SECTION 8. EFFECT ON OTHER

DOCUMENTS

Rev. Proc. 2011–14 is modified to add new section 31.02 to the APPENDIX, to read as follows:

SECTION 31.02. Proportional method of accounting for OID on a pool of credit card receivables

(1) Description of change . This change applies to a taxpayer that wants to change to the proportional method of accounting for OID on a pool of credit card receivables as described in Rev. Proc. xxxx–xx. Under Rev. Proc. xxxx–xx, a taxpayer may use the proportional method of accounting for the taxpayer’s first taxable year that begins on or after the effective date described in section 7 of Rev. Proc. xxxx–xx.

(2) Manner of making change . This change is made on a cut-off basis. Accordingly, a § 481(a) adjustment is neither required nor permitted. The unaccrued OID for the pool as of the beginning of the first period in the year of change is equal to the unaccrued OID for the receivables in the pool as of the end of the preceding year under the taxpayer’s previous method of accounting for the receivables. See section 2.06 of this revenue procedure for more information regarding a cut-off basis.

(3) Designated automatic accounting method change number . The designated automatic accounting method change number for a change under section 31.02

of this APPENDIX is “XXX.” See section 6.02(4) of this revenue procedure. (4) Contact information . For further information regarding this section, please contact Charles W. Culmer at (202) 622–3950 (not a toll-free call).