Tangible Asset and Repair Regulations Reminder

Reminder: September 15th and October 15th are the deadlines to file Forms 3115 to proactively comply with the Tangible Asset and Repair Regulations (TARS), which went into effect for taxable years beginning on or after January 1, 2014.

Although Forms 3115 are not required with every return, the omission of these forms indicates acceptance of the relief provided by Rev. Proc. 2015-20 which automatically forfeits any opportunity to retroactively correct capitalized expenditures that should have been deducted in years prior to 2014. If you have already filed your 2014 tax returns, there is still a bit of time to amend your returns and prepare for TARS moving forward.

For additional information about TARS you can access an article we published in March of 2015 titled, Tangible Asset and Repair Regulations Update. If you would like an overview of TARS, take a look at our article from October of 2013 titled, IRS Debuts Final Repair Regs.

The team at BPW is committed to helping you find a solution that best meets your needs, should you have any questions about the regulations or how to comply with them, please feel free to contact us at (805) 963-7811.