Bulletin No. 1999–21

Internal Revenue

bulletin

Bulletin No. 1999–21

May 24, 1999

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

ADMINISTRATIVE

Rev. Rul. 99–24, page 3.

Rev. Proc. 99–24, page 8.

Low-income housing credit; satisfactory bond; “bond

factor” amounts for the period April through June

1999. This ruling announces the monthly bond factor

amounts to be used by taxpayers who dispose of qualified

low-income buildings or interests therein during the period

April through June 1999.

Notice 99–26, page 4.

General rules and specifications for private printing of

substitute Forms W-2 and W-3. Specifications are set

forth for the private printing of paper substitutes for tax year

1999 Form W-2, Wage and Tax Statement, and Form W-3,

Transmittal of Wage and Tax Statements. Rev. Proc. 98–33

superseded.

Electricity produced from certain renewable resources; calendar year 1999 inflation adjustment factor and reference prices. This notice announces the calendar year 1999 inflation adjustment factor and reference

prices for the renewable electricity production credit under

section 45 of the Code.

Rev. Proc. 99–25, page 24.

EMPLOYEE PLANS

Notice 99–27, page 4.

Notice 99–28, page 8.

Weighted average interest rate update. The weighted

average interest rate for May 1999 and the resulting permissible range of interest rates used to calculate current liability

for purposes of the full funding limitation of section 412(c)(7)

of the Code are set forth.

Magnetic Media/Electronic Filing Program; Form

1040NR. Participants in the Magnetic Media/Electronic Filing Program for Form 1040NR, U.S. Nonresident Alien Income Tax Return, are informed of their obligations to the

Service, taxpayers, and other participants. Rev. Proc.

98–36 superseded.

Comments are requested on the interpretation of section

1203 of the Internal Revenue Service Restructuring and Reform Act of 1998. Section 1203 provides generally that IRS

employees must be terminated from federal employment if

they violate certain rules in connection with the performance

of their official duties, absent mitigation by the Commissioner. Comments should be submitted by June 30, 1999.

Notice 99–29, page 8.

EXEMPT ORGANIZATIONS

Announcement 99–54, page 32.

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

Finding Lists begin on page 36.

Department of the Treasury

Internal Revenue Service

Innocent spouse equitable relief. The date for providing

comments on Notice 98–61, 1998–51 I.R.B. 13, is extended to June 30, 1999. Notice 98–61 provides interim

guidance for taxpayers seeking equitable relief from federal

tax liability under section 6015(f) or 66(c) of the Code.

Mission of the Service

and by applying the tax law with integrity and fairness to

all.

Provide America’s taxpayers top quality service by helping them understand and meet their tax responsibilities

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 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.

This part includes notices of proposed rulemakings, disbarment and suspension lists, and announcements.

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.

2

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

Section 42.—Low-Income

Housing Credit

Rev. Rul. 99–24

Low-income housing credit; satisfactory bond; “bond factor” amounts for

the period April through June 1999.

This ruling announces the monthly bond

factor amounts to be used by taxpayers

who dispose of qualified low-income

buildings or interests therein during the

period April through June 1999.

In Rev. Rul. 90–60, 1990–2 C.B. 3, the

Internal Revenue Service provided guidance to taxpayers concerning the general

methodology used by the Treasury Department in computing the bond factor

amounts used in calculating the amount of

bond considered satisfactory by the Secretary under § 42(j)(6) of the Internal

Revenue Code. It further announced that

the Secretary would publish in the Internal Revenue Bulletin a table of “bond factor” amounts for dispositions occurring

during each calendar month.

This revenue ruling provides in Table 1

the bond factor amounts for calculating

the amount of bond considered satisfactory under § 42(j)(6) for dispositions of

qualified low-income buildings or interests therein during the period April

through June 1999.

Table 1

Rev. Rul. 99–24

Monthly Bond Factor Amounts for Dispositions Expressed

As a Percentage of Total Credits

Calendar Year Building Placed in Service

or, if Section 42(f)(1) Election Was Made,

the Succeeding Calendar Year

Month of

Disposition

1987

1988

1989

1990

Apr ’99

May ’99

Jun ’99

45.71

45.71

45.71

60.18

60.18

60.18

75.06

75.06

75.06

For a list of bond factor amounts applicable to dispositions occurring during

other calendar years, see the following

revenue rulings: Rev. Rul. 98–3, 1998–2

I.R.B. 4, for dispositions occurring during

the calendar years 1996 and 1997; Rev.

Rul. 98–13, 1998–11 I.R.B. 4, for dispositions occurring during the period January

through March 1998; Rev. Rul. 98–31,

1998–25 I.R.B. 4, for dispositions occurring during the period April through June

1998; Rev. Rul. 98–45, 1998–38 I.R.B. 4,

for dispositions occurring during the period July through September 1998; Rev.

Rul. 99–1, 1999–2 I.R.B. 4, for dispositions occurring during the period October

through December 1998; and Rev. Rul.

99–18, 1999–14 I.R.B. 3, for dispositions

occuring during the period January

through March 1999.

1999–21 I.R.B.

1991

1992

1993

1994

76.82

79.83

76.60

76.39

79.60

79.38

83.22

82.97

82.73

86.70

86.44

86.18

90.11 93.55 97.27 101.15 105.33 107.43

89.83 93.26 96.96 100.81 104.97 107.43

89.56 92.97 96.66 100.51 104.65 107.43

DRAFTING INFORMATION

The principal author of this revenue

ruling is Gregory Doran of the Office of

Assistant Chief Counsel (Passthroughs

and Special Industries). For further information regarding this revenue ruling, contact Mr. Doran on (202) 622-3040 (not a

toll-free call).

1995

1996

1997

1998

1999

Section 6061.—Signing of

Returns and Other Documents

26 CFR 1.6061–1: Signing of returns and other

documents by individuals.

For the requirements for participants in the Magnetic Media/Electronic Filing Program for Form

1040NR, see Rev. Proc. 99–25, page 24.

Section 6012.—Persons

Required to Make Returns of

Income

26 CFR 1.6012–5: Composite return in lieu of

specified form.

For the requirements for participants in the Magnetic Media/Electronic Filing Program for Form

1040NR, see Rev. Proc. 99–25, page 24.

3

May 24, 1999

Part III. Administrative, Procedural, and Miscellaneous

Renewable Electricity

Production Credit, Publication of

Inflation Adjustment Factor and

Reference Prices for Calendar

Year 1999

Notice 99–26

This notice publishes the inflation adjustment factor and reference prices for

calendar year 1999 for the renewable

electricity production credit under § 45(a)

of the Internal Revenue Code. The 1999

inflation adjustment factor and reference

prices are used in determining the availability of the credit. The 1999 inflation

adjustment factor and reference prices

apply to calendar year 1999 sales of kilowatt-hours of electricity produced in the

United States or a possession thereof from

qualified energy resources.

BACKGROUND

Section 45(a) provides that the renewable electricity production credit for any

tax year is an amount equal to the product

of 1.5 cents multiplied by the kilowatthours of specified electricity produced by

the taxpayer and sold to an unrelated person during the tax year. This electricity

must be produced from qualified energy

resources and at a qualified facility during the 10-year period beginning on the

date the facility was originally placed in

service.

Section 45(b)(1) provides that the

amount of the credit determined under

§ 45(a) is reduced by an amount that bears

the same ratio to the amount of the credit

as (A) the amount by which the reference

price for the calendar year in which the

sale occurs exceeds 8 cents bears to (B) 3

cents. Under § 45(b)(2), the 1.5 cents in

§ 45(a) and the 8 cents in § 45(b)(1) are

each adjusted by multiplying the amount

by the inflation adjustment factor for the

calendar year in which the sale occurs.

Section 45(c)(1) defines qualified energy resources as wind and closed-loop

biomass. Section 45(c)(3) defines a qualified facility as any facility owned by the

taxpayer that originally is placed in service after December 31, 1993 (December

31, 1992, in the case of a facility using

closed-loop biomass to produce electricity), and before July 1, 1999.

May 24, 1999

Section 45(d)(2)(A) requires the Secretary to determine and publish in the Federal Register each calendar year the inflation adjustment factor and the reference

prices for the calendar year. The inflation

adjustment factor and the reference prices

for the 1999 calendar year were published

in the Federal Register on May 3, 1999,

(84 Fed. Reg. 23729).

Section 45(d)(2)(B) defines the inflation adjustment factor for a calendar year

as the fraction the numerator of which is

the GDP implicit price deflator for the

preceding calendar year and the denominator of which is the GDP implicit price

deflator for the calendar year 1992. The

term “GDP implicit price deflator” means

the most recent revision of the implicit

price deflator for the gross domestic product as computed and published by the Department of Commerce before March 15

of the calendar year.

Section 45(d)(2)(C) provides that the

reference price is the Secretary’s determination of the annual average contract

price per kilowatt hour of electricity generated from the same qualified energy resource and sold in the previous year in the

United States. Only contracts entered

into after December 31, 1989, are taken

into account.

tiplied by the inflation adjustment factor,

the phaseout of the credit provided in §

45(b)(1) does not apply to electricity produced from wind or closed-loop biomass

energy resources sold during calendar

year 1999.

CREDIT AMOUNT

As required by § 45(b)(2), the 1.5¢

amount in § 45(a)(1) is adjusted by multiplying such amount by the inflation adjustment factor for the calendar year in

which the sale occurs. If any amount as

increased under the preceding sentence is

not a multiple of 0.1¢, such amount is

rounded to the nearest multiple of 0.1¢.

Under the calculation required by

§ 45(b)(2), the renewable electricity production credit for calendar year 1999 is

1.7¢ per kilowatt hour on the sale of electricity produced from closed-loop biomass and wind energy resources.

DRAFTING INFORMATION

CONTACT

The principal author of this notice is

David A. Selig of the Office of Assistant

Chief Counsel (Passthroughs and Special

Industries). For further information regarding this notice contact Mr. Selig at

(202) 622-3040 (not a toll-free call).

INFLATION ADJUSTMENT FACTOR

AND REFERENCE PRICES

The inflation adjustment factor for calendar year 1999 is 1.1269. The reference

prices for calendar year 1998 are 4.836

cents per kilowatt-hour for facilities producing electricity from wind energy resources and 0 cents per kilowatt-hour for

facilities producing electricity from

closed-loop biomass energy resources.

The reference price for electricity produced from closed-loop biomass, as defined in § 45(c)(2), is based on a determination under § 45(d)(2)(C) that in

calendar year 1998 there were no sales of

electricity generated from closed-loop

biomass energy resources under contracts

entered into after December 31, 1989.

PHASE-OUT CALCULATION

Because the 1999 reference prices for

electricity produced from wind and

closed-loop biomass energy resources do

not exceed 8 cents per kilowatt hour mul-

4

Termination of Employment for

Misconduct; Request for Public

Comments

Notice 99–27

SECTION I. PURPOSE

Section 1203 of the Internal Revenue

Service Restructuring and Reform Act of

1998 (the “RRA”) provides generally that

IRS employees must be terminated from

Federal employment if they violate certain rules in connection with the performance of their official duties. The statute

also allows the Commissioner to mitigate

the sanction of termination. This Notice

requests public comments on the proper

interpretation of section 1203.

SECTION II. BACKGROUND

The basic rules governing disciplinary

actions against federal civilian employees

1999–21 I.R.B.

are set forth in Chapter 75 of Title 5 of the

United States Code. In general, these

rules permit discipline, up to and including termination of employment, to be imposed for such cause as will promote the

efficiency of the federal service. Agencies generally have discretion as to

whether to impose disciplinary action and

as to the form and severity of the action to

be imposed, based upon the facts and circumstances of the situation. Most agency

decisions concerning the imposition of

discipline are subject to review by parties

outside the agency, e.g., in arbitration or

by an appeal to the Merit Systems Protection Board.

RRA section 1203 made significant

changes in these general rules as applied

to IRS employees. Specifically, section

1203 provides that an IRS employee must

be terminated from employment if there

is a final administrative or judicial determination that the employee violated any

of the rules set forth in sections

1203(b)(1)–(10) in the performance of official duties. In addition, section 1203(c)

of the statute provides that the Commissioner may decide to take a personnel action other than removal if certain mitigating factors are present; however, this

decision may only be made by the Commissioner personally and is not subject to

review in any administrative or judicial

proceeding. The full text of section 1203

is attached at Appendix A.

SECTION III. INTERPRETATION OF

SECTION 1203

The Internal Revenue Service requests

comment with respect to the following

matters under RRA section 1203:

A. Existing personnel law and procedures will be applied in interpreting section 1203, unless explicitly provided otherwise. For example, current procedural

requirements of personnel law, including

advance written notice, an opportunity for

an oral and written reply, and a right to

appeal the substance of the charges, will

be provided employees who are subject to

discipline under section 1203.

B. The current personnel law definition of

“employee” will be applied in interpreting

section 1203. Section 1203 is triggered

with respect to “any employee” of the

IRS. In implementing section 1203, the

IRS will apply the definition of “em-

1999–21 I.R.B.

ployee” in 5 U.S.C. 2105, that is, an individual who is appointed in the civil service, engaged in the performance of a Federal function under authority of law, and

subject to the supervision of an individual

already appointed in the civil service

while engaged in the performance of the

duties of the position. As a consequence

of this definition, and since section 1203

applies only to acts or omissions of an employee of the IRS, any acts or omissions

that occurred prior to the individual becoming an “employee” of the IRS would

not be within the scope of section 1203.

C. Acts or omissions of IRS employees

committed “in the performance of the

employee’s official duties” include only

those acts or omissions listed under section 1203(b) that have a nexus to an employee’s position in the IRS. To establish

nexus, a clear and direct relationship must

be demonstrated between the act or omission of the employee that constitutes the

grounds for the employee’s removal and

either the employee’s ability to accomplish his or her duties satisfactorily or

some other legitimate governmental interest promoting the “efficiency of the service,” as required by 5 U.S.C. 7513(a).

See, Doe v. Hampton, 566 F.2d 265, 272

(D.C. Cir. 1977).

Example 1. While at home after duty hours, an

IRS employee becomes involved in a physical argument with his neighbor. The neighbor sues the employee for assault and battery and a court finds the

employee liable for civil assault and battery. Is the

agency mandated to terminate the employment of

the employee pursuant to section 1203?

Answer. No. Section 1203 is triggered

only with respect to acts or omissions

committed in the performance of the employee’s official duties. Under the facts

presented here, the IRS employee’s conduct was off-duty conduct having no connection to the IRS. Therefore, the civil

judgment finding the employee liable for

assault and battery on his neighbor would

not fall under section 1203(b)(5). Additionally, the assault and battery was not

“on a taxpayer, taxpayer representative, or

other employee of the IRS,” as is required

by section 1203(b)(5). See F. for a discussion of the meaning of taxpayer and

taxpayer representative.

