SECTION 5. ACCOUNTING METHODS AND PERIODS—CONTINUED

Statute or Regulation Act Postponed 2. Treas. Reg. If the acquiring § 1.381(c)(4)–1(d)(2) used by the

2. Treas. Reg. If the acquiring corporation is not permitted to use the method of accounting § 1.381(c)(4)–1(d)(2) used by the acquiring corporation, the method of accounting used by the

distributor/transferor corporation, or the principal method of accounting; or if the corporation wishes to use a new method of accounting, then the acquiring corporation must apply to the Commissioner to use another method. Treas. Reg. § 1.381(c)(4)–1(d)(2) requires applications to be filed not later than 90 days after the date of distribution or transfer. Rev. Proc. 83–77, 1983–2 C.B. 594, provides an automatic 90-day extension. 3. Treas. Reg. § 1.381(c)(5)–1(d)(2) If the acquiring corporation is not permitted to use the inventory method used by the acquiring corporation, the inventory method used by the distributor/transferor corporation, or the principal method of accounting, or wishes to use a new method of accounting, then the acquiring corporation must apply to the Commissioner to use another method. Treas. Reg. § 1.381(c)(5)1(d)(2) requires applications to be filed not later than 90 days after the date of distribution or transfer. Rev. Proc. 83-77 provides an automatic 90-day extension. 4. Treas. Reg. § 1.442–1(b)(1) In order to secure prior approval of an adoption, change or retention of a taxpayer’s annual accounting period, the taxpayer generally must file an application on Form 1128, Application to Adopt, Change, or Retain a Tax Year, with the Commissioner within such time as is provided in administrative procedures published by the Commissioner from time to time. See, for example, Rev. Procs. 66–50, 1966–2 C.B. 1260, 2002–37, 2002–22 I.R.B. 1030, 2002–38, 2002–22 I.R.B. 1037, and 2002–39, 2002–22 I.R.B. 1046. 5. Treas. Reg. A section 444 election must be made by filing Form 8716, Election to Have a § 1.444–3T(b)(1) Tax Year Other Than a Required Tax Year, with the Service Center. Generally,

5. Treas. Reg. A section 444 election must be made by filing Form 8716, Election to Have a § 1.444–3T(b)(1) Tax Year Other Than a Required Tax Year, with the Service Center. Generally,

Form 8716 must be filed by the earlier of (a) the 15th day of the fifth month following the month that includes the first day of the taxable year for which the election will first be effective, or (b) the due date (without regard to extensions) of the income tax return resulting from the section 444 election. 6. Treas. Reg. Section 6 of Rev. Proc. 2002–9, 2002–3 I.R.B. 327, 341, allows a taxpayer to § 1.446–1(e)(2)(i) change a method of accounting within the terms of the revenue procedure by

6. Treas. Reg. Section 6 of Rev. Proc. 2002–9, 2002–3 I.R.B. 327, 341, allows a taxpayer to § 1.446–1(e)(2)(i) change a method of accounting within the terms of the revenue procedure by

attaching the application form to the timely filed return for the year of change. Section 6.02(3)(b) grants an automatic extension of 6 months within which to file an amended return with the application for the change following a timely filed original return for the year of change. 7. Treas. Reg. To secure the Commissioner’s consent to a change in method of accounting, the § 1.446–1(e)(3)(i) taxpayer must file an application on Form 3115, Application for Change in

7. Treas. Reg. To secure the Commissioner’s consent to a change in method of accounting, the § 1.446–1(e)(3)(i) taxpayer must file an application on Form 3115, Application for Change in

Accounting Method, with the Commissioner during the taxable year in which the taxpayer desires to make the change in method of accounting ( i.e., must be filed by the last day of such taxable year). This filing requirement is also in Rev. Proc. 97–27, 1997–1 C.B. 680. (But see Rev. Proc. 2002–9 for automatic changes in method of accounting that can be made with the return.) 8. Treas. Reg. A taxpayer may elect, with the consent of the Commissioner, to accrue real § 1.461–1(c)(3)(ii) property taxes ratably in accordance with section 461(c). A written request for

8. Treas. Reg. A taxpayer may elect, with the consent of the Commissioner, to accrue real § 1.461–1(c)(3)(ii) property taxes ratably in accordance with section 461(c). A written request for

permission to make such an election must be submitted within 90 days after the beginning of the taxable year to which the election is first applicable. Rev. Proc. 83–77 provides an automatic 90-day extension. 9. Treas. Reg. A partnership or S corporation must file the Form 8752, Required Payment or § 1.7519–2T(a)(2), (3) and (4) Refund Under Section 7519, if the taxpayer has made an election under section

A partnership or S corporation must file the Form 8752, Required Payment or Refund Under Section 7519, if the taxpayer has made an election under section 444 to use a taxable year other than its required taxable year and the election is still in effect. The Form 8752 must be filed and any required payment must be made by the date stated in the instructions to Form 8752.

November 18, 2002 852 2002–46 I.R.B.