SECTION 5. Making a Monthly

Closing Election.

5.01. 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 § 5.02 of this revenue procedure, and (b) all partners consent to the election.

5.02 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 § 4.05(1) of this revenue procedure); or (b) the first day of the month in which the provision described in § 5.01 of this revenue procedure is first included in the entity’s governing documents.

5.03 Partnership 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 § 6 of this revenue procedure.