in either an overall accounting method or the accounting treatment of any item. An eligible change must go under the automatic procedures, with the original attached to a timely filed return and a signed copy sent to the IRS National Office; other changes use the non-automatic procedures during the year of change and require a user fee.
What Form 3115 is for
The form’s title is “Application for Change in Accounting Method”. The instructions give the purpose in one sentence: “File Form 3115 to request a change in either an overall accounting method or the accounting treatment of any item.”
Before filing, the instructions require a check of current guidance: “When filing Form 3115, you must determine if the IRS has issued any new published guidance”. “Rev. Proc. 2015-13 provides procedures for both automatic and non-automatic accounting method changes.” For the broader picture of choosing a business structure and how income is taxed, see the LLC decision page.
Key numbers at a glance
The dollar amount and the day counts that matter most are collected here.
| Item | As printed |
|---|---|
| Small positive adjustment | “An applicant may elect a 1-year section 481(a) adjustment period for a positive section 481(a) adjustment that is less than $50,000.” |
| Acknowledgment | “The IRS normally sends an acknowledgment of receipt within 60 days after receiving a Form 3115 filed under the non-automatic change procedures.” |
| No acknowledgment | “If the filer does not receive an acknowledgment of receipt for a non-automatic change request within 60 days, the filer can inquire to:” |
Automatic versus non-automatic changes
The two procedures differ on eligibility, fee and result. The instructions describe each:
| Point | Automatic change | Non-automatic change |
|---|---|---|
| Procedure for eligible changes | “Unless otherwise provided in published guidance, you must file under the automatic change procedures if you are eligible to request consent to make an accounting method change under the automatic change procedures for the requested year of change.” | “Non-automatic change procedures. If you do not qualify to file under the automatic change procedures for the requested accounting method change for the requested year of change, you may be able to file under the non-automatic change procedures.” |
| User fee | “No user fee is required for a Form 3115 filed under the automatic change procedures.” | “A user fee is required.” |
| Result | “An applicant that timely files and complies with the automatic change procedures is granted consent to change its accounting method, subject to review by the IRS National Office and operating division director.” | “If the requested change is approved by the IRS National Office, the filer will receive a letter ruling on the requested change.” |
A non-automatic request has a bar when an automatic procedure exists. “The change in accounting method is required to be made according to a published automatic change procedure, such as Rev. Proc. 2022-14.” is listed among the eligibility limitations that stop a filer from using the non-automatic route. Under that route, “File a separate Form 3115 for each unrelated item or submethod that is being changed.”
Who must file
The instructions separate the filer from the applicant. “The filer is the entity or person required to file Form 3115, whether on its own behalf or on behalf of another entity.” “An applicant is an entity, a person, or a separate and distinct trade or business of an entity or a person (for purposes of Regulations section 1.446-1(d)), whose accounting method is being changed.”
One form per applicant is the default. “Generally, a filer must file a separate Form 3115 for each applicant seeking consent to change an accounting method.” “For a consolidated group of corporations, the common parent corporation must file Form 3115 for an accounting method change for itself and for any member of the consolidated group.”
A small owner with a single-member LLC is covered by the same rule: a separate form is needed for “each separate trade or business of an applicant, including a qualified subchapter S subsidiary (QSub) or a single-member limited liability company (LLC)”. The instructions then say that identical accounting method changes for entities with a common sponsor, members of a consolidated group, or separate and distinct trades or businesses may be included in a single Form 3115. Rental owners using an LLC can compare the setup on the rental property LLC page.
When and where to file
For an automatic change the form goes to two places. “Except if instructed differently, you must file Form 3115 under the automatic change procedures in duplicate as follows.”
“Attach the original Form 3115 to the filer’s timely filed (including extensions) federal income tax return for the year of change.” “The original Form 3115 attachment does not need to be signed.”
“File a copy of the signed Form 3115 (duplicate copy) with the IRS National Office” “no earlier than the first day of the year of change and no later than the date the original is filed with the federal income tax return for the year of change.” “The IRS does not send acknowledgements of receipt for automatic change requests.”
