SEC. 3. SCOPE

.01 This revenue procedure generally applies to any consolidated group that files (or is required to file) a consolidated tax return for the taxable year preceding the first taxable year that begins on or after July 12, 1995.

.02 This revenue procedure generally does not apply to any consolidated group that is subject to § 1.338(h)(10)– 1(e)(6) for taxable years beginning on or after July 12, 1995. However, permission for such groups to discontinue filing consolidated returns will be considered on a case-by-case basis.

.03 For purposes of this revenue procedure:

(1) The definitions contained in the regulations under § 1502 and in T.D. 8597 generally apply. (2) The term ‘‘electing consolidated group’’ means the consolidated group that has elected to discontinue filing consolidated returns pursuant to this revenue procedure.

(3) The term ‘‘former member’’ means any corporation that would have been a member of an electing consolidated group on any day beginning with the first day of the first taxable year that begins on or after July 12, 1995, and ending on the date the closing agreement described in section 4 below is executed, if the electing consolidated group had not elected to discontinue filing consolidated returns.

1995–2 C.B. 399

cost or other basis of consumer durable property subject to rent-to-own contracts.