SECTION 1. PURPOSE

This revenue procedure provides an alternative last-in, first-out (LIFO) inventory computation method (the Used Vehicle Alternative LIFO Method) for taxpayers that sell used automobiles or used light-duty trucks (“used vehicle dealers”). A used vehicle dealer may change to or adopt the Used Vehicle Alternative LIFO Method. Used vehicle dealers generally may obtain automatic consent to change their method of accounting to the Used Vehicle Alternative LIFO Method by following the procedures in Rev. Proc. 99–49, 1999–2 C.B. 725, (or its successor) as modified by this revenue procedure.