Bulletin No. 1996–51

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December 16, 1996

HIGHLIGHTS

OF THIS ISSUE

These synopses are intended only as aids to the reader in

identifying the subject matter covered. They may not be relied

upon as authoritative interpretations.

INCOME TAX

Rev. Rul. 96–60, page 4.

LIFO; price indexes; department stores. The October

1996 Bureau of Labor Statistics price indexes are

accepted for use by department stores employing the

retail inventory and last-in, first-out inventory methods

for valuing inventories for tax years ended on, or with

reference to, October 31, 1996.

EMPLOYEE PLANS

Rev. Proc. 96–56, page 11.

Section 457 “No Rule” revenue procedure. This procedure provides that the Office of Associate Chief Counsel

(Employee Benefits and Exempt Organizations) will not

issue advance ruling letters on the tax effect of the

provisions of the Small Business Job Protection Act

(P. L. 104–188), affecting plans described in section

457 of the Code. Rev. Proc. 96–3 amplified.

Notice 96–63, page 8.

Notice requesting comments on proposed guidance

relating to section 457 plans. This notice invites public

comment on possible changes to procedures relating to

requests for private letter rulings under section 457 of

the Code.

Notice 96–64, page 8.

Qualified retirement plans; effective dates; governments and tax-exempt organizations. The effective

dates of certain nondiscrimination regulations for plans

Finding Lists begin on page 17.

Announcement of Disbarments and Suspensions begins on page 15.

maintained by governments and tax-exempt organizations, is being extended. In addition, guidance on

several related tax matters, including application of the

aggregation rules under section 414(b) and (c) for such

plans, is provided.

EXEMPT ORGANIZATIONS

Announcement 96–123, page 13.

A list is given of organizations now classified as private

foundations.

Announcement 96–128, page 14.

A list is provided of organizations that no longer qualify

as organizations to which contributions are deductible

under section 170 of the Code.

ADMINISTRATIVE

Notice 96–53, page 5.

Medical savings accounts. This notice provides certain

basic information about medical savings accounts. It

does not attempt to cover all of the specific rules that

apply.

Announcement 96–129, page 14.

The 1996 update of Publication 938, Real Estate

Mortgage Investment Conduits (REMICs) Reporting Information (And Other Collateralized Debt Obligations

(CDOs)), is now available on the IRS Electronic Bulletin

Board (IRP-BBS).

Mission of the Service

The purpose of the Internal Revenue Service is to

collect the proper amount of tax revenue at the least

cost; serve the public by continually improving the

quality of our products and services; and perform in a

manner warranting the highest degree of public

confidence in our integrity, efficiency and fairness.

Statement of Principles

of Internal Revenue

Tax Administration

The Service also has the responsibility of applying

and administering the law in a reasonable,

practical manner. Issues should only be raised by

examining of ficers 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 cour tesy 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.

court decisions, rulings, and procedures must be considered, and Service personnel and others concerned are

cautioned against reaching the same conclusions in

other cases unless the facts and circumstances are

substantially the same.

The Bulletin is divided into four parts as follows:

Part I.—1986 Code.

This part includes rulings and decisions based on

provisions of the Internal Revenue Code of 1986.

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,

The first Bulletin for each month includes an index for

the matters published during the preceding month.

These monthly indexes are cumulated on a quarterly and

semiannual basis, and are published in the first Bulletin

of the succeeding quarterly and semi-annual period,

respectively.

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

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

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

Rev. Rul. 96–60

Section 472.—Last-in, First-out

Inventories

26 CFR 1.472–1: Last-in, first-out inventories.

LIFO; price indexes; department

stores. The October 1996 Bureau of

Labor Statistics price indexes are accepted for use by department stores

employing the retail inventory and lastin, first-out inventory methods for valuing inventories for tax years ended on,

or with reference to, October 31, 1996.

The following Department Store Inventory Price Indexes for October 1996

were issued by the Bureau of Labor

Statistics on November 14, 1996. The

indexes are accepted by the Internal

Revenue Service, under § 1.472–1(k) of

the Income Tax Regulations and Rev.

Proc. 86–46, 1986–2 C.B. 739, for appropriate application to inventories of

department stores employing the retail

inventory and last-in, first-out inventory

methods for tax years ended on, or with

reference to, October 31, 1996.

The Department Store Inventory Price

Indexes are prepared on a national basis

and include (a) 23 major groups of

departments, (b) three special combinations of the major groups—soft goods,

durable goods, and miscellaneous goods,

and (c) a store total, which covers all

departments, including some not listed

separately, except for the following:

candy, foods, liquor, tobacco, and contract departments.

BUREAU OF LABOR STATISTICS, DEPARTMENT STORE

INVENTORY PRICE INDEXES BY DEPARTMENT GROUPS

(January 1941 = 100, unless otherwise noted)

Oct. 1995

Oct. 1996

Percent Change

from Oct. 1995

to Oct. 19961

1. Piece Goods . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

2. Domestics and Draperies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

3. Women’s and Children’s Shoes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

4. Men’s Shoes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

5. Infants’ Wear . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

6. Women’s Underwear . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

7. Women’s Hosiery . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

8. Women’s and Girls’ Accessories . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

9. Women’s Outerwear and Girls’ Wear . . . . . . . . . . . . . . . . . . . . . . . . . . . .

10. Men’s Clothing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

11. Men’s Furnishings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

12. Boys’ Clothing and Furnishings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

13. Jewelry . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

14. Notions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

15. Toilet Articles and Drugs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

16. Furniture and Bedding . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

17. Floor Coverings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

18. Housewares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

19. Major Appliances . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

20. Radio and Television . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

21. Recreation and Education2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

22. Home Improvements2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

23. Auto Accessories2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

508.6

664.7

647.5

930.1

633.8

522.6

290.7

558.3

430.5

621.1

572.1

501.9

1014.3

782.3

868.7

666.4

567.4

801.2

248.9

80.6

114.0

122.1

107.0

561.0

641.0

661.8

920.1

626.4

536.8

285.7

557.5

417.5

621.9

581.7

490.7

1043.6

797.3

901.4

667.5

585.2

808.1

246.2

77.8

111.8

125.6

107.4

10.3

23.6

2.2

21.1

21.2

2.7

21.7

20.1

23.0

0.1

1.7

22.2

2.9

1.9

3.8

0.2

3.1

0.9

21.1

23.5

21.9

2.9

0.4

Groups 1–15: Soft Goods. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Groups 16–20: Durable Goods . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Groups 21–23: Misc. Goods2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

603.0

469.3

113.9

603.4

467.7

112.9

0.1

20.3

20.9

Store Total3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

556.9

556.1

20.1

Groups

Absence of a minus sign before percentage change in this column signifies price increase.

Indexes on a January 1986=100 base.

The store total index covers all departments, including some not listed separately, except for the following: candy, foods, liquor, tobacco, and contract

departments.

DRAFTING INFORMATION

The principal author of this revenue ruling is Stan Michaels of the Office of Assistant Chief Counsel (Income Tax and

Accounting). For further information regarding this revenue ruling, contact Mr. Michaels on (202) 622–4970 (not a toll-free

call).

