SECTION 9. ELECTING LIFO AND

ADOPTING THE ALTERNATIVE LIFO METHOD

.01 In general. An automobile dealer that adopts the Alternative LIFO Method provided in this revenue procedure at the time the automobile dealer makes an election to use (or extend) the dollarvalue LIFO inventory method must complete and file a statement of election made on a current Form 970, pursuant to the instructions for Form 970, or in such other manner as may be acceptable to the Commissioner. The use of the Alternative LIFO Method should be clearly indicated on the Form 970, or an attachment to the Form 970, and reference should be made to this revenue procedure. Appropriate LIFO sub-method elections that are an integral part of the Alternative LIFO Method, which are contained on the Form 970, must be selected on the Form 970 upon adoption of the Alternative LIFO Method.

.02 Conditions. A taxpayer adopting the Alternative LIFO Method must comply with the conditions stated in section 5.03(1), (2), and (9) of this revenue procedure.