The IRS will let taxpayers make or revoke late elections by filing an amended return or an administrative adjustment request. The change came about as a result of taxpayer requests for relief after the Tax Cuts and Jobs Act amended Sec. 168(k) to increase the bonus depreciation percentage from 50% to 100% for qualified property.
Taxpayers can make or revoke late elections by filing an amended return or by an administrative adjustment request if they're a partnership subject to centralized partnership audit. They can do this for the 2016 or 2017 tax year before they file their federal tax return for the first tax year succeeding either of those tax years.
Taxpayers may also file a Form 3115 (Application for Change in Accounting Method) with their timely filed federal tax return for the first, second or third tax year succeeding the 2016 or 2017 tax year. Learn more about this change.Learn more about this change.