SECTION 1. PURPOSE

This revenue procedure provides procedures for certain partnerships, S corporations, electing S corporations (as defined in section 5.01), and personal service corporations (PSCs) to obtain automatic approval to adopt, change, or retain their annual accounting period under § 442 of the Internal Revenue Code. This revenue procedure modifies, amplifies, and supersedes Rev. Proc. 87–32, 1987–2 C.B. 396. Any partnership, S corporation, electing S corporation, or PSC complying with the applicable provisions of this revenue procedure has established a business purpose and obtained the approval of the Commissioner of the Internal Revenue Service to adopt, change, or retain its annual accounting period under § 442 and the Income Tax Regulations thereunder.