Bulletin No. 1998–29

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July 20, 1998

Internal Revenue

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HIGHLIGHTS

OF THIS ISSUE

These synopses are intended only as aids to the reader in

identifying the subject matter covered. They may not be

relied upon as authoritative interpretations.

INCOME TAX

EMPLOYMENT TAX

T.D. 8773, page 4.

REG–116608–97, page 12.

T.D. 8771, page 6.

REG–110403–98, page 11.

Temporary and proposed regulations under section 32 of

the Code provide guidance to taxpayers who have been denied the earned income credit (EIC) as a result of the deficiency procedures and wish to claim the EIC in a subsequent

year. A public hearing on the proposed regulations will be

held on October 21, 1998.

Final, temporary, and proposed regulations under section

6302 of the Code relate to the deposit of federal employment taxes.

EXCISE TAX

Notice 98–36, page 8.

EMPLOYEE PLANS

Announcement 98–62, page 13.

This announcement requests public comments relating to

section 1510 of the Taxpayer Relief Act of 1997, which provides that the Secretary of the Treasury shall issue guidance no later than December 31, 1998, regarding the use

of new technologies by sponsors and administrators of retirement plans while maintaining the protection of the rights

of participants and beneficiaries.

EXEMPT ORGANIZATIONS

Announcement 98–68, page 14.

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

Finding Lists begin on page 18.

Department of the Treasury

Internal Revenue Service

T.D. 8685, 1996–2 C.B. 174, relating to the deposit of excise taxes, is amended.

ADMINISTRATIVE

Rev. Proc. 98–43, page 8.

Disclosure Authorization List, Rev. Proc. 80–46, 1980–2

C.B. 779, is obsolete. The Service advises a business entity

to use Form 8821, Tax Information Authorization, to designate its employees to receive its tax information.

REG–104641–97, page 9.

Proposed regulations under section 1092 of the Code provides guidance on the application of the rules governing

qualified covered calls. A public hearing will be held on

November 4, 1998.

Mission of the Service

ucts and services; and perform in a manner warranting

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

The purpose of the Internal Revenue Service is to collect

the proper amount of tax revenue at the least cost; serve

the public by continually improving the quality of our prod-

Statement of Principles

of Internal Revenue

Tax Administration

The Service also has the responsibility of applying and

administering the law in a reasonable, practical manner.

Issues should only be raised by examining officers when

they have merit, never arbitrarily or for trading purposes.

At the same time, the examining officer should never hesitate to raise a meritorious issue. It is also important that

care be exercised not to raise an issue or to ask a court to

adopt a position inconsistent with an established Service

position.

The function of the Internal Revenue Service is to administer the Internal Revenue Code. Tax policy for raising revenue

is determined by Congress.

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

policy by correctly applying the laws enacted by Congress;

to determine the reasonable meaning of various Code provisions in light of the Congressional purpose in enacting them;

and to perform this work in a fair and impartial manner, with

neither a government nor a taxpayer point of view.

Administration should be both reasonable and vigorous. It

should be conducted with as little delay as possible and

with great courtesy and considerateness. It should never

try to overreach, and should be reasonable within the

bounds of law and sound administration. It should, however, be vigorous in requiring compliance with law and it

should be relentless in its attack on unreal tax devices and

fraud.

At the heart of administration is interpretation of the Code. It

is the responsibility of each person in the Service, charged

with the duty of interpreting the law, to try to find the true

meaning of the statutory provision and not to adopt a

strained construction in the belief that he or she is “protecting the revenue.” The revenue is properly protected only

when we ascertain and apply the true meaning of the statute.

Introduction

The Internal Revenue Bulletin is the authoritative instrument

of the Commissioner of Internal Revenue for announcing official rulings and procedures of the Internal Revenue Service

and for publishing Treasury Decisions, Executive Orders, Tax

Conventions, legislation, court decisions, and other items of

general interest. It is published weekly and may be obtained

from the Superintendent of Documents on a subscription

basis. Bulletin contents of a permanent nature are consolidated semiannually into Cumulative Bulletins, which are sold

on a single-copy basis.

dures must be considered, and Service personnel and others concerned are cautioned against reaching the same conclusions in other cases unless the facts and circumstances

are substantially the same.

The Bulletin is divided into four parts as follows:

Part I.—1986 Code.

This part includes rulings and decisions based on provisions

of the Internal Revenue Code of 1986.

It is the policy of the Service to publish in the Bulletin all substantive rulings necessary to promote a uniform application

of the tax laws, including all rulings that supersede, revoke,

modify, or amend any of those previously published in the

Bulletin. All published rulings apply retroactively unless otherwise indicated. Procedures relating solely to matters of internal management are not published; however, statements

of internal practices and procedures that affect the rights

and duties of taxpayers are published.

Part II.—Treaties and Tax Legislation.

This part is divided into two subparts as follows: Subpart A,

Tax Conventions, and Subpart B, Legislation and Related

Committee Reports.

Part III.—Administrative, Procedural, and Miscellaneous.

To the extent practicable, pertinent cross references to

these subjects are contained in the other Parts and Subparts. Also included in this part are Bank Secrecy Act Administrative Rulings. Bank Secrecy Act Administrative Rulings

are issued by the Department of the Treasury’s Office of the

Assistant Secretary (Enforcement).

Revenue rulings represent the conclusions of the Service on

the application of the law to the pivotal facts stated in the

revenue ruling. In those based on positions taken in rulings

to taxpayers or technical advice to Service field offices,

identifying details and information of a confidential nature

are deleted to prevent unwarranted invasions of privacy and

to comply with statutory requirements.

Part IV.—Items of General Interest.

With the exception of the Notice of Proposed Rulemaking

and the disbarment and suspension list included in this part,

none of these announcements are consolidated in the Cumulative Bulletins.

Rulings and procedures reported in the Bulletin do not have

the force and effect of Treasury Department Regulations,

but they may be used as precedents. Unpublished rulings

will not be relied on, used, or cited as precedents by Service

personnel in the disposition of other cases. In applying published rulings and procedures, the effect of subsequent legislation, regulations, court decisions, rulings, and proce-

The first Bulletin for each month includes a cumulative index

for the matters published during the preceding months.

These monthly indexes are cumulated on a semiannual basis

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

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

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

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

Section 32.—Earned Income

26 CFR 1.32–3T: Eligibility requirements

(temporary).

T.D. 8773

DEPARTMENT OF THE TREASURY

Internal Revenue Service

26 CFR Parts 1 and 602

EIC Eligibility Requirements

AGENCY: Internal Revenue Service

(IRS), Treasury.

ACTION: Temporary regulations.

SUMMARY: This document contains

temporary regulations that provide guidance to taxpayers who have been denied

the earned income credit (EIC) as a result

of the deficiency procedures and wish to

claim the EIC in a subsequent year. The

temporary regulations apply to taxpayers

claiming the EIC for taxable years beginning after December 31, 1997, where the

taxpayer’s EIC claim was denied for a

taxable year beginning after December

31, 1996. The text of these temporary

regulations also serves as the text of proposed regulations set forth in REG–

116608–97, page 12 of this Bulletin.

DATES: Effective date: June 25, 1998.

Applicability dates: For dates of applicability, see §1.32–3T(f) of these regulations.

FOR FURTHER INFORMATION CONTACT: Karin Loverud at 202-622-6060

(not a toll-free number).

SUPPLEMENTARY INFORMATION:

Paperwork Reduction Act

These regulations are being issued

without prior notice and public procedure

pursuant to the Administrative Procedure

Act (5 U.S.C. 553). For this reason, the

collection of information contained in

these regulations has been reviewed and,

pending receipt and evaluation of public

comments, approved by the Office of

Management and Budget under control

number 1545–1575. Responses to this

July 20, 1998

collection of information are mandatory.

An agency may not conduct or sponsor,

and a person is not required to respond to,

a collection of information unless it displays a valid control number assigned by

the Office of Management and Budget.

For further information concerning this

collection of information, and where to

submit comments on the collection of information and the accuracy of the estimated burden, and suggestions for reducing this burden, please refer to the

preamble to the cross-referencing notice

of proposed rulemaking published in

REG–116608–97.

Books or records relating to a collection of information must be retained as

long as their contents may become material in the administration of any internal

revenue law. Generally, tax returns and

tax return information are confidential, as

required by 26 U.S.C. 6103.

Background

This document contains amendments to

the Income Tax Regulations (26 CFR part

1) providing guidance relating to the requirement that taxpayers who are denied

the EIC for a taxable year demonstrate

their eligibility to claim the EIC in a subsequent taxable year. This requirement is

described in section 32(k)(2), which was

added by section 1085(a)(1) of the Taxpayer Relief Act of 1997 (Public Law

105–34, 111 Stat. 788).

Section 32(k)(2) pertains to taxpayers

who are denied the EIC as a result of the

deficiency procedures under subchapter B

of chapter 63 (the deficiency procedures).

A taxpayer who has been denied the EIC

for any taxable year as a result of the deficiency procedures is ineligible to claim

the EIC for a subsequent taxable year unless the taxpayer provides information required by the Secretary demonstrating eligibility for the EIC. If the taxpayer

demonstrates eligibility for the EIC, the

taxpayer is not required to provide this information in the future unless the IRS

again denies the EIC as a result of the deficiency procedures.

If the taxpayer fails to provide the required information or the information

provided does not demonstrate eligibility

for the EIC, the requirements of section

32(k)(2) are not satisfied. In such circumstances, the IRS can treat the failure to

meet these requirements as a mathematical or clerical error.

In the case of deficiencies attributable

to certain mathematical and clerical errors, enumerated in section 6213(g), the

IRS is authorized to make a summary assessment, without following the normal

deficiency procedures. In the case of EIC

claims, mathematical and clerical errors

can include both errors that apply generally to all returns and certain errors specific to the EIC. For example, mathematical and clerical errors include situations

in which (1) a taxpayer fails to provide a

correct taxpayer identification number required under section 32, or (2) a taxpayer

who claims the EIC with respect to net

earnings from self-employment fails to

pay the proper amount of self-employment tax on the net earnings. As noted

above, the IRS is now authorized to treat

failure to meet the requirements of section

32(k)(2) as a mathematical or clerical

error.

Ineligibility for the EIC under these

new rules is subject to review by the

courts.

The new provision applies to taxpayers

who are denied the EIC on their return for

any taxable year beginning after 1996.