Example 2. A taxpayer tells the Internal Revenue

Agent who is auditing the taxpayer that the Agent is

incompetent. While off duty, the Agent sees the taxpayer at a restaurant and tells him that he did not ap-

5

preciate the comment. The Agent pushes the taxpayer. A court finds the Agent liable for civil assault

and battery. Is the agency required to terminate the

employment of the employee pursuant to section

1203?

Answer. Yes. Under the facts presented, the physical altercation, while occurring off-duty, resulted from the

Agent’s interaction as an IRS employee

with the taxpayer. Thus, the Agent’s off

duty conduct has a nexus, or a clear and

direct relationship, to the efficiency of the

service. Therefore, the civil judgment

finding the employee liable for civil assault and battery would fall within the

scope of section 1203(b)(5).

D. Acts or omissions of Internal Revenue

Service employees will be subject to the

discipline prescribed by section 1203 only

if those acts are taken, or those omissions

are made, with some degree of intent.

Some of the acts or omissions specified

in section 1203 that are subject to the discipline prescribed by that section appear

to be based upon standards that are found

in the Internal Revenue Code (IRC).

Thus, section 1203 (b)(8) mandates removal of an IRS employee whose “failure

to file any return of tax required under the

Internal Revenue Code . . . on or before

the date prescribed therefor” was “willful.” This language mirrors that found in

IRC section 7203. Similarly, section

1203 (b)(9) mandates removal of an employee whose “understatement of Federal

tax liability” was “willful.” This language implicates concepts found in IRC

section 7201. The IRS will employ standards similar to those applicable to these

IRC provisions in implementing sections

1203(b)(8) and 1203(b)(9). To support an

action under either of these sections, the

IRS must prove by a preponderance of the

evidence that the IRS employee’s act or

omission was a voluntary, intentional violation of a known legal duty.

Section 1203(b)(1) requires removal of an

IRS employee who willfully fails to obtain

signatures on documents authorizing the

seizure of certain types of property. Section 1203(b)(7) requires removal of employees who engage in “willful” misuse of

IRC section 6103 “for the purpose of concealing information from a congressional

inquiry.” In order to support an action

under either of these provisions, the IRS

must prove by a preponderance of the evidence that the employee’s act or omission

May 24, 1999

was made with actual knowledge of the

failure to comply with, or with a reckless

disregard of, the requirements for obtaining approval signatures or for disclosing

information in response to a congressional

inquiry, as the case might be.

E. A final administrative or judicial determination pursuant to section 1203(a) is

a determination concerning an individual

in a proceeding in which the individual is

granted full rights to participate as a party

to the action or proceeding. Such a determination becomes final when:

(1) if a judicial proceeding, all appeals

have been exhausted or, if no appeals are

taken, the time for all appeals has expired;

or

(2) if an administrative proceeding:

(i) all appeals have been exhausted,

or if no appeals are taken, the time for all

appeals has expired, or

(ii) a disciplinary decision is made

by the deciding official at the conclusion

of a process that included an advance

written notice to the individual of the proposed action to be taken.

Example 1. A finding is made in an EEO case

that an IRS employee has been discriminated against

in violation of Title VII of the Civil Rights Act of

1964. Is the finding of discrimination a final administrative determination such that section 1203(a)

would require the removal of all IRS employees

whose conduct may have contributed to the finding

of discrimination?

Answer. No. Equal Employment Opportunity cases are filed against the

agency, and not against specific individual

employees. Therefore, IRS employees,

other than the complainant, are not parties

to the proceeding, and consequently are

not afforded the opportunity to submit evidence or to call or cross-examine witnesses. The finding in the EEOC decision

concerning discrimination is not a final

administrative determination within the

meaning of section 1203 with respect to

IRS employees whose conduct may have

contributed to the finding.

However, in every case in which there

is a finding of discrimination, the finding

will be reviewed by the Office of the National Director, EEO and Diversity, pursuant to specific procedures established

by the IRS. These procedures will require

that the Office of the National Director,

EEO and Diversity, determine whether to

refer the matter to the appropriate office

for further action. If management makes a

May 24, 1999

determination that any employee committed an act or omission within the coverage

of section 1203(b), the employee will be

issued advance written notice of the proposal to remove the employee from the

IRS. The statutory and regulatory requirements of Title 5, United States Code, and

Title 5, Part 752, Code of Federal Regulations (CFR), must be followed in terminating the employment of the employee

under section 1203. Moreover, the final

decision to remove the employee from the

IRS is subject to appeal, such as to the

Merit Systems Protection Board (MSPB).

While the employee may challenge the

charges, a reviewing body may not mitigate the adverse action of removal if the

facts establish a violation of section 1203.

Example 2. An IRS employee files a formal

complaint of discrimination, alleging that his manager has retaliated against him by giving him a low

performance evaluation because of the employee’s

prior EEO activity. The case is settled, and a settlement agreement is signed. Is this a final administrative determination that the manager has violated section 1203(b)?

Answer. No. A settlement agreement is

not a determination that discrimination

has occurred. Further, the manager was

not a party to the discrimination complaint process or to the settlement agreement. The parties are the agency and the

employee alleging discrimination. Therefore, the analysis set forth in Example 1 is

also applicable to this situation.

In addition, cases in which an allegation of discrimination is raised, but there

is no finding or settlement, will be referred to an appropriate office to determine whether there should be further

action.

F. “Taxpayer,” “taxpayer representative,”

and “person” will have the following

meanings:

A “taxpayer” means any person subject

to any internal revenue law, and with respect to whom an act or omission is undertaken because of that person’s status as

a taxpayer.

A “taxpayer representative” means any

person who acts in a representative capacity to a taxpayer, and with respect to

whom an act or omission is undertaken

because of that person’s status as a representative of a taxpayer.

A “person” includes an individual,

trust, estate, partnership, association,

company or corporation.

6

Example 1. An IRS employee is stopped by a police officer for speeding. The employee tells the police officer that he will be audited if the employee

receives a ticket. The police officer does not have

an open, ongoing dispute with the IRS. Does the

employee’s conduct come within the scope of section 1203(b)(10)?

Answer. Yes. The definition of taxpayer does not require that the person

have an ongoing dispute with the IRS.

The police officer fits the definition of a

taxpayer since the employee’s conduct is

directed toward the police officer because

that officer is subject to the internal revenue laws. Additionally, the purpose of

the IRS employee’s conduct was to extract personal gain or benefit. Based on

these facts, a nexus would also exist (see

C. above).

Example 2. A taxpayer service representative is

driving her car and sees an empty parking spot. Before the taxpayer service representative can pull into

that parking space, another driver parks her car

there. Unknown to the employee, the other person

represents taxpayers. The employee, unable to control her anger, shoves the taxpayer representative

and is eventually criminally convicted of assault and

battery. Does the employee’s conduct come within

the ambit of section 1203(b)(5)?

Answer. No. The employee’s conduct,

although directed against someone who

represents a taxpayer, was not directed

against that individual because she represents a taxpayer. The employee did not

know the individual represented taxpayers, and even if she had known, her conduct toward the representative was unrelated to that individual’s capacity as a

representative. Therefore, the employee’s

conduct does not constitute an assault and

battery upon a taxpayer representative.

G. The false statement referred to in subsection 1203(b)(2) must be with respect to

a material matter involving a taxpayer or

taxpayer representative, as those terms

are defined in F. To be material, the false

statement must be one that would have a

natural tendency to influence, or be capable of influencing, a decision on the matter involving a taxpayer or taxpayer representative.

Example 1. A Revenue Agent intentionally

falsely states under oath that a taxpayer had shown

him receipts to document a particular deduction

when he had not seen any such receipts. Is this false

statement within the coverage of section

1203(b)(2)?

Answer. Yes. The Revenue Agent’s

false sworn statement that the taxpayer

1999–21 I.R.B.

had shown him receipts to document a

particular deduction would have a natural

tendency to influence, or the capacity to

influence, a decision on the matter involving the taxpayer or taxpayer representative. Thus, it is within the coverage of

section 1203(b)(2).

Example 2. A Revenue Officer is being questioned about his use of annual leave. The Revenue

Officer provides a statement to the Treasury Inspector General for Tax Administration, under oath, in

which he intentionally falsely states that he was at

the office all day each of the prior six Fridays. Is

this false statement within the coverage of section

1203(b)(2)?

Answer. No. The Revenue Officer’s

false statement to the Treasury Inspector

General for Tax Administration does not

have a natural tendency to influence, or

the capacity to influence, a decision on a

matter involving a taxpayer or taxpayer

representative. Therefore, it would not be

within the coverage of section 1203(b)(2).

However, even though the IRS would not

be required to terminate the employment

of the Revenue Officer pursuant to section 1203(b)(2), the IRS may discipline

the Revenue Officer up to and including

termination from Federal service.

H. Section 1203 applies only to acts or

omissions occurring on or after July 22,

1998. This position is based on existing

law regarding the retroactivity of civil

statutes. See, Taylor v. Rubin, No. 97–

2398 (W.D. LA Sept. 21, 1998). In general, where statutory provisions are substantive, in that they create new rights or

impair vested rights, impose new duties,

or attach new disabilities regarding past

transactions, as opposed to merely procedural provisions, the rule is that the provision will not apply retroactively absent a

clear congressional intent otherwise.

Landgraf v. USI Film Products, 114 S.Ct.

1483 (1994) (holding that punitive and

compensatory damages provision of the

1991 Civil Rights Act amending Title VII

did not apply retroactively to a case that

was pending when the statute was enacted, since there was not clear congressional intent concerning retroactivity).

See also Hughes Aircraft Co. v. U.S. Ex

Rel. Schumer, 117 S.Ct. 1871, 1876

(1997) (The Court affirmed the “timehonored” presumption against giving

retroactive effect to legislation unless

Congress had clearly manifested its intent

1999–21 I.R.B.

to the contrary, holding that a 1986

amendment to the qui tam statute which

would deprive defendant of a defense, did

not apply retroactively).

SECTION IV. COMMENTS

Comments are requested on the matters

discussed in this notice and on any other

provisions of section 1203. Comments

should be submitted by June 30, 1999.

Written comments may be submitted to

the Internal Revenue Service, P.O. Box

7604, Ben Franklin Station, Attention:

CC:DOM:CORP:R (Notice 99–27),

Room 5226, Washington, DC 20044.

Submissions may be hand-delivered between the hours of 8 a.m. and 5 p.m. to:

CC:DOM:CORP:R (Notice 99–27),

Courier’s Desk, Internal Revenue Service, 1111 Constitution Avenue NW,

Washington, DC. Alternatively, taxpayers

may submit comments electronically via

the Internet by selecting the “Tax Regs”

option on the IRS Home Page, or by submitting comments directly to the IRS Internet site at: http://www.irs.ustreas.gov/

prod/tax_regs/comments.html

Comments will be available for public

inspection and copying.

For further information regarding this

notice, contact Lee Patton of the Office of

Associate Chief Counsel (Finance &

Management), General Legal Services

Division, at 202-283-7900 (not a toll-free

call).

APPENDIX A

SEC. 1203. TERMINATION OF

EMPLOYMENT FOR

MISCONDUCT

(a) IN GENERAL.—Subject to subsection (c), the Commissioner of Internal

Revenue shall terminate the employment

of any employee of the Internal Revenue

Service if there is a final administrative or

judicial determination that such employee

committed any act or omission described

under subsection (b) in the performance

of the employee’s official duties. Such

termination shall be a removal for cause

on charges of misconduct.

(b) ACTS OR OMISSIONS.—The acts

or omissions referred to under subsection

(a) are–

(1) willful failure to obtain the required approval signatures on documents

7

authorizing the seizure of a taxpayer’s

home, personal belongings, or business

assets;

(2) providing a false statement under

oath with respect to a material matter involving a taxpayer or taxpayer’s representative;

(3) with respect to a taxpayer, taxpayer representative, or other employee

of the Internal Revenue Service, the violation of–

(A) any right under the Constitution of the United States; or

(B) any civil right established

under–

(i) title VI or VII of the Civil

Rights Act of 1964;

(ii) title IX of the Education

Amendments of 1972;

(iii) the Age Discrimination in

Employment Act of 1967;

(iv) the Age Discrimination Act

of 1975;

(v) section 501 or 504 of the

Rehabilitation Act of 1973; or

(vi) title I of the Americans with

Disabilities Act of 1990;

(4) falsifying or destroying documents to conceal mistakes made by any

employee with respect to a matter involving a taxpayer or taxpayer representative;

(5) assault or battery on a taxpayer,

taxpayer representative, or other employee of the Internal Revenue Service,

but only if there is a criminal conviction,

or a final judgment by a court in a civil

case, with respect to the assault or battery;

(6) violations of the Internal Revenue

Code of 1986, Department of Treasury

regulations, or policies of the Internal

Revenue Service (including the Internal

Revenue Manual) for the purpose of retaliating against, or harassing, a taxpayer,

taxpayer representative, or other employee

of the Internal Revenue Service;

(7) willful misuse of the provisions

of section 6103 of the Internal Revenue

Code of 1986 for the purpose of concealing information from a congressional inquiry,

(8) willful failure to file any return of

tax required under the Internal Revenue

Code of 1986 on or before the date prescribed therefor (including any extensions), unless such failure is due to reasonable cause and not to willful neglect,

(9) willful understatement of Federal

tax liability, unless such understatement is

May 24, 1999

due to reasonable cause and not to willful

neglect, and

(10) threatening to audit a taxpayer

for the purpose of extracting personal

gain or benefit.

(c) DETERMINATION OF COMMISSIONER.—

(1) IN GENERAL.—The Commissioner of Internal Revenue may take a

personnel action other than termination

for an act or omission under subsection

(a).

(2) DISCRETION.—The exercise of

authority under paragraph (1) shall be at

the sole discretion of the Commissioner

of Internal Revenue and may not be delegated to any other officer. The Commissioner of Internal Revenue, in his sole discretion, may establish a procedure which

will be used to determine whether an individual should be referred to the Commissioner of Internal Revenue for a determination by the Commissioner under

paragraph (1).

(3) NO APPEAL.—Any determination of the Commissioner of Internal Revenue under this subsection may not be appealed in any administrative or judicial

proceeding.

(d) DEFINITION.—For purposes of

the provisions described in clauses (i),

(ii), and (iv) of subsection (b)(3)(B), references to a program or activity receiving

Federal financial assistance or an educational program or activity receiving Federal financial assistance shall include any

program or activity conducted by the Internal Revenue Service for a taxpayer.

