SECTION 7. CHANGE IN METHOD

OF ACCOUNTING

A change in a taxpayer’s treatment of advance payments to either of the methods described in section 5 of this revenue procedure is a change in method of accounting to which the provisions of §§ 446 and 481, and the regulations thereunder, apply. Therefore, a taxpayer within the scope of this revenue procedure that wants to use one of the methods of accounting provided in section 5 of this revenue procedure, and that does not currently use that method, must follow the automatic change in method of accounting provisions in Rev. Proc. 2002–9, 2002–3 I.R.B. 327 (or its successor), as modified by Rev. Proc. 2002– 19, 2002–13 I.R.B. 696, Announcement 2002–17, 2002–8 I.R.B. 561, and Rev. Proc. 2002–54, 2002–35 I.R.B. 432, with the following modifications:

.01 The scope limitations in section 4.02 of Rev. Proc. 2002–9 do not apply to a taxpayer that wants to change its method for its first or second taxable year ending on or after [insert date of publication of final revenue procedure] provided the taxpayer’s method of accounting for advance payments is not an issue under consideration for taxable years under examination, within the meaning of section 3.09 of Rev. Proc. 2002–9, at the time the Form 3115 is filed with the national office; .02 A taxpayer that wants to change its method for its first taxable year ending on or after [insert date of publication of final revenue procedure], that on or before

[insert date 30 days from date of publication of final revenue procedure] files its original federal income tax return for that year is not required to comply with the filing requirement in section 6.02(3)(a) of Rev. Proc. 2002–9, provided the taxpayer complies with the following filing requirements. The taxpayer must complete and file a Form 3115 in duplicate. The original must be attached to an amended federal income

2002–50 I.R.B. 967 December 16, 2002

Rul. 68–44, 1968–1 C.B. 191; Rev. Rul. 65–141, 1965–1 C.B. 210; and Rev. Rul. 60–85, 1960–1 C.B. 181.