We used the wrong depreciation method for years. Is this a Form 1040-X problem or a Form 3115 problem?
Our small business has owned equipment for several years, and we recently realized the depreciation treatment was wrong from the start. One accountant says we should just amend the old returns. Another says the correction may now be a method change that belongs on Form 3115 with a section 481(a) adjustment.
I am trying to understand the fork in the road before paying someone to rebuild the file. If the IRS now expects a method-change approach rather than only amended returns, I want to know why and what information has to go into that submission.
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