Weighted Average Interest Rate

Update

Notice 99–28

Notice 88–73 provides guidelines for

determining the weighted average interest

rate and the resulting permissible range of

Month

Year

Weighted

Average

May

1999

6.07

Drafting Information

The principal author of this notice is

Todd Newman of the Employee Plans Division. For further information regarding

this notice, call (202) 622-6076 between

2:30 and 3:30 p.m. Eastern time (not a

toll-free number). Mr. Newman’s number

is (202) 622-8458 (also not a toll-free

number).

Equitable Relief from Joint and

Several Liability

Notice 99–29

This notice extends the date for providing comments on Notice 98–61, 1998–51

I.R.B. 13 (December 21, 1998), regarding

the interim procedures for taxpayers seeking equitable relief from federal tax liability under § 6015(f) or 66(c) of the Internal

Revenue Code, as added by § 3201(a) of

the Internal Revenue Service Restructuring and Reform Act of 1998, Pub. L. 105–

206, 112 Stat. 685 (July 22, 1998) (RRA).

May 24, 1999

interest rates used to calculate current liability for the purpose of the full funding

limitation of § 412(c)(7) of the Internal

Revenue Code as amended by the Omnibus Budget Reconciliation Act of 1987

and as further amended by the Uruguay

Round Agreements Act, Pub. L. 103-465

(GATT).

The average yield on the 30-year Treasury Constant Maturities for April 1999 is

5.55 percent.

The following rates were determined

for the plan years beginning in the month

shown below.

90% to 105%

Permissible

Range

90% to 110%

Permissible

Range

5.46 to 6.38

5.46 to 6.68

Written comments on these interim procedures should be submitted to the Service

by June 30, 1999.

General Rules for Filing and

Specifications for the Private

Printing of Substitute Forms

W-2 and W-3

26 CFR 601.602: Tax forms and instructions.

(Also Part I, sections 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, 31.6091–1.)

Rev. Proc. 99–24

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

8

W-3, Transmittal of Wage and Tax Statements, for amounts paid during the 1999

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.

.02 Forms W-2 and W-3 have only

minor changes for 1999. Please see “Nature of Changes” (Section 2, below) and

the exhibits at the end of this revenue procedure for changes to Forms W-2 and

W-3.

.03 For the purpose of this revenue

procedure, a substitute form is one that is

not printed by the IRS. A substitute

Form W-2 or W-3 MUST conform to

the specifications in this revenue procedure to be acceptable to the IRS. No

IRS office is authorized to allow deviations from this revenue procedure. Preparers should also refer to the separate instructions for Forms W-2 and 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 in-

1999–21 I.R.B.

structions. 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 This revenue procedure supersedes

Rev. Proc. 98–33, 1998–19 I.R.B., dated

May 11, 1998. (Reprinted as Publication

1141).

SEC. 2. NATURE OF CHANGES

.01 The text and exhibits were updated

for tax year 1999.

.02 Eliminated pages 2 and 3 of Form

W-3 including the second copy titled

“YOUR COPY”.

.03 Box 13 of Form W-3 has been

opened to allow third-party payers of sick

pay to enter “Third-Party Sick Pay

Recap” therein.

.04 Added additional information to the

bottom of Form W-3. The “Purpose of

Form” and “When To File” information

has been added, and “Need Help?” information has been deleted and is now located in the 1999 Instructions for Forms

W-2/W-3.

.05 Added reference to extended due

date for electronically filed forms W-2.

.06 Various editorial changes were

made.

SEC. 3. GENERAL RULES FOR

FILING PAPER FORMS W-2

.01 Employers MUST use magnetic

media or electronic for filing with the

SSA if they prepare and file 250 or more

1999 Forms W-2 (Copy A). This requirement applies unless:

1. The employer can establish that filing on magnetic media or electronically

will result in undue hardship, AND

2. The employer is granted a waiver of

the requirement by the IRS.

To request a waiver of the magnetic

media or electronic filing requirement, for

the current tax year only, submit Form

8508,

1999–21 I.R.B.

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

If by Postal Service:

Internal Revenue Service

Martinsburg Computing Center

230 Murall Drive

Kearneysville, WV 25430

Or, if by truck or air freight:

IRS - Martinsburg Computing Center

Magnetic Media Reporting

240 Murall Drive

Kearneysville, WV 25430.

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 or

electronic 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

or electronically, savings may be obtained

if magnetic media or electronic data is

used for filing with both the 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 the 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 (or Magnetic

Media Reporting and Electronic Filing

Publication Number ICN (MMREF-1)).

EMPLOYERS WHO FILE FORM W2 INFORMATION ON MAGNETIC

9

MEDIA OR ELECTRONICALLY WITH

THE SSA MUST NOT SEND THE

SAME DATA TO THE 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 Information to the Social Security Administration,

(SSA Pub. No. 42-007, revised Oct.,

1998) contains the specifications and procedures for filing Form W-2 information

on magnetic media or electronically with

the 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 Employer Service Liaison Officers (ESLO) to

obtain the TIB-4 (see list of Employer Service Liiaison Officers’ telephone numbers

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

SSA Online Wage Reporting Bulletin

Board System (OWRBBS). The number

for the OWRBBS is (410) 966-8450 (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 filing on magnetic

media or electronically must file a paper

Copy A of Form W-2 with the 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 may design their own

statements to give to employees. This applies to employers who file with the SSA

on magnetic media, electronically, or on

paper. 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 the SSA when the same Form

W-2 information is filed electronically or

on magnetic media. Therefore, magnetic

media or electronic filers who use the official IRS printed form or any other pre-

May 24, 1999

printed form are advised not to print Copy

A to prevent duplicate information from

being submitted to the SSA.

.06 Employers terminating their businesses, must provide their employees

with Forms W-2 on or before the due date

of the final Form 941 filed by the employer. Employers must also file Forms

W-2 and W-3 with the SSA on or before

the last day of the month following the

due date of the final Form 941. See Rev.

Proc. 96–57, 1996–2 O.B. 389, 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 Forms W-2 are sent

out and filed correctly and on time.

.07 Employers who file electronic

Forms W-2 for 1999 have until March

31, 2000. Forms W-2 for 1999, whether

filed on magnetic media or paper, must be

submitted to the SSA on or before February 29, 2000. In addition, the employee

copies must be furnished to the employee

on or before February 1, 2000. If employment ended before December 31,

1999, the employee may be furnished

his/her copy any time after employment

ends, but no later than February 1, 2000.

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 the

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 the 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

(February 29, 2000). DO NOT SEND

FORM 8809 TO THE SSA.

NOTE: APPROVAL OF THE EXTENSION IS NOT AUTOMATIC. Approval

May 24, 1999

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

IRS and must allow at least 30 days from

the date of the request for the 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 using electronic options on the Internet at http://www.irs.ustreas.gov; by

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

using the IRS Fax Forms Program (703)

368-9694, 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 When requesting extensions of time

for more than 10 employers, the IRS encourages filers to submit the request on

tape, tape cartridge, 31⁄2-inch diskette, or

electronically. Transmitters requesting

an extension of time to file for 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, 31⁄2 inch diskette, or

electronically.

NOTE: To file a request for extensions

of time, magnetically or electronically

for multiple payers, third party

filers/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 the SSA must send

the Forms W-2 with a Form W-3.

.02 Form W-3 must be the same width

(7 inches) as the Forms W-2 filed.

.03 Form W-3 pages 2 and 3 have been

eliminated including the second “your

copy” of the form. Separate instructions

for the Form W-3 are provided in the “Instructions for Forms W-2 and W-3.”

10

Form W-3 is now a single cut sheet including only essential filing information.

Be sure to make a copy of the complete

form for your records.

.04 The bottom of Form W-3 has been

redesigned. The “Need Help?” paragraph

has been deleted and inserted within the

“Instructions for Forms W-2 and W-3.”

The “Purpose of Form” and “When To

File” paragraphs have been added to restate the purpose of the Form W-3 which

can also be found within the “Instructions

for Forms W-2 and W-3,” while also providing due date on the actual form itself.

.05 Form W-3 should be used only to

transmit paper Forms W-2 (Copy A).

Magnetic media or electronic filers do not

file Form W-3. Employers submitting

magnetic media using the TIB-4 format

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 ESLO (see listing

in Appendix) or the IRS at 1-800-8293676. Employers submitting W-2 information electronically using OWRRB

need not submit a Form 6559.

PART B. REQUIREMENTS FOR

FILING PAPER SUBSTITUTES

SEC. 1. REQUIREMENTS FOR

SUBSTITUTE “PRIVATELY

PRINTED” FORMS SUBMITTED TO

THE SSA (FORM W-2, COPY A, AND

FORM W-3)

.01 Employers may file privately

printed substitute Forms W-2 and W-3

with the 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. 1.15, below). The

specifications and allowable tolerances

for 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 used for substitute Forms W2, Copy A, and Form W-3 (cut sheets and

continuous pinfeed forms) that are to be

filed with the SSA must be white 100%

bleached chemical wood, 18-20 pound

1999–21 I.R.B.

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.

is 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) is allowed.

Paper can 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 —

seconds . . . . . . . . . . . . . . . . . . 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.

The following must be printed in non-reflective black ink:

1. Identifying control number ‘22222’

(Exhibit C) at the top of Form W-2.

2. Tax year at the bottom of the Form

W-2 (see Exhibit C).

1999–21 I.R.B.

3. Identifying control number ‘33333’

(Exhibit D) at the top of Form W-3.

4. Tax year at the bottom of Form W-3

(Exhibit D).

5. Form identification ‘W-3’ at the bottom of Form W-3 (Exhibit D).

All other printing on Forms W-2, Copy

A, and W-3 must be in red OCR drop-out

Flint Ink J-6983 (formerly Sinclair and

Valentine) or an exact match. This is the

same ink that is used for Copy A of the

Form 1099 series (see Pub. #1179). The

use of this is required for 1999 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 & Analysis, 27011 East Grauwyler,

Bldg #1, Mail-stop #69, Irving, TX 75061

(972-579-6088).

.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 is 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 1999 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 1998.

Margins must be free of all printing. No

printing should appear anywhere near the

Form ID control number (33333, or

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

must be printed in non-reflective black

11

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 on 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 twice 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 the SSA. The pinfeed strips must

also be removed. 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 Forms W-2 and W-3 instructions contain the Privacy Act Notification previously shown on the Form

W-3.

.09 The Office of Management and

Budget (OMB) Number must be printed

on each ply of Forms W-2 and on W-3

(see Exhibits A and B for format and location).

.10 The instructions on the official

Form W-3, must be printed in their 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 a Form W-3 with Form W-2. On

Form W-3 mark the “Hshld Emp.” box in

Box b.

.11 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

May 24, 1999

separated at the page perforation prior

to submitting them to the 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.

.12 The back of a substitute Forms W2, Copy A, and Form W-3 must be free of

all printing.

.13 Spot carbons are NOT permitted

for Copy A of Forms W-2 or for Form W3. Interleaved carbon should be black and

must be of good quality to assure legibility of information on all copies and to preclude smudging.

.14 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.

.15 The GPO symbol must not be

placed on substitute Copy A of Forms

W-2.

.16 The Catalog Number, shown on the

1999 Form W-2 as “Cat. No. 10134D”,

and the Catalog Number shown on the

1999 Form W-3 as “Cat. No. 10159Y”,

are 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 or electronically 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, and 2),

but not Copy A, may be expanded from

the dimensions of the official form to

allow space for conveying additional information, including additional entries required for Boxes 13 or 14, such as withholding from pay for health insurance,

union dues, bonds, or charity. The re-

May 24, 1999

quirement 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 the 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, and

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

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:

(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 deep by 5.0 inches

wide.

(b) horizontal or vertical format is permitted.

NOTE: These minimum and maximum

size specifications are for 1999 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 the SSA,

is specified in Part B, section 1.05 above.

.02 The paper for all copies must be

white. The substitute Copy B (or its

equal), which 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 must be at least

9-pound 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. 1.14, above, for standards for

chemical transfer paper for Copy A.)

12

.04 The following requirements govern

the private printing of employee copies of

Forms W-2. All substitutes must be a

form, that contains boxes, box numbers,

and box titles that, when applicable, match

the IRS printed form. The employee

copy of Forms W-2 (Copy C) must contain 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:

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 Act

(RRTA) Tier 1 and Tier 2 coverage. Railroad 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 the 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, that 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

1999–21 I.R.B.

this data. The form title, number, or copy

(Copy B, C, or 2) 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 each must 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 identification number 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 (1999) MUST be

clearly printed (in non-reflective black

ink) on all copies of substitute Forms W2. 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” (Advance Earned Income Credit) payment

(box 9) is present, the box must be outlined in bold 2-point 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.

1999–21 I.R.B.

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

withheld; wages, tips, and other compensation; or Advance EIC 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 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 payment (box 9),

the form could be printed without those

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 must use

13

the same code as assigned by the IRS for

that type of item. (See the Reference

Guide for Box 13 Codes in the 1999 Instructions for Forms W-2 and W-3. For

example, employers reporting elective deferrals to a section 401(k) plan must enter

in box 13 “D” and not “A”, 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 1999 Instructions for Forms

W-2 and W-3.) 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 1997 2250.00, D 1998 1250.00.

The 1999 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 housing, 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 retirement that is part of a 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

May 24, 1999

qualified adoption expenses must be reported in box 13, Form W-2, using code

T.

20. Form W-3 box 13 has been opened

to allow third-party payers of sick pay to

enter “Third-Party Sick Pay Recap”. This

will help identify and expedite processing

of those forms.

21. Employers may use box 14 for any

other information they wish to give their

employee. Each item must be labeled.

Examples are union dues, health insurance premiums deducted, nontaxable income, voluntary after-tax contributions,

or educational assistance payments.

22. 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 form for employees

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

meet the following requirements:

1. All copies of Form W-2 must clearly

show the form number, the form title, and

the tax year prominently displayed in one

area of the form. 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.

(c) If applicable, the third copy (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

May 24, 1999

(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. “Department of the

Treasury - Internal Revenue Service” 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 1 and Tier 2 compensation

and taxes). Employers are allowed to

delete instructions that do not apply to the

employee. For example, if none of the

employees 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 official 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 the SSA must follow the requirements in Part B, Sec. 3, below for

those paper submissions.

