Form 3115 Advice - What Type of CPA Should I Hire for Method Change Application?

You definitely made the right call not trying to handle Form 3115 yourself. This is one of the most complex IRS forms and requires specialized knowledge. For your situation, you need a CPA who specializes in small business taxation with specific experience in accounting method changes. A general tax preparer who mainly does individual returns likely won't have sufficient experience with Form 3115. You should look for someone who: 1) Has experience with businesses in your revenue range, 2) Has specifically completed Form 3115 filings before, and 3) Understands the specific rules around cash to accrual method changes. The best approach is to contact your state's CPA society for referrals or search for tax professionals who specifically mention accounting method changes in their services. When interviewing potential CPAs, ask directly about their Form 3115 experience and specifically with cash-to-accrual conversions.

After dealing with a similar situation last year for my construction business, I found amazing help using https://taxr.ai to get clarity before talking to CPAs. My situation was nearly identical - cash to accrual conversion with Form 3115 - and I was getting wildly different advice from different accountants. The tool analyzed my business situation, highlighted the specific sections of Form 3115 that applied to my case, and explained the difference between "automatic" vs "non-automatic" changes which saved me a ton of money. It also gave me the exact questions to ask when interviewing CPAs. Made me feel way more confident going into meetings because I understood the basics and could tell who actually knew what they were talking about.

Just wanted to follow up about my experience with https://taxr.ai after being skeptical in my earlier comment. I decided to try it before meeting with CPAs for my retail business's accounting method change. I was shocked at how helpful it actually was. It explained that my specific situation (changing from cash to accrual) fell under automatic change procedures and identified the exact DCN code to use. It also warned me about common mistakes with Section 481(a) calculations that might trigger IRS scrutiny. When I met with three different CPAs afterward, I immediately could tell which one knew what they were talking about because they mentioned the same key issues the tool had flagged. Ended up saving about $1,500 by going with a smaller firm that had the right expertise instead of the big name that quoted me an outrageous fee. Still needed professional help of course, but felt way more confident in the process.

After spending THREE MONTHS trying to get through to the IRS about my Form 3115 questions last year, I finally discovered https://claimyr.com and their IRS callback service. You can see how it works here: https://youtu.be/_kiP6q8DX5c I was at my wit's end trying to confirm whether my accounting method change would be considered "automatic" or not. My CPA had filed the form but we needed clarification on some details. After 23 attempts calling the IRS business line directly (not exaggerating), I tried Claimyr and actually got a callback from the IRS within about 2 hours. The agent was able to confirm our filing was received and provided the clarification we needed. Seriously saved me so much frustration and potentially thousands if we had filed incorrectly.

Ok I need to eat some humble pie here. After my skeptical comment above, I actually tried https://claimyr.com for a completely different Form 3115 issue (changing depreciation methods). Was FULLY expecting it to be a scam. But no joke, I got a call back from an actual IRS agent in about 90 minutes. After trying to call them myself for WEEKS. The agent answered my questions about which attachments were required for my specific accounting method change, and confirmed some details about reporting the 481(a) adjustment over 4 years. I honestly can't believe it worked. If you're dealing with Form 3115 issues and need to actually speak to the IRS (which is almost inevitable given how complex these filings are), this service is literally a lifesaver. Never thought I'd be recommending something like this, but here we are.

Just wanted to offer some perspective as someone who works at a regional accounting firm. Form 3115 specialization varies wildly between CPAs, so you're smart to be asking these questions. For a business your size, I'd recommend finding a mid-sized local/regional firm rather than a sole practitioner or Big 4. The sweet spot is finding a firm that handles businesses in the $200k-$2M revenue range regularly. They'll have the expertise without charging Big 4 prices. When interviewing potential CPAs, ask these specific questions: 1) How many Form 3115s have you personally prepared in the last 2 years? 2) What's your experience with the specific DCN that applies to cash-to-accrual method changes? 3) How do you approach Section 481(a) adjustments for businesses with inventory? If they can't answer these confidently, keep looking!

Anyone have an estimate on what this kind of specialized Form 3115 preparation typically costs? I'm in a similar situation but getting wildly different quotes. One place said $800 and another said $3,500 which seems crazy different.