SECTION 5. MONTHLY CLOSING

ELECTION

.01 Manner of Partnership Making the Election. An eligible partnership may make a Monthly Closing Election by filing a statement with the appropriate service center. The statement must be titled “ELECTION UNDER REVENUE PROCEDURE 2002–68,” and must include: (1) Identification of the partnership by name, address, and EIN, and the name and phone number of a contact person for the partnership;

(2) A statement that the partnership elects a monthly closing of the books for all present and future consenting partners;

(3) The signature of a person with authority to sign the partnership’s Form 1065, U.S. Return of Partnership Income ; and

(4) The effective month of the election. The election is effective for the calendar month in which the election is filed,

unless the partnership requests the election to be effective for either of the two immediately preceding calendar months. For example, if a calendar year partnership states that the monthly closing election is to begin for June, the partnership will close its books June 30. In computing taxable income for any year ending on or after June 30, a consenting partner must include the partner’s share of partnership items and guaranteed payments for the period from the partnership’s last closing of the books (generally December 31 of the prior year) through June 30. There will be a closing of the books and a monthly inclusion of the partner’s share of these items and guaranteed payments at the end of each future month.

.02 Time for Making the Election . The partnership’s Monthly Closing Election may be made at any time. See, however, section 6.02 of this revenue procedure for limitations on the time for a partner to effect a Monthly Closing Consent.