Bulletin No. 1998–19

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May 11, 1998

Internal Revenue

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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.

INCOME TAX

EXCISE TAX

Rev. Rul. 98–25, page 4.

Rev. Rul. 98–24, page 6.

Business expenses; storage tanks. Under the circumstances described in this revenue ruling, the costs incurred

to replace underground storage tanks containing waste byproducts (including the cost of removing, cleaning, and disposing of the old tanks, and acquiring, installing, and filling

the new tanks) are deductible as ordinary and necessary

business expenses under section 162 of the Code.

Exemption from certain federal excise taxes for consular officers and employees. If consular officers and

employees and members of their families forming part of

their households purchase from the manufacturer an article

otherwise subject to a federal excise tax on sales by manufacturers, or purchase from a retailer an article otherwise

subject to a federal excise tax on sales by retailers, the

transaction will not be taxed. Rev. Rul. 73–198 modified and

Rev. Rul. 68–352 obsoleted.

EMPLOYEE PLANS

Announcement 98–38, page 26.

Notice of proposed rulemkaing (REG–209476–82, 1998–8

I.R.B. 36) under section 72(p) of the Code, relating to loans

made from a qualified employer plan to plan participants or

beneficiaries, is corrected.

ADMINISTRATIVE

Notice 98–28, page 7.

A list is given of organizations now classified as private foundations.

Credit for producing fuel from a nonconventional

source, Code section 29 inflation adjustment factor

and reference price. This notice publishes the Code section 29 inflation adjustment factor, the nonconventional

source fuel credit, and the section 29 reference price for

calendar year 1997. These data are used to determine the

credit allowable on fuel produced from a nonconventional

source.

ESTATE TAX

Rev. Proc. 98–33, page 7.

EXEMPT ORGANIZATIONS

Announcement 98–37, page 24.

Rev. Rul. 98–22, page 5.

Special use value; farms; interest rates. The 1998 interest rates to be used in computing the special use value of

farm real property for which an election is made under section 2032A of the Code are listed for estates of decedents.

Finding Lists begin on page 28.

Department of the Treasury

Internal Revenue Service

General rules and specifications for private printing of

Forms W–2 and W–3. Specifications are set forth for the

private printing of paper substitutes for tax year 1998 Form

W–2, Wage and Tax Statement, and Form W–3, Transmittal

of Wage and Tax Statements. Rev. Procs. 97–24 and

97–24A superseded.

Mission of the Service

ucts and services; and perform in a manner warranting

the highest degree of public confidence in our integrity, efficiency, and fairness.

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 prod-

Statement of Principles

of Internal Revenue

Tax Administration

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.

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.

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.

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.

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.

dures 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.

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.

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).

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.

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.

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 proce-

The first Bulletin for each month includes a cumulative index

for the matters published during the preceding months.

These monthly indexes are cumulated on a semiannual basis

and are published in the first Bulletin of the succeeding semiannual period, respectively.

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, DC 20402.

Part I. Rulings and Decisions Under the Internal Revenue Code of 1986

Section 162.—Trade or Business

Expenses

26 CFR 1.162–1: Business expenses.

(Also section 263; 1.263(a)–1; 1.162-3.)

Business expenses; storage tanks.

Under the circumstances described in this

revenue ruling, the costs incurred to replace underground storage tanks containing waste by-products (including the cost

of removing, cleaning, and disposing of

the old tanks, and acquiring, installing,

and filling the new tanks) are deductible

as ordinary and necessary business expenses under section 162 of the Code.

Rev. Rul. 98–25

ISSUE

Under the circumstances described

below, are the costs incurred to replace

underground storage tanks (“USTs”) containing waste by-products (including the

cost of removing, cleaning, and disposing

of the old USTs, and acquiring, installing,

and filling the new USTs) deductible by

the taxpayer as business expenses under

§ 162 of the Internal Revenue Code or

must they be capitalized under § 263?

FACTS

X, a corporation, employs the accrual

method of accounting and uses a calendar

year. X operates a manufacturing facility.

In the past, X’s manufacturing operations

had produced waste by-products in the

course of its operations. Consistent with

the industry-wide practice at that time, X

placed this waste in steel USTs (“old

USTs”) that X buried on its land.

In 1998, X incurred costs to remove its

old USTs and replace them with USTs

made of a steel-fiberglass-reinforced plastic composite material (“new USTs”) that

comply with current federal, state, and

local environmental laws. X excavated a

hole in the ground large enough to gain

access to the old USTs. X then drained

the waste from the old USTs and placed it

in a temporary repository. X then lifted

the old USTs out of the hole, cleaned

them, and disposed of them at an appropriate disposal facility. In the same taxable year, X placed the new USTs in the

same hole, and transferred the waste from

May 11, 1998

the temporary repository into the new

USTs. Finally, X sealed the new USTs

and filled the hole with soil.

The new USTs will not be emptied and

reused, but will remain filled with the

same waste indefinitely. Applicable law

requires that X continue to monitor the

buried new USTs to detect leaks, if any.

Once they are filled with waste and sealed,

the new USTs have no salvage value.

LAW AND ANALYSIS

Sections 162 and 1.162–1(a) of the Income Tax Regulations allow a deduction

for all the ordinary and necessary expenses paid or incurred during the taxable

year in carrying on any trade or business.

Section 1.162–3 provides, in part, that

taxpayers carrying materials and supplies

on hand should include in expenses the

charges for materials and supplies only in

the amount that they are actually consumed and used in operation during the

taxable year for which the return is made.

Sections 263 and 1.263(a)–1(a) provide

that no deduction is allowed for any

amounts paid out for new buildings or for

permanent improvements or betterments

made to increase the value of any property. Section 1.263(a)–2(a) provides that

capital expenditures include the cost of

acquisition, construction, or erection of

buildings, machinery and equipment, furniture and fixtures, and similar property

having a useful life substantially beyond

the taxable year.

Through provisions such as §§ 162(a),

263(a), and related sections, the Code

generally endeavors to match expenses

with the revenues of the taxable period to

which the expenses are properly attributable, thereby resulting in a more accurate

calculation of net income for tax purposes. See, e.g., INDOPCO, Inc. v. Commissioner, 503 U.S. 79, 84 (1992); Commissioner v. Idaho Power Co., 418 U.S. 1,

16 (1974). Moreover, as the Supreme

Court specifically recognized, the “decisive distinctions [between capital and ordinary expenditures] are those of degree

and not of kind,” and a careful examination of the particular facts of each case is

required. Welch v. Helvering, 290 U.S.

111, 114 (1933); Deputy v. du Pont, 308

U.S. 488, 496 (1940); see also

INDOPCO, 503 U.S. at 87.

The useful life of an asset for § 263

purposes is its useful life to the taxpayer,

not its inherent useful life. See Silverton

v. Commissioner, T.C.M. 1977–198;

Massey Motors, Inc. v. United States, 364

U.S. 92 (1960). Unlike most storage

tanks, which are used to hold a substance

temporarily and are emptied and refilled

repeatedly throughout their useful lives,

X’s new USTs are filled with waste once,

sealed indefinitely, and thereafter have no

salvage value. Upon being filled with

waste and sealed, the new USTs have no

remaining useful life to X. X’s new USTs

are used merely to facilitate the disposal

of waste and therefore are similar to a material or supply that is consumed and used

in operation during the taxable year. Accordingly, because X acquired, filled, and

sealed the new USTs all in 1998, the costs

of acquiring and installing the new USTs

are not capital expenditures, but are ordinary and necessary business expenses deductible under § 162. The new USTs,

which are used once and then sealed indefinitely, are distinguishable from the

groundwater treatment facilities in Rev.

Rul. 94–38, 1994–1 C.B. 35, which are

used by the taxpayer substantially beyond

the taxable year.

Further, X’s costs of removing, cleaning, and disposing of the old USTs, and

filling and on-going monitoring of the

new USTs are deductible as business expenses under § 162.

The results would be the same if X had

instead ceased to operate the manufacturing facility in 1998 or in a previous taxable year. The results would also be the

same if X had instead used storage tanks

that were designed to store waste above

ground.

HOLDING:

Under the circumstances described

above, the costs incurred to replace USTs

containing waste by-products (including

the cost of removing, cleaning, and disposing of the old USTs, and acquiring, installing, and filling the new USTs) are deductible by the taxpayer as ordinary and

necessary business expenses under § 162.

EFFECT ON OTHER DOCUMENTS

Rev. Rul. 94-38 is distinguished.

1998–19 I.R.B.

DRAFTING INFORMATION

Rev. Rul. 98–22

For further information contact Merrill

Feldstein of the Income Tax and Accounting division of the Office of Chief Counsel at (202) 622-4950 (not a toll free call).

This revenue ruling contains a list of

the average annual effective interest rates

on new loans under the Farm Credit Bank

system. This revenue ruling also contains

a list of the states within each Farm Credit

Bank District.

Under § 2032A(e)(7)(A)(ii) of the Internal Revenue Code, rates on new Farm

Credit Bank loans are used in computing

the special use value of real property used

as a farm for which an election is made

under § 2032A. The rates in this revenue

ruling may be used by estates that value

farmland under § 2032A as of a date in

1998.

Average annual effective interest

rates, calculated in accordance with

§ 2032A(e)(7)(A) and § 20.2032A-4(e) of

the Estate Tax Regulations, to be used

under § 2032A(e)(7)(A)(ii), are set forth

in the accompanying Table of Interest

Rates (Table 1). The states within each

Farm Credit Bank District are set forth in

the accompanying Table of Farm Credit

Bank Districts (Table 2).

Rev. Rul. 81–170, 1981–1 C.B. 454,

contains an illustrative computation of an

average annual effective interest rate.

The rates applicable for valuation in 1997

are in Rev. Rul. 97–13, 1997–16 I.R.B. 4.

For rate information for years prior to

1997, see Rev. Rul. 96–23, 1996–1 C.B.

Section 263.—Capital

Expenditures

26 CFR 1.263(a)–1: Capital expenditures; in

general.

Are the costs incurred to replace underground

storage tanks containing waste by-products (including the cost of removing, cleaning, and disposing of

the old tanks, and acquiring, installing, and filling

the new tanks) deductible by the taxpayer as business expenses under § 162 of the Code, or must they

be capitalized under § 263? See Rev. Rul. 98–25,

page 4.

Section 2032A.—Valuation of

Certain Farm, Etc., Real

Property

26 CFR 20.2032A–4: Method of valuing farm real

property.

Special use value; farms; interest

rates. The 1998 interest rates to be used

in computing the special use value of

farm real property for which an election is

made under section 2032A of the Code

are listed for estates of decedents.

198, and other revenue rulings that are

referenced therein.

DRAFTING INFORMATION

The principal author of this revenue

ruling is Lane Damazo of the Office of

Assistant Chief Counsel (Passthroughs

and Special Industries). For further information regarding this revenue ruling, contact Lane Damazo on (202) 622-3090 (not

a toll-free call).

REV. RUL. 98–22 TABLE 1

TABLE OF INTEREST RATES

(Year of Valuation 1998)

Farm Credit Bank District in

Which Property Is Located

Interest

Rate

Columbia . . . . . . . . . . . . . . . . . . 9.32

Omaha . . . . . . . . . . . . . . . . . . . . 8.17

Sacramento . . . . . . . . . . . . . . . . . 8.38

St. Paul . . . . . . . . . . . . . . . . . . . . 8.28

Spokane . . . . . . . . . . . . . . . . . . . 8.22

Springfield . . . . . . . . . . . . . . . . . 8.74

Texas . . . . . . . . . . . . . . . . . . . . . 8.19

Wichita . . . . . . . . . . . . . . . . . . . . 8.27

REV. RUL. 98–22 TABLE 2

TABLE OF FARM CREDIT BANK DISTRICTS

District

States

Columbia . . . . . . . . . . . . . . . . . . . . . . . Delaware, District of Columbia, Florida, Georgia, Maryland, North Carolina, Pennsylvania, South Carolina, Virginia, West Virginia.

Omaha . . . . . . . . . . . . . . . . . . . . . . . . . Iowa, Nebraska, South Dakota, Wyoming.

Sacramento . . . . . . . . . . . . . . . . . . . . . Arizona, California, Hawaii, Nevada, Utah.

St. Paul . . . . . . . . . . . . . . . . . . . . . . . . Arkansas, Illinois, Indiana, Kentucky, Michigan, Minnesota, Missouri, North Dakota,

Ohio, Tennessee, Wisconsin.