Part III. Administrative, Procedural, and Miscellaneous

Medical Savings Accounts

Notice 96–53

The Health Insurance Portability and

Accountability Act of 1996 added section 220 to the Internal Revenue Code

to permit eligible individuals to establish

medical savings accounts (MSAs) under

a pilot project beginning on January 1,

1997.

This notice provides certain basic information about MSAs. It does not

attempt to summarize all of the specific

rules that apply.

The notice is divided into seven parts.

Part I of the notice explains what MSAs

are and who can have them. Part II

describes how MSAs can be established.

Parts III and IV cover contributions to

MSAs and distributions from MSAs.

Part V deals with the statutory limit on

the number of taxpayers who can use

MSAs. Part VI relates to information

reporting by MSA trustees and custodians, and Part VII addresses other matters relating to MSAs.

I. What Are MSAs and Who Can Have

Them?

Q–1. What is an MSA?

A–1. An MSA is a tax-exempt trust

or custodial account established for the

purpose of paying medical expenses in

conjunction with a high-deductible

health plan. A number of the rules that

apply to MSA are similar to rules that

apply to individual retirement arrangements (IRAs). For example, like an

IRA, an MSA is established for the

benefit of an individual, and is ‘‘portable’’. Thus, if the individual is an

employee who later changes employers

or leaves the work force, the MSA does

not stay behind with the former employer, but stays with the individual.

However, because MSAs differ from

IRAs in some important respects, taxpayers cannot use an IRA as an MSA,

and cannot combine an IRA and an

MSA in a single account.

Q–2. Who is eligible to have an

MSA?

A–2. Two types of individuals are

eligible to establish an MSA:

(1) an employee (or spouse of an

employee) of a ‘‘small employer’’ that

maintains an individual or family ‘‘highdeductible health plan’’ covering that

individual (employee or spouse); or

(2) a self-employed person (or the

spouse of a self-employed person) main-

taining an individual or family ‘‘highdeductible health plan’’ covering that

individual (self-employed person or

spouse).

See A–6 and A–7 for additional limitations on who may establish MSAs.

Q–3. What is a ‘‘small employer’’ for

MSA purposes?

A–3. An employer is a ‘‘small employer’’ for a calendar year if the employer employed an average of 50 or

fewer employees on business days during either of the two preceding calendar

years. Special rules apply to new employers, consolidated groups, and certain

employers that have added employees.

See Internal Revenue Code section

220(c)(4).

Q–4. What is a ‘‘high-deductible

health plan’’ that makes someone eligible for an MSA?

A–4. A ‘‘high-deductible health plan’’

is a health plan that: (1) has an annual

deductible of at least $1,500, and not

more than $2,250, for individual (selfonly) coverage; or (2) has an annual

deductible of at least $3,000, and not

more than $4,500, for family coverage

(coverage of more than one individual).

In addition, the annual out-of-pocket

expenses under the plan cannot exceed

$3,000 for individual coverage and

$5,500 for family coverage. Out-ofpocket expenses include deductibles, copayments and other amounts the participant must pay for covered benefits, but

do not include premiums.

Q–5. Can a health maintenance organization (HMO) offer a high-deductible

health plan?

A–5. Yes. A high-deductible health

plan may be offered by a variety of

entities, including insurance companies

and health maintenance organizations

(HMOs).

Q–6. What kind of other health coverage makes an individual ineligible for

an MSA?

A–6. Except as described in A–7, an

individual is ineligible for an MSA if

the individual is covered under a health

plan (whether as an individual, spouse,

or dependent) that is not a highdeductible health plan (including being

covered as a beneficiary under Medicare) as well as under a high-deductible

health plan.

Q–7. What other kinds of health coverage may an individual maintain without losing eligibility for an MSA?

A–7. An individual remains eligible

for an MSA if, in addition to a high-

deductible health plan, the individual

has coverage (whether provided through

insurance or otherwise) for accidents,

disability, dental care, vision care, longterm care, insurance for a specified

disease or illness, insurance that pays a

fixed amount per day (or other period)

of hospitalization; or insurance under

which substantially all of the coverage

provided relates to liabilities from workers’ compensation laws, torts, or ownership or use of property (such as automobile insurance).

Q–8. Are MSAs allowed under a cafeteria plan?

A–8. A high-deductible health plan

(described in A–4) can be provided as

part of a cafeteria plan. Such a highdeductible health plan can be used in

conjunction with an MSA. However, the

MSA must be established outside the

cafeteria plan, because a cafeteria plan

is not permitted to provide for contributions to an MSA. Outside of the cafeteria plan context, an employee will not

be subject to taxation merely because

the employee has a choice between

employer contributions to an MSA and

other employer-provided accident or

health coverage.

II. How Can An MSA Be Established?

Q–9. How does an eligible individual

establish an MSA?

A–9. Beginning January 1, 1997, any

eligible individual (as described in A–2)

can establish an MSA with a qualified

MSA trustee or custodian, in much the

same way that individuals establish

IRAs with qualified IRA trustees or

custodians. No permission or authorization from the Internal Revenue Service

(IRS) is necessary to establish an MSA.

Q–10. Who is a qualified MSA

trustee or custodian?

A–10. Any insurance company or any

bank (including a similar financial institution as defined in Internal Revenue

Code section 408(n)) can be a MSA

trustee or custodian. In addition, any

other persons already approved by the

IRS to be trustees or custodians of IRAs

are automatically approved to be MSA

trustees or custodians. Persons other

than banks, insurance companies, or

previously approved IRA trustees or

custodians may request approval to be a

trustee or custodian in accordance with

the procedures set forth in Treasury

Regulation § 1.408–2(e) (relating to

IRA nonbank trustees). An eligible indi-

vidual who is an employee may establish a MSA without any involvement of

the employer.

Q–11. How does an individual or

small employer sign up for or enroll in

the MSA pilot project?

A–11. Neither individuals nor small

employers ‘‘sign up for’’, ‘‘apply for’’,

or otherwise ‘‘enroll in’’ the MSA pilot

project. Rather, as described in A–9,

eligible individuals or small employers

can proceed to arrange for the establishment of MSAs with qualified trustees or

custodians without awaiting permission

or authorization from the IRS. (Sections

V and VI, below, give further information on the limits Congress imposed on

the number of taxpayers who can contribute to MSAs, and reporting by trustees and custodians.)

III. Contributions to MSAs.

Q–12. Who may contribute to an

MSA?

A–12. In the case of an MSA established by an employee or by the spouse

of an employee, the account holder

(employee or spouse, respectively) may

contribute to the MSA. Alternatively, the

employee’s employer may contribute to

the employee’s or spouse’s MSA. However, if an employer makes a contribution to an MSA for a given year, the

account holder of that MSA may not

contribute to any MSA for that year.

(Additional restrictions apply if an employee’s spouse receives MSA contributions. See Internal Revenue Code section 220(b)(5)(B).)

In the case of an MSA established by

a self-employed individual or spouse,

the account holder (the self-employed

individual or the spouse, respectively)

may contribute to the MSA.

Q–13. How much may be contributed

to an MSA?

