SECTION 4. SCOPE

.01 Applicability . This revenue procedure applies to a taxpayer with one or more separate and distinct trade(s) or business(es), within the meaning of § 1.446–1(d) that has—

(a) total assets of less than $10 million as of the first day of the taxable year for which a change in method of accounting under the final tangible property regulations and corresponding procedures regarding related changes in method of accounting is effective; or

(b) average annual gross receipts of $10 million or less for the prior three taxable years, as determined under § 1.263(a)– 3(h)(3) (substituting “separate and distinct trade or business” for “taxpayer”).

.02 Inapplicability . This revenue procedure does not apply to a taxpayer’s separate and distinct trade or business if that trade or business does not meet one (or both) of the criteria in section 4.01(a) and (b) of this revenue procedure.