SECTION 4. AUDIT PROTECTION

FOR TAXPAYERS CURRENTLY USING THE ACTUAL EXPERIENCE METHOD

If a taxpayer uses the actual experience method described in section 3.02(2) of this notice to determine its NAE amount, the taxpayer’s use of that method will not be raised as an issue by the Service in a taxable year that ends before January 22, 2003. If the taxpayer uses the actual experience method described in section 3.02(2) of this notice, and its use of that method is an issue under consideration (within the meaning of section 3.09 of Rev. Proc. 2002–9) in examination, in appeals, or before the U.S. Tax Court in a taxable year that ends before January 22, 2003, that issue will not be further pursued by the Service.