A–13. The maximum annual amount

permitted to be contributed to an MSA

for a year is (1) for high-deductible

individual coverage, 65 percent of the

deductible; and (2) for high-deductible

family coverage, 75 percent of the deductible. The same annual contribution

limit applies whether the contributions

are made by an employee, an employer,

or a self-employed person. The annual

contribution limit is the sum of the

limits determined separately for each

month, based on status, eligibility and

health plan coverage as of the first day

of the month. Although the annual limitation is calculated using monthly data,

the contribution for the year can be

made in one or more payments, at the

convenience of the individual or the

employer, at any time within the deadline described in A–15.

For example, assume that an individual has self-only coverage under a

high-deductible health plan with an annual deductible of $1,800. The annual

contribution limit is 65 percent of

$1,800 ($1,170), and the monthly contribution limit is $97.50 ($1,170/12). Assume further that the individual is an

eligible individual for each of the first

eight months of the year, but not thereafter. In that case, the contribution limit

for the year is $780 (8 x $97.50).

Q–14. In what form may contributions be made to an MSA?

A–14. Contributions to an MSA must

be made in cash. For example, contributions may not be made in the form of

stock or other property.

Q–15. What is the tax treatment of an

eligible individual’s MSA contributions?

A–15. Contributions by an eligible

individual to an MSA (which are subject

to the limits described in A–13) are

deductible in computing adjusted gross

income. Accordingly, the contributions

are deductible whether or not the eligible individual itemizes deductions.

The tax deduction for an employee or

the employee’s spouse, however, cannot

exceed the individual’s compensation attributable to the employer that sponsors

the high-deductible plan covering the

individual. For a self-employed individual, in addition to the contribution

limits described in A–13, the tax deduction cannot exceed the individual’s

earned income from the trade or business with respect to which the highdeductible plan is established. In addition, the statute denies a tax deduction

to any individual who may be claimed

as a dependent on another taxpayer’s

return.

Q–16. What is the tax treatment of

employer contributions to an eligible

individual’s MSA?

A–16. Employer contributions to an

eligible individual’s MSA (which are

limited as described in A–13) are excludable from gross income, are not

subject to withholding for income tax,

and are not subject to other employment

taxes (i.e., Social Security and Medicare

taxes (FICA), federal unemployment tax

(FUTA) or railroad retirement tax).

Q–17. What is the tax treatment of

earnings on amounts in an MSA?

A–17. Earnings on amounts in an

MSA are not taxable prior to distribu-

tion from the MSA. See A–21 regarding

the taxation of distributions.

Q–18. When is the deadline for an

eligible individual to make contributions

to an MSA for any particular year?

A–18. An eligible individual may

make MSA contributions for a particular

tax year no later than the time prescribed by law (without extensions) for

filing the individual’s federal income tax

return for that year. As in the case of

IRAs, for calendar year taxpayers, generally the deadline for contributions to

an MSA is April 15 following the year

for which the contributions are made.

Q–19. What happens when MSA contributions exceed the amount that may

be deducted or excluded from gross

income?

A–19. Contributions by individuals

are not deductible to the extent that they

exceed the limits in A–13 or A–15 or if

they are made by an individual who is

not an eligible individual. Contributions

by employers are included in gross

income to the extent that they exceed

the limits in A–13 or if they are made

on behalf of an individual who is not an

eligible individual. In addition, under

the statute an excise tax of six percent

for each tax year is imposed on the

account holder for these excess individual and employer contributions. If,

however, the excess contributions for a

tax year and the net income attributable

to these excess contributions are paid to

the account holder before the last day

prescribed by law, including extensions,

for filing the account holder’s tax return

for the tax year, then (1) the excise tax

does not apply; (2) the distribution of

the excess contributions is not taxed;

and (3) the net income attributable to

the excess contributions is included in

the account holder’s gross income for

the tax year in which the distribution is

made.

IV. Distributions From MSAs.

Q–20. When is an individual permitted to receive distributions from an

MSA?

A–20. An individual is permitted to

receive a distribution from an MSA at

any time.

Q–21. How are distributions from an

MSA taxed?

A–21. Distributions from an MSA are

excludable from gross income if used

for medical expenses of the MSA account holder and the account holder’s

family, with certain exceptions, and are

includible in gross income if used for

any other purpose. Under one such

exception, in any year for which an

MSA contribution is made, distributions

from an MSA of that account holder to

pay medical expenses are included in

gross income if, for the month in which

the expense was incurred, the individual

for whom the expense was incurred was

not covered under a high-deductible

health plan or had coverage that makes

a person ineligible for an MSA (see A–4

through A–7). If included in gross income, distributions generally are subject

to an additional 15 percent tax. However, if distributions that are included in

gross income are made after the account

holder turns age 65, becomes disabled

or dies, the additional 15 percent tax

does not apply.

Q–22. What medical expenses are eligible for tax-free distributions?

A–22. Medical expenses are defined

under section 213 of the Code, but do

not include expenses for insurance other

than long-term care insurance, premiums

for ‘‘COBRA’’-type health care continuation coverage, or premiums for health

care coverage while an individual receives unemployment compensation.

Q–23. Must MSA trustees or custodians determine whether MSA distributions are used for medical expenses?

A–23. MSA trustees or custodians are

not required to determine whether MSA

distributions are used for medical expenses; individuals who have MSAs

should make this determination.

V. Cap on Number of Taxpayers Using

MSAs.

Q–24. Does the law limit the number

of MSAs that can be established?

A–24. Yes. The statute authorizes

MSAs as a ‘‘pilot project’’. Under the

statute, the pilot project is scheduled to

end in the year 2000; however, the

ability to establish MSAs generally will

end earlier if the number of taxpayers

contributing (or receiving employer contributions) to an MSA exceeds certain

statutory limits for 1997, 1998 or 1999.

In general, in determining whether the

limits are exceeded, certain previously

uninsured individuals will not be

counted.

Q–25. What happens after the pilot

project ends?

A–25. After the pilot project ends, all

eligible individuals (as described in

A–2) who previously made or received

MSA contributions (or who are employed by certain employers whose employees previously used MSAs) can

make or receive MSA contributions, if

they remain eligible individuals. In addition, individuals can continue to receive

distributions from MSAs as described in

A–20 through A–22.

Q–26. Do any special deadlines apply

if the ability to establish MSAs generally ends early?

A–26. If the statutory limits are

reached and therefore the ability to

establish MSAs ends early (as referred

to in A–24), an eligible individual who

is not covered by a high-deductible

health plan by a ‘‘cut-off date’’ specified

in the law will be unable to establish an

MSA, unless the individual’s employer

established a high-deductible health plan

for its employees before that date and

meets certain other requirements.

For employees of small employers,

the law specifies two potential cut-off

dates in 1997: September 1 and October

1. (For self-employed individuals, these

dates are October 1, and November 1,

1997, respectively.) For each of 1998

and 1999, the potential cut-off date is

October 1 of that year. If the employer’s

health plan has a regularly scheduled

enrollment period that occurs during the

period between the potential cut-off date

and the end of the relevant year, the

potential cut-off date is deferred to

December 31 of that year.

