Correcting Past Depreciation Errors - 0.2 CPE

A Missed Depreciation Deduction Does Not Simply Disappear.

Depreciation errors can quietly compound over time, especially when assets are misclassified, deductions are overlooked, or improper accounting methods go uncorrected. Under the IRS “allowed or allowable” rules, taxpayers may still lose basis and face additional taxable gain even when depreciation deductions were never actually claimed.

Understanding how these correction procedures work is essential for restoring compliance and recovering missed deductions.

Learning Objective

Define the procedures used to correct depreciation errors and improper accounting methods under IRS rules.

Course Description

This nano-learning course reviews the procedures, correction methods, and compliance rules used to fix depreciation errors under IRS accounting method regulations.

Ideal For

Tax and accounting professionals advising business owners, real estate investors, or clients with depreciable assets and prior-year depreciation reporting issues.

Why This Matters

Depreciation mistakes can create significant long-term tax consequences, including lost deductions, incorrect basis calculations, and phantom gain upon the sale of property. Understanding the difference between amended returns, Form 3115 accounting method changes, and Section 481(a) adjustments helps practitioners correct errors properly while minimizing additional tax exposure.

Author / Instructor

Lee T. Reams, Sr., BSME EA
Lee T. Reams, Sr. is an Enrolled Agent with extensive experience in tax preparation, representation, and advanced tax planning. He is known for helping practitioners apply complex tax rules in real-world client situations.

Course Details

This course qualifies for NASBA continuing professional education credit. CountingWorks, Inc. is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be submitted to the National Registry of CPE Sponsors through its website: www.nasbaregistry.org.

Correct Depreciation Errors Before They Become Costly

Start Correcting Past Depreciation Errors and learn how IRS correction procedures apply to missed deductions and improper accounting methods.