SECTION 3. SCOPE

.01 Applicability . Except as provided in section 3.02 of this revenue procedure, this revenue procedure applies to any taxpayer requesting the Commissioner’s approval to adopt, change, or retain an annual accounting period for federal income tax purposes.

.02 Inapplicability . This revenue procedure does not apply to:

(1) Automatic approval. An adoption, change, or retention in annual accounting period that is permitted to be made pursuant to a provision in the Code or regulations or a published automatic approval procedure. Before submitting an application pursuant to this revenue procedure, taxpayers are encouraged to review the automatic approval procedures referenced in § 1.442–1 and the following revenue procedures: Rev. Proc. 2000–11 (for corporations); Rev. Proc. 2001–XX (for partnerships, S corporations, electing S corporations, and PSCs); Rev. Proc. 66–50, as modified by Rev. Proc. 81–40, 1981–2 C.B. 604 (for individuals); Rev. Proc. 85–58, 1985–2 C.B. 740, and Rev. Proc. 76–10, 1976–1 C.B. 548, as modified by Rev. Proc. 79–3, 1979–1 C.B. 483 (for exempt organizations); Rev. Proc. 87–27, 1987–1 C.B. 769 (for employee retirement plans and employee trusts); and Rev. Proc. 85–15, 1985–1 C.B. 516 (for changes to comply with § 441(g)).

(2) Under examination . A change or retention of annual accounting period if the taxpayer is under examination, unless it obtains consent of the appropriate director as provided in section 6.06(1).

(3) Before an area office . A change or retention in annual accounting period if the taxpayer is before an area office with respect to any income tax issue and its annual accounting period is an issue under consideration by the area office.

(4) Before a federal court . A change or retention in annual accounting period if the taxpayer is before a federal court with

respect to any income tax issue and its annual accounting period is an issue under consideration by the federal court.

(5) Consolidated group member . A change or retention in annual accounting period by a taxpayer that is (or was formerly) a member of a consolidated group that is: (a) under examination for a taxable year(s) that the taxpayer was a member of the group, unless the taxpayer obtains consent of the appropriate director as provided in section 6.06(1); or (b) before an area office or before a federal court for a taxable year(s) that the taxpayer was a member of the group and the annual accounting period is an issue under consideration by the area office or the federal court.

(6) Partnerships and S corporations. A change or retention in annual accounting period by a partnership or S corporation if, on the date the entity would otherwise file its application with the service center, the entity’s annual accounting period is an issue under consideration in the examination of a partner’s or shareholder’s federal income tax return or an issue under consideration by an area office or by a federal court with respect to a partner’s or shareholder’s federal income tax return.