Rev. Rul. 66-206

An individual taxpayer operating a retail store as a sole proprietorship obtained the prior consent of the Commissioner of Internal Revenue to change his accounting method. Included in the adjustment required under section 481(a) of the Internal Revenue Code of 1954 were items which the taxpayer was to take into account ratably over a 10-year period. Subsequently, and during the 10-year period, he sold a share in his business and he continued to be actively engaged in the management of the business which was then operated, for Federal income tax purposes, as a partnership.

Held , the taxpayer has not ceased to engage in a trade or business, and he is to continue to take into account in computing his own taxable income the adjustments required under section 481(a) of the Code.