A non-automatic request runs on a different clock. “You must file Form 3115 under the non-automatic change procedures during the tax year for which the change is requested, unless otherwise provided by published guidance.” “File Form 3115 as early as possible during the year of change to provide adequate time for the IRS to respond prior to the due date of the filer’s return for the year of change.” “The IRS normally sends an acknowledgment of receipt within 60 days after receiving a Form 3115 filed under the non-automatic change procedures.”
The instructions print an address chart for the mail, private delivery and fax options, which should be read from the form’s own revision rather than copied from a web page. For a missed date: “In general, a filer that fails to timely file a Form 3115 will not be granted an extension of time to file except in unusual and compelling circumstances.” “However, an automatic 6-month extension from the due date (excluding any extension) of the federal income tax return to file Form 3115 may be available for automatic change requests.”
The section 481(a) adjustment
Part IV covers the adjustment. “Ordinarily, an adjustment under section 481(a) is required for accounting method changes.” “The section 481(a) adjustment period is generally 1 tax year (year of change) for a negative section 481(a) adjustment and 4 tax years (year of change and next 3 tax years) for a positive section 481(a) adjustment.”
Examination changes the positive period: “when an applicant is under examination, the section 481(a) adjustment period is 2 tax years (year of change and next tax year) for a positive section 481(a) adjustment”, with listed exceptions. A short election exists for small amounts: “An applicant may elect a 1-year section 481(a) adjustment period for a positive section 481(a) adjustment that is less than $50,000.”
Some changes have no adjustment at all. “Under a cut-off basis, only the items arising on or after the beginning of the year of change are accounted for under the new method of accounting.” “Any items arising before the year of change continue to be accounted for under the applicant’s former accounting method.”
A special rule applies to an eligible terminated S corporation, meaning a C corporation that was an S corporation on December 21, 2017, revoked its S election after December 21, 2017 but before December 22, 2019, and has the same owners of stock in identical proportions on December 22, 2017 and on the revocation date: “must take into account the resulting positive or negative section 481(a) adjustment ratably during the 6-year period beginning with the year of change.” The election itself is on the late S corporation election page.
Signatures and the preparer
The signature depends on who the filer is:
| Filer | Signature rule as printed |
|---|---|
| Individuals | “If Form 3115 is filed for a couple who file a joint income tax return, enter the names of both spouses on the first line and the signatures of both spouses on the signature line.” |
| Partnerships | “In the signature section, include the signature of one of the general partners or LLC members who has personal knowledge of the facts and who is authorized to sign.” |
| S corporations and other non-consolidated corporations | “In the signature section, enter the signature of the officer who has personal knowledge of the facts and authority to bind the filer in the matter.” |
A paid preparer generally also signs: for both automatic and non-automatic changes, “the preparer (if not the filer or applicant) must sign the original and copies of Form 3115.” Individuals use a different identifying number than entities: “Individuals enter their social security number (SSN).” For a resident or nonresident alien, the instructions say to enter an individual taxpayer identification number (ITIN). “All others enter the employer identification number (EIN).” The edition read for this page is Form 3115 (Rev. December 2022) and the Instructions for Form 3115 (Rev. December 2022), which are the revisions irs.gov served when they were read on 2026-10-16. Check the revision printed on the form you are filing, because the revenue procedures the instructions cite are updated and a later revision can change the procedures, the parts to complete and the filing details.
Common mistakes
- Filing under the non-automatic route when an automatic procedure covers the change. The instructions list a change that is required to be made under a published automatic procedure as a reason the non-automatic procedures may not be used.
- Skipping the duplicate on an automatic change. The instructions require the original to be attached to the timely filed return and a signed copy to be filed with the IRS National Office no later than the date the original is filed.
- Assuming every change spreads the same way. The instructions give 1 tax year for a negative adjustment and 4 tax years for a positive one, with different rules for examination, cut-off changes and certain former S corporations.
Related: do you need an LLC, LLC for rental property, late S corporation election, Form 4562, and depreciation recapture in year one.
Sources
- Form 3115 (Rev. December 2022), Application for Change in Accounting Method: https://www.irs.gov/pub/irs-pdf/f3115.pdf
- Instructions for Form 3115 (Rev. December 2022): https://www.irs.gov/pub/irs-pdf/i3115.pdf
Read from the IRS documents linked above on October 16, 2026. General information, not tax advice. Your own facts decide the outcome, and a preparer, the account provider or the IRS is the right place to confirm anything consequential.