Q–27. How will a taxpayer know if

the ability to establish MSA generally

ends early?

A–27. If the statutory limits are

reached and therefore the ability to

establish MSAs generally ends early (as

described in A–24), the IRS will make

an announcement not later than October

1 of the relevant year stating the applicable cut-off date. The ability to establish MSAs will not be cut off before the

announcement is made.

VI. Information Reporting by Trustees

and Custodians.

Q–28. How will the number of MSAs

be determined?

A–28. The statute requires MSA

trustees and custodians to report by

August 1 of each year (1997, 1998, and

1999) the number of MSAs established

before July 1 of the year, and also to

report by June 1, 1997, the number of

MSAs established before May 1, 1997

(together with additional information).

See Internal Revenue Code section

220(j). The IRS will release a form to

be used in making these reports.

Q–29. What other information reporting is required?

A–29. Information reporting required

for MSAs is similar to information

reporting for IRAs. The IRS will release

forms and instructions to report MSA

contributions, distributions and deductions. For further information, contact

the Information Reporting Call Site on

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

VII. Other Matters.

MSAs are subject to a variety of

other statutory rules and provisions,

many of which are not addressed in this

notice. No inference should be drawn

regarding issues not expressly addressed

in this notice that may be suggested by

a particular question or answer, or by

the inclusion or exclusion of certain

questions.

Among the statutory provisions not

addressed in this notice are:

* The requirement that employers

make comparable MSA contributions for

all comparable participating employees.

* The investment restrictions on

MSAs.

* The rollover rules for MSAs.

* The special rules that apply upon

divorce or death of the account holder.

* The rules for allocating the deduction for MSA contributions between

married people.

* The Congressionally mandated

study as to the effects of MSAs in the

small group market on selection (including adverse selection), health costs (including the impact on premiums of

individuals with comprehensive coverage), use of preventive care, consumer

choice, the scope of coverage of highdeductible plans purchased in conjunction with such accounts, and other issues.

The statutory provisions governing

MSAs, including new section 220 of the

Internal Code are contained in section

301 of the Health Insurance Portability

and Accountability Act of 1996, P. L.

No. 104–191, 110 Stat. 1936.

VIII. Comments Invited.

Comments are invited on new section

220 of the Internal Revenue Code. Written comments are requested by March

16, 1997. Send submissions to:

CC:DOM:CORP:R (Notice 96–53),

Room 5226, 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

(Notice 96–53), Courier’s Desk, Internal

Revenue Service, 1111 Constitution Av-

enue, NW, Washington, DC. Alternatively, taxpayers may submit comments

electronically via the internet by submitting comments directly to the IRS

internet site at htpi//www.irs.ustreas.gov/

prod/tax_regs/comments.html.

The principal author of this notice is

Felix Zech of the Office of Associate

Chief Counsel (Employee Benefits and

Exempt Organizations). For further information regarding this notice, call

(202) 622–4606 (not a toll-free call).

Request for Comments on the

Desirability of Guidance Relating to

Section 457 Nonqualified Deferred

Compensation Plans of State and

Local Government and Tax-Exempt

Employers

Notice 96–63

This notice invites public comment on

possible changes to procedures relating

to requests for private letter rulings

under § 457 of the Code. These changes

may include (1) the publication of

model amendments for existing § 457

plans in lieu of the issuance of rulings

on individual plan amendments reflecting changes applicable to plans that

meet the requirements of § 457(b) under the Small Business Job Protection

Act of 1996, P.L. 104–188 (‘‘SBJPA’’),

and (2) the creation of a Master and

Prototype plan program for plans that

meet the requirements of § 457(b).

BACKGROUND

Section 457 plans are nonqualified,

deferred compensation plans established

by state and local government and taxexempt employers. These employers

may establish either eligible plans that

meet the requirements of § 457(b) or

ineligible § 457(f) plans. The plans are

subject to the specific requirements and

deferral limitations of § 457 of the

Code. Under § 457(a), compensation

deferred pursuant to eligible plans that

meet the requirements of § 457(b) and

the income attributable to such deferred

compensation is not taxable until the

taxable year in which the deferred

amounts are actually paid or made available to the plan participant or other

beneficiary. In contrast, compensation

deferred under a plan described in

§ 457(f) is included in the participant’s

or beneficiary’s gross income for the

first taxable year in which there is no

substantial risk of forfeiture of the rights

to the compensation. In addition, prior

to the enactment of the SBJPA,

§ 457(b)(6) mandated that eligible plans

under § 457(b) be unfunded and that

plan assets not be set aside for the

exclusive benefit of participants.

The SBJPA changed certain requirements for plans under § 457(b). Section

457(g), added by § 1448 of the SBJPA,

now mandates that all assets and income

of eligible state and local government

plans (but not eligible plans of taxexempt entities) must be held in trust

for the exclusive benefit of participants

and their beneficiaries. The trust requirement applies immediately to eligible

plans established after August 20, 1996.

For government plans already in existence on that date, the effective date of

the § 457(g) requirement is January 1,

1999. However, a trust may be added to

existing government plans at any time.

In addition, all plans that meet the

requirements of § 457(b) may implement changes to § 457(e) made by

§ 1447 of the SBJPA. Section 457(e)(9)

provides that certain benefits will not be

treated as made available by reason of

certain elections with regard to distributions from eligible § 457(b) plans. Also,

§ 457(e)(15) provides a cost-of-living

adjustment for the maximum deferral

amount under § § 457(b)(2) and (c)(1)

of the Code. These amendments made

by § 1447 of the SBJPA apply to taxable years beginning after December 31,

1996.

The Service is considering issuing

model language that will provide plan

sponsors of eligible plans that meet the

requirements of § 457(b) with a streamlined method for amending their plans

to comply with the new requirements of

§ 457. This model language can be

adopted by existing eligible plans in lieu

of receiving a new ruling under

§ 457(b). This approach will provide

time and cost savings to employers who

have previously received favorable ruling letters with respect to their § 457(b)

plans.

In addition, the Service is considering

the establishment of a ruling program

for master and prototype § 457(b) plans

that will consider the statutory changes

to § 457 under the SBJPA. The Service

believes that this type of program is

particularly well suited to ruling requests under § 457(b). For example,

under such a program, if a state creates

a plan, it can then be adopted by the

political subdivisions, agencies and instrumentalities of that state, without the

need for individual rulings for each state

employer that adopts the same plan. In

addition, the prototype plan program

could be used by banks, insurance companies and mutual fund companies, who

may be interested in receiving advance

rulings for plans that meet the requirements of § 457(b).

REQUEST FOR PUBLIC

COMMENT

The Service is now evaluating possible changes to the advance letter ruling program for eligible § 457 plans.

Accordingly, the Service requests comments concerning the usefulness of the

model language and master and prototype plan approaches, and welcomes

comments on any other useful approaches the Service might consider.

