How Do the New Final Regulations Affect Taxpayers?

The regulations are mandatory, not elective. Taxpayers must take action in order to comply and, more importantly, to take advantage of the opportunities provided. In fact, failure to act in the year in which items occur will likely result in losing the opportunity provided under certain provisions in the regulations. The regulations require accounting method changes (Forms 3115) be used to take advantage of many of the tax benefits. Many taxpayers will be required to file multiple accounting method changes to maximize their tax savings.