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Screen 970 - Application To Use LIFO Method, Page 1 (1040)

Application to Use LIFO Inventory Method

Enter the
T, S, J
 code to have the correct taxpayer's name appear on Form 970.

Statement of Election Under Section 472

Enter
X
 if you're filing an amended return to adopt the LIFO inventory method. The text "Filed Pursuant to Section 301.9100-2" prints across the top of Form 970.
Enter the date of the ending of the tax year for which the LIFO method will be used. This field is mandatory to calculate Form 970.

LIFO Inventory Requirements

Enter
1
 or
Y
 (Yes) to use the LIFO method, or enter
2
 or
N
 (No) to not use the LIFO method. If the answer to this question is No, the person identified in the
T, S, J
 field isn't eligible to use the LIFO method and Form 970 won't calculate.

Specific Goods (Unit) Method

Select the method used to figure the cost of goods sold in closing inventories. If a method other than those listed is used, enter an explanation in the statement attached to
If other method used, provide explanation
.

Dollar-Value Method

If you're using a method other than those listed to calculate the LIFO value of dollar-value pools, enter an explanation in the statement attached to
If other method used, describe and justify
.
If you're using a method other than those listed to calculate the current-year cost of goods in the closing inventories and to value the LIFO increments of the dollar-value pools, enter an explanation in
If other method used, provide explanation
.
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