SECTION 5. MODIFICATION TO

REV. PROC. 2018–31

Section 6.05 of Rev. Proc. 2018–31 provides the procedures for obtaining automatic consent to change the method of accounting for depreciation due to a change in the use of MACRS property. Section 6.05 of Rev. Proc. 2018–31 is modified as follows:

.01 Section 6.05(3), (4), and (5) are redesignated as section 6.05(4), (5), and (6), respectively; and

.02 New section 6.05(3) is added to read as follows:

(3) Section 481(a) adjustment. A taxpayer changing its method of accounting

under this section 6.05 is required to calculate a § 481(a) adjustment as of the first day of the year of change as if the proposed method of accounting had always been used by the taxpayer beginning with the taxable year in which the change in the use of the MACRS property occurred by the taxpayer.