Rev. Proc. 66-13

SECTION 1. PURPOSE.

The purpose of this Revenue Procedure is to provide an administrative procedure whereby organizations wholly exempt from Federal income tax may expeditiously obtain approval of a change in annual accounting period. Such organizations complying with the provisions hereof will be deemed to have obtained the approval of the Commissioner of Internal Revenue for a change in accounting period.

SEC. 2. BACKGROUND.

Under existing procedure, an organization wholly exempt from Federal income tax desiring to change its annual accounting period is required under the provisions of section 1.442-1(b)(1) of the Income Tax Regulations to file an application on Form 1128, Application for Change in Accounting Period, with the Commissioner of Internal Revenue on or before the last day of the month following the close of the short period for which a return is required to effect the change of accounting period.

SEC. 3. APPLICATION.

Subject to the conditions contained in this section and in section 5 below, any organization wholly exempt from Federal income tax desiring to change its annual accounting period, and whose exempt status is the same for the short period for which a return is required to effect a change in accounting period and for the taxable year immediately preceding such short period, may change its annual accounting period by filing an application on Form 1128 with the District Director of Internal Revenue for the district in which the organization files its return. Reference to this Revenue Procedure should be made a part of the application. The application shall be filed on or before the last day of the month following the close of the short period for which a return is required to effect the change of accounting period. Unless a letter is received by the organization from the District Director denying approval because the Form 1128 is not timely filed, it may be assumed that the change has been approved. The organization must attach a copy of the application to the return filed for the short period.

SEC. 4. EXEMPT ORGANIZATIONS NOT COVERED BY THIS PROCEDURE.

This Revenue Procedure does not apply to Farmers' Cooperatives exempt from Federal income tax under section 521 of the Internal Revenue Code of 1954, or organizations having unrelated business income as defined in section 512(a) of the Code. Such organizations shall file applications on Form 1128 with the Commissioner in accordance with section 1.442-1(b)(1) of the regulations.

SEC. 5. RECORDS.

The books of the organization must be closed as of the last day of the new taxable year. Returns for subsequent taxable years must be made on the basis of a full 12 months ending on the last day of the new taxable year.

SEC. 6. EFFECTIVE DATE.

This Revenue Procedure shall be effective for any change of annual accounting period where the last day of the short period required to effect the change ends on or after April 30, 1966.

SEC. 7. INQUIRIES.

Inquiries in regard to this Revenue Procedure should refer to its number and be addressed to the Commissioner of Internal Revenue, Attention: T:I:C:1:AM&P, Washington, D.C., 20224.