rp-15-33.pdf

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26 CFR 601.204: Changes in accounting periods and in methods of accounting.
(Also Part I, §§ 446, 481; 1.446-1, 1.481-1, 1.481-4.)

Rev. Proc. 2015-33

SECTION 1. PURPOSE
This revenue procedure modifies the procedures in Rev. Proc. 2015-13, 2015-5
I.R.B. 419, for obtaining the consent of the Commissioner of Internal Revenue
(Commissioner) to change a method of accounting for federal income tax purposes
under § 446(e) of the Internal Revenue Code and § 1.446-1(e) of the Income Tax
Regulations. Specifically, this revenue procedure (1) modifies the transition rules under
section 15.02(1)(a)(ii) of Rev. Proc. 2015-13 to provide additional time to file Forms
3115 under Rev. Proc. 2011-14, 2011-4 I.R.B. 330, as clarified and modified by Rev.
Proc. 2012-39, 2012-41 I.R.B. 470; (2) clarifies when the automatic change procedures
do not apply if the taxpayer engages, within the requested year of change, in a
transaction to which § 381(a) applies; (3) clarifies the meaning of "three-month window"
under section 8.02(1)(a)(ii) of Rev. Proc. 2015-13 for a taxpayer with a 52-53 week
taxable year; and (4) discusses a clarification to the applicable Ogden, UT, address
provided in section 9.05 of Rev. Proc. 2015-1, 2015-1 I.R.B. 1.

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SECTION 2. BACKGROUND
.01 Rev. Proc. 2015-13 updates and revises the general procedures under
§ 446(e) and § 1.446-1(e) to obtain the consent of the Commissioner to change a
method of accounting for federal income tax purposes. Specifically, Rev. Proc. 2015-13
provides general procedures to obtain the advance (non-automatic) consent of the
Commissioner to change a method of accounting and provides the procedures to obtain
the automatic consent of the Commissioner to change a method of accounting
described in Rev. Proc. 2015-14, 2015-5 I.R.B. 450, (or successor) (List of Automatic
Changes).
.02 Section 15.02(1)(a)(ii) of Rev. Proc. 2015-13 provides that a taxpayer may
file a Form 3115 to request the Commissioner's consent to change a method of
accounting for a taxable year ending on or after May 31, 2014, and on or before
January 31, 2015, until the due date of the taxpayer's timely filed (including any
extension) original federal income tax return for the requested year of change for an
automatic change under the procedures of Rev. Proc. 2011-14 or Rev. Proc. 2015-13.
The current provision does not allow taxpayers with taxable years ending after January
31, 2015, to request an automatic change under the procedures of Rev. Proc. 2011-14.
In September 2013 the Treasury Department and the Internal Revenue Service (IRS)
issued final regulations under §§ 1.162-3, 1.162-4, 1.263(a)-1, 1.263(a)-2, and 1.263(a)-
3 (T.D. 9636, 2013-43 I.R.B. 331, 78 Fed. Reg. 57686) and in August 2014 issued final
regulations under §§ 1.168(i)-1, 1.168(i)-7, and 1.168(i)-8 (T.D. 9689, 2014-36 I.R.B.
456, 79 Fed. Reg. 48661) (together the final tangible property regulations). The final
tangible property regulations generally apply to taxable years beginning on or after

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January 1, 2014. This revenue procedure extends the transition procedures of section
15.02(1)(a)(ii) of Rev. Proc. 2015-13 to all taxpayers for their first taxable year in which
the final tangible property regulations apply. In particular, section 3 of this revenue
procedure modifies section 15.02(1) of Rev. Proc. 2015-13 to allow a taxpayer to
request an automatic change under the procedures of Rev. Proc. 2011-14 or Rev. Proc.
2015-13 for a taxable year ending on or after May 31, 2014, and beginning before
January 1, 2015. This revenue procedure provides that a signed copy of an original
Form 3115 filed under the revised transition rules should be filed with the IRS in Ogden,
UT, despite the requirement of Rev. Proc. 2011-14 that certain copies be filed with the
IRS national office.
.03 Sections 5.01(1)(c) and 5.02 of Rev. Proc. 2015-13 provide rules that limit
application of the automatic change procedures in certain instances when, within the
year of change, the taxpayer engages in a liquidation or reorganization transaction to
which § 381(a) applies. These rules are intended to provide that a taxpayer that
engages in a § 381(a) transaction within the year of change may not use the automatic
change procedures to request a change to a principal method (because, as prescribed
by §§ 1.381(c)(4)-1(d)(1) and 1.381(c)(5)-1(d)(1), in general, an acquiring corporation
does not need to secure the Commissioner’s consent to use a principal method). The
rules in sections 5.01(1)(c) and 5.02 inadvertently exclude from the automatic change
procedures certain changes other than a change to a principal method prescribed by
§ 1.381(c)(4)-1(d)(1) or § 1.381(c)(5)-1(d)(1). Accordingly, section 4 of this revenue
procedure modifies sections 5.01(1)(c) and 5.02 of Rev. Proc. 2015-13 to exclude from

