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55. Valuation of remanufactured cores (section 471) —

on a cut-off basis. See section 10.06 in the Appendix of Rev.

for remanufacturers and rebuilders of motor vehicle parts and

Proc. 2002-9.

resellers of remanufactured and rebuilt motor vehicle parts that

62. Changes within IPIC inventory method (section

use the lower of cost or market method to value their inventory

472) — for one or more of the following changes within IPIC:

of cores, to the safe harbor method of accounting (the “Core

(a) from the double-extension IPIC method to the link-chain

Alternative Valuation” method) to value inventories of cores as

IPIC method, or vice versa; (b) to or from the 10 percent

provided for in Rev. Proc. 2003-20, 2003-6 I.R.B. 445.

method; (c) to a pooling method described in Regulations

Complete Schedule D, Parts II and III, of Form 3115, as

section 1.472-8(b)(4) or Regulations section 1.472-8(c)(2),

applicable. See Rev. Proc. 2003-20.

including a change to begin or discontinue applying one or both

56. Change from LIFO inventory method (section 472) —

of the 5 percent pooling rules; (d) combine or separate pools as

for an applicant changing from the LIFO inventory method for

a result of the application of a 5 percent pooling rule described

its entire LIFO inventory, or for a pool or pools within its LIFO

in Regulations section 1.472-8(b)(4) or Regulations section

inventory, to the permitted method as determined in section

1.472-8(c)(2); (e) change the selection of BLS tables from

10.01(1)(b) in the Appendix of Rev. Proc. 2002-9. Complete

Table 3 (Consumer Price Index for All Urban Consumers

Schedule D, Parts II and III, of Form 3115, as applicable. Attach

(CPI-U): U.S. city average, detailed expenditure categories) of

the statements required by section 10.01(4) in the Appendix of

the monthly CPI Detailed Report to Table 6 (Producer price

Rev. Proc. 2002-9. See section 10.01 in the Appendix of Rev.

indexes and percent changes for commodity groupings and

Proc. 2002-9.

individual items, not seasonally adjusted) of the monthly PPI

57. Determining current-year cost (section 472) — to

Detailed Report, or vice versa; or (f) change the representative

determining current-year cost: (a) by reference to the actual

month when necessitated because of a change in tax year or a

cost of the goods most recently purchased or produced; (b) by

change in method of determining current-year cost made

reference to the actual cost of the goods purchased or

pursuant to section 10.02 in the Appendix of Rev. Proc. 2002-9.

produced during the tax year in the order of acquisition; or

A scope limitation does not apply in certain cases. The

applicant may request the change described in (f) above and

actual cost of all the goods purchased or produced throughout

designated automatic accounting method change number 57

the tax year divided by the total number of units so purchased

(determining current-year cost) on a single Form 3115.

or produced. Complete Schedule C, Part I, of Form 3115. This

Complete Schedule C of Form 3115, as applicable. This

change is made on a cut-off basis. See section 10.02 in the

change is made on a cut-off basis. See section 10.07 in the

Appendix of Rev. Proc. 2002-9.

Appendix of Rev. Proc. 2002-9, as modified by Rev. Proc.

58. Alternative LIFO inventory method (section 472) — for

2003-45, 2003-27 I.R.B. 11.

a qualifying applicant that sells new automobiles or new

63. Replacement cost method for automobile dealers’

light-duty trucks, to the “Alternative LIFO Method” described in

parts inventory (section 472) — to the replacement cost

Rev. Proc. 97-36, 1997-33 I.R.B. 450. Complete Schedule C of

method for automobile dealers’ parts inventory described in

Form 3115, as applicable. Attach the statement required by

Rev. Proc. 2002-17, 2002-13 I.R.B. 676. Complete Schedule D,

section 10.03(2)(c)(ii) in the Appendix of Rev. Proc. 2002-9 and

Parts II and III, of Form 3115, as applicable. This change is

the Form 970 required by reference in section 10.03(2)(c)(i) in

made on a cut-off basis. See Rev. Proc. 2002-17.

the Appendix of Rev. Proc. 2002-9. This change is made on a

64. Mark-to-market (section 475) — for accounting for

cut-off basis. See section 10.03 in the Appendix of Rev. Proc.

securities or commodities by commodities dealers, securities

2002-9.

traders, and commodities traders, to the mark-to-market

59. Used vehicle alternative LIFO method (section 472) —

method. An election statement must be filed earlier than the

for a qualifying applicant that sells used automobiles and used

due date of Form 3115. See Rev. Proc. 99-17, 1999-7 I.R.B.

light-duty trucks, to the “Used Vehicle Alternative LIFO

52, for rules relating to this statement. Scope limitations do not

Method,” as described in Rev. Proc. 2001-23, 2001-10 I.R.B.

apply to this change. See section 10A.02 in the Appendix of

784. Complete Schedule C, Part I, of Form 3115. In general,

Rev. Proc. 2002-9.

this change is made on a cut-off basis. See section 10.04 in the

65. Dealer status changes (section 475) — for an applicant

Appendix of Rev. Proc. 2002-9.

electing out of certain exemptions from securities dealer status,

60. Determining the cost of used vehicles purchased or

to the mark-to-market method. Attach the statement(s) required

taken as a trade-in (section 472) — for a qualifying applicant,

by Rev. Proc. 97-43, 1997-39 I.R.B. 12. For a special cut-off

to a method of (a) determining the cost of used vehicles

rule, see section 5.02 of Rev. Proc. 97-43. This change does

acquired by trade-in using the average wholesale price listed by

not fall under the procedures of Rev. Proc. 2002-9. Instead, see

a consistently used official used car guide on the date of the

Rev. Proc. 97-43.

trade-in; (b) determining the cost of used vehicles purchased

66. Bank reserves for bad debts (section 585) — from the

for cash using the actual purchase price of the vehicle; or

section 585 reserve method to the section 166 specific

charge-off method. Certain scope limitations do not apply. See

vehicles purchased for cash using values computed by national

section 11.01 in the Appendix of Rev. Proc. 2002-9.

auto auction companies based on vehicles purchased for cash,

67. Insurance company premium acquisition expenses

where the national auto auction company selected is

(section 832) — for certain insurance companies, to a safe

consistently used. Complete Schedule C, Part I, of Form 3115.

harbor method of accounting for premium acquisition expenses.

This change is made on a cut-off basis. See section 10.05 in

Scope limitations do not apply to this change. See Rev. Proc.

the Appendix of Rev. Proc. 2002-9.

2002-46, 2002-28 I.R.B. 105.

61. Change to IPIC inventory method (section 472) — for a

68. Discounted unpaid losses (section 846) — for

qualifying applicant, from a non-inventory price index

insurance companies other than life insurance companies

computation (IPIC) LIFO inventory method to the IPIC method

computing discounted unpaid losses, to the composite method

in accordance with all relevant provisions of Regulations section

or to alternative methods. See Rev. Proc. 2002-74, 2002-51

1.472-8(e)(3). The applicant may request this change and

I.R.B. 980.

designated automatic accounting method change number 57

69. Income from sources within the United States

(determining current-year cost), or this change and designated

(section 861) — for certain transactions involving computer

automatic accounting method change number 62 (changes

programs, to a method that conforms with Regulations section

within IPIC inventory method) on a single Form 3115. Complete

1.861-18. See section 11A.01 in the Appendix of Rev. Proc.

Schedule C of Form 3115, as applicable. This change is made

2002-9.

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Instructions For Form 3115 - Application For Change In Accounting Method - Internal Revenue Service - 2006 Page 13

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