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Bulletin No. 1996–18

April 29, 1996

HIGHLIGHTS

OF THIS ISSUE

These synopses are intended only as aids to the reader in

identifying the subject matter covered. They may not be

relied upon as authoritative interpretations.

SPECIAL ANNOUNCEMENT

Announcement 96–23, page 7.

This announcement proposes procedures for a foreign

person to apply to the IRS to be a qualified

intermediary under section 1.1441–1(e)(5) of the

proposed regulations under section 1441.

Announcement 96–33, page 12.

A public hearing will be held on June 5, 1996, on

proposed regulations which clarify certain requirements

for tax-exempt section 501(c)(5) organizations.

Announcement 96–34, page 13.

T.D. 8653, 1996–12 I.R.B. 4, relating to the character

and timing of gain or loss from hedging transactions

entered into by member of a consolidated group, is

corrected.

GIFT TAX

PS–4–96, page 5.

Proposed regulations under section 2702 of the Code

permit the reformation of a personal residence trust or

a qualified personal residence trust to comply with the

applicable requirements for such trusts. A public

hearing will be held on July 24, 1996.

Announcement 96–35, page 13.

T.D. 8638, 1996–5 I.R.B. 5, relating to certain

transfers of stock or securities of domestic corporations

by U.S. persons to foreign corporations, is corrected.

ADMINISTRATIVE

Announcement 96–36, page 13.

T.D. 8648, 1996–10 I.R.B. 23, relating to a controlling corporation’s basis adjustment in its controlled

corporation’s stock following a triangular reorganization,

is corrected.

Notice 96–26, page 4.

LR–115–86, 1988–2 C.B. 834, relating to tax on the

sale or removal of gasoline, and LR–77–88, 1988–2

C.B. 834, relating to gasoline excise tax bond

requirements, are withdrawn.

Announcement 96–37, page 14.

T.D. 8597, 1995–32 I.R.B. 6, relating to intercompany

transaction system of the consolidated return regulations, is corrected.

Notice 96–27, page 4.

T.D. 8595, 1995–1 C.B. 205, relating to payments of

Internal Revenue taxes and stamps by check or money

order, is corrected.

Finding Lists begin on page 16.

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Mission of the Service

The purpose of the Internal Revenue Service is to

collect the proper amount of tax revenue at the least

cost; serve the public by continually improving the

quality of our products and services; and perform in a

manner warranting the highest degree of public

confidence in our integrity, efficiency and fairness.

Statement of Principles

of Internal Revenue

Tax Administration

The function of the Internal Revenue Service is to

administer the Internal Revenue Code. Tax policy

for raising revenue is determined by Congress.

With this in mind, it is the duty of the Service to

carry out that policy by correctly applying the laws

enacted by Congress; to determine the reasonable

meaning of various Code provisions in light of the

Congressional purpose in enacting them; and to

perform this work in a fair and impartial manner,

with neither a government nor a taxpayer point of

view.

At the heart of administration is interpretation of the

Code. It is the responsibility of each person in the

Service, charged with the duty of interpreting the

law, to try to find the true meaning of the statutory

provision and not to adopt a strained construction in

the belief that he or she is ‘‘protecting the revenue.’’

The revenue is properly protected only when we ascertain and apply the true meaning of the statute.

The Service also has the responsibility of applying

and administering the law in a reasonable,

practical manner. Issues should only be raised by

examining officers when they have merit, never

arbitrarily or for trading purposes. At the same

time, the examining officer should never hesitate

to raise a meritorious issue. It is also important

that care be exercised not to raise an issue or to

ask a court to adopt a position inconsistent with

an established Service position.

Administration should be both reasonable and

vigorous. It should be conducted with as little

delay as possible and with great courtesy and

considerateness. It should never try to overreach,

and should be reasonable within the bounds of law

and sound administration. It should, however, be

vigorous in requiring compliance with law and it

should be relentless in its attack on unreal tax

devices and fraud.

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Introduction

The Internal Revenue Bulletin is the authoritative

instrument of the Commissioner of Internal Revenue for

announcing official rulings and procedures of the

Internal Revenue Service and for publishing Treasury

Decisions, Executive Orders, Tax Conventions, legislation, court decisions, and other items of general

interest. It is published weekly and may be obtained

from the Superintendent of Documents on a subscription basis. Bulletin contents of a permanent nature are

consolidated semiannually into Cumulative Bulletins,

which are sold on a single-copy basis.

It is the policy of the Service to publish in the Bulletin

all substantive rulings necessary to promote a uniform

application of the tax laws, including all rulings that

supersede, revoke, modify, or amend any of those

previously published in the Bulletin. All published

rulings apply retroactively unless otherwise indicated.

Procedures relating solely to matters of internal

management are not published; however, statements of

internal practices and procedures that affect the rights

and duties of taxpayers are published.

Revenue rulings represent the conclusions of the

Service on the application of the law to the pivotal facts

stated in the revenue ruling. In those based on

positions taken in rulings to taxpayers or technical

advice to Service field offices, identifying details and

information of a confidential nature are deleted to

prevent unwarranted invasions of privacy and to comply

with statutory requirements.

Rulings and procedures reported in the Bulletin do not

have the force and effect of Treasury Department

Regulations, but they may be used as precedents.

Unpublished rulings will not be relied on, used, or cited

as precedents by Service personnel in the disposition of

other cases. In applying published rulings and procedures, the effect of subsequent legislation, regulations,

court decisions, rulings, and procedures must be

considered, and Service personnel and others concerned are cautioned against reaching the same

conclusions in other cases unless the facts and

circumstances are substantially the same.

The Bulletin is divided into four parts as follows:

Part I.—1986 Code.

This part includes rulings and decisions based on

provisions of the Internal Revenue Code of 1986.

Part II.—Treaties and Tax Legislation.

This part is divided into two subparts as follows:

Subpart A, Tax Conventions, and Subpart B, Legislation

and Related Committee Reports.

Part III.—Administrative, Procedural, and Miscellaneous.

To the extent practicable, pertinent cross references to

these subjects are contained in the other Parts and

Subparts. Also included in this part are Bank Secrecy

Act Administrative Rulings. Bank Secrecy Act Administrative Rulings are issued by the Department of the

Treasury’s Office of the Assistant Secretary

(Enforcement).

Part IV.—Items of General Interest.

With the exception of the Notice of Proposed Rulemaking and the disbarment and suspension list included in

this part, none of these announcements are consolidated in the Cumulative Bulletins.

The first Bulletin for each month includes an index for

the matters published during the preceding month.

These monthly indexes are cumulated on a quarterly

and semiannual basis, and are published in the first

Bulletin of the succeeding quarterly and semi-annual

period, respectively.

The Bulletin Index-Digest System, a research and

reference service supplementing the Bulletin, may be

obtained from the Superintendent of Documents on a

subscription basis. It consists of four Services: Service

No. 1, Income Tax; Service No. 2, Estate and Gift

Taxes; Service No. 3, Employment Taxes; Service No.

4, Excise Taxes. Each Service consists of a basic

volume and a cumulative supplement that provides (1)

finding lists of items published in the Bulletin, (2)

digests of revenue rulings, revenue procedures, and

other published items, and (3) indexes of Public Laws,

Treasury Decisions, and Tax Conventions.

The contents of this publication are not copyrighted and may be reprinted freely. A citation of the Internal Revenue Bulletin as the source would be appropriate.

For sale by the Superintendent of Documents U.S. Government Printing Office, Washington, D.C. 20402.

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Part III. Administrative, Procedural, and Miscellaneous

Gasoline

Notice 96–26

AGENCY: Internal Revenue Service

(IRS), Treasury.

ACTION: Withdrawal of notices of

proposed rulemaking.

SUMMARY: This document withdraws

the notices of proposed rulemaking

relating to gasoline that were published

in the Federal Register on November

18, 1987, and September 27, 1988,

because of amendments to sections

4081 and 4101 of the Internal Revenue

Code made by the Omnibus Budget

Reconciliation Act of 1990 and the

Omnibus Budget Reconciliation Act of

1993.

FOR FURTHER INFORMATION

CONTACT: Frank Boland, (202)

622-3130 (not a toll-free number).

SUPPLEMENTARY INFORMATION:

260]) relating to gasoline tax under

section 4081 as amended were published in the Federal Register (57 FR

32424). On November 30, 1993, temporary regulations (TD 8496 [1993–2

C.B. 281]) relating to registration requirements under section 4101 as

amended were published in the Federal

earlier proposed rules are withdrawn.

Withdrawal of Notices of Proposed

Rulemaking

Accordingly, under the authority of

26 U.S.C. 7805, the notices of proposed rulemaking that were published

in the Federal Register on November

18, 1987 (52 FR 44141) and September

27, 1988 (53 FR 37590) are withdrawn.

Margaret Milner Richardson,

Commissioner of Internal Revenue.

EFFECTIVE DATE: April 28, 1995.

FOR FURTHER INFORMATION

CONTACT: Robert A. Walker, (202)

622-3640 (not a toll-free number).

SUPPLEMENTARY INFORMATION:

Background

The final regulations that are the

subject of this correction are under

section 6311 of the Internal Revenue

Code.

Need for Correction

(Filed by the Office of the Federal Register on

March 13, 1996, 8:45 a.m., and published in

the issue of the Federal Register for March 14,

1996, 61 F.R. 10492)

As published, TD 8595 contains an

error that is in need of clarification.

Payment of Internal Revenue Tax by

Check or Money Order and Liability

of Financial Institutions for Unpaid

Taxes; Correction

Accordingly, the publication of final

regulations which is the subject of FR

Doc. 95–10410, is corrected as follows:

On page 20899, column 3, in amendatory instruction ‘‘Par. 2.,’’ line 8, the

amendatory language ‘‘5. Adding paragraphs (d) and (e).’’ is corrected to

read ‘‘5. Adding paragraph (d).’’

