SECTION 4. RELIEF

.01 A taxpayer within the scope of this revenue procedure that satisfies all the requirements for relief set forth herein is hereby granted the following relief: the district director will not terminate the LIFO election of the taxpayer because of a LIFO conformity violation described in section 3 of this revenue procedure.

.02 The relief granted under this revenue procedure extends only to LIFO conformity violations described in section 3 of this revenue procedure that occurred on or before October 14, 1997. Accordi n g l y, the district director may, upon examination, terminate a taxpayer’s LIFO election for:

(1) other LIFO conformity violations, including those described in section 3 of this revenue procedure that occur after October 14, 1997; or

(2) any other action that may warrant termination of a taxpayer’s LIFO election.

.03 The district director may, upon examination, verify the accuracy of the taxpayer’s settlement amount calculation and otherwise determine whether the taxpayer has fully satisfied the requirements of this revenue procedure. The district director may terminate a taxpayer’s LIFO election for any violation year ended within the look-back period if the taxpayer failed to fully satisfy the requirements of this revenue procedure.

.04 Nothing in this revenue procedure will prohibit the district director from making adjustments to a taxpayer’s LIFO inventory method of accounting.