SECTION 7. GENERAL APPLICATION PROCEDURES

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

.02 Filing Requirements.

spectively. F’s gross income for each of those same taxable years from all sources was $150,000.

(ii) F’s interests in F’s pass-through entities will be disregarded only if each passthrough entity satisfies one of the exceptions enumerated under section 4.02(2) of this revenue procedure. F’s interest in IJK may be disregarded under the exception in section 4.02(2)(a), because F is the majority interest partner in IJK. F’s interest in LMN may be disregarded under the exception in section 4.02(2)(b), because both F and LMN are changing to the calendar taxable year, which is the taxable year of individual G, the other 50 percent partner. F’s interests in RST and UVW may each be disregarded under the exception in section 4.02(2)(c), because F’s new taxable year would result in less deferral than F’s old taxable year (a new deferral period of 0 months as compared to the prior deferral period of 6 months from December 31 and June 30). Because F is not the majority interest partner in OPQ, and because F’s new taxable year would not result in less deferral from this partnership, F’s interest in OPQ may be disregarded only if the de minimis exception in section 4.02(2)(d) is satisfied. In this case, the income from OPQ for each of the prior three taxable years was less than 5 percent of F’s total gross income from all sources, and less than $10,000. Consequently, F’s interest in OPQ may be disregarded under the de minimis exception in section 4.02(2)(d). Because all of F’s passthrough interests are disregarded under section 4.02(2), F is eligible to change under this revenue procedure.