Explanation of Provisions

A taxpayer who has been denied the

EIC, in whole or in part, as a result of deficiency procedures is ineligible to file a

return claiming the EIC subsequent to the

denial until the taxpayer provides evidence of eligibility for the EIC. Deficiency procedures include administrative

procedures (other than procedures related

to mathematical or clerical errors) that result in an assessment of a deficiency in

tax, whether or not a notice of deficiency

is issued. To demonstrate current eligibility, the regulations require the taxpayer to

complete Form 8862, Information To

Claim Earned Income Credit After Disallowance. Form 8862 contains a series of

questions designed to assist the IRS in determining whether the taxpayer is eligible

to claim the EIC under section 32 for the

subsequent taxable year. A taxpayer fails

to demonstrate eligibility if, for example,

1998–29 I.R.B.

the form is incomplete or any item of information on the form is incorrect or inconsistent with any item on the return. If

the taxpayer properly demonstrates eligibility for the EIC, the taxpayer is not required to submit Form 8862 in the future

unless the IRS again denies the EIC as a

result of the deficiency procedures.

The regulations require the taxpayer to

attach Form 8862 to the first income tax

return on which the taxpayer claims the

EIC after the EIC has been denied as a result of the deficiency procedures. The

EIC is denied as a result of the deficiency

procedures when an assessment of a deficiency is made (other than as a mathematical or clerical error under section

6213(b)(1)).

The Treasury Department and the IRS

anticipate that the Commissioner of Internal Revenue may require taxpayers to

provide documentary evidence in addition

to Form 8862. Whether or not the Commissioner requires taxpayers to provide

documentary evidence in addition to

Form 8862, the Commissioner may

choose to examine any return claiming

the EIC for which Form 8862 is required.

The regulations provide that if the taxpayer fails to properly complete Form

8862 or does not demonstrate eligibility

for the EIC, the provisions of section

32(k)(2) are not satisfied. In such circumstances, the IRS can deny the EIC as a

mathematical or clerical error under section 6213(g)(2)(J) [(K)] (relating to the

omission of information required by section 32(k)(2)). If a taxpayer’s claim for

the EIC is denied under section

6213(g)(2)(J) [(K)], the taxpayer must attach Form 8862 to the next return for

which the EIC is claimed.

The regulations provide that if two individuals marry after one has been denied

the EIC as a result of the deficiency procedures, the eligibility requirements apply

when they file a joint return and claim the

EIC. For example, two unmarried taxpayers have qualifying children and claim

the EIC. The taxpayers subsequently

marry. For a taxable year preceding the

marriage, one of the taxpayers was denied

the EIC under the deficiency procedures

and has not established eligibility for a

subsequent year. In this situation, if they

claim the EIC for the taxable year in

which they marry, the demonstration of

eligibility rules will apply.

1998–29 I.R.B.

Special Analyses

It has been determined that these regulations are not a significant regulatory action as defined in Executive Order 12866.

Therefore, a regulatory assessment is not

required. It also has been determined that

section 553(b) of the Administrative Procedure Act (5 U.S.C. chapter 5) does not

apply to these regulations.

It is hereby certified that these regulations will not have a significant economic

impact on a substantial number of small

entities. This certification is based upon

the fact that the underlying statute applies

only to individuals. Therefore, a Regulatory Flexibility Analysis under the Regulatory Flexibility Act (5 U.S.C. chapter 6)

is not required.

Pursuant to section 7805(f), these temporary regulations will be submitted to

the Chief Counsel for Advocacy of the

Small Business Administration for comment on their impact on small business.

Drafting Information

The principal author of these regulations is Karin Loverud of the Office of the

Associate Chief Counsel (Employee Benefits and Exempt Organizations), IRS.

However, other personnel from the IRS

and Treasury Department participated in

their development.

Adoption of Amendments to the

Regulations

Accordingly, 26 CFR part 1 is amended

as follows:

PART 1—INCOME TAXES

Paragraph 1. The authority citation for

part 1 continues to read in part as follows:

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

Par. 2. Section 1.32–3T is added to

read as follows:

§1.32–3T Eligibility Requirements

(temporary).

(a) In general. A taxpayer who has

been denied the earned income credit

(EIC), in whole or in part, as a result of

the deficiency procedures under subchapter B of chapter 63 (deficiency procedures) is ineligible to file a return claiming the EIC subsequent to the denial until

the taxpayer demonstrates eligibility for

the EIC in accordance with paragraph (c)

of this section. If a taxpayer demonstrates

eligibility for a taxable year in accordance

with paragraph (c) of this section, the taxpayer need not comply with those requirements for any subsequent taxable year unless the Service again denies the EIC as a

result of the deficiency procedures.

(b) Denial of the EIC as a result of the

deficiency procedures. For purposes of

this section, denial of the EIC as a result of

the deficiency procedures occurs when a

tax on account of the EIC is assessed as a

deficiency (other than as a mathematical

or clerical error under section 6213(b)(1)).

case of a taxpayer to whom paragraph (a)

of this section applies, and except as otherwise provided by the Commissioner, no

claim for the EIC filed subsequent to the

denial is allowed unless the taxpayer properly completes Form 8862, Information To

Claim Earned Income Credit After Disallowance, demonstrating eligibility for the

EIC, and otherwise is eligible for the EIC.

If any item of information on Form 8862

is incorrect or inconsistent with any item

on the return, the taxpayer will be treated

as not demonstrating eligibility for the

EIC. The taxpayer must attach Form 8862

to the taxpayer’s first income tax return on

which the taxpayer claims the EIC after

the EIC has been denied as a result of the

deficiency procedures.

(d) Failure to demonstrate eligibility.

If a taxpayer to whom paragraph (a) of

this section applies fails to satisfy the requirements of paragraph (c) of this section with respect to a particular taxable

year, the IRS can deny the EIC as a mathematical or clerical error under section

6213(g)(2)(J) [(K)].

(e) Special rule where one spouse denied EIC. The eligibility requirements set

forth in this section apply to taxpayers filing a joint return where one spouse was

denied the EIC for a taxable year prior to

marriage and has not established eligibility as either an unmarried or married taxpayer for a subsequent taxable year.

(f) Effective date. This section applies

to returns claiming the EIC for taxable

years beginning after December 31,

1997, where the EIC was denied for a

taxable year beginning after December

31, 1996.

July 20, 1998

PART 602—OMB CONTROL

NUMBERS UNDER THE

PAPERWORK REDUCTION ACT

Par. 3. The authority citation for part

602 continues to read as follows:

Authority: 26 U.S.C. 7805.

Par. 4. In §602.101, paragraph (c) is

amended by adding an entry in numerical

order to read as follows:

§602.101 OMB Control numbers.

ACTION: Temporary and final regulations.

SUMMARY: This document contains

temporary and final regulations relating to

the deposit of Federal employment taxes.

The regulations change the de minimis deposit rule for quarterly and annual return

periods. The regulations affect taxpayers

required to make deposits of Federal employment taxes. The text of the temporary

regulations also serves as the text of the

proposed regulations set forth in

REG–110403–98, page 11 of this Bulletin.

CFR part or section

where identified and

described

Current OMB

control No.

1.32–3T . . . . . . . . . . . . . . . . 1545–1575

* * * * *

DATES: Effective date: These regulations are effective June 16, 1998.

Applicability date: For dates of applicability, see §31.6302–1T(f)(4).

FOR FURTHER INFORMATION CONTACT: Vincent Surabian (202) 622-4940

(not a toll-free call).

SUPPLEMENTARY INFORMATION:

Michael P. Dolan,

Deputy Commissioner of

Internal Revenue.

Approved May 18, 1998.

Donald C. Lubick,

Assistant Secretary of

the Treasury.

(Filed by the Office of the Federal Register on June

24, 1998, 8:45 a.m., and published in the issue of the

Federal Register for June 25, 1998, 63 F.R. 34594)

Section 6302.—Mode or Time of

Collection

26 CFR 31.6302–1: Federal tax deposit rules for

withheld income taxes and taxes under the Federal

Insurance Contributions Act (FICA) attributable to

payments made after December 31, 1992.

T.D. 8771

DEPARTMENT OF THE TREASURY

Internal Revenue Service

26 CFR Part 31

Background and Explanation of

Provisions

This document contains amendments to

26 CFR part 31, Employment Taxes and

Collection of Income Tax at Source. Section 31.6302–1(f)(4) provides that if the

total amount of accumulated employment

taxes for the quarter is less than $500 and

the amount is fully deposited or remitted

with a timely filed return for the quarter,

the amount deposited or remitted will be

deemed to be timely deposited.

The temporary regulations change the

$500 threshold to $1,000. In addition, the

regulations replace the term “quarter”

with the term “return period” since some

employment taxes are reported on an annual basis (Forms 943, 945, and CT-1)

rather than quarterly (Form 941). Thus, a

taxpayer that has accumulated employment taxes of less than $1,000 for a return

period (quarterly or annual, as the case

may be) does not have to make deposits

but may remit its full liability with a

timely filed return for the return period.

Special Analyses

Federal Employment Tax

Deposits—De Minimis Rule

AGENCY: Internal Revenue Service

(IRS), Treasury.

July 20, 1998

It has been determined that this Treasury decision is not a significant regulatory action as defined in EO 12866.

Therefore, a regulatory assessment is not

required. It also has been determined that

section 553(b) of the Administrative Procedure Act (5 U.S.C. chapter 5) does not

apply to these regulations, and because

these regulations do not impose a collection of information on small entities, the

Regulatory Flexibility Act (5 U.S.C.

chapter 6) does not apply. Pursuant to

section 7805(f) of the Internal Revenue

Code, these regulations will be submitted

to the Chief Counsel for Advocacy of the

Small Business Administration for comment on their impact on small business.

Drafting Information

The principal author of these regulations is Vincent Surabian, Office of Assistant Chief Counsel (Income Tax & Accounting). However, other personnel

from the IRS and Treasury Department

participated in their development.

Adoption of Amendments to the

Regulations

Accordingly, 26 CFR part 31 is

amended as follows:

PART 31—EMPLOYMENT TAXES

AND COLLECTION OF INCOME

TAX AT SOURCE

Paragraph 1. The authority citation for

part 31 is amended by adding an entry in

numerical order to read as follows:

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

§31.6302–1T also issued under 26

U.S.C. 6302(a) and (c). * * *

Par. 2. In §31.6302–1, a new sentence

is added at the end of paragraph (f)(4) to

read as follows:

§31.6302–1 Federal tax deposit rules for

withheld income taxes and taxes under

the Federal Insurance Contributions Act

(FICA) attributable to payments made

after December 31, 1992.

(4) De Minimis rule. * * * For guidance regarding de minimis amounts for

quarterly return periods beginning on or

after July 1, 1998, and annual return periods beginning on or after January 1, 1999,

see §31.6302–1T(f)(4).

1998–29 I.R.B.

