SECTION 5. AUDIT PROTECTION

FOR TAXPAYERS CURRENTLY USING THE REPLACEMENT COST METHOD

A taxpayer within the scope of this revenue procedure that is using the replacement cost method provided in section 4 of this revenue procedure on January 4, 2006, may continue to use this safe harbor method for taxable years ending on or after April 30, 2005, without filing a Form 3115, Application for Change in Account- ing Method . Such taxpayer’s method of using replacement cost to determine cost for its heavy equipment parts inventory will not be raised as an issue by the Service in a taxable year that ends before April 30, 2005. Moreover, if such taxpayer’s method of using replacement cost to determine cost for its heavy equipment parts inventory is already an issue under consideration in a taxable year that ends before April 30, 2005, the issue will not be further pursued by the Service.