Spokane . . . . . . . . . . . . . . . . . . . . . . . Alaska, Idaho, Montana, Oregon, Washington.

Springfield . . . . . . . . . . . . . . . . . . . . . . Connecticut, Maine, Massachusetts, New Hampshire, New Jersey, New York, Rhode

Island, Vermont.

Texas . . . . . . . . . . . . . . . . . . . . . . . . . . Alabama, Louisiana, Mississippi, Texas.

Wichita . . . . . . . . . . . . . . . . . . . . . . . . Colorado, Kansas, New Mexico, Oklahoma.

1998–19 I.R.B.

May 11, 1998

Section 4041.—Imposition of

Tax

26 CFR 48.4041–3: Application of tax on sales of

special motor fuel for use in motor vehicles and

motorboats.

(Also sections 4071, 4081, 4091, 4161; 48.4071–1,

48.4081–2, 48.4161(a)–1, 48.4161(b)–1.)

Exemption from certain federal excise taxes for consular officers and employees. If consular officers and employees and members of their families

forming part of their households purchase

from the manufacturer thereof an article

otherwise subject to a federal excise tax

on sales by manuacturers, or purchase

from a retailer an article otherwise subject

to a federal excise tax on sales by retailers, the transaction will not be taxed. Rev.

Rul. 73–198 modified and Rev. Rul.

68–352 obsoleted.

Rev. Rul. 98–24

This revenue ruling modifies Rev. Rul.

73–198, 1973–1 C.B. 425, which discusses exemptions from certain federal

excise taxes extended to foreign diplomatic, consular, and other officers, and

agencies or commissions of foreign governments.

Rev. Rul. 73–198 provides that if ambassadors, ministers, other duly accredited diplomatic representatives of foreign

governments, the members of their families living with them, members of their

households (but not servants), attaches,

secretaries, clerks, and also officers of

missions to the United Nations and the

Organization of American States serving

in a representative capacity and family

members living with such officers, purchase from the manufacturer thereof an

article otherwise subject to a federal excise tax on sales by manufacturers, or purchase from a retailer an article otherwise

subject to a federal excise tax on sales by

retailers, the transaction will not be taxed.

Rev. Rul. 73–198 does not extend this

benefit to consular officers and employees of foreign governments and members

of their families forming part of their

households.

Under section 201(c) of the Foreign

Missions Act, 22 U.S.C. § 4301 (1994),

the Secretary of State is authorized to determine the treatment that should be accorded a foreign mission in the United

May 11, 1998

States based on due consideration of the

benefits, privileges, and immunities provided to missions of the United States in

the country or territory represented by the

foreign mission. The Secretary of State,

after due consideration of the benefits,

privileges, and immunities provided to

missions of the United States under the

Vienna Convention on Consular Relations

and other governing treaties, has determined that if consular officers and employees (not including honorary consuls)

and members of their families forming

part of their households purchase from the

manufacturer thereof an article otherwise

subject to a federal excise tax on sales by

manufacturers, or purchase from a retailer

an article otherwise subject to a federal

excise tax on sales by retailers, the transaction will not be taxed.

This benefit does not extend to U.S. nationals or permanent residents of the

United States or to consular officers and

employees (and their family members) of

a consular mission representing a country

or territory that does not provide benefits,

privileges, and immunities to missions of

the United States on a reciprocal basis as

determined by the Secretary of State.

“Consular officer” is defined as any person, including the head of a consular post,

entrusted in that capacity with the exercise of consular functions, and “consular

employee” is defined as any person employed in the administrative or technical

service of the consular post.

As a result of this revenue ruling, Rev.

Rul. 68–352, 1968–2 C.B. 487, is no

longer determinative of the exemption

from federal retailers and manufacturers

excise taxes with respect to consular officers and employees (not including honorary consuls) of the Government of

France and members of their families

forming part of their households. Accordingly, Rev. Rul. 68–352 is declared

obsolete.

EFFECT ON OTHER REVENUE

RULINGS

Rev. Rul. 73–198 is modified. Rev.

Rul. 68–352 is obsoleted.

DRAFTING INFORMATION

The principal author of this revenue

ruling is Susan Athy of the Office of As-

sistant Chief Counsel (Passthroughs and

Special Industries). For further information regarding this revenue ruling contact

Susan Athy on (202) 622-3130 (not a tollfree call).

Section 4071.—Imposition of

Tax

26 CFR 48.4071–1: Imposition and rates of tax.

If consular officers or employees purchase directly from the manufacturer thereof an article otherwise subject to federal excise tax on sales by manufacturers, or purchase from a retailer an article

otherwise subject to federal excise tax on sales by

retailers, will the transaction be taxed? See Rev. Rul.

98–24, on this page.

Section 4081.—Imposition of

Tax

26 CFR 48.4081–2: Taxable fuel; tax on removal at

the rack.

If consular officers or employees purchase directly from the manufacturer thereof an article otherwise subject to federal excise tax on sales by manufacturers, or purchase from a retailer an article

otherwise subject to federal excise tax on sales by

retailers, will the transaction be taxed? See Rev. Rul.

98–24, on this page.

Section 4091.—Imposition of

Tax

If consular officers or employees purchase directly from the manufacturer thereof an article otherwise subject to federal excise tax on sales by manufacturers, or purchase from a retailer an article

otherwise subject to federal excise tax on sales by

retailers, will the transaction be taxed? See Rev. Rul.

98–24, on this page.

Section 4161.—Imposition of

Tax

26 CFR 48.4161(a)–1: Imposition and rate of tax;

fishing equipment.

26 CFR 48.4161(b)–1: Imposition and rates of tax;

bows and arrows.

If consular officers or employees purchase directly from the manufacturer thereof an article otherwise subject to federal excise tax on sales by manufacturers, or purchase from a retailer an article

otherwise subject to federal excise tax on sales by

retailers, will the transaction be taxed? See Rev. Rul.

98–24, on this page.

1998–19 I.R.B.

Part III. Administrative, Procedural, and Miscellaneous

Credit for Producing Fuel From

a Nonconventional Source,

Section 29 Inflation Adjustment

Factor, and Section 29

Reference Price

Notice 98–28

This notice publishes the § 29 inflation

adjustment factor, the nonconventional

source fuel credit, and the §29 reference

price for calendar year 1997. These are

used to determine the credit allowable on

fuel produced from a nonconventional

source under § 29 of the Internal Revenue

Code. The calendar year 1997 inflationadjusted credit applies to the sales of barrel-of-oil equivalent of qualified fuels

sold by a taxpayer to an unrelated person

during the 1997 calendar year, the domestic production of which is attributable to

the taxpayer.

BACKGROUND

Section 29(a) provides for a credit for

producing fuel from a nonconventional

source, measured in barrel-of-oil equivalent of qualified fuels, the production of

which is attributable to the taxpayer and

sold by the taxpayer to an unrelated person during the tax year. The credit is

equal to the product of $3.00 and the appropriate inflation adjustment factor.

Section 29(b)(1) and (2) provides for a

phaseout of the credit. The credit allowable under § 29(a) must be reduced by an

amount which bears the same ratio to the

amount of the credit (determined without

regard to § 29(b)(1)) as the amount by

which the reference price for the calendar

year in which the sale occurs exceeds

$23.50 bears to $6.00. The $3.00 in

§ 29(a) and the $23.50 and $6.00 must

each be adjusted by multiplying these

amounts by the 1997 inflation adjustment

factor. In the case of gas from a tight formation, the $3.00 amount in § 29(a) must

not be adjusted.

Section 29(c)(1) defines the term

“qualified fuels” to include oil produced

from shale and tar sands; gas produced

from geopressurized brine, Devonian

shale, coal seams, or a tight formation, or

biomass; and liquid, gaseous, or solid

synthetic fuels produced from coal (in-

1998–19 I.R.B.

cluding lignite), including such fuels

when used as feedstocks.

Section 29(d)(1) provides that the

credit is to be applied only for sale of

qualified fuels the production of which is

within the United States (within the

meaning of § 638(1)) or a possession of

the United States (within the meaning of

§ 638(2)).

Section 29(d)(2)(A) requires that the

Secretary, not later than April 1 of each

calendar year, determine and publish in

the Federal Register the inflation adjustment factor and the reference price for the

preceding calendar year.

Section 29(d)(2)(B) defines “inflation

adjustment factor” for a calendar year as

the fraction the numerator of which is the

GNP implicit price deflator for the calendar year and the denominator of which is

the GNP implicit price deflator for calendar year 1979. The term “GNP implicit

price deflator” means the first version of

the implicit price deflator for the gross national product as computed and published

by the Department of Commerce.

Section 29(d)(2)(C) defines “reference

price” to mean with respect to a calendar

year the Secretary’s estimate of the annual

average wellhead price per barrel of all

domestic crude oil the price of which is

not subject to regulation by the United

States.

Section 29(d)(3) provides that in the

case of a property or facility in which

more than one person has an interest, except to the extent provided by regulations

prepared by the Secretary, production

from the property or facility (as the case

may be) must be allocated among the persons in proportion to their respective interests in the gross sales from the property

or facility.

Section 29(d)(5) and (6) provides that

the term “barrel-of-oil equivalent” with

respect to any fuel generally means that

amount of the fuel which has a Btu content of 5.8 million.

INFLATION ADJUSTMENT FACTOR

AND REFERENCE PRICE

The inflation adjustment factor for calendar year 1997 is 2.0331. The reference

price for calendar year 1997 is $17.24.

As required by § 29(d)(2)(A), the infla-

tion adjustment factor and reference price

for calendar year 1997 were published in

the Federal Register on April 1, 1998 (63

Fed. Reg. 15916).

PHASE-OUT CALCULATION

Because the calendar year 1997 reference price does not exceed $23.50 multiplied by the inflation adjustment factor,

the phaseout of the credit provided for in

§ 29(b)(1) does not occur for any qualified fuel sold in calendar year 1997.

CREDIT AMOUNT

The nonconventional source fuel credit

under § 29(a) is $6.10 per barrel-of-oil

equivalent of qualified fuels ($3.00 ⫻

2.0331). This amount was published in

the Federal Register on April 1, 1998 (63

Fed. Reg. 15916).

DRAFTING INFORMATION

CONTACT

The principal author of this notice is

David G. McMunn of the Office of Assistant Chief Counsel (Passthroughs and

Special Industries). For further information regarding this notice contact Mr. McMunn on (202)622-3110 (not a toll-free

call).

26 CFR 601.602: Forms and instructions.

(Also Part I, sections 6011, 6041, 6051, 6071, 6081,

6091; 1.6041–1, 1.6041–2, 31.6051–1, 31.6051–2,

31.6071(a)–1, 31.6081(a)–1.)

Rev. Proc. 98–33

PART A. GENERAL

SECTION 1. PURPOSE

.01 The purpose of this revenue procedure is to provide the general rules for filing and to state the requirements of the Internal Revenue Service (IRS) and the

Social Security Administration (SSA) for

reproducing paper substitutes for Form

W–2, Wage and Tax Statement, and Form

W–3, Transmittal of Wage and Tax Statements, for amounts paid during the 1998

calendar year. The information reported

on Forms W–2 and W–3 is required to establish tax liability for employees and

their eligibility for Social Security and

Medicare benefits.

May 11, 1998

.02 Forms W–2 and W–3 have only

minor changes for 1998. Please see “Nature of Changes” (Section 2, below) and

the exhibits at the end of this revenue procedure for changes to the Form W–2 and

W–3.

.03 For the purpose of this revenue

procedure, a substitute form is one that is

not printed by IRS. A substitute Form

W–2 or W–3 MUST conform to the

specifications in this revenue procedure

to be acceptable to the IRS. Preparers

should also refer to the separate instructions for Forms W–2 and the instructions

on Form W–3 for details on how to complete these forms. See Part C, Sec. 4.01,

for information on obtaining the official

IRS forms and instructions. See Part B,

Sec. 2, for requirements for substitute

forms furnished to employees.

.04 IRS has a centralized call site at the

IRS martinsburg Computing Center

(IRS/MCC) to answer questions related to

information returns (Forms W–2, W–3,

1099, etc.). The Call-Site phone number is

(304) 263-8700 (not a toll-free number).

The number for Telecommunication Device for the Deaf (TDD) is (304) 267-3367

(not a toll-free number). The hours of

operation are Monday through Friday from

8:30 A.M. to 4:30 P.M. eastern time.

