Rev. Proc. 77-46

Section 1. Purpose

The purpose of this Revenue Procedure is to 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.

Sec. 2. Extension and Effect on Other Documents

Section 5 of Rev. Proc. 77-7 is modified by extending, for one 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, 1978.

¹ Also released as IR-1912, dated December 9, 1977.