Does TT allow e-filing with Form 3115 for unclaimed depreciation?

With respect to filing Form 3115, you need to file a copy with your return and also print and mail a copy to the IRS at a different address.

Is fax still the way to send the duplicate copy?

No, your return must be mailed because this form is not supported through e-file. 

Yes, the procedures you noted were last updated in November 23, 2021so you should follow that and FAX your duplicate Form 3115.

If I want to file for an automatic change in accounting method, how do I file the duplicate copy of the Form 3115?

Until further notice, you may fax your duplicate copy of Form 3115 for an automatic change in accounting method to the IRS at 844-249-8134. You must also file the original Form 3115 with your tax return.  I would advise to use this procedure versus mailing a copy but you can do that as pointed out by tax expert @Anonymous_.

Hi Diane,

Sorry, I didn't wait for your response and went through e-filing to see if it gives me any messages not to.  TT didn't stop me from e-filing and it printed a copy of 3115 to mail.  It also printed form 8453 (US Indv. Tax transmittal for an IRS e-file Return).  Does this mean I just mail these two and not the rest of the return (1040)?

The mailing address is:

IRS Attn: Shipping and Receiving, 0254

Receipt and Control Branch

Austin, TX 73344-0254

At the bottom of the form 8453 it says "Don't Sign this Form".  Does it mean I don't sign the form 3115?  Because in the 3115 instructions, it says the first copy does not need to be signed.

By the way I just received an email confirming my federal tax was accepted.

Appreciate all your help!

When is TT online going to support Form 3115?  and support eFile on desktop?  There are lots of questions on this and I would think TT would offer this as base package.   Total pain to download, fill out form, print, and mail.  FYI.. when I spoke to TT expert, he said lots (and lots) of people don't even know of depreciation on rental property and as a result, do not record it until its too late and have to then go through this form 3115 process.  I hope TT puts this on their roadmap!

We can hope, but the form is not exactly a DIY project even though the 481(a) adjustment section on the form is relatively simple. 

First, a copy must be included with the return and another copy must be sent separately to the IRS.

Also, a statement needs to be attached that includes a summary of how the adjustment was calculated.

Finally, there are a multitude of questions on the first three pages that are relatively obtuse and vague. 

The preparation of this form is best left to tax professionals.

I am in the same boat and want to understand the procedure to e-file Form 3115. Can someone please tell me this is the right way to do it? 

1.  Use Turbotax to efile Fed tax return, which includes Form 3115 but not the required attachment
2.  Send Form 3115 and the required attachment via fax [phone number removed].  The cover letter of the fax should have the following information. Do not include the other forms such as Form 1040 and other forms that are efiled in step 1
   • Subject: Form 3115
   • Sender's name, title, phone number, address
   • Taxpayer's name
   • Date
   • Number of pages faxed (including cover sheet)
3. Keep the fax log as the receipt from IRS for Form 3115
4. Do not need to mail Form 3115 and attachment to IRS separately. 

Appreciate any suggestions!

By "No, your return must be mailed because this form is not supported through e-file. " , do you mean we can not e-file the whole tax return (e.g., Form 1040 and etc.) via e-file, a.k.a, we need to mail the whole package?  Can you please clarify which is the right way to do (1 or 2)?

1. e-file the fed tax return (including Form 3115, but without the required attachment since TurboTax does not support attachment) and fax Form 3115 and the required attachments as supporting files to [phone number removed].
2. mail the Fed tax return (including Form 3115 and Attachment), and  fax Form 3115 and the required attachments as supporting files to [phone number removed].

Appreciate the help!

---

@ben02g wrote:
Send Form 3115 and the required attachment via fax [phone number removed].  

---

Yes, fax a copy of the form and the statement (separate from your return) to the IRS.

You might as well simply print and mail your entire federal income tax return (with Form 3115 and the explanatory statement) since you cannot e-file both the form and the statement with TurboTax.

Thanks, Tagteam!

Just want to be clear and don't want to make the mistake in the last minute :), I can either

1. e-file the return (including Form 3115) via Turbotax, and fax the only Form 3115+ attachments 
2. Mail the whole package (including  From1040 and Form 3115 + other worksheets). In this case, I don't need to fax the Form 3115 + attachment again

Appreciate your advice!

@ben02g 

You need to do both.

1) Fax the form and statement to the IRS; and

2) Mail your whole return package (including Form 3115, et al) to the IRS.

See https://www.irs.gov/instructions/i3115#idm140516454118016

Thanks, Tagteam!

One more question, can I e-file the tax return via Turbotax  (Form 1040 + 3115 without attachments +other forms) and then fax the Form 3115+ Attachments for 3115) to IRS?

Since Turbotax does not support attachments for Form 3115, I am wondering if this will cause any problems.  

Thanks!

The TurboTax forms availability page is showing that e-file is not supported for Form 3115.

See https://care-cdn.prodsupportsite.a.intuit.com/forms-availability/turbotax_fed_windows_individual.html

I am not sure whether that really has a huge impact since an explanatory statement (showing the calculation) is required to be included with Form 3115 and that statement cannot be e-filed, regardless.

Thanks for the clarification. This is super helpful. 

I am guessing you have already filed your taxes by now.  If it helps anyone, here is what I did:

 - E-filed through TT (on 4/14/22) and it printed the form 3115 along with 8453 (form to show you have e-filed your 1040)

 - Then I mailed (on 4/18/22) the two forms, along with an attachment showing the depreciation calculations & other info, to the IRS address printed on 8453 (You may fax it)

 - Then I mailed a signed copy of 3115 to the Ogden UT address

thanks for the clarifications.  I am in the process of working with this form 3115.  Would you mind if I ask you questions along the way?  I am having a tax pro create the forms for me.  once I have them I will input them into TT desktop (form view).  Thanks again

Can I ask how you were able to fill out form 3115 in TurboTax? I have the same situation as everyone else and I want to efile my return along with my digital form 3115 and then mail in a copy and the attachments. 

Actually, I found it by clicking on Forms, Open Form, 3115. TT could make it easier to find but I am all set now. 

Hi , I think you can help. I want to file 3115 timely to become day trader for 2024 and opt in MTM but let me know

for a day trader what would be line 13 part ll as an individual.  If it is  yes the answer should file Sch A on part l , what would be Present method and Proposed method for a day trader?

And what is the answer of line 5 part l on Sch A as well? 

How about section 481(a) part lV, line 25, Yes or No for a day trader as individual. If I answer no, line 26 ask me the amount but I do not know how much it would be?

Thanks a lot 

Please read the instructions for 3115.  This gives a complete breakdown on how or report items in line 13 and line 5 part A on Schedule A. This may help you determine how to record this information in the 3115.

Present and proposed methods refer to the 481 (a) adjustment to be made and is addressed in the 3115 instructions. Please read the two examples given in this section as it is difficult for us to comment on this.  The present method is what is presently used to value your securities inventory but  your proposed method of valuation  may change the value of your inventory. If it does, line 26 will reflect the amount that differs between the two methods I mentioned above. If you don't know, you may need to do a cost valuation analysis to project a change in valuation. 

Hopefully this helps. Day Trading can be complicated and risky at the same time thus we can only give limited advice on how to record this because we are Tax Advisors and not Financial Advisors.

@Sam Hopi