Par. 3. Section 31.6302–1T is added to

read as follows:

§31.6302–1T Federal tax deposit rules

for withheld income taxes and taxes

under the Federal Insurance

Contributions Act (FICA) attributable to

payments made after December 31, 1992

(temporary).

(a) through (f)(3). [Reserved] For further guidance, see §31.6302–1(a) through

(f)(3).

1998–29 I.R.B.

(f)(4) De Minimis rule. For quarterly return periods beginning on or after July 1,

1998, and annual return periods beginning

on or after January 1, 1999, if the total

amount of accumulated employment taxes

for the return period is less than $1,000 and

the amount is fully deposited or remitted

with a timely filed return for the return period, the amount deposited or remitted will

be deemed to have been timely deposited.

(f)(5) through (m). [Reserved] For further guidance, see §31.6302–1(g) through

(m).

Michael P. Dolan,

Deputy Commissioner of

Internal Revenue.

Approved June 1, 1998.

Donald C. Lubick,

Assistant Secretary of

the Treasury.

(Filed by the Office of the Federal Register on June

15, 1998, 8:45 a.m., and published in the issue of the

Federal Register for June 16, 1998, 63 F.R. 32735)

July 20, 1998

Part III. Administrative, Procedural, and Miscellaneous

Deposit of Excise Taxes

Notice 98–36

Accordingly, 26 CFR part 40 is

amended by making the following correcting amendments:

AGENCY: Internal Revenue Service

(IRS), Treasury.

PART 40—EXCISE TAX

PROCEDURAL REGULATIONS

ACTION: Technical amendment.

Paragraph 1. The authority citation for

part 40 continues to read in part as follows:

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

SUMMARY: This document contains

technical amendments to final regulations

(T.D. 8685 [1996–2, C.B. 174]), which

were published in the Federal Register

for November 12, 1996, at 61 F.R. 58004,

relating to deposit of excise taxes.

EFFECTIVE DATE: March 31, 1998.

FOR FURTHER INFORMATION CONTACT: Dale Goode (202) 622-6795 (not

a toll-free number).

SUPPLEMENTARY INFORMATION:

Background

The final regulations that are the subject of this technical amendment provide

guidance under section 6302 relating to

deposit of excise taxes.

Need for Correction

This amendment serves to correct references found in §40.6302(c)–3. Currently,

a number of incorrect references appear in

§40.6302(c)–3(g) of the Code of Federal

Regulations (26 CFR part 40). As published in the Federal Register on November 12, 1996 (61 F.R. 58004), paragraph

(f) of §40.6302(c)–3 was redesignated as

paragraph (g), and the internal references

were not changed to reflect this.

July 20, 1998

§40.6302(c)–3(g) [Amended]

Par. 2. Section 40.6302(c)–3 is

amended by removing the reference “(f)”

and adding “(g)” in its place in the following locations:

1. Paragraph (g)(1) introductory text.

2. Paragraphs (g)(2)(i) and (g)(2)(ii).

3. Paragraph (g)(3) introductory text.

4. Paragraph (g)(3), paragraph (b) of

the Example.

Dale D. Goode,

Federal Register Liaison Officer,

Assistant Chief Counsel (Corporate).

(Filed by the Office of the Federal Register on

March 30, 1998, 8:45 a.m., and published in the

issue of the Federal Register for March 31, 1998, 63

F.R. 15292)

26 CFR 601.502: Requirement for conference—

recognition to practice and, in certain cases, power

of attorney or tax information authorization.

(Also, Part I, section 6103; 301.6103(c)–1.)

Rev. Proc. 98–43

The Internal Revenue Service is continuing its program of reviewing and identifying those revenue procedures that, although not specifically revoked or

superseded, are no longer considered de-

terminative. The revenue procedure listed

below relates to the Disclosure Authorization Lists submitted by business entities

to the district office(s) with which telephone contact is expected and maintained

only by those district offices. These lists

provide the names and social security

numbers of employees who are authorized to receive confidential tax information of the business entities. The revenue

procedure is made obsolete by a change in

the Service’s telephone environment.

Presently, if a Disclosure Authorization

List is in effect, an authorized employee

who contacts the Service by telephone to

resolve a business tax matter may be talking to a customer service representative

from a district or service center that does

not have access to the Disclosure Authorization List. In this situation, the customer service representative would not be

able to determine if the employee on the

telephone has authorization to receive

confidential tax information of the

business.

In the present environment, the Service

advises a business entity to use Form

8821, Tax Information Authorization, to

designate its employees to receive its tax

information. The designated employees’

names are recorded on the Centralized

Authorization File so that the employees’

authorizations would be available in any

district or service center. See Statement

of Procedural Rules, 1991-1 C.B. 717 for

more information.

Accordingly, the revenue procedure

listed below is obsolete.

Rev. Proc. No.

C.B. Citation

80–46

1980–2, 779

1998–29 I.R.B.

Part IV. Items of General Interest

Notice of Proposed Rulemaking

and Notice of Public Hearing

Equity Options Without Standard

Terms; Special Rules and

Definitions

REG–104641–97

AGENCY: Internal Revenue Service

(IRS), Treasury

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

SUMMARY: This document contains

proposed regulations providing guidance

on the application of the rules governing

qualified covered calls. The new rules address concerns that were created by the

introduction of new financial instruments

after the enactment of the qualified covered call rules. The proposed regulations

will provide guidance to taxpayers holding qualified covered calls. This document also provides notice of public hearing on these proposed regulations.

DATES: Written comments must be received by September 23, 1998. Requests

to speak (with outlines of oral comments)

at the public hearing scheduled for November 4, 1998, must be submitted by

October 14, 1998.

ADDRESSES: Send submissions to:

CC:DOM:CORP:R (REG–104641–97),

room 5228, Internal Revenue Service,

POB 7604, Ben Franklin Station, Washington, DC 20044. Submissions may be

hand delivered between the hours of 8

a.m. and 5 p.m. to: CC:DOM:CORP:R

(REG–104641–97), 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

. The public hearing will be held in room

2615, Internal Revenue Building, 1111

Constitution Avenue, NW, Washington,

DC.

FOR FURTHER INFORMATION CONTACT: Concerning the regulations,

1998–29 I.R.B.

Pamela Lew, (202) 622-3950; concerning

submissions and the hearing, Michael L.

Slaughter, Jr., (202) 622-7190, (not tollfree numbers).

SUPPLEMENTARY INFORMATION:

Background

Section 1092(c) defines a straddle as

offsetting positions with respect to personal property. Under section 1092(d)(3),

stock is personal property if the stock is

part of a straddle that involves an option

on that stock or substantially identical

stock or securities. Under section

1092(c)(4), however, writing a qualified

covered call option and owning the optioned stock is not treated as a straddle for

purposes of section 1092.

The special treatment for qualified covered calls was created because Congress

believed that, in certain limited circumstances, a taxpayer who grants a call option

does not substantially reduce his or her risk

of loss with respect to the optioned stock.

Congress established a mechanical test to

determine whether a written call option

could substantially reduce a taxpayer’s risk

of loss and, therefore, should be subject to

treatment as one leg of a straddle. In order

to be classified as a qualified covered call

under this test, a call option must, among

other things, be exchange-traded and not

be deep in the money.

Section 1092(c)(4)(C) defines a deepin-the-money option as an option whose

strike price is lower than an allowed bench

mark. Under section 1092(c)(4)(D), this

bench mark is generally the highest available strike price for an option that is less

than the applicable stock price, as defined

in section 1092(c)(4)(G). The Internal

Revenue Code provides other bench

marks under specified circumstances.

At the time the qualified covered call

definition was written, listed options were

available only at standardized maturity

dates and strike price intervals. This

fixed-interval system was a basic assumption of the Congressional plan for qualified covered calls and, more specifically,

was the foundation for the definition of a

deep-in-the-money option.

Certain options exchanges have begun

to trade put and call equity options with

flexible terms. The terms that are flexible

include strike price, expiration date, and

exercise style (that is, American, European, or capped). Except as noted below,

the strike price is denominated in the

smallest interval available on the options

exchanges, which is currently 1/8 of one

dollar. To minimize the market impact of

options contract expirations, equity options with flexible terms may not expire

within 2 business days of equity options

with standardized terms. Equity options

with flexible terms are generally intended

for institutional and other large investors.

Questions have been raised as to

whether the strike prices established by

equity options with flexible terms might

establish the lowest qualified benchmark

under section 1092(c)(4)(D) for all equity

options, including those with standardized terms. The following example illustrates this concern. If a stock is currently

selling for $62, equity options with flexible terms and option periods of not more

than 90 days could have a strike price of

$61 7/8. If the strike prices from equity

options with flexible terms were taken

into account in determining if a 90-day

equity option with standardized terms is

deep in the money, any option being sold

for less than $61 7/8 would be deep in the

money. Because the strike prices for an

equity option with standardized terms are

set in $5 intervals, the highest strike price

less than the current selling price for an

equity option with standardized terms

would be $60. Thus, any in-the-money

equity option on the stock that had standardized terms would be deep in the

money (for purposes of section

1092(c)(4)).

Explanation of Provisions

The proposed regulations provide that

the strike prices established by equity options with flexible terms are not taken into

account in determining whether equity

options that are not equity options with

flexible terms are deep in the money.

Thus, the existence of strike prices established for equity options with flexible

terms does not affect the lowest qualified

bench mark, as determined under section

1092(c)(4)(D), for an equity option with

standardized terms. The proposed regulations define equity options with flexible

July 20, 1998

terms as those equity options described in

certain specified SEC releases, including

any changes approved by the SEC to

these releases.

The regulations will allow some taxpayers, primarily institutional and other

large investors, to engage in certain exchange-based transactions that are currently unavailable to them and will permit

other investors to continue doing business

under section 1092 without regard to the

existence of the institutional product.

The proposed regulations do not address whether an equity option with flexible terms is eligible for qualified covered

call treatment under section 1092(c)(4).

Comments are requested on the following

issues: (1) whether equity options with

flexible terms should be eligible for qualified covered call treatment under section

1092(c)(4); (2) whether there should be

uniform rules governing the bench marks

for equity options with flexible terms and

standardized options; and (3) if uniform

rules are not appropriate, what bench

marks should apply to equity options with

flexible terms.

Proposed Effective Date

These regulations apply to equity options with flexible terms entered into on or

after the date that the Treasury Decision

adopting these rules as final regulations is

published in the Federal Register.