.05 IRS maintains a personal computer

based Information Reporting Program

Bulletin Board System (IRP–BBS) at the

IRS Martinsburg Computing Center

(IRS/MCC). This system provides access

to the forms and publications relating to

information returns, news of the latest

changes, the ability to receive answers to

specific questions, access to shareware,

and other features. The IRP–BBS is

available for public use and can be

reached by dialing (304) 264-7070 (not a

toll-free number). The IRP–BBS is

compatible with most modems. For more

information concerning this system, call

IRS/MCC at (304) 263-8700 (not a tollfree number).

.06 Employers are reminded that under

Section 6722 of the Internal Revenue

Code (IRC) they can be assessed a

penalty of $50 per Form W–2 that is not

furnished to an employee on a form acceptable to the IRS (up to $100,000). To

be acceptable to IRS, the Form W–2 must

be either the “official” form or a substitute form with the core data placed exactly as specified in Part B., Section 2.04

May 11, 1998

of this Revenue Procedure. No IRS office

is authorized to allow deviations from this

Revenue Procedure.

.07 This revenue procedure supersedes

Rev. Procs. 97–24 and 97–24A, 1997–16

I.R.B., dated April 21, 1997, and 1997–20

I.R.B., dated May 19, 1997 (Reprinted as

Publication 1141).

SEC. 2. NATURE OF CHANGES

.01 The text and exhibits were updated

for tax year 1998.

.02 Box 15 check boxes for Household Employee and Subtotal were deleted

from the Forms W–2. All employers including household employers must now

file Form W–3 even for a single submission of Forms W–2 thus eliminating the

need for the check box. Also SSA no

longer needs subtotals to process Forms

W–2 allowing the elimination of another

checkbox.

.03 Added sentence at the bottom of

Form W–2 reminding filers not to separate forms, not to staple forms, and not

to send in photocopies,

.04 Added last item to back of instructions on copy C to make filers

aware that Form W–2 should be retained until you start to receive benefits

from SSA. Also employees should confirm their work record with SSA from

time to time.

.05 Added additional boxes to Forms

W–3 just before the signature area for

name of contact person, telephone

number, fax number, and E-Mail address. This was done at SSA’s request

so that they could more easily contact

the filer to resolve any processing problems.

.06 SSA recommended inserting a note

at the bottom of Forms W–3 and just before the W–3 instructions informing the

filer that the entire first page of the Forms

W–3 and the entire first page of the Forms

W–2 should be sent to SSA. Filers are

also informed not to send in any payments

with these forms to SSA.

.07 Deleted the Paper Work Reduction

Act Notice from Form W–3 page 1 as a

space saving measure. The notice information is located inside the Forms W–2

instructions.

.08 The Earned Income Credit notification to employees may now be placed on

the back of copy B or the back of copy C.

See Part B, Section 2.05.5 for new information.

.09 The tax year (1998) must be printed

in non-reflective black ink on copy A of

Form W–2 and Form W–3 using 24 pt

OCR-A font. The forms identification

numbers, e.g., 22222 or 33333, at the top

of the forms must be printed in non-reflective black ink. It is imperative that

SSA’s scanning equipment be able to recognize the form number so that, for example, a Form W–3 is recognized and is not

scanned or keyed as a Form W–2. The

form number (W–3), and the signature

line information on Form W–3, must be

printed in non-reflective black ink. The

word “Form” as well as the form title(s),

e.g., Wage and Tax Statement and Transmittal of Wage and Tax Statements,

should be printed in red OCR drop-out

ink. Tax Year (1998) Copies B,C, and 2

are not required to be 24 pt OCR-A

font (See Part B, Section 2.05.

.10 The Catalog Number, shown on the

1998 Form W–2 as “Cat. No. 10134D”,

and the Catalog Number shown on the

1998 Form W–3 as “Cat No. 10159Y”, is

used for IRS distribution purposes and

should not be printed on substitute Forms

W–3 or W–2 (Copy A or employee copies).

.11 Added information on how forms

can be obtained through computer on-line

services.

.12 Various editorial changes were

made.

SEC. 3. GENERAL RULES FOR

FILING FORMS W–2

.01 Employers MUST use magnetic

media for filing with SSA if they prepare

and file 250 or more 1998 Forms W–2

(Copy A). This requirement applies unless:

1 The employer can establish that filing on magnetic media will result in

undue hardship, AND

2. The employer is granted a waiver of

the requirement by IRS.

To request a waiver of the magnetic

media filing requirement, for the current

tax year only, submit Form 8508, Request

for Waiver From Filing Information Returns on Magnetic Media, to:

If by Postal Service:

Internal Revenue Service

Martinsburg Computing Center

1998–19 I.R.B.

P.O. Box 1359

Martinsburg, WV 25402-1359

Or, if by truck or air freight:

IRS – Martinsburg Computing

Center

Magnetic Media Reporting

Route 9 and Needy Road

Martinsburg, WV 25401.

Forms may also be FAXED to the

IRS/MCC at (304) 264-5602.

Form 8508 may be obtained through

electronic options on the Internet at

http://www.irs.ustreas.gov, or by calling

1-800-829-3676. Form 8508 also may be

obtained directly from the IRS Martinsburg Computing Center (IRS/MCC) at the

above address or by calling (304) 2638700 (not a toll-free number). The number for Telecommunication Device for the

Deaf (TDD) is (304) 267-3367 (not a tollfree number). It is recommended that

completed requests for waivers (Form

8508) be submitted at least 45 days before

but no later than the due date of the return

(see Sec. 3.06, below). The requestor will

receive an approval or denial letter from

IRS, but must allow at least 30 days for

IRS to respond. If you have any questions concerning Form 8508, contact

IRS/MCC at the address or phone number

shown above. Employers who do not

comply with the magnetic media filing requirements for Form W–2 and who are

not granted a waiver may be subject to

certain penalties. Since many states and

local governments accept Form W–2 data

on magnetic media, savings may be obtained if magnetic media is used for filing

with both SSA and state or local governments. In many instances, the state or

local government is willing to accept the

data format specifications set out in SSA’s

Technical Information Bulletin (TIB) No.

4, Magnetic Media Reporting. You must

contact each individual state or local taxing agency to receive approval and make

arrangements to file on magnetic media.

EMPLOYERS WHO FILE FORM

W–2 INFORMATION ON MAGNETIC

MEDIA WITH SSA MUST NOT SEND

THE SAME DATA TO SSA ON PAPER

FORMS W–2. This would result in duplicate reporting and may subject the filer to

an unnecessary contact by the IRS.

.02 TIB–4, Magnetic Media Reporting,

Submitting Annual W–2 Copy A Informa-

1998–19 I.R.B.

tion to the Social Security Administration,

(SSA Pub. No. 42–007, revised Oct.,

1997) contains the specifications and procedures for filing Form W–2 information

on magnetic media with SSA. Specifications for both tape and diskette reporting

for Forms W–2 are included in the TIB-4.

.03 TIB–4 may be obtained by writing

to:

Social Security Administration

OCO, DES

Attn: Employer Reporting Services

Center

300 North Greene Street

Baltimore, MD 21201.

Employers may call their local SSA Magnetic Media Coordinator (MMC) to obtain the TIB–4 (see list of Magnetic

Media Coordinators’ telephone numbers

in the Appendix). The TIB–4 is also on

the SSA Annual Wage Reporting Bulletin

Board System (AWRBBS). The number

for the AWRBBS is (410) 965-1133 (not a

toll-free number). Employers using

magnetic media are cautioned to obtain

the most recent revision of the TIB–4 and

supplements due to possible changes in

the specifications and procedures.

.04 Employers not using magnetic

media must file a paper Copy A of Form

W–2 with SSA on either the IRS printed

official form or a privately printed substitute paper form that exactly meets the

specifications shown in Parts B and C.

.05 Employers can design their own

statements to give to employees. This applies to both employers who file with

SSA either on magnetic media or paper

Forms W–2, Copy A. Employee statements designed by employers must comply with the requirements shown in Parts

B and C, below.

NOTE: Copy A must not be filed on

paper with SSA when the same Form

W–2 information is filed on magnetic

media. Therefore, magnetic media filers who use the official IRS printed

form or any other pre-printed form are

advised not to print Copy A, or to discard a printed Copy A, to prevent duplicate information from being submitted to SSA.

.06 If you are terminating your business, you must provide your employees

with Forms W–2 on or before the due

date of the business filing its final Form

941. Employers must also file Forms

W–2 and W–3 with SSA on or before

the last day of the month following the

due date of the final Form 941. See

Rev. Proc. 96–57, Automatic Extensions

for Forms W–2, Internal Revenue Cumulative Bulletin 1996–2 page 389,

dated 12/30/96, for more information.

Note: Use of a reporting agent or

other third-party payroll service

provider does not relieve an employer

of the responsibility to ensure that tax

and information returns are sent out

and/or filed correctly and on time.

.07 1998 Forms W–2, whether filed on

magnetic media or paper, must be submitted to SSA on or before March 1, 1999.

In addition, the employee copies must be

furnished to the employee on or before

February 1, 1999. If employment ended

before December 31, 1998, the employee

may be furnished his/her copy any time

after employment ends, but no later than

February 1, 1999. However, if the employee requests Form W–2, you must furnish him or her the completed copies

within 30 days of the request or of the

final wage payment, whichever is later.

This requirement is met if the form is

properly addressed, mailed, and postmarked on or before the due date. Failure

to timely file with SSA or to timely provide the employee copies may subject the

employer to penalties. Employers needing additional time to file Form W–2 information (paper or magnetic media) with

SSA may request an extension of time to

file by submitting Form 8809, Request for

Extension of Time to File Information Returns, to the IRS/MCC at the address (or

alternative address) listed in Sec. 3.01,

above. The extension request should be

filed as early as possible, but must be

postmarked no later than the due date of

the forms (March 2, 1999). DO NOT

SEND FORM 8809 TO SSA.

NOTE: APPROVAL OF THE EXTENSION IS NOT AUTOMATIC. Approval

or denial is based on administrative criteria and guidelines. The requestor will receive an approval or denial letter from

IRS and must allow at least 30 days for

IRS to respond. You do not have to wait

for a response before filing your return.

File your return as soon as they are ready.

If you have received a response, do not

send a copy of the letter or Form 8809

with your return. Form 8809 may be obtained through electronic options on the

May 11, 1998

Internet at http://www.irs.ustreas.gov; by

modem to IRIS (703) 321-8020; or by

using the IRS Fax Forms Program (703)

487-4160, or by calling 1-800-829-3676.

You can also contact IRS/MCC (See the

address and phone number in Sec. 3.01,

above).

.08 If requesting extensions of time for

more than 10 employers, IRS encourages

filers to submit the request on tape, tape

cartridge, 5 1⁄4 or 3 1⁄2-inch diskette, or

electronically through the Information

Reporting Program Bulletin Board System (IRP–BBS). Transmitters requesting an extension of time to file more

than 50 payers are required to file the

extension request on magnetic media or

electronically. Transmitters who submit

requests for multiple payers will receive

one approval letter with an attached list of

payers covered under that approval. Publication 1220, Specifications for Filing

Forms 1098, 1099, 5498, and W–2G

Magnetically or Electronically, provides

information on how to file requests for

extensions of time on tape, tape cartridge/quarter inch cartridge, diskette, or

electronically.

NOTE: To file a request for extensions

of time magnetically or electronically

for multiple payers, third party filers

and transmitters, must have an IRS

Transmitter Control Code (Authorization to file information returns).

SEC. 4. GENERAL RULES FOR

FILING FORM W–3

.01 Employers submitting Form W–2

(Copy A) on paper to SSA must send

Forms W–2 with Form W–3.

.02 Form W–3 must be the same width

(7 inches) as the Forms W–2 filed.

.03 Form W–3 should only be used to

transmit paper Forms W–2 (Copy A).

Magnetic media filers do not file Form

W–3. Employers using magnetic media

must transmit Form W–2 data with Form

6559, Transmitter Report and Summary

of Magnetic Media, (and Form 6559-A,

Continuation Sheet for Form 6559, if necessary). These forms may be obtained by

calling either your SSA MMC (see listing

in Appendix) or IRS at 1-800-829-3676.

