SECTION 2. BACKGROUND

.01 Taxable Year Defined .

(1) In general . Section 441(b) and § 1.441–1(b)(1) provide that the term “taxable year” generally means the taxpayer's annual accounting period, if it is a calendar or fiscal year, or, if applicable, the taxpayer's required taxable year.

(2) Annual accounting period . Section 441(c) and § 1.441–1(b)(3) provide that the term “annual accounting period”