SECTION 12. EFFECTIVE DATE

.01 In general . Except as provided in section 12.02 of this revenue procedure, this revenue procedure is effective for applications filed on or after August 18, 2008, for a year of change ending on or after December 31, 2007. The Service will return any application that is filed with the national office after August 18, 2008, for a year of change ending on or after December 31, 2007, if the application is filed pursuant to the Code, regulations, or other guidance published in the IRB other than this revenue procedure and the change in method of accounting appears to be within the scope of this revenue procedure.

.02 Transition rules . The following transition rules apply.

(1) Forms 3115 filed under Rev. Proc. 97–27 . If before August 18, 2008, a taxpayer within the scope of Rev. Proc. 97–27 timely filed a Form 3115 under Rev. Proc. 97–27 requesting consent for a change in method of accounting described in the APPENDIX of this revenue procedure for a year of change ending on or after December 31, 2007, and the Form 3115 is pending with the national office on August 18, 2008, the taxpayer may choose to make the change under this revenue procedure if the taxpayer is otherwise eligible under this revenue procedure. The taxpayer must notify the national office of its intent to make the change under this revenue procedure prior to the later of September 18, 2008, or the issuance of a letter ruling granting or denying consent for the change. If the taxpayer timely no

that are necessary to bring the change in method of accounting into compliance with all applicable provisions of this revenue procedure.

The director may impose any otherwise applicable penalty, addition to tax, or additional amount on the understatement of tax attributable to the change in method of accounting.

.03 National office consideration . If the director recommends that a change in method of accounting (other than the § 481(a) adjustment) made in compliance with all the applicable provisions of this revenue procedure should be modified or revoked, the director will forward the matter to the national office for consideration before any further action is taken. Such a referral to the national office will be treated as a request for technical advice, and the provisions of Rev. Proc. 2008–2 (or any successor) will be followed.