Background

On November 18, 1987, the IRS

issued proposed regulations (LR–115–

86 [1988–2 C.B. 834]) relating to tax

on the sale or removal of gasoline (52

FR 44141) which were later proposed

to be amended on September 27, 1988

(53 FR 37590). On September 27,

1988, the IRS issued proposed regulations (LR–77–88 [1988–2 C.B. 834])

relating to gasoline excise tax bond

requirements (53 FR 37590). The Omnibus Budget Reconciliation Act of

1990 and the Omnibus Budget Reconciliation Act of 1993 amended sections

4081 and 4101. On July 22, 1992, final

regulations (TD 8421 [1992–2 C.B.

published in the Federal Register for

Friday, April 28, 1995 (60 FR 20899).

The final regulations relate to payments

with respect to internal revenue taxes

and internal revenue stamps by check

or money order.

Notice 96–27

AGENCY: Internal Revenue Service,

Treasury.

Correction of Publication

final

Cynthia E. Grigsby,

Chief, Regulations Unit,

Assistant Chief Counsel (Corporate).

SUMMARY: This document contains a

correction to final regulations [TD

8595 [1995–1 C.B. 205]] which were

(Filed by the Office of the Federal Register on

March 27, 1996, 8:45 a.m., and published in

the issue of the Federal Register for March 28,

1996, 61 F.R. 13762)

ACTION:

regulations.

Correction

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Part IV. Items of General Interest

Notice of Proposed Rulemaking and

Notice of Public Hearing

SUPPLEMENTARY INFORMATION:

Paperwork Reduction Act

Sale of Residence from Qualified

Personal Residence Trust

PS–4–96

AGENCY: Internal Revenue Service

(IRS), Treasury.

ACTION: Notice of proposed rulemaking and notice of public hearing.

SUMMARY: This document contains a

proposed regulation permitting the reformation of a personal residence trust

or a qualified personal residence trust

in order to comply with the applicable

requirements for such trusts. The proposed regulation also clarifies that the

governing instruments of such trusts

must prohibit the sale of a residence

held in the trust to the grantor of the

trust, the grantor’s spouse, or an entity

controlled by the grantor or the grantor’s spouse. The proposed regulation

will affect trusts created after the proposed effective date.

DATES: Written comments and outlines of oral comments to be presented

at the public hearing scheduled for July

24, 1996, must be received by July 15,

1996.

ADDRESSES: Send submissions to:

CC:DOM:CORP:R (PS–4–96), Room

5228, Internal Revenue Service, P.O.

Box 7604, Ben Franklin Station, Washington, DC 20044. In the alternative,

submissions may be hand delivered

between the hours of 8 a.m. and 5 p.m.

to: CC:DOM:CORP:R (PS–4–96), Courier’s Desk Internal Revenue Service,

1111 Constitution Avenue NW., Washington, DC 20224. The public hearing

will be held in the IRS auditorium,

Seventh Floor, 7400 Corridor, Internal

Revenue Building, 1111 Constitution

Avenue NW., Washington DC.

FOR FURTHER INFORMATION

CONTACT: Concerning the proposed

regulations, Dale Carlton, (202)

622-3090; concerning submissions and

the hearing, Evangelista Lee, (202)

622-7180 (not toll-free numbers).

The collection of information contained in this notice of proposed rulemaking has been submitted to the

Office of Management and Budget for

review in accordance with the Paperwork Reduction Act of 1995 (44

U.S.C. 3507).

Comments on the collection of information should be sent to the Office of

Management and Budget, Attn: Desk

Officer for the Department of the

Treasury, Office of Information and

Regulatory Affairs, Washington, DC

20503, with copies to the Internal

Revenue Service, Attn: IRS Reports

Clearance Officer, T:FP, Washington,

DC 20224. Comments on the collection

of information should be received by

June 15, 1996.

An agency may not conduct or

sponsor, and a person is not required to

respond to, a collection of information

unless the collection of information

displays a valid control number.

The collection of information is in

§25.2702–5. This information is required by the IRS to ensure compliance

with the regulatory requirements. The

likely respondents are individuals or

households. Responses to the collection

of information are required to obtain

favorable gift tax treatment.

Books or records relating to this

collection of information must be retained as long as their contents may

become material in the administration

of any internal revenue law. Generally,

tax returns and tax return information

are confidential, as required by 26

U.S.C. 6103.

Estimated total annual reporting/

recordkeeping burden: 625 hours.

The estimated annual burden per respondent varies from 3 hours to 3.25

hours depending on individual circumstances with an estimated average of

3.1 hours.

Estimated number of respondents: 200

Estimated annual frequency of responses: 2

Background

This document proposes to amend

the Gift Tax Regulations (26 CFR

part 25) under section 2702 relating to

‘‘personal residence trusts’’ and

‘‘qualified personal residence trusts.’’

Section 2702(a) provides special

valuation rules for determining the

value of a gift when a transfer is made

in trust to or for the benefit of a

member of the donor’s family and the

donor retains an interest in the trust.

Under section 2702(a)(2)(A), the value

of any retained interest that is not a

‘‘qualified interest’’ is treated as zero.

Therefore, the value of the gift is equal

to the full value of the property at the

time of the transfer. In contrast, the

value of a retained interest that is a

qualified interest is determined under

the valuation tables prescribed pursuant

to section 7520. Section 2702(b) provides that a qualified interest means an

annuity interest, a unitrust interest, or a

remainder interest after either an annuity or unitrust interest.

Congress recognized that many people desire to maintain the family

ownership of their home and pass

ownership on to future generations,

while retaining its use for a period of

time. The annuity and unitrust requirements are not, however, conducive to

the transfer of a residence. Accordingly, section 2702(a)(3)(A)(ii) provides an exception to the annuity and

unitrust requirements. Under this limited exception, the grantor’s retained

interest need not be in one of these

forms, but rather can take the form of a

right to the use and occupancy of the

residence. Because this is an exception

to the general rule of section 2702, a

grantor may take into account not only

the value of the retained interest, but

also any contingent reversionary interest, in determining the amount of the

gift to the remainderman.

The requirements of section 2702(a)(3)(A)(ii) are satisfied by a personal

residence trust and a qualified personal

residence trust as set forth in the

regulations. The governing instruments

of these trusts must prohibit the trust

from holding, for the original duration

of the term interest, assets other than

one residence to be used or held for the

use as a personal residence of the term

holder. In addition, a qualified personal

residence trust can hold limited

amounts of cash for certain specified

purposes such as the payment of

operating expenses and expenses for

the improvement or replacement of the

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residence, and the trustee is permitted

to sell the residence during the original

duration of the term interest, if certain

requirements are satisfied.

If the trust does not qualify as a

personal residence trust or a qualified

personal residence trust, the grantor’s

retained interest is valued at zero under

section 2702. This is the result even

where the lack of compliance with the

requirements in the regulations is the

result of error or poor advice. As most

errors are discovered at the time the

gift tax return is prepared, the proposed

regulation permits reformation of the

trust to be commenced up to 90 days

after the gift tax return is due. A

properly reformed trust will be treated

as satisfying the regulatory requirements.

Questions have arisen as to whether

it is permissible for the grantor to place

a personal residence in trust, obtain all

the tax benefits of a qualified personal

residence trust and then purchase the

residence from the trust. For example,

in a transaction described by one

commentator as the ‘‘bait and switch,’’

the grantor places the residence in trust

with the intention of purchasing the

residence from the trust just prior to

the expiration of the grantor’s retained

term so that cash or other assets pass to

the remaindermen in place of the

residence.

The Treasury Department and the

IRS have previously stated the view

that Congress intended the personal

residence trust exception to enable

transferors to pass the family home to

younger members of the family. Preamble to TD 8395, 1992–1 C.B. 316, at

319. Using the ‘‘bait and switch’’

technique, however, the personal residence trust exception could be used

to facilitate the transfer of the grantor’s

other assets to future generations. The

residence would merely serve as a

temporary ‘‘stand-in’’ to avoid the

annuity and unitrust requirements of

section 2702. The proposed regulations

clarify that the sale of the residence to

the grantor by the trustee of the

personal residence trust or qualified

personal residence trust is not consistent with Congress’ intent in enacting

section 2702.

Explanation of Provisions

The proposed regulation provides

that a trust that does not comply with

one or more of the regulatory re-

1996– 27 I.R.B.

quirements for qualification as a personal residence trust or a qualified

personal residence trust, will be treated

as satisfying those requirements if the

trust is reformed by judicial reformation (or nonjudicial reformation if

effective under state law) to comply

with the requirements. The reformation

must be commenced within 90 days of

the due date (including extensions) for

filing the gift tax return reporting the

transfer of the residence, and must be

completed within a reasonable time

after commencement. If the reformation

is not completed by the due date (including extensions) for filing the gift

tax return, the grantor or grantor’s

spouse must attach a statement to the

gift tax return stating that the reformation has been commenced, or will be

commenced within the 90-day period.

The proposed regulation also requires that, in order to qualify as a

personal residence trust or a qualified

personal residence trust, the trust’s

governing instrument must prohibit the

trust from selling or transferring the

residence, directly or indirectly, to the

grantor, the grantor’s spouse, or an

entity controlled by the grantor or the

grantor’s spouse. A sale or transfer to

another grantor trust of the grantor or

the grantor’s spouse is considered a

sale or transfer to the grantor or the

grantor’s spouse. For these purposes,

the term grantor trust is a trust

treated as owned by the grantor or the

grantor’s spouse within the meaning of

sections 671–677. The term control is

defined in §25.2701–2(b)(5)(ii) and

(iii).

Proposed Effective Date

The amendments to §§25.2702–5(b)

and (c) are proposed to be effective for

trusts created after May 16, 1996.

