SECTION 4. BAD DEBTS (§ 166)

.01 Change from reserve method to specific charge-off method .

(1) Description of change . This change applies to a taxpayer (other than a bank as defined in § 585(a)(2)) that wants to change its method of accounting for bad debts from a reserve method (or other improper method) to a specific charge-off method that complies with § 166. For procedures applicable to banks, see § 585(c) and the regulations thereunder and section 24 of this APPENDIX. (2) Designated automatic accounting method change number . The designated automatic accounting method change number for a change under section 4.01 of this APPENDIX is “5.” See section 6.02(4) of this revenue procedure. (3) Contact information . For further information regarding a change under this section, contact Justin G. Meeks at 202–622–5020 (not a toll-free call).

.02 Reserved .