SECTION 4. DEFINITIONS

.01 Trade or Business of Operating a Restaurant or Tavern . For purposes of this revenue procedure, a taxpayer is engaged in the trade or business of operating a restaurant or tavern if the taxpayer’s business consists of preparing food and beverages to customer order for immediate on-premises or off-premises consumption. These businesses include, for example, full-service restaurants; limited-service eating places; cafeterias; special food services, such as food service contractors, caterers, and mobile food services; and, bars, taverns, and other drinking places. For purposes of this revenue procedure, the trade or business of operating a restaurant or tavern also may include food or beverage services at grocery stores, hotels and motels,

(b) Scope limitations inapplicable . A taxpayer that wants to make this change is not subject to the scope limitations in section 4.02 of this revenue procedure.

(2) Change for prior taxable years . A taxpayer is permitted to make the change in accounting method described in section 13.02(1)(a) of this Appendix for any taxable year ending before December 31, 2000, provided the year is not barred by the statute of limitations, there is no closed taxable year after the year of change, and the taxpayer complies with the following requirements:

(a) the taxpayer must attach a completed Form 3115 to an amended return for the year of change, and must file, on or before December 31, 2001, that amended return and amended returns for all subsequent affected taxable years, if any; and

(b) the taxpayer must file a copy of the Form 3115 with the national office no later than when the original Form 3115 is filed with the amended return.

(3) Section 481(a) adjustment period . A taxpayer making this change must take the entire § 481(a) adjustment into account in computing taxable income for the year of change.

26 CFR 601.204: Changes in accounting periods and methods of accounting. (Also Part I, §§ 162, 263(a), 446, 481; 1.162–3, 1.263(a)–1, 1.446–1, 1.481–1.)

Rev. Proc. 2002–12