Thus, a trust created after this date will

not satisfy the requirements of a

personal residence trust or a qualified

personal residence trust if the trust

document does not comply with the

regulations, as amended. Such a trust

would be eligible for reformation under

the proposed regulation.

Notwithstanding the proposed effective date, if the IRS examines a preeffective date trust and finds it inconsistent with the purposes of section

2702 or the regulations thereunder, the

IRS, by using established legal doctrines such as the substance over form

doctrine, may treat the trust as not

qualifying under section 2702. Thus,

for example, if the grantor actually

purchases the residence from the trust

pursuant to a right or option to

purchase that is stated in the trust

instrument or a collateral document, the

IRS may not treat the trust as a

qualified personal residence trust.

Special Analyses

It has been determined that this

notice of proposed rulemaking is not a

significant regulatory action as defined

in EO 12866. Therefore, a regulatory

assessment is not required. It has also

been determined that section 553(b) of

the Administrative Procedures Act (5

U.S.C. chapter 5) and the Regulatory

Flexibility Act (5 U.S.C. chapter 6) do

not apply to these regulations and,

therefore, a Regulatory Flexibility

Analysis is not required. Pursuant to

section 7805(f) of the Internal Revenue

Code, this notice of proposed rulemaking will be submitted to the Chief

Counsel for Advocacy of the Small

Business Administration for comment

on its impact on small business.

Comments and Public Hearing

Before this proposed regulation is

adopted as a final regulation, consideration will be given to any written

comments (a signed original and eight

(8) copies) that are submitted timely to

the IRS. All comments will be available for public inspection and copying.

A public hearing has been scheduled

for July 24, 1996, at 10 a.m. in the

auditorium, Internal Revenue Building,

1111 Constitution Avenue NW., Washington, DC. Because of access restrictions, visitors will not be admitted

beyond the building lobby more than

15 minutes before the hearing starts.

The rules of 26 CFR 601.601(a)(3)

apply to the hearing.

Persons that wish to present oral

comments at the hearing must submit

written comments by July 15, 1996 and

an outline of the topics to be discussed

and the time to be devoted to each

topic. A period of 10 minutes will be

allotted each person for making

comments.

An agenda showing the scheduling

of speakers will be prepared after the

deadline for receiving outlines has

passed. Copies of the agenda will be

available free of charge at the hearing.

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Drafting Information

The principal author of this regulation is Dale Carlton, Office of the

Assistant Chief Counsel (Passthroughs

and Special Industries). However, personnel from other offices of the IRS

and Treasury Department participated

in their development.

Proposed Amendment to the

Regulations

Accordingly, 26 CFR part 25 is

proposed to be amended as follows:

PART 25—GIFT TAX; GIFTS

MADE AFTER DECEMBER 31,

1954

Paragraph 1. The authority citation

for part 25 continues to read in part as

follows:

Authority: 26 U.S.C. 7805 * * *

Par. 2. Section 25.2702–5 is

amended as follows:

1. Paragraph (a) is redesignated as

paragraph (a)(1) and paragraph (a)(2) is

added.

2. In paragraph (b)(1), four new

sentences are added after the third

sentence.

3. Paragraph (c)(5)(ii)(C) is revised.

4. Paragraph (c)(9) is added.

The additions and revisions read as

follows:

§25.2702–5. Personal residence trusts.

(a)(1) In general. * * *

(2) Modification of trust. A trust that

does not comply with one or more of

the regulatory requirements under paragraph (b) or (c) of this section will,

nonetheless, be treated as satisfying

these requirements if the trust is

modified, by judicial reformation (or

nonjudicial reformation if effective under state law), to comply with the

requirements. The reformation must be

commenced within 90 days after the

due date (including extensions) for the

filing of the gift tax return reporting

the transfer of the residence under

section 6075 and must be completed

within a reasonable time after commencement. If the reformation is not

completed by the due date (including

extensions) for filing the gift tax return,

the grantor or grantor’s spouse must

attach a statement to the gift tax return

stating that the reformation has been

commenced or will be commenced

within the 90-day period.

(b) * * * (1) * * * In addition, the

trust does not meet the requirements of

this section unless the governing instrument prohibits the trust from selling or

transferring the residence, directly or

indirectly, to the grantor, the grantor’s

spouse, or an entity controlled by the

grantor or the grantor’s spouse, at any

time after the original term interest

during which the trust is a grantor

trust. For purposes of the preceding

sentence, a sale or transfer to another

grantor trust of the grantor or the

grantor’s spouse is considered a sale or

transfer to the grantor or the grantor’s

spouse. For purposes of this section, a

grantor trust is a trust treated as owned

by the grantor or the grantor’s spouse

within the meaning of sections 671–

677. The term control is defined in

§25.2701–2(b)(5)(ii) and (iii). * * *

(5) * * *

(ii) * * *

instrument may permit the sale of the

residence (except as set forth in paragraph (c)(9) of this section) and may

permit the trust to hold proceeds from

the sale of the residence, in a separate

account.

(9) Sale of residence to grantor,

grantor’s spouse, or entity controlled

by grantor or grantor’s spouse. The

governing instrument must prohibit the

trust from selling or transferring the

residence, directly or indirectly, to the

grantor, the grantor’s spouse, or an

entity controlled by the grantor or the

grantor’s spouse during the original

term interest of the trust, or at any time

after the original term interest that the

trust is a grantor trust. For purposes of

the preceding sentence, a sale or transfer to another grantor trust of the

grantor or the grantor’s spouse is

considered a sale or transfer to the

grantor or the grantor’s spouse. For

purposes of this section, a grantor trust

is a trust treated as owned by the

grantor or the grantor’s spouse within

the meaning of sections 671–677. The

term control is defined in §25.2701–

2(b)(5)(ii) and (iii).

Par. 3. Section 25.2702–7 is

amended as follows:

1. The first sentence of this section

is revised; and

2. A new sentence is added at the

end of the section, to read as follows:

§25.2702–7 Effective dates.

Except as provided in this section,

§§25.2702–1 through 25.2702–6 are

effective as of January 28, 1992. * * *

The fourth through seventh sentences

of §25.2702–5(b)(1) and §25.2702–

5(c)(9) are effective with respect to

trusts created after May 16, 1996.

Margaret Milner Richardson,

Commissioner of Internal Revenue.

(Filed by the Office of the Federal Register on

April 15, 1996, 8:45 a.m., and published in the

issue of the Federal Register for April 16,

1996, 61 F.R. 16623)

Announcement 96–23

The following text of a revenue

procedure is proposed in conjunction

with the publication of proposed regulations under chapter 3 of the Code

and related Code provisions, relating to

the withholding and reporting of certain

income paid to foreign persons. This

announcement proposes procedures for

a foreign person to apply to the

Internal Revenue Service for an agreement in order for that foreign person to

be a qualified intermediary under

§ 1.1441–1(e)(5) of the proposed regulations under section 1441. Comments

regarding this announcement should be

submitted in the same manner and

within the same time period as are

prescribed for comments submitted under the proposed regulations under

chapter 3 of the Code.

Rev. Proc. #

SECTION 1. PURPOSE

This revenue procedure provides

guidance to persons that consider entering into a withholding agreement with

the Internal Revenue Service (‘‘Service’’) in order to be treated as a

Qualified Intermediary (‘‘QI’’) for pur-

1996– 27 I.R.B.

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poses of section 1.1441–1 (e)(5) of the

Income Tax Regulations. The withholding agreements described in this revenue procedure are relevant to payments

of interest, dividends, and gross proceeds on portfolio investments held

through one or more intermediaries.

This revenue procedure describes the

application procedures for a withholding agreement and the terms that the

Service will ordinarily require to be

incorporated into the agreement.

SEC. 2. BACKGROUND

.01 Withholding and reporting on

payments to foreign persons. Payors of

certain types of income, which include

dividends, interest, and gross proceeds

described in sections 6042, 6049, and

6045, respectively, are generally required to determine whether the payee

or beneficial owner is a U.S. or a

foreign person for several purposes

under the Internal Revenue Code (the

‘‘Code’’). Under sections 1441(a) and

1442(a) of the Code, payments of U.S.

source interest and dividends (but not

gross proceeds from portfolio investments) are subject to a 30 percent tax

withheld at source by the withholding

agent if the income is paid to a nonresident alien or a foreign corporation.

A foreign beneficial owner may benefit

from an exemption or reduced rate

under the Code, the regulations, or an

income tax treaty. Under section 3406

of the Code, a payor of dividends,

interest, and gross proceeds must obtain a Form W–9 from the payee or

backup withhold at a 31 percent rate

unless an exception applies or the

payee furnishes a certificate of foreign

status on Form W–8.

.02 Proof of payee’s or beneficial

owner’s status. The regulations under

section 1441, 6042, 6049, and 6045

prescribe the manner in which a

beneficial owner or payee may, with

respect to these types of payments,

certify to a withholding agent or payor

that it is a foreign person and, if

applicable, that a reduced rate of

withholding at source should apply. For

this purpose, a withholding agent may

generally rely on a certificate of

foreign status (Form W–8) or documentary evidence (see procedures described

in §1.1441–1(e)(2)(ii) and §1.6049–5(c)(1) and (2)). Alternative certification

procedures may be used in the case of

payments made outside the United

States with respect to an offshore

account.

1996– 27 I.R.B.

03. Certification through nominees

or agents—intermediary withholding

certificate. A QI may provide an

intermediary withholding certificate on

behalf of its account holders or partners, including intermediaries or other

QI’s. See §1.1441–1(e)(5).

SEC. 3. APPLICATION FOR

WITHHOLDING AGREEMENT

01. Eligible person and eligible financial institution. An eligible person

is a person described in §1.1441–1(e)(5)(ii) that may apply for a withholding

agreement under this revenue procedure. An eligible financial institution

is an eligible person described in

§1.1441–1(e)(5)(ii)(A) (a clearing organization defined in section 1.163–5(c)(2)(i)(D)(8) or a financial institution

defined in §1.165–12(c)(1)(iv)).