PART B. REQUIREMENTS FOR

FILING PAPER SUBSTITUTES

May 11, 1998

SEC. 1. REQUIREMENTS FOR

SUBSTITUTE “PRIVATELY

PRINTED” FORMS SUBMITTED TO

SSA (FORMS W–2, COPY A, AND

FORMS W–3)

.01 Employers may file privately

printed substitute Forms W–2 and W–3

with SSA. The substitute form must be

an exact replica of the IRS printed form

(or official reproduction proof) with respect to layout and contents because it

will be read by machine. The Government Printing Office (GPO) symbol must

be deleted (see Sec. 1.16, below). The

specifications and allowable tolerances

for the Copy A of substitute Forms W–2

are provided later in this Revenue Procedure. See Exhibit A for Form W–2 specifications. The specifications for Forms

W–3 are provided in Exhibit B.

.02 Paper for substitute Forms W–2,

Copy A, and Form W–3 (cut sheets and

continuous pinfeed forms) that are to be

filed with SSA must be white 100%

bleached chemical wood, 18–20 pound

paper only, optical character recognition

(OCR) bond produced in accordance with

the specifications shown as follows:

Paper Requirements

1 Acidity: pH value, average,

not less than . . . . . . . . . . . . . . . 4.5

2 Basis Weight 17 ⫻ 22

500 cut sheets . . . . . . . . . . . 18–20

Metric equivalent grams

per. sq. meter . . . . . . . . . . . . 60–75

A tolerance of +5 pct. shall

be allowed.

3 Stiffness: Average, each

direction, not less than

Gurley milligrams —

Cross direction . . . . . . . . . . . . . 50

Machine direction . . . . . . . . . . . 80

4 Tearing Strength: Average,

each direction, not less

than—Grams . . . . . . . . . . . . . . . 40

5 Opacity: Average, not less

than—Percent . . . . . . . . . . . . . . 82

6 Reflectivity: Average not

less than—percent . . . . . . . . . . . 68

7 Thickness:

Average . . . . . . . . . . . inch 0.0038

Metric equivalent . . . . . mm 0.097

A tolerance of ±0.0005 inch

(0.0127mm) shall be allowed.

Paper shall not vary more

than 0.0004 inch (0.012mm)

from one edge to the other.

8 Porosity: Average, not less

than—seconds . . . . . . . . . . . . . . 10

9 Finish (smoothness):

Average, each side—

econds . . . . . . . . . . . . . . . . . 20–55

(For information only, the

Sheffield equivalent

unit . . . . . . . . . . . . . . . . 170–d100

10 Dirt: Average, each side,

not to exceed—Parts

per million . . . . . . . . . . . . . . . . . 8

NOTE: Reclaimed fiber in any percentage is permitted, provided the requirements of this standard are met. DO

NOT USE RECYCLED PAPER.

.03 All printing for Copy A of Forms

W–2 and Form W–3 will be in red OCR

drop-out ink, except as specified below.

1. The identifying control number

‘22222’ (Exhibit C) at the top of Form

W–2 must be printed in non-reflective

black ink.

2. The Form W–2 tax year at the bottom of the form (see Exhibit C) must be

printed in non-reflective black ink.

3. The identifying control number

‘33333’ (Exhibit D) at the top of Form

W–3 must be printed in non-reflective

black ink.

4. The Form W–3 tax year at the bottom of the form (Exhibit D) must be

printed in non-reflective black ink.

5. The form identification at the bottom

‘W–3’ must be printed in non-reflective

black ink (Exhibit D).

All other printing will be in red OCR

drop-out ink meeting, or comparable to,

the specifications in this paragraph. The

OCR drop-out ink for paper Forms W–2,

Copy A, and W–3 is specified as Flint Ink

(formerly Sinclair and Valentine) J-6983

red ink or equivalent. This is the same

ink that is used for Copy A of the Form

1099 series. The use of this is required

for 1998 Forms W–3 and W–2, Copy A.

NOTE: Printing in any other red OCR

drop-out ink must be cleared by contacting Banc-Tech Corp., Attn: Forms Designer & Analyst, P.O. Box 660204,

MS–77, Dallas, TX 75266 (214-5796927—This is a voice mail number.

Leave a message and your call will be returned).

1998–19 I.R.B.

.04 Type must be substantially identical in size and shape with corresponding

type on the official form. The form identifying number MUST be printed in nonreflective black ink using an OCR-A font;

10 characters per inch.

1. On Form W–3 and Copy A of Forms

W–2, all the perimeter rules must be 1point (0.014 inch), while all other rules

must be one-half point (0.007 inch).

2. Vertical rules must be parallel to the

left edge of the form; horizontal rules parallel to the top edge.

.05 Two official Forms W–2 (Copy A),

or one official Form W–3 are contained

on a single page that is 7 inches wide (exclusive of any snap-stubs) by 11 inches

deep. The form identifying control number for the official forms (7 inches wide)

is ‘22222’ (5 digits) for Form W–2 and

‘33333’ (5 digits) for Form W–3. The top

margin for 1998 Forms W–3 and W–2,

Copy A is .375 inch (3/8 inch). The right

margin must be .15 inch and the left margin .35 inch (plus or minus .0313 inch).

The margins are unchanged from 1997.

Margins must be free of all printing. No

printing should appear anywhere near the

Form ID control number (33333, 22222).

For Forms W–2, Copy A, the combination

width of Box a, “Control number”, and

the box containing the form identifying

number (22222) must always be 2.0

inches. For Form W–3, the combined

width of these boxes must always be 2.2

inches.

NOTE: All form identifying numbers are to be printed in non-reflective

black ink, using OCR-A font, printed 10

characters per inch.

.06 The depth of the individual

scannable image on a page must be the

same as that of the IRS printed forms.

For Form W–2, the depth is 4.92 inches

(see Exhibit A). The scannable image

depth of the Form W–3 on a page must be

4.47 inches (see Exhibit B).

.07 The words “Do Not Cut, Staple, or

Separate Forms on This Page” must be

printed in red OCR drop-out ink between

the two Forms W–2 on Copy A only (see

Exhibit A). Perforations are required on

all copies (except Copy A) to enable the

separation of individual forms. Continuous pinfeed Copy A forms must be separated at the page perforation into individual 11” deep pages before submission to

SSA. The pinfeed strips must also be re-

1998–19 I.R.B.

moved. However, the two W–2 documents contained on the 11⬙ deep page

must not be separated.

.08 The words “For Privacy Act and

Paperwork Reduction Act Notice, see

separate instructions”, must be printed

in red OCR drop-out ink on Forms W–2,

Copy A (see Exhibit A for format and location). The Notice has been removed

from the Form W–3, and placed inside

the Forms W–2 Instructions. (See Exhibit B)

.09 The Office of Management and

Budget (OMB) Number must be printed

on each ply of Form W–2 and W–3 (see

Exhibits A and B for format and location).

.10 The section titled “Where to File”

in the general instructions on the employer’s copy of the official Form W–3,

must be printed in its entirety on all substitute Forms W–3 (see Exhibit B).

Household employers filing Forms W–2

for household employees should send the

forms to the same address listed in the

instructions.

Note: Household employers, even

those with only one household employee, must file Form W–3 with Form

W–2. On Form W–3 mark the

“Hshld.” Box in Box b.

.11 The Privacy Act and Paperwork

Reduction Act Notice was deleted from

Form W–3 in the interest of space conservation (see Exhibit B). The Notice was

placed inside the Form W–2 instructions.

.12 Privately printed continuous substitute Forms W–2, Copy A, must be perforated at each 11⬙ page depth. No perforations are allowed between the

individual forms (51⁄2-inch Forms W–2)

on a single copy page of Copy A. Continuous pinfeed Copy A forms must be separated at the page perforation prior to submitting them to SSA. Two Copy A forms

are contained on one page. The two

copies must remain together on the page.

Only the pages are to be separated (burst).

Perforations are required between all the

other individual copies on a page (Copies

1, B, C, 2, and D) included in the set.

.13 The back of a substitute Form

W–2, Copy A, and Form W–3 (page 1)

must be free of all printing.

.14 Spot carbons are NOT permitted

for Copy A of Forms W–2 or for Form

W–3. Interleaved carbon should be black

and must be of good quality to assure leg-

ibility of information on all copies and to

preclude smudging.

.15 Chemical transfer paper is permitted for Form W–2, Copy A, and Form W–3

only if the following standards are met:

1. Only chemically backed paper is acceptable for Copy A.

2. Carbon coated forms are not permitted. Front and back chemically treated

paper cannot be processed properly by

machine.

3. Chemically transferred images must

be black in color.

.16 The GPO symbol must not be

placed on substitute Copy A of Forms

W–2.

.17 The Catalog Number, shown on the

1998 Form W–2 as “Cat. No. 10134D”,

and the Catalog Number shown on the

1998 Form W-3 as “Cat. No. 10159Y”, is

used for IRS distribution purposes and

should not be printed on substitute forms.

SEC. 2. REQUIREMENTS FOR

SUBSTITUTE FORMS FURNISHED

TO EMPLOYEES (COPIES B, C,

AND 2 OF FORMS W–2)

.01 All employers (including those

who file on magnetic media and do not

file a paper Copy A) must furnish employees with at least two copies of the

Forms W–2 (three or more for employees

required to file a state, city, or local income tax return). The dimensions of

these copies (Copies B, C, etc.) but not

Copy A, may be expanded from the dimensions of the official form to allow

space for conveying additional information, such as additional entries required

for Boxes 13 or 14, withholding from pay

for health insurance, union dues, bonds,

charity, etc. The requirement that a maximum of three items are permitted in Box

13 of Form W–2 applies only to the paper

Copy A that is filed with SSA. As long as

sufficient space is provided on the substitute employee copies, as many items as

needed may be placed in Box 13 or Box

14. Also, on these copies (Copies B, C,

etc.), the size of these boxes may be adjusted. (However, see the minimum size

for certain boxes, below). This may permit the employer to eliminate other statements or notices that would otherwise be

furnished to employees.

1. The MAXIMUM allowable dimensions for employee copies of Forms W–2

are:

May 11, 1998

(a) depth should be no more than 6.5

inches;

(b) width should be no more than 8.5

inches.

2. The MINIMUM allowable dimensions for employee copies of Forms W–2

are:

(a) 2.67 inches by 5.0 inches.

(b) horizontal or vertical format is permitted.

NOTE: These minimum and maximum

size specifications are for 1998 only and

may change for future years. The maximum width of 8.5 inches is for employee

copies of Form W–2 only. The width of

the paper Copy A, submitted to SSA, is

specified in Part B, section 1.05 above.

.02 The paper for all copies should be

white. The substitute Copy B (or its

equal), that employees are instructed to

attach to their Federal income tax return,

must be at least 12 pound paper (basis 17

⫻ 22-500), while the other copies furnished the employee should be at least 9pound paper (basis 17 ⫻ 22-500).

.03 Interleaved carbon and chemical

transfer paper for employee copies must

meet the following standards:

1. All copies must be CLEARLY

LEGIBLE;

2. All copies must have the capability to be photocopied; and

3. Fading must not be of such a degree as to preclude legibility and the ability to photocopy.

In general, black chemical transfer inks

are preferred; other colors are permitted

only if the above standards are met.

“Spot carbons” are NOT permitted (See

Part B, Sec. 1.15, above, for standards for

chemical transfer paper for Copy A.)

.04 The following requirements govern

the private printing of employee copies of

Forms W–2. All substitutes must be a

form, which contains boxes, box numbers, and box titles that, where applicable,

match the IRS printed form. Please insure that the employee copy of Forms

W–2 (Copy C) contains the note “ This

information is being furnished to the

Internal Revenue Service. If you are

required to file a tax return, a negligence penalty or other sanction may be

imposed on you if this income is taxable

and you fail to report it.” The placement, numbering, and size of certain

boxes (the “core” information) is specified as follows:

May 11, 1998

1. The items and box numbers that

constitute the core data are:

Box 1 – Wages, tips, other compensation,

Box 2 – Federal income tax withheld,

Box 3 – Social Security Wages/Railroad Retirement Compensation,

Box 4 – Social Security tax withheld/

Railroad Retirement Tax

Withheld,

Box 5 – Medicare wages and tips/Railroad Retirement Tips, and

Box 6 – Medicare tax withheld/Railroad Retirement Tax Withheld.

NOTE: Railroad employees may not be

subject to Social Security coverage but

are subject to Railroad Retirement Tax

Tier I and II coverage. Railroad Compensation employers may make the above

modifications to Forms W–2 but only for

substitute Forms W–2 furnished to employees and not for any Copy A forms to

be filed with SSA.

The “core” boxes must be printed in

the exact order on each line as on the IRS

printed form (see the Exhibits at the end

of this revenue procedure). Boxes 1 and 2

must be next to each other, with Boxes 3

and 4 below on the next line, and Boxes 5

and 6 on the line below Boxes 3 and 4.