14

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. Please do not mail your paper

Forms W-2 or W-3 tax year submissions to the IRS address below. The address below is for correspondence, or

questions relating to specifications in

this publication. 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 the SSA and those

that are given to employees. Forms cannot be submitted to the IRS or the SSA

for specific approval. However, if you

are uncertain of any specification set forth

herein and want that specification clarified, you may 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:

Internal Revenue Service

ATTN: Substitute Form W-2

Coordinator

OP:C:A:C:I

5000 Ellin Rd.

Lanham, 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 or the 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’s IRS

printed Forms W-2 and W-3 and the in-

1999–21 I.R.B.

structions for these forms may be obtained using 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 the SSA should contain

only data that is required by the Form W2 or Form W-3, the Forms W-2 and W-3

instructions, and this revenue proedure.

.05 Substitute Forms W-2, Copy A,

and W-3 are machine imaged and scanned

by the SSA, therefore, these forms must

meet the same specifications as Forms W2 and W-3 produced by the 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 The ballot boxes on Forms W-2,

Copy A (box 15), must be point-1 boxes

(See Exhibit A), and the “Void box” is

point-14. The spacing on each side of the

“Void box” is point-8 (See Exhibit A).

The W-3 box b must be point-11 boxes

(See Exhibit B). The spacing and box

sizes have been corrected this year. Please

insure you adhere to the dimensions provided in the exhibits.

NOTE: If a box is marked, more than 50

percent of the applicable ballot box must

be covered by an “X”.

.07 Copy A of Forms W-2 and Form

W-3 must have the form producer's EIN

entered to the left of “Department of Treasury.”

PART C. ADDITIONAL

INSTRUCTIONS

SEC. 1. INSTRUCTIONS FOR

FORMS PRINTERS

.01 Except as provided below, if magnetic media/electronic is not used for filing with the 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 the SSA must

carry the designation “Copy A.”

NOTE: Magnetic media/electronic filers

do not submit Copy A of Form W-2 or

Form W-3. TIB-4 specifications require

Form 6559 transmittal for magnetic

media filers of Form W-2 data.

1999–21 I.R.B.

1. Privately printed substitute forms

are not required to 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 the 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,” on 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

Copies 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 income tax

return.

.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

OCR-A font (copy A), of Forms W-2,

and Forms W-3. The form title, e.g.,

“Wage and Tax Statement” must be

printed in red OCR-A 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-A drop-out ink.

.03 The substitute Form W-2, Copy B,

which employees attach to their Federal

income tax return, must be printed on at

least 12-pound 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

15

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

the 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-2 or W-3.

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 the 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 SMALLER THAN 12 CHARACTERS PER INCH. Omit dollar signs

but include decimal points for all cents

amounts. The employer must provide a

machine scannable Form W-2, Copy A.

The employer must refrain from printing any data in the top margin of the

forms. UNLESS ABSOLUTELY NECESSARY, DO NOT PRINT ANYTHING IN THE CONTROL NUMBER BOX ON THE FORM W-2 OR

W-3. The employer must also provide

payee copies (Copies B, C, and 2) that are

legible and capable of being photocopied

(by the employee). When Forms W-2 or

W-3 are typed, black ink must be used

with no script type, inverted font, italics

or dual case alpha characters used.

.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 W2). The EIN must be entered in box e of

the Form W-3. Note: The EIN entered

on Form W-3 in box e must be the same

EIN entered on Forms W-2 in box b,

and on Forms 941, 943, CT-1, Schedule

May 24, 1999

H (Form 1040), or any other forms filed

with the IRS.

.04 The employer's name, address, and

EIN may bepreprinted.

.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 Forms W-2

should include the name of the 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 and W-3 are included

in the 1999 Instructions for Forms W-2

and W-3.

.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,

and

May 24, 1999

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 the

SSA. The label should be placed inside

the brackets printed in boxes e, f, and g.

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 the 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),

or

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:

16

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.

Internet: Telnet - iris.irs.ustreas.gov

FTP - ftp.irs.ustreas.gov

http://ftp.fedworld.gov/pub/irs-irbs/

irb99-21.pdf

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

Fax Forms: (703) 368-9694

.02 Over 100 of the most requested

forms and instructions may be obtained

via your fax machine. Just call (703)3689694 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

Printing Office (GPO), Superintendent of

Documents. Current tax year materials,

and tax year forms for each year beginning with 1991 and publications beginning with 1994, are included on the disc.

Please be advised when ordering via CDROM, Copy A cannot be used to file with

the SSA. Copy A must be in red dropout

ink to be acceptable to the SSA. To order

the CD-ROM, call Superintendent of

Documents at (202) 512-1800 (select Option #1), or by computer through GPO’s

Internet Web Site (http;//www.access.

gpo.gov/su docs).

.04 A list of the Social Security Administrations ESLO Coordinators is included

in the Appendix.

Sec. 5 EFFECT ON OTHER REVENUE

PROCEDURES

.01 Rev. Procs. 98-33, 1998-19, dated

May 11, 1998 (Reprinted as Publication

1141, Revised 4-98), is superseded.

1999–21 I.R.B.

1999–21 I.R.B.

17

May 24, 1999

May 24, 1999

18

1999–21 I.R.B.

1999–21 I.R.B.

19

May 24, 1999

May 24, 1999

20

1999–21 I.R.B.

1999–21 I.R.B.

21

May 24, 1999

May 24, 1999

22

1999–21 I.R.B.

1999–21 I.R.B.

23

May 24, 1999

26 CFR 601.602: Tax forms and instructions.

(Also Part I, sections 6012, 6061; 1.6012–5, 1.6061–1.)

Rev. Proc. 99–25

CONTENTS

SECTION 1

SECTION 2

SECTION 3

SECTION 4

SECTION 5

SECTION 6

SECTION 7

SECTION 8

SECTION 9

SECTION 10

SECTION 11

SECTION 12

SECTION 13

SECTION 14

SECTION 15

SECTION 16

SECTION 17

PURPOSE

BACKGROUND AND CHANGES

1040NR PROGRAM PARTICIPANTS—DEFINITIONS

ACCEPTANCE INTO THE 1040NR PROGRAM

RESPONSIBILITIES OF A 1040NR FILER

PENALTIES

FORM 8453-NR, U.S. NONRESIDENT ALIEN INCOME TAXDECLARATION FOR MAGNETIC MEDIA

FILING

INFORMATION A 1040NR FILER MUST PROVIDE TO THE TAXPAYER

DIRECT DEPOSIT OF REFUNDS

BALANCE DUE RETURNS

ADVERTISING STANDARDS FOR 1040NR FILERS AND FINANCIAL INSTITUTIONS

MONITORING AND SUSPENSION OF A 1040NR FILER

ADMINISTRATIVE REVIEW PROCESS FOR DENIAL OF PARTICIPATION IN THE 1040NR PROGRAM

ADMINISTRATIVE REVIEW PROCESS FOR SUSPENSION FROM THE 1040NR PROGRAM

EFFECT ON OTHER DOCUMENTS

EFFECTIVE DATE

PROJECT OFFICE INFORMATION

SECTION 1. PURPOSE

This revenue procedure informs those

who participate in the Magnetic Media/

Electronic Filing Program for Form

1040NR, U.S. Nonresident Alien Income

Tax Return (“1040NR Program”), of their

obligations to the Internal Revenue Service, taxpayers, and other participants.

This revenue procedure updates and supersedes Rev. Proc. 98–36, 1998–23 I.R.B 10.

SECTION 2. BACKGROUND AND

CHANGES

.01 Section 1.6012–5 of the Income

Tax Regulations provides that the Commissioner may authorize the use, at the

option of a person required to make a return, of a composite return in lieu of any

form specified in 26 CFR Part 1 (Income

Tax), subject to the conditions, limitations, and special rules governing the

preparation, execution, filing, and correction thereof as the Commissioner may

deem appropriate.

.02 For purposes of this revenue procedure, a magnetically or electronically

filed Form 1040NR is a composite return

consisting of data submitted on magnetic

tape, floppy disk, or via modem (the “data

May 24, 1999

portion”), and certain paper documents

(the “paper portion”). The paper portion

of the return consists of a Form 8453-NR,

U.S. Nonresident Alien Income Tax Declaration for Magnetic Media Filing, and

other paper documents that cannot be

filed magnetically or electronically. Form

8453-NR must be received by the Service

before any composite return is complete

(see section 5.07 of this revenue procedure). A composite return must contain

the same information that a return filed

completely on paper contains. See section 7 of this revenue procedure for procedures for completing Form 8453-NR.

.03 The Magnetic Media Project Office

(“Project Office”, see section 17 of this

revenue procedure for the address and

telephone numbers) will periodically issue

a list of the forms and schedules that can

be magnetically or electronically filed.

.04 A Form 1040NR with a zero balance, balance due, or refund due may be

magnetically or electronically filed.

.05 For purposes of the 1040NR Program, a Form 1040NR cannot be filed

magnetically or electronically after the

first Friday of December following the

close of the taxable year, notwithstanding

the fact that the taxpayer has been granted

24

an extension to file beyond that date.

Form 2688, Application for Additional

Extension of Time To File U.S. Individual

Income Tax Return, cannot be filed magnetically or electronically under the

1040NR Program.

.06 An amended tax return cannot be

filed magnetically or electronically under

the 1040NR Program. A taxpayer must

file an amended tax return on paper in accordance with the instructions for Form

1040X, Amended U.S. Individual Income

Tax Return.

.07 Upon request, the Project Office

will provide technical information (file

specifications, record layouts, and testing

procedures) for filing Form 1040NR magnetically or electronically.

.08 Some of the updates and changes to

Rev. Proc. 98–36 are as follows:

(1) references to specific dates and

specific tax years have been replaced with

more general references in order to eliminate the need for annual updates to this

revenue procedure; and

(2) an applicant that purchases the

business of a participant in the 1040 NR

Program must submit a new application to

the Project Office (section 4.05).

1999–21 I.R.B.

SECTION 3. 1040NR PROGRAM

PARTICIPANTS—DEFINITIONS

.01 After acceptance into the 1040NR

Program, as described in section 4 of this

revenue procedure, a participant is referred to as a “1040NR Filer.”

.02 The 1040NR Filer categories are:

(1) 1040NR RETURN ORIGINATOR. A “1040NR Return Originator” is:

(a) a “1040NR Return Preparer” who prepares tax returns, including Forms 8453NR, for taxpayers who intend to have

their returns magnetically or electronically filed; and/or (b) a “1040NR Return

Collector” who accepts completed tax returns, including Forms 8453-NR, from

taxpayers who intend to have their returns

magnetically or electronically filed.

(2) SERVICE BUREAU. A “Service

Bureau” receives tax return information

on any media from a 1040NR Return

Originator, formats the return information, and either (a) sends back the return

information to the 1040NR Return Originator, or (b) forwards the return information to a Transmitter. A Service Bureau

may send Forms 8453-NR to the Service.

(3) SOFTWARE DEVELOPER. A

“Software Developer” develops software

for the purposes of (a) formatting the data

portion of returns according to the Service’s magnetic or electronic return filing

specifications; and/or (b) transmitting the

data portion of returns directly with the

Service. A Software Developer may also

sell its software.

(4) TRANSMITTER. A “Transmitter” sends the data portion of a return directly to the Service.

.03 The 1040NR Filer categories are

not mutually exclusive. For example, a

1040NR Return Originator can, at the

same time, be considered a Transmitter,

Software Developer, or Service Bureau

depending on the function(s) performed.

SECTION 4. ACCEPTANCE INTO THE

1040NR PROGRAM

.01 Except as provided in sections 4.02

and 4.03 of this revenue procedure, a

1040NR Filer that has participated in the

most recent 1040NR Program does not

have to reapply to participate in the

1040NR Program. However, a 1040NR

Filer that intends to function as a Transmitter or a Software Developer in the

1040NR Program must first successfully

1999–21 I.R.B.

complete the testing referred to in section

4.07 of this revenue procedure. In addition, section 4.08 of this revenue procedure provides for the Service’s issuance

of credentials necessary for participation

in the 1040NR Program.

.02 Applicants and 1040NR Filers must

file a new Form MAR-8980, Application

for Electronic/Magnetic Media Filing of

Form 1040NR, with the Project Office if:

(1) the applicant has never participated in the 1040NR Program;

(2) the applicant has previously been

denied participation in the 1040NR Program; or

(3) the applicant has been suspended

from the 1040NR Program.

.03 To participate in the 1040NR Program, a 1040NR Filer in the most recent

1040NR Program must submit to the Project Office either a revised Form MAR8980, or a letter containing the same information contained in the revised Form

MAR-8980, if there is any change to the

following information:

(1) the Firm name or Doing Business

As (DBA) name;

(2) the business or mailing address;

(3) the contact person’s name or telephone number; or

(4) the 1040NR Filer category.

.04 Applications described in this section 4.02 may be submitted at any time

during the year.

.05 If an applicant purchases an existing 1040NR Filer’s business, a new application and proof of sale must be submitted during the period beginning 45 days

before, and ending 30 days after, the date

of the purchase.

.06 Revised applications described in

this section 4.03 must be submitted within

30 days of the change(s) reflected on the

revised Form MAR-8980 or in the letter.

.07 A 1040NR Filer may not submit tax

returns under the 1040NR Program until

30 days after it has successfully completed the necessary testing administered

by the Project Office.

.08 The Service will issue credentials to

eligible applicants, 1040NR Filers that do

not have to reapply pursuant to section

4.01 of this revenue procedure, and

1040NR Filers that comply with section

4.02 or 4.03 of this revenue procedure,

provided they have first satisfactorily

completed the testing described in section

4.07 of this revenue procedure if they in-

25

tend to function as a Transmitter or Software Developer. No one may participate

in the 1040NR Program without the following credentials:

(1) a letter of acceptance into the

1040NR Program; and

(2) a Magnetic Tape 1040NR Filer

Identification Number (MTFIN).

.09 The following reasons may result in

rejection of an application to participate

in the 1040NR Program (this list is not

all-inclusive):

(1) conviction of any criminal offense under the revenue laws of the

United States, or of any offense involving

dishonesty or breach of trust;

(2) failure to timely and accurately

file tax returns, including returns indicating that no tax is due;

(3) failure to timely pay any tax liabilities;

(4) assessment of tax penalties;

(5) suspension/disbarment from

practice before the Service;

(6) disreputable conduct or other

facts that would reflect adversely on the

1040NR Program;

(7) misrepresentation on an application;

(8) suspension or rejection from the

1040NR Program in a prior year;

(9) unethical practices in return

preparation;

(10) stockpiling returns prior to official acceptance into the 1040NR Program

(see section 5.10 of this revenue procedure);

(11) knowingly and directly or indirectly employing or accepting assistance

from any firm, organization, or individual

that is prohibited from applying to participate in the 1040NR Program (see section

13.09 of this revenue procedure) or that is

suspended from participating in that Program (see section 12.07 of this revenue

procedure). This includes any individual

whose actions resulted in the rejection or

suspension of a corporation or a partnership from the 1040NR Program; or

(12) knowingly and directly or indirectly accepting employment as an associate, correspondent, or as a subagent from,

or sharing fees with, any firm, organization, or individual that is prohibited from

applying to participate in the 1040NR

Program (see section 13.09 of this revenue procedure) or that is suspended from

participating in that Program (see section

May 24, 1999

12.07 of this revenue procedure). This includes any individual whose actions resulted in the rejection or suspension of a

corporation or a partnership from the

1040NR Program.

