SECTION 1. PURPOSE

This revenue procedure provides an alternative last-in, first-out (LIFO) inventory computation method (the “Alternative LIFO Method”) for a taxpayer engaged in the trade or business of retail sales of new automobiles or new light-duty trucks (“automobile dealer”). A taxpayer may change to or adopt the Alternative LIFO Method. The procedures for a taxpayer to change to the Alternative LIFO Method are provided in Rev. Proc. 97–37, page 18, which provides simplified and uniform procedures to obtain automatic consent to make this and other changes in methods of accounting. This revenue procedure modifies and supersedes Rev. Proc. 92–79, 1992–2 C.B. 457. .02 The Alternative LIFO Method described in this revenue procedure is the same method of accounting that was described in Rev. Proc. 92–79. Accordingly, a taxpayer that properly changed to or adopted this method pursuant to Rev. Proc. 92-79 is not required to change its method of accounting to comply with this revenue procedure.