2. The block of core data (Boxes 1

through 6) must be placed in the upper

right of the form. Substitute employee

copies of Form W–2, which are printed

using a vertical format with dimensions

smaller than the IRS printed form, may

have the core data entirely on the top of

the form (see Exhibit F). In no instance

will boxes or other information be permitted to the right of the core data. Standard

margins or a small amount of other blank

space may appear to the top or right of

this data. The form title, number, or copy

(Copy B, C, etc.) may be at the top of the

form. Also, a reversed or blocked-out

area to accommodate a postal permit

number or other postal considerations is

permitted at the upper right of the form.

3. Boxes 1 through 6 must each be a

minimum of 1 3/8 inches wide and 1/4

inch deep.

4. Other required boxes:

– Employer identification number

(EIN),

– Employer’s name, address, and ZIP

code,

– Employee’s Social Security number,

and

– Employee’s name, address, and ZIP

code.

These items are required to be present on

the form and must be in boxes similar to

those on the IRS printed form. However,

they may be placed in any location, other

than the top or upper right. The lettering

system used on the IRS printed form (“a”

through “f”) need not be used. The employer’s EIN may be included in the box

for the employer’s name and address. If

this is done, a separate box for the EIN is

not required. The Control number box

(Box “a” on the IRS printed form) is not

required.

5. The Tax Year (1998) MUST be

clearly printed (in non-reflective black

ink) on all copies of substitute Forms

W–2. It is recommended (but not required) that this information be located to

the right of the form title on the lower left

of the Form W–2. The use of 24 pt

OCR-A font is recommended but not

required.

6. If applicable, Social Security tips

MUST be shown separately from Social

Security wages. A separate box is not required unless Social Security tips are to

be reported.

Boxes 1 and 2 on Copy B are required

to be outlined in bold 2-point rule (see

Exhibit E) or highlighted in some manner

to distinguish these boxes.

7. If a box for Advance EIC (Earned

Income Credit) payments (Box 9) is present, the box must be outlined in bold 2point rule or highlighted in some manner

to distinguish this box. However, if no

amounts are paid for Advance EIC, this

box is not required and may be omitted by

printers. Do not use Box 9 for any other

purpose than reporting Advance EIC payments.

8. If Allocated tips (Box 8) are being

reported for the individual employee (or

class of employees that are being provided Forms W–2), it is recommended

(but not required) that this box also be

outlined in bold 2-point rule or highlighted on Copy B. However, if allocated

tips are not being reported, this box may

be omitted by printers.

9. If Form W–2 contains additional

data concerning payroll deductions (e.g.,

saving bonds withholding, retirement

withholding, or payroll savings), there

should be a special highlighting of the

areas pertaining to Federal income tax

1998–19 I.R.B.

withheld; wages, tips, and other compensation; or Advance EIC (Earned Income

Credit) payments that are related to those

items.

10. Employers who are required to report or withhold state income tax information are required to include the following boxes on substitute Forms W–2:

Box 16 - State and Employer’s state

identification (I.D.) number,

Box 17 – State wages, tips, etc., and

Box 18 – State income tax withheld.

11. Employers who are required to report or withhold local income tax information are required to include the following boxes on substitute Forms W–2:

Box 19 – Locality name

Box 20 – Local wages, tips, etc., and

Box 21 – Local income tax.

12. If state or local tax information is

required, this information is also considered “core data.” The state and local information MUST be placed at the bottom

of the form. See the exhibits at the end of

this revenue procedure.

13. Other boxes on the IRS printed

form (Boxes 7 through 15) need not appear on substitute Forms W–2 provided to

employees unless an employer has that

item of information to report to an employee. For example, if an employee did

not have Social Security tips (Box 7), Allocated tips (Box 8), or Advance EIC payments (Box 9), the form could be printed

without these boxes. However, if the employer had provided amounts for dependent care benefits, those amounts would

be required to be reported separately and

shown in a box labeled “Box 10, Dependent care benefits,” as on the IRS printed

form and the exhibits in this revenue procedure.

14. Employers may provide multiple

entries in Box 13, but each entry should

use the same codes as assigned by the IRS

for that type of item. (See Reference

Guide for Box 13 Codes in the 1998 Form

W–2 instructions). For example, employers reporting deferred compensation must

label the box as “13d” and not as “13a”,

even though it is the first or only item to

go in this box. Use the codes shown with

the dollar amount. On Copy A, Form

W–2, do not enter more than three codes

in this box. If more than three items need

to be reported in box 13, use a separate

Form W–2 to report the additional items

(see Multiple Forms in the 1998 Form

1998–19 I.R.B.

W–2 instructions). However, employers

may enter more than three codes in box

13 of Copies 1, 2, B, C, and D of Form

W–2. Do not report in box 13 any items

that are not listed as codes A-T in the

Form W–2 instructions. Do not report the

same Federal tax data to the SSA on more

than one Copy A, Form W–2.

15. For codes D,E,F,G,H, and S, if any

elective deferrals, salary reduction

amounts, or non-elective contributions to

a section 457(b) plan during the year are

make-up amounts under the Uniformed

Service Employment and Reemployment Rights Act of 1994 (USERRA) for

a prior year, you must enter prior year

contributions separately. You must enter

the code, the year, and the amount. For

example, elective deferrals to a section

401(k) plan are reported in box 13 as follows: D–1996–2250.00, D–1997–

1250.00. The 1998 contribution does not

require a year designation, enter it as D

7000.00.

16. If you are a military employer and

provide your employee with basic quarters, subsistence allowances, and combat

zone compensation, report the amount in

Box 13, Form W–2, using code Q.

17. Employers contributions to an employees Medical Savings Account’s

(MSA), must be reported in Box 13, Form

W–2, using code R.

18. An employee elective contribution

to a salary reduction SIMPLE retirement

account must be included in Box 13,

Form W–2, using code S. However, if the

amount is contributed to a SIMPLE that

part of section 401(K) arrangement, that

amount must be reported in Box 13, Form

W–2, using Code D.

19. Amounts paid or expenses incurred

by an employer to or for an employee for

qualified adoption expenses must be

reported in Box 13, Form W–2, using

code T.

20. Employers may use Box 14 for any

other information you want to give your

employee. Please label each item. Examples are union dues, health insurance, premiums deducted, nontaxable income, voluntary after-tax contributions, or

educational assistance payments.

21. If you are reporting prior year payments contributions under USERRA (see

item 15 above), you may report Box 14

make-up amounts for non-elective employer contributions, voluntary after-tax

contributions, required employee contributions, and employer matching contributions. Report such amounts separately for

each year.

.05 Substitute forms for employees

(Copies B, C, and 2 of Forms W–2) must

meet the following requirements:

1. All copies of Forms W–2 must

clearly show the form number, the form

title, and the tax year. The title of Form

W–2 is “Wage and Tax Statement.” It is

recommended (but not required) that this

be located on the bottom left of Form

W–2. The reference to the Department of

the Treasury - Internal Revenue Service

must be on all copies of Form W–2 provided to the employee. It is recommended (but not required) that this be located on the bottom right of Form W–2.

2. If the substitute forms are not labeled as to the disposition of the copies,

then written notification must be provided

to each employee as specified below:

(a) The first copy of the form (Copy

B) is filed with the employee’s Federal

tax return.

(b) The second copy of the form

(Copy C) is for the employee’s records.

(Copy 2) of the form is filed with the employee’s state, city, or local income tax return.

3. If the substitute forms are labeled,

the forms must contain the applicable description:

“Copy B, to be filed with employee’s

Federal tax return,” and “Copy C, for employee’s records.” It is recommended (but

not required) that this be located on the

lower left of Form W–2. The designation

“Form W–2, is recommended (but not required) to be located on the lower left of

Form W–2 and Department of the Treasury - Internal Revenue Service.” It is

recommended (but not required) that this

be located on the lower right of Form

W–2.

4. Instructions similar to those contained on the back of Copies B and C of

the official Form W–2 must be provided

to each employee. Employers may modify or delete certain information in these

instructions (such as modification for employees of railroads to cover Railroad Retirement Tier I and II Compensation and

Taxes). Employers are allowed to delete

instructions that do not apply to the employee. For example, if none of the em-

May 11, 1998

ployees have dependent care benefits

(Box 10), the employer may delete the instructions for that item. Also, if an employer will only be reporting amounts for

a 401(k) plan in Box 13, those instructions may be modified to cover only Section 401(k) contributions.

5. You must notify employees who

have no income tax withheld that they

may be able to claim a tax refund because

of the earned income credit (EIC). You

will meet this notification requirement if

you issue the IRS Form W–2 with the EIC

notice on the back of the employee’s copy

(Copy B), or a substitute Form W–2 with

the same statement. You may also meet

the requirement by providing a substitute

Form W–2 without the EIC notice and

Notice 797, Possible Federal Tax Refund

Due to the Earned Income Credit (EIC),

or your own statement that contains the

same wording. You also may change the

font on Employee Copy C (back page

only) so that the EIC notification and

W–2 instructions may fit entirely on the

back of Copy C. For more information

about notification requirements, see Notice 1015 (formerly Pub. 1325), Employers-Have You Told Your Employees

About the Earned Income Credit (EIC).

NOTE: Printers are cautioned that the

rules set forth here (Part B. Sec. 2) apply

to employee copies (Copies B, C, etc.)

only. Paper filers who send Copy A of

Form W–2 to SSA must follow the requirements in Part B. Sec. 3, below for

those paper submissions.

SEC. 3. GENERAL RULES FOR

FILING “PAPER SUBSTITUTES”

FOR FORMS W–2 AND W–3

.01 Paper substitutes that conform totally to the specifications contained in this

revenue procedure may be privately

printed without the prior approval of the

IRS. Penalties may be assessed for not

complying with the form specifications

set forth in this publication. SUBSTITUTE FORMS THAT DO NOT CONFORM TOTALLY TO THESE SPECIFICATIONS ARE NOT ACCEPTABLE.

This applies to both paper substitutes that

are filed with SSA and those that are

given to employees. Forms should not

be submitted to IRS or SSA for specific

approval. However, if you are uncertain

of any specification set forth herein and

want that specification clarified, you may

May 11, 1998

submit a letter citing the specification in

question, your interpretation of that specification, and an example of how the form

would appear if produced using your understanding of the specification. Any

questions pertaining to Copies B, C, and 2

of Forms W–2 should be sent to:

.07 Copy A of Form W–2 and Form

W–3 must have the form producer’s EIN

entered to the left of “Department of Treasury”.

Internal Revenue Service

ATTN: Substitute Form W–2

Coordinator

T:C:A:C:I,Room C7-443

5000 Ellin Rd.

Lanhan, MD.20706

Any questions pertaining to Copy A,

Form W–2, and Form W–3 should be forwarded to:

Social Security Administration

Data Operations Center

1150 E. Mountain Drive

Attn: Program Analyst Office Room

449

Wilkes-Barre, PA 18702-7997

NOTE: You should allow at least 30 days

for the IRS and SSA to respond.

.02 Forms W–2 and W–3 are subject to

annual review and possible change. Employers are cautioned against overstocking supplies of privately printed substitutes.

.03 Copies of the current year IRS

printed Forms W–2 and W–3 and the instructions for these forms may be obtained through electronic options on the

Internet at http://www.irs.ustreas.gov, or

from most IRS offices or by calling 1800-829-3676. The IRS provides only

cut sheet sets.

.04 Substitute Forms W–2 and W–3

transmitted to SSA should generally contain only data that is required by the Form

W–2, the Form W–2 instructions, and this

revenue procedure.

.05 Substitute Forms W–2, Copy A,

and W–3 are machine imaged and

scanned by Social Security, therefore

these forms must meet the same specifications as Forms W–2 and W–3 produced

by IRS. The vertical and horizontal spacing for all Federal payment and data

boxes on Form W–2 must be in compliance with the specifications contained

herein.

.06 All ballot boxes on Forms W–2,

Copy A (Box 15), and W–3 (Box “b”)

must be 8-point boxes.

NOTE: If a box is marked, more than

50% of the applicable ballot box must be

covered by an “X”.

SEC. 1. INSTRUCTIONS FOR

FORMS PRINTERS

PART C. ADDITIONAL

INSTRUCTIONS

.01 Except as provided below, if magnetic media is not used for filing with

SSA, the substitute copies of Forms W–2

assembly should be arranged in the same

order as the IRS printed Forms W–2.

