SECTION 5. CHANGE IN METHOD

OF ACCOUNTING

.01 In General . A change in the treatment of payroll tax liabilities to conform to the safe harbor method provided by this revenue procedure is a change in method of accounting to which the provisions of §§ 446 and 481 and the regulations thereunder apply.

.02 Automatic change to the safe har- bor method. A taxpayer within the scope of this revenue procedure that wants to change its treatment of payroll tax liabilities to conform to the safe harbor method of accounting provided in this revenue procedure (including a change to use the recurring item exception for such payroll tax liabilities) must follow the automatic change in accounting method provisions of Rev. Proc. 2002–9, with the following modifications:

(i) The scope limitations in section 4.02 of Rev. Proc. 2002–9 do not apply to a taxpayer that wants to make the change

2008–13 I.R.B. 687 March 31, 2008

or before a federal court, the issue will not be further pursued by the Service.

DRAFTING INFORMATION

The principal author of this revenue procedure is Martin L. Osborne of the Office of Associate Chief Counsel (Income Tax & Accounting). For further information regarding this revenue procedure, contact Martin L. Osborne at (202) 622–7900 (not a toll-free call).

for its first taxable year ending on or after December 31, 2007.

(ii) For purposes of completing line 1a of Form 3115, Application for Change in Accounting Method, the designated automatic accounting method change number for the change in method of accounting provided in this revenue procedure is No. 113.