SECTION 6. CHANGE IN METHOD

OF ACCOUNTING

.01 Consent to change . (1) Automatic consent . A taxpayer that wants to change its method of accounting to one of the permissible methods of accounting for advance payments for eligible gift card sales (except methods under section 5.02(3)(b)(i) or (iii) of Rev. Proc. 2004–34) makes the change under section 15.07 of 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. (2) Advance consent . A taxpayer that wants to use the Deferral Method for payments for which a method under section 5.02(3)(b)(i) or (iii) of Rev. Proc. 2004–34 applies must follow the change in method

of accounting procedures in Rev. Proc. 97–27. .02 Transition rules . If a taxpayer has timely requested consent on or before January 5, 2011, under Rev. Proc. 97–27, 1997–1 C.B. 680, to change its method of accounting for advance payments for eligible gift card sales 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 4.02 before the national 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. 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.