SECTION 3. SCOPE

This revenue procedure applies to a taxpayer if—

May 28, 2013 1161 2013–22 I.R.B.

that would not otherwise be treated as OID, for example, market discount or bond premium.

.03 A taxpayer that wants to change its method of accounting to the proportional method must use the automatic change in method procedures of Rev. Proc. 2011–14, 2011–4 I.R.B. 330, or its successor, to make the change. See section 8 of this revenue procedure. If a taxpayer changes to the proportional method, 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 pool as of the end of the preceding year under the taxpayer’s previous method of accounting for the pool. See section 5.02(2) of this revenue procedure. If a taxpayer does not already have a method of accounting for OID (or an amount treated as OID under section 4.02 of this revenue procedure) on any pool of credit card receivables, the taxpayer may adopt the proportional method by using it on a timely filed (including extensions) original federal income tax return for the first taxable year the taxpayer must account for OID on a pool of credit card receivables. A taxpayer may adopt or change its method of accounting to the proportional

method for a taxable year that ends on or after December 31, 2012.