Form 3115 with 1040X - deadline

[ZWu1]

Dear expert,

My CPA filed, on 4/10/2024, my 2023 1040 return with the correct depreciation amount. However, for all prior years, he filed my returns with incorrect depreciation.

He just realized he needed to make the change now for 2023 tax year by:  filing 1040X for 2023, along with form 3115 for all prior years before 2023.

My questions:

1. For the original 2023 1040, he didn't know he needed to and thus didn't file Form 3115. Now he said the New 1040, 1040X, and 3115 must be filed by 10/10/2024. Is this correct? I.e., does the 6-month extension of 3115 apply here, or it doesn't since he didn't file 3115 in April when he filed the original 1040?

2. If the 6-month extension doesn't apply, am I stuck without anything to do to correct his mistakes?

Thanks so much,

Frustrated and anxious

[tagteam]

"Timely filed" in terms of filing Form 3115 includes extensions.

Note that you need to send a separate signed copy to the iRS.

See https://www.irs.gov/instructions/i3115#en_US_202212_publink63215hd0e217

[ZWu1]

Thanks a lot for your help.

I read the IRS link, each word. Does that mean now by 10/10 or 10/15, I am ok if I file 3115 (1 original and 1 copy) and 1040X to capture all prior years' impact of mistake - even though at 4/10, I filed original 1040 with NO 3115?

Thanks again.

[tagteam]

I'll page @AmeliesUncle for input.

However, I have to believe that your return would be considered to be timely filed provided you filed for an extension. If you did not, then the return is not timely filed.

[ZWu1]

Thanks and again I never filed extension as I timely filed my 2023 return. Also I didn't initially file Form 3115 in April when I filed the return.

Its just that the tax return now needs to be amended, per my tax preparer, to capture/reflect the cumulative mistake he made in all prior years.

So his plan is now by 10/10 or 10/15 (6 months later), file 1040X to capture all prior years' mistake and also Form 3115 (first time now).

My question is: is his plan correct/good in terms of if I have the 6-month auto extension for 3115?

Thanks a lot!!

[AmeliesUncle]

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@ZWu1 wrote:

However, for all prior years, he filed my returns with incorrect depreciation.

He just realized he needed to make the change now for 2023 tax year by:  filing 1040X for 2023, along with form 3115 for all prior years before 2023.

My questions:

1. For the original 2023 1040, he didn't know he needed to and thus didn't file Form 3115. Now he said the New 1040, 1040X, and 3115 must be filed by 10/10/2024. Is this correct? I.e., does the 6-month extension of 3115 apply here, or it doesn't since he didn't file 3115 in April when he filed the original 1040?

First, he should make sure it qualifies for Form 3115.   Merely "incorrect" depreciation doesn't necessarily mean it can be fixed with Form 3115.  Was depreciation claimed at all?  Or what happened that resulted in the incorrect depreciation?

In answer to your question, yes, Form 3115 does give a 'bonus' six month extension (although I'm unsure if it would be due October 10th or 15th (I would guess the 15th).  See the bottom of page 43 of Revenue Procedure 2015-13.

https://www.irs.gov/pub/irs-drop/rp-15-13.pdf#page=43

[ZWu1]

Thank you for your input!

[ZWu1]

Thanks for your input and initiation for others to chip in.