§ 985. Functional currency
(a)
In general
Unless otherwise provided in regulations, all determinations under this subtitle shall be made in the taxpayer’s functional currency.
(b)
Functional currency
(2)
Functional currency where activities primarily conducted in dollars
The functional currency of any qualified business unit shall be the dollar if activities of such unit are primarily conducted in dollars.
(3)
Election
To the extent provided in regulations, the taxpayer may elect to use the dollar as the functional currency for any qualified business unit if—
Any such election shall apply to the taxable year for which made and all subsequent taxable years unless revoked with the consent of the Secretary.
(4)
Change in functional currency treated as a change in method of accounting
Any change in the functional currency shall be treated as a change in the taxpayer’s method of accounting for purposes of section
481 under procedures to be established by the Secretary.