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Schedule A, Part I, and Schedule D, Parts II and III, of Form

59. Used vehicle alternative LIFO method (section

3115, as applicable. See section 21.03 in the Appendix of Rev.

472) — for a qualifying applicant that sells used automobiles and

Proc. 2008-52.

used light-duty trucks, to the Used Vehicle Alternative LIFO

51. Small taxpayer ($10 million) inventory exception

Method, as described in Rev. Proc. 2001-23, 2001-1 C.B. 784,

(section 471) — for a qualifying applicant with average annual

as modified by Announcement 2004-16, 2004-1 C.B. 668 and

gross receipts of $10,000,000 or less (see Rev. Proc. 2002-28,

Rev. Proc. 2008-23, 2008-12 I.R.B. 664. Complete Schedule C,

2002-1 C.B. 815), from the present method of accounting for

Part I, of Form 3115. See section 22.04 in the Appendix of Rev.

inventoriable items (including, if applicable, the method of

Proc. 2008-52.

capitalizing costs under section 263A) to treating inventoriable

60. Determining the cost of used vehicles purchased or

items in the same manner as materials and supplies that are

taken as a trade-in (section 472) — for a qualifying applicant,

not incidental under Regulations section 1.162-3. Complete

to a method of (a) determining the cost of used vehicles

Schedule D, Parts II and III, of Form 3115, as applicable. See

acquired by trade-in using the average wholesale price listed by

section 21.03 in the Appendix of Rev. Proc. 2008-52.

a consistently used official used car guide on the date of the

52. Obsolete.

trade-in; (b) using a different official used vehicle guide for

53. Qualifying volume-related trade discounts (section

determining the cost of used vehicles acquired by trade-in; (c)

471) — to treating qualifying volume-related trade discounts as

determining the cost of used vehicles purchased for cash using

a reduction in the cost of merchandise purchased at the time

the actual purchase price of the vehicle; or (d) reconstructing

the discount is recognized in accordance with Regulations

the beginning-of-the-year cost of used vehicles purchased for

section 1.471-3(b). Complete Schedule D, Parts II and III, of

cash using values computed by national auto auction

Form 3115, as applicable. See section 21.04 in the Appendix of

companies based on vehicles purchased for cash, where the

Rev. Proc. 2008-52.

national auto auction company selected is consistently used.

54. Impermissible methods of inventory identification

Complete Schedule C, Part I, of Form 3115. See section 22.05

and valuation (section 471) — from an impermissible method

in the Appendix of Rev. Proc. 2008-52.

described in Regulations sections 1.471-2(f)(1) through (5),

61. Change to IPIC inventory method (section 472) — for a

including a LIFO taxpayer restoring a write down of inventory

qualifying applicant, from a non-inventory price index

below cost or discontinuing maintaining an inventory reserve;

computation (IPIC) LIFO inventory method to the IPIC method

from a gross profit method; or from a method of determining

in accordance with all relevant provisions of Regulations section

market that is not in accordance with section 1.471-4; or

1.472-8(e)(3); or, from the IPIC method as described in T.D.

changing from a method that is not in accordance with section

7814, 1982-1 C.B. 84 (the old IPIC method) to the IPIC method

1.471-2(c) for determining the value of “subnormal goods;” to a

as described in T.D. 8976, 2002-1 C.B. 421 (the new IPIC

permitted inventory method (identification or valuation, or both).

method), which includes the following required changes (if

Complete Schedule D, Parts II and III, of Form 3115, as

applicable): from using 80% of the inventory price index (IPI) to

applicable. See section 21.05 in the Appendix of Rev. Proc.

using 100% of the IPI to determine the base-year cost and

2008-52, as modified by Rev. Proc. 2009-39.

dollar-value of a LIFO pool(s); from using a weighted arithmetic

55. Core Alternative Valuation Method for

mean to using a weighted harmonic mean to compute an IPI for

remanufactured and rebuilt motor vehicle parts (section

a dollar-value pool(s); and from using a components-of-cost

471) — for remanufacturers and rebuilders of motor vehicle

method to define inventory items to using a total-product-cost

parts and resellers of remanufactured and rebuilt motor vehicle

method to define inventory items. Complete Schedule C of

parts that use the lower of cost or market method to value their

Form 3115, as applicable. See section 22.06 in the Appendix of

inventory of cores, to the safe harbor method of accounting (the

Rev. Proc. 2008-52.