Special Analyses

It has been determined that this notice

of proposed rulemaking is not a significant regulatory action as defined in EO

12866. Therefore, a regulatory assessment is not required. It also has been determined that section 553(b) of the Administrative Procedure Act (5 U.S.C.

chapter 5) does not apply to these regulations, and because the regulations do not

impose a collection of information on

small entities, the Regulatory Flexibility

Act (5 U.S.C. chapter 6) does not apply.

Pursuant to section 7805(f) of the Internal

Revenue Code, this notice of proposed

rulemaking will be submitted to the Chief

Counsel for Advocacy of the Small Business Administration for comment on its

impact on small business.

tion will be given to any written comments (preferably a signed original and

eight (8) copies) that are submitted timely

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

A public hearing has been scheduled for

Wednesday, November 4, 1998, beginning

at 10:00 a.m. The hearing will be held in

Room 2615, Internal Revenue Building,

1111 Constitution Avenue NW, Washington DC. Because of access restrictions,

visitors will not be admitted beyond the

Internal Revenue Building lobby more

than 15 minutes before the hearing starts.

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

apply to the hearing.

Persons who wish to present oral comments at the hearing must submit written

comments by September 23, 1998, and

submit an outline of topics to be discussed

and the time to be devoted to each topic

(signed original and eight (8) copies) by

October 14, 1998.

A period of 10 minutes will be allotted

to each person for making comments.

An agenda showing the scheduling of

the speakers will be prepared after the

deadline for receiving outlines has

passed. Copies of the agenda will be

available free of charge at the hearing.

Drafting Information

The principal author of these regulations is Pamela Lew, Office of Assistant

Chief Counsel (Financial Institutions and

Products). However, other personnel

from the IRS and Treasury Department

participated in their development.

Proposed Amendments to the Regulations

Accordingly, 26 CFR part 1 is proposed to be amended as follows:

PART 1—INCOME TAXES

Paragraph 1. The authority citation for

part 1 is amended by adding an entry in

numerical order to read as follows:

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

Section 1.1092(c)–1 also issued under 26

U.S.C. 1092(c)(4)(H). * * *

Par. 2. Section 1.1092(c)–1 is added to

read as follows:

Comments and Public Hearing

§1.1092(c)–1 Equity options with

flexible terms.

Before these proposed regulations are

adopted as final regulations, considera-

(a) Effect on lowest qualified bench

mark for other options. The existence of

July 20, 1998

strike prices established by equity options

with flexible terms does not affect the determination of the lowest qualified bench

mark, as defined in section 1092(c)(4)(D),

for any option that is not an equity option

with flexible terms.

(b) Definitions. For purposes of this

section–

(1) Equity option with flexible terms

means an equity option—

(i) That is described in the following

Securities Exchange Act Releases—

(A) Self-Regulatory Organizations;

Order Approving Proposed Rule Changes

and Notice of Filing and Order Granting

Accelerated Approval of Amendments by

the Chicago Board Options Exchange,

Inc. and the Pacific Stock Exchange, Inc.,

Relating to the Listing of Flexible Equity

Options on Specified Equity Securities,

Securities Exchange Act Release No.

34–36841 (Feb. 21, 1996); or

(B) Self-Regulatory Organizations;

Order Approving Proposed Rule Changes

and Notice of Filing and Order Granting

Accelerated Approval of Amendment

Nos. 2 and 3 to the Proposed Rule Change

by the American Stock Exchange, Inc.,

Relating to the Listing of Flexible Equity

Options on Specified Equity Securities,

Securities Exchange Act Release No.

34–37336 (June 27, 1996); or

Order Approving Proposed Rule Change

and Notice of Filing and Order Granting

Accelerated Approval of Amendment

Nos. 2, 4 and 5 to the Proposed Rule

Change by the Philadelphia Stock Exchange, Inc., Relating to the Listing of

Flexible Exchange Traded Equity and

Index Options, Securities Exchange Act

Release No. 34–39549 (Jan. 23, 1998); or

(D) Any changes to the SEC releases

described in paragraphs (b)(1)(i)(A)

through (C) of this section that are approved by the Securities and Exchange

Commission; or

(ii) That is traded on any national securities exchange which is registered with

the Securities and Exchange Commission

(other than those described in the SEC

Releases set forth in paragraph (b)(1)(i) of

this section) or other market which the

Secretary determines has rules adequate

to carry out the purposes of section 1092

and is—

(A) Substantially identical to the equity

options described in paragraph (b)(1)(i) of

this section; and

1998–29 I.R.B.

(B) Approved by the Securities and Exchange Commission in a Securities Exchange Act Release.

(2) Securities Exchange Act Release

means a release issued by the Securities

and Exchange Commission. To determine identifying information for releases

referenced in paragraph (b)(1) of this section, including release titles, identification

numbers, and issue dates, contact the Office of the Secretary, Securities and Exchange Commission, 450 5th Street, NW.,

Washington, DC 20549. To obtain a copy

of a Securities Exchange Act Release,

submit a written request, including the

specific release identification number,

title, and issue date, to Securities and Exchange Commission, Attention Public

Reference, 450 5th Street, NW., Washington, DC 20549.

apply to equity options with flexible

terms entered into on or after the date that

the Treasury Decision adopting these regulations is published in the Federal

ADDRESSES: Send submissions to:

CC:DOM:CORP:R (REG–110403–98),

room 5226, Internal Revenue Service,

POB 7604, Ben Franklin Station, Washington, DC 20044. Submissions may be

hand delivered between the hours of 8:00

a.m. and 5 p.m. to: CC:DOM:CORP:R

(REG–110403–98), 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.

Michael P. Dolan,

Deputy Commissioner of

Internal Revenue.

Temporary regulations in T.D. 8771

amend the Employment Tax and Collection of Income Tax at Source Regulations

(26 CFR part 31) relating to section 6302.

The termporary regulations change the

de minimis rule for the deposit of Federal

employment taxes. The text of those

regulations also serves as the text of these

proposed regulations. The preamble to the

temporary regulations explain the amendments.

(Filed by the Office of the Federal Register on June

24, 1998, 8:45 a.m., and published in the issue of the

Federal Register for June 25, 1998, 63 F.R. 34616)

Notice of Proposed Rulemaking

Federal Employment Tax

Deposits—De Minimis Rule

REG–110403–98

AGENCY: Internal Revenue Service

(IRS), Treasury.

ACTION: Notice of proposed rulemaking by cross-reference to temporary regulations.

SUMMARY: In T.D. 8771, page 6 of this

Bulletin, the IRS is issuing temporary

regulations relating to the deposits of Federal employment taxes. The text of those

regulations also serves as the text of these

proposed regulations.

DATES: Written comments and requests

for a public hearing must be received by

September 14, 1998.

1998–29 I.R.B.

FOR FURTHER INFORMATION CONTACT: Concerning the submissions,

Michael Slaughter, (202) 622-7180; concerning the regulations, Vincent Surabian,

(202) 622-4940 (not toll-free numbers).

SUPPLEMENTARY INFORMATION:

Background and Explanation of

Provisions

Special Analysis

It has been determined that this notice

of proposed rulemaking is not a significant regulatory action as defined in EO

12866. Therefore, a regulatory assessment is not required. It also has been determined that section 553(b) of the Administrative Procedure Act (5 U.S.C.

chapter 5) does not apply to these regulations, and because these regulations do

not impose a collection of information on

small entities, the Regulatory Flexibility

Act (5 U.S.C. chapter 6) does not apply.

Pursuant to section 7805(f) of the Internal

Revenue Code, this notice of proposed

rulemaking will be submitted to the Chief

Counsel for Advocacy of the Small Business Administration for comment on its

impact on small business.

Comments and Requests for a

Public Hearing

Before these proposed regulations are

adopted as final regulations, consideration will be given to any comments that

are submitted timely to the IRS. All comments will be available for public inspection and copying. A public hearing may

be scheduled if requested by any person

that timely submits comments. If a public

hearing is scheduled, notice of the date,

time, and place for the hearing will be

published in the Federal Register.

Drafting Information

The principal author of these regulations is Vincent Surabian, Office of Assistant Chief Counsel (Income Tax & Accounting). However, other personnel

from the IRS and the Treasury Department participated in their development.

* * * * *

Proposed Amendments to the Regulations

Accordingly, 26 CFR part 31 is proposed to be amended as follows:

PART 31—EMPLOYMENT TAXES

AND COLLECTION OF INCOME TAX

AT SOURCE

Paragraph 1. The authority citation for

part 31 continues to read in part as follows:

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

Par. 2. In §31.6302–1, paragraph (f)(4)

is revised to read as follows:

§31.6302–1 Federal tax deposit rules for

withheld income taxes and taxes under

the Federal Insurance Contributions Act

(FICA) attributable to payments made

after December 31, 1992.

* * * * *

(f) * * *

(4) [The text of proposed §31.6302–

1(f)(4) is the same as the text of

§31.6302–1T(f)(4)].

* * * * *

Michael P. Dolan,

Deputy Commissioner of

Internal Revenue.

July 20, 1998

(Filed by the Office of the Federal Register on June

15, 1998, 8:45 a.m., and published in the issue of the

Federal Register for June 16, 1998, 63 F.R. 32774)

Loverud, 202-622-6060; concerning submissions or the hearing, LaNita VanDyke,

202-622-7190 (not toll-free numbers).

Notice of Proposed Rulemaking

and Notice of Public Hearing

SUPPLEMENTARY INFORMATION:

EIC Eligibility Requirements

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

Management and Budget for review in accordance with the Paperwork Reduction

Act of 1995 (44 U.S.C. 3507(d)). Comments on the collection of information

should be sent to the Office of Management and Budget, Attn: Desk Officer for

the Department of the Treasury, Office of

Information and Regulatory Affairs,

Washington, DC 20503, with copies to

the Internal Revenue Service, Attn: IRS

Reports Clearance Officer, T:FP, Washington, DC 20224. Comments on the collection of information should be received

by August 24, 1998. Comments are

specifically requested concerning:

Whether the proposed collection of information is necessary for the proper performance of the functions of the Internal

Revenue Service, including whether the

information will have practical utility;

The accuracy of the estimated burden

associated with the proposed collection of

information (see below);

How the quality, utility, and clarity of

the information to be collected may be enhanced;

How the burden of complying with the

proposed collection of information may

be minimized, including through the application of automated collection techniques or other forms of information technology; and

Estimates of capital or start-up costs and

costs of operation, maintenance, and purchase of services to provide information.

The collection of information in this

proposed regulation is in §1.32–3. This

information is required to conform with

the statute and to permit the taxpayer to

claim the EIC. This information will be

used by the IRS to determine whether the

taxpayer is entitled to claim the EIC. The

collection of information is mandatory.

The likely respondents are individuals.

The burden is reflected in the burden of

Form 8862.

