SECTION 5. DEFINITIONS

The following definitions apply solely for the purpose of this revenue procedure:

.01 Individual . In the case of married individuals, for any year in which a husband and wife file separate federal income tax returns, the term “individual” includes only the husband or wife who is applying to change his or her annual accounting period under this revenue procedure. For any year in which a husband and wife file a joint federal income tax return, the term “individual” includes both spouses, even if only one spouse is applying to change an annual accounting period under this revenue procedure.

.02 Pass-through Entity . For purposes of this revenue procedure the term “pass-through entity” means a partnership; a trust; an estate; a common trust fund (as defined in § 584); a CFC (as defined in § 957), but only if the individual is a U.S. shareholder (as defined in § 951(b)); an FPHC (as defined in § 552), but only if the individual is a U.S. shareholder (as defined in § 551(a)); a passive foreign investment company (PFIC), but only if the individual has elected to treat such PFIC as a qualified electing fund (as defined in § 1295); and a closely-held real estate investment trust (as defined in § 6655(e)(5)(B)), but only to the extent the individual is described in § 6655(e)(5)(A).

.03 First Effective Year . The first effective year is the first taxable year for which a change in annual accounting period is effective. Thus, in the case of a change, the first effective year is the short period required to effect the change. The first effective year is also the first taxable year for complying with all the terms and conditions set forth in this revenue procedure necessary to effect the change in annual accounting period.

.04 Short Period . An individual's short period is the period beginning with the day following the last day of the old taxable year and ending with the day preceding the first day of the new taxable year.