SECTION 4. SCOPE

.01 Applicability . Except as specifically provided in other published guidance or in section 4.02 of this revenue procedure, this revenue procedure applies to all taxpayers requesting the Commissioner’s consent to change a method of accounting for federal income tax purposes.

.02 Inapplicability . This revenue procedure does not apply in the following situations:

(1) Automatic change . If the change in method of accounting is required to be made pursuant to a published automatic change procedure. Taxpayers are encouraged to review the automatic change procedures listed in section 9.03 of Rev. Proc. 97–1, 1997–1 I.R.B. 11, 37 (or any successor), before submitting a Form 3115 pursuant to this revenue procedure;

(2) Under examination . If the taxpayer is under examination, except as provided in sections 6.01(2) (90-day window), 6.01(3) (120-day window), and 6.01(4) (district director consent) of this revenue procedure;

(3) Before an appeals office . If the taxpayer is before an appeals office with respect to any income tax issue and the accounting method to be changed is an issue under consideration by the appeals office;

(4) Before a federal court . If the taxpayer is before a federal court with respect to any income tax issue and the accounting method to be changed is an issue under consideration by the federal court; or

(5) Consolidated group member . A corporation that is (or was formerly) a member of a consolidated group is under examination, before an appeals office, or before a federal court (for purposes of sections 4.02(2), (3), and (4) of this revenue procedure) if the consolidated group is under examination, before an appeals office, or before a federal court for a taxable year(s) that the corporation was a member of the group.

(6) Partnerships and S corpora- tions . For an entity (including a limited liability company) treated as a partnership or an S corporation for federal income tax purposes, if the entity’s accounting method to be changed is an issue under consideration in an examination of a partner, member, or shareholder’s federal income tax return or an issue under consideration by an appeals office or by a federal court with respect to a partner, member, or shareholder’s federal income tax return.