SECTION 1. PURPOSE

.01 This revenue procedure describes three alternative methods of accounting for package design costs: (1) the capitalization method ( see section 5.01 of this revenue procedure), (2) the design-by-design capitalization and 60-month amortization method ( see section 5.02 of this revenue procedure), and (3) the pool-ofcost capitalization and 48-month amortization method ( see section 5.03 of this revenue procedure). A taxpayer may change to or adopt any one of these three methods. The procedures for a taxpayer to change to one of these three methods 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. 90–63, 1990–2 C.B. 664.

.02 The three methods of accounting for package design costs described in this revenue procedure are the same methods of accounting that were described in Rev. Proc. 90–63. Accordingly, a taxpayer that properly changed to or adopted one of these methods pursuant to Rev. Proc. 90–63 is not required to change its method of accounting to comply with this revenue procedure.