SECTION 7. GENERAL

APPLICATION PROCEDURES

.01 Approval . Approval is hereby granted to any corporation within the scope of this revenue procedure to change its annual accounting period, provided the corporation complies with all the applicable provisions of this revenue procedure. Approval is granted beginning with the first effective year. A corporation granted approval under this revenue procedure to change its annual accounting period is deemed to have established a business purpose for the change to the satisfaction of the Commissioner.

.02 Filing Requirements .

(1) Where to file . Any corporation (including the common parent of a consolidated group) that wants to change its annual accounting period pursuant to the provisions of this revenue procedure must complete and file a Form 1128 with the Director, Internal Revenue Service Center, Attention: ENTITY CONTROL, where the corporation files its federal income tax return. No copies of Form 1128 are required to be sent to the national office. The corporation also must attach a copy of the Form 1128 to the federal income tax return filed for the short period required to effect the change. Any corporation completing and filing a Form 1128 on behalf of a CFC or FPHC must file the Form 1128 where the corporation files its federal income tax return.

(2) When to file . A Form 1128 filed pursuant to this revenue procedure will be considered timely filed for purposes of § 1.442–1(b)(1) only if it is filed on or before the due date (including extensions) for filing the federal income tax return for the short period required to effect such change.

(3) Label . In order to assist in the processing of the change in annual accounting period, reference to this revenue procedure must be made a part of the Form 1128 by either typing or legibly printing the following statement at the top of page 1 of the Form 1128: “FILED UNDER REV. PROC. 2002–37.” For a CFC that is revoking a § 898(c)(1)(B) election under section 4.01(4) of this revenue procedure, the label at the top of page 1 of the Form 1128 should read “REVOCATION OF § 898(c)(1)(B) ELECTION FILED UNDER REV. PROC. 2002–37.”

(4) Signature requirements . The Form 1128 must be signed on behalf of the corporation requesting the change of annual accounting period by an individual with authority to bind the corporation in such matters. If the corporation is a member of a consolidated group, the Form 1128 must be signed by a duly authorized officer of the common parent. If an agent is authorized to represent the corporation before the Service, to receive the original or a copy of correspondence concerning the application, or to perform any other act(s) regarding the application on behalf of the corporation, a power of attorney reflecting such authorization(s) should be

attached to the application. A corporation’s representative without a power of attorney to represent the corporation will not be given any information about the application.

(5) No user fee . A user fee is not required for an application filed under this revenue procedure and, except as provided in section 8.01 of this revenue procedure, the receipt of an application filed under this revenue procedure may not be acknowledged.

(6) Additional information . In the case of a corporation changing to a natural business year that satisfies the 25–percent gross receipts test described in section 5.06 of this revenue procedure, the corporation must supply the gross receipts for the most recent 47 months for itself (or any predecessor) in compliance with the instructions to Form 1128.

(7) Consolidated application . A common parent must file a single application to change the annual accounting period of its consolidated group, even if one or more of the subsidiaries of the group are requesting to use a 52–53-week taxable year that ends with reference to the common parent’s requested taxable year or the subsidiaries are requesting to use a taxable year consisting of 12 calendar months that coincides with the reference month of the common parent’s requested 52–53-week taxable year. See § 1.1502–76(a)(1) (common parent must attach a statement to its tax return as required by Rev. Proc. 89–56, 1989–2 C.B. 643, and comply with Rev. Rul. 72–184, 1972–1 C.B. 289). On the Form 1128 filed on behalf of a common parent and its subsidiaries, the common parent corporation must clearly indicate which corporations in the consolidated group (if any) are requesting a 52–53-week taxable year, and which (if any) are requesting a taxable year consisting of 12 calendar months. In addition, the common parent must answer all relevant questions on the Form 1128 for each member of the consolidated group.