SECTION 3. SCOPE

This revenue procedure applies to a taxpayer that chooses to account for track structure expenditures under the method described in section 5 of this revenue procedure, and that meets the following requirements: 1) the taxpayer is a Class II or Class III railroad as designated by the Surface Transportation Board, in accordance with 49 C.F.R. Part 1201 1–1; and 2) the taxpayer does not file, and is not a member of a combined reporting group that files, a Railroad Annual Report R–1 (“Form R–1”) with the Surface Transportation Board.