Comments can be addressed to

CC:DOM:CORP:R (Notice 96–63),

room 5228, Internal Revenue Service,

POB 7604, Ben Franklin Station, Washington, DC 20044. Alternatively, taxpayers may transmit comments electronically via the IRS Internet site at http://

www.irs.ustreas.gov/prod/tax_regs/

comments.html. In the alternative,

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

CC:DOM:CORP:R (Notice 96–63),

Courier’s Desk, Internal Revenue Building, 1111 Constitution Avenue NW.,

Washington, DC.

DRAFTING INFORMATION

The principal author of this revenue

procedure is Cheryl Press of the Office

of the Associate Chief Counsel (Employee Benefits and Exempt Organizations). For further information regarding

this notice, contact Cheryl Press at (202)

622–6030 (not a toll-free number).

Nondiscrimination Rules for Plans

Maintained by Governments and

Tax-Exempt Organizations

Notice 96–64

I. PURPOSE

This notice addresses certain issues

relating to the nondiscrimination rules

that apply to qualified plans maintained

by governments and by organizations

exempt from taxation under § 501(a) of

the Internal Revenue Code (‘‘tax-exempt

organizations’’).

For governmental plans, this notice—

• Extends the date for applying the

regulations under § 401(k) and (m) until

the first plan year beginning on or after

October 1, 1997 (or, if later, 90 days

after the opening of the first legislative

session beginning on or after October 1,

1997, of the governing body with authority to amend the plan, if that body

does not meet continuously);

• Clarifies that deemed satisfaction

of the § 401(a)(4) and § 410(b) nondiscrimination and minimum coverage

rules also applies for purposes of the

references to those sections under

§ 401(k) and (m);

• Provides a special option for applying the § 401(k) and (m) nondiscrimination tests for years before 1999;

and

• Allows governments until the 2001

plan year to apply, for nondiscrimination

purposes, a reasonable, good faith interpretation of existing law in determining

which entities must be aggregated, with

any further guidance applying prospectively for plan years beginning in or

after 2001.

For plans maintained by tax-exempt

organizations, this notice—

• Extends the date for applying the

regulations under §§ 401(a)(4), 401(a)(5), 401(l), 410(b), 414(r), and 414(s)

until the first plan year beginning on or

after October 1, 1997;

• Extends the remedial amendment

period and other administrative relief

until the last day of the first plan year

beginning on or after October 1, 1997;

• Extends through the 1997 plan

year the relief under existing regulations

permitting employees of certain taxexempt entities to be disregarded in

applying § 410(b) to a § 401(k) plan

maintained by a taxable entity; and

• Allows tax-exempt organizations

until the 2001 plan year to apply, for

nondiscrimination purposes, a reasonable, good faith interpretation of existing

law in determining which entities must

be aggregated, with any further guidance

applying prospectively for plan years

beginning in or after 2001.

ary 1, 1999, or 90 days after the

opening of the first legislative session

beginning on or after January 1, 1999,

of the governing body with authority to

amend the plan, if that body does not

meet continuously (‘‘1999 legislative

date’’). For plan years beginning before

the applicable effective date, governmental plans are deemed to satisfy

§§ 401(a)(4), 401(a)(26), 401(k), 401(m), 410(b), and 414(s).

Announcement 95–48 also provides

that the remedial amendment period under § 401(b) for governmental plans

extends to the last day of the first plan

year beginning on or after the later of

January 1, 1999, or the 1999 legislative

date. During the remedial amendment

period, additional administrative relief

provided under Notice 92–36, 1992–2

C.B. 364, continues to be available.

Announcement 95–48 solicited comments on the application of the nondiscrimination requirements to governmental plans. Comments included discussion

of state law restrictions on modifying

benefits for current employees and noted

that it may be difficult to identify the

appropriate governmental entity to be

treated as the employer for purposes of

nondiscrimination testing. For example,

in the case of a state-wide plan covering

members of a particular occupation

(such as public school teachers), questions have been raised whether the employers for testing purposes would be

the special districts (such as the school

districts), the local governments, or

other governmental entities. Comments

also raised the issue of whether deemed

satisfaction of § 401(a)(4) and § 410(b)

by a governmental plan applies for

purposes of certain requirements under

§ 401(k) and (m).

II. BACKGROUND

Announcement 95–48 provides that,

in the case of plans maintained by

tax-exempt organizations, other than

church plans described in § 410(c)(1)(B) (‘‘nonelecting church plans’’), the

regulations under §§ 401(a)(4), 401(a)(5), 401(l), 410(b), 414(r), and 414(s)

apply to plan years beginning on or

after January 1, 1997. For plan years

beginning before that effective date, a

plan maintained by a tax-exempt organization must be operated in accordance

with a reasonable, good faith interpretation of §§ 401(a)(4), 401(a)(5), 401(l),

410(b), 414(r), and 414(s). The remedial

amendment period for plans maintained

by tax-exempt organizations was ex-

A. Governmental Plans

Announcement 95–48, 1995–23 I.R.B.

13, provides that, in the case of governmental plans described in § 414(d), the

regulations under § 401(k) and (m) apply to plan years beginning on or after

the later of January 1, 1997, or 90 days

after the opening of the first legislative

session beginning on or after January 1,

1997, of the governing body with authority to amend the plan, if that body

does not meet continuously. The regulations under §§ 401(a)(4), 401(a)(26),

410(b), and 414(s) apply to plan years

beginning on or after the later of Janu-

B. Plans Maintained by TaxExempt Organizations

tended in Announcement 95–48 to the

last day of the first plan year beginning

on or after January 1, 1997. During the

remedial amendment period, additional

administrative relief provided under Notice 92–36 continues to be available.

(See section V of Notice 92–36, and

section IV of Rev. Proc. 94–13, 1994–1

C.B. 566, for the definition of ‘‘plan

maintained by a tax-exempt organization.’’)

Announcement 95–48 solicited comments on the issue of which entities

must be aggregated under § 414(b) and

organizations. No comments were submitted on behalf of tax-exempt organizations in response to Announcement

95–48, and the Treasury and the Service

have not identified any other unique

characteristics of tax-exempt organizations that require special rules for applying §§ 401(a)(4), 401(a)(5), 401(l),

410(b), 414(r), or 414(s) to plans maintained by tax-exempt organizations

(other than nonelecting church plans).

C. Nonelecting Church Plans

Under Announcement 95–48, in the

case of nonelecting church plans, the

regulations under §§ 401(a)(4), 401(a)(5), 401(l), and 414(s) apply to plan

years beginning on or after January 1,

1999. For plan years beginning before

that effective date, a nonelecting church

plan must be operated in accordance

with a reasonable, good faith interpretation of §§ 401(a)(4), 401(a)(5), 401(l),

and 414(s). The remedial amendment

period for nonelecting church plans was

extended in Announcement 95–48 to the

last day of the first plan year beginning

on or after January 1, 1999. During the

remedial amendment period, additional

administrative relief provided under Notice 92–36 continues to be available.