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the automatic change procedures only changes prescribed by § 1.381(c)(4)-1(d)(1) or
§ 1.381(c)(5)-1(d)(1).
.04 Section 8.02(1)(a)(ii) of Rev. Proc. 2015-13 provides that a “three-month
window” is the period beginning on the fifteenth day of the seventh month of the
taxpayer’s taxable year and ending on the fifteenth day of the tenth month of the
taxpayer’s taxable year. It is unclear how this provision applies to a taxpayer using a
52-53 week taxable year because the rule is not expressed in terms of a taxable year
beginning, including, or ending with reference to the first or last day of a specified
calendar month, as provided in § 1.441-2(c)(1). Accordingly, section 5 of this revenue
procedure modifies section 8.02(1)(a)(ii) of Rev. Proc. 2015-13 to provide that for
determining the “three-month window” the taxable year begins on the first day of the
calendar month nearest to the first day of the 52-53 week taxable year.
.05 Additionally, several provisions of Rev. Proc. 2015-13 provide that a signed
copy of the original Form 3115 must be filed with the IRS in Ogden, UT (Ogden copy),
at the applicable address in section 9.05 of Rev. Proc. 2015-1 (or successor). The U.S.
Post Office no longer accepts the Ogden, UT, zip code provided in Rev. Proc. 2015-1
for certified mail. While mail sent to the Ogden, UT, address provided in Rev. Proc.
2015-1 will be received by the IRS processing facility in Ogden, UT, to send certified
mail through the U.S. Post Office to this location, taxpayers should use the following
mailing address:
Internal Revenue Service
1973 Rulon White Blvd.
Mail Stop 4917

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Ogden, UT 84201-1000
SECTION 3. MODIFICATION TO TRANSITION RULES
.01 The heading of section 15.02(1) of Rev. Proc. 2015-13 is modified to read as
follows:
(1) Additional time to file Forms 3115 under Rev. Proc. 97-27, Rev. Proc.
2011-14, or this revenue procedure.
.02 Section 15.02(1)(a)(ii) of Rev. Proc. 2015-13 is modified to read as follows:
(ii) ending on or after May 31, 2014, and beginning before January 1, 2015
(“applicable taxable year”), until the due date of the taxpayer’s timely filed (including any
extension) original federal income tax return for the requested year of change for an
automatic change under the procedures of Rev. Proc. 2011-14 or this revenue
procedure. Any application filed under the transition rule provided in this paragraph
must be filed with the IRS in Ogden, UT (Ogden copy), and not with the national office
despite the requirement in section 6.02(3)(a)(ii) of Rev. Proc. 2011-14 that certain
copies of the application be filed with the national office.
SECTION 4. CLARIFICATION OF AUTOMATIC CHANGE PROCEDURES
FOLLOWING A § 381 TRANSACTION
.01 Section 5.01(1)(c) is modified to read as follows:
(c) the requested change is not required to be made under § 1.381(c)(4)-
1(d)(1) or § 1.381(c)(5)-1(d)(1);
.02 Section 5.02 is modified to read “Reserved.”
SECTION 5. CLARIFICATION OF THREE-MONTH WINDOW
Section 8.02(1)(a)(ii) of Rev. Proc. 2015-13 is modified to read as follows:

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(ii) Three-month Window. (A) A “three-month window” is the period beginning on
the fifteenth day of the seventh month of the taxpayer’s taxable year and ending on the
fifteenth day of the tenth month of the taxpayer’s taxable year.
(B) For purposes of paragraph (a)(ii)(A), a 52-53 week taxable year begins on the
first day of the calendar month nearest to the first day of the 52-53 week taxable year.
(C) If the taxable year is a short taxable year that ends before the fifteenth day of
the tenth month after the short taxable year begins, the “three-month window” is the
period beginning on the first day of the second month before the month in which the
short taxable year ends and ending on the last day of the short taxable year.
SECTION 6. EFFECT ON OTHER DOCUMENTS
Rev. Proc. 2015-13 is clarified and modified.
SECTION 7. EFFECTIVE DATE
This revenue procedure is effective for Forms 3115 filed on or after January 16,
2015, for a year of change ending on or after May 31, 2014.
DRAFTING INFORMATION
The principal author of this revenue procedure is Neville Jiang of the Office of
Associate Chief Counsel (Income Tax and Accounting). For further information
regarding this revenue procedure, contact Mr. Jiang at (202) 317-7007 (not a toll-free
call).