SECTION 5. RESPONSIBILITIES OF A

1040NR FILER

.01 To ensure that complete returns are

accurately and efficiently filed, a 1040NR

Filer must comply with all publications

and notices of the Service related to magnetic or electronic filing. Currently, these

publications and notices include:

(1) Procedures for Magnetic Media

Filing of U.S. Nonresident Alien Income

Tax Returns, Form 1040NR (available

from the Project Office);

(2) File Specifications and Record

Layouts for Magnetic Media Filing of

U.S. Nonresident Alien Income Tax Returns, Form 1040NR (available from the

Project Office); and

(3) Postings to the Electronic Filing

System Bulletin Board (EFS Bulletin

Board).

.02 A 1040NR Filer must maintain a

high degree of integrity, compliance, and

accuracy.

.03 A 1040NR Filer may accept returns

for magnetic or electronic filing only

from the taxpayer filing the return, a representative of the taxpayer filing the return, or from another 1040NR Filer.

.04 If a 1040NR Filer charges a fee for

the transmission of the data portion of the

tax return, the fee may not be based on a

percentage of the refund amount or any

other amount from the tax return. A

1040NR Filer may not charge a separate

fee for Direct Deposit. See section 9 of

this revenue procedure for a discussion of

Direct Deposit.

.05 A 1040NR Filer must submit a revised Form MAR-8980 to the Project Office within 30 days of when any of the

conditions or changes described in section

4.03 of this revenue procedure occur.

.06 A 1040NR Filer must notify the

Project Office within 30 days of discontinuing its participation in the 1040NR

Program. This does not preclude reapplication in the future.

.07 A 1040NR Filer must ensure that it

promptly processes returns submitted to it

for magnetic or electronic filing. See sections 5.10, 5.16, and 5.17 of this revenue

procedure. However, a 1040NR Filer that

May 24, 1999

receives a return for magnetic or electronic filing on or before the due date of

the return must ensure that the data portion of the return is filed on or before that

due date (including extensions, see section 5.08 of this revenue procedure). A

composite return is not considered filed

until the data portion of the tax return is

acknowledged by the Service as accepted

for processing and a completed and

signed Form 8453-NR is received by the

Service. However, if the data portion of a

return is successfully transmitted on or

shortly before the due date and the

1040NR Filer complies with section 7.01

of this revenue procedure, the return will

be deemed timely filed. If the data portion of a return is transmitted on or shortly

before the due date but is ultimately rejected, the return will be deemed timely

filed if the 1040NR Filer and the taxpayer

comply with section 5.14 of this revenue

procedure. In the case of a balance due

return, see section 10 of this revenue procedure for instructions on how to make a

timely payment of tax.

.08 Unless the Service grants an extension of time to file beyond the due date of

the return, a 1040NR Filer must ensure

that the return for any individual is received by the Service on or before:

(1) April 15 if the individual was an

employee and received wages subject to

U.S. federal income tax withholding; or

(2) June 15 if the individual did not

receive such wages.

However, section 2.05 of this revenue

procedure provides that a return cannot be

filed magnetically or electronically after

the first Friday of December following

the close of the taxable year.

.09 A 1040NR Filer must ensure

against the unauthorized use of its

MTFIN. A 1040NR Filer must not transfer its MTFIN by sale, merger, loan, gift,

or otherwise to another entity.

.10 A 1040NR Filer is responsible for

ensuring that stockpiling does not occur.

Prior to official acceptance of the

1040NR Filer into the 1040NR Program,

stockpiling means collecting returns from

taxpayers. After official acceptance,

stockpiling means:

(1) in the case of a 1040NR Return

Originator, waiting for more than three

calendar days after receiving the necessary information to submit a return to a

Transmitter or Service Bureau, or

26

(2) in the case of a Transmitter, waiting for more than ten calendar days after

receiving the necessary information to

send the data portion of the return to the

Service.

.11 A 1040NR Filer that functions as a

Return Originator must:

(1) comply with the procedures for

completing Form 8453-NR described in

section 7 of this revenue procedure;

(2) comply with the procedures described in section 10 of this revenue procedure for handling a balance due return;

(3) furnish the taxpayer with a copy

of the signed Form 8453-NR (except for

multiple return filing as described in section 7.01(5) of this revenue procedure)

and, in the case of a prepared or corrected

return, a copy of the paper portion of the

return;

(4) while returns are being filed, retain and, if requested, make available to

the Service the following material at the

business address from which a return was

accepted for magnetic or electronic filing:

(a) a copy of the signed Form

8453-NR, paper copies of Forms W-2,

Wage and Tax Statement, W-2G, Certain

Gambling Winnings, 1099-R, Distributions From Pensions, Annuities, Retirement or Profit Sharing Plans, IRAs, Insurance Contracts, etc., and the paper portion

of the taxpayer’s return;

(b) a complete copy of the data

portion of the taxpayer’s return (which

may be retained on computer media) that

can be readily and accurately converted

into magnetic or electronic data that the

Service can process; and

(c) the acknowledgement file

(stating that the Service accepts the data

portion of the taxpayer’s return for processing) received from the Service or

from a third party Transmitter;

(5) retain until the end of the calendar year in which a return was filed and

make available to the Service upon request the materials described in section

5.11(4) of this revenue procedure, at the

business address from which a return was

accepted for magnetic or electronic filing

or from the contact person named on

Form MAR-8980.

.12 A 1040NR Return Originator who

is the paid preparer of a magnetically or

electronically filed Form 1040NR must

also retain for the prescribed amount of

time the materials described in § 1.6107-

1999–21 I.R.B.

1(b) that are required to be kept by an income tax return preparer.

.13 A 1040NR Return Originator must

identify the paid preparer (if any) in the

appropriate field of the data portion of the

return, in addition to ensuring that the paid

preparer signed Form 8453-NR. If Form

8453-NR is not signed by the paid preparer, the 1040NR Return Originator must

attach a copy of the Form 1040NR originally signed by the paid preparer. This

copy must be marked “COPY-DO NOT

PROCESS” to prevent duplicate filings.

.14 If the Service rejects the data portion of a taxpayer’s return (the Service

states that it rejects the data portion of a

taxpayer’s return for processing in the acknowledgement file), and the reason for

the rejection cannot be rectified by the actions described in section 6.02(3) of this

revenue procedure, the 1040NR Return

Originator, within 24 hours of receiving

the rejection, must take reasonable steps

to tell the taxpayer that the taxpayer’s return has not been filed. If the taxpayer

chooses to have the data portion of the return resubmitted magnetically or electronically, and the 1040NR Return Originator

successfully works with the Project Office to correct the problems causing the

data portion of the return to be rejected,

the return will be accepted as timely filed.

A new Form 8453-NR may be required

(see section 7 of this revenue procedure).

However, even when no new Form 8453NR is required, the Transmitter must submit a photocopy of the original Form

8453-NR with the rejected file or return

and mark the photocopy “Retransmitted.”

If the Project Office determines that the

data portion of a return cannot be accepted for processing or the taxpayer

chooses not to have the rejected data portion of the return resubmitted magnetically or electronically, the taxpayer must

file a paper return by the later of:

(1) the due date (with regard to any

extensions of time to file) of the return; or

(2) ten calendar days after the Service gives notification that the data portion of the return is rejected or that the

data portion of the return cannot be accepted for processing.

The paper return should include an explanation of why the return is being filed

after the due date.

.15 A 1040NR Return Originator must

use the taxpayer’s address in the data por-

1999–21 I.R.B.

tion of the return. In addition, a 1040NR

Return Originator must not put its address

as the taxpayer’s address in the data portion of the return.

.16 A 1040NR Filer that functions as a

Service Bureau must:

(1) deliver all data portions of returns to a Transmitter or return them to

the 1040NR Return Originator who gave

the data portions of the returns to the Service Bureau within three calendar days of

receipt;

(2) retrieve the acknowledgement

file from the Transmitter within one calendar day of receipt by the Transmitter;

(3) send the acknowledgement file to

the 1040NR Return Originator (whether

related or not) within one work day of retrieving the acknowledgement file;

(4) if the Service Bureau processes

Forms 8453-NR, send back to the

1040NR Return Originator any return and

Form 8453-NR that needs correction, unless the correction is described in section

7.02(1) of this revenue procedure;

(5) accept tax return information

only from 1040NR Filers;

(6) include its MTFIN and the

1040NR Return Originator’s MTFIN with

all return information the Service Bureau

forwards to a Transmitter or sends back to

the 1040NR Return Originator;

(7) retain each acknowledgement file

received from a Transmitter until the end

of the calendar year in which the return

was filed;

(8) if requested, serve as a contact

point between its client 1040NR Return

Originator and the Service; and

(9) if requested, provide the Service

with a list of each client 1040NR Return

Originator.

.17 A 1040NR Filer that functions as a

Transmitter must:

(1) send to the Service all data portions of returns within ten calendar days

of receipt;

(2) match the acknowledgement file

to the original transmission file and send

the acknowledgement file to the 1040NR

Return Originator or the Service Bureau

(whether or not the 1040NR Return Originator or the Service Bureau are related to

the Transmitter) within five calendar days

after receipt of the acknowledgement file

from the Service;

(3) retain an acknowledgement file

received from the Service until the end of

27

the calendar year in which the return was

filed;

(4) immediately contact the Project

Office for further instructions if an acknowledgement of acceptance for processing has not been received by the

Transmitter within 14 calendar days of

transmission, or if a Transmitter receives

an acknowledgement for a return that was

not transmitted on the designated transmission;

(5) promptly correct any transmission error that causes a data portion of a

return to be rejected;

(6) contact the Project Office for assistance if a data portion of a return has

been rejected after three transmission attempts; and

(7) ensure the security of all transmitted data.

.18 A Transmitter that provides transmission services to another 1040NR Filer

must, in addition to the items covered in

section 5.17 of this revenue procedure,

also:

(1) accept returns for transmission to

the Service only from an accepted

1040NR Filer; and

(2) use its assigned MTFIN when filing returns.

.19 A 1040NR Filer that functions as a

Software Developer must:

(1) promptly correct any software

error that causes a data portion of a return

to be rejected;

(2) promptly distribute any software

correction made to its software packages

to all 1040NR Filers utilizing these packages; and

(3) not incorporate into its software a

Service-assigned production password.

.20 In addition to the specific responsibilities described in this section, a

1040NR Filer must meet all the requirements in this revenue procedure to keep

the privilege of participating in the

1040NR Program.

SECTION 6. PENALTIES

.01 Penalties for Disclosure or Use of

Information.

(1) A 1040NR Filer, except a Software Developer, is a tax return preparer

(“Preparer”) under the definition of

§ 301.7216–1(b) of the Regulations on

Procedure and Administration. A Preparer is subject to a criminal penalty for

May 24, 1999

unauthorized disclosure or use of tax return information. See § 7216 of the Internal Revenue Code and § 301.7216–1(a).

In addition, § 6713 establishes civil

penalties for unauthorized disclosure or

use of tax return information.

(2) Under § 301.7216–2(h), disclosure of tax return information among accepted 1040NR Filers for the purpose of

preparing a return is permissible. For example, a 1040NR Return Originator may

pass on tax return information to a Service Bureau and/or a Transmitter for the

purpose of having the data portion of a return formatted and sent to the Service.

However, if the tax return information is

disclosed or used in any other way, a Service Bureau and/or a Transmitter may be

subject to the penalties described in section 6.01(1) of this revenue procedure.

.02 Other Preparer Penalties.

(1) Preparer penalties may be asserted against an individual or firm who

meets the definition of an income tax return preparer under §§ 7701(a)(36) and

301.7701–15. Preparer penalties that may

be asserted under appropriate circumstances include, but are not limited to,

those set forth in §§ 6694, 6695, and

6713.

(2) Under § 301.7701–15(d),

1040NR Return Collectors, Service Bureaus, Software Developers, and Transmitters are not income tax return preparers for the purpose of assessing most

preparer penalties as long as their services

are limited to “typing, reproduction, or

other mechanical assistance in the preparation of a return or claim for refund.”

(3) If a 1040NR Return Collector,

Service Bureau, Software Developer, or

Transmitter alters the return information

in a nonsubstantive way, this alteration

will be considered to come under the

“mechanical assistance” exception described in § 301.7701–15(d)(1). A nonsubstantive change is a correction or

change limited to a transposition error,

misplaced entry, spelling error, or arithmetic correction that falls within one of

the following tolerances:

(a) the “Total tax”, “Total payments”, “Refund”, or “Amount you owe”

on Form 8453-NR differs from the corresponding amount on the data portion of

the return by no more than $7;

(b) the “Total effectively connected income” amount shown on Form

May 24, 1999

8453-NR differs from the corresponding

amount on the data portion of the return

by no more than $25; or

(c) dropping cents and rounding to

whole dollars.

(4) If a 1040NR Return Collector,

Service Bureau, or Transmitter alters the

return information in a substantive way,

rather than having the taxpayer alter the

return, the 1040NR Return Collector, Service Bureau, or Transmitter will be considered to be an income tax return preparer for purposes of § 7701(a)(36).

(5) If a 1040NR Return Collector,

Service Bureau, Transmitter, or the product of a Software Developer, goes beyond

mechanical assistance, any of these parties may be held liable for income tax return preparer penalties. See Rev. Rul. 85–

189, 1985–2 C.B. 341, (which describes a

situation where a Software Developer was

determined to be an income tax return

preparer and subject to certain preparer

penalties).

.03 Other Penalties. In addition to the

above specified provisions, the Service

reserves the right to assert all appropriate

civil and criminal penalties, including

preparer, nonpreparer, and disclosure

penalties, against a 1040NR Filer as warranted under the circumstances.

SECTION 7. FORM 8453-NR, U.S.

NONRESIDENT ALIEN INCOME TAX

DECLARATION FOR MAGNETIC

MEDIA FILING

.01 Procedures for Completing Form

8453-NR.

(1) Form 8453-NR must be completed in accordance with the instructions

for Form 8453-NR.