III. EXTENSION OF EFFECTIVE

DATES

A. Governmental Plans

Under the extension provided by this

notice, in the case of governmental

plans, the regulations under § 401(k)

and (m) apply only to plan years beginning on or after the later of October 1,

1997, or 90 days after the opening of

the first legislative session beginning on

or after October 1, 1997, of the governing body with authority to amend the

plan, if that body does not meet continuously. For plan years beginning before

this extended effective date, governmental plans are deemed to satisfy § 401(k)

and (m). The special rule in § 1.402(a)–

1(d)(3)(v) of the Income Tax Regulations (providing an income tax deferral

for certain elective contributions) is extended for the same period. The Treasury and the Service do not anticipate

issuing any further guidance on the

application of the regulations under

§ 401(k) and (m) to governmental plans

prior to the effective date.

B. Plans Maintained by TaxExempt Organizations

Under the extension provided by this

notice, in the case of plans maintained

by tax-exempt organizations (other than

nonelecting church plans), the regulations under §§ 401(a)(4), 401(a)(5),

401(l), 410(b), 414(r), and 414(s) apply

only to plan years beginning on or after

October 1, 1997. For plan years beginning before this extended effective date,

such plans must be operated in accordance with a reasonable, good faith

interpretation of these sections. The

Treasury and the Service do not anticipate issuing any further guidance on the

application of the regulations under

these sections to plans maintained by

tax-exempt organizations prior to the

effective date.

C. Nonelecting Church Plans

As noted above, under Announcement

95–48, in the case of nonelecting church

plans, the regulations under §§ 401(a)(4), 401(a)(5), 401(l), and 414(s) do not

apply until the 1999 plan year.

IV. EXTENSION OF REMEDIAL

AMENDMENT PERIOD AND

ADMINISTRATIVE RELIEF

A. Remedial Amendment Period

Notice 92–36 and Announcement

95–48 set forth the remedial amendment

period described in § 401(b) applicable

to governmental plans and plans maintained by tax-exempt organizations. The

remedial amendment period is the period during which a plan may be

amended retroactively to comply with

certain plan qualification requirements.

Notice 92–36 makes additional administrative relief available during the remedial amendment period. For example,

the transition relief under Alternative II

D of Notice 88–131, 1988–2 C.B. 546,

applies. This permits, during the remedial amendment period, the continued

accrual of certain benefits under a plan

that would otherwise fail to comply with

§ 401(a)(4) until the plan is amended to

comply with that section. In addition,

for purposes of testing benefits, rights

and features for the first plan year in

which the regulations under § 401(a)(4)

are effective, Notice 92–36 provides that

any amendment made during the plan

year regarding eligibility for a benefit,

right or feature may be treated as if it

had been in effect for the entire plan

year.

B. Governmental Plans and

Nonelecting Church Plans

As noted above, under Announcement

95–48, administrative relief under Notice 92–36, including the remedial

amendment period, extends to the last

day of the first plan year beginning on

or after the later of January 1, 1999, or

the 1999 legislative date in the case of

governmental plans, and to the last day

of the first plan year beginning on or

after January 1, 1999, in the case of

nonelecting church plans.

C. Plans Maintained by TaxExempt Organizations

Under this notice, the remedial

amendment period for plans maintained

by tax-exempt organizations (other than

nonelecting church plans) is extended to

the last day of the first plan year

beginning on or after October 1, 1997.

The additional administrative relief provided under Notice 92–36 also applies

through this extended remedial amendment period. Thus, in the case of a plan

with a plan year of October 1 through

September 30, any amendments required

to comply with the regulations under

§§ 401(a)(4), 401(a)(5), 401(l), 410(b),

414(r), and 414(s) for the plan year

beginning October 1, 1997, must be

made by September 30, 1998. In the

case of a plan using a calendar plan

year, these regulations are first effective

for the 1998 plan year, and any amendments required to comply with these

regulations for that year must be made

by December 31, 1998.

V. SPECIAL RULES FOR § 401(k)

AND (m) PLANS

A. Governmental Plans

1. Application of §§ 401(a)(4) and

410(b)

As noted above, for governmental

plans, the regulations under §§ 401(a)(4), 401(a)(26), 410(b), and 414(s) apply

to plan years beginning on or after the

later of January 1, 1999, or the 1999

legislative date. For plan years begin-

ning before the applicable effective date,

governmental plans are deemed to satisfy these provisions. Certain provisions

of § 401(k) and (m) and the regulations

thereunder separately require that a plan,

or certain aspects of a plan, satisfy

§ 401(a)(4) or 410(b). For example,

§ 401(k)(3)(A)(i) requires that the employees eligible to benefit under a cash

or deferred arrangement satisfy § 410(b)(1). This notice clarifies that, for plan

years beginning before the later of January 1, 1999, or the 1999 legislative date,

a governmental plan is deemed to satisfy § 401(a)(4) and § 410(b) for all

purposes, including for purposes of

§ 401(k) and (m). Thus, for example, a

governmental plan that is subject to

§ 401(k) is deemed to satisfy § 401(k)(3)(A)(i) without regard to whether the

group of eligible employees satisfies

§ 410(b)(1), and a governmental plan

that is subject to § 401(m) is deemed to

satisfy § 401(a)(4) and § 410(b) for

purposes of § 1.401(m)–1(a)(2) and

(e)(4).

2. Special Testing Rule

Under §§ 1.410(b)–7(c)(4)(ii)(C),

1.401(k)–1(g)(11), and 1.401(m)–1(f)(14), in the case of a plan that covers

employees of more than one employer,

the tests under § 401(k)(3) and

§ 401(m)(2) must be applied on an

employer-by-employer basis. As discussed above, comments have noted that

it may be difficult to identify the appropriate employer for purposes of testing a

plan that covers employees of different

governmental entities. Under this notice,

for plan years beginning before the later

of January 1, 1999, or the 1999 legislative date, in applying the tests under

§ 401(k)(3) and § 401(m)(2) to a governmental plan the employees covered

by the plan may be treated as employed

by a single governmental employer.

Thus, the tests under § 401(k)(3) and

§ 401(m)(2) may be applied to a governmental plan on a plan-wide basis,

notwithstanding the fact that the plan

may cover employees of more than one

governmental employer.

B. Plans Maintained by Controlled

Groups Consisting of TaxExempt and Taxable Entities

Some employers consist of taxexempt entities and taxable entities that

must be aggregated under § 414(b) or

qualified. Under § 401(k)(4)(B), prior to

its amendment by § 1426 of the Small

Business Job Protection Act of 1996

(‘‘SBJPA’’), tax-exempt organizations

were precluded from establishing plans

that included qualified cash or deferred

arrangements under § 401(k). Thus, an

employer that included both taxable and

tax-exempt entities was only permitted

to maintain a plan that included a

qualified cash or deferred arrangement

under § 401(k) for the taxable entities.

However, the SBJPA amended § 401(k)(4)(B) to repeal this prohibition and

permit tax-exempt entities to establish

such plans for plan years beginning after

1996.

Special rules are provided in

§§ 1.401(a)(26)–1(b)(4) and 1.410(b)–

6(g) for a qualified cash or deferred

arrangement under § 401(k) for the employees of a taxable entity that must be

aggregated with a tax-exempt entity.

