SECTION 5. MAKING THE MONTHLY

CLOSING ELECTION

.01 Manner of Making the Election . An eligible partnership makes a monthly closing election by providing in the entity’s governing documents that—

(a) the partnership is making a monthly closing election that is effective as provided under section 5.02 of this revenue procedure, and

(b) all partners consent to the election. .02 Effective Date of the Election . The monthly closing election is effective on the later of:

(a) the start-up date of the partnership (as defined in section 4.05(1) of this revenue procedure), or

(b) the first day of the month in which the provision described in section 5.01 of this revenue procedure is first included in the entity’s governing documents.

.03 Terminations under § 708(b)(1)(B) . A termination of the partnership under § 708(b)(1)(B) does not terminate the monthly closing election and does not cause the partnership to close its books under § 1.706–1(c) other than as described in section 6 of this revenue procedure.