If we start reporting materials as Cost of Goods Sold, instead of as Supplies expenses, does that count as a change in accounting that should be reported on Form 3115?

[NS1]

Instruction for Form 3115 say it is "to request a change in either an overall method of accounting or the accounting treatment of any item." Does changing where we report materials from Supplies to GOGS count as accounting treatment? We do not track inventory, so in either case, we'd be reporting the same number.

I hope someone can answer this and would be grateful if I get a response to my other question from yesterday here: https://ttlc.intuit.com/questions/4707567-can-we-start-reporting-materials-as-cost-of-goods-sold-if-...

Thanks!

[DDollar · Accepted solution]

I would not file Form 3115 for that change.  It's a change in classification, not a change in accounting.  A switch from LIFO inventory to FIFO inventory, or a change from cash basis to accrual basis would be the type of "changes" that need to be reported on Form 3115.

[NS1]

Thank you!

[DDollar]

You're welcome.  Thanks for using TurboTax!!