SECTION 4. APPLICATION

.01 Subject to subsection .02 of this section 4, if a taxpayer is within the scope of this revenue procedure, the Commissioner will not challenge the taxpayer’s treatment of credit card cash advance fees as creating or increasing the amount of OID on a pool of credit card loans that includes the cash advances that give rise to those fees.

.02 Subsection .01 of section 4 of this revenue procedure applies only if the taxpayer satisfies all of the requirements of section 5 of this revenue procedure and, if the taxpayer is changing its method of accounting, all of the requirements of section 6 of this revenue procedure.

August 8, 2005 270 2005–32 I.R.B.

loans that includes the cash advances that give rise to those fees 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, before an appeals office, or before the U.S. Tax Court for any taxable year that ends before December 31, 2004, that issue will not be further pursued by the Service.

.03 Neither the audit protection provided in connection with a change in a taxpayer’s method of accounting for credit card cash advance fees that is properly made under section 6 of this revenue procedure nor the audit protection provided under sections 7.01 and 7.02 of this revenue procedure is a determination by the Commissioner that the taxpayer is properly accounting for any OID income on that pool of credit card loans. Thus, for example, the Service is not precluded from pursuing the issue of whether, under § 1272(a)(6), a taxpayer is correctly accounting for its OID income (including any OID attributable to credit card cash advance fees) on its pool of credit card loans.