Copy A should be first, followed sequentially by perforated sets (Copies 1, B, C,

2, and D). The substitute form to be filed

by the employer with SSA must carry the

designation “Copy A.”

NOTE: Magnetic media filers do not

submit Copy A of Form W–2 or Form

W–3. Form 6559 is the transmittal for

magnetic media filed Form W–2 data.

1. It is not a requirement that privately

printed substitute forms contain a copy to

be retained by employers (Copy D). However, employers must be prepared to verify or duplicate this information if it is requested by the IRS or SSA. Paper filers

that do not keep Copy D should be able to

generate a facsimile of Copy A in case of

loss.

2. Except as provided in the arrangement of the official assemblies, additional

copies that may be prepared by employers

shall not be placed ahead of the copy “For

EMPLOYEE’S RECORDS,” Form W–2

(Copy C).

3. Instructions similar to those contained on the back of Copies B and C of

the official form MUST be provided to

each employee. These instructions may

be printed on the back of the substitute

Copy B and C or may be provided to employees on a separate statement. Do not

print these instructions on the back of

copies 1 or 2 that is to be filed with the

employee’s state or local returns.

.02 All privately printed Forms W–3

and Forms W–2 (Copy A), must have the

tax year, form number, and form title

printed on the bottom face of each form

using identical type to that of the official

format. The tax year must be printed in

non-reflective black ink using 24 pt

OCRA-font (copy A), of Forms W–2,

and Forms W–3. The form title, e.g.,

1998–19 I.R.B.

Wage and Tax Statement must be

printed in red OCR drop-out ink on

Form W–2, Copy A, and Form W–3.

The form identifying control number of

Forms W–2 and Form W–3, must be

printed in non-reflective black ink,

using OCRA-font, printed 10 characters per inch. The word “Form” on the

W–2 and W–3 must be printed in red

OCR drop-out ink.

.03 The substitute Form W–2, Copy B,

which employees attach to their Federal

income tax return, must be at least 12pound paper (basis 17 ⫻ 22–500) while

the other copies furnished to employee’s

should be at least 9-pound paper (basis 17

⫻ 22–500).

.04 Employee copies of Forms W–2

(Copies B, C, etc.), including those that

are printed on a single sheet of paper,

MUST be produced so as to be easily separated by the employee. Perforations between the individual copies that are

printed on a single sheet of paper satisfy

this requirement.

.05 The Form W–2, Copy A, and the

OCR bond Form W–3 that are filed with

SSA must have no printing on the reverse

side.

.06 Instructions similar to those provided as part of the official form must be

provided as part of any substitute Form

W–3.

.07 The copy of the substitute Form

W–3 that contains the instructions and is

to be retained by the employer should be

at least 18-pound paper (basis 17 ⫻

22–500).

SEC. 2. INSTRUCTIONS FOR

EMPLOYERS

.01 Only originals or ribbon copies of

Copy A (Forms W–2) and Form W–3 may

be filed with SSA. Carbon copies and

photocopies are not acceptable.

.02 Employers should type or machine

print entries on forms whenever possible

and provide good quality data entries by

using a high quality type face, inserting

data in the middle of blocks that are well

separated from other printing and guidelines, and taking any other measures that

will guarantee clear, sharp images. The

print character size must be no more than

12 characters per inch.Omit dollar signs

but include decimal points for all cents

amounts. The employer must provide a

machine scannable form for Copy A. The

1998–19 I.R.B.

employer must refrain from printing any

data in the top margin of the forms. The

employer must also provide payee copies

(Copies B, C, and 2) that are legible and

capable of being photocopied (by the employee).

.03 The Employer Identification Number (EIN) may be entered in the Employer’s name and address box on Copy A

of Forms W–2 (Box “c” on the IRS printed

Form W–2). If this is done, the EIN need

not be entered in the box provided for the

EIN (Box “b” on the IRS printed Form

W–2). The EIN must be entered in Box

“e” of the Form W–3. Note: EIN entered

on Form W–3 Box “e” must be the same

EIN entered on Forms W–2 Box “b”,

and on Form 941 as well.

.04 The employer’s name, address, and

EIN may be preprinted.

.05 The optional employer’s state

number may be pre-printed in the employer’s name, address, and ZIP code

box. If this is done, the Employer’s state

I.D. Number section in Box 16 of Forms

W–2 need not be completed, as long as

the applicable state taxing authority does

not object. Please check with the appropriate state taxing authority before

doing this.

.06 Generally, an agent that has an approved Form(s) 2678, Employer Appointment of Agent, should enter its name as

the employer in Box c of Form W–2, and

file one Form W–2. However, if the agent

is acting as an agent for two or more employers, or is an employer and is acting as

an agent for another employer, and pays

social security wages in excess of the

wage base to an individual, special reporting for payments to that individual is

needed. The agent should file separate

Forms W–2 reflecting the wages paid by

each employer. Box “c” of Form W–2

should include name of agent, agent for

(name of employer), and address of agent.

Each Form W–2 should reflect the EIN of

the agent in Box “b”. In addition the employer’s EIN should be shown in Box “h”

of Form W–3.

.07 The preparation and filing instructions for Forms W–2 are contained in the

1998 Instructions for Form W–2. The

preparation and filing instructions for

Form W–3 are contained as part of the

1998 Form W–3 snap set assembly.

.08 To avoid confusion and questions

by employees, employers are encouraged

to delete the following items from the employee copies of Forms W–2 that are provided to employees:

1 Form identifying number (e.g.,

22222);

2 The word “void” and associated box

3 Any other captions or box number

that would not be of any informational

use to employees (unless otherwise required).

.09 Employers should use the IRS supplied label when filing Form W–3 with

SSA. The label should be placed inside

the brackets printed in Boxes “e” and “f”.

SEC. 3. OFFICE OF MANAGEMENT

AND BUDGET (OMB)

REQUIREMENTS FOR SUBSTITUTE

FORMS

.01 The Paperwork Reduction Act requires: (1) OMB approval of IRS tax

forms, (2) that each form (all copies)

show the OMB approval number and,

when appropriate, the form’s expiration

date, and (3) that the form (or its instructions) state why IRS is collecting the information, how we will use it and whether

it must be given to us. The official IRS

form (or instructions) will contain this information.

.02 As it applies to substitute IRS

forms, this means:

1. All substitute forms (all copies)

must show the OMB number as it appears

on the official IRS printed form (see Exhibits A and B).

2. The OMB number must be in one of

the following formats:

OMB No. 1545-0008 (preferred),

OMB # 1545-0008

3. You must inform the users of your

substitute forms of the reasons for IRS

collection, use, and requirements, as

stated in the instructions for the official

IRS form.

Sec. 4. FORMS and PUBLICATIONS

.01 Electronic access to IRS tax forms,

instructions, publications, and other tax

data is available through the following:

Modem: IRIS at FedWorld (703)

321-8020

Technical questions regarding FedWorld can be directed to the FedWorld

help desk 24 hours a day at (703) 4874608.

May 11, 1998

Internet: Telnet - iris.irs.ustreas.gov

FTP - ttp.irs.ustreas.gov

WWW - http://www.irs.ustreas.gov

Fax Forms: (703) 487-4160

.02 Over 100 of the most requested

forms and instructions may be obtained

via your fax machine. Just call (703) 4874160 from the telephone connected to

your fax machine.

.03 A CD-ROM containing over 2,000

tax forms, instructions, and publications

may be purchased from the Government

May 11, 1998

Printing Office (GPO), Superintendent of

Documents (Supt. Docs.). Current tax

year materials, and tax forms from 1991

and publications from 1994, are included

on the disc. To order the CD-ROM, contact Supt. Docs. At (202) 512-1800 (select

Option #1), or by computer through

GPO’s Internet Web Site (http;//www.

access.gpo.gov/su docs).

.04 List of Social Security Administrations Magnetic Media Coordinators is included in the Appendix.

Sec. 5 EFFECT ON OTHER REVENUE

PROCEDURES

.01 Rev. Procs. 97–24 and 97–24A,

I.R.B. 1997–16, dated April 21, 1997, and

I.R.B. 1997–20, dated May 19, 1997,

(Reprinted as Publication 1141, Revised

4–97), is superseded.

1998–19 I.R.B.

May 11, 1998

1998–19 I.R.B.

May 11, 1998

1998–19 I.R.B.

May 11, 1998

1998–19 I.R.B.

May 11, 1998

Part IV. Items of General Interest

Foundations Status of Certain

Organizations

Announcement 98–37

The following organizations have

failed to establish or have been unable to

maintain their status as public charities or

as operating foundations. Accordingly,

grantors and contributors may not, after

this date, rely on previous rulings or designations in the Cumulative List of Organizations (Publication 78), or on the presumption arising from the filing of notices

under section 508(b) of the Code. This

listing does not indicate that the organizations have lost their status as organizations described in section 501(c)(3), eligible to receive deductible contributions.

Former Public Charities. The following

organizations (which have been treated as

organizations that are not private foundations described in section 509(a) of the

Code) are now classified as private foundations:

Hospice of the Heart Inc., Whitney, TX

Hot Rod Hundley Foundation, Salt Lake

City, UT

Hot Springs Documentary Film Festival,

Hot Springs, AR

Hugs Inc., Paulsboro, NJ

Human Touch, Kansas City, MO

Humane Society of Van Buren County,

Spencer, TN

Humanitarian Aid for Ethiopia,

Washington, DC

Humanities Corporation, Phoenix, AZ

Hundred Club of Alvin, Alvin, TX

Hundred Club of Greater Charleston Inc.,

Charleston, SC

Hungarian Baptist Union of Romania

Incorporated, Dallas, TX

Hunterdon County Housing Corporation,

W. Orange, NJ

Huntsville Firefighters Retirees

Association Inc., Huntsville, AL

Hurricane Andrew Relief Association of

IRS Employees, Plantation, FL

Hurricane Proof and Flood Resistant

Housing Foundation, Houston, TX

Hutchinson Archives Inc., Hutchinson,

Hyde County Childrens Center Inc.,

Engelhard, NC

Hydrocephalus Association of

Philadelphia, Philadelphia, PA

May 11, 1998

Hytowl Inc., Chicago, IL

Jireh Development Corporation,

Cincinnati, OH

Joe Wibel III Memorial Scholarship

Fund, Crossville, TN

Joedy P. Hendrix Jr. Ministries Inc.,

Checotah, OK

Joeys Shelter Inc., Atlanta, GA

John & Lisa Mcdaniel Ministries Inc.,

Memphis, TN

John Christian Charity Trust Inc.,

Pittsburgh, PA

Johnson County Fire Training

Association Inc., Cleburne, TX

Johnson Volunteer Fire Department,

Ellisville, MS

Jr Pantherettes, Newark, OH

Just Because Inc., Arvada, CO

Just for the Kids of N P C Inc., Danville,

Justice Building Inc., Corpus Christi, TX

Juvenile Officers Association of

Michigan & Ontario, Detroit, MI

Juvenile Awareness in Law Enforcement

and Life Inc., Lithonia, GA

Kent County Central Committee, Grand

Rapids, MI

Kentucky Baptist Disaster Relief

Southeastern Region, Barbourville,

Kentucky Center To Prevent Gun

Violence, Prospect, KY

Kentucky Educational Fund for Handicap

Children Inc., Frankfort, KY

Kentucky High School Junior All Stars

Inc., Madisonville, KY

Kentucky Homeless Shelter Inc., Detroit,

Kentucky Recycling Association Inc.,

Independence, KY

Kentucky Refugee Ministries Inc.,

Louisville, KY

Kentucky Society of Healthcare Planning

and Marketing Inc., Louisville, KY

Kerr County Sheriffs Reserve, Kerrville,

Kids for Education, Dearborn Heights,

Kids Like Me of Johnson County,

Shawnee Mission, KS

Kids Network Inc., Superior, WI

Kids Unlimited, Tucson, AZ

Kings Ambassadors Inc., Argyle, TX

Kings Kids Day Care Inc., Gardner, KS

Kingston Township Raiders Junior

Football Inc., Shavertown, PA

Kingston Youth League, Chillicothe, OH

Kiwanis Club of Longmont Foundation,

Longmont, CO

Kiwanis Club of Sarasota Sunrise

Foundation Inc., Sarasota, FL

Kiwanis Park Inc., Irvine, KY

Knightlife Inc., Memphis, TN

Knights of Christ Inc., Clarksville, IN

Knoxville Concert Band, Knoxville, TN

Knoxville Fall Baseball League,

Knoxville, TN

Koala Lebanon Alumni Association Inc.,

Lebanon, IN

Koinonia Agape Ministries Inc., Orlando,

Koinonia House of Jackson County,

Jackson, MI

Kokopelli Notes, Asheville, NC

Korean American Citizens Coalition,

Chicago, IL

Korner Klub Inc., Hillsboro, WI

KPCH Inc., Winston Salem, NC

Krewe of Christmas Inc., New Orleans,

Life Choice Mission Inc., Cocoa Beach,

Life Conservation Inc., Atlanta, GA

Life Cycle of Indiana Inc., Indianapolis,

Life Education Network of Florida Inc.,

Maitland, FL

Life Giver Inc. of Hampton Roads,

Virginia Beach, VA

Life Line Ministries Inc., Lafayette, LA

Life Rescue Mission, Norristown, PA

Life Styles Inc., Hoisington, KS

Life Transition Therapy Institute, Santa

Fe, NM

Lifeline Ministries, Marshall, MN

Light Club No. 2 Inc., Jacksonville, TX

Lighthouse Childrens Home and

Ministries Inc., Fort Valley, GA

Lil Pardners Child Care and Learning

Center Inc., Terrell, TX

Lima Area Parkinson Support Group Inc.,

Lima, OH

Lincoln County Band Boosters of the

Lincoln County Bands, Stanford, KY

Living Alternatives Inc., Tyler, TX

Living Alternatives of Jacksonville Inc.,

Jacksonville, TX

Living Faith Group A Member Group of

Alcoholics Anonymous, Austin, TX

Living Sanctuary of Faith, Broadview, IL

Lloyd E Collins Scholarship Fund,

Danbury, NC

1998–19 I.R.B.

