SECTION 7. AUDIT PROTECTION

FOR TAXABLE YEARS PRIOR TO YEAR OF CHANGE . . . . . . . . . . . . . 50

made improperly . . . . . . . . .51 (2) Change in sub-method . . . . .51 (3) Prior year Service-initiated

change . . . . . . . . . . . . . . . . .51 (4) Criminal investigation . . . . .52

.01 In general . . . . . . . . . . . . . . . . .50 .02 Exceptions . . . . . . . . . . . . . . . .51

(1) Change not made or

.01 Change in method of accounting

defined . . . . . . . . . . . . . . . . . . .10 .02 Securing permission to make a

method change . . . . . . . . . . . . .12 .03 Terms and conditions of a method

change . . . . . . . . . . . . . . . . . . .12 .04 No retroactive method

change . . . . . . . . . . . . . . . . . . .13 .05 Method change with a § 481(a)

adjustment . . . . . . . . . . . . . . . .13 (1) Need for adjustment . . . . . . .13 (2) Adjustment period . . . . . . . .14 .06 Method change using a cut-off

method . . . . . . . . . . . . . . . . . . . 15 .07 Consistency and clear reflection

of income . . . . . . . . . . . . . . . . . 16 .08 Separate trades or businesses . 16 .09 Penalties . . . . . . . . . . . . . . . . . 17 .10 Change made as part of an

examination . . . . . . . . . . . . . . .17 .11 Significant changes . . . . . . . . .18

adjustment periods . . . . . . . .32 .05 NOL carryback limitation

for taxpayer subject to criminal investigation . . . . . . . . . . . . . . .38 .06 Change treated as

(1) Under examination . . . . . . . .28 (2) Before an appeals office . . . .28 (3) Before a federal court . . . . . . 29 (4) Consolidated group

member . . . . . . . . . . . . . . . . .29 (5) Partnerships and

S corporations . . . . . . . . . . . .29 (6) Prior change . . . . . . . . . . . . .30 (7) Section 381(a) transaction . .30 (8) Final year of trade

or business. . . . . . . . . . . . . . .30 .03 Nonautomatic changes . . . . . .30