IRS accounting method changes allow service companies and contractors to defer income, accelerate deductions, and manage their tax liability strategically — often without amending a single return.
Accounting method changes — filed via IRS Form 3115 — allow businesses to adopt more favorable tax accounting methods without IRS pre-approval in most cases. For service companies, contractors, and construction businesses, strategic method changes can defer income recognition, accelerate expense deductions, and generate substantial current-year tax savings. Innovate Real Estate identifies the right method changes for your business, prepares the required filings, and coordinates with your CPA for seamless implementation.
Our process is thorough, IRS-compliant, and built around your schedule.
We review your current accounting methods to identify areas where IRS-approved alternatives would reduce your tax burden.
We recommend the optimal combination of method changes — income deferral, expense acceleration, inventory methods, and more.
We prepare all required Form 3115 filings and supporting schedules with full IRS documentation.
We work directly with your tax preparer to ensure method changes are correctly reflected on your return.
What you gain by working with Innovate Real Estate on method change.
Delay recognizing revenue to a later tax year when your rate may be lower.
Deduct costs in the earliest permissible period rather than capitalizing and depreciating.
Method changes are made prospectively with catch-up adjustments — no re-filing prior years.
Most method changes have automatic consent — no need to wait for IRS approval.
Particularly powerful for long-term contractors, service companies, and businesses with WIP.
Once the right methods are in place, the benefit compounds annually.
Submit your property details and we'll prepare a free estimate of your potential tax savings — no obligation.
Request Free ProposalThe most impactful include: long-term contract percentage-of-completion methods, advance payment deferral elections, de minimis expensing elections, and UNICAP exemptions.
IRS-approved method changes carry minimal audit risk. We only recommend changes with clear regulatory authority.
Generally, you can change a specific method once every 5 years. Proper planning ensures you adopt the best methods the first time.
Let our team analyze your property and show you exactly how much you could be saving.