SECTION 6. ELECTING LIFO AND

ADOPTING THE USED VEHICLE ALTERNATIVE LIFO METHOD

.01 In general . If a used vehicle dealer is required to make an election to adopt or extend LIFO in connection with adoption of the Used Vehicle Alternative LIFO Method, the used vehicle dealer must complete and file a statement of election of the LIFO inventory method on Form 970, Application to Use LIFO Inventory Method . The use of the Used Vehicle Alternative LIFO Method should be clearly indicated on the Form 970, or in an attachment thereto, and a reference should be made to this revenue procedure.

.02 Conditions . (1) The five year limitation on re-election of LIFO provided in

section 10.01(2) of the APPENDIX of Rev. Proc. 99–49 will be waived for affected taxpayers desiring to elect the Used Vehicle Alternative LIFO Method pursuant to this revenue procedure.

(2) A taxpayer electing LIFO and adopting the Used Vehicle Alternative LIFO Method must comply with the conditions stated in section 5.04 of this revenue procedure.