(2) The taxpayer’s name, taxpayer

identification number, tax return information, and direct deposit of refund information in the data portion of the return must

be identical to the information on the

Form 8453-NR signed by the taxpayer (or

by the taxpayer’s authorized representative as described in section 7.01(5) of this

revenue procedure) and provided for submission to the Service.

(3) A 1040NR Filer, a financial institution, or any other entity associated with

the magnetic or electronic filing of a taxpayer’s return must not put its address on

Form 8453-NR or anywhere in the data

portion of a return.

28

(4) Except for multiple return filing

as described in section 7.01(5) of this revenue procedure, after the return has been

prepared and before the return is submitted, the taxpayer must verify the information on the data portion of the return and

on Form 8453-NR, and must sign Form

8453-NR.

(5) A 1040NR Filer must submit a

Form 8453-NR to the Project Office with

each magnetically or electronically filed

return. A single Form 8453-NR (inscribed with the language “See attached

Multiple Return Information Listing”)

may be used for a multiple return filing if

the person who signs Form 8453-NR has

authorization, either by a specific power

of attorney or as a responsible representative or agent under § 1.6012–3(b), to sign

each of the returns included in the multiple return filing. A person who makes a

multiple return filing must attach to Form

8453-NR an information page(s) titled

“Form 8453-NR for Multiple Returns—

Tax Return Information Listing” at the

top of the pages(s). Below the title, the

multiple return 1040NR Filer must provide his or her name and address. The

next item on the page(s) must be a list that

includes every taxpayer’s name control,

taxpayer identification number, and the

information shown on lines one through

five on Form 8453-NR, for each return included in a multiple return filing.

(6) If a 1040NR Filer functions as a

1040NR Return Originator, the 1040NR

Filer must sign the 1040NR Return Originator’s Declaration on Form 8453-NR.

(7) If the 1040NR Filer is also the

paid preparer, the 1040NR Filer must

check the “Paid Preparer” box and sign

the 1040NR Return Originator Declaration on Form 8453-NR.

.02 Corrections to Form 8453-NR.

(1) A new form 8453-NR is not required for a nonsubstantive change. A

nonsubstantive change is limited to a correction that does not exceed the tolerances, described in section 7.02(2) of this

revenue procedure for arithmetic errors, a

transposition error, a misplaced entry, or a

spelling error. The incorrect nonsubstantive information must be neatly lined

through on the Form 8453-NR and the

correct data entered next to the linedthrough entry. Also, the individual making the correction must initial the correction.

1999–21 I.R.B.

(2) The tolerances for section 7.02(1)

of this revenue procedure are:

(a) the “Total effectively connected income” does not differ from the

amount on the data portion of the return

by more than $25; or

(b) the “Total tax”, the “Total payments”, the “Refund”, or the “Amount

you owe” does not differ from the amount

on the data portion of the return by more

than $7.

(3) If the 1040NR Return Originator

makes a substantive change to the data

portion of the return after Form 8453-NR

has been signed by the taxpayer, but before it is transmitted to the Service, the

1040NR Return Originator must have all

the necessary parties described above sign

a new Form 8453-NR that reflects the

corrections before the data portion of the

return is transmitted.

(4) Dropping cents or rounding to

whole dollars does not constitute a substantive change or alteration to the return

unless the amount differs by more than

the above tolerances. All rounding should

be accomplished in accordance with the

instructions in the Form 104ONR tax

package.

.03 Missing Form 8453-NR. If the Service determines that a Form 8453-NR is

missing, the 1040NR Return Originator

must provide the Service with a replacement. A 1040NR Return Originator must

also provide a copy of the Form(s) W-2,

W-2G, 1099R, and all other attachments

to the Form 8453-NR.

.04 Substitute Form 8453-NR. If a substitute Form 8453-NR is used, it must be

approved by the Service prior to use.

SECTION 8. INFORMATION A

1040NR FILER MUST PROVIDE TO

THE TAXPAYER

.01 The 1040NR Return Originator

must furnish the taxpayer with a complete

paper copy of the taxpayer’s return (except for multiple return filing as described

in section 7.01(5) of this revenue procedure). However, the copy need not contain the social security number of the paid

preparer. See Rev. Rul. 78–317, 1978–2

C.B. 335. A complete copy of the taxpayer’s return includes:

(1) Form 8453-NR and other paper

documents that cannot be magnetically or

electronically transmitted, and

1999–21 I.R.B.

(2) a printout of the data portion of

the return. See section 2.02 of this revenue procedure. The data portion of the

return can be contained on a replica of an

official form or on an unofficial form.

However, on an unofficial form, data entries must be referenced to the line numbers on an official form.

.02 The 1040NR Return Originator

must advise the taxpayer to retain a complete copy of the return and any supporting material.

.03 The 1040NR Return Originator

must advise the taxpayer that an amended

return, if needed, must be filed as a paper

return and mailed to the Philadelphia Service Center.

.04 The 1040NR Return Originator

must, upon request, provide the taxpayer

with the date the Service acknowledged

that the data portion of the taxpayer’s return was accepted for processing.

.05 A 1040NR Return Originator must

advise taxpayers that they can call the

local IRS TeleTax number to inquire

about the status of their tax refund. The

1040NR Return Originator should also

advise taxpayers to wait at least three

weeks from the date the Service acknowledged that the data portion of the taxpayer’s return was accepted for processing before calling the TeleTax number.

.06 If a taxpayer chooses to use an address other than his or her home address

on the return, the 1040NR Return Originator must inform the taxpayer that the

address on the data portion of the return,

once processed by the Service, will be

used to update the taxpayer’s address of

record. The Internal Revenue Service

uses the taxpayer’s address of record for

various notices that are required to be sent

to a taxpayer’s “last known address”

under the Internal Revenue Code and for

refunds of overpayments of tax (unless

otherwise specifically directed by the taxpayer, such as by Direct Deposit).

SECTION 9. DIRECT DEPOSIT OF

REFUNDS

.01 The Service will ordinarily process

a request for Direct Deposit but reserves

the right to issue a paper refund check.

.02 The Service does not guarantee a

specific date by which a refund will be directly deposited into the taxpayer’s financial institution account. The taxpayer’s

29

account must be with a financial institution located in the United States.

.03 Neither the Service nor the Financial Management Service (FMS) is responsible for the misapplication of a Direct Deposit that is caused by error,

negligence, or malfeasance on the part of

the taxpayer, 1040NR Filer, financial institution, or any of their agents.

.04 A 1040NR Return Originator must:

(1) advise taxpayers of the option to

receive their refund by paper check or direct deposit;

(2) not charge a separate fee for Direct Deposit;

(3) accept any Direct Deposit election to any eligible financial institution

designated by the taxpayer;

(4) ensure that the taxpayer is eligible to choose Direct Deposit;

(5) verify that the Direct Deposit information requested on Part II of Form

8453-NR was entered correctly and that

the information entered is the information

transmitted on the data portion of the

return;

(6) caution the taxpayer that once a

data portion of a return has been accepted

for processing by the Service:

(a) the Direct Deposit election

cannot be rescinded;

(b) the routing number of the financial institution cannot be changed; and

(c) the taxpayer’s account number

cannot be changed; and

(7) advise the taxpayer that refund

information is available by calling the

IRS TeleTax number. See section 8.05 of

this revenue procedure.

SECTION 10. BALANCE DUE

RETURNS

.01 A magnetically or electronically

filed balance due return is submitted to

the Philadelphia Service Center in the

same manner that a refund or zero balance

return is submitted. A balance due return

is not complete unless and until the Service receives a Form 8453-NR completed

and signed by the taxpayer (or by the taxpayer’s authorized representative as described in section 7.01(5) of this revenue

procedure).

.02 A taxpayer who magnetically or

electronically files a balance due return

must make a full and timely payment of

any tax that is due. Failure to make full

May 24, 1999

payment on or before the due date of the

return (determined without regard to extensions) will result in the imposition of

interest and may result in the imposition

of penalties.

SECTION 11. ADVERTISING

STANDARDS FOR 1040NR FILERS

AND FINANCIAL INSTITUTIONS

.01 A 1040NR Filer must comply with

the advertising and solicitation provisions

of 31 C.F.R. Part 10 (Treasury Department Circular No. 230). This circular

prohibits the use or participation in the

use of any form of public communication

containing a false, fraudulent, misleading,

deceptive, unduly influencing, coercive,

or unfair statement or claim. Any claims

concerning faster refunds by virtue of

magnetically or electronically filing returns must be consistent with the language in official Service publications.

.02 A 1040NR Filer must adhere to all

relevant federal, state, and local consumer

protection laws that relate to advertising

and soliciting.

.03 A 1040NR Filer must not use the

Service’s name, “Internal Revenue Service,” or “IRS” within a firm’s name.

.04 A 1040NR Filer must not use improper or misleading advertising in relation to the 1040NR Program (including

the time frames for refunds).

.05 A 1040NR Filer using promotional

material or logos provided by the Service

must comply with all Service instructions

pertaining to the promotional materials or

logos.

.06 A 1040NR Filer using the Direct

Deposit name and logo must comply with

the following:

(1) The name “Direct Deposit” will

be used with initial capital letters or all

capital letters.

(2) The logo/graphic for Direct Deposit will be used whenever feasible in

advertising copy.

(3) The color or size of the Direct

Deposit logo/graphic may be changed

when used in advertising pieces.

.07 Advertising materials must not

carry the FMS, IRS, or other Treasury

seals.

.08 Advertising for a cooperative

1040NR return project (public/private

sector) must clearly state the names of all

cooperating parties.

May 24, 1999

.09 If a 1040NR Filer uses radio or

television broadcasting to advertise, the

broadcast must be pre-recorded. The

1040NR Filer must keep a copy of the

pre-recorded advertisement for a period

of at least 36 months from the date of the

last transmission or use.

.10 If a 1040NR Filer uses direct mail

or fax communications to advertise, the

1040NR Filer must retain a copy of the

actual mailing or fax, along with a list or

other description of the firms, organizations or individuals to whom the communication was mailed, faxed, or otherwise

distributed for a period of at least 36

months from the date of the last mailing,

fax, or distribution.

.11 Acceptance to participate in the

1040NR Program does not imply endorsement by the Service or FMS of the

software or quality of services provided.

SECTION 12. MONITORING AND

SUSPENSION OF A 1040NR FILER

.01 The Service will monitor a 1040NR

Filer for conformity with this revenue

procedure. Before suspending a 1040NR

Filer, the Service may issue a warning letter that describes specific corrective action for deviations from this revenue procedure. However, the Service can

immediately suspend, without notice, a

1040NR Filer from the 1040NR Program.

In most circumstances, a suspension from

participation in the 1040NR Program is

effective as of the date of the letter informing the 1040NR Filer of the suspension.

.02 The Service will monitor the timely

receipt of Forms 8453-NR, as well as

their overall legibility.

.03 The Service will monitor the quality of the 1040NR Filer’s submissions

throughout the filing season. The Service

will also monitor data portions of returns

and tabulate rejections, errors, and other

defects. If quality deteriorates, the

1040NR Filer may receive a warning

from the Service.

.04 The Service will monitor complaints

about a 1040NR Filer and issue a warning

or suspension letter as appropriate.

.05 The Service reserves the right to

suspend a 1040NR Filer from participation in the 1040NR Program for violating

any provision of this revenue procedure.

Generally, the Service will advise a sus-

30

pended 1040NR Filer concerning the requirements for reacceptance into the

1040NR Program. The following reasons

may lead to a warning letter and/or suspension of a 1040NR Filer from the

1040NR Program (this list is not all-inclusive):

(1) the reasons listed in section 4.09

of this revenue procedure;

(2) deterioration in the format of individual submissions;

(3) unacceptable cumulative error or

rejection rate;

(4) untimely received, illegible, incomplete, missing, or unapproved substitute Forms 8453-NR;

(5) stockpiling returns at any time

while participating in the 1040NR Program;

(6) failure on the part of a Transmitter to provide a 1040NR Return Originator or Service Bureau with acknowledgement files within five calendar days after

receipt from the Service;

(7) significant complaints about a

1040NR Filer ’s performance in the

1040NR Program;

(8) failure on the part of a 1040NR

Filer to ensure against the unauthorized

use of its assigned MTFIN;

(9) having more than one MTFIN for

the same business entity at the same location (the business entity is generally the

entity that reports on its return the income

derived from magnetic or electronic filing), unless the Service has issued more

than one MTFIN to a business entity;

(10) failure on the part of a 1040NR

Filer to cooperate with the Service’s efforts to monitor 1040NR Filers and investigate filing abuse;

(11) failure on the part of a 1040NR

Filer to properly use the standard/nonstandard W-2 indicator;

(12) failure on the part of a Service

Bureau or a Transmitter to use its assigned MTFIN when filing returns;

(13) failure on the part of the Transmitter to include a Service Bureau’s

MTFIN in the transmission of a return

submitted by a Service Bureau;

(14) failure on the part of a Service

Bureau or a Transmitter to include the

1040NR Return Originator’s MTFIN as

part of a return that the 1040NR Return

Originator submits to the Service Bureau

or the Transmitter;

1999–21 I.R.B.

(15) violation of the advertising standards described in section 11 of this revenue procedure;

(16) failure to maintain and make

available records as described in sections

5.11(4) and (5) of this revenue procedure;

(17) accepting a tax return for magnetic or electronic filing either directly or

indirectly from a firm, organization, or individual (other than the taxpayer who is

submitting his or her return) that is not a

1040NR Filer;

(18) submitting information on the

data portion of the return that is not identical to the information on the Form 8453NR; or

(19) failure to timely submit a revised Form MAR-8980 notifying the Service of changes described in section 4.02

or 4.03 of this revenue procedure.

.06 The Service may list in the Internal

Revenue Bulletin, district office listings,

district office newsletters, on the EFS

Bulletin Board, or in other appropriate

publications, the name of any entity that

is suspended from the 1040NR Program

and the effective date of that suspension.

.07 If a participant is suspended from

participating in the 1040NR Program, the

period of suspension includes the remainder of the calendar year in which the suspension occurs plus the next two calendar

years. A suspended participant may submit a new application for the application

period immediately preceding the end of

the suspension.

SECTION 13. ADMINISTRATIVE

REVIEW PROCESS FOR DENIAL OF

PARTICIPATION IN THE 1040NR

PROGRAM

.01 An applicant that has been denied

participation in the 1040NR Program has

the right to an administrative review. During the administrative review process, the

denial of participation remains in effect.

.02 In response to the submission of a

Form MAR-8980, the Project Office will

either (1) accept an applicant into the

1040NR Program, or (2) issue a proposed

letter of denial that explains to the applicant why the Service proposes to reject

the application to participate in the

1040NR Program.

