SECTION 5. EFFECT ON OTHER

DOCUMENTS

.01 Rev. Proc. 2004–11 is clarified, modified, amplified, and superseded.

.02 The heading for section 2 of the APPENDIX of Rev. Proc. 2002–9 is modified to read as follows: “SECTION 2. DEPRECIATION OR AMORTIZATION (§ 56(a)(1), 56(g)(4)(A), 167, 168, 197, 1400I, 1400L, OR 1400N(d), OR FORMER § 168)”.

.03 Rev. Proc. 2002–9 (as modified by Rev. Proc. 2004–11) is modified by deleting sections 2.01, 2.02, 2B, and 2.05 of the APPENDIX and replacing them with the text in, respectively, sections 1, 2, 3, and 4 of the APPENDIX of this revenue procedure.

.04 Section 6.03 of Rev. Proc. 2000–38, 2000–2 C.B. 310, 313, is modified by deleting “ See § 1.446–1(e)(2)(ii)( b ).” and replacing it with “ See § 1.446–1(e)(2)(ii)( d )( 3 )( i ).”

.05 Section 8.01 of Rev. Proc. 2000–50, 2000–2 C.B. 601, is modified to read as follows: “A change in a taxpayer’s treatment of costs paid or incurred to develop, purchase, lease, or license computer software to a method described in section 5, 6, or 7 of this revenue procedure is a change in method of accounting to which §§ 446 and 481 apply. Further, a change in useful life under the method described in section 6.01(2) of this revenue procedure is a change in method of accounting to which §§ 446 and 481 apply. Additionally, if a taxpayer is currently treating costs paid or incurred to develop computer software under section 5.01(2) of this revenue procedure in accordance with the rules provided in § 167(f)(1) and the regulations thereunder but is not currently using a useful life of 36 months, a change in useful life to 36 months is a change in method of accounting to which §§ 446 and 481 apply. See § 1.446–1(e)(2)(ii)( d )( 3 )( i ).