SECTION 6. EFFECT ON OTHER

DOCUMENTS

Rev. Proc. 2002–9 is modified and amplified to include this automatic change in section 4.01 of the APPENDIX.

DRAFTING INFORMATION

The principal authors of this revenue procedure are John W. Rogers III and Tina Jannotta of the Office of Associate Chief Counsel (Financial Institutions and Products). For further information regarding this revenue procedure, contact Mr. Rogers at (202) 622–3950 (not a toll-free call).

and 481 of the Internal Revenue Code and the regulations thereunder apply.

.03 Under § 446(e) and § 1.446–1(e)(2)(i), a taxpayer generally must secure the consent of the Commissioner before changing a method of accounting for federal income tax purposes. Section 1.446–1(e)(3)(ii) authorizes the Commissioner to prescribe administrative procedures setting forth the terms and conditions necessary to obtain consent to change a method of accounting. Except as provided in sections 3 and 4 of this revenue procedure, a taxpayer seeking to change the taxpayer’s method of accounting for inducement fees must follow the advance consent procedures of Rev. Proc. 97–27, 1997–1 C.B. 680 (or successor), as modified and amplified by Rev. Proc. 2002–19, 2002–1 C.B. 696, as amplified and clarified by Rev. Proc. 2002–54, 2002–2 C.B. 432. .04 Rev. Proc. 2002–9, 2002–1 C.B. 327 (as modified and clarified by Announcement 2002–17, 2002–1 C.B. 561, modified and amplified by Rev. Proc. 2002–19, 2002–1 C.B. 696, and amplified, clarified, and modified by Rev. Proc. 2002–54, 2002–2 C.B. 432), provides procedures by which taxpayers may obtain automatic consent to change to the methods of accounting described in the Appendix of the revenue procedure. Section 5.03 of Rev. Proc. 2002–9 provides

that, unless otherwise provided, a taxpayer making a change in method of accounting under the revenue procedure must take into account a § 481(a) adjustment in the manner provided in section 5.04 of the revenue procedure.