SECTION 6. PROCEDURES FOR

ELECTING OPTIONAL TERMS AND CONDITIONS OF SECTION 5.

.01 Time and Manner for Making Elec- tions

(1) In general . The election to apply either the Modified Carryback Term and Condition of section 4.01 of this revenue procedure, or the Alternative Carryback Term and Condition of section 5.03 of this revenue procedure, must be made on a statement filed with the appropriate Internal Revenue Service Center in accordance with the procedures described in this section 6.01. A taxpayer wishing to make one of the Special Elections for Consolidated Groups under section 5.04 of this revenue procedure must make such election with the election to apply either the Modified Car

2003–18 I.R.B. 858 May 5, 2003

and conditions of section 5 of this revenue procedure by following the procedures of section 6 of this revenue procedure.

.02 Applications Filed Under Rev. Proc. 2002–39. For a taxpayer within the scope of Rev. Proc. 2002–39:

(1) In general . This revenue procedure is effective for applications filed on or after April 8, 2003; and

(2) Transition rule . If a taxpayer filed an application to change the taxpayer’s annual accounting period before April 8, 2003, and the application is pending with the national office on April 8, 2003, the taxpayer may request that the application be processed in accordance with this revenue procedure. However, the national office will process applications filed before April 8, 2003, in accordance with prior authority unless, prior to the later of June 9, 2003, or the issuance of the letter ruling granting or denying consent to the adoption, change, or retention, the taxpayer notifies the national office that the taxpayer desires that the taxpayer’s application be processed in accordance with this revenue procedure.

.03 Taxpayers With Prior Accounting Pe- riod Changes . For a taxpayer described in section 3.02 of this revenue procedure, this revenue procedure is effective for changes in the taxpayer’s annual accounting period if the short period necessary to effect the change began on or after February 1, 2000.

DRAFTING INFORMATION

The principal authors of this revenue procedure are Roy A. Hirschhorn and Michael Schmit of the Office of Associate Chief Counsel (Income Tax and Accounting). For further information regarding this revenue procedure, contact Mr. Hirschhorn or Mr. Schmit at (202) 622– 4960 (not a toll-free call).

Industry Issue Resolution Program

Rev. Proc. 2003–36