Lo-Tech Research & Development Inc.,

St. Petersburg, FL

Los Barrios Unidos Health Foundation,

Dallas, TX

Los-Islenos Heritage & Cultural Society,

Violet, LA

Los Ninos Inc., Albuquerque, NM

Losers Inc., Kennesaw, GA

Lost Pines Industries, Cedar Creek, TX

Lotus Production Company Inc., Kansas

City, MO

Louisiana Cancer Coalition, Baton

Rouge, LA

Louisiana Feed-a-Meal Inc., Ruston, LA

Louisiana Oilmans Charity Invitational

Inc., New Orleans, LA

Love for Children of Clark County,

Jeffersonville, IN

Love Inc. of Bradley County Tennessee,

Cleveland, TN

Love the People Inc., Bozeman, MT

Love To Serve Incorporated, Chicago, IL

Loveland Police Dept. Racing Team,

Loveland, CO

Low Income Housing Foundation of New

Mexico Inc., Albuquerque, NM

Lower 9th Ward Coalition Inc., New

Orleans, LA

Lower Woodville Youth Development

Club, Natchez, MS

LRGS Educational Foundation Inc.,

Baker, WV

Lt. Ben Benjamin O. Davis Jr. Chapter

Tuskegee Airmen, Box Elder, SD

Luis H. Garcia Memorial Scholarship

Fund Inc., Trenton, NJ

Luther Heights Inc., Bettendorf, IA

Lutheran Bears Football Association Inc.,

Saginaw, MI

Lutheran Social Services of the Greater

Charleston Area, N. Charleston, SC

Luthern Family Services of Tennessee,

Knoxville, TN

Lycoming Animal Protection Society

Inc., Montoursville, PA

Lydia Rose Hummel-Dosmann

Educational Foundation Inc.,

Milwaukee, WI

Lyman Adult Foster Care, Detroit, MI

Lyme Disease Institute Inc., Cape

Girardeau, MO

Michael E. Griffith Memorial

Foundation, Inc., Copperas Cove, TX

Michigan Black Shell Service Station

Dealers, Detroit, MI

Michigan Chiropractic Foundation, East

Lansing, MI

1998–19 I.R.B.

Michigan Environmental Trust Ltd,

Bloomfield Hills, MI

Michigan Theatre Center Inc., Detroit,

Mid-Del Food Pantry Inc., Midwest City,

Mississippi Junior Chamber of Source

Foundation, Inc., Meridian, MS

Mississippi Writers Association Inc.,

Jackson, MS

Missoula on Ice Inc., Missoula, MT

Missouri Valley Historical Society,

Bismarck, ND

Missouri Valley Tennis E&R Foundation,

Kansas City, MO

MNI SOSE Water Rights Coalition,

Rapid City, SD

Mobile Beauty-N-Massage Inc., Dallas,

Mobile City Relief, Memphis, TN

Mohave Literacy Council Incorporated,

Fort Mohave, AZ

Moms Day Care Center, St. Thomas, VI

Montgomery Dancers Unlimited, Mt.

Carbon, WV

Montrose Community Foundation,

Montrose, MI

Monumental Rifle & Pistol Club-Junior

Division Incorporated, Clarksville, MD

Moon Hut, Boulder, CO

Mount Pocono Sports Complex Fund

Committee, Inc., Mt. Pocono, PA

Mountain State Art and Craft Fair

Scholarship and Grant Fund, Kenna,

Mount Sneffels Education Foundation,

Ridgway, CO

Mount Zion Fellowship Inc., New Bern,

Mountain Meadow Ranch Bible Camp,

Phoenix, AZ

Mt. St. Alban Independent Scholastic

Newspaper, Inc., Washington, DC

Mt. Vernon Optimist Youth BaseballSoftball, Inc., Mt. Vernon, IL

Multi-Cultural Initiatives Alliance, St.

Paul, MN

Muslimat Al Nissa Jamiyatt Inc., Atlanta,

Mustard Seed Ministries Inc.,

Springfield, IL

My Brothers Keeper Ministry Keepers

Inn, Youngstown, OH

My Friends House Inc., College Park,

My Life Development Corps, Decatur,

Neighborhood Senior Center Inc., New

Orleans, LA

Neighborhood Visions Inc., Kansas City,

Neolaia of Pasco Inc., Holiday, FL

New Hanover Adolescent Health

Council, Incorporated, Wilmington,

New Hope Baptist Ministries of Summit

County-Akron, OH, Akron, OH

New Hope Boys Ranch Inc., Overton, TX

New Hope for Tomorrow Foundation,

Columbus, OH

New Hope Housing Ministries Inc.,

Hudsonville, MI

New Horizons Community Services Inc.,

Prescott Valley, AZ

New Life Programs Inc., Dawsonville,

New Mexico Clogging Association,

Albuquerque, NM

New Mexico Elite Volleyball Club,

Albuquerque, NM

New Mexico National Guard Historical

Foundation, Inc., Santa Fe, NM

New Mexico Open Land Trust, Santa Fe,

New Mexico State D A R E Board, Santa

Fe, NM

New Orleans Technology Council

Corporation, New Orleans, LA

New World Foundation Inc., Miami, FL

O. J. Esquivel Foundation, Kingsville,

Oak Cliff Christian Housing Inc., Dallas,

Oak Grove Missions to Russia,

Poplarville, MS

Oconto Falls Area School Age Child Care

Inc., Oconto Falls, WI

Oconto Falls Partners in Education Inc.,

Oconto Falls, WI

Odessa Pony League, Odessa, MO

Ofallon Community Center Inc., Ofallon,

Office of Black and Minority Health for

the State of Wisconsin, Glendale, WI

Ohio Entrepreneurship Association,

Reynoldsburg, OH

Ohio Eta Foundation of Sigma Phi

Epsilon, Cincinnati, OH

Ohio Leadership Institute Inc., Ironton,

Ohio Psychiatric Nurses Network,

Cleveland, OH

Ohio Schools Development Corporation,

Columbus, OH

May 11, 1998

Ohio Valley Harvest Inc., Wheeling,

Oki Wildlife Cooperative, Pleasant Plain,

Oklahoma Association of Resource

Conservation & Development

Councils, Burns Flat, OK

Oklahoma Association of Scholars,

Oklahoma City, OK

Oklahoma Special Rescue Team Inc.,

Duncan, OK

Oklahoma Tamil Sangam, Oklahoma

City, OK

Oklahoma Toxics Campaign Fund Inc.,

Oklahoma City, OK

Okmulgee Art Guild Inc., Okmulgee, OK

Olathe Sister Cities Association Inc.,

Olathe, KS

Old Camp Meeting Ministries, Arlington,

Old East Dallas Renaissance Project,

Dallas, TX

Old Fourth Ward Redevelopment Inc.,

Atlanta, GA

Old Mill Hill Society Inc., Trenton, NJ

Old Neighborhood Rehab Inc.,

Springfield, IL

Old Rockport Inc., Rockport, IN

Oldham County Heritage Farm and

Branch Museum of Vega Texas Inc.,

Vega, TX

Olive Gardens Development Corporation

Inc., Brinly, AR

Omaha South High School Alumni

Association, Omaha, NE

Omega Kappa Kappa Gamma

Educational Foundation, Leawood, KS

One Love Inc., Savannah, GA

One Veterans Crusade for Christ Inc.,

Green Cove Springs, FL

One World Now Inc., Houston, TX

Onslow Arts & Crafts Association,

Jacksonville, NC

Open Air Recovery Productions Inc.,

Seminole, FL

Open Door Health Clinic Inc., Frankfort,

Open Door Theater Inc., Ft. Wayne, IN

Opera Piccola, Arlington, VA

Operation Education Incorporated,

Plainsboro, NJ

Operation Fresh Start, Columbus, OH

Operation Luz de Sol Incorporated,

Washington, DC

Operation Orphan Wildlife

Rehabilitation, Akron, OH

Operation Playground, Crystal Lake, IL

Operation Reach Out, Detroit, MI

May 11, 1998

Orange County Radio Amateurs

Incorporated, Chapel Hill, NC

Orchard Manor Resident Management

Corporation, Charleston, WV

Organico Institute Corporation, Ashland,

Orion Institute, Salt Lake City, UT

Orlando Wheelchair Games Inc.,

Orlando, FL

Orthopaedic Research Foundation Inc.,

Fayetteville, AR

Osage Community Day School Inc.,

Aurora, CO

Osceola County Intergroup of Alcoholics

Anonymous, St. Cloud, FL

Osprey Baseball Alumni Club, Savannah,

Others Inc., Atlanta, GA

Ottawa Kiwanis Retirement Community

Inc., Ottawa, OH

Our Children in the Courts Foundation,

Chicago, IL

Our Daily Bread of Bradenton Inc.,

Bradenton, FL

Our Industries, San Marcos, TX

Our Jobs Our Children Our Future Inc.,

Huntington, WV

Our Little Angels Inc., Lebanon, IN

Outreach Community Services Inc., Lake

Providence, LA

Outreach Ministries Inc., Green Forest,

Owen County Art Guild Inc., Spencer,

Owensboro Metropolitan Parks

Foundation Inc., Owensboro, KY

Owl Feather War Bonnet Womens

Resource Center, St. Francis, SD

Ozark Alternative Crop Education

Training and Promotion Association

Inc., Searcy, AR

Ozarks 285 Amateur Radio Club,

Clarksville, AR

If an organization listed above submits

information that warrants the renewal of its

classification as a public charity or as a private operating foundation, the Internal

Revenue Service will issue a ruling or determination letter with the revised classification as to foundation status. Grantors and

contributors may thereafter rely upon such

ruling or determination letter as provided

in section 1.509(a)–7 of the Income Tax

Regulations. It is not the practice of the

Service to announce such revised classification of foundation status in the Internal

Revenue Bulletin.

Loans to Plan Participants;

Correction

Announcement 98–38

AGENCY: Internal Revenue Service,

Treasury.

ACTION: Correction to a notice of proposed rulemaking.

SUMMARY: This announcement contains corrections to the notice of proposed

rulemaking (REG–209476–82 [1998–8

I.R.B. 36]), which was published in the

Federal Register Friday, January 2, 1998

(63 F.R. 42), relating to loans made from

a qualified employer plan to plan participants or beneficiaries.

FOR FURTHER INFORMATION CONTACT: Vernon Carter (202) 622-6070

(not a toll-free number).

SUPPLEMENTARY INFORMATION:

Background

The notice of proposed rulemaking that

is the subject of these corrections is under

sections 72(p) of the Internal Revenue

Code.

Need for Correction

As published, REG–209476–82 contains errors which may prove to be misleading and are in need of clarification.

Correction of Publication

Accordingly, the publication of the notice of proposed rulemaking (REG–

209476–82), which was the subject of F.R.

