SECTION 17. PREPAID

SUBSCRIPTION INCOME (§ 455)

.01 Prepaid subscription income . (1) Description of change . This change applies to a taxpayer using an overall accrual method of accounting that wants to change its method of accounting for prepaid subscription income to the method described in § 455 and the regulations thereunder, including an eligible taxpayer that wants to make the “within 12 months” election under § 1.455–2.

(2) Manner of making change and des- ignated automatic accounting method change number .

(a) This change is made on a cut-off basis and applies only to prepaid subscription income received on or after the beginning of the year of change. The taxpayer must continue to account for prepaid subscription income received prior to the year of change under the taxpayer’s present method of accounting. Accordingly, a § 481(a) adjustment is neither permitted nor required.

(b) In accordance with § 1.446– 1(e)(3)(ii), the requirement in § 1.455–6 to file a statement requesting consent is satisfied by filing a short Form 3115 for a change under this section 17.01. The short Form 3115 must include the following information:

(i) the identification section of page 1 (above Part I);

(ii) the signature section at the bottom of page 1;

(iii) Part I, line 1(a); (iv) the information described in § 1.455–6(a), as required by § 1.455– 6(b); and

(v) if the taxpayer wants to make a “within 12 months” election under § 1.455–6(c), the information described in section § 1.455–6(c)(2).

(c) The consent granted in section 9 of Rev. Proc. 2015–13, 2015–5 I.R.B. 419, satisfies the consent required under § 455(c)(3) and § 1.455–6(b).

(3) Designated automatic accounting method change number . The designated automatic accounting method change number for a change under this section 17.01 is “132.” (4) Contact information . For further information regarding a change under this section, contact Patrick M. Clinton at (202) 317-7005 (not a toll-free number).

.02 Reserved .