SECTION 6. DEFINITIONS

.01 Violation year. A violation year is any taxable year for which a taxpayer violated the LIFO conformity requirement under the facts described in section 3 of this revenue procedure. However, solely for purposes of this revenue procedure, a taxable year will not be treated as a violation year if it ended on or before October 14, 1997, and the taxpayer replaced the twelfth monthly income statement for that year with a “thirteenth period income statement” that:

(1) covered the same period as the twelfth monthly income statement;

(2) reflected the LIFO inventory method; and

(3) was provided, before the first monthly income statement of the following year, to each creditor that received the twelfth monthly income statement.

.02 Look-back period. For purposes of this revenue procedure, the “look-back period” consists of the taxpayer’s six most recent taxable years ended on or before October 14, 1997.