Drake Software User's Manual Tax Year 2011 Supplement: S ...

Form 3115, Application for Change in Accounting MethodDrake Software User’s Manual SupplementIn addition to the Multi-form code text box, this screen consists of the Part II andPart IV sections. Applicants must complete both sections of this screen. For more oneach line (including instructions for required attachments), press F1 in a specific field.Part II, Line 12Note that there is no field on the Parts II, IV screen for Part II, line 12. Fields for line12, which should be completed if the applicant is changing only the accountingmethod for a particular item or items, are located in the top half of ATT2 screen. Usethese fields to enter information on:• The items being changed• The applicant’s present and proposed methods for the items being changed• The applicant’s present overall method of accounting (cash, accrual, or hybrid)Note that the bottom half of the ATT2 screen is for completing Part III, line 23b. Onlythe top half (for Part II, line 12) needs to be completed for Part II, line 12.Schedules A,B, and CClick the A, B, C link from screen 3115 screen to complete the following sections ofForm 3115:• Schedule A, Change in Overall Method of Accounting (screen covers Part 1,Change in Overall Method)• Schedule B, Change in Reporting Advance Payments• Schedule C, Changes Within the LIFO Inventory Method (screen covers both PartI, General LIFO Information, and Part II, Change in Pooling Inventories)NOTESchedule A, Part II (Change to the Cash Method for Advance ConsentRequest) requires attachments and is not addressed on the A, B, Cscreen.Schedule AThis section is required for all applicants filing to change their overall method ofaccounting. It requires the entry of amounts as they were at the close of the tax yearpreceding the year of the requested change.NOTELeave blank any lines that aren’t required for the entity’s application. Inaddition, exclude amounts not attributable to the change in method ofaccounting—for example, amounts that correct a math or posting error,or that correct errors in calculating tax liability.The IRS requires a worksheet for lines 1a, 1c, 1d, 1e, and 1f of Schedule A. When youenter an amount on any of these lines in Drake, a CTRL+W worksheet is automaticallyopened, allowing you to begin entering the descriptions and amounts of multiple itemsfor the worksheet. When you close a CTRL+W worksheet, the program returns to theoriginal screen and displays the total in the field. The field is shaded (default is red) toindicate that a CTRL+W worksheet has been used.NOTEIf nothing is entered in a Schedule A field, the program automaticallydisplays the word “NONE” in the field on the generated form.Schedule BThis section has just two lines, both referring to the request for deferral for advancepayments:56 Tax Year 2011