SECTION 4. EFFECTIVE DATE

.01 In General . Except as otherwise provided in sections 4.02 and 4.03 of this revenue procedure, this revenue procedure is effective for taxable years ending on or after December 31, 2001.

.02 Changes to Scope Restrictions of Rev. Proc. 97–27 . Notwithstanding section 4.01 of this revenue procedure, the changes to the scope restrictions of Rev. Proc. 97–27 provided in section 2.03(1)(a) and (b), 2.03(2)(a) and (b), and 2.03(3)(a) and (b) of this revenue procedure are effective for taxable years ending on or after March 14, 2002.

.03 Notional Principal Contracts . Notwithstanding section 4.01 of this revenue procedure, the deletion of section 14.02 of Rev. Proc. 97–27 is effective for Forms 3115 pending with the national office on March 14, 2002.

.04 Transition Rules .

(1) Applications Under Rev. Proc. 2002–9 . (a) If a taxpayer has filed its federal income tax return on or before April 15, 2002, for a taxable year ending on or after December 31, 2001, and wants to change a method of accounting for such taxable year under Rev. Proc. 2002–9 for an issue pending at examination, or an issue under consideration by an area office or by a federal court, without audit protection, as permitted under this revenue procedure, then the taxpayer must comply with the requirements of this section 4.04(1)(a). The taxpayer must complete and file a Form 3115 in duplicate. The original must be attached to the taxpayer’s amended federal income tax return for the year of change. The amended return must be filed no later than September 10, 2002. A copy of the Form 3115 must be filed with the national office (see section 6.02(6) of Rev. Proc. 2002–9 for the address) no later than when the taxpayer’s amended return is filed.

(b) If a taxpayer has applied to change a method of accounting under Rev. Proc. 2002–9 for a taxable year ending on or after December 31, 2001, by filing an application with its federal

income tax return on or before April 15, 2002, such change in method of accounting results in a net negative § 481(a) adjustment, and the taxpayer wants to apply the one-year § 481(a) adjustment period of this revenue procedure to the change, then the taxpayer must comply with the requirements of this section 4.04(1)(b). The taxpayer must complete and file a revised Form 3115 in duplicate, reflecting the one-year § 481(a) adjustment period. The original must be attached to the taxpayer’s amended federal income tax return for the year of change. The amended return must be filed no later than September 10, 2002. A copy of the revised Form 3115 must be filed with the national office (see section 6.02(6) of Rev. Proc. 2002–9 for the address) no later than when the taxpayer’s amended return is filed. Both the original and the copy of the application filed with the national office should be labeled “Substitute Application under Rev. Proc. 2002–19.” (c) If a taxpayer has filed a copy of an application to change a method of accounting under Rev. Proc. 2002–9 for a taxable year ending on or after December 31, 2001, with the national office on or before April 15, 2002, but has not filed its federal income tax return with the original application attached by April 15, 2002, such change in method of accounting results in a net negative § 481(a) adjustment, and the taxpayer wants to apply the one-year § 481(a) adjustment period of this revenue procedure to the change, then the taxpayer must comply with the requirements of this section 4.04(1)(c). The taxpayer must complete and file a revised Form 3115 in duplicate, reflecting the one-year § 481(a) adjustment period. The revised original Form 3115 must be attached to the taxpayer’s timely filed federal income tax return for the year of change. The revised copy of the Form 3115 must be filed with the national office (see section 6.02(6) of Rev. Proc. 2002–9 for the address) no later than when the taxpayer’s original federal income tax return is filed. The copy of the application filed with the

2002-13 I.R.B. 700 April 1, 2002