An agency may not conduct or sponsor,

and a person is not required to respond to,

REG–116608–97

AGENCY: Internal Revenue Service

(IRS), Treasury.

ACTION: Notice of proposed rulemaking by cross-reference to temporary regulations and notice of public hearing.

SUMMARY: In T.D. 8773, page 4 of this

Bulletin, the IRS is issuing temporary

regulations pertaining to the eligibility requirements for certain taxpayers denied

the earned income credit (EIC) as a result

of the deficiency procedures. The text of

those temporary regulations also serves as

the text of these proposed regulations.

This document also provides notice of a

public hearing on these proposed regulations.

DATES: Written comments must be received by September 23, 1998. Requests

to speak (with outlines of oral comments)

at a public hearing scheduled for Wednesday, October 21, 1998, must be received

by September 30, 1998.

ADDRESSES: Send submissions to:

CC:DOM:CORP:R (REG–116608–97),

room 5228, Internal Revenue Service,

POB 7604, Ben Franklin Station, Washington, DC 20044. Submissions may be

hand delivered between the hours of 8

a.m. and 5 p.m. to: CC:DOM:CORP:R

(REG–116608–97), 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.

The public hearing will be held in room

2615, Internal Revenue Building, 1111

Constitution Avenue, NW, Washington,

DC 20224.

FOR FURTHER INFORMATION CONTACT: Concerning the regulations, Karin

July 20, 1998

Paperwork Reduction Act

a collection of information unless it displays a valid control number assigned by

the Office of Management and Budget.

Books or records relating to a collection of information must be retained as

long as their contents may become material in the administration of any internal

revenue law. Generally, tax returns and

tax return information are confidential, as

required by 26 U.S.C. 6103.

Background

The temporary regulations published in

T.D. 8773 add §1.32–3T to the Income

Tax Regulations.

The text of those temporary regulations

also serves as the text of these proposed

regulations. The preamble to the temporary regulations explains the temporary

regulations.

Special Analyses

It has been determined that this notice of

proposed rulemaking is not a significant

regulatory action as defined in EO 12866.

Therefore, a regulatory assessment is not

required. It also has been determined that

section 553(b) of the Administrative Procedure Act (5 U.S.C. chapter 5) does not

apply to these regulations.

It is hereby certified that these regulations will not have a significant economic

impact on a substantial number of small

entities. This certification is based upon

the fact that the underlying statute applies

only to individuals. Therefore, a Regulatory Flexibility Analysis under the Regulatory Flexibility Act (5 U.S.C. chapter 6)

is not required.

Pursuant to section 7805(f) of the Internal Revenue Code, this notice of proposed rulemaking will be submitted to the

Chief Counsel for Advocacy of the Small

Business Administration for comment on

its impact on small business.

Comments and public hearing

Before these proposed regulations are

adopted as final regulations, consideration will be given to any written comments (a signed original and eight copies)

that are submitted timely (in the manner

described in the ADDRESSES portion of

this preamble) to the IRS. All comments

will be available for public inspection and

copying.

1998–29 I.R.B.

A public hearing has been scheduled

for Wednesday, October 21, 1998, at 10

a.m., in room 2615, Internal Revenue

Building, 1111 Constitution Avenue, NW,

Washington, DC. Because of access restrictions, visitors will not be admitted beyond the building lobby more than 15

minutes before the hearing starts.

The rules of §601.601(a)(3) apply to

the hearing.

Persons that have submitted written

comments by September 23, 1998, and

want to present oral comments at the

hearing must submit, not later than September 30, 1998, an outline of the topics

to be discussed and the time to be devoted

to each topic. A period of 10 minutes will

be allotted to each person for making

comments.

An agenda showing the scheduling of

the speakers will be prepared after the

deadline for receiving outlines has

passed. Copies of the agenda will be

available free of charge at the hearing.

Drafting Information

The principal author of these proposed

regulations is Karin Loverud, Office of

the Associate Chief Counsel (Employee

Benefits and Exempt Organizations), IRS.

However, other personnel from the IRS

and the Treasury Department participated

in their development.

* * * * *

Proposed Amendments to the Regulations

Accordingly, 26 CFR part 1 is proposed to be amended as follows:

PART 1—INCOME TAXES

Paragraph 1. The authority citation for

part 1 continues to read in part as follows:

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

Par. 2. Section 1.32–3 is added to read

as follows:

§1.32–3 Eligibility Requirements.

[The text of this proposed section is the

same as the text of §1.32–3T published in

T.D. 8773.]

Michael P. Dolan,

Deputy Commissioner of

Internal Revenue.

(Filed by the Office of the Federal Register on June

1998–29 I.R.B.

25, 1998, 8:45 a.m., and published in the issue of the

Federal Register for June 25, 1998, 63 F.R. 34615)

Request for Information—New

Technologies in Retirement

Plans

Announcement 98–62

The Internal Revenue Service and the

Department of the Treasury request comments from the public relating to the use

of new technologies (sometimes referred

to as “paperless” technologies) in the administration of retirement plans. The Service and Treasury are in the process of developing guidance relating to the use of

new technologies in communications between retirement plans and their participants. This announcement solicits comments on a number of specific issues.

However, comments and suggestions

from interested parties concerning other

issues pertinent to these technologies are

also requested.

BACKGROUND

Section 1510 of the Taxpayer Relief

Act of 1997 (“TRA ’97”), Pub. L. 105–

34, provides that the Secretary of the

Treasury and the Secretary of Labor each

shall issue guidance designed to interpret

the notice, election, consent, disclosure,

and time requirements (and related

recordkeeping requirements) under the

Internal Revenue Code of 1986 and the

Employee Retirement Income Security

Act of 1974 relating to retirement plans as

applied to the use of new technologies by

plan sponsors and administrators. Section

1510 requires the guidance to maintain

the protection of the rights of participants

and beneficiaries. Section 1510 further

provides that the guidance shall clarify

the extent to which writing requirements

under the Internal Revenue Code of 1986

relating to retirement plans shall be interpreted to permit paperless transactions.

SPECIFIC ISSUES FOR COMMENT

The Service invites interested parties to

submit information concerning the application of new or paperless technologies in

the administration of retirement plans and

concerning any issues that such technologies have presented for plan sponsors, ad-

ministrators, participants or beneficiaries.

Specifically, interested members of the

public are invited to describe new technologies that are commonly used in plan

administration, and to indicate the extent

to which these technologies, and the manner in which they are used, adequately

protect the rights of participants and beneficiaries. Commentators also are invited

to contrast characteristics and applications of technologies that adequately

protect the rights of participants and beneficiaries with characteristics and applications that may not provide such protection. The Service is particularly

interested in receiving specific comments

regarding the paperless administration of

participant elections and consents, plan

notices, plan loans, and distributions.

In addition to the information requested

above, comments are specifically invited

on the following questions:

• Would it be preferable for guidance

to focus on specific uses of existing technologies or to take the form of generally

applicable principles or standards? If

commentators recommend that guidance

take the form of generally applicable principles or standards, it is requested that the

comments identify suggested principles

or standards as specifically as possible

(including any variations appropriate for

different technologies).

• To what extent, if any, do the terms

“election” and “consent” imply a writing

or signature requirement?

• To what extent should paperless

identification mechanisms (for example, a

Personal Identification Number (“PIN”)

or password) be treated as satisfying a

legal requirement of a “writing” or a signature?

• Should the requirement to provide a

notice during a specified period (such as

the requirement to provide a § 402(f) notice no less than 30 and no more than 90

days before the date of an eligible rollover

distribution) be deemed to be satisfied by

providing a written copy of a full notice

on a less frequent basis (for example,

once a year) if participants or beneficiaries, when initiating a transaction to

which the notice relates (such as requesting a distribution), are given an oral or

recorded summary of the notice and told

how to obtain a copy of the full notice?

July 20, 1998

• What are the appropriate standards

for authentication, substantiation, and security in paperless plan administration

and record-keeping? For example, how

can it be established with a reasonable

level of confidence that a plan notice has

actually been received by a plan participant or beneficiary to whom the notice

has been transmitted in a paperless form?

Similarly, how can it be established that a

particular paperless transaction was entered into by a particular participant?

Also, how should records of paperless

transactions be maintained by plan sponsors or administrators?

• What are the appropriate standards

for ensuring that participants and beneficiaries have sufficient time and opportunity to consider (and, if desired, obtain

advice on) all relevant options when making significant decisions about retirement

savings? For example, should participants and beneficiaries have the right to

review and change the content of any

communication or instructions transmitted in a paperless form before completion

of the transaction, and should they always

have the right to receive communications

on paper as an alternative to paperless

communications?

• What types of new or paperless technologies do plan sponsors and administrators foresee using in the future? What

practical and legal issues might arise from

the use of those technologies, and how

might systems using those technologies

be designed to protect the rights of participants and beneficiaries?

• Which issues raised by the use of

new technologies in retirement plans are

most in need of administrative guidance?

Comments received to date indicate

that the possible use of electronic technologies in the administration of the

spousal consent requirements of

§§ 401(a)(11) and 417 of the Code raises

a number of significant legal and practical

issues relating to adequate protection of

persons who are not plan participants or

current or former employees. Consequently, initial guidance on new technologies is unlikely to address issues involving spousal consent. The public is

nevertheless invited to submit comments

on this topic.

ADDRESS

Written comments should be submitted

July 20, 1998

with a signed original and eight (8)

copies. All comments will be available

for public inspection and copying in their

entirety. Comments should be sent to

CC:DOM:CORP:R (OGI–106555–98),

Room 5226, Internal Revenue Service,

P.O. Box 7604, Ben Franklin Station,

Washington, DC 20044. Alternatively,

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

CC:DOM:CORP:R, Courier’s Desk, Internal Revenue Service, 1111 Constitution

Avenue, NW, Washington, DC, or may be

submitted electronically via the IRS Internet site at http://www.irs.ustreas.gov/

prod/tax_regs/comments.html. To ensure

that comments are given full consideration, they should be submitted by October

5, 1998.

DRAFTING INFORMATION

The principal authors of this announcement are Catherine Livingston Fernandez

of the Office of the Associate Chief Counsel (Employee Benefits and Exempt Organizations) and Daniel S. Evans of the

Employee Plans Division. For further information regarding this announcement,

contact the Employee Plans Division’s

telephone assistance service between 1:30

and 4:00 p.m., Eastern Time, Monday

through Thursday at (202) 622-6074/75,

or Ms. Fernandez at (202) 622-6030.

(These telephone numbers are not tollfree).

