SECTION 3. PROCEDURES FOR

RETURNS TIMELY FILED FOR A TAXABLE YEAR THAT INCLUDED SEPTEMBER 11, 2001

.01 30-Percent Additional First Year Depreciation .

(1) In general . If a taxpayer timely filed its federal tax return for a taxable year that included September 11, 2001, and did not claim on that return the 30-percent additional first year depreciation for a class of property that is qualified property or Liberty Zone property placed in service by the taxpayer after September 10, 2001, during the taxable year that included September 11, 2001, but wants to do so, the taxpayer may claim the 30-percent additional first year depreciation for that class of property under this section 3.01, provided the taxpayer did not make an election in the manner described in section 3.02(1) or (2) of this revenue procedure not to deduct the 30-percent additional first year depreciation for the class of property. The taxpayer has the option of claiming the 30-percent additional first year depreciation for the taxable year that included September 11, 2001: (a) by filing an amended federal tax return (or a qualified amended return under Rev. Proc. 94–69, 1994–2 C.B. 804, if applicable; hereinafter, referred to in this document as a “qualified amended return”) on or before December 31, 2003, for the taxable year that included September 11, 2001, and any affected subsequent taxable year, and including the statement “Filed Pursuant to Rev. Proc. 2003–50” at the

top of any amended federal tax return (or qualified amended return);

(b) by filing a Form 3115, Application for Change in Accounting Method, with the taxpayer’s timely filed federal tax return for the first taxable year succeeding the taxable year that included September 11, 2001, if this return has not been filed on or before July 21, 2003, and the taxpayer owns the property as of the first day of this taxable year; or

(c) if the taxpayer’s federal tax return for the first taxable year succeeding the taxable year that included September 11, 2001, was filed on or before July 21, 2003, by

(i) filing an amended federal tax return (or a qualified amended return) on or before December 31, 2003, for the first taxable year succeeding the taxable year that included September 11, 2001, attaching a Form 3115 to the amended federal tax return, and including the statement “Filed Pursuant to Rev. Proc. 2003–50” at the top of the amended federal tax return (or qualified amended return); or

(ii) filing a Form 3115 with the taxpayer’s timely filed federal tax return for the second taxable year succeeding the taxable year that included September 11, 2001, and ending on or before July 31, 2004, if the taxpayer owns the property as of the first day of this taxable year.

(2) Automatic change in method of ac- counting . The Form 3115 is to be completed and filed in accordance with the automatic change in method of accounting provisions in Rev. Proc. 2002–9, 2002–1 C.B. 327 (as modified and amplified by Rev. Proc. 2002–19, 2002–1 C.B. 696, as amplified, clarified, and modified by Rev. Proc. 2002–54, 2002–35 I.R.B. 432, and as modified and clarified by Announcement 2002–17, 2002–1 C.B. 561) or any successor, with the following modifications:

(a) The scope limitations in section 4.02 of Rev. Proc. 2002–9 do not apply; and

(b) To assist the Service in processing changes in method of accounting under this section of the revenue procedure, and to ensure proper handling, section 6.02(4)(a) of Rev. Proc. 2002–9 is modified to require that a Form 3115 filed under this revenue procedure include the statement: “Automatic Change Filed Under Rev. Proc. 2003–50.” This statement should be legibly printed or typed on the

July 21, 2003 120 2003-29 I.R.B.

contact Mr. Kim at (202) 622–3110 (not a toll-free call).

26 CFR 601.105: Examination of returns and claims for refund, credit or abatement; determination of cor- rect tax liability. (Also Part I, § 338; 1.338–1.)

Rev. Proc. 2003–51