SECTION 4. SCOPE

.01 In general. The settlement options described in this revenue procedure are available to any taxpayer that deducted for a taxable year the unpaid portion of accrued employee benefits based on the securitization of the benefits by a letter of credit, bond, or other similar financial instrument during the first 2 ¹ ⁄2 months of the following taxable year. The employee benefits in question are primarily vacation pay, but may also include other benefits such as severance pay, disability pay, or sick pay.

.02 Inapplicability. This revenue procedure does not apply to a taxpayer unless the taxpayer, in accordance with the procedures set forth in Notice 99–16, 1999– 13 I.R.B. 10, changes its method of accounting for its first taxable year ending after July 22, 1998, to comply with § 404(a)(11).