Foundations Status of Certain

Organizations

Announcement 98–68

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:

Golden Generations Inc., Philadelphia,

Good Shepherd of Colorado I, Littleton,

Gower Foundation for Excellence in

Education, Burr Ridge, IL

Granada East Parent Teacher

Organization, Phoenix, AZ

Grand Rapids Emergency Assistance

Team G R E A T, Grant Rapids, MI

Grass Roots Initiative for Planning &

Progress Inc., Conway, SC

Grayson County Community Housing

Resource Board Inc., Sherman, TX

Great Independence Housing Coalition,

Independence, MO

Greater Albuquerque Housing

Partnership, Albuquerque, NM

Greater Cleveland Soccer Association,

Cleveland, TN

Greater Birmingham Alabama Nawic

Scholarship Fund, Birmingham, AL

Greater First Social Ministries

Incorporated GFSMI, Beaumont, TX

Greater Kankakee Development

Foundation, Kankakee, IL

Greater Orleans Club of the National

Association of Negro, New Orleans,

Greater Works Outreach Ministries Inc.,

Philadelphia, PA

Grey Wolves Rugby Club Inc., Thornton,

Grief of the Washington Metropolitan

Area Inc., Alexandria, VA

Griffin Group International Inc., Mesa, AZ

Group Inc., Stuart, FL

Gunn Junior High School Band Booster

Club, Arlington, TX

Gurnee Rotary Club Charitable

Foundation, Gurnee, IL

Haddington Townhouses Resident

Association Inc., Philadelphia, PA

Halifax-Northampton Opportunity

Industrialization Center Inc., Roanoke

Rapids, NC

Hannibal Area Rapid Express Inc.,

Hannibal, MO

Harold Key Scholarship Endowment

Fund, Arlington, TX

Harvest Time Crusades Inc., Waco, TX

Haven Enterprises Inc., Wonsocket, RI

Health Education and Scholarship

Foundation, St. Louis, MO

1998–29 I.R.B.

Health Fair of Greater Kansas City Inc.,

Independence, MO

Health Opportunity Protection and

Encouragement Center Inc., Athens,

Heart Body & Soul Inc., Baltimore, MD

Hearth, Chapel Hill, NC

Hellenic American National Council Inc.,

Washington, DC

Henry County Council on Child Abuse,

Stockbridge, GA

Heritage Arts Inc., Raleigh, NC

Heritage Festival, Brooklyn Center, MN

Hiram G. Andrews Parents Association

Incorporated, Johnstown, PA

Hispanic Society of Central Ohio Inc.,

Columbus, OH

Hospital Art Project Network, Inc.,

Dallas, TX

Hooves for Happiness Inc., Frostburg,

Horner Association of Men, Chicago, IL

Hospice of the VNA of Greater

Philadelphia, Philadelphia, PA

Housecalls-Hospice Volunteer

Association Inc., Parkersburg, WV

Housing Applications to Social Training

Evolutions Inc., Arlington, TX

Housing Opportunity Center, Phoenix,

Howard County Hospital Foundation,

Cresco, IA

Humanitarian Aid Relief Team, Provo, UT

IGBO Foundation USA, Chicago, IL

Illinois Ethnic Coalition, Chicago, IL

Illinois Pirg Education Fund, Chicago, IL

In the Best Interest Children of Divorce,

Salt Lake City, UT

India Outreach, Elgin, IL

Indian Cultural Center Inc., Marlton, NJ

Inner-City Growth Corporation, Chicago,

Institute for Innovative Interventions II

Inc., Miami Beach, FL

Interagency Council for Youth of Wake

County, Raleigh, NC

Intercounty Teach a Trade Inc., King of

Prussia, PA

International Falls Education Fund,

International Falls, MN

International Learning Center Inc.,

Bellaire, TX

International Trade Finance Society, Inc.,

Santa Rosa, CA

International Trade & Management

Institute, Philadelphia, PA

IO Association, Middletown, OH

Iowa Young Farmers National Institute

1992 Inc., Mt. Union, IA

1998–29 I.R.B.