02. Pre-application conference. An

eligible person interested in a withholding agreement under this revenue

procedure may request one or more

pre-application conferences with the

Assistant Commissioner (International),

Foreign Payments Division, to explore

informally the benefits and burdens

associated with such an agreement. The

conference provides an opportunity to

address such matters as the scope of

the agreement, available alternatives,

special issues regarding the institution’s

ability to comply with the terms of the

agreement, the legal status of the

agreement under local law, and the

nature of documentation, recordkeeping, reporting, verification, withholding and remittances of tax that may

be required under the agreement.

03. Where to Apply. An eligible

person may apply for a withholding

agreement by submitting a written

request to the Assistant Commissioner

(International), Foreign Payments Division CP:IN:I:WT, 950 L’Enfant Plaza,

Washington D.C. 20024.

04. Content of Application—Eligible

Financial Institution. The application

shall indicate that the applicant is an

eligible financial institution and that it

requests a withholding agreement with

the Service pursuant to this revenue

procedure. In the case of an eligible

financial institution, the application

shall include the information described

in this section 3.04(i) through (viii).

Upon review of the application, the

Service may request additional information and documentation.

(i) The applicant’s name, address,

and employer identification number. If

the applicant does not have an employer identification number, a completed Form SS–4 must be included to

obtain such number.

(ii) A description of the applicant

including the country under whose laws

the applicant is created or organized

and status of the applicant (corporation,

partnership, trust, pool, etc.) under such

country’s laws.

(iii) A list of the applicant’s officers

and directors, and a list of the employees who are responsible parties for

performance under the agreement.

(iv) An explanation of the branches,

if any, intended to be covered by the

agreement and a description of their

location.

(v) An explanation of the applicant’s

‘‘know-your-customer’’ practices and

procedures for opening accounts, identifying customers, and communication

with customers, and the extent to which

they are mandated and verified under

local law and regulations applicable at

each location intended to be covered by

the agreement, and the penalties or

sanctions that may apply under local

law in the event of a failure to comply

with such procedures. Supporting documentation must be included.

(vi) An explanation of the account

agreements and other account documents used by the applicant in its

account relationships with its customers

(or partners) at each location intended

to be covered by the agreement.

(vii) Information regarding the number of account holders (or partners)

likely to be covered by an intermediary

certificate and the aggregate value of

estimated U.S. investments associated

with the account holders (or partners).

(viii) Information regarding governmental or other supervision to which

the applicant is subject at each location

intended to be covered by the

agreement.

.05 Content of Application—Eligible

Persons Other than Financial Institutions. The application shall indicate

that the applicant is an eligible person,

other than an eligible financial institution, and that it requests a withholding

agreement with the Service pursuant to

this revenue procedure. In the case of

an applicant other than an eligible

financial institution, the application

shall include the information described

in this section 3.05 (i) through (viii).

Upon review of the application, the

Service may request additional information and documentation.

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(i) The applicant’s name, address,

and employer identification number. If

the applicant does not have an employer identification number, a completed Form SS–4 must be included to

obtain such number.

(ii) The reason that the applicant

wishes to conclude a withholding

agreement.

(iii) A description of the applicant

including the country under whose laws

the applicant is created or organized

and status of the applicant (corporation,

partnership, trust, pool, etc.) under such

country’s laws.

(iv) A list of the applicant’s officers

and directors, and a list of the employees who are responsible parties for

performance under the agreement.

(v) An explanation of the branches,

if any, intended to be covered by the

agreement and a description of their

location.

(vi) Information regarding the number of account holders (or partners)

likely to be covered by an intermediary

certificate and the aggregate value of

estimated U.S. investments associated

with the account holders (or partners).

(vii) An explanation of the applicant’s ‘‘know-your-customer’’ practices

and procedures, if any, and the extent

to which they are mandated and verified under local law and regulations

applicable at each location intended to

be covered by the agreement, and the

penalties or sanctions that may apply

under local law in the event of a failure

to comply with such procedures. Supporting documentation must be

included.

(viii) Information regarding governmental or other supervision to which

the applicant is subject at each location

intended to be covered by the

agreement.

SEC. 4. WITHHOLDING

AGREEMENT

01. In general. The withholding

agreement described under §1.1441–

1(e)(5)(iii) is an agreement between the

Service and an eligible person pursuant

to this revenue procedure, by which the

Service agrees to consider the entity as

a QI in consideration for the entity’s

agreement to undertake specified responsibilities. These responsibilities are

assumed under the authority of chapter

3, chapter 61, and section 3406 of the

Code. The purpose of a withholding

agreement is to specify the extent to

which, and the manner in which, the

responsibilities imposed under these

statutory provisions (and the regulations under these provisions) shall

apply to a QI. The agreement will

generally include procedures designed

to document the identity of beneficial

owners, maintain records, and report

information to the Service. Withholding

agreements will also address procedures to insure compliance with the

terms of the agreement. The terms of a

withholding agreement may vary from

case to case depending upon such

factors as local laws and practices

dealing with bank secrecy, know-yourcustomer procedures, supervisory controls, tax reporting requirements, information exchange under an income tax

treaty, the financial stature of the

applicant, and the types of internal

controls and record keeping procedures

which the entity has in effect.

02. Procedures regarding intermediary withholding certificate.

(a) In general. The withholding

agreement will specify that a QI may

furnish an intermediary certificate with

respect to interest, dividends and broker proceeds for which a Form W-8 or

Form W–9 would otherwise be required

to be furnished to the U.S. withholding

agent or payor under section 1441,

1442, 3406, 6042, 6045, or 6049.

(b) Tiered intermediary certificates.

Under the agreement, a QI may agree

to accept an intermediary certificate

from another QI and base its own

certification on the intermediary certificate received from another QI. For

example, where a U.S. withholding

agent makes a payment to QI1, that, in

turn, makes a payment to QI2, the

agent may rely upon the intermediary

certificate furnished by QI1; QI1 may

rely on the intermediary certificate that

QI2 furnishes to QI1. QI2’s certificate

is not required to be furnished to the

withholding agent.

of the Code and a payor for purposes

of section 3406 and chapter 61 of the

Code. Therefore, in order to clarify

whether the U.S. withholding agent or

the QI must actually withhold any

amount of tax due, the withholding

agreement must provide whether the QI

will undertake primary responsibility

with respect to the withholding of tax

on payments to beneficial owners or

U.S. payees. The QI may agree to

assume primary withholding responsibility only in part. For example, the

QI may be willing to assume information reporting and backup withholding

responsibilities for its U.S. customers

and thus would assume primary withholding responsibility, but not agree to

assume primary withholding responsibility on payments to its foreign

customers.

(i) Applicable procedures if QI assumes primary withholding responsibility. A QI that assumes primary

withholding responsibility under a

withholding agreement must satisfy the

requirements described in this section

(i) in connection with the relevant

payments. For purposes of determining

its withholding and reporting responsibilities, a QI may rely upon the

presumptions of a payee’s status described in §1.1441–1(f).

(A) Provide to the withholding agent

or other QI an intermediary withholding certificate indicating the extent to

which the QI assumes primary withholding responsibility.

(B) Withhold the amount of tax

required under sections 1441, 1442, or

3406, except to the extent of payments

made to another QI that has provided

an intermediary withholding certificate

indicating that it has assumed primary

withholding responsibility.

under the Code and the regulations

pertaining to payments made by the QI,

except as may be otherwise specified in

the agreement with the Service.

(ii) Applicable procedures if QI does

not assume primary withholding responsibility. A QI that does not assume

primary withholding responsibility under the agreement must satisfy the

requirements described in this section

(ii) in connection with the relevant

payments.

(A) Provide to a withholding agent

or other QI an intermediary certificate

indicating that the QI does not assume

primary withholding responsibility.

(B) Identify the relevant classes of

assets covered by the intermediary

withholding certificate (including the

class of assets covered by another

intermediary certificate for which the

issuing QI agrees to assume primary

withholding responsibility).

(i.e. whether the assets are held by U.S.

or foreign persons) and the applicable

rate of withholding tax.

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(D) Provide to the withholding agent

or other QI W–9s for U.S. owners that

are not exempt recipients and names

and addresses of U.S. owners that are

exempt recipients.

(iii) Definition of class of asset. A

class of assets is any group of assets

that produces the same type of income

(e.g. interest or dividends), that is

subject to withholding at the same rate,

that is held either by foreign persons or

the same U.S. person, and for which

the QI giving the intermediary certificate has not assumed primary withholding responsibility. For example, an

eligible financial institution has foreign

customers residing in two treaty countries (the rate of tax permitted on

dividend income is 15% under both

treaties) and U.S. customers. All

customers earn U.S. source dividend

and portfolio interest. The institution, if

a QI that did not assume primary

withholding responsibility for all of its

payments, would furnish one intermediary certificate identifying the different

classes of assets: assets producing

portfolio interest earned by foreign

customers claiming the portfolio interest exemption at source; assets producing dividend income earned by foreign

customers claiming the 15% reduced

rate at source; assets producing interest

income earned by each U.S. customer;

and assets producing dividends earned

by each U.S customer. Assets may be

identified by account. That is, the QI’s

intermediary certificate may indicate

that all assets held in a particular

account represent assets that produce

portfolio interest for foreign persons.

Any beneficial owner or payee for

whom the QI does not hold all of the

required documentation as specified

under the withholding agreement must

be identified as a separate class and

treated, under the presumptions described in §1.1441–1(f)(2)(i)(A) as a

U.S. payee that is not an exempt

recipient.

