SECTION 1. PURPOSE

This revenue procedure provides taxpayers engaged in the trade or business of operating a restaurant or tavern (as defined in section 4.01 of this revenue procedure) with a safe harbor method of accounting for the cost of “smallwares” (as defined in section 4.02 of this revenue procedure) (“smallwares method”). This revenue procedure also provides a procedure for such taxpayers to obtain automatic consent of the Commissioner to change to the smallwares method.