Iowans Against the Death Penalty Fund,

West Des Moines, IA

Iowans for Safer Cities, Des Moines, IA

Irish Alliances Foundation, St. Paul, MN

Isshin Ryu Club Inc., Albuquerque, NM

J R Tucker High School Athletic Booster

Club Inc., Richmond, VA

Jane Addams Delta Development

Corporation, Chicago, IL

James D Evans & Pauline Palmer Evans

Memorial Scholarship Trust,

Stoutland, MO

Japan-America Jamboree Adventure,

Rapid City, SD

Jefferson Housing Opportunities Inc.,

Metairie, LA

Jenkins Apartments Inc., Baltimore, MD

Jennings Rotary Scholastic Fund Inc.,

Jennings, LA

Jesus Christ Prison Ministries Inc.,

Saginaw, MI

Jewish Repertory Theatre Company,

Bethesda, MD

Johnny Gray Jones Youth Shelter,

Boosier City, LA

Johnson City Historic Preservation

Society Inc., Johnson City, TN

Just In Time Builders, Inc., Pepper Pike,

Just Us for Youth, Chicago, IL

Juvenile Justice Center Inc., Tallahassee,

Kansas Association of Directors of Plant

Facilities Scholarship, Leavenworth,

Kansas Multi-Cultural Arts Alliance Inc.,

Wichita, KS

KDK Private Industry Council Inc.,

Batavia, IL

Kelly Home of Iredell County Inc.,

Raleigh, NC

Kemper Hall Alumnae Association Inc.,

Gurnee, IL

Kensington Academy Foundation,

Birmingham, MI

Kentucky Experimental Program to

Simulate Competitive Research,

Lexington, KY

Keroglu Association Inc., Boonton, NJ

Keshet of Michigan-Jewish Families of

Children With Special Needs, Oak

Park, MI

Kidsburgh Press, Pittsburgh, PA

Kidslife Resources, Mount Laurel, NJ

Kittrell School Scholarship Fund Inc.,

Readyville, TN

Knox Co Task Force Against Violence

Inc. Harbor House, Vincennes, IN

Koo-Koo News Foundation, Strasburg,

KPMG Peat Marwick Disaster Relief

Fund, Montvale, NJ

Kyrene de la Colina School P T O,

Phoenix, AZ

La Palomas, Inc., Loveland, CO

Laikos Ministries Inc., Hague, VA

Lamar County Activity Center Inc.,

Barnesville, GA

Lancaster Heart Foundation, Lancaster,

Landmark Court Inc., Pittsburgh, PA

Leavenworth County Youth Soccer

Association, Levenworth, KS

Leora Brown School Inc., Corydon, IN

Liberty High School Alumni Scholarship

Fund Inc., Williamson, WV

Life Directions USA, Chicago, IL

Lifeskills Education to Empower People

Inc., Paducah, KY

Lillian Holliday Residence, Philadelphia,

Lincoln High School Band Boosters,

Des Moines, IA

Literacy Alliance Memphis-Shelby

County, Memphis, TN

Louisiana-Mississippi Infectious

Diseases Society, New Orleans, LA

Love and Care Center Inc., San Antonio,

Luce County Non-Profit Housing

Commission, Newberry, MI

Ludlow Youth Community Center,

Philadelphia, PA

M Span, St. Paul, MN

MacArthur Avenue Players, Dillon, SC

Madison Basketball Association,

Phoenix, AZ

Mahlon and Millcreek Corporation,

Philadelphia, PA

Mainstreet Springfield—Robertson

County, Springfield, TN

Mapleview Inc., Carmel, IN

Marianna High School Foundation Inc.,

Marianna, FL

Marshall Junior Olympic Volleyball,

Marshall, MN

Mattawan Public Education Foundation,

Mattawan, MI

Matter of Life Consortium Inc.,

Pinehurst, NC

Mature Resources Foundation, Clearfield,

Maxwell Parent Teacher Organization,

Greensburg, PA

Mayors Literacy Commission Stark

County Dist Library, Canton, OH

July 20, 1998

McDowell County Citizens Conservation

Corps Inc., Welch, WV

Medford Educational Institute Inc.,

Medford, OR

Mediation Center for Central Virginia

Incorporated, Lynchburg, VA

Memorial Hospital Southeast Auxiliary,

Houston, TX

Memorial Hospital Southwest Auxiliary,

Houston, TX

Memphis and Shelby County Adolescent

Pregnancy Council, Memphis, TN

Memphis State Swimming Inc.,

Memphis, TN

Menasha Wisconsin Rotary Foundation

Inc., Menasha, WI

Metanoia Mentor Group, Blue Springs,

Metro East Area Project Board,

E. St. Louis, IL

Metroplex Association of Teachers of

Elementary Science, Arlington, TX

Michigan Pharmacists Association,

Lansing, MI

Mid-County Educational Foundation,

Varna, IL

Midnet Inc., Lincoln, NE

Midpark High School Foundation,

Middleburg Heights, OH

Midwest Safety and Health Association,

St. Paul, MN

Mike Begeny Memorial Scholarship

Fund, Westerville, OH

Mindmenders Foundation Inc., Naples,

Ministers Training Center, Richmond, VA

Minnesota Project for Contemporary

Language Arts, St. Paul, MN

Minnesota Safety and Health Foundation,

St. Paul, MN

Minority Health Coalition of

Vanderburgh County, Evansville, IN

Monte Carlo Outreach Facility Vaughn

Green, New Orleans, LA

Morehouse College Alumni Chapter of

Palm Beach County Florida Inc.,

West Palm Beach, FL

Morgan County Academic Booster Club,

Madison, GA

Morningstars Development Company,

Inc., Kansas City, MO

Mountain College Library Network Inc.,

Swannanoa, NC

July 20, 1998

Mri Mobile Services of West Michigan,

Grand Rapids, MI

Multiple Sclerosis Fight Against

Demyelinnating Diseases, Inc.,

San Antonio, TX

Museo Chicano Inc., Phoenix, AZ

Music in Common Inc., Columbia, MD

Mustangs Athletic Booster Club Inc.,

Parker, CO

Nancy Davis Foundation for Multiple

Sclerosis, Aspen, CO

Nannie Berry Elementary Parent Teacher

Org PTO Hendersonville TN,

Hendersonville, TN

Nashville Mens Chorus, Nashville, TN

National African-American Club,

Philadelphia, PA

National Assoc. of Secretaries of State,

Lexington, KY

National Association of Head Start

Alumni Chapters Inc., Indianapolis, IN

National Association of State Personnel

Executives Inc., Lexington, KY

National Douglass Alumni Corporation,

Memphis, TN

Native American War Dead Memorial,

Lander, WY

NDC Center for Affordable Solutions in

Housing of Tampa Inc., Bethesda,

Nebraska Friends of Foster Children

Foundation, Lincoln, NE

Neighborhood Educational Training

Services, Toledo, OH

Neighbors Helping Neighbors, Canton,

Net Illinois Inc., Ann Arbor, MI

New Afrikan Writers Workshop, Omaha,

New Beginnings Youth Center Inc.,

Des Moines, IA

New Generations Youth Club Inc.,

Ann Arbor, MI

New Haven Band Boosters Inc., New

Haven, IN

New Hope Ministries Inc., Falls Church,

New Jersey Dare Drug Abuse Resistance

Education Officers, Totowa, NJ

Newton Community Center a New Jersey

Non-Profit Corporation, Camden, NJ

NIH Recreation & Welfare Foundation

Inc., Bethesda, MD

Ninth Judicial District Family and

Childrens Court Services Inc., Clovis,

No Needles in the Trash Foundation Inc.,

Parkersburg, WV

North East Gifted and Talented Education

Association, San Antonio, TX

North Eastern Community Services Inc.,

Las Vegas, NM

North Georgia Heritage Association Inc.,

Jasper, GA

North Museum Corporation, Lancaster,

North Surburban Parochial School

League, Robbinsdale, MN

North Texas Estate and Financial Planning

Council Inc., Wichita Falls, TX

North Texas Free-Net Incorporated,

Dallas, TX

Northeastern Action Wildlife Club Inc.,

Roanoke Rapids, NC

Northeastern Network Inc., Wilkes Barre,

Northern Ireland Human Rights

Commission Inc., Washington, DC

Northern Pocahontas Health Clinic Inc.,

Durbin, WV

Northside Athletic Association, Huber

Heights, OH

Northwest Delta Choral and Arts Council

Inc., Batesville, MS

Northwest Louisiana Youth Services,

Shreveport, LA

Novel Stages Theater Company Inc.,

Philadelphia, PA

Nursing Center at Oak Summit, WinstonSalem, NC

Oakland Education Foundation, Oakland,

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.

1998–29 I.R.B.

Definition of Terms

Revenue rulings and revenue procedures

(hereinafter referred to as “rulings”) that

have an effect on previous rulings use the

following defined terms to describe the

effect:

Amplified describes a situation where

no change is being made in a prior published position, but the prior position is

being extended to apply to a variation of

the fact situation set forth therein. Thus,

if an earlier ruling held that a principle

applied to A, and the new ruling holds

that the same principle also applies to B,

the earlier ruling is amplified. (Compare

with modified, below).

Clarified is used in those instances

where the language in a prior ruling is

being made clear because the language

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

prior ruling is being changed.

Distinguished describes a situation

where a ruling mentions a previously

published ruling and points out an essential difference between them.

Modified is used where the substance

of a previously published position is

being changed. Thus, if a prior ruling

held that a principle applied to A but not

to B, and the new ruling holds that it ap-

plies to both A and B, the prior ruling is

modified because it corrects a published

position. (Compare with amplified and

clarified, above).

Obsoleted describes a previously published ruling that is not considered determinative with respect to future transactions. This term is most commonly used

in a ruling that lists previously published

rulings that are obsoleted because of

changes in law or regulations. A ruling

may also be obsoleted because the substance has been included in regulations

subsequently adopted.

Revoked describes situations where the

position in the previously published ruling is not correct and the correct position

is being stated in the new ruling.

Superseded describes a situation where

the new ruling does nothing more than

restate the substance and situation of a

previously published ruling (or rulings).

Thus, the term is used to republish under

the 1986 Code and regulations the same

position published under the 1939 Code

and regulations. The term is also used

when it is desired to republish in a single

ruling a series of situations, names, etc.,

that were previously published over a period of time in separate rulings. If the

new ruling does more than restate the

substance of a prior ruling, a combination

of terms is used. For example, modified

and superseded describes a situation

where the substance of a previously published ruling is being changed in part and

is continued without change in part and it

is desired to restate the valid portion of

the previously published ruling in a new

ruling that is self contained. In this case

the previously published ruling is first

modified and then, as modified, is superseded.

Supplemented is used in situations in

which a list, such as a list of the names of

countries, is published in a ruling and

that list is expanded by adding further

names in subsequent rulings. After the

original ruling has been supplemented

several times, a new ruling may be published that includes the list in the original

ruling and the additions, and supersedes

all prior rulings in the series.

Suspended is used in rare situations to

show that the previous published rulings

will not be applied pending some future

action such as the issuance of new or

amended regulations, the outcome of

cases in litigation, or the outcome of a

Service study.

Abbreviations

E.O.—Executive Order.

ER—Employer.

ERISA—Employee Retirement Income Security Act.

EX—Executor.

F—Fiduciary.

FC—Foreign Country.

FICA—Federal Insurance Contribution Act.

FISC—Foreign International Sales Company.

FPH—Foreign Personal Holding Company.

F.R.—Federal Register.

FUTA—Federal Unemployment Tax Act.

FX—Foreign Corporation.

G.C.M.—Chief Counsel’s Memorandum.

GE—Grantee.

GP—General Partner.

GR—Grantor.

IC—Insurance Company.

I.R.B.—Internal Revenue Bulletin.

LE—Lessee.

LP—Limited Partner.

LR—Lessor.

M—Minor.

Nonacq.—Nonacquiescence.

O—Organization.

P—Parent Corporation.

PHC—Personal Holding Company.

PO—Possession of the U.S.

PR—Partner.

PRS—Partnership.

PTE—Prohibited Transaction Exemption.

Pub. L.—Public Law.

REIT—Real Estate Investment Trust.

Rev. Proc.—Revenue Procedure.

Rev. Rul.—Revenue Ruling.

S—Subsidiary.

S.P.R.—Statements of Procedral Rules.

Stat.—Statutes at Large.

T—Target Corporation.

T.C.—Tax Court.

T.D.—Treasury Decision.

TFE—Transferee.

TFR—Transferor.

T.I.R.—Technical Information Release.

TP—Taxpayer.

TR—Trust.

TT—Trustee.

U.S.C.—United States Code.

X—Corporation.

Y—Corporation.

Z—Corporation.

The following abbreviations in current use and formerly used will appear in material published in the

Bulletin.

A—Individual.

Acq.—Acquiescence.

B—Individual.

BE—Beneficiary.

BK—Bank.

B.T.A.—Board of Tax Appeals.

C.—Individual.

C.B.—Cumulative Bulletin.

CFR—Code of Federal Regulations.

CI—City.

COOP—Cooperative.

Ct.D.—Court Decision.

CY—County.

D—Decedent.

DC—Dummy Corporation.

DE—Donee.

Del. Order—Delegation Order.

DISC—Domestic International Sales Corporation.

DR—Donor.

E—Estate.

EE—Employee.

1998–29 I.R.B.

July 20, 1998

Numerical Finding List1

Notices—Continued

Revenue Procedures—Continued

Bulletins 1998–1 through 1998–28

98–3, 1998–3 I.R.B. 48

98–4, 1998–2 I.R.B. 25

98–5, 1998–3 I.B.R. 49

98–6, 1998–3 I.R.B. 52

98–7, 1998–3 I.R.B. 54

98–8, 1998–4 I.R.B. 6

98–9, 1998–4 I.R.B. 8

98–10, 1998–6 I.R.B. 9

98–11, 1998–6 I.R.B. 18

98–12, 1998–5 I.R.B. 12

98–13, 1998–6 I.R.B. 19

98–14, 1998–8 I.R.B. 27

98–15, 1998–9 I.R.B. 8

98–16, 1998–15 I.R.B. 12

98–17, 1998–11 I.R.B. 6

98–18, 1998–12 I.R.B. 11

98–19, 1998–13 I.R.B. 24

98–20, 1998–13 I.R.B. 25

98–21, 1998–15 I.R.B. 14

98–22, 1998–17 I.R.B. 5

98–23, 1998–18 I.R.B. 9

98–24, 1998–17 I.R.B. 5

98–25, 1998–18 I.R.B. 11

98–26, 1998–18 I.R.B. 14

98–27, 1998–18 I.R.B. 14

98–28, 1998–19 I.R.B. 7

98–29, 1998–22 I.R.B. 8

98–30, 1998–22 I.R.B. 9

98–31, 1998–22 I.R.B. 10

98–32, 1998–22 I.R.B. 23

98–33, 1998–25 I.R.B. 10

98–34, 1998–27 I.R.B. 30

98–35, 1998–27 I.R.B. 35

98–4, 1998–1 I.R.B. 113

98–5, 1998–1 I.R.B. 155

98–6, 1998–1 I.R.B. 183

98–7, 1998–1 I.R.B. 222

98–8, 1998–1 I.R.B. 225

98–9, 1998–3 I.R.B. 56

98–10, 1998–2 I.R.B. 35

98–11, 1998–4 I.R.B. 9

98–12, 1998–4 I.R.B. 18

98–13, 1998–4 I.R.B. 21

98–14, 1998–4 I.R.B. 22

98–15, 1998–4 I.R.B. 25

98–16, 1998–5 I.R.B. 19

98–17, 1998–5 I.R.B. 21

98–18, 1998–6 I.R.B. 20

98–19, 1998–7 I.R.B. 30

98–20, 1998–7 I.R.B. 32

98–21, 1998–8 I.R.B. 27

98–22, 1998–12 I.R.B. 11

98–23, 1998–10 I.R.B. 30

98–24, 1998–10 I.R.B. 31

98–25, 1998–11 I.R.B. 7

98–26, 1998–13 I.R.B. 26

98–27, 1998–15 I.R.B. 15

98–28, 1998–15 I.R.B. 14

98–29, 1998–15 I.R.B. 22

98–30, 1998–17 I.R.B. 6

98–31, 1998–23 I.R.B. 9

98–32, 1998–17 I.R.B. 11

98–33, 1998–19 I.R.B. 7

98–34, 1998–18 I.R.B. 15

98–35, 1998–21 I.R.B. 6

98–36, 1998–23 I.R.B. 10

98–37, 1998–26 I.R.B. 6

98–38, 1998–27 I.R.B. 29

98–39, 1998–26 I.R.B. 36

98–42, 1998–28 I.R.B. 9

Announcements:

