SECTION 1. PURPOSE

This revenue procedure clarifies and modifies (i) Rev. Proc. 2011–14, 2011–4 I.R.B. 330; and (ii) Rev. Proc. 97–27,

1997–1 C.B. 680, as amplified and modified by Rev. Proc. 2002–19, 2002–1 C.B. 696, as amplified and clarified by Rev. Proc. 2002–54, 2002–2 C.B. 432, as modified by Rev. Proc. 2007–67, 2007–2 C.B. 1072, as clarified and modified by Rev. Proc. 2009–39, 2009–38 I.R.B. 371, and as clarified and modified by Rev. Proc. 2011–14. It modifies certain rules applicable to a taxpayer that engages in a corporate reorganization or tax-free liquidation described in § 381(a) of the

October 9, 2012 470 2012–41 I.R.B.

automatic accounting method change for a taxable year in which the taxpayer engages in a § 381(a) transaction. This revenue procedure modifies section 4.02(4) of Rev. Proc. 2011–14 to permit taxpayers to make otherwise qualifying automatic accounting method changes in the year of the § 381(a) transaction. This revenue procedure also modifies both Rev. Proc. 2011–14 and Rev. Proc. 97–27 to waive the scope limitation that precludes taxpayers who are under examination from seeking consent to change to an accounting method other than the principal or carryover method.

.07 Section 3.09 of the APPENDIX of Rev. Proc. 2011–14 allows taxpayers in the business of transporting, delivering, or selling electricity to change their method of accounting to the safe harbor method of accounting described in Rev. Proc. 2011–43. The scope limitations of section 4.02 of Rev. Proc. 2011–14 do not apply to an electric transmission or distribution company that changes to the method of accounting provided in Rev. Proc. 2011–43 for its first or second taxable year ending after December 30, 2010.

.08 The Service is aware that many electric transmission or distribution companies have not had time to change their method of accounting to the safe harbor method of accounting described in Rev. Proc. 2011–43. Accordingly, this revenue procedure modifies section 3.09 of the APPENDIX of Rev. Proc. 2011–14 to extend the waiver of scope limitations to the third taxable year ending after December 30, 2010. .09 Section 179D(a) allows a deduction to a taxpayer for part or all of the cost of energy efficient commercial building property that the taxpayer places in service in a taxable year. The amount of the deduction may not exceed the excess (if any) of (i) the product of $1.80 and the square footage of the building, over (ii) the aggregate amount of the § 179D deductions allowed with respect to the building for all prior taxable years. If the energy efficient commercial building property is installed on or in property owned by a Federal, State, or local government or political subdivision thereof, § 179D permits the owner to allocate this deduction to the designer of the commercial building property. In Notice 2008–40, the Service provided procedures for owners of govern

installation of energy efficient commercial building property under § 179D.