Fillable Form 3115 - Application For Change In Accounting Method (Page 5 of 8) in pdf

Form 3115 (Rev. 12-2009)

Page

Schedule C—Changes Within the LIFO Inventory Method (see instructions)

Part I

General LIFO Information

Complete this section if the requested change involves changes within the LIFO inventory method. Also, attach a copy of all

Forms 970, Application To Use LIFO Inventory Method, filed to adopt or expand the use of the LIFO method.

Attach a description of the applicant’s present and proposed LIFO methods and submethods for each of the following

items:

a Valuing inventory (e.g., unit method or dollar-value method).

b Pooling (e.g., by line or type or class of goods, natural business unit, multiple pools, raw material content, simplified dollar-

value method, inventory price index computation (IPIC) pools, vehicle-pool method, etc.).

c Pricing dollar-value pools (e.g., double-extension, index, link-chain, link-chain index, IPIC method, etc.).

d Determining the current-year cost of goods in the ending inventory (i.e., most recent acquisitions, earliest acquisitions during

the current year, average cost of current-year acquisitions, or other permitted method).

If any present method or submethod used by the applicant is not the same as indicated on Form(s) 970 filed to adopt or

expand the use of the method, attach an explanation.

If the proposed change is not requested for all the LIFO inventory, attach a statement specifying the inventory to which the

change is and is not applicable.

If the proposed change is not requested for all of the LIFO pools, attach a statement specifying the LIFO pool(s) to which the

change is applicable.

Attach a statement addressing whether the applicant values any of its LIFO inventory on a method other than cost. For

example, if the applicant values some of its LIFO inventory at retail and the remainder at cost, identify which inventory items

are valued under each method.

If changing to the IPIC method, attach a completed Form 970.

Change in Pooling Inventories

Part II

If the applicant is proposing to change its pooling method or the number of pools, attach a description of the contents of, and

state the base year for, each dollar-value pool the applicant presently uses and proposes to use.

If the applicant is proposing to use natural business unit (NBU) pools or requesting to change the number of NBU pools,

attach the following information (to the extent not already provided) in sufficient detail to show that each proposed NBU was

determined under Regulations section 1.472-8(b)(1) and (2):

a A description of the types of products produced by the applicant. If possible, attach a brochure.

b A description of the types of processes and raw materials used to produce the products in each proposed pool.

c If all of the products to be included in the proposed NBU pool(s) are not produced at one facility, state the reasons for the

separate facilities, the location of each facility, and a description of the products each facility produces.

d A description of the natural business divisions adopted by the taxpayer. State whether separate cost centers are maintained

and if separate profit and loss statements are prepared.

e A statement addressing whether the applicant has inventories of items purchased and held for resale that are not further

processed by the applicant, including whether such items, if any, will be included in any proposed NBU pool.

A statement addressing whether all items including raw materials, goods-in-process, and finished goods entering into the

entire inventory investment for each proposed NBU pool are presently valued under the LIFO method. Describe any items that

are not presently valued under the LIFO method that are to be included in each proposed pool.

g A statement addressing whether, within the proposed NBU pool(s), there are items both sold to unrelated parties and

transferred to a different unit of the applicant to be used as a component part of another product prior to final processing.

If the applicant is engaged in manufacturing and is proposing to use the multiple pooling method or raw material content

pools, attach information to show that each proposed pool will consist of a group of items that are substantially similar. See

Regulations section 1.472-8(b)(3).

If the applicant is engaged in the wholesaling or retailing of goods and is requesting to change the number of pools used,

attach information to show that each of the proposed pools is based on customary business classifications of the applicant’s

trade or business. See Regulations section 1.472-8(c).

3115

Form

(Rev. 12-2009)

Form 3115 - Application For Change In Accounting Method Page 5

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