98–1, 1998–2 I.R.B. 38

98–2, 1998–2 I.R.B. 38

98–3, 1998–2 I.R.B. 38

98–4, 1998–4 I.R.B. 31

98–5, 1998–5 I.R.B. 25

98–6, 1998–5 I.R.B. 25

98–7, 1998–5 I.R.B. 26

98–8, 1998–6 I.R.B. 96

98–9, 1998–7 I.R.B. 35

98–10, 1998–7 I.R.B. 35

98–11, 1998–8 I.R.B. 42

98–12, 1998–8 I.R.B. 43

98–13, 1998–8 I.R.B. 43

98–14, 1998–8 I.R.B. 44

98–15, 1998–10 I.R.B. 36

98–16, 1998–9 I.R.B. 17

98–17, 1998–9 I.R.B. 16

98–18, 1998–10 I.R.B. 44

98–19, 1998–10 I.R.B. 44

98–20, 1998–11 I.R.B. 25

98–21, 1998–11 I.R.B. 26

98–22, 1998–12 I.R.B. 33

98–23, 1998–12 I.R.B. 34

98–24, 1998–12 I.R.B. 35

98–25, 1998–13 I.R.B. 43

98–26, 1998–14 I.R.B. 28

98–27, 1998–15 I.R.B. 30

98–28, 1998–15 I.R.B. 30

98–29, 1998–16 I.R.B. 48

98–30, 1998–17 I.R.B. 38

98–32, 1998–17 I.R.B. 39

98–33, 1998–17 I.R.B. 39

98–34, 1998–17 I.R.B. 39

98–35, 1998–17 I.R.B. 40

98–36, 1998–18 I.R.B. 18

98–37, 1998–19 I.R.B. 24

98–38, 1998–19 I.R.B. 26

98–39, 1998–20 I.R.B. 24

98–40, 1998–20 I.R.B. 24

98–41, 1998–20 I.R.B. 25

98–42, 1998–21 I.R.B. 26

98–43, 1998–21 I.R.B. 26

98–44, 1998–22 I.R.B. 24

98–45, 1998–23 I.R.B. 18

98–46, 1998–25 I.R.B. 11

98–47, 1998–23 I.R.B. 5

98–48, 1998–24 I.R.B. 6

98–49, 1998–23 I.R.B. 19

98–50, 1998–23 I.R.B. 20

98–51, 1998–24 I.R.B. 7

98–52, 1998–24 I.R.B. 37

98–53, 1998–24 I.R.B. 37

98–54, 1998–25 I.R.B. 11

98–55, 1998–26 I.R.B. 41

98–56, 1998–26 I.R.B. 44

98–57, 1998–28 I.R.B. 11

98–58, 1998–28 I.R.B. 12

98–59, 1998–28 I.R.B. 12

98–60, 1998–27 I.R.B. 39

98–61, 1998–27 I.R.B. 38

98–63, 1998–28 I.R.B. 12

98–64, 1998–28 I.R.B. 14

98–65, 1998–28 I.R.B. 14

98–66, 1998–28 I.R.B. 15

98–67, 1998–28 I.R.B. 15

Notices:

98–1, 1998–3 I.R.B. 42

98–2, 1998–2 I.R.B. 22

Proposed Regulations:

PS–158–86, 1998–11 I.R.B. 13

REG–100841–97, 1998–8 I.R.B. 30

REG–102144–98, 1998–15 I.R.B. 25

REG–102894–97, 1998–3 I.R.B. 59

REG–104062–97, 1998–10 I.R.B. 34

REG–104537–97, 1998–16 I.R.B. 21

REG–104691–97, 1998–11 I.R.B. 13

REG–105163–97, 1998–8 I.R.B. 31

REG–106031–98, 1998–26 I.R.B. xx

REG–109333–97, 1998–9 I.R.B. 9

REG–109704–97, 1998–3 I.R.B. 60

REG–110965–97, 1998–13 I.R.B. 42

REG–115795–97, 1998–8 I.R.B. 33

REG–119449–97, 1998–10 I.R.B. 35

REG–120200–97, 1998–12 I.R.B. 32

REG–120882–97, 1998–14 I.R.B. 25

REG–121268–97, 1998–20 I.R.B. 12

REG–121755–97, 1998–9 I.R.B. 13

REG–208299–90, 1998–16 I.R.B. 26

REG–209276–87, 1998–11 I.R.B. 18

REG–209322–82, 1998–15 I.R.B. 26

REG–209373–81, 1998–14 I.R.B. 26

REG–209463–82, 1998–4 I.R.B. 27

REG–209476–82, 1998–8 I.R.B. 36

REG–209484–87, 1998–8 I.R.B. 40

REG–209485–86, 1998–11 I.R.B. 21

REG–209682–94, 1998–17 I.R.B. 20

REG–209807–95, 1998–8 I.R.B. 40

REG–243025–96, 1998–18 I.R.B. 18

REG–251502–96, 1998–9 I.R.B. 14

REG–251698–96, 1998–20 I.R.B. 14

Revenue Procedures:

98–1, 1998–1 I.R.B. 7

98–2, 1998–1 I.R.B. 74

98–3, 1998–1 I.R.B. 100

Revenue Rulings:

98–1, 1998–2 I.R.B. 5

98–2, 1998–2 I.R.B. 15

98–3, 1998–2 I.R.B. 4

98–4, 1998–2 I.R.B. 18

98–5, 1998–2 I.R.B. 20

98–6, 1998–4 I.R.B. 4

98–7, 1998–6 I.R.B. 6

98–8, 1998–7 I.R.B. 24

98–9, 1998–6 I.R.B. 5

98–10, 1998–10 I.R.B. 11

98–11, 1998–10 I.R.B. 13

98–12, 1998–10 I.R.B. 5

98–13, 1998–11 I.R.B. 4

98–14, 1998–11 I.R.B. 4

98–15, 1998–12 I.R.B. 6

98–16, 1998–13 I.R.B. 18

98–17, 1998–13 I.R.B. 21

98–18, 1998–14 I.R.B. 22

98–19, 1998–15 I.R.B. 5

98–20, 1998–15 I.R.B. 8

98–21, 1998–18 I.R.B. 7

98–22, 1998–19 I.R.B. 5

98–23, 1998–18 I.R.B. 5

98–24, 1998–19 I.R.B. 6

98–25, 1998–19 I.R.B. 4

98–26, 1998–21 I.R.B. 4

98–27, 1998–22 I.R.B. 4

98–28, 1998–22 I.R.B. 5

98–29, 1998–24 I.R.B. 4

98–30, 1998–25 I.R.B. 8

98–31, 1998–25 I.R.B. 4

98–32, 1998–25 I.R.B. 4

1 See footnote at end of list.

July 20, 1998

1998–29 I.R.B.

Numerical Finding List—Continued

Bulletins 1998–1 through 1998–28

Revenue Rulings—Continued

98–33, 1998–27 I.R.B. 26

Treasury Decisions:

8740, 1998–3 I.R.B. 4

8741, 1998–3 I.R.B. 6

8742, 1998–5 I.R.B. 4

8743, 1998–7 I.R.B. 26

8744, 1998–7 I.R.B. 20

8745, 1998–7 I.R.B. 15

8746, 1998–7 I.R.B. 4

8747, 1998–7 I.R.B. 18

8748, 1998–8 I.R.B. 24

8749, 1998–7 I.R.B. 16

8750, 1998–8 I.R.B. 4

8751, 1998–10 I.R.B. 23

8752, 1998–9 I.R.B. 4

8753, 1998–9 I.R.B. 6

8754, 1998–10 I.R.B. 15

8755, 1998–10 I.R.B. 21

8756, 1998–12 I.R.B. 4

8757, 1998–13 I.R.B. 4

8758, 1998–13 I.R.B. 15

8759, 1998–13 I.R.B. 19

8760, 1998–14 I.R.B. 4

8761, 1998–14 I.R.B. 13

8762, 1998–14 I.R.B. 15

8763, 1998–15 I.R.B. 5

8764, 1998–15 I.R.B. 9

8765, 1998–16 I.R.B. 11

8766, 1998–16 I.R.B. 17

8767, 1998–16 I.R.B. 4

8768, 1998–20 I.R.B. 4

8769, 1998–28 I.R.B. 4

8770, 1998–27 I.R.B. 4

1 A cumulative list of all revenue rulings, revenue

procedures, Treasury decisions, etc., published in

Internal Revenue Bulletins 1997–27 through

1997–52 will be found in Internal Revenue Bulletin

1998–1, dated January 5, 1998.

1998–29 I.R.B.

July 20, 1998

Finding List of Current Action on

Previously Published Items1

Bulletins 1998–1 through 1998–28

Revenue Procedures:

91–59

Updated and superseded by

98–25, 1998–11 I.R.B. 7

94–16

Modified and superseded by

98–22, 1998–12 I.R.B. 11

Revenue Procedures—Continued

97–34

Superseded by

98–35, 1998–21 I.R.B. 6

97–35

Modified by

98–39, 1998–26 I.R.B. xx

97–53

Superseded by

98–3, 1998–1 I.R.B. 100

Revenue Rulings:

93–62

Modified and superseded by

98–22, 1998–12 I.R.B. 11

68–352

Obsoleted by

98–24, 1998–19 I.R.B. 6

95–35

95–35A

Superseded by

98–19, 1998–7 I.R.B. 30

70–225

Modified by

98–27, 1998–22 I.R.B. 4

96–29

Modified and superseded by

98–22, 1998–12 I.R.B. 11

97–1

Superseded by

98–1, 1998–1 I.R.B. 7

97–2

Superseded by

98–2, 1998–1 I.R.B. 74

97–3

Superseded by

98–3, 1998–1 I.R.B. 100

97–4

Superseded by

98–4, 1998–1 I.R.B. 113

73–198

Modified by

98–24, 1998–19 I.R.B. 6

75–17

Supplemented and superseded by

98–5, 1998–2 I.R.B. 20

75–406

Obsoleted by

98–27, 1998–22 I.R.B. 4

92–19

Supplemented in part by

98–2, 1998–2 I.R.B. 15

96–30

Obsoleted by

98–27, 1998–22 I.R.B. 4

97–5

Superseded by

98–5, 1998–1 I.R.B. 155

97–6

Superseded by

98–6, 1998–1 I.R.B. 183

97–7

Superseded by

98–7, 1998–1 I.R.B. 222

97–8

Superseded by

98–8, 1998–1 I.R.B. 225

97–21

Superseded by

98–2, 1998–1 I.R.B. 74

97–24

97–24A

Superseded by

98–33, 1998–19 I.R.B. 7

97–26

Obsoleted by

98–28, 1998–15 I.R.B. 14

97–28

Superseded by

98–36, 1998–23 I.R.B. 10

97–32

Superseded by

98–37, 1998–26 I.R.B. 6

1 A cumulative finding list for previously published

items mentioned in Internal Revenue Bulletins

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

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

July 20, 1998

1998–29 I.R.B.

Notes

1998–29 I.R.B.

July 20, 1998

Notes

July 20, 1998

1998–29 I.R.B.

INTERNAL REVENUE BULLETIN

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