(iv) Disclosure of identify of beneficial owner or payee by QI that does

not assume primary withholding responsibility. Generally, an intermediary

certificate provided by a QI that does

not assume primary withholding responsibility does not disclose the identity of the beneficial owners. The

documentation supporting the claim of

foreign status and entitlement to treaty

benefits need not be attached to the

intermediary withholding certificate.

However, if the QI does not assume

1996– 27 I.R.B.

primary withholding responsibility for

payments made to U.S. persons and,

therefore, has not agreed to report U.S.

source payments made to U.S. persons,

the documentation supporting the

claims of U.S. status must be attached

to the intermediary certificate so that

the withholding agent/payor may report

or backup withhold with respect to

such payments.

03. Certification and documentation

requirements.

(a) In general. The withholding

agreement will provide that an account

holder is appropriately accounted for in

an intermediary withholding certificate

only if the QI has obtained the type of

certification or documentation for the

account holder as the agreement will

specify. Generally, for account holders

that are beneficial owners, the QI must

agree to be subject to the same

certification or documentation requirements as apply to withholding agents

under section 1441 and the regulations

thereunder and to payors under sections

6042, 6045, and 6049 and the regulations thereunder. For this purpose, a

withholding agreement will specify the

extent to which a QI may rely upon

Form W–8 that does not state a taxpayer identification number. The QI

may use such substitute form as the

Service may approve under the agreement (including certifications incorporated into a form in use by the QI for

the opening of new accounts). However, the agreement may provide for

other types of acceptable documentation. The ability to use documentation

different from that required under

regulations will depend upon existing

documentation procedures used by the

QI to document the identity, nationality, and residence of beneficial

owners and the nature of supervisory

controls and reporting procedures to

which it is subject under local laws.

Substitute documentation must approximate the evidentiary value of the

documentation required under the

regulations.

(b) Standards of reliability. The reliability of any documentation will be

evaluated on the basis of the type of

information stated on the document, the

source document, if any, used to substantiate the information on the document, the issuance procedures used,

and the ease with which it can be

counterfeited. Copies of documents will

generally be acceptable if the QI

certifies that the documents are correct

copies of the original documents.

for its own account (e.g., is a nominee

or agent for the beneficial owner) and

is not a QI, the QI must obtain

certification or documentation regarding the beneficial owner in the manner

specified in the agreement. It must then

either transmit such certification or

documentation to the next intermediary

in the chain or include the beneficial

owner in its intermediary certificate. In

the latter situation, the QI is responsible for the correctness and completeness of the certification or documentation relied upon in the same manner

and to the same extent as if the

beneficial owner were a direct account

holder with the QI.

04. Certification with respect to

claim of tax treaty benefits. A QI may

also agree to certify the residence of an

account holder for purposes of claiming

benefits under an income tax treaty. If

the account holder does not have a

TIN, the QI may either accept a

certificate of tax residence from the

appropriate tax authority in the country

with which the United States has an

income tax treaty or agree to maintain

appropriate documentary evidence regarding residence of the account holder

in the treaty country.

05. Acceptance agents. Under a

withholding agreement, the QI may

agree to act as an acceptance agent for

purposes of section 6109 of the Code

and the regulations thereunder. [See

Rev. Proc. xx-xx for the duties and

obligations of an acceptance agent.]

(a) Assistance with obtaining a taxpayer identification number. A QI that

acts as an acceptance agent with

respect to obtaining identification numbers from the Service for its account

holders shall agree to provide a TIN

application form to the account holder

(i.e., a Form W–7, Application for IRS

Individual Taxpayer Identification

Number, or a Form SS–4, Application

for Employer Identification Number)

and to assist in the preparation and

submission of the TIN application

forms to the Service. The QI may use

such substitute form as the Service may

approve under the agreement (including

the terms of forms SS–4 and W–7 into

a form in use by the QI for the opening

of new accounts). The forms or substitute form, together with required

documentation, may be forwarded to

the Service by the QI. The QI may act

as agent for the applicant regarding any

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additional correspondence necessary in

connection with the application. The

Service will release the TIN to the QI

on behalf of the applicant and the QI

will acknowledge receipt on behalf of

the applicant.

(b) Certification on behalf of the

applicant. A QI that is an acceptance

agent may, instead of forwarding the

required documentation to the Service,

certify that it has reviewed the required

documentation and that it complies

with the Service requirements. In such

a case, only the TIN application form

(or a substitute form) must be submitted to the Service. Further, in appropriate cases, the QI may execute the TIN

application form on behalf of the

applicant.

treaty country. In the case of an

applicant claiming residence in a country with which the United States has an

income tax treaty, the application and

subsequent issuance of a TIN will

serve as certification of residence in

that country pursuant to §1.1441–6(c)(2)(iii). If the TIN is issued on the

basis of a QI’s certification, the QI will

agree to notify the Service when the

account holder’s address changes to

another country (based on information

obtained by the QI in the ordinary

course of business or as otherwise

specified under the agreement) and

when the account holder terminates its

relationship with the QI.

06. Record-keeping obligations. The

QI will agree that, for purposes of

determining its compliance with the

withholding agreement, it will maintain

a record of the documentation obtained

and reviewed pursuant to the documentation obligations set forth in the

agreement. The documentation with

respect to any account holder shall be

maintained for as long as the account

holder maintains an account relationship with the QI to which the agreement applies and for a period of no less

than 3 years from the date such account

relationship ceases or for such other

reasonable period as the Service will

prescribe in the agreement.

07. Reporting obligations. Generally,

a QI that assumes primary withholding

responsibility for payments relating to a

class of assets will be required to make

returns and provide information to the

Service and beneficial owners or

payees as is required under the Code

and regulations on an annual basis with

respect to payments on such class of

assets. However, in the case of a QI

that is an eligible financial institution,

these requirements may be modified

under the withholding agreement. The

withholding agreement may modify or

waive the obligation to report beneficial owner information to the Service if

access to this information is otherwise

available to the Service under other

procedures. For example, the obligation

to report to the Service may be waived

to the extent the QI otherwise reports

the similar information to its own tax

authorities and such information is

accessible to the Service under the

exchange of information provisions of

an applicable income tax treaty. Similarly, certain reports may be unnecessary where the QI agrees to verification

procedures as described in section 4.08,

below. The withholding agreement may

modify or waive the obligation to

furnish a statement to a beneficial

owner. The beneficial owner must,

however, be able to obtain such a

statement on request. A QI that assumes primary withholding responsibility for payments made to a U.S.

payee shall agree to report on Form

1099 on U.S. source amounts paid to a

U.S. payee.

08. Verification procedures.

(i) In general. The withholding

agreement may specify the records and

account information which the QI

agrees to make available to the Service

for inspection and the procedures for

carrying out such inspection. In all

cases, the Service must be able to

verify that the QI has adequate procedures in effect to identify its account

holders (or partners) and determine

their nationality and country of residence. In addition, the Service may

require procedures enabling it to verify

compliance by the QI with the agreement with respect to specific accounts.

(ii) Special procedures for eligible

financial institutions. (A) Approved

external auditors. In appropriate cases,

the Service may rely on audits of an

eligible financial institution performed

by the institution’s approved external

auditors. If, for example, under an

income tax treaty or local laws, the

Service would be given access to appropriate auditor’s records to verify

compliance, the Service may audit such

records in lieu of auditing the institution’s records. For this purpose, records

may include workpapers, reports prepared by, and the methodology

employed by, the approved external

auditors. In order for such an arrangement to be approved by the Service, an

auditor must be subject to regulatory

supervision under the laws of the

country in which a significant part of

the intermediary activities under the

agreement are expected to occur, its

internal procedures must require it to

verify that the financial institution

complies with the terms of the withholding agreement and to report noncompliance findings under the agreement in the same manner as it is

required to report other findings of

non-compliance with applicable local

laws and regulatory requirements, and

its the relevant records (i.e., workpapers and reports) must be available

to the Service upon request.

(B) Verification of specific account

information for eligible financial institutions. If an eligible financial institution is not subject to audit under the

approved external auditor procedure,

then the withholding agreement shall

contain procedures for auditing information pertaining to specific accounts.

Generally, an eligible financial institution that complies with the filing

requirements on Forms 1042 and 1042S

(or otherwise makes account holder

information available to the Service)

may be exempted from normal audit

procedures or subject to abbreviated

audits. Where a QI has agreed to

certify to the Service in connection

with a TIN application based upon

documentation it has obtained and

reviewed, it must also agree to furnish

the documentation to the Service upon

written request in such manner as the

Service and the QI will mutually agree.

In order to conduct periodic compliance checks, the Service may rely on

sampling techniques to assure reliability of the examination while ensuring the least amount of disruption to

the financial institution. The withholding agreement will specify the manner

in which Service compliance checks

will take place. In appropriate cases,

assistance may be obtained from the

tax authorities of the country where the

QI resides.

09. Guarantee of payment. The QI

must, if required by the Service, obtain

a letter of credit, bond, or other surety

in such amount as the QI and the

Service may agree upon, in order to

secure any withholding liability of the

QI. The amount of the bond or letter of

credit must approximate the risk of

underwithholding. Factors to be consid-

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ered in this regard include the amount

of U.S. investments made through the

QI, the number of beneficial owners

making U.S. investments, the type of

investment and the characteristics of

the beneficial owners, and the degree

of reporting by the QI to the Service.

10. Approval and Execution. A withholding agreement shall be signed by

the authorized representative of the

eligible person and the Service. The

Assistant Commissioner (International)

shall sign on behalf of the Service

upon approval by the Associate Chief

Counsel (International).

11. Expiration, Termination and Default.

(a) Term and events of termination.

Ordinarily, the period of the withholding agreement shall be six years, and

the agreement may be renewed for

further six year periods as specified in

section 12. The withholding agreement

may otherwise terminate earlier, i.e., 30

days after delivery of notice of termination by the QI to the Service. The

Service may also terminate the agreement prior to its term, i.e., 30 days

after delivery to the QI of a notice of

termination. The Service cannot give

notice of termination until thirty days

after it has delivered a notice of

default. The Service may deliver a

notice of default at any time after an

event of default under the withholding

agreement has occurred.

