1065 to 1120S (Form 3115)

[ILLMAS]

TP business was a 1065 for 2017, they made an election to be treated as a 1120S was accepted for 2018, my associate recreated a new tax file in Proseries (1120S) and marked the return as accrual for 2018, however it was supposed be cash like in 2017.  There isn't that much activity or revenue, but does he really need to prepare form 3115 since 2017 1065 was marked "Cash", 2018 as "Accrual" but should been on the cash basis?  It really doesn't make a difference for the books or tax since they are operating on the cash basis.  Or can he just mark 2019 as cash since the original return under the same FEIN was marked cash?

Thanks

[grandmabee]

I think it was an error not a change in accounting methods.  I would probably just file an amended 1120s and mark it cash.

[Lee B]

If as you say there is no change in the in the numbers, I would just mark the the 2019 return as "cash" and move on.

It's what I did when I had a kind of similar situation some years ago.