SECTION 21. RENT (§ 467)

whether the proposed method is permissible and in accordance with § 1.461-1(a)(2) and § 1.4614(d)(4).

(5) Concurrent automatic change . A taxpayer that is making a change described in section 20.13(1) of this revenue procedure and one or more changes described in section 12.01, 12.02, 22.04, 22.10, 22.17, or 22.18 of this revenue procedure for the same year of change must timely file a single Form 3115 for all such changes and must enter the designated automatic accounting change numbers for all such changes on the appropriate line of Form 3115. If the taxpayer is making a change described in section 20.13(1) of this revenue procedure for one or more inventory costs, and a change described in section 12.01, 12.02, 22.04, 22.10, 22.17, or 22.18 of this revenue procedure for the same year of change, the taxpayer may provide a single net § 481(a) adjustment for all such changes. See section 6.03(1)(b) of Rev. Proc. 2015-13 for information on making concurrent changes.

(6) Designated automatic accounting method change number . The designated automatic method change number (DCN) for a change to the method of accounting under this section 20.13 is “256.”

(7) Contact information . For further information regarding a change under this section, contact Douglas Kim at (202) 317-7003 (not a toll-free number).

.01 Change from an improper method of inclusion of rental income or expense to inclusion in accordance with the rent allocation .

(1) Description of change .

(a) Applicability . This change applies to a taxpayer that:

(i) is a party to § 467 rental agreements (within the meaning of § 1.467-1(c)(1) for rental agreements entered into after May 18, 1999, and § 467(d) for all other agreements); and

(ii) except as provided in section 21.01(1)(b)(ii) of this revenue procedure, wants to change its method of accounting for its fixed rent (as defined in § 1.467-1(d)(2)) to the rent allocation method provided in § 1.467-1(d)(2)(iii).

(b) Inapplicability . This change does not apply to:

(i) rental agreements for which taxpayers are required to use the constant rental accrual method, as described in § 1.467-3(a), or the proportional rental accrual method, as described in § 1.4672(a), for their fixed rent; and

(ii) rental agreements that provide a specific allocation of fixed rent as described in § 1.467-1(c) (2)(ii)(A)( 2 ) that allocate rent to periods other than when such rents are payable.

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(2) Additional requirements . The taxpayer must attach to its Form 3115 a copy of one of its § 467 rental agreements to be covered by this automatic change (or at least the pages of the agreement relating to the manner in which rent is allocated).

(3) Audit protection limited . Any audit protection under section 8 of Rev. Proc. 2015-13, 20155 I.R.B. 419, does not apply to this change for any § 467 rental agreement determined by the Commissioner to be a disqualified leaseback or long-term agreement described in § 1.467-3(b).

(4) Designated automatic accounting method change number . The designated automatic accounting method change number for a change under this section 21.01 is “136.”

(5) Contact information . For further information regarding a change under this section, contact William Ruane at (202) 317-4718 (not a toll-free number).