Under these special rules, if certain

requirements are met, the employees of

the tax-exempt entity that are precluded

from being covered in the qualified cash

or deferred arrangement may be disregarded when determining whether the

arrangement maintained by the taxable

entity satisfies § 401(a)(26) or

§ 410(b). The special rules apply only

to employees whose employer is precluded under § 401(k)(4)(B) from maintaining a qualified cash or deferred

arrangement.

Beginning in 1997, these special rules

would no longer apply because employees of a tax-exempt entity are permitted

to be covered by a qualified cash or

deferred arrangement. The Treasury and

the Service recognize that this change

presents practical issues for employers

consisting of both tax-exempt and taxable entities as they consider possible

redesign of their retirement programs in

light of § 1426 of the SBJPA. Consequently, this notice extends the relief

provided under § 1.410(b)–6(g) for

these employers through the 1997 plan

year. Through the 1997 plan year only,

these employers may continue to disregard employees of tax-exempt entities

when testing a qualified cash or deferred

arrangement maintained by a taxable

entity in accordance with § 1.410(b)–

6(g).

Section 1432 of the SBJPA provides

that, beginning in the 1997 plan year,

§ 401(a)(26) applies only to defined

benefit plans. Accordingly, it is not

necessary to extend the relief provided

by § 1.401(a)(26)–1(b)(4) with respect

to § 401(a)(26).

VI. 403(b) PLANS

Notice 89–23, 1989–1 C.B. 654, discusses the nondiscrimination requirements under § 403(b)(12)(A) for annuity contracts, custodial accounts, or

retirement income accounts purchased

under plans eligible for favorable tax

treatment under § 403(b) (‘‘403(b)

plans’’). Section 403(b)(12)(A)(i) provides that, with respect to nonelective

contributions, a 403(b) plan must meet

the requirements of §§ 401(a)(4), (5),

(17) and (26), 401(m), and 410(b). Notice 89–23 provides that § 403(b)(12) is

satisfied if an employer operates its

403(b) plan in accordance with a reasonable, good faith interpretation of

§ 403(b)(12). As provided in Announcement 95–48, until further guidance is

issued, employers maintaining 403(b)

plans may continue to rely on Notice

89–23. However, employers maintaining

403(b) plans may not continue to rely

on a reasonable, good faith interpretation of § 401(a)(17), but must comply

with the regulations under § 401(a)(17)

as of the applicable effective dates set

forth in § 1.401(a)(17)–1(d). Of course,

for the period for which a qualified plan

is deemed to satisfy any particular statutory nondiscrimination requirement, the

nonelective contributions under a governmental 403(b) plan also are deemed

to satisfy that requirement.

VII. APPLICATION OF § 414(b)

AND (c)

Until further guidance is issued, governments and tax-exempt organizations

(including churches) may apply a reasonable, good faith interpretation of existing law in determining which entities

must be aggregated under § 414(b) and

(c). Any further guidance will be applied

on a prospective basis only and will not

be effective before plan years beginning

in 2001.

The Treasury and the Service invite

specific suggestions for an aggregation

standard or standards appropriate for

tax-exempt organizations under § 414(b), (c) and (o). In particular, comments

are requested on the appropriateness of

the standard described in Section

V.B.2.a of Notice 89–23, under which

two entities are in the same controlled

group if at least 80% of the directors,

trustees or other individual members of

one entity’s governing body are either

representatives of or directly or indirectly control, or are controlled by, the

other entity. However, because questions

have arisen as to whether this

standard would be appropriate and sufficient in all circumstances, the Treasury

and the Service intend to consider alternative and additional standards as well.

VIII. COMMENTS

Comments or suggestions in response

to this notice should be submitted by

April 30, 1997, and should be addressed

to: CC:DOM:CORP:T:R (Notice 96–64),

Room 5226, Internal Revenue Service,

POB 7604, Ben Franklin Station, Washington, D.C. 20044. Alternatively, taxpayers may hand-deliver comments between the hours of 8 a.m. and 5 p.m. to:

CC:DOM:CORP:T:R (Notice 96–64),

Courier’s desk, Internal Revenue Service, 1111 Constitution Ave., NW, Washington, DC, or may submit comments

electronically via the IRS internet site at

http://www.irs.ustreas.gov/prod/tax_regs/

comments.html.

IX. EFFECT ON OTHER

DOCUMENTS

Notice 89–23 and Notice 92–36 are

modified.

DRAFTING INFORMATION

The principal author of this notice is

Diane S. Bloom of the Employee Plans

Division. For further information regarding this notice, please contact the Employee Plans Division’s taxpayer assistance telephone service at (202) 622–

6074 or (202) 622–6075, between the

hours of 1:30 p.m. and 4 p.m. Eastern

Time, Monday through Thursday, or Ms.

Bloom at (202) 622–6214. Alternatively,

please contact Patricia McDermott of

the Office of the Associate Chief Counsel (Employee Benefits and Exempt Organizations) at (202) 622–6030. (These

telephone numbers are not toll-free.)

26 CFR 601.201: Rulings and determinations

letters.

Rev. Proc. 96–56

Section 1. PURPOSE

This revenue procedure amplifies Rev.

Proc. 96–3, 1996–1 I.R.B. 82, which

sets forth areas of the Internal Revenue

Code (‘‘Code’’) under the jurisdiction of

the Associate Chief Counsel (Employee

Benefits and Exempt Organizations) in

which the Internal Revenue Service will

not issue advance rulings.

Section 2. BACKGROUND

Rev. Proc. 96–3, section 5, lists specific areas in which rulings or determi-

nation letters will not be issued because

the areas are under extensive study. This

revenue procedure adds a subparagraph

for certain rulings involving § 457

nonqualified deferred compensation

plans of state and local government

and tax-exempt entities. The Small Business Job Protection Act of 1996, P.L.

104–188 (‘‘SBJPA’’) has substantially

changed the requirements for state and

local government plans that meet the

requirements of § 457(b) by mandating

that all assets and income of these plans

be held in trust for the exclusive benefit

of the participants and their beneficiaries. The SBJPA has also added other

provisions which are now available for

use in all plans that meet the requirements of § 457(b).

Section 3. PROCEDURE

Rev. Proc. 96–3 is amplified by adding to section 5 the following: Section

457. Deferred Compensation Plans of

State and Local Government and TaxExempt Organizations. The tax effect of

provisions under the Small Business Job

Protection Act affecting plans described

in § 457. Taxpayers may, however, still

receive advance rulings on § 457 plans

based on the law in effect prior to

enactment of the Small Business Job

Protection Act.

Section 4. EFFECTIVE DATE

This revenue procedure applies to all

ruling requests, including any pending in

the National Office before December 16,

1996. In pending cases, taxpayers may

withdraw their ruling request from con-

sideration and obtain a refund of their

user fee. If the ruling request is not

withdrawn, the ruling will analyze the

taxpayer’s plan under the law in effect

before the enactment of the SBJPA.

Section 5. EFFECTS ON OTHER

REVENUE PROCEDURES

Rev. Proc. 96–3 is amplified.

DRAFTING INFORMATION

The principal author of this revenue

procedure is Cheryl Press of the Office

of the Associate Chief Counsel (Employee Benefits and Exempt Organizations). For further information regarding

this revenue procedure, contact Cheryl

Press at (202) 622–6030 (not a toll-free

number).

