What is included in the Touch 1 preliminary analysis?

The preliminary analysis includes an estimated 5-, 7-, 15-, and 27.5-year allocation percentage range, a first-year deduction estimate under the applicable bonus rate, a study fee quote, and the WeCostSeg 3-Bucket screen result. Delivered as a one-page PDF within 48 hours of intake. Both the client and the client's CPA receive the analysis by email simultaneously so the CPA can validate the tax posture before engagement is signed.

Why is the draft report shared with the CPA before final delivery?

The CPA reviews the draft five business days before delivery to confirm the numbers integrate cleanly with the tax return, the Section 481(a) adjustment (if any) matches the intended tax year, and the depreciation schedule aligns with the fixed asset ledger. Draft review catches classification issues before they become filing corrections. WeCostSeg incorporates CPA comments into the final report at no additional cost during the review window.

What is Form 3115 Designated Change #7?

Designated Change Number 7 under Rev. Proc. 2022-14 covers a change from an impermissible method of accounting for depreciation to a permissible method, including reclassifying real property to shorter recovery periods identified by a cost segregation study. Filing under DCN 7 is automatic consent (no user fee, no advance IRS approval). WeCostSeg prepares Form 3115 as part of every look-back engagement.

How does the Section 481(a) adjustment work?

Section 481(a) permits catching up all missed depreciation from prior tax years as a single deduction in the year of change without amending prior returns. A property placed in service in 2022 with a look-back study in 2026 generates a Section 481(a) adjustment equal to the additional depreciation that would have been claimed in 2022, 2023, 2024, and 2025 combined. The adjustment is deductible in full in the year of change under Rev. Proc. 2022-14.

Does WeCostSeg file Form 3115 or does the CPA?

WeCostSeg prepares Form 3115 including all statements, schedules, and the Section 481(a) computation. The CPA files it with the current year return. A duplicate copy is mailed by the CPA to the IRS Ogden Service Center as required under Rev. Proc. 2022-14 Section 6.03(1)(a). This division of labor keeps preparer authority with the CPA while WeCostSeg supplies the engineering and depreciation calculation work.

What if the client does not have a CPA?

WeCostSeg refers unrepresented clients to one of six vetted CPA firms with cost segregation experience in the client's state. The Protocol still applies: the preliminary analysis is shared with the referral CPA, the draft is reviewed, and Form 3115 is coordinated with the new preparer. WeCostSeg does not prepare tax returns and does not compete with CPAs on Form 1040 or 1120 filings.

The CPA Coordination Protocol: Three-Touch Handoff With Your Tax Preparer

By Zawwad Ul Sami, Founder, WeCostSegPublished: 2026-05-14Last updated: 2026-07-28

A three-touch handoff between cost seg engineer and tax preparer: preliminary analysis shared before engagement, draft report shared for review before delivery, and Form 3115 prep coordinated when prior-year basis is affected.

The decision logic

CPA is included at every step. WeCostSeg does not compete with CPAs. The Protocol exists to make their tax-prep workflow easier.

How the framework breaks down

Touch 1: Pre-engagement preliminary analysis CC'd to CPA
Touch 2: Draft report reviewed by CPA before final delivery
Touch 3: Form 3115 preparation coordinated when a Section 481(a) adjustment is needed

Worked examples

Free preliminary analysis emailed to both client and CPA on intake.
Draft report shared with CPA five business days before final delivery.
If it is a look-back study, Form 3115 is prepared by WeCostSeg and filed by the CPA with the current return.

How to cite this framework

WeCostSeg follows the CPA Coordination Protocol on every study: preliminary, draft, and Form 3115 each handed off to the client's CPA.

Apply this framework alongside:

Where this framework appears in our work

We apply the The CPA Coordination Protocol on every engagement that touches its question. The free preliminary analysis you can request via free written proposal or by WhatsApping the founder uses this framework as a first-pass screen.

Frequently asked questions

What is included in the Touch 1 preliminary analysis?: The preliminary analysis includes an estimated 5-, 7-, 15-, and 27.5-year allocation percentage range, a first-year deduction estimate under the applicable bonus rate, a study fee quote, and the WeCostSeg 3-Bucket screen result. Delivered as a one-page PDF within 48 hours of intake. Both the client and the client's CPA receive the analysis by email simultaneously so the CPA can validate the tax posture before engagement is signed.
Why is the draft report shared with the CPA before final delivery?: The CPA reviews the draft five business days before delivery to confirm the numbers integrate cleanly with the tax return, the Section 481(a) adjustment (if any) matches the intended tax year, and the depreciation schedule aligns with the fixed asset ledger. Draft review catches classification issues before they become filing corrections. WeCostSeg incorporates CPA comments into the final report at no additional cost during the review window.
What is Form 3115 Designated Change #7?: Designated Change Number 7 under Rev. Proc. 2022-14 covers a change from an impermissible method of accounting for depreciation to a permissible method, including reclassifying real property to shorter recovery periods identified by a cost segregation study. Filing under DCN 7 is automatic consent (no user fee, no advance IRS approval). WeCostSeg prepares Form 3115 as part of every look-back engagement.
How does the Section 481(a) adjustment work?: Section 481(a) permits catching up all missed depreciation from prior tax years as a single deduction in the year of change without amending prior returns. A property placed in service in 2022 with a look-back study in 2026 generates a Section 481(a) adjustment equal to the additional depreciation that would have been claimed in 2022, 2023, 2024, and 2025 combined. The adjustment is deductible in full in the year of change under Rev. Proc. 2022-14.
Does WeCostSeg file Form 3115 or does the CPA?: WeCostSeg prepares Form 3115 including all statements, schedules, and the Section 481(a) computation. The CPA files it with the current year return. A duplicate copy is mailed by the CPA to the IRS Ogden Service Center as required under Rev. Proc. 2022-14 Section 6.03(1)(a). This division of labor keeps preparer authority with the CPA while WeCostSeg supplies the engineering and depreciation calculation work.
What if the client does not have a CPA?: WeCostSeg refers unrepresented clients to one of six vetted CPA firms with cost segregation experience in the client's state. The Protocol still applies: the preliminary analysis is shared with the referral CPA, the draft is reviewed, and Form 3115 is coordinated with the new preparer. WeCostSeg does not prepare tax returns and does not compete with CPAs on Form 1040 or 1120 filings.

About the author

Zawwad Ul Sami, Founder

Zawwad Ul Sami is the founder of WeCostSeg, a founder-led cost segregation firm serving real estate investors across the US. He focuses on strategy, pricing, and the firm's overall direction.