SECTION 6. TRANSITION RULES

.01 The Service will not challenge a RIC partner’s look-through treatment for purposes of an asset determination, provided that—

(1) The asset determination is made as of a date that is in a taxable year beginning before January 1, 2004;

(2) The partnership would be an eligible partnership as defined in Rev. Proc. 2002–68; (3) The RIC partner’s inclusion of income, gain, loss, deduction, and credits is consistent with that permitted under that revenue procedure; and

(4) The RIC partner’s tax treatment is consistent with an election under § 761(a) to be excluded from the provisions of subchapter K.

.02 The Service will not challenge a consenting RIC partner’s look-through treatment for purposes of an asset determination, provided that the partnership is an electing partnership under the provisions of Rev. Proc. 2002–16 or Rev. Proc. 2002–68 to which the grandfather rule in section 9.02(1) of Rev. Proc. 2003–84 applies.

.03 For purposes of this Section 6, “look-through treatment” means that a RIC makes asset determinations as if it directly invested in the assets held by a partnership in which it invests.

26 CFR 601.201: Rulings and determination letters. (Also Part I, §§ 851, 852; 1.851–2.)

Rev. Proc. 2005–20