SECTION 5. BUSINESS PURPOSE

AND TERMS, CONDITIONS, AND ADJUSTMENTS

tion 5.05 .02 When to File

(1) In general (2) Electing S corporations .03 Where to File

.01 In General

(1) Approval of requests (2) Exceptions .02 Business Purpose

(1) Taxpayers that establish a busi-

ness purpose (2) Taxpayers that are deemed to

(1) In general (2) Electing S corporations (3) Exempt organizations .04 User Fee .05 Consolidated Groups — Separate Forms 1128 Not Required

.06 Additional Procedures If Under Examination, Before an Area Office, or Before a Federal Court

have established a business pur- pose .03 Natural Business Year

(1) Certain taxpayers under exami-

(1) Annual business cycle test (2) Seasonal business test

nation

June 3, 2002 1046 2002–22 I.R.B.

(2) Certain taxpayers before an

area office (3) Certain taxpayers before a fed-

eral court

conditions, and adjustments that the Commissioner may deem necessary to effect the adoption, change, or retention.