SECTION 7. CHANGE IN METHOD

OF ACCOUNTING

.01 In general . The making of a late revocation of the eligible small business taxpayer’s § 263A(d)(3) election for the 2018 taxable year, under section 5.02(2)(b) of this revenue procedure, is treated for a limited period of time as a change in method of accounting to which §§ 446(e) and 481, and the corresponding regulations, apply. An eligible small

business taxpayer that wants to revoke its § 263A(d)(3) election for the 2018 taxable year, as described in section 5.02(2)(b) of this revenue procedure, must use the automatic change procedures in Rev. Proc. 2015-13 or its successor. .02 Automatic change . Rev. Proc. 2019-43 is modified to add new section 12.19 to read as follows: .19 Late revocation of elections under § 263A(d)(3) .

(1) Description of change . (a) Applicability . This change applies to an eligible small business taxpayer within the scope of Rev. Proc. 2020-13, 2020-11 I.R.B. 515, that wants to make a late revocation of the election under § 263A(d)(3) provided in section 5.02(2) (b) of Rev. Proc. 2020-13.

(b) Inapplicability . The IRS will treat the late revocation of an election under § 263A(d)(3) that is provided in section 5.02(2)(b) of Rev. Proc. 2020-13 as a change in method of accounting with a § 481(a) adjustment only for the taxable years specified in section 12.19(2) of this revenue procedure. This treatment does not apply to a taxpayer that makes a late revocation under § 263A(d)(3) provided in section 5.02(2)(b) of Rev. Proc. 202013 before or after the time specified in section 12.19(2) of this revenue procedure, and any such late revocation is not a change in method of accounting.

(2) Time for making the change . The change under this section 12.19 must be made for the taxpayer’s first, second, or third taxable year beginning after the taxpayer’s first taxable year beginning in 2018 (2018 taxable year). (3) Certain eligibility rules inapplicable . The eligibility rules in section 5.01(1)(d) and (f) of Rev. Proc. 2015-13, 2015-5 I.R.B 419, do not apply to this change for the taxpayer’s first, second, or third taxable year succeeding the 2018 taxable year.

(4) Concurrent automatic change . A taxpayer making this change for more than one property used predominantly in any farming business of the taxpayer under section 5.02(2)(b) of Rev. Proc. 202013 for the same year of change should file a single Form 3115 for all such farming property. The single Form 3115 must provide a single net § 481(a) adjustment for all such changes.

(5) Designated automatic accounting method change number . The designated automatic accounting method change number for a change to the method of accounting under this section 12.19 is “243.”

(6) Contact information . For further information regarding a change under this section, contact Anna Gleysteen at (202) 317-7007 (not a toll-free call).