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Level 1
posted Feb 5, 2025 8:19:17 PM

Form 3115

Hi! What DCN code on the Form 3115 should I use if I want to change the Completed project accounting method to the Accrual method.

0 4 1682
2 Best answers
Expert Alumni
Feb 5, 2025 9:12:39 PM

If your are using the Completed Contract Method and you want to change to the Accrual Method on Form 3115, you'll can use DCN 122.  DCN 122 is used for an overall change to the accrual method of accounting,  

 

For more detailed instructions, you can refer to the IRS Instructions for Form 3115 pages 15-34

Expert Alumni
Feb 7, 2025 6:47:51 AM

You will select Hybrid and attach a description that the complete project method was used.

 

@zfam17 

4 Replies
Expert Alumni
Feb 5, 2025 9:12:39 PM

If your are using the Completed Contract Method and you want to change to the Accrual Method on Form 3115, you'll can use DCN 122.  DCN 122 is used for an overall change to the accrual method of accounting,  

 

For more detailed instructions, you can refer to the IRS Instructions for Form 3115 pages 15-34

Level 1
Feb 7, 2025 5:54:20 AM

Thank you, that what I was thinking too, but wasn't sure. Also, when filling out the form 3115, they are asking from which method are you changing from. There are only 3 choices: cash, accrual, hybrid. Under which category the Completed Project method would fall? Or should I just write the Completed project next to it?

Expert Alumni
Feb 7, 2025 6:47:51 AM

You will select Hybrid and attach a description that the complete project method was used.

 

@zfam17 

Level 1
Feb 7, 2025 7:40:59 AM

Thank you, it was helpful!