Cash or Accrual filing

[Nancy D]

I have a takeover plan which has always filed their 5500 on a cash basis. My preference (and all my other 5500s) are to file on an accrual basis. Is there a problem in changing to an accrual basis?

Thanks much for any guidance.

[chc93]

I've been told by auditors in the past that changing "once" is OK... that is, change and be consistent. I've actually changed a few plans since then, and the year of change from cash to accrual showed "double" company contributions (prior year cash deposit, current year accrual). Never had problems... (and hope I never do).

[Nancy D]

Thanks for your response. I'll sleep well tonite knowing that I can treat all my plans the same way.

[masteff]

Does that require a Form 3115?

[david rigby]

You ask, "where can I find form 3115"?

http://www.irs.gov/app/picklist/list/formsPublications.html

[chc93]

For whatever it's worth, I've never heard of Form 3115 until now, so obviously never filed one. Glancing through the instructions, is this form really for corporate tax returns that change methods of accounting, and not applicable to Form 5500's... kinda like the question of PTIN's, and Form 5500's/Form 1040's. PTIN's not required for 5500's since it's really an "information" form rather than a "tax" form.

[masteff]

For whatever it's worth, I've never heard of Form 3115 until now, so obviously never filed one. Glancing through the instructions, is this form really for corporate tax returns that change methods of accounting, and not applicable to Form 5500's... kinda like the question of PTIN's, and Form 5500's/Form 1040's. PTIN's not required for 5500's since it's really an "information" form rather than a "tax" form.

I'll go along w/ that. Especially if you compare 3115 to form 5308 (which is specifically related to plans) http://www.irs.gov/pub/irs-pdf/f5308.pdf (Instructions for 5500 mention certain instances where have to get permission to change plan year, so I went searching for a form to do that.)

Not to mention the only hits on "plan" in the 3115 form and instructions is in the word "explanation".