Part III. — Internal Revenue Bulletin 2002-8

Resident Population Figures

New Mexico 1,829,146 New York 19,011,378 North Carolina 8,186,268 North Dakota 634,448 Northern Mariana Islands 69,221

Ohio 11,373,541 Oklahoma 3,460,097 Oregon 3,472,867

Pennsylvania 12,287,150 Puerto Rico 3,839,810

Rhode Island 1,058,920

South Carolina 4,063,011

South Dakota 756,600

Tennessee 5,740,021

Texas 21,325,018

U.S. Virgin Islands 108,612

Utah 2,269,789

Vermont 613,090

Virginia 7,187,734

Washington 5,987,973 West Virginia 1,801,916

Wisconsin 5,401,906 Wyoming 494,423

The principal authors of this notice are Christopher J. Wilson, Office of the Associate Chief Counsel (Passthroughs and Special Industries) and Timothy L. Jones, Office of the Chief Counsel (Tax-Exempt and Government Entities). For further information regarding this notice, contact Mr. Wilson at (808) 539–2874 or Susan Reaman at (202) 622–3040 (not toll-free calls).

Low-Income Housing Tax Credit—2002 Calendar Year Resident Population Estimates

Notice 2002–13

This notice informs (1) state and local housing credit agencies that allocate lowincome housing tax credits under § 42 of the Internal Revenue Code and (2) states and other issuers of tax-exempt private activity bonds under § 141, of the proper population figures to be used for calculating the 2002 calendar year populationbased component of the state housing credit ceiling (Credit Ceiling) under § 42(h)(3)(C)(ii) and the 2002 calendar year volume cap (Volume Cap) under § 146.

The population figures both for the population-based component of the Credit Ceiling and for the Volume Cap are determined by reference to § 146(j). That section provides generally that determinations of population for any calendar year are made on the basis of the most recent census estimate of the resident population of a state (or issuing authority) released by the Bureau of the Census before the beginning of such calendar year.

The proper population figures for calculating the Credit Ceiling and the Volume Cap for the 2002 calendar year are the estimates of the resident population of the 50 states and the District of Columbia, released by the Bureau of the Census on December 28, 2001, in Press Release CB01–203. The proper population figures for calculating the Credit Ceiling and the Volume Cap for the 2002 calendar year for Puerto Rico are the estimates of the resident population for July 1, 2001, released by the Bureau of the Census on December 31, 2001, in Press Release CB01–205. The proper population figures for calculating the Credit Ceiling and the Volume Cap for the 2002 calendar year for the insular areas (American Samoa, Guam, Northern Mariana Islands, and U.S. Virgin Islands) are the figures released by the Bureau of the Census on July 3, 2001, in press release CB01– CN.1. For convenience, these estimates are reprinted below.

Resident Population Figures

Alabama 4,464,356 Alaska 634,892 American Samoa 57,291 Arizona 5,307,331 Arkansas 2,692,090

California 34,501,130 Colorado 4,417,714 Connecticut 3,425,074

Delaware 796,165 D.C. 571,822

Florida 16,396,515

Georgia 8,383,915

Guam 154,805

Hawaii 1,224,398

Idaho 1,321,006

Illinois 12,482,301

Indiana 6,114,745

Iowa 2,923,179

Kansas 2,694,641

Kentucky 4,065,556

Louisiana 4,465,430

Maine 1,286,670 Maryland 5,375,156

Massachusetts 6,379,304 Michigan 9,990,817 Minnesota 4,972,294 Mississippi 2,858,029 Missouri 5,629,707

Montana 904,433

Nebraska 1,713,235

Nevada 2,106,074 New Hampshire 1,259,181 New Jersey 8,484,431

2002–8 I.R.B. 547 February 25, 2002

year. This procedure allows a taxpayer to obtain a refund without having to file an amended return for the year to which the taxpayer carries back the loss or credit. Normally, the twelve month period for filing for the tentative carryback falls after the filing due date even if the filing due date is extended for six months under section 6081. Taxpayers affected by the September 11, 2001, Terrorist Attack that received a filing extension and/or postponement under Notice 2001–61, however, now have a due date for the return that falls after the 12 month period provided by section 6411. In cases where the due date for filing for the tentative carryback under section 6411 falls outside the window period provided by section C, paragraph (3) of Notice 2001–68, such taxpayers would have to file for their tentative carryback before they filed the return for the year the loss or credit arose. To remedy this situation, this notice expands the relief provided by section C, paragraph (3) of Notice 2001–68 by providing affected taxpayers with an additional 120 days in which to file for their tentative carryback under section 6411 if Notice 2001–61 extended and/or postponed the due date of their income tax return.