Core Alternative Valuation method) to value inventories of cores

62. Changes within IPIC inventory method (section

as provided for in Rev. Proc. 2003-20, 2003-1 C.B. 445.

472) — for one or more of the following changes within IPIC:

Complete Schedule D, Parts II and III, of Form 3115, as

(a) from the double-extension IPIC method to the link-chain

applicable. See section 21.06 in the Appendix of Rev. Proc.

IPIC method, or vice versa; (b) to or from the 10 percent

2008-52.

method; (c) to a pooling method described in Regulations

56. Change from LIFO inventory method (section

section 1.472-8(b)(4) or Regulations section 1.472-8(c)(2),

472) — for an applicant changing from the LIFO inventory

including a change to begin or discontinue applying one or both

method for its entire LIFO inventory, or for a pool or pools within

of the 5 percent pooling rules; (d) combine or separate pools as

its LIFO inventory, to the permitted method as described in

a result of the application of a 5 percent pooling rule described

section 22.01(1)(b) in the Appendix of Rev. Proc. 2008-52.

in Regulations section 1.472-8(b)(4) or Regulations section

Complete Schedule D, Parts II and III, of Form 3115, as

1.472-8(c)(2); (e) change the selection of BLS tables from

applicable. See section 22.01 in the Appendix of Rev. Proc.

Table 3 (Consumer Price Index for All Urban Consumers

2008-52.

(CPI-U): U.S. city average, detailed expenditure categories) of

57. Determining current-year cost under the LIFO

the monthly CPI Detailed Report to Table 6 (Producer price

inventory method (section 472) — for an applicant changing

indexes and percent changes for commodity groupings and

its method of determining current-year cost: to: (a) the actual

individual items, not seasonally adjusted) of the monthly PPI

cost of the goods most recently purchased or produced

Detailed Report, or vice versa; or (f) change the assignment of

(most-recent acquisitions method); (b) the actual cost of the

one or more inventory items to BLS categories under either

goods purchased or produced during the tax year in the order of

Table 3 of the monthly CPI Detailed Report or Table 6 of the

acquisition (earliest-acquisitions method); (c) the average unit

monthly PPI Detailed Report; (g) change the representative

cost equal to the aggregate actual cost of all the goods

month when necessitated because of a change in tax year or a

purchased or produced throughout the tax year divided by the

change in method of determining current-year cost made

total number of units so purchased or produced; (d) the specific

pursuant to section 22.02 in the Appendix of Rev. Proc.

identification method; or (e) a rolling-average method if the

2008-52; or (h) change from using preliminary BLS price

applicant uses that rolling-average method in accordance with

indexes to using final BLS price indexes to compute an

Rev. Proc. 2008-43, 2008-30 I.R.B. 186. Complete Schedule C,

inventory price index, or vice versa. Complete Schedule C of

Part I, of Form 3115. See section 22.02 in the Appendix of Rev.

Form 3115, as applicable. See section 22.07 in the Appendix of

Proc. 2008-52.

Rev. Proc. 2008-52, as modified by Rev. Proc. 2009-39.

58. Alternative LIFO inventory method (section 472) — for

63. Replacement cost method for automobile dealers’

a qualifying applicant that sells new automobiles or new

parts inventory (sections 471 and 472) — to the replacement

light-duty trucks, to the Alternative LIFO Method described in

Rev. Proc. 97-36, 1997-2 C.B. 450, as modified by Rev. Proc.

cost method for automobile dealers’ parts inventory described

in Rev. Proc. 2002-17, 2002-1 C.B. 676. Complete Schedule D,

2008-23, 2008-12 I.R.B. 664. Complete Schedule C of Form

3115, as applicable. See section 22.03 in the Appendix of Rev.

Parts II and III, of Form 3115, as applicable. See section 21.07

in the Appendix of Rev. Proc. 2008-52.

Proc. 2008-52.

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Instructions For Form 3115 - Application For Change In Accounting Method - Internal Revenue Service - 2009 Page 12

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