Par. 6. Section 1.148-6 is amended by adding new paragraphs (a)(3) and (d)(1)(iii) to read as follows:
(a) * * *
(3) Absence of allocation and accounting methods. If an issuer fails to maintain books and records sufficient to establish the accounting method for an issue and the allocation of the proceeds of that issue, the rules of this section are applied using the specific tracing method. This paragraph (a)(3) applies to bonds issued on or after the date that is 60 days after publication of final regulations in the Federal Register.
* * * * *
(d) * * *
(1) * * *
(iii) Timing. An issuer must account for the allocation of proceeds to expenditures not later than 18 months after the later of the date the expenditure is paid or the date the project, if any, that is financed by the issue is placed in service. This allocation must be made in any event by the date 60 days after the fifth anniversary of the issue date or the date 60 days after the retirement of the issue, if earlier. This paragraph (d)(1)(iii) applies to bonds issued on or after the date that is 60 days after publication of final regulations in the Federal Register.
* * * * *