For example, an affected individual income taxpayer who obtained an extension of time to file the 2000 tax return until October 15, 2001, would qualify for a 120-day postponement of time to file under Notice 2001–61 until February 12, 2002. Under section 6411, the last day the taxpayer could file Form 1045 would be December 31, 2001. This date is not within the period provided by Notice 2001–61. Thus, without this notice, the taxpayer would need to file Form 1045 before the return is due. Under this notice, however, the taxpayer will have an additional 120 days from December 31, 2001 (the last day for applying for the tentative carryback under section 6411), to file Form 1045.

Taxpayers who believe they are entitled to relief under this notice should mark “September 11, 2001 Terrorist Attack” in red ink on the top of their Form 1139 or 1045 submitted to the IRS. Taxpayers should not put this notation on envelopes. Doing so may result in a delay in the delivery or processing of the return or document.

Permission to Change to the Cash Method of Accounting

Notice 2002–14

Notice 2001–76 (2001–52 I.R.B. 613) sets forth a proposed revenue procedure that would permit certain small businesses with average annual gross receipts of $10 million or less to use the cash receipts and disbursements method of accounting (“cash method”) and to treat inventoriable items as non-incidental materials and supplies (“materials and supplies method”) with respect to eligible trades or businesses. Pursuant to the Commissioner’s discretion under § 446(e) of the Internal Revenue Code, this notice provides that any qualifying small business taxpayer within the scope of the proposed revenue procedure (“small business taxpayer”) may change to these methods of accounting with respect to its eligible trades or businesses for any taxable year ending on or after December 31, 2001.

Pending publication of a final revenue procedure in the Internal Revenue Bulletin, a small business taxpayer may obtain automatic consent to change to the cash method and the materials and supplies method by complying with the procedures provided in the proposed revenue procedure. These procedures state that a small business taxpayer may change to the cash method and the materials and supplies method for any taxable year ending on or after December 31, 2001, by attaching the original Form 3115, Appli- cation for Change in Accounting Method, to its timely filed (including extensions) federal income tax return for that year (or on an amended return filed within six months of the original due date of the return), filing a duplicate of the Form 3115 with the Internal Revenue Service’s National Office, and complying with the provisions of Rev. Proc. 2002–9 (2002–3 I.R.B. 327) as modified by the proposed revenue procedure. Both changes may be made on a single Form 3115. A taxpayer that has fully complied with these procedures has obtained the consent of the Commissioner under § 446(e) to change its method of accounting to these methods.

DRAFTING INFORMATION

The principal author of this notice is Cheryl L. Oseekey of the Office of Associate Chief Counsel (Income Tax and Accounting). For further information regarding this notice, contact Ms. Oseekey at (202) 622–4970 (not a tollfree call).

Additional Disaster Relief for Taxpayers Affected by the September 11, 2001, Terrorist Attack

Notice 2002–15

PURPOSE

This notice supplements the tax relief granted in Notice 2001–61 (2001–40 I.R.B. 305) (October 1, 2001), and Notice 2001–68 (2001–47 I.R.B. 504) (November 19, 2001), for taxpayers affected by the September 11, 2001, Terrorist Attack by providing an additional postponement of time for certain affected taxpayers to apply for a tentative carryback adjustment under I.R.C. § 6411. The relief provided to taxpayers in this notice will apply retroactively to September 11, 2001.

GRANT OF RELIEF

Paragraph (3) of the Additional Grant of Relief section (Section C) of Notice 2001–68, granted to all affected taxpayers a 120-day postponement of time to perform the acts listed in Rev. Proc. 2001–53 (2001–47 I.R.B 506) (November 19, 2001), if the last day to perform the act would otherwise fall within the period beginning on September 11, 2001, and ending on November 30, 2001 (the “window period”). One of the acts listed in Rev. Proc. 2001–53 is the application under section 6411 for a tentative carryback adjustment of the tax for a prior taxable year. To apply for a tentative carryback adjustment, corporate taxpayers must file Form 1139 and noncorporate taxpayers must file Form 1045 on or after the due date of the return for the taxable year that generates the net operating loss, net capital loss, or unused business credit from which the carryback results and within 12 months after the end of such

February 25, 2002 548 2002–8 I.R.B.

DRAFTING INFORMATION

This notice was drafted by the Office of Associate Chief Counsel, Procedure and Administration (Administrative Provisions and Judicial Practice Division). For further information regarding this notice, you may call (202) 622–4940 (not a toll-free call).

26 CFR 601.105: Examination of returns and claims for refund, credit, or abatement; determination of correct tax liability. (Also, Part 1, 280G.)

Rev. Proc. 2002–13