Doc. 97–33983, is corrected as follows:

1. On page 43, column 2, in the preamble under the paragraph heading “Explanation of Provisions”, the first full paragraph in the column, line 18, the language

“However, a special rule applies if a plan”

is corrected to read “In addition, a special

rule applies if a plan”.

2. On page 43, column 2, in the preamble under the paragraph heading “Explanation of Provisions”, the first full paragraph in the column, line 26, the language

“increase in basis thereafter is less than”

is corrected to read “increase in basis

thereafter (e.g., from after-tax contribution) is less than”.

Cynthia E. Grigsby,

Chief, Regulations Unit,

Assistant Chief Counsel (Corporate).

1998–19 I.R.B.

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 ap-

plies 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 Procedral 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.

1998–19 I.R.B.

May 11, 1998

Numerical Finding List1

Proposed Regulations:

Revenue Rulings—Continued

Bulletins 1998–1 through 1998–18

PS–158–86, 1998–11 I.R.B. 13

REG–100841–97, 1998–8 I.R.B. 30

REG–102144–98, 1998–15 I.R.B. 25

REG–102894–97, 1998–3 I.R.B. 59

REG–104062–97, 1998–10 I.R.B. 34

REG–104537–97, 1998–16 I.R.B. 21

REG–104691–97, 1998–11 I.R.B. 13

REG–105163–97, 1998–8 I.R.B. 31

REG–109333–97, 1998–9 I.R.B. 9

REG–109704–97, 1998–3 I.R.B. 60

REG–110965–97, 1998–13 I.R.B. 42

REG–115795–97, 1998–8 I.R.B. 33

REG–119449–97, 1998–10 I.R.B. 35

REG–120200–97, 1998–12 I.R.B. 32

REG–120882–97, 1998–14 I.R.B. 25

REG–121755–97, 1998–9 I.R.B. 13

REG–208299–90, 1998–16 I.R.B. 26

REG–209276–87, 1998–11 I.R.B. 18

REG–209322–82, 1998–15 I.R.B. 26

REG–209373–81, 1998–14 I.R.B. 26

REG–209463–82, 1998–4 I.R.B. 27

REG–209476–82, 1998–8 I.R.B. 36

REG–209484–87, 1998–8 I.R.B. 40

REG–209485–86, 1998–11 I.R.B. 21

REG–209682–94, 1998–17 I.R.B. 20

REG–209807–95, 1998–8 I.R.B. 40

REG–243025–96, 1998–18 I.R.B. 18

REG–251502–96, 1998–9 I.R.B. 14

98–4, 1998–2 I.R.B. 18

98–5, 1998–2 I.R.B. 20

98–6, 1998–4 I.R.B. 4

98–7, 1998–6 I.R.B. 6

98–8, 1998–7 I.R.B. 24

98–9, 1998–6 I.R.B. 5

98–10, 1998–10 I.R.B. 11

98–11, 1998–10 I.R.B. 13

98–12, 1998–10 I.R.B. 5

98–13, 1998–11 I.R.B. 4

98–14, 1998–11 I.R.B. 4

98–15, 1998–12 I.R.B. 6

98–16, 1998–13 I.R.B. 18

98–17, 1998–13 I.R.B. 21

98–18, 1998–14 I.R.B. 22

98–19, 1998–15 I.R.B. 5

98–20, 1998–15 I.R.B. 8

98–21, 1998–18 I.R.B. 7

98–23, 1998–18 I.R.B. 5

Announcements:

98–1, 1998–2 I.R.B. 38

98–2, 1998–2 I.R.B. 38

98–3, 1998–2 I.R.B. 38

98–4, 1998–4 I.R.B. 31

98–5, 1998–5 I.R.B. 25

98–6, 1998–5 I.R.B. 25

98–7, 1998–5 I.R.B. 26

98–8, 1998–6 I.R.B. 96

98–9, 1998–7 I.R.B. 35

98–10, 1998–7 I.R.B. 35

98–11, 1998–8 I.R.B. 42

98–12, 1998–8 I.R.B. 43

98–13, 1998–8 I.R.B. 43

98–14, 1998–8 I.R.B. 44

98–15, 1998–10 I.R.B. 36

98–16, 1998–9 I.R.B. 17

98–17, 1998–9 I.R.B. 16

98–18, 1998–10 I.R.B. 44

98–19, 1998–10 I.R.B. 44

98–20, 1998–11 I.R.B. 25

98–21, 1998–11 I.R.B. 26

98–22, 1998–12 I.R.B. 33

98–23, 1998–12 I.R.B. 34

98–24, 1998–12 I.R.B. 35

98–25, 1998–13 I.R.B. 43

98–26, 1998–14 I.R.B. 28

98–27, 1998–15 I.R.B. 30

98–28, 1998–15 I.R.B. 30

98–29, 1998–16 I.R.B. 48

98–30, 1998–17 I.R.B. 38

98–32, 1998–17 I.R.B. 39

98–33, 1998–17 I.R.B. 39

98–34, 1998–17 I.R.B. 39

98–35, 1998–17 I.R.B. 40

98–36, 1998–18 I.R.B. 18

Notices:

98–1, 1998–3 I.R.B. 42

98–2, 1998–2 I.R.B. 22

98–3, 1998–3 I.R.B. 48

98–4, 1998–2 I.R.B. 25

98–5, 1998–3 I.B.R. 49

98–6, 1998–3 I.R.B. 52

98–7, 1998–3 I.R.B. 54

98–8, 1998–4 I.R.B. 6

98–9, 1998–4 I.R.B. 8

98–10, 1998–6 I.R.B. 9

98–11, 1998–6 I.R.B. 18

98–12, 1998–5 I.R.B. 12

98–13, 1998–6 I.R.B. 19

98–14, 1998–8 I.R.B. 27

98–15, 1998–9 I.R.B. 8

98–16, 1998–15 I.R.B. 12

98–17, 1998–11 I.R.B. 6

98–18, 1998–12 I.R.B. 11

98–19, 1998–13 I.R.B. 24

98–20, 1998–13 I.R.B. 25

98–21, 1998–15 I.R.B. 14

98–22, 1998–17 I.R.B. 5

98–23, 1998–18 I.R.B. 9

98–24, 1998–17 I.R.B. 5

98–25, 1998–18 I.R.B. 11

98–26, 1998–18 I.R.B. 14

98–27, 1998–18 I.R.B. 14

Revenue Procedures:

98–1, 1998–1 I.R.B. 7

98–2, 1998–1 I.R.B. 74

98–3, 1998–1 I.R.B. 100

98–4, 1998–1 I.R.B. 113

98–5, 1998–1 I.R.B. 155

98–6, 1998–1 I.R.B. 183

98–7, 1998–1 I.R.B. 222

98–8, 1998–1 I.R.B. 225

98–9, 1998–3 I.R.B. 56

98–10, 1998–2 I.R.B. 35

98–11, 1998–4 I.R.B. 9

98–12, 1998–4 I.R.B. 18

98–13, 1998–4 I.R.B. 21

98–14, 1998–4 I.R.B. 22

98–15, 1998–4 I.R.B. 25

98–16, 1998–5 I.R.B. 19

98–17, 1998–5 I.R.B. 21

98–18, 1998–6 I.R.B. 20

98–19, 1998–7 I.R.B. 30

98–20, 1998–7 I.R.B. 32

98–21, 1998–8 I.R.B. 27

98–22, 1998–12 I.R.B. 11

98–23, 1998–10 I.R.B. 30

98–24, 1998–10 I.R.B. 31

98–25, 1998–11 I.R.B. 7

98–26, 1998–13 I.R.B. 26

98–27, 1998–15 I.R.B. 15

98–28, 1998–15 I.R.B. 14

98–29, 1998–15 I.R.B. 22

98–30, 1998–17 I.R.B. 6

98–32, 1998–17 I.R.B. 11

98–34, 1998–18 I.R.B. 15

Treasury Decisions:

8740, 1998–3 I.R.B. 4

8741, 1998–3 I.R.B. 6

8742, 1998–5 I.R.B. 4

8743, 1998–7 I.R.B. 26

8744, 1998–7 I.R.B. 20

8745, 1998–7 I.R.B. 15

8746, 1998–7 I.R.B. 4

8747, 1998–7 I.R.B. 18

8748, 1998–8 I.R.B. 24

8749, 1998–7 I.R.B. 16

8750, 1998–8 I.R.B. 4

8751, 1998–10 I.R.B. 23

8752, 1998–9 I.R.B. 4

8753, 1998–9 I.R.B. 6

8754, 1998–10 I.R.B. 15

8755, 1998–10 I.R.B. 21

8756, 1998–12 I.R.B. 4

8757, 1998–13 I.R.B. 4

8758, 1998–13 I.R.B. 15

8759, 1998–13 I.R.B. 19

8760, 1998–14 I.R.B. 4

8761, 1998–14 I.R.B. 13

8762, 1998–14 I.R.B. 15

8763, 1998–15 I.R.B. 5

8764, 1998–15 I.R.B. 9

8765, 1998–16 I.R.B. 11

8766, 1998–16 I.R.B. 17

8767, 1998–16 I.R.B. 4

Revenue Rulings:

98–1, 1998–2 I.R.B. 5

98–2, 1998–2 I.R.B. 15

98–3, 1998–2 I.R.B. 4

1 A cumulative list of all revenue rulings, revenue

procedures, Treasury decisions, etc., published in

Internal Revenue Bulletins 1997–27 through

1997–52 will be found in Internal Revenue Bulletin

1998–1, dated January 5, 1998.

May 11, 1998

1998–19 I.R.B.

Finding List of Current Action on

Previously Published Items1

Bulletins 1998–1 through 1998–18

Revenue Procedures:

91–59

Updated and superseded by

98–25, 1998–11 I.R.B. 7

94–16

Modified and superseded by

98–22, 1998–12 I.R.B. 11

93–62

Modified and superseded by

98–22, 1998–12 I.R.B. 11

95–35

95–35A

Superseded by

98–19, 1998–7 I.R.B. 30

96–29

Modified and superseded by

98–22, 1998–12 I.R.B. 11

97–1

Superseded by

98–1, 1998–1 I.R.B. 7

97–2

Superseded by

98–2, 1998–1 I.R.B. 74

97–3

Superseded by

98–3, 1998–1 I.R.B. 100

97–4

Superseded by

98–4, 1998–1 I.R.B. 113

97–5

Superseded by

98–5, 1998–1 I.R.B. 155

97–6

Superseded by

98–6, 1998–1 I.R.B. 183

97–7

Superseded by

98–7, 1998–1 I.R.B. 222

97–8

Superseded by

98–8, 1998–1 I.R.B. 225

97–21

Superseded by

98–2, 1998–1 I.R.B. 74

97–26

Obsoleted by

98–28, 1998–15 I.R.B. 14

97–53

Superseded by

98–3, 1998–1 I.R.B. 100

Revenue Rulings:

75–17

Supplemented and superseded by

98–5, 1998–2 I.R.B. 20

92–19

Supplemented in part by

98–2, 1998–2 I.R.B. 15

1 A cumulative finding list for previously published

items mentioned in Internal Revenue Bulletins

1997–27 through 1997–52 will be found in Internal

Revenue Bulletin 1998–1, dated January 5, 1998.

1998–19 I.R.B.

May 11, 1998

Notes

May 11, 1998

1998–19 I.R.B.

INTERNAL REVENUE BULLETIN

The Introduction on page 3 describes the purpose and content of this publication. The weekly Internal Revenue Bulletin is sold

on a yearly subscription basis by the Superintendent of Documents. Current subscribers are notified by the Superintendent of

Documents when their subscriptions must be renewed.

CUMULATIVE BULLETINS

The contents of this weekly Bulletin are consolidated semiannually into a permanent, indexed, Cumulative Bulletin. These are

sold on a single copy basis and are not included as part of the subscription to the Internal Revenue Bulletin. Subscribers to the weekly Bulletin are notified when copies of the Cumulative Bulletin are available. Certain issues of Cumulative Bulletins are out of print

and are not available. Persons desiring available Cumulative Bulletins, which are listed on the reverse, may purchase them from the

Superintendent of Documents.

HOW TO ORDER

Check the publications and/or subscription(s) desired on the reverse, complete the order blank, enclose the proper remittance,

detach entire page, and mail to the Superintendent of Documents, U.S. Government Printing Office, Washington, DC 20402. Please

allow two to six weeks, plus mailing time, for delivery.

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