Form 3115 scope questions
Accounting-method change analysis and filing should be explicitly assigned rather than presumed included. Practical cost segregation buyer guidance from Stratum.
The decision this guide addresses
Accounting-method change analysis and filing should be explicitly assigned rather than presumed included.
Ask who determines eligibility, prepares the adjustment, selects the procedure, and submits the required filing copies.
Make this review concrete
Request the preparer's explanation of the existing method, proposed change, relevant procedural authority, adjustment computation, and filing requirements. Confirm who provides the old schedule and who prepares the new one. Do not select a designated change number from a generic website example without the professional analysis supporting its use for the taxpayer.
A practical review sequence
Provide prior methods, dates, elections, and schedules. A property report alone does not determine the applicable procedure or make a filing timely.
Begin with the actual property and engagement being considered. Keep a written distinction between confirmed facts, estimates, services being purchased, and decisions reserved for the return preparer. If a seller or provider presents only a headline benefit, ask for the underlying evidence and assumptions before making a comparison.
Working review sheet
| Field | What to record |
|---|---|
| Question to resolve | Accounting-method change analysis and filing should be explicitly assigned rather than presumed included. |
| Evidence or explanation to request | Ask who determines eligibility, prepares the adjustment, selects the procedure, and submits the required filing copies. |
| Review action | Provide prior methods, dates, elections, and schedules. A property report alone does not determine the applicable procedure or make a filing timely. |
| Responsible party | Name the owner, study provider, technical reviewer, or return preparer who can answer this particular question. |
| Acceptance record | Document the answer, its supporting reference, unresolved items, and the version of the report or engagement to which it applies. |
A hypothetical problem to recognize
The study fee includes guidance but the owner expects a signed and filed application.
Treat the missing explanation as an open item. Ask for a written response, connect it to the affected records, and determine whether it changes the proposed scope or feasibility. This scenario is an editorial illustration, not a testimonial or evidence that a particular provider has performed deficient work.
Questions for the next conversation
What evidence supports the proposed conclusion for this property? Which facts or records could change the answer? Who is responsible for resolving them, and is that work included in the quoted engagement? These questions are more useful when they identify a specific document, asset row, or service than when they request a general assurance of quality.
Ask what the final deliverable will contain and how the preparer will receive it. Where the question affects costs or implementation, request a revised written scope rather than relying on a sales-call recollection. Where it affects tax treatment, the preparer should apply the current rules to the taxpayer rather than extrapolate from another property.
Complete the decision record
Retain the relevant proposal, response, source documents, final report version, and implementation notes in the property file. Record what remains unresolved and whether it must be addressed before engagement, before report delivery, or before filing. A documented decision is easier to review later than an unexplained schedule or an isolated benefit estimate.
Stratum focuses on component evidence and reporting. Broader tax planning, method changes, state calculations, and return preparation need defined responsibilities and an agreed scope. Confirm those roles so the property work produces a useful handoff rather than an assumption that one purchased service includes every related task.
References and scope
- IRS Cost Segregation Audit Technique Guide, Publication 5653
- IRS Publication 946: depreciation, ownership, methods, and timing
- IRS Instructions for Form 3115: accounting-method change procedures
These references explain the underlying tax framework. The checklists and scenarios on this page are editorial tools for gathering evidence, not quotations or asset-specific rulings from the IRS. The audit guide is examination guidance, not an official pronouncement of law or certification of a provider. A return preparer must apply current authority to the particular property, taxpayer, and filing year.