[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: 26CFR1.481-3]

[Page 572]
 
                       TITLE 26--INTERNAL REVENUE
 
    CHAPTER I--INTERNAL REVENUE SERVICE, DEPARTMENT OF THE TREASURY 
                               (CONTINUED)
 
PART 1_INCOME TAXES--Table of Contents
 
Sec. 1.481-3  Adjustments attributable to pre-1954 years where change 
was not initiated by taxpayer.

    If the adjustments required by section 481(a) and Sec. 1.481-1 are 
attributable to a change in method of accounting which was not initiated 
by the taxpayer, no portion of any adjustments which is attributable to 
pre-1954 years shall be taken into account in computing taxable income. 
For example, if the total adjustments in the case of a change in method 
of accounting which is not initiated by the taxpayer amount to $10,000, 
of which $4,000 is attributable to pre-1954 years, only $6,000 of the 
$10,000 total adjustments is required to be taken into account under 
section 481 in computing taxable income. The portion of the adjustments 
which is attributable to pre-1954 years is the net amount of the 
adjustments which would have been required if the taxpayer had changed 
his method of accounting in his first taxable year which began after 
December 31, 1953, and ended after August 16, 1954.

[T.D. 6500, 25 FR 11735, Nov. 26, 1960, as amended by T.D. 8608, 60 FR 
40079, Aug. 7, 1995]