(b) Events of default. Events of

default include the determination upon

audit by the Service that significant

underwithholding has occurred, that

incorrect reporting or a failure to report

with respect to a significant number of

accounts has occurred, that the QI has

failed to comply with the procedures

required by the agreement and the

failure raises a significant risk that

significant underwithholding or underreporting may have occurred. The

withholding agreement will define

when underwithholding or underreporting is deemed to be significant. An

event of default shall also be deemed

to occur if the QI has failed to perform

any other duty or obligation required of

it under the withholding agreement, the

QI has misrepresented information on

an intermediary withholding certificate,

or the QI had actual knowledge at the

time a payment was made that information (otherwise required to be provided

on withholding certificates described in

§1.1441–1(e)(1), as may be modified

under the agreement) regarding the

1996– 27 I.R.B.

beneficial owner or the payee was

lacking, incorrect, or unreliable. The QI

may respond to the notice of default by

making an offer to cure within thirty

days. The Service shall accept or reject

the offer to cure, or make a counterproposal within ten days.

12. Renewal. A QI that wishes to

renew a withholding agreement must

submit an application for renewal to

the Service at least six months prior to

the expiration of the withholding agreement. The application for renewal shall

contain the same information required

in the application and shall note any

changes that have occurred in the

information since the previous application. Before approval of any renewal of

the withholding agreement, the Service

may conduct an audit of the QI by

correspondence making use of statistical sampling techniques or on the basis

of spot checking.

SEC. 5. LISTING OF QI’s

The Service may periodically publish

in the Internal Revenue Bulletin a list

of the QI’s that have a withholding

agreement in effect with the Service

and of those whose withholding agreement has been terminated or suspended.

SEC. 6. EFFECTIVE DATE

This revenue procedure is effective

on the date of its publication in the

Internal Revenue Bulletin.

DRAFTING INFORMATION

The principal author of this revenue

procedure is Carl Cooper of the Office

of the Associate Chief Counsel (International). For further information regarding this revenue procedure, please

contact either Carl Cooper on (202)

622-3840 or John Manton of the

Foreign Payments Division on (202)

874-1800.

Requirements for Tax Exempt Section

501(c)(5) Organizations; Hearing

Announcement 96–33

AGENCY: Internal Revenue Service

(IRS), Treasury.

ACTION: Notice of public hearing on

proposed rulemaking.

SUMMARY: This document announces

a hearing on proposed regulations

published on December 21, 1995;

which clarify requirements of section

501(c)(5) to provide needed guidance

to organizations as to the requirements

an organization must meet in order to

be exempt from tax.

DATES: The public hearing will be

held on Wednesday, June 5, 1996,

beginning at 10:00 a.m. Requests to

speak and outlines of oral comments

must be received by Wednesday, May

15, 1996.

ADDRESSES: The public hearing will

be held in the Internal Revenue Service

Commissioner’s Conference Room,

Room 3313, Internal Revenue Building,

1111 Constitution Avenue, N.W.,

Washington, D.C. 20044. Requests to

speak and outlines of oral comments

should be mailed to the Internal Revenue Service, P.O. Box 7604, Ben

Franklin Station, Attn: CC:DOM:

CORP:R [EE–53–95], Room 5228,

Washington, D.C., 20044.

FOR FURTHER INFORMATION

CONTACT: Evangelista Lee of the

Regulations Unit, Assistant Chief

Counsel (Corporate), (202) 622-8452

(not a toll-free number).

SUPPLEMENTARY INFORMATION:

The subject of the public hearing is

proposed amendments to the Income

Tax Regulations under section

501(c)(5) of the Internal Revenue

Code. The proposed regulations appeared in the Federal Register for

Thursday, December 21, 1995 (60 FR

66228 [EE–53–95, 1996–5 I.R.B. 23]).

The rules of §601.601(a)(3) of the

‘‘Statement of Procedural Rules’’ (26

CFR Part 601) shall apply with respect

to the public hearing. Persons who

have submitted written comments

within the time prescribed in the notice

of proposed rulemaking and who also

desire to present oral comments at the

hearing on the proposed regulations

should submit not later than Wednesday, May 15, 1996, an outline of the

oral comments/testimony to be presented at the hearing and the time they

wish to devote to each subject.

Each speaker (or group of speakers

representing a single entity) will be

limited to 10 minutes for an oral

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presentation exclusive of the time

consumed by the questions from the

panel for the government and answer

thereto.

Because of controlled access restrictions, attenders cannot be admitted

beyond the lobby of the Internal

Revenue Building until 9:45 a.m.

An agenda showing the scheduling

of the speakers will be made after

outlines are received from the persons

testifying. Copies of the agenda will be

available free of charge at the hearing.

Cynthia E. Grigsby,

Chief, Regulations Unit,

Assistant Chief Counsel (Corporate).

(Filed by the Office of the Federal Register on

April 4, 1996, 8:45 a.m., and published in the

issue of the Federal Register for April 5, 1996,

61 F.R. 15204)

Hedging Transaction by Members of a

Consolidated Group; Correction

Announcement 96–34

AGENCY: Internal Revenue Service,

Treasury.

ACTION:

regulations.

Correction

final

SUMMARY: This document contains a

correction to the final regulations [TD

8653 [1996–12 I.R.B. 4]] which were

published in the Federal Register for

Monday, January 8, 1996 (61 FR 517).

The final regulations relate to the

character and timing of gain or loss

from certain hedging transactions entered into by members of a consolidated group.

EFFECTIVE DATE: February 7, 1996.

FOR FURTHER INFORMATION

CONTACT: Jo Lynn Ricks of the

Office of the Assistant Chief Counsel

(Financial Institutions and Products),

(202) 622-3920 (not a toll-free

number).

SUPPLEMENTARY INFORMATION:

Background

The final regulations which are the

subject of this correction are under

sections 446 and 1221 of the Internal

Revenue Code.

Need for Correction

As published, TD 8653 contains an

error that is in need of correction.

FOR FURTHER INFORMATION

CONTACT: Philip L. Tretiak, (202)

622-3860 (not a toll-free number).

SUPPLEMENTARY INFORMATION:

Correction of Publication

Background

Accordingly, the publication of the

final regulations which is the subject of

FR Doc. 96–178, is corrected as

follows:

The temporary regulations that are

the subject of this correction is under

section 367 Internal Revenue Code.

§1.1221–2 [Corrected]

Need for Correction

On page 520, column 2, §1.1221–2,

paragraph (d)(2)(iv), last line, the language ‘‘after the date so indicated.’’ is

corrected to read ‘‘after the date so

indicated. The election may be revoked

only with the consent of the

Commissioner.’’

Cynthia E. Grigsby,

Chief, Regulations Unit,

Assistant Chief Counsel (Corporate).

(Filed by the Office of the Federal Register on

March 20, 1996, 8:45 a.m., and published in

the issue of the Federal Register for March 21,

1996, 61 F.R. 11547)

Certain Transfers of Domestic Stock

or Securities by U.S. Persons to

Foreign Corporations; Correction

Announcement 96–35

AGENCY: Internal Revenue Service,

Treasury.

ACTION: Correction

regulations.

temporary

SUMMARY: This document contains a

correction to temporary regulations (TD

8638 [1996–5 I.R.B. 5]), which were

published in the Federal Register Tuesday, December 26, 1995 (60 FR

66739), that amend the Income Tax

Regulations with respect to certain

transfers of stock or securities of

domestic corporations by United States

persons to foreign corporations pursuant to the corporate organization,

reorganization, or liquidation provisions

of the Internal Revenue Code. The

temporary regulations also remove certain parts of the existing temporary

regulations regarding transfers by U.S.

persons of stock or securities of both

domestic and foreign corporations.

EFFECTIVE DATE: December 26,

1995.

As published, the temporary regulations (TD 8638) contains an error

which may prove to be misleading and

is in need of clarification.

Correction of Publication

Accordingly, the publication of the

final regulations (TD 8638), which

were the subject of FR Doc. 95-30829,

is corrected as follows:

On page 66739, column 2, in the

preamble under the paragraph heading

‘‘Applicability and Effective Dates’’,

line 9, the language ‘‘for transfers

occurring January 25, 1996.’’ is corrected to read ‘‘for transfers occurring

after January 25, 1996.’’

Cynthia E. Grigsby,

Chief, Regulations Unit,

Assistant Chief Counsel (Corporate).

(Filed by the Office of the Federal Register on

March 20, 1996, 8:45 a.m., and published in

the issue of the Federal Register for March 21,

1996, 61 F.R. 11550)

Controlling Corporation’s Basis

Adjustment in its Controlled

Corporation’s Stock Following a

Triangular Reorganization; Correction

Announcement 96–36

AGENCY: Internal Revenue Service

(IRS), Treasury.

ACTION:

regulations.

Correction

final

SUMMARY: This document contains a

correction to final regulations [TD

8648 [1996–10 I.R.B. 23]] which were

published in the Federal Register for

Thursday, December 21, 1995 (60 FR

66077). The final regulations relate to

the rules for adjusting the basis of a

1996– 27 I.R.B.

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controlling corporation in the stock of a

controlled corporation as the result of

certain triangular reorganizations involving the stock of the controlling

corporation.

(c)(4), in paragraph (d) of Example 2.,

line 9, the language ‘‘Under 1.358–6

(c)(2)(i)(A), P’s basis in its T’’ is

corrected to read ‘‘Under § 1.358–6

(c)(2)(i)(A), P’s basis in its T.’’

EFFECTIVE DATE: December 21,

1995.

