SECTION 5. CHANGE IN METHOD

OF ACCOUNTING

.01 In general . A change in the treatment of Ratable Service Contracts to conform to the safe harbor method provided by this revenue procedure is a change in method of accounting to which the provisions of §§ 446 and 481 and the regulations thereunder apply. A taxpayer that wants to change to the method of accounting described in this revenue procedure must, if eligible, use the automatic change procedures in Rev. Proc. 2015–13 and Rev. Proc. 2015–14, or successors, as modified by section 5.02 of this revenue procedure.

.02 Rev. Proc. 2015–14 is modified to add new section 19.12 to the List of Automatic Changes to read as follows:

.12 Economic Performance Safe Harbor for Ratable Service Contracts .

(1) Description of change. This change applies to an accrual method taxpayer that wants to change its treatment of Ratable Service Contracts to conform to the safe harbor method provided by Rev. Proc. 2015–39, 2015–33 I.R.B. 197. (2) Eligibility rule temporarily inappli- cable . The eligibility rule in section 5.01(1)(f) of Rev. Proc. 2015–13, does not apply to a taxpayer that wants to make a change for a taxpayer’s first, second, or third taxable years ending on or after July 30, 2015. (3) Designated automatic accounting method change number . The designated automatic accounting method change number for changes in methods of accounting under this section 19.12 is “220.”

(4) Contact information . For further information regarding a change under this section, contact David Christensen or Peter Ford at 202-317-7011 (not a toll-free call).