Part IV. Items of General Interest

Foundations Status of Certain

Organizations

Announcement 96–123

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:

Abba Koval Perpetual Fund

Corporation, Cleveland, OH

Academic Freedom Lecture Fund, Ann

Arbor, MI

ACCHA, Inc., Columbus, OH

Action Group to Save America’s

Economy, Willoughby, OH

African American Math Science

Coalition, Cincinnati, OH

Albion Volunteer Service Organization,

Albion, MI

American Against Corruption in

Government, New Richmond, IN

American Foundation for Vision

Awareness Michigan Affiliate,

Lansing, MI

Anchor Bay Soccer Organization, New

Baltimore, MI

Apex Capital, Inc., Cleveland, OH

Arbor Health Associates, Manchester,

Association of Black Automotive

Employees, Inc., Detroit, MI

A Star is Born Foundation, Inc., Kings

Mills, OH

Attendance Plus, Detroit, MI

Back to Christ Ministry BTC, Detroit,

Balanced Scale, Inc., Cleveland Hts.,

Ben Davis Girls Basketball Association,

Inc., Indianapolis, IN

Bethune Community Council Non-Profit

Housing Corporation, Detroit, MI

Boy Scouts of America Troop 97, Inc.,

Mt. Clemens, MI

Bridge to Russia, Cleveland, OH

Buckeye Babes Girls Fast Pitch, Inc.,

Uniontown, OH

Canton Dry Times Club, Canton, OH

Center for Corrections Development,

Inc., Indianapolis, IN

Champaign County Preservation

Alliance, Urbana, OH

Charisma, Inc., Portland, IN

Charterhouse Academies, Inc., Detroit,

Children’s Policy Institute of West

Virginia, Inc., Charleston, WV

Christian Family Bible Fellowship, Inc.,

Marion, OH

Cleveland Foundation for Architecture,

Inc., Cleveland, OH

Clothe-A-Child, Newark, OH

Cloverville Community Center, Inc.,

Muskegon, MI

Columbus Babe Ruth Baseball, Inc.,

Columbus, OH

Concerned Ministries, Inc., Fruitport, MI

Council of Minority Business

Organizations 401k Plan, Lansing, MI

Creation Expeditions, Inc., Indianapolis,

Dancers Studio, Inc. of Columbus,

Columbus, OH

Delta Tau Delta Scholarship Fund,

Cincinnati, OH

Dennis D. Mclain Charitable

Foundation, Inc., Brighton, MI

Doulos Ministries, Cincinnati, OH

Dozier Scholarship Fund of Peace and

Goodwill MBC, Detroit, MI

DUCC, Inc., Camden, IN

East Chicago Centennial Committee,

Inc., East Chicago, IN

Elisha Community Redevelopment

Corporation, Cincinnati, OH

Elkins Main Street Project, Inc., Elkins,

Lambda Chi Alpha/Sigma Chapter

Education Foundation, Inc., St. Clair

Shores, MI

Lansing Crusader Booster Club,

Incorporated, Lansing, MI

Lawrence Township Boys Basketball

League, Inc., Indianapolis, IN

Lectonia-Washingtonville Baseball

Association, Lectonia, OH

Licking Youth Life Center, Newark, OH

Life and Greer Home, Inc., Detroit, MI

Life in the Mainstream, Euclid, OH

Lift ICO UCO Community

Development Corporation, East

Chicago, IN

Lithotech of Owensboro Kentucky, Inc.,

Owensboro, KY

Little Buns, Inc., Carmel, IN

Lion of Judah Ministries, Inc., Galena,

The Loft, Benton Harbor, MI

Lost Creek Volunteer Fire Department,

Inc., Dice, KY

Lowell Main Street Association Inc.,

Lowell, IN

Making Opportunities Very Exciting,

Jackson, KY

The Manger, Conneaut, OH

Marion Noon Kiwanis Foundation, Inc.,

Marion, OH

Matteson Institute, Inc., Berrien Springs,

Mednotes 1995, Columbus, OH

Mentor Soccer Club, Mento, OH

Metro East Chamber of Commerce

Childrens Medical Trust Fund, St.

Clair Shores, MI

Metropolitan Childrens Museum, Inc.,

Mt. Pleasant, MI

Midwest Hispanic Coalition, Toledo, OH

Mitchell Swim Club, Mitchell, IN

Mr. Residential Services Fourth

Housing, Inc., Lima, OH

Mr. Residential Services—Fifth Housing

Corporation, Inc., Lima, OH

New Ohio Volunteer Advocates, Inc.,

Akron, OH

New Start Ministries, Akron, OH

Northwest Ohio Leadership Foundation,

Sylvania, OH

Ohio AIDS Coalition, Columbus, OH

Ohio Area Service Committee of

Cocaine Anonymous, Toledo, OH

Ohio Cardinal, Akron, OH

Ohio Chiropractic Foundation,

Columbus, OH

Olentangy Youth Athletic Association,

Powell, OH

Open Gate Shelter, Cleveland, OH

Overeaters Anonymous Western

Michigan Inter Group, Newaygo, MI

Parents of Teen Parents, Akron, OH

Positive Peer Plus, Inc., Detroit, OH

Potawatomi Creative Playground

Project, Inc., South Bend, IN

Progressive Action Council, Cleveland,

Property Development Engineers, Inc.,

Detroit, MI

Pulmonary Rehabilitation Organization

of Northern Ohio, Parma, OH

Quality Community Housing

Corporation, Pontiac, MI

Quin Centennial Redevelopment

Corporation, Columbus, OH

Reasonable Choices, Inc., Springfield,

Re-Connect of Michigan, Ann Arbor, MI

Responsible Social Values Program of

Muskingum County, Inc., Zanesville,

Rhea House, Inc., Ripley, WV

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.

Deletions From Cumulative List of

Organizations Contributions to

Which Are Deductible Under

Section 170 of the Code

Announcement 96–128

The names of organizations that no

longer qualify as organizations described

in section 170(c)(2) of the Internal Revenue Code of 1986 are listed below.

Generally, the Service will not disallow deductions for contributions made

to a listed organization on or before the

date of announcement in the Internal

Revenue Bulletin that an organization

no longer qualifies. However, the Service is not precluded from disallowing a

deduction for any contributions made

after an organization ceases to qualify

under section 170(c)(2) if the organization has not timely filed a suit for

declaratory judgment under section 7428

and if the contributor (1) had knowledge

of the revocation of the ruling or determination letter, (2) was aware that such

revocation was imminent, or (3) was in

part responsible for or was aware of the

activities or omissions of the organization that brought about this revocation.

If on the other hand a suit for declaratory judgment has been timely

filed, contributions from individuals and

organizations described in section

170(c)(2) that are otherwise allowable

will continue to be deductible. Protection under section 7428(c) would begin

on December 16, 1996, and would end

on the date the court first determines

that the organization is not described in

section 170(c)(2) as more particularly

set forth in section 7428(c)(1). For individual contributors, the maximum deduction protected is $1,000, with a husband and wife