Rev. Proc. 75-53

Section 1. Purpose.

It has come to the attention of the Internal Revenue Service that taxpayers are having difficulty meeting the requirements of Rev. Proc. 75-40, page 571, this Bulletin, within the time limits prescribed therein for filing Form 3115 (Application for Change in Accounting Method) to change to the full absorption method of inventory valuation.

Sec. 2. Background.

The fifth sentence of sec. 3.04 of Rev. Proc. 75-40 provides the time during which an application must be filed. The sentence reads as follows:

Thus, a taxpayer that desires to make an election for a taxable year with respect to which the first 180 days had not expired on or before April 17, 1975 (the date Announcement 75-42 was issued as Technical Information Release 1365) has until November 28, 1975 or the end of such 180 days, whichever is later, to make the election to change to the full absorption method of inventory costing and to use the transition procedures set forth in section 1.471-11(e)(1)(ii).

Sec. 3. Application.

Under the authority of section 1.9100-1(a) of the regulations, the time for making the election to change to the full absorption method of inventory costing and to use the transition procedures set forth in section 1.471-11(e)(1)(ii) of the regulations is extended for an additional 60 days from November 28, 1975, or from the end of such 180 days, whichever is later. Therefore, the fifth sentence of sec. 3.04 of Rev. Proc. 75-40 is modified to read as follows:

Thus, a taxpayer that desires to make an election for a taxable year with respect to which the first 180 days had not expired on or before April 17, 1975 (the date Announcement 75-42 was issued as Technical Information Release 1365) has until January 27, 1976, or the end of such 180 days, whichever is later, to make the election to change to the full absorption method of inventory costing and to use the transition procedures set forth in section 1.471-11(e)(1)(ii).

Sec. 4. Effect on other documents.

Rev. Proc. 75-40 is modified to provide that a taxpayer making the election for a taxable year with respect to which the first 180 days had not expired on or before April 17, 1975, has until January 27, 1976, or the end of 180 days (section 1.471-11(e)(1)(ii) of the regulations), whichever is later, to make the election.

Sec. 5. Inquiries.

Inquiries in regard to this Revenue Procedure should refer to its number and be addressed to the Commissioner of Internal Revenue, Attention: T:C:C, 1111 Constitution Avenue, N.W., Washington, D.C. 20224.

¹ Also released as TIR-1420, dated Nov. 26, 1975.