Congress’ recent penchant for letting bonus depreciation expire only to be retroactively reinstated nearly a year later has created issues for many non-calendar year taxpayers.  When their returns are filed assets acquired after January 1 of the year in question are not eligible for bonus depreciation.  However when Congress retroactively extends the application of IRC §168(k) these returns become “erroneous” as filed since bonus depreciation must be used unless the taxpayer elected not to use bonus.

In Revenue Procedure 2015-48 the IRS gives guidance to taxpayers who find they have such “erroneous” returns already on file with the agency. 

In Chief Counsel Advice 201509029  the IRS disagreed with a taxpayer’s position that certain buildings on the taxpayer’s new and used heavy and medium-duty trucks and trailers sales and leasing facility qualified as 15 year property under asset class 57.1 of Revenue Procedure 87-56.  Assets in that classification qualify for a 15 year, rather than 39 year, life for purposes of depreciation.