Tangible Property Regulations (TPRs)
In general, tax professionals who know what they're doing will be doing more for you this tax season than they've ever done before. You can expect to see increased tax prep fees no matter where you go as preparers navigate new rules and regulations. Most people have heard about the increased due diligence incurred by the Affordable Care Act, but that's a cake walk compared to the Tangible Personal Property Repair (TPR) Regs.
At the end of 2014, the IRS finalized new accounting rules for businesses. They potentially effect all taxpayers with businesses (corporations, partnerships, or sole proprietors) and rental property. That's a lot of people, most of whom are unaware of these changes. In fact, many tax preparers were completely unaware of this issue; hopefully, that's changed a bit.
The IRS changed their implementation of these rules mid-season by releasing a simplified procedure for small businesses on February 13, 2015. Prior to that, all effected taxpayers were going to be forced to file a Form 3115, Application for Change in Accounting Method. While some will find benefit in doing so, most will choose to follow the simplified procedure (which has its drawbacks in some scenarios).
Here's some good background information written by an educator prior to release of the simplified procedures. Also, I found a good Q&A document written by a CPA in the same timeframe.
Shortly after the simplified procedures were released, this article was published by Forbes. It's intended for tax professionals, but it's pretty informative and readable.
The IRS has just recently released their own FAQ on the issue. It's a really good overview, but for non-tax professionals, it's probably a good way to fall asleep.
The TPR Regs are yet one more reason effected taxpayers need to hire a competent preparer. Bottom line--if you're self-employed, have a rental property, or own a business, make sure you're working with someone who's on top of these issues. It's our job to keep you compliant with the tax laws, and these are the new laws.
At the end of 2014, the IRS finalized new accounting rules for businesses. They potentially effect all taxpayers with businesses (corporations, partnerships, or sole proprietors) and rental property. That's a lot of people, most of whom are unaware of these changes. In fact, many tax preparers were completely unaware of this issue; hopefully, that's changed a bit.
The IRS changed their implementation of these rules mid-season by releasing a simplified procedure for small businesses on February 13, 2015. Prior to that, all effected taxpayers were going to be forced to file a Form 3115, Application for Change in Accounting Method. While some will find benefit in doing so, most will choose to follow the simplified procedure (which has its drawbacks in some scenarios).
Here's some good background information written by an educator prior to release of the simplified procedures. Also, I found a good Q&A document written by a CPA in the same timeframe.
Shortly after the simplified procedures were released, this article was published by Forbes. It's intended for tax professionals, but it's pretty informative and readable.
The IRS has just recently released their own FAQ on the issue. It's a really good overview, but for non-tax professionals, it's probably a good way to fall asleep.
The TPR Regs are yet one more reason effected taxpayers need to hire a competent preparer. Bottom line--if you're self-employed, have a rental property, or own a business, make sure you're working with someone who's on top of these issues. It's our job to keep you compliant with the tax laws, and these are the new laws.