SECTION 18. 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 designated automatic accounting method change number

(a) Cut-off basis . 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) Short Form 3115 in lieu of a stan- dard Form 3115 . In accordance with § 1. 446-1(e)(3)(ii), the requirement of § 1.446-1(e)(3)(i) to file a standard Form 3115 is waived and, pursuant to section 6. 02(2) of Rev. Proc. 2015-13, a short Form 3115 is authorized for a change described in section 18. 01(a) of this revenue procedure. The requirement in § 1.455-6 to file a statement requesting consent is satisfied by filing such short Form 3115. The short Form 3115 (Rev. December 2022) 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) Section 455 election made with consent . 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 18. 01 is “132. ” (4) Contact information . For further information regarding a change under this section, contact Patrick Clinton at (202) 317-7005 (not a toll-free number).