SECTION 4. SCOPE

.01 Applicability. This revenue procedure, which is the exclusive procedure for

taxpayers within its scope to secure the Commissioner’s approval, applies to:

(1) Required taxable year . A partnership, S corporation, electing S corporation, or PSC that wants to change to its required taxable year (as defined in section 5.02 of this revenue procedure), or to a 52–53-week taxable year ending with reference to such taxable year;

(2) Natural business year . A partnership, S corporation, electing S corporation, or PSC (other than a member of a tiered structure as defined in § 444 and 1.444–2T) that wants to change to or retain a natural business year that satisfies the 25-percent gross receipts test described in section 5.04 of this revenue procedure, or to a 52–53-week taxable year ending with reference to such taxable year;

(3) Ownership taxable year . An S corporation or electing S corporation that wants to adopt, change to, or retain its ownership taxable year (as defined in section 5.05 of this revenue procedure), or a 52–53-week taxable year ending with reference to such taxable year; or

(4) 52–53-week taxable year . A partnership, S corporation, electing S corporation, or PSC that wants to change from a 52–53-week taxable year to a non52–53-week taxable year that ends on the last day of the same calendar month, and vice versa .

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

(1) Under examination . A change or retention in annual accounting period if the partnership, S corporation, electing S corporation, or PSC is under examination, unless it obtains consent of the appropriate director as provided in section 7.03(1). (2) Before an area office . A change or retention in annual accounting period if the partnership, S corporation, electing S corporation, or PSC 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;

(3) Before a federal court . A change or retention in annual accounting period if the partnership, S corporation, electing S corporation, or PSC 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;

(4) 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 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 or shareholder’s federal income tax return.

(5) Prior change . A change to, or retention of, a natural business year as described in section 4.01(2) of this revenue procedure if the partnership, S corporation, electing S corporation, or PSC has changed its annual accounting period at any time within the most recent 48-month period ending with the last month of the requested taxable year. For this purpose, the following changes are not considered changes in annual accounting period:

(a) a change to a required taxable year or ownership taxable year, as described in section 4.01(1) or (3) of this revenue procedure, respectively,

(b) a change to or from a 52–53week taxable year as described in section 4.01(4) of this revenue procedure, or (c) a change by a former subsidiary to its former common parent’s taxable year in order to comply with the common taxable year requirement of section 1.1502–76(a)(1).

.03 Nonautomatic Changes . Any partnership, S corporation, electing S corporation, or PSC that wants to adopt, change to, or retain an annual accounting period not described in section 4.01 of this revenue procedure, or that cannot make a change under this revenue procedure because of a prior change as described in section 4.02(5) of this revenue procedure, must obtain the approval of the Commissioner. See § 1.442–1(b) and Rev. Proc. 2001–XX, for rules relating to nonautomatic changes of annual accounting periods by partnerships, S corporations, electing S corporations, and PSCs.