From:  Roland
Date:  Tue, 07 Nov 2006

Hello there,

Your newsletter is very informative.

What is the penalty for not filing Form 3115 by the due date?

Thank you,
Roland

Answer

Date:  22 Nov 2006

Hello Roland,

You should meet with a tax advisor relating to your personal situation. The IRS could disallow the change of accounting method and any related tax benefits. You might need to amend the income tax return and pay related penalties for any late payment of tax plus interest.

This could be a mess.

Good luck!
Mike Gray

For answers to new questions, subscribe to our newsletter, Michael Gray, CPA's Tax & Business Insight by filling out the form below.

IRS Circular 230 Disclosure: As required by U.S. Treasury Regulations, you are hereby advised that any written tax advice contained on this website was not written or intended to be used (and cannot be used) by any taxpayer for the purpose of avoiding penalties that may be imposed under the U.S. Internal Revenue Code.