SECTION 6. CHANGE IN

ACCOUNTING METHOD

.01 In General . A change in a taxpayer’s method of accounting for advance trade discounts to the Advance Trade Discount Method provided for in section 4 of this revenue procedure is a change in method of accounting to which the provisions of §§ 446 and 481 and the regulations thereunder apply. Therefore, a taxpayer within the scope of this revenue procedure that wants to change to the Advance Trade Discount Method for taxable years ending on or after July 2, 2007, must obtain the consent of the Commissioner under § 446(e) and § 1.446–1(e)(3).

.02 Automatic Change. A taxpayer within the scope of this revenue procedure that wants to change to the Advance Trade Discount Method must obtain the consent of the Commissioner by following the automatic change in method of accounting procedures in Rev. Proc. 2002–9, 2002–1 C.B. 327 (as modified and clarified by Announcement 2002–17, 2002–1 C.B. 561, modified and amplified by Rev. Proc. 2002–19, 2002–1 C.B. 696, and amplified, clarified, and modified by Rev. Proc. 2002–54, 2002–2 C.B. 432) (or its successor), with the following additional modifications: (1) the scope limitations in section 4.02 of Rev. Proc. 2002–9 do not apply to a taxpayer that wants to make the change for its first taxable year ending on or after July 2, 2007; and (2) for purposes of section 6.02(4)(a) of Rev. Proc. 2002–9, the taxpayer must include on Line 1a of the Form 3115 the designated auto

July 23, 2007 235 2007–30 I.R.B.