[Code of Federal Regulations]
[Title 26, Volume 6]
[Revised as of April 1, 2004]
From the U.S. Government Printing Office via GPO Access
[CITE: 26CFR1.467-9]

[Page 335]
 
                       TITLE 26--INTERNAL REVENUE
 
    CHAPTER I--INTERNAL REVENUE SERVICE, DEPARTMENT OF THE TREASURY 
                               (CONTINUED)
 
PART 1_INCOME TAXES--Table of Contents
 
Sec. 1.467-9  Effective dates and automatic method changes for certain 
agreements.

    (a) In general. Sections 1.467-1 through 1.467-7 are applicable 
for--
    (1) Disqualified leasebacks and long-term agreements entered into 
after June 3, 1996; and
    (2) Rental agreements not described in paragraph (a)(1) of this 
section that are entered into after May 18, 1999.
    (b) Automatic consent for certain rental agreements. Section 1.467-8 
applies only to rental agreements described in Sec. 1.467-8.
    (c) Application of regulation project IA-292-84 to certain 
leasebacks and long-term agreements. In the case of any leaseback or 
long-term agreement (other than a disqualified leaseback or long-term 
agreement) entered into after June 3, 1996, and on or before May 18, 
1999, a taxpayer may choose to apply the provisions of regulation 
project IA-292-84 (1996-2 C.B. 462)(see Sec. 601.601(d)(2) of this 
chapter).
    (d) Entered into. For purposes of this section and Sec. 1.467-8, a 
rental agreement is entered into on its agreement date (within the 
meaning of Sec. 1.467-1(h)(1) and, if applicable, Sec. 1.467-
1(f)(1)(i)).
    (e) Change in method of accounting--(1) In general. For the first 
taxable year ending after May 18, 1999, a taxpayer is granted consent of 
the Commissioner to change its method of accounting for rental 
agreements described in paragraph (a)(2) of this section to comply with 
the provisions of Sec. Sec. 1.467-1 through 1.467-7.
    (2) Application of regulation project IA-292-84. For the first 
taxable year ending after May 18, 1999, a taxpayer is granted consent of 
the Commissioner to change its method of accounting for any rental 
agreement described in paragraph (c) of this section to comply with the 
provisions of regulation project IA-292-84 (1996-2 C.B. 462) (see Sec. 
601.601(d)(2) of this chapter).
    (3) Automatic change procedures. A taxpayer changing its method of 
accounting in accordance with this paragraph (e) must follow the 
automatic change in accounting method provisions of Rev. Proc. 98-60 
(see Sec. 601.601(d)(2) of this chapter) except, for purposes of this 
paragraph (e), the scope limitations in section 4.02 of Rev. Proc. 98-60 
are not applicable. A method change in accordance with paragraph (e)(1) 
of this section is made on a cut-off basis so no adjustment under 
section 481(a) is required.

[T.D. 8820, 64 FR 26875, May 18, 1999]