SECTION 1. PURPOSE

This revenue procedure provides heavy equipment dealers (as defined in section 4.05 of this revenue procedure) with a safe harbor method of accounting for their heavy equipment parts inventory (as defined in section 4.06 of this revenue procedure). This safe harbor method permits heavy equipment dealers to approximate the cost of their heavy equipment parts inventory using the replacement cost of the heavy equipment parts pursuant to the replacement cost method described in section 4 of this revenue procedure. This revenue procedure also provides procedures for heavy equipment dealers to obtain the automatic consent of the Commissioner to change to the replacement cost method.