SECTION 13. EFFECTIVE DATE

.01 In general. Except as provided in sections 13.02 and 13.03 of this revenue procedure, this revenue procedure is effective for taxable years ending on or after August 18, 1997. Except as provided in sections 13.02 and 13.03 of this revenue procedure, the Service will return any application that is filed on or after August 18, 1997, if the application is filed with the national office pursuant to the Code, regulations, or administrative guidance other than this revenue procedure and the change in method of accounting is within the scope of this revenue procedure.

.02 Transition rules.

(1) Previously filed applications.

(a) Applications for advance con- sent. If a taxpayer filed an application with the national office under Rev. Proc. 97–27 or Rev. Proc. 92–20, 1992–1 C.B. 685, to make a change in method of accounting authorized by this revenue procedure, and the application is pending with the national office on August 18, 1997, the taxpayer may make the change under this revenue procedure. However, the national office will process the application in accordance with the revenue procedure under which the application was filed, unless prior to the later of September 30, 1997, or the issuance of the letter ruling granting or denying consent to the change, the taxpayer notifies the national office that it wants to make the change under this revenue procedure. If the taxpayer timely notifies the national office that it wants to make the method change under this revenue procedure, the national office will require the taxpayer to make appropriate modifications to the application to comply with the applicable provisions of this revenue procedure. In addition, any user fee that was submitted with the application will be returned to the taxpayer.

(b) Applications for automatic consent. If a taxpayer filed an application with the national office (or a service cen

(a) Prior automatic consent pro- cedures. A taxpayer that wants to make a change in method of accounting previously authorized by an automatic consent procedure listed in section 14.01 of this revenue procedure, for a taxable year that ends on or after August 18, 1997, may make the change under that automatic consent procedure by complying with that procedure and the following additional filing requirement. In lieu of filing the application with the national office (or a service center) pursuant to that automatic consent procedure, the taxpayer must file a copy of the application with the national office no earlier than the first day of the year of change, and no later than the earlier of December 31, 1997, or when the original application is filed with the timely filed original federal income tax return (including extensions) for the year of change. A taxpayer changing its method of accounting under Rev. Proc. 85–8, 1985–1 C.B. 495, for a taxable year ending on or before December 31, 1997, may file under that revenue procedure. The additional filing requirement described above does not apply to this change.

(b) New automatic consent proce- dures. A taxpayer making a change in method of accounting authorized by this revenue procedure, other than a change

1997–33 I.R.B. 27 August 18, 1997

previously authorized by an automatic consent procedure listed in section 14.01 of this revenue procedure or a change authorized by section 13.01 of the APPENDIX of this revenue procedure, that files a copy of an application under the provisions of this revenue procedure no later than the earlier of December 31, 1997, or when the original application is filed with the timely filed original federal income tax return (including extensions) for the year of change, may apply the § 481(a) adjustment period determined under sections 5 and 8 of Rev. Proc. 92–20. The taxpayer must affirmatively state in an attachment to the application (a) that it requests to apply the § 481(a) adjustment period determined under sections 5 and 8 of Rev. Proc. 92–20, and (b) the applicable § 481(a) adjustment period and the authority therefor.

.03 Timing of incurring liabilities for payroll taxes. To change a method of accounting under section 8.04 of the APPENDIX of this revenue procedure, a taxpayer may use the provisions of this revenue procedure for taxable years ending on or after October 21, 1996.