Cynthia E. Grigsby,

Chief, Regulations Unit,

Assistant Chief Counsel (Corporate).

FOR FURTHER INFORMATION

CONTACT: Curt Cutting, (202)

622-7550 (not a toll-free number).

(Filed by the Office of the Federal Register on

March 20, 1996, 8:45 a.m., and published in

the issue of the Federal Register for March 21,

1996, 61 F.R. 11547)

The final regulations that are the

subject of this correction are under

sections 358, 1032, and 1502 of the

Internal Revenue Code.

Need for Correction

As published, TD 8648 contains a

typographical error that is in need of

clarification.

Correction of Publication

Accordingly, the publication of the

final regulations which are the subject

of FR Doc. 95–30875, is corrected as

follows:

§ 1.358–6 [Corrected]

On page 66080, column 3, § 1.358–6

1996– 27 I.R.B.

SUPPLEMENTARY INFORMATION:

Background

The final regulations that are the

subject of these corrections are under

sections 1502 and 267 of the Internal

Revenue Code.

Need for Correction

SUPPLEMENTARY INFORMATION:

Background

(Corporate), (202) 622-7770 (not a tollfree number).

Consolidated Groups and Controlled

Groups—Intercompany Transactions

and Related Rules; Correction

Correction of Publication

Announcement 96–37

AGENCY: Internal Revenue Service,

Treasury.

ACTION:

regulations.

Correction

final

SUMMARY: This document contains

corrections to final regulations [TD

8597 [1995–32 I.R.B. 6]] which were

published in the Federal Register for

Tuesday, July 18, 1995 (60 FR 36671).

The final regulations amend the intercompany transaction system of the

consolidated return regulations.

EFFECTIVE DATE: July 18, 1995.

FOR FURTHER INFORMATION

CONTACT: Roy Hirschhorn of the

Office of Assistant Chief Counsel

As published, TD 8597 contains

errors that are in need of correction.

Accordingly, the publication of the

final regulations which is the subject of

FR Doc. 95–16973, is corrected as

follows:

On page 36679, under amendatory

instruction ‘‘Par. 2.,’’ the first column

in the table is corrected by removing

the reference to ‘‘1.263A–1T(b)(2)(vi)(B)’’ and in the seven entries for

‘‘1.263A–1T’’ correct the number

‘‘1.263A–1T’’ to read ‘‘1.263A–7T.’’

Cynthia E. Grigsby,

Chief, Regulations Unit,

Assistant Chief Counsel (Corporate).

(Filed by the Office of the Federal Register on

March 27, 1996, 8:45 a.m., and published in

the issue of the Federal Register for March 28,

1996, 61 F.R. 13762)

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Definition of Terms

Revenue rulings and revenue procedures (hereinafter referred to as ‘‘rulings’’) that have an effect on previous

rulings use the following defined terms

to describe the effect:

Amplified describes a situation where

no change is being made in a prior

published position, but the prior position is being extended to apply to a

variation of the fact situation set forth

therein. Thus, if an earlier ruling held

that a principle applied to A, and the

new ruling holds that the same principle also applies to B, the earlier ruling

is amplified. (Compare with modified,

below).

Clarified is used in those instances

where the language in a prior ruling is

being made clear because the language

has caused, or may cause, some confusion. It is not used where a position in

a prior ruling is being changed.

Distinguished describes a situation

where a ruling mentions a previously

published ruling and points out an

essential difference between them.

Modified is used where the substance

of a previously published position is

being changed. Thus, if a prior ruling

held that a principle applied to A but

not to B, and the new ruling holds that

it applies to both A and B, the prior

ruling is modified because it corrects a

published position. (Compare with amplified and clarified, above).

Obsoleted describes a previously

published ruling that is not considered

determinative with respect to future

transactions. This term is most commonly used in a ruling that lists

previously published rulings that are

obsoleted because of changes in law or

regulations. A ruling may also be

obsoleted because the substance has

been included in regulations subsequently adopted.

Revoked describes situations where

the position in the previously published

ruling is not correct and the correct

position is being stated in the new

ruling.

Superseded describes a situation

where the new ruling does nothing

more than restate the substance and

situation of a previously published

ruling (or rulings). Thus, the term is

used to republish under the 1986 Code

and regulations the same position published under the 1939 Code and regulations. The term is also used when it is

desired to republish in a single ruling a

series of situations, names, etc., that

were previously published over a

period of time in separate rulings.

If the new ruling does more than

restate the substance of a prior ruling, a

combination of terms is used. For

example, modified and superseded describes a situation where the substance

of a previously published ruling is

being changed in part and is continued

without change in part and it is desired

to restate the valid portion of the

previously published ruling in a new

ruling that is self contained. In this

case the previously published ruling is

first modified and then, as modified, is

superseded.

Supplemented is used in situations in

which a list, such as a list of the names

of countries, is published in a ruling

and that list is expanded by adding

further names in subsequent rulings.

After the original ruling has been

supplemented several times, a new

ruling may be published that includes

the list in the original ruling and the

additions, and supersedes all prior

rulings in the series.

Suspended is used in rare situations

to show that the previous published

rulings will not be applied pending

some future action such as the issuance

of new or amended regulations, the

outcome of cases in litigation, or the

outcome of a Service study.

Abbreviations

E.O.—Executive Order.

ER—Employer.

ERISA—Employee Retirement Income Security Act.

EX—Executor.

F—Fiduciary.

FC—Foreign Country.

FICA—Federal Insurance Contribution Act.

FISC—Foreign International Sales Company.

FPH—Foreign Personal Holding Company.

F.R.—Federal Register.

FUTA—Federal Unemployment Tax Act.

FX—Foreign Corporation.

G.C.M.—Chief Counsel’s Memorandum.

GE—Grantee.

GP—General Partner.

GR—Grantor

IC—Insurance Company.

I.R.B.—Internal Revenue Bulletin.

LE—Lessee.

LP—Limited Partner.

LR—Lessor.

M—Minor.

Nonacq.—Nonacquiescence.

O—Organization.

P—Parent Corporation.

PHC—Personal Holding Company.

PO—Possession of the U.S.

PR—Partner.

PRS—Partnership.

PTE—Prohibited Transaction Exemption.

Pub. L.—Public Law.

REIT—Real Estate Investment Trust.

Rev. Proc.—Revenue Procedure.

Rev. Rul.—Revenue Ruling.

S—Subsidiary.

S.P.R.—Statements of Procedural Rules.

Stat.—Statutes at Large.

T—Target Corporation.

T.C.—Tax Court.

T.D.—Treasury Decision.

TFE—Transferee.

TFR—Transferor.

T.I.R.—Technical Information Release.

TP—Taxpayer.

TR—Trust.

TT—Trustee.

U.S.C.—United States Code.

X—Corporation.

Y—Corporation.

Z—Corporation.

The following abbreviations in current use and

formerly used will appear in material published

in the Bulletin.

A—Individual.

Acq.—Acquiescence.

B—Individual.

BE—Beneficiary.

BK—Bank.

B.T.A.—Board of Tax Appeals.

C.—Individual.

C.B.—Cumulative Bulletin.

CFR—Code of Federal Regulations.

CI—City.

COOP—Cooperative.

Ct.D.—Court Decision.

CY—County.

D—Decedent.

DC—Dummy Corporation.

DE—Donee.

Del. Order—Delegation Order.

DISC—Domestic International Sales Corporation.

DR—Donor.

E—Estate.

EE—Employee.

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Numerical Finding List1

Bulletins 1996–1 through 1996–17

Announcements:

96–1, 1996–2 I.R.B. 57

96–2, 1996–2 I.R.B. 57

96–3, 1996–2 I.R.B. 57

96–4, 1996–3 I.R.B. 50

96–5, 1996–4 I.R.B. 99

96–6, 1996–5 I.R.B. 43

96–7, 1996–5 I.R.B. 44

96–8, 1996–7 I.R.B. 56

96–9, 1996–8 I.R.B. 30

96–10, 1996–8 I.R.B. 30

96–11, 1996–9 I.R.B. 11

96–12, 1996–11 I.R.B. 30

96–13, 1996–12 I.R.B. 33

96–14, 1996–12 I.R.B. 35

96–15, 1996–11 I.R.B. 9

96–16, 1996–13 I.R.B. 22

96–17, 1996–13 I.R.B. 22

96–18, 1996–15 I.R.B. 15

96–19, 1996–15 I.R.B. 15

96–20, 1996–15 I.R.B. 15

96–21, 1996–15 I.R.B. 15

96–22, 1996–15 I.R.B. 16

96–23, 1996–16 I.R.B. 30

96–24, 1996–16 I.R.B. 35

96–25, 1996–17 I.R.B. 13

96–26, 1996–17 I.R.B. 13

96–27, 1996–17 I.R.B. 16

96–28, 1996–17 I.R.B. 16

96–29, 1996–17 I.R.B. 17

96–30, 1996–17 I.R.B. 17

96–31, 1996–17 I.R.B. 18

96–32, 1996–17 I.R.B. 18

Delegations Orders:

232 (Rev. 2), 1996–7 I.R.B. 49

239 (Rev. 1), 1996–7 I.R.B. 49

Notices:

96–2, 1996–2 I.R.B. 15

96–1, 1996–3 I.R.B. 30

96–4, 1996–4 I.R.B. 69

96–5, 1996–6 I.R.B. 22

96–6, 1996–5 I.R.B. 27

96–7, 1996–6 I.R.B. 22

96–8, 1996–6 I.R.B. 23

96–9, 1996–6 I.R.B. 26

96–10, 1996–7 I.R.B. 47

96–11, 1996–8 I.R.B. 19

96–12, 1996–10 I.R.B. 29

96–13, 1996–10 I.R.B. 29

96–14, 1996–12 I.R.B. 11

96–15, 1996–13 I.R.B. 19

96–16, 1996–13 I.R.B. 20

Notices—Continued

Revenue Procedures—Continued

96–17, 1996–13 I.R.B. 20

96–18, 1996–14 I.R.B. 27

96–19, 1996–14 I.R.B. 28

96–20, 1996–14 I.R.B. 30

96–21, 1996–14 I.R.B. 30

96–22, 1996–14 I.R.B. 30

96–23, 1996–16 I.R.B. 23

96–24, 1996–16 I.R.B. 23

96–25, 1996–17 I.R.B. 11

96–26, 1996–8 I.R.B. 22

96–27, 1996–11 I.R.B. 27

96–28, 1996–14 I.R.B. 31

96–29, 1996–16 I.R.B. 24

Proposed Regulations:

