[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: 26CFR1.472-6]

[Page 522-523]
 
                       TITLE 26--INTERNAL REVENUE
 
    CHAPTER I--INTERNAL REVENUE SERVICE, DEPARTMENT OF THE TREASURY 
                               (CONTINUED)
 
PART 1_INCOME TAXES--Table of Contents
 
Sec. 1.472-6  Change from LIFO inventory method.

    If the taxpayer is granted permission by the Commissioner to 
discontinue the use of LIFO method of taking inventories, and thereafter 
to use some

[[Page 523]]

other method, or if the taxpayer is required by the Commissioner to 
discontinue the use of the LIFO method by reason of the taxpayer's 
failure to conform to the requirements detailed in Sec. 1.472-2, the 
inventory of the specified goods for the first taxable year affected by 
the change and for each taxable year thereafter shall be taken--
    (a) In conformity with the method used by the taxpayer under section 
471 in inventorying goods not included in his LIFO inventory 
computations; or
    (b) If the LIFO inventory method was used by the taxpayer with 
respect to all of his goods subject to inventory, then in conformity 
with the inventory method used by the taxpayer prior to his adoption of 
the LIFO inventory method; or
    (c) If the taxpayer had not used inventories prior to his adoption 
of the LIFO inventory method and had no goods currently subject to 
inventory by a method other than the LIFO inventory method, then in 
conformity with such inventory method as may be selected by the taxpayer 
and approved by the Commissioner as resulting in a clear reflection of 
income; or
    (d) In any event, in conformity with any inventory method to which 
the taxpayer may change pursuant to application approved by the 
Commissioner.

[T.D. 6500, 25 FR 11730, Nov. 26, 1960]