.03 An applicant that receives a proposed letter of denial may mail or deliver,

within 30 calendar days of the date of the

proposed letter of denial, a written re-

1999–21 I.R.B.

sponse to the Project Office. The applicant’s response must address the Project

Office’s reason(s) for proposing the denial to participate.

.04 Upon receipt of an applicant’s written response, the Project Office will reconsider its proposed letter of denial. The

Project Office may (1) withdraw its proposed letter of denial and accept the applicant into the 1040NR Program, or (2) finalize the proposed denial letter.

.05 If an applicant receives a final denial letter from the Project Office, the applicant is entitled to an appeal, in writing,

to the Director of Practice.

.06 The appeal must be mailed or delivered to the Project Office within 30 calendar days of the date of the final denial letter. An applicant’s written appeal must

contain a detailed explanation, with supporting documentation, of why the denial

should be reversed.

.07 The Project Office, upon receipt of

a written appeal to the Director of Practice, will forward to the Director of Practice its file on the applicant and the material described in section 13.06 of this

revenue procedure. The Project Office

will forward these materials to the Director of Practice within 15 calendar days of

receipt of the applicant’s written appeal.

.08 Failure to respond within either of

the 30-day periods described in sections

13.03 and 13.06 of this revenue procedure

irrevocably terminates an applicant’s right

to an administrative review or appeal.

.09 If an application for participation in

the 1040NR Program is denied, the applicant is ineligible to submit a new application for two years from the application

date of the denied application.

.03 Upon receipt of the 1040NR Filer’s

written response, the Project Office will

reconsider its suspension of the 1040NR

Filer. The Project Office may either (1)

withdraw its suspension letter and reinstate the 1040NR Filer, or (2) affirm the

suspension.

.04 If a 1040NR Filer receives a letter

affirming the suspension, the 1040NR

Filer is entitled to an appeal, in writing, to

the Director of Practice.

.05 The appeal must be mailed or delivered to the Project Office within 30 calendar days of the date of the letter affirming

the suspension. The 1040NR Filer’s written appeal must contain detailed reasons,

with supporting documentation, for reversal of the suspension.

.06 The Project Office, upon receipt of

a written appeal to the Director of Practice, will forward to the Director of Practice its file on the 1040NR Filer and the

material described in section 14.05 of this

revenue procedure. The Project Office

will forward these materials to the Director of Practice within 15 calendar days of

the receipt of a 1040NR Filer’s written request for appeal.

.07 Failure to appeal within either of

the 30-day periods described in sections

14.02 and 14.05 of this revenue procedure

irrevocably terminates a 1040NR Filer’s

right to an appeal.

SECTION 14. ADMINISTRATIVE

REVIEW PROCESS FOR

SUSPENSION FROM THE 1040NR

PROGRAM

This revenue procedure is effective

May 24, 1999.

.01 A 1040NR Filer that has been suspended from participation in the 1040NR

Program has the right to an administrative

review. During the administrative review

process, the suspension remains in effect.

.02 If a 1040NR Filer receives a suspension letter, the 1040NR Filer may mail or

deliver, within 30 calendar days of the date

of the suspension letter, a detailed written

explanation, with supporting documentation, of why the suspension letter should be

withdrawn. This written response should

be sent to the Project Office.

31

SECTION 15. EFFECT ON OTHER

DOCUMENTS

Rev. Proc. 98–36, 1998–23 I.R.B 10, is

superseded.

SECTION 16. EFFECTIVE DATE

SECTION 17. PROJECT OFFICE

INFORMATION

All questions regarding this revenue

procedure should be directed to:

Internal Revenue Service

Philadelphia Service Center

ATTN: DP-115-Magnetic Media

Project Office

11601 Roosevelt Blvd.

Philadelphia, PA 19154

U.S.A.

The telephone number of this office is

(215) 516-7533 (not a toll-free number)

or 800-829-6945 (a toll-free number).

May 24, 1999

Part IV. Items of General Interest

Foundations Status of Certain

Organizations

Announcement 99–54

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:

Ostrovsky Childrens Foundation,

Southfield, MI

Oswego International Sport Fishing

Collection Inc., Oswego, NY

Oswego Valley Industrial Interpretive

Center Inc., Fulton, NY

Other Things & Company, Oxford, MI

Our Fathers Divine Work Inc., Baltimore,

MD

Our Home a Nonprofit Corporation,

Omaha, NE

Our Lady of Perpetual Help School

Foundation Inc., Bakersfield, CA

Our Special Friendships Inc., Scroggins,

TX

Outagamie Conflict Resolution Center

Inc., Appleton, WI

Outreach International Ministries Inc.,

Hyde Park, NY

Outreach Nationwide Inc., Bronx, NY

Owensboro Little Theatre Inc.,

Owensboro, KY

Oxon Hill High School OHHS Air Force

Junior Reserve Officer, Fort

Washington, MD

Ozark Area Emergency Physicians

Association, Springfield, MO

P A C T People Against Car Theft Inc.,

East Orange, NJ

P A L of Bergen County Inc., Maywood,

NJ

P I M Relief Fund, Urbandale, IA

May 24, 1999

P R I D E, Asheville, NC

PAAC Inc., Salt Lake City, UT

Pace Research Inc., Appleton, WI

Pacific Vision Foundation, Chehalis, WA

Palette Mask and Lyre Studio Theater

Inc., Lake worth, FL

Palms Springs Youth Football

Association, Palm Springs, CA

Palookaville, Chicago, IL

Pandora Inc., Washington, DC

Panteras Negras Volleyball Club Inc.,

St. Louis, MO

Panthers Track Club, Friendwood, TX

Par Incorporated, Maywood, IL

Paradox Foundation-Paradox House,

Columbus, OH

Parent Action of Baltimore County Inc.,

Owings Mills, MD

Parent Organization for Highland Park

North Elementary School, Topeka,

KS

Parent Power Project Corporation,

Boston, MA

Parent School Community Association,

Grand Island, NE

Parent Support Network of Rhode Island,

Warwick, RI

Parent Training Ministries, San Pedro,

CA

Parents Activating Love Support &

Research, Olympia Fields, IL

Parents Against the HumanImmunodeficiency Virus, Urbana, IL

Parents and Friends for a Montessori

Alternative in the Public, Lincoln, NE

Parents Anonymous of the Metroplex

Inc., Dallas, TX

Parents of Children Who are Deaf or

Hard of Hearing, Ft. Dodge, IA

Parichoy Bengali Association of Greater

New Haven, New Haven, CT

Park Center Band Endowment Fund,

Brooklyn Park, MN

Park Conservancy Inc., St. Louis, MO

Park Place Community Development

Corporation, Norfolk, VA

Parker District Family Association,

Taylors, SC

Parker Runaway Inc., Parker, CO

Parmer County Crime Stoppers Inc.,

Farwell, TX

Part of the Solution of Massachusetts

Inc., Boston, MA

Partners for Safety, Pottstown, PA

Partners in Catholic Education, Lake

Jackson, TX

32

Partnership for Environmental

Technology Education Inc.,

Sacramento, CA

Partnership for Excellence Hawthorn

Education Foundation, Vernon Hills,

IL

Partnership Institute, Glen Ellyn, IL

Paschima Badarikashram, Denver, CO

Pasco International Inc., North

Brookfield, MA

Pass It On, Ps, CA

Passaic River Basin Alliance Inc.,

Pompton Lakes, NJ

Pastor Julian Childrens Fund, Fort Mill,

SC

Path, Dallas, TX

Paul Copeland Ministries Inc., Columbia

City, IN

Paul L. Blankenship Memorial

Foundation, Cedar Crest, NM

Pauline Hollander Scholarship Fund for

Registered Nurses Inc., Pomona, NJ

Peace for Families, Roseville, CA

Peace Inc., Texas City, TX

Peace Studies Initiative, Asheville, NC

Peaceable Kingdom Inc., Hampden, ME

Pediplace, Lewisville, TX

Peer to Peer, Kansas City, MO

Pegasus Therapeutic Riding Center Inc.,

Montrose, CO

Penn Hills Veterans Monument Fund,

Verona, PA

Pennsylvania Anthracite Miners

Memorial fund, Shenandoah, PA

Pennsylvania Rep Company Inc.,

Stroudsburg, PA

Penobscot Art Group Association, Detroit,

MI

People Assisting Little Stars, Buffalo

Grove, IL

People Encouraging People Foundation,

San Luis Obispo, CA

People for Action and Community

Togetherness, Groton, CT

People to People Benefit Corporation,

Denver, CO

People with a Vision, Harrisburg, PA

Peoples Outreach Ministries, Newport

News, VA

Perkasie Community Ambulance

Corporation, Perkasie, PA

Perpetual Affordable Housing Foundation

Inc., Scottsdale, AZ

Perry Community Development Inc.,

Perry, IA

Persian Culture Center, Nashville, TN

1999–21 I.R.B.

Personal and Career Development Ace

Inc., Memphis, TN

Personal Development Corporation,

Rochester, NY

Pet Ethical Treatment Society, Smithville,

MO

Pet Parents Foundation Inc., Quincy, MA

Pet Survival Inc., Albany, NY

Petach Tikva Foundation Inc., Miami

Beach, FL

Pets are Loving Support Inc., Oklahoma

City, OK

Phase V Limited of Delaware Inc.,

Dover, DE

Phil Clanton Ministries Inc., Harvest, AL

Philadelphia Alliance for Community

Improvement OCV, Philadelphia, PA

Philadelphia Area Minority Job Fair,

Philadelphia, PA

Philadelphia Theater of Classic Works

Inc., Audobon, NJ

Philadelphia Virtuosi Chamber Orchestra

Inc., Philadelphia, PA

Phoenix Hill Association Inc., Louisville,

KY

Phoenix Rheumatology Association Inc.,

Scottsdale, AZ

Piedmont Challenger League Inc.,

Kernersville, NC

Piedmont Suzuki Players, Chapel Hill,

NC

Pierce County Food Pantry Inc.,

Blackshear, GA

Pilgrim Inc., Chicago, IL

Pilgrims Peace Center, Bethlehem, PA

Pine Creek Land Conservation Trust Inc.,

Ingomar, PA

Pine Point Treatment Center Inc.,

Jackson, TN

Pine Street Inn Housing Inc., Boston,

MA

Pineland Early Learning Center Inc.,

Pineland, TX

Pious Propagating Islam Over United

States, Fort Worth, TX

Pittsburgh Air & Space Museum,

Pittsburgh, PA

Pittsburgh North Optimist Foundation,

Pittsburgh, PA

Pittsburgh Section of the American Assn

for Clinical Chemistry Inc., Pittsburgh,

PA

Pittsburgh Theatre Laboratories,

Pittsburgh, PA

Plainville Farmington Pop Warner

Football Devils Inc., Farmington, CT

Plainville-North Attleborough Santa

Fund Inc., Plainville, MA

1999–21 I.R.B.

