SECTION 5. CHANGE IN METHOD

OF ACCOUNTING

.01 Consent to change . A change in a taxpayer’s treatment of gift cards issued as a refund for returned goods is a change in method of accounting within the meaning of §§ 446 and 481 and the regulations thereunder.

(1) Automatic consent . A taxpayer that wants to change its method of accounting to the method of accounting permitted in section 4 of this revenue procedure must obtain the consent of the Commissioner under § 446(e) and § 1.446–1(e)(3) by following the automatic consent procedures in Rev. Proc. 2008–52, 2008–2 C.B. 587, as modified, amplified, and clarified by Rev. Proc. 2009–39, 2009–38 I.R.B. 371, or its successor, except as provided below. For purposes of section 6.02(4) of Rev. Proc. 2008–52, the taxpayer must include on line 1a of the Form 3115 the designated automatic accounting method change number 156. A taxpayer may change its method of accounting to a proper method under Rev. Proc. 2004–34 and to the method permitted in section 4 of this revenue procedure on one Form 3115 and must include both change numbers on line 1a.

(2) Advance consent . A taxpayer may change its method of accounting to a proper method under § 1.451–5 and to the method permitted in section 4 of this revenue procedure on one Form 3115 but must use the advance consent procedures of Rev. Proc. 97–27, 1997–1 C.B. 680.

.02 Transition rules . If a taxpayer within the scope of this revenue procedure has timely requested consent on or before January 5, 2011, under Rev. Proc. 97–27 to change its method of accounting for gift cards issued in exchange for returned goods and the Form 3115, Application for Change in Accounting Method, is pending with the national office, the taxpayer may convert its Form 3115 to an application for automatic consent under Rev. Proc. 2008–52, if otherwise eligible. The taxpayer must notify the national office of the conversion before the national office issues a letter ruling under Rev. Proc. 97–27. If the taxpayer converts the Form 3115 under this section 5.02 before the na

tional office has ruled on the Form 3115, the national office will return the Form 3115 to the taxpayer and refund the user fee.

.03 Scope limitations waived . The scope limitations in section 4.02 of Rev. Proc. 2008–52 do not apply to this change in method of accounting for a taxpayer’s first or second taxable year ending on or after December 31, 2010. However, if a taxpayer is under examination, before an appeals office, or before a federal court for any income tax issue when the taxpayer files the copy of the Form 3115 with the national office, the taxpayer must provide a copy of the Form 3115 to the examining agent, appeals officer, or counsel for the government, as appropriate, at the same time. The Form 3115 must contain the name(s) and telephone number(s) of the examining agent, appeals officer, or counsel for the government, as appropriate.