SECTION 3. SCOPE

This revenue procedure applies to eligible partnerships (described in section 3.01 of this revenue procedure) that elect to close their books monthly (the Monthly Closing Election) and to eligible partners (described in section 3.02 of this revenue procedure) that consent to take into account their distributive shares of partnership income on a monthly basis (the Monthly Closing Consent).

.01 Eligible Partnership.

(1) Generally . An entity is an eligible partnership if all of the following conditions are met as of the test date:

(a) The entity is a partnership for federal tax purposes;

(b) All allocations of income, gain, loss, deduction, and credit of the partnership have substantial economic effect; and

(c) At least 95 percent of the partnership’s income for the test period was (or is reasonably expected to be) income that is exempt from tax under § 103.

(i) If, on the test date, the partnership has been in existence for at least 6 full calendar months, then the test period is the 6 full calendar months preceding the test date; and

(ii) If, on the test date, the partnership has not been in existence for at least 6 full calendar months, then the test period is the first 6 full calendar months of the partnership’s existence.

(2) Test Date . The test date is the first day of the month for which the Monthly Closing Election is effective.

.02 Eligible Partner . A partner is an eligible partner if it is a RIC, as defined in § 851, that is entitled to hold itself out as a money market fund, or the equivalent of a money market fund, in accordance with the provisions of Rule 2a–7(b).