SECTION 7. TERMINATION OF

MONTHLY CLOSING ELECTION OR MONTHLY CLOSING CONSENT

.01 A Monthly Closing Election or Monthly Closing Consent may be revoked only with the consent of the Commissioner.

.02 Each month after the first calendar quarter in which a partnership’s Monthly Closing Election is effective, the definition of eligible partnership in section 3.01 of this revenue procedure is reapplied to the partnership, using the last day of the month as the test date and that month and the preceding 2 months as the test period. If for any month the partnership fails to satisfy the test mandated by the preceding sentence, then the partnership’s Monthly

Closing Election is terminated as of first day of the month. Even if the partnership subsequently qualifies as an eligible partnership, it may not make another Monthly Closing Election without the Commissioner’s consent.

.03 If a consenting partner’s status as an eligible partner (as defined in section 3.02 of this revenue procedure) changes at any time, the partner’s Monthly Closing Consent is ineffective on any day when that definition is not satisfied and is effective on any day when it is. Therefore, no new Monthly Closing Consent is required when a consenting partner sells one interest in an electing partnership and acquires another interest in the same partnership at a time when the partnership continues to have its Monthly Closing Election in effect.