SECTION 4. APPLICATION

.01 Automatic change in method of ac- counting .

(1) In general . A taxpayer seeking to make a change within the scope of section 3.01(1) through (5) of this revenue procedure, in accordance with section 6.01 of Rev. Proc. 2002–9, is granted the consent of the Commissioner to change to a method of accounting provided in the final regulations, to a periodic system, or to a specific charge-off method, as applicable, provided that the taxpayer follows the automatic change in method of accounting provisions in Rev. Proc. 2002–9, or its successor, subject to the following modifications:

(a) The scope limitations in section 4.02 of Rev. Proc. 2002–9 do not apply for the taxpayer’s first taxable year ending on or after August 31, 2006. However, if the taxpayer’s NAE method of accounting is an issue under consideration for tax

26 CFR 601.204: Changes in accounting periods and in methods of accounting. (Also Part I, §§ 446, 448, 481.)

Rev. Proc. 2006–56