Rev. Proc. 78-39

Section 1. Purpose.

The purpose of this Revenue Procedure is to further extend the waiver set forth in Rev. Proc. 77-7, 1977-1 C.B. 540, which set forth the application of section 472(c) and (e)(2) of the Internal Revenue Code of 1954 to taxpayers who employ the last-in, first-out (LIFO) inventory method and are required by the Securities and Exchange Commission (SEC) to make certain replacement cost disclosures in their financial statements. Rev. Proc. 77-46, 1977-2 C.B. 579, modified the waiver contained in Rev. Proc. 77-7 by extending it for one year until December 25, 1978.

Sec. 2. Effect on Other Documents.

Section 5 of the Rev. Proc. 77-7 is further modified by extending, for one more year, the waiver of the violation of the LIFO inventory conformity requirements caused by supplemental disclosure in financial statements of replacement cost information required by the SEC. Therefore, Rev. Proc. 77-7 is effective for financial statements for taxable years ending on or after December 25, 1976, and before December 25, 1979.