Planetary Institute for Ecology, Inc.,

Cumberland, RI

Planned Life Assistance Network of

Washington State, Seattle, WA

Plano Senior Coalition Inc., Plano, TX

Plaquemines Parish Community Health

Center Inc., Port Sulphur, LA

Platte Valley Community Development

Initiative Inc., Scottsbluff, NE

Platte Valley Playhouse Foundation,

Columbus, NE

Plattsmouth Baseball Parents

Association, Plattsmouth, NE

Plattsmouth Economic Development

Corporation, Plattsmouth, NE

Play Ground Theatre Company, Atlanta,

GA

Pleasantville High School Rosbury

Scholarship Fund Inc., Armonk, NY

Plymouth Advancement Association Inc.,

Plymouth, WI

Plymouth Art Foundation Inc., Plymouth,

WI

Plymouth-Canton Cheerleaders Booster

Club, Plymouth, MI

Point Forward Inc., Mineral Point, WI

Police Athletic League of Hialeah Inc.,

Hialeah, FL

Police Athletic League of Lakeland Inc.,

Lakeland, FL

Policy Dynamics Institute, Parker, CO

Polish American Legal Defense and

Education Fund Inc., New York, NY

Polish Students Association, New York,

NY

Political Prayer Partners Inc., Tulsa, OK

Ponca City Tomorrow Foundation Inc.,

Ponca City, OK

Ponca He-Thush-Ka Society, Guthrie,

OK

Ponce Coalition Inc., Atlanta, GA

Pont-Aven School of Art Inc., Acton,

MA

Pope County 4-H Association Inc.,

Russellville, AR

Portage Lakes Advisory Council Inc.,

Akron, OH

Portland Early Music Consort, Portland,

ME

Portsmouth Community Redevelopment

Corporation, Portland, OR

Positive Beginnings Teen Services Inc.,

Cincinnati, OH

Post Modern Society Incorporated,

Indianapolis, IN

Poteau Valley Humane Society, Poteau,

OK

Potters House Inc., Washington, DC

33

Pottsville Volunteer Fire Department Inc.,

Pottsville, TX

Poulsbo Players, Poulsbo, WA

Poway Pony-Colt Baseball Inc., Poway,

CA

Power Plus Ministries Inc., MacClenny,

FL

Powersizing Educational Programs Inc.,

St. Louis, MO

Pownal Food Pantry, Pownal, VT

Prairie Edge Inc., Oberlin, KS

Prairie Life Historical Foundation Inc.,

Wellsville, MO

Prairie Wind Animal Refuge, Agate, CO

Praise Mountain Ministries Inc.,

Florissant, Co

Praise the Lord Ministries, Lakewood,

CA

Prajapati Association Inc., Union City,

NJ

Prattville Fall Baseball Inc., Wetumpka,

AL

Pre-T E C Inc., Chicago, IL

Presbyterian Village Redford, Redford,

MI

Preservation Association of Lincoln,

Lincoln, NE

Preservation of Abandoned Dogs and

Cats Society, Marshall, OK

Preserveamerica Educational Foundation

Inc., Salisbury, NC

Presidio Theater Company Inc., Tucson,

AZ

Preble County Youth Foundation Inc.,

Eaton, OH

Precious Heritage Academy Inc.,

Advance, IN

Pregnancy Testing and Guidance Center

of Grady County Inc., Chickasha, OK

Prenatal Care Steering Committee Inc.,

New York, NY

Prentiss Kiddie Kollege, Prentiss, MS

Presbyterian Village East, New

Baltimore, MI

Press on Ministries, Kenner, LA

Preventive Care Centers Inc. a Delaware

Corporation, Ocean, NJ

Pride Africa, Arlington, VA

Pride People Resisting Increased

Deceptive Encounters, Heflin, AL

Priime Tiime Today, Littleton, CO

Primary Care Systems Inc., Cambridge,

MD

Primary Preparatory, Memphis, TN

Primary Purpose Family Recovery Center

Inc., Wheat Ridge, CO

Principles of Knowledge Representation

& Reasoning Inc., Waban, MA

May 24, 1999

Prisoners with AIDS Rights Advocacy

Group Inc., Jonesboro, GA

Private Arts Press, Chicago, IL

Private Mathison Manor Resident

Management Corporation, Centreville,

IL

Pro Active Health Care Institute, Pueblo,

CO

Pro Deo et Fratribus U S A Inc.,

Wappingers Falls, NY

Pro Fide Inc., Bloomfield Hills, MI

Pro Life Maryland Education Foundation

Inc., Annapolis, MD

Pro Tect Kids, Dallas, TX

Problem Pregnancy of Worchester Inc.,

Worchester, MA

Problems to Solutions Inc., Milwaukee,

WI

Professional Credit Financial Institute

Services Inc., Suwanee, GA

Professional Football Alumni Inc., New

Orleans, LA

Professional Foundation and Health

Coalition Inc., Berea, KY

Professional Institute for Advanced

Wound Recovery Inc., Miami, FL

Professionalism in Writing School Inc.,

Tulsa, OK

Progressive Firefighters of Fairfax

Foundation Inc., Springfield, VA

May 24, 1999

Progressive Pioneers Inc., Cleveland, OH

Project 18, Marshall, VA

Project 2000 Inc., Richardson, TX

Project Academy Inc., Henderson, TX

Project Cope Count on Plenty Education,

Westport, CT

Project – Fannins Youth Inc., Bonham,

TX

Project Friendship of Maryland Inc.,

Annapolis, MD

Project Harmony-Baton Rouge, Baton

Rouge, LA

Project ID Inc., Chicago, IL

Project Idaho Inc., Lewiston, ID

Project Impact Dekalb County Inc.,

Lithonia, GA

Project Independence Inc., The

Woodlands, TX

Project L A W S Inc., Phoenix, AZ

Project Longlife Inc., Columbus, MS

Project Poly Inc., Port Arthur, TX

Project Simeon 2000, Chicago, IL

Project Success Coalition, Ogden, UT

Project Waynoka Foundation, Waynoka,

OK

Projects for a New Millennium Inc.,

Stony Creek, CT

Promise Place, Harrisburg, PA

Proprietary Associates Inc., Philadelphia,

PA

34

Prosperity House Developmental Center,

Dallas, TX

Providence the First Serbian Artists

Association, Chicago, IL

Providers of Youth and Family Social

Services, Philadelphia, PA

Public Affairs Producers Co., Missoula,

MT

Public Intelligence Inc., New York, NY

Public Interest Law Project Inc.,

Bridgeport, CT

Public Service Institute Inc., Herman, PA

Puppy Love Inc., Kansas City, MO

Purple Paw Foundation, Northbrook, IL

Purvi Patel Foundation Inc., Cooper City,

FL

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.

1999–21 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.

1999–21 I.R.B.

35

May 24, 1999

Numerical Finding List1

Bulletins 1999–1 through 1999–20

Announcements:

99–1, 1999–2 I.R.B. 41

99–2, 1999–2 I.R.B. 44

99–3, 1999–3 I.R.B. 15

99–4, 1999–3 I.R.B. 15

99–5, 1999–3 I.R.B. 16

99–6, 1999–4 I.R.B. 24

99–7, 1999–2 I.R.B. 45

99–8, 1999–4 I.R.B. 24

99–9, 1999–4 I.R.B. 24

99–10, 1999–5 I.R.B. 63

99–11, 1999–5 I.R.B. 64

99–12, 1999–5 I.R.B. 65

99–13, 1999–6 I.R.B. 18

99–14, 1999–7 I.R.B. 60

99–15, 1999–8 I.R.B. 78

99–16, 1999–8 I.R.B. 80

99–17, 1999–9 I.R.B. 59

99–18, 1999–13 I.R.B. 21

99–19, 1999–10 I.R.B. 63

99–20, 1999–11 I.R.B. 53

99–21, 1999–11 I.R.B. 55

99–22, 1999–12 I.R.B. 32

99–23, 1999–15 I.R.B. 7

99–24, 1999–14 I.R.B. 12

99–25, 1999–12 I.R.B. 35

99–26, 1999–14 I.R.B. 20

99–27, 1999–13 I.R.B. 22

99–28, 1999–13 I.R.B. 25

99–29, 1999–13 I.R.B. 25

99–30, 1999–13 I.R.B. 26

99–31, 1999–13 I.R.B. 26

99–32, 1999–14 I.R.B. 20

99–33, 1999–14 I.R.B. 21

99–34, 1999–15 I.R.B. 8

99–35, 1999–14 I.R.B. 22

99–36, 1999–16 I.R.B. 10

99–37, 1999–15 I.R.B. 9

99–38, 1999–15 I.R.B. 9

99–39, 1999–15 I.R.B. 10

99–40, 1999–16 I.R.B. 10

99–41, 1999–16 I.R.B. 10

99–42, 1999–16 I.R.B. 11

99–43, 1999–16 I.R.B. 11

99–44, 1999–16 I.R.B. 12

99–45, 1999–16 I.R.B. 12

99–46, 1999–16 I.R.B. 13

99–48, 1999–17 I.R.B. 20

99–49, 1999–18 I.R.B. 7

99–50, 1999–19 I.R.B. 6

99–51, 1999–19 I.R.B. 6

99–52, 1999–19 I.R.B. 9

99–53, 1999–20 I.R.B. 95

Notices:

99–1, 1999–2 I.R.B. 8

99–2, 1999–2 I.R.B. 8

99–3, 1999–2 I.R.B. 10

99–4, 1999–3 I.R.B. 9

99–5, 1999–3 I.R.B. 10

99–6, 1999–3 I.R.B. 12

99–7, 1999–4 I.R.B. 23

99–8, 1999–5 I.R.B. 26

99–9, 1999–4 I.R.B. 23

99–10, 1999–6 I.R.B. 14

99–11, 1999–8 I.R.B. 56

Notices—Continued

Revenue Procedures—Continued

99–12, 1999–9 I.R.B. 44

99–13, 1999–10 I.R.B. 26

99–14, 1999–11 I.R.B. 7

99–15, 1999–12 I.R.B. 20

99–16, 1999–13 I.R.B. 10

99–17, 1999–14 I.R.B. 6

99–18, 1999–16 I.R.B. 4

99–19, 1999–16 I.R.B. 4

99–20, 1999–17 I.R.B. 16

99–21, 1999–17 I.R.B. 19

99–22, 1999–19 I.R.B. 5

99–23, 1999–20 I.R.B. 73

99–24, 1999–20 I.R.B. 74

99–25, 1999–20 I.R.B. 75

99–17, 1999–7 I.R.B. 52

99–18, 1999–11 I.R.B. 7

99–19, 1999–13 I.R.B. 10

99–20, 1999–14 I.R.B. 7

99–21, 1999–17 I.R.B. 18

99–22, 1999–15 I.R.B. 5

99–23, 1999–16 I.R.B. 5

Proposed Regulations:

REG–209103–89, 1999–11 I.R.B. 10

REG–209619–93, 1999–10 I.R.B. 28

REG–245562–96, 1999–9 I.R.B. 45

REG–104072–97, 1999–11 I.R.B. 12

REG–114663–97, 1999–6 I.R.B. 15

REG–114664–97, 1999–11 I.R.B. 21

REG–116826–97, 1999–10 I.R.B. 40

REG–118620–97, 1999–9 I.R.B. 46

REG–120168–97, 1999–12 I.R.B. 21

REG–121806–97, 1999–10 I.R.B. 46

REG–100729–98, 1999–14 I.R.B. 9

REG–104924–98, 1999–10 I.R.B. 47

REG–105964–98, 1999–12 I.R.B. 22

REG–106004–98, 1999–20 I.R.B. 77

REG–106177–98, 1999–12 I.R.B. 25

REG–106219–98, 1999–9 I.R.B. 51

REG–106386–98, 1999–12 I.R.B. 31

REG–106388–98, 1999–11 I.R.B. 27

REG–106564–98, 1999–10 I.R.B. 53

REG–106902–98, 1999–8 I.R.B. 57

REG–106905–98, 1999–11 I.R.B. 39

REG–110524–98, 1999–10 I.R.B. 55

REG–111435–98, 1999–7 I.R.B. 55

REG–113694–98, 1999–7 I.R.B. 56

REG–111435–98, 1999–7 I.R.B. 55

REG–113744–98, 1999–10 I.R.B. 59

REG–114841–98, 1999–11 I.R.B. 41

REG–115433–98, 1999–9 I.R.B. 54

REG–116099–98, 1999–12 I.R.B. 34

REG–116824–98, 1999–7 I.R.B. 57

REG–117620–98, 1999–7 I.R.B. 59

REG–118662–98, 1999–13 I.R.B. 13

REG–119192–98, 1999–11 I.R.B. 45

REG–121865–98, 1999–8 I.R.B. 63

REG–103851–99, 1999–20 I.R.B. 93

Revenue Procedures:

99–1, 1999–1 I.R.B. 6

99–2, 1999–1 I.R.B. 73

99–3, 1999–1 I.R.B. 103

99–4, 1999–1 I.R.B. 115

99–5, 1999–1 I.R.B. 158

99–6, 1999–1 I.R.B. 187

99–7, 1999–1 I.R.B. 226

99–8, 1999–1 I.R.B. 229

99–9, 1999–2 I.R.B. 17

99–10, 1999–2 I.R.B. 11

99–11, 1999–2 I.R.B. 14

99–12, 1999–3 I.R.B. 13

99–13, 1999–5 I.R.B. 52

99–14, 1999–5 I.R.B. 56

99–15, 1999–7 I.R.B. 42

99–16, 1999–7 I.R.B. 50

Revenue Rulings:

99–1, 1999–2 I.R.B. 4

99–2, 1999–2 I.R.B. 5

99–3, 1999–3 I.R.B. 4

99–4, 1999–4 I.R.B. 19

99–5, 1999–6 I.R.B. 8

99–6, 1999–6 I.R.B. 6

99–7, 1999–5 I.R.B. 4

99–8, 1999–6 I.R.B. 8

99–9, 1999–7 I.R.B. 14

99–10, 1999–10 I.R.B. 10

99–11, 1999–10 I.R.B. 18

99–12, 1999–11 I.R.B. 6

99–13, 1999–10 I.R.B. 4

99–14, 1999–13 I.R.B. 3

99–15, 1999–12 I.R.B. 4

99–16, 1999–13 I.R.B. 5

99–17, 1999–14 I.R.B. 4

99–18, 1999–14 I.R.B. 3

99–19, 1999–15 I.R.B. 3

99–20, 1999–18 I.R.B. 5

99–21, 1999–18 I.R.B. 3

99–22, 1999–19 I.R.B. 3

99–23, 1999–20 I.R.B. 3

Treasury Decisions:

8789, 1999–3 I.R.B. 5

8791, 1999–5 I.R.B. 7

8792, 1999–7 I.R.B. 36

8793, 1999–7 I.R.B. 15

8794, 1999–7 I.R.B. 4

8795, 1999–7 I.R.B. 8

8796, 1999–4 I.R.B. 16

8797, 1999–5 I.R.B. 5

8798, 1999–12 I.R.B. 16

8799, 1999–6 I.R.B. 10

8800, 1999–4 I.R.B. 20

8801, 1999–4 I.R.B. 5

8802, 1999–4 I.R.B. 10

8803, 1999–12 I.R.B. 15

8804, 1999–12 I.R.B. 5

8805, 1999–5 I.R.B. 14

8806, 1999–6 I.R.B. 4

8807, 1999–9 I.R.B. 33

8808, 1999–10 I.R.B. 21

8809, 1999–7 I.R.B. 27

8810, 1999–7 I.R.B. 19

8811, 1999–10 I.R.B. 19

8812, 1999–8 I.R.B. 19

8813, 1999–9 I.R.B. 34

8814, 1999–9 I.R.B. 4

8815, 1999–9 I.R.B. 31

8816, 1999–8 I.R.B. 4

8817, 1999–8 I.R.B. 51

8818, 1999–17 I.R.B. 3

8819, 1999–20 I.R.B. 5

1 A cumulative list of all revenue rulings, revenue

procedures, Treasury decisions, etc., published in

Internal Revenue Bulletins 1998–1 through 1998–52

will be found in Internal Revenue Bulletin 1999–1,

dated January 4, 1999.

May 24, 1999

36

1999–21 I.R.B.

Finding List of Current Action on

Previously Published Items1

Bulletins 1999–1 through 1999–20

Notices:

92–36

Modified by

Rev. Proc. 99–23, 1999–16 I.R.B. 5

94–16

Obsoleted by

Notice 99–22, 1999–19 I.R.B. 5

96–64

Modified by

Rev. Proc. 99–23, 1999–16 I.R.B. 5

98–39

Modified by

Rev. Proc. 99–23, 1999–16 I.R.B. 5

98–52

Modified by

Rev. Proc. 99–23, 1999–16 I.R.B. 5

99–5

Modified by

Rev. Proc. 99–23, 1999–16 I.R.B. 5

Revenue Procedures—Continued

98–5

Superseded by

99–5, 1999–1 I.R.B. 158

98–6

Superseded by

99–6, 1999–1 I.R.B. 187

98–7

Superseded by

99–7, 1999–1 I.R.B. 226

98–8

Superseded by

99–8, 1999–1 I.R.B. 229

98–14

Modified by

99–23, 1999–16 I.R.B. 5

98–22

Modified and amplified by

99–13, 1999–5 I.R.B. 52

98–28

Obsoleted by (except as provided in section 5.02 of)

99–22, 1999–15 I.R.B. 5

Revenue Procedures:

98–56

Superseded by

99–3, 1999–1 I.R.B. 103

78–10

Obsoleted by

99–12, 1999–3 I.R.B. 13

98–63

Modified by announcement

99–7, 1999–2 I.R.B. 45

89–9

Modified by

99–23, 1999–16 I.R.B. 5

Revenue Rulings:

89–13

Modified by

99–23, 1999–16 I.R.B. 5

92–19

Supplemented in part by

99–10, 1999–10 I.R.B. 10

93–39, section 13

Modified by

99–23, 1999–16 I.R.B. 5

94–56

Superseded by

99–9, 1999–2 I.R.B. 17

95–12

Modified by

99–23, 1999–16 I.R.B. 5

97–23

Superseded by

99–3, 1999–1 I.R.B. 103

97–41

Modified by

99–23, 1999–16 I.R.B. 5

98–1

Superseded by

99–1, 1999–1 I.R.B. 6

98–2

Superseded by

99–2, 1999–1 I.R.B. 73

98–3

Superseded b

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