DL–1–95, 1996–6 I.R.B. 28

EE–20–95, 1996–5 I.R.B. 15

EE–34–95, 1996–3 I.R.B. 49

EE–35–95, 1996–5 I.R.B. 19

EE–53–95, 1996–5 I.R.B. 23

EE–55–95, 1996–12 I.R.B. 12

EE–106–82, 1996–10 I.R.B. 31

EE–142–87, 1996–12 I.R.B. 13

EE–148–81, 1996–11 I.R.B. 29

IA–3–94, 1996–17 I.R.B. 12

IA–33–95, 1996–4 I.R.B. 99

IA–41–93, 1996–11 I.R.B. 29

INTL–3–95, 1996–6 I.R.B. 29

INTL–9–95, 1996–5 I.R.B. 25

INTL–54–95, 1996–14 I.R.B. 39

PS–2–95, 1996–7 I.R.B. 50

PS–6–95, 1996–16 I.R.B. 27

Revenue Procedures:

96–1, 1996–1 I.R.B. 8

96–2, 1996–1 I.R.B. 60

96–3, 1996–1 I.R.B. 82

96–4, 1996–1 I.R.B. 94

96–5, 1996–1 I.R.B. 129

96–6, 1996–1 I.R.B. 151

96–7, 1996–1 I.R.B. 185

96–8, 1996–1 I.R.B. 187

96–8A, 1996–9 I.R.B. 10

96–9, 1996–2 I.R.B. 15

96–10, 1996–2 I.R.B. 17

96–11, 1996–2 I.R.B. 18

96–12, 1996–3 I.R.B. 30

96–13, 1996–3 I.R.B. 31

96–14, 1996–3 I.R.B. 41

96–15, 1996–3 I.R.B. 41

96–16, 1996–3 I.R.B. 45

96–17, 1996–4 I.R.B. 69

96–18, 1996–4 I.R.B. 73

96–19, 1996–4 I.R.B. 80

96–20, 1996–4 I.R.B. 88

96–21, 1996–4 I.R.B. 96

96–22, 1996–5 I.R.B. 27

96–23, 1996–5 I.R.B. 27

96–24, 1996–5 I.R.B. 28

96–24A, 1996–15 I.R.B. 12

96–25, 1996–8 I.R.B. 19

See footnote at the end of list.

Revenue Rulings:

96–1, 1996–1 I.R.B. 7

96–2, 1996–2 I.R.B. 5

96–3, 1996–2 I.R.B. 14

96–6, 1996–2 I.R.B. 8

96–4, 1996–3 I.R.B. 16

96–5, 1996–3 I.R.B. 29

96–7, 1996–3 I.R.B. 12

96–8, 1996–4 I.R.B. 62

96–9, 1996–4 I.R.B. 5

96–10, 1996–4 I.R.B. 27

96–11, 1996–4 I.R.B. 28

96–12, 1996–9 I.R.B. 4

96–13, 1996–10 I.R.B. 19

96–14, 1996–6 I.R.B. 20

96–15, 1996–11 I.R.B. 9

96–16, 1996–11 I.R.B. 4

96–17, 1996–13 I.R.B. 5

96–18, 1996–13 I.R.B. 4

96–19, 1996–14 I.R.B. 24

96–20, 1996–15 I.R.B. 5

96–21, 1996–15 I.R.B. 7

96–22, 1996–15 I.R.B. 9

96–23, 1996–15 I.R.B. 11

Treasury Decisions:

8630, 1996–3 I.R.B. 19

8631, 1996–3 I.R.B. 7

8632, 1996–4 I.R.B. 6

8633, 1996–4 I.R.B. 20

8634, 1996–3 I.R.B. 17

8635, 1996–3 I.R.B. 5

8636, 1996–4 I.R.B. 64

8637, 1996–4 I.R.B. 29

8638, 1996–5 I.R.B. 5

8639, 1996–5 I.R.B. 12

8640, 1996–2 I.R.B. 10

8641, 1996–6 I.R.B. 4

8642, 1996–7 I.R.B. 4

8643, 1996–11 I.R.B. 4

8644, 1996–7 I.R.B. 16

8645, 1996–8 I.R.B. 4

8646, 1996–8 I.R.B. 10

8647, 1996–9 I.R.B. 7

8648, 1996–10 I.R.B. 23

8649, 1996–9 I.R.B. 5

8650, 1996–10 I.R.B. 5

8651, 1996–11 I.R.B. 24

8652, 1996–11 I.R.B. 11

8653, 1996–12 I.R.B. 4

8654, 1996–11 I.R.B. 14

8655, 1996–12 I.R.B. 9

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Numerical Finding List1—Continued

Bulletins 1996–1 through 1996–17

Treasury Decisions—Continued

8656, 1996–13 I.R.B. 9

8657, 1996–14 I.R.B. 4

8658, 1996–14 I.R.B. 13

8659, 1996–16 I.R.B. 4

8660, 1996–17 I.R.B. 4

8661, 1996–17 I.R.B. 7

1A cumulative list of all Revenue Rulings,

Revenue Procedures, Treasury Decisions, etc.,

published in Internal Revenue Bulletins 1995–

27 through 1995–52 will be found in Internal

Revenue Bulletin 1996–1, dated January 2,

1996.

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Revenue Procedures—Continued

92–85

Modified by

96–1, 1996–1 I.R.B. 8

95–7

Superseded by

96–7, 1996–1 I.R.B. 185

93–16

Superseded by

96–11, 1996–2 I.R.B. 18

95–8

Superseded by

96–8, 1996–1 I.R.B. 187

93–46

Superseded in part by

96–17, 1996–4 I.R.B. 69

95–13

Superseded by

96–20, 1996–4 I.R.B. 88

239

Amended by

239 (Rev. 1), 1996–7 I.R.B. 49

Superseded by

96–18, 1996–4 I.R.B. 73

Revenue Procedures:

94–16

Modified by

96–29, 1996–16 I.R.B. 24

95–20

Superseded by

96–24, 1996–5 I.R.B. 28

Finding List of Current Action on

Previously Published Items1

Bulletins 1996–1 through 1996–17

*Denotes entry since last publication

Delegation Orders:

232 (Rev. 1)

Superseded by

232 (Rev. 2), 1996–7 I.R.B. 49

65–17

Modified by

96–14, 1996–3 I.R.B. 41

66–49

Modified by

96–15, 1996–3 I.R.B. 41

88–32

Obsoleted by

96–15, 1996–3 I.R.B. 41

88–33

Obsoleted by

96–15, 1996–3 I.R.B. 41

89–19

Superseded by

96–17, 1996–4 I.R.B. 69

94–18

Superseded in part by

96–17, 1996–4 I.R.B. 69

Superseded by

96–18, 1996–4 I.R.B. 73

94–59

Superseded in part by

96–17, 1996–4 I.R.B. 69

Superseded by

96–18, 1996–4 I.R.B. 73

94–62

Modified by

96–29, 1996–16 I.R.B. 24

89–48

Superseded in part by

96–17, 1996–4 I.R.B. 69

94–77

Superseded by

96–28, 1996–14 I.R.B. 31

91–22

Modified by

96–1, 1996–1 I.R.B. 8

95–1

Superseded by

96–1, 1996–1 I.R.B. 8

91–22

Amplified by

96–13, 1996–3 I.R.B. 31

95–2

Superseded by

96–2, 1996–1 I.R.B. 60

91–23

Superseded by

96–13, 1996–3 I.R.B. 31

95–3

Superseded by

96–3, 1996–1 I.R.B. 82

91–24

Superseded by

96–14, 1996–3 I.R.B. 41

95–4

Superseded by

96–4, 1996–1 I.R.B. 94

91–26

Superseded by

96–13, 1996–3 I.R.B. 31

95–5

Superseded by

96–5, 1996–1 I.R.B. 129

92–20

Modified by

96–1, 1996–1 I.R.B. 8

95–6

Superseded by

96–6, 1996–1 I.R.B. 151

1A cumulative finding list for previously

published items mentioned in Internal Revenue

Bulletins 1995–27 through 1995–52 will be

found in Internal Revenue Bulletin 1996–1, dated

January 2, 1996.

95–50

Superseded by

96–3, 1996–1 I.R.B. 82

96–3

Amplified by

96–12, 1996–3 I.R.B. 30

Revenue Rulings:

66–307

Obsoleted by

96–3, 1996–2 I.R.B. 14

72–437

Modified by

96–13, 1996–3 I.R.B. 31

80–80

Obsoleted by

96–3, 1996–2 I.R.B. 14

82–80

Modified by

96–14, 1996–3 I.R.B. 41

92–19

Supplemented in part

96–2, 1996–2 I.R.B. 5

92–75

Clarified by

96–13, 1996–3 I.R.B. 31

95–10

Supplemented and superseded by

96–4, 1996–3 I.R.B. 16

95–11

Supplemented and superseded by

96–5, 1996–3 I.R.B. 29

96–24

Modified and amplified by

96–24A, 1996–15 I.R.B. 12

This is a copy of a public record, reproduced as it was published. It is not legal advice, and it may not be the version a court would rely on. Check the official source before you cite it.