SECTION 13. EFFECTIVE DATE

.01 In general .

(1) Rev. Proc. 2011–14 . Except as provided in section 13.02 of this revenue procedure, this revenue procedure is effective for applications filed on or after January 10, 2011, for a year of change ending on or after April 30, 2010. The Service will return any application that is filed with the national office on or after January 10, 2011, for a year of change ending on or after April 30, 2010, 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.

(2) Rev. Proc. 97–27 . This revenue procedure is effective for Forms 3115 filed under Rev. Proc. 97–27, as amplified and modified by Rev. Proc. 2002–19, as amplified and clarified by Rev. Proc. 2002–54, as modified by Rev. Proc. 2007–67, as clarified and modified by Rev. Proc. 2009–39, and as clarified and modified by this revenue procedure, filed on or after January 10, 2011, for a year of change ending on or after January 10, 2011.

.02 Transition rules . The following transition rules apply:

(1) Forms 3115 filed under Rev. Proc. 97–27 . If before January 10, 2011, 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 April 30, 2010, and the Form 3115 is pending with the national office on January 10, 2011, the taxpayer may choose to make the change under this revenue procedure if the taxpayer is otherwise eligible under this revenue procedure. If the taxpayer chooses to convert the Form 3115 under this revenue procedure, the taxpayer must notify the national office before the later of (a) February 11, 2011, or (b) the issuance of either a letter ruling granting or denying consent for the change or a letter closing the case. If the taxpayer timely notifies

January 24, 2011 353 2011–4 I.R.B.

.04 Rev. Proc. 2004–34, 2004–1 C.B. 991, is modified as follows. Section 8.03 of Rev. Proc. 2004–34 is modified by adding new section 8.03(3) to read as follows:

(3) A taxpayer that makes a change in method of accounting pursuant to the provisions of Rev. Proc. 97–27 that otherwise would be described in section 15.11 of the APPENDIX of Rev. Proc. 2011–14 but for the scope limitations in section 4.02 of Rev. Proc. 2011–14, must make the change on a cut-off basis as described in section 2.06 of Rev. Proc. 2011–14, applied only to advance payments received on or after the beginning of the year of change. Any advance payments received prior to the year of change are accounted for under the taxpayer’s former method of accounting ( i.e ., according to its former method of recognizing advance payments in revenues in its AFS). Accordingly, a § 481(a) adjustment is neither permitted nor required.

.05 Rev. Proc. 2001–10, 2001–1 C.B. 272, as modified by Announcement 2004–16, 2004–1 C.B. 668, is further modified to remove section 6.02(1)(a). Thus, the scope limitations of section 4.02, as well as the provisions of sections 6.03 (regarding taxpayers under examination), 6.04 (regarding taxpayers before an appeals office), 6.05 (regarding taxpayers before a federal court) and 6.02(3)(c) (regarding additional copies of application for a taxpayer under examination, before an appeals office or before a federal court) of this revenue procedure apply to a change in method of accounting described in sections 14.03 and 21.03 of the APPENDIX of this revenue procedure.

.06 Rev. Proc. 2002–28, 2002–1 C.B. 815, as modified by Announcement 2004–16, 2004–1 C.B. 668, is further modified to remove section 7.02(1)(a). Thus, the scope limitations of section 4.02, as well as the provisions of sections 6.03 (regarding taxpayers under examination), 6.04 (regarding taxpayers before an appeals office), 6.05 (regarding taxpayers before a federal court) and 6.02(3)(c) (regarding additional copies of application for a taxpayer under examination, before an appeals office or before a federal court) of this revenue procedure apply to a change in method of accounting described in sections 14.03 and 21.03 of the APPENDIX of this revenue procedure.

change under Rev. Proc. 2008–52, as amplified, clarified, and modified by Rev. Proc. 2009–39.

(b) Option to file an amended applica- tion .

(i) In general . If before January 10, 2011, a taxpayer properly filed an application under Rev. Proc. 2008–52, as amplified, clarified, and modified by Rev. Proc. 2009–39, for a year of change that is the taxpayer’s first taxable year ending on or after April 30, 2010, the taxpayer may choose to file an amended application for that year of change under this revenue procedure if:

(A) On or before the earlier of ( 1 ) May 2, 2011, or ( 2 ) the date the taxpayer files its federal income tax return for the year of change as required in section 13.02(2)(b)(i)(B) of this revenue procedure, the taxpayer sends the national office copy or, if applicable, the Ogden copy, of the amended application, with “FILED UNDER SECTION 13.02(2) of REV. PROC. 2011–14” written on the top of page 1, to the applicable address in section 13.02(2)(b)(ii) of this revenue procedure; and

(B) Within 6 months from the due date of the federal income tax return for the year of change (excluding extension), the taxpayer files an original or amended return implementing the new method of accounting pursuant to this revenue procedure, and attaches the original amended application filed under this revenue procedure to its original or amended return for the year of change.

For purposes of the timely duplicate filing requirement in section 6.02(3) of Rev. Proc. 2011–14, the national office copy or, if applicable, the Ogden copy, of the timely resubmitted amended application will be considered filed as of the date the taxpayer originally filed the copy of the application under Rev. Proc. 2008–52 with the national office.

(ii) Address to send the amended ap- plication to the national office or Ogden, as applicable . Send the national office copy or Ogden copy, as applicable, of the amended application, pursuant to section 13.02(2)(b)(i)(A) of this revenue procedure to the applicable address below:

National office copy : Internal Revenue Service, P. O. Box 14095, Benjamin

Franklin Station, Washington, DC 20044, Attention: CC:ITA:8.

Ogden copy : Internal Revenue Service, 1973 North Rulon White Blvd., Mail Stop 4917, Ogden, UT 84404.

(3) No application filed before January 10, 2011 . If, before January 10, 2011, a taxpayer has not filed an application requesting consent to change a particular method of accounting for its first taxable year ending on or before December 31, 2010, the taxpayer may choose to apply the provisions of the APPENDIX of Rev. Proc. 2008–52, as amplified, clarified, and modified by Rev. Proc. 2009–39, (in lieu of the APPENDIX of this revenue procedure) with Rev. Proc. 2011–14, with respect to such method of accounting for such taxable year.

For a taxpayer filing an application under Rev. Proc. 2011–14 using the APPENDIX of Rev. Proc. 2008–52, as amplified, clarified, and modified by Rev. Proc. 2009–39, the timely duplicate filing requirement of section 6.02(3) of Rev. Proc. 2011–14 is modified to require the copy of the application to be submitted to the National Office or, if applicable, the Ogden office, on or before February 15, 2011. A taxpayer filing such a transition application under this section 13.02(3) must otherwise be eligible to make the change under the non-APPENDIX sections of Rev. Proc. 2011–14, and should write on the top of page 1 of the national office copy or, if applicable, the Ogden copy, of the application “FILED UNDER SECTION 13.02(3) OF REV. PROC. 2011–14.”