SECTION 3. SCOPE

This revenue procedure applies only when all of the following conditions are met:

(1) One business entity ( i.e., a corporation, partnership, or sole proprietorship) (the “successor”) acquires from another business entity (the “predecessor”) substantially all the property (a) used in the trade or business of the predecessor (including when two or more corporations are parties to a merger agreement under which the surviving corporation becomes the owner of all the assets and assumes all the liabilities of the absorbed corporation(s)), or (b) used in a separate unit of a trade or business of the predecessor;

(2) During the pre-acquisition portion of the “acquisition year” (the calendar year in which the acquisition occurs), the predecessor is required to file information returns as a result of making or receiving payments, or withholding or collecting taxes, as provided under the appropriate sections of the Code and regulations set forth above;

(3) During the post-acquisition portion of the acquisition year, the predecessor (for an acquisition described in section 3(1)(a)) or the separate unit of the predecessor (for an acquisition described in section 3(1)(b)) does not make or receive any such payments and does not withhold or collect any such tax;

(4) The requirements of section 5 of this revenue procedure are met; and

(5) The Internal Revenue Service instructions or publications relating to Forms 1042–S, a specific form in the series 1098, 1099, or 5498, or Forms W-2G do not prohibit use of the alternative procedure described in section 5.