Rev. Proc. 81-40

SECTION 1. PURPOSE

The purpose of this revenue procedure is to modify sections 2 and 3 of Rev. Proc. 66-50, 1966-2 C.B. 1260, and sections 2 and 3 of Rev. Proc. 68-41, 1968-2 C.B. 943. Rev. Proc. 66-50 provides an administrative procedure whereby individuals filing federal income tax returns on a fiscal-year basis may expeditiously obtain approval of a change in annual accounting period to a calendar-year basis. Rev. Proc. 68-41 provides an administrative procedure whereby a bank or trust company serving as trustee or co-trustee may expeditiously obtain approval of a change in annual accounting period of an inter vivos or testamentary trust. Both of these revenue procedures require that Form 1128, Application for Change in Accounting Period, be filed with the District Director of Internal Revenue for the district in which the taxpayer's return is filed on or before the last day of the month following the close of the short period for which the return is required to effect the change in accounting period.

SEC. 2. BACKGROUND

Rev. Proc. 66-50 and Rev. Proc. 68-41 are modified to reflect amendments to the Internal Revenue Code pertaining to the place for filing certain tax returns (Section 6091(b) of the Code, Pub. L. No. 89-713, 1966-2 C.B. 617) and to reflect amendments to the Income Tax Regulations pertaining to the due date for filing an application for a change of a taxpayer's annual accounting period (Section 1.442-1(b)(1) of the regulations, T.D. 7286, 1973-2 C.B. 149).

SEC. 3. APPLICATION

Sections 2 and 3 of Rev. Proc. 66-50 and sections 2 and 3 of Rev. Proc. 68-41 are modified to provide that the Form 1128 be filed at the Internal Revenue Service Center where the taxpayer's income tax return is filed on or before the 15th day of the second calendar month following the close of the short period for which a federal income tax return is required to effect the change of accounting period.

SEC. 4. INQUIRIES

Inquiries in regard to this revenue procedure as well as Rev. Proc. 66-50 and Rev. Proc. 68-41 should be addressed to the Commissioner of Internal Revenue, Attention: T:C:C:1, Washington, D.C. 20224.

SEC. 5. EFFECT ON OTHER DOCUMENTS

Rev. Proc. 66-50 and Rev. Proc. 68-41 are modified.