SERVICE CORRECTS PRIOR NOTICE ON UNIFORM CAPITALIZATION RULE ACCOUNTING.

Notice 88-103

The purpose of this notice is to advise taxpayers of a correction to Notice 88-92, published in 1988-34 I.R.B. 23, on August 22, 1988. Subsections (ii) and (iii) of the second paragraph of the section entitled PROCEDURE TO COMPLY WITH SECTION 263A have been corrected to provide guidance to taxpayers that file (or have filed) on or before October 21, 1988, a Form 3115, but not the 263A checklist with their Federal income tax return. The corrected paragraph reads as follows:

PROCEDURE TO COMPLY WITH SECTION 263A

A taxpayer that has (i) filed, on or before October 21, 1988, a Federal income tax return for the first taxable year of the taxpayer to which the provisions of section 263A of the Code apply; (ii) did not file the Form 3115 (or the 263A checklist) with such return, or filed a Form 3115 (but not the 263A checklist); and (iii) otherwise complied with section 263A and the regulations under section 1.263A- 1T, shall attach a Form 3115 (or a copy of the previously filed Form 3115) and the 263A checklist to the taxpayer's first Federal income tax return filed subsequent to October 21, 1988, for a taxable year to which the provisions of section 263A apply. (A taxpayer, at its option, may attach Form 3115 and the 263A checklist with a return filed before the date provided in the preceding sentence.)

This correction will be reflected in Notice 88-92 when it is published in the 1988-2 Cumulative Bulletin.