SECTION 9. Effective Date.

9.01. In General . Except as otherwise expressly provided, this revenue procedure applies prospectively to any tax-exempt bond partnership with a “start-up date” under § 4.05(1) of this revenue procedure (that is, generally the later of the date the entity has more than one owner or more than a de minimis amount of assets) that occurs on or after [DATE THAT IS 30 DAYS AFTER THE DATE THAT THE FINAL VERSION OF THIS DOCUMENT IS RELEASED TO THE PUBLIC] . Further, except as otherwise expressly provided, this revenue procedure applies to any tax-exempt bond partnership without regard to its start-up date if new capital is originally contributed to the partnership on or after [DATE THAT IS 30 DAYS AFTER THE DATE THAT THE FINAL VERSION OF THIS DOCUMENT IS RELEASED TO THE PUBLIC] in an amount which has an aggregate fair market value that is greater than ten percent of the aggregate fair market value of the total assets owned by the partnership on the day before [DATE THAT IS 30 DAYS AFTER THE DATE THAT THE FINAL VERSION OF THIS DOCUMENT IS RELEASED TO THE PUBLIC] . For purposes of applying the ten percent new capital test in the preceding sentence, deemed capital contributions to a reconstituted partnership as a result of a partnership termination under § 708(b)(1)(B) upon the sale or exchange of more than 50 percent of the total interests in a partnership’s capital and profits within a 12-month period are disregarded. The IRS will not challenge any tax-exempt bond partnership’s eligibility to use a monthly closing election on the grounds that such partnership failed to follow specific modifications made to Rev. Proc.

(d) The partnership complies with the requirements of §§ 8.03 and 8.04 of this revenue procedure.

(2) Effect of Elimination of Annual Fil- ing Requirement . An entity that is not required to file a partnership return under this revenue procedure is not required to file a partnership return under § 6031(a) and, as a result, is not a partnership as defined under § 6231(a)(1). Consequently, the entity and its members will not be subject to the provisions of subchapter C of chapter 63. An abbreviated Form 1065 used to make the initial filing described in § 8.01 of this revenue procedure is not considered to be a partnership return for purposes of § 6233.

(3) Monthly Closing Election Effective for Portion of Taxable Year . A partnership that makes a monthly closing election that is effective after the first day of its taxable year must comply with the partnership reporting rules of § 6031(a) for that taxable year (but is still permitted to close its books on a monthly basis). If the partnership also makes the initial filing described in § 8.01 of this revenue procedure by the due date for its return for the first full taxable year during which the monthly closing election is in effect, then the partnership qualifies for elimination of annual filing requirements under § 8.01 of this revenue procedure for subsequent taxable years.

(4) Annual Reporting Required . Failure to qualify for the elimination of annual filing requirements under § 8.02(1) of this revenue procedure does not terminate the partnership’s monthly closing election. However, a partnership that fails to satisfy all of the requirements of § 8.02(1) of this revenue procedure is required to file a complete (not abbreviated) Form 1065 and to issue Schedules K–1 (Form 1065) to its partners as required by § 6031(a). A partnership that fails to file a Form 1065 or to issue Schedules K–1 as required is subject to the applicable penalties under §§ 6698 and 6722 for failure to file a partnership return and to furnish payee statements, as well as any other applicable penalties. Moreover, if a partnership is required to file a return under § 6031(a) but fails to do so, the period of limitations on assessment of tax attributable to items of that partnership remains open indefinitely under § 6229(a).

8.03. Requests for Information . Within 45 days of a request by the IRS or a part

ner (or a beneficial owner or a nominee of a beneficial owner), the partnership must make available all the information necessary to compute a partner’s taxable income, tax-exempt income, gain, loss, deduction, or credit, including sufficient information for a partner to determine the portion of the tax-exempt interest that may be subject to the alternative minimum tax and information regarding each partner’s share of any bond premium amortization under § 171, any market or original issue discount, and capital gain or loss.

8.04. Nominee and Beneficial Owner- ship Reporting .

(1) If an eligible electing partnership complies with the requirements of §§ 8.02 and 8.03 of this revenue procedure, the nominee reporting requirements of § 6031(c) and the regulations thereunder do not apply. In place of those requirements, the partnership and the partners must comply with this § 8.04. See § 1.6001–1(a) and (e) for rules that apply to recordkeeping requirements.

(2) Any person on whose behalf another person holds as a nominee an interest in an eligible partnership (a beneficial owner), other than a beneficial owner for which the relevant advisor or manager agrees to comply with § 8.04(3) of this revenue procedure, shall notify the partnership of its beneficial ownership status and provide the partnership with:

(a) its name, address, and taxpayer identification number and the name, address, and taxpayer identification number of its nominee; and

(b) the name of the partnership, its CUSIP number or other information sufficient to identify the partnership interest, and the amount of the partnership interest.

(3) In the case of a group of RICs that is managed or advised by a common, or affiliated, manager or advisor (the manager), the manager may elect to be responsible for collecting, retaining, and providing the IRS upon demand the beneficial ownership information. To make such an election, the manager must provide each eligible partnership in which any of the RICs has an equity interest a statement indicating that it is responsible for collecting, retaining, and providing the IRS upon demand the beneficial ownership information that otherwise would be required to be provided directly to the eligible partnerships by the beneficial owners. In addition,

October 6, 2008 825 2008–40 I.R.B.