SECTION 12. ORIGINAL ISSUE

DISCOUNT (§§ 1272; 1273) . . . . . . . 43

.01 De minimis original issue

discount (OID) . . . . . . . . . . . . 43 (1) Description of change

and scope . . . . . . . . . . . . . . . 43 (2) Manner of making the

change . . . . . . . . . . . . . . . . . 43 (3) Additional requirements . . . 44 (4) No audit protection . . . . . . . 44 .02 Pool of debt instruments . . . . . 44

(1) Description of change

and scope . . . . . . . . . . . . . . . 44 (2) Additional requirements . . . 44

.02 Year 2000 costs — Description of change and scope. This change applies to a taxpayer that wants to change its method of accounting for Year 2000 costs (as defined in Rev. Proc. 97–50, 1997–2 C.B. 525) to conform to the method described in section 3 of Rev. Proc. 97–50. Section 3 of Rev. Proc. 97–50 provides that Year 2000 costs fall within the purview of Rev. Proc. 69–21, 1969–2 C.B. 303, and that the Service will not disturb a taxpayer’s treatment of its Year 2000 costs as deductible expenses or capital expenditures if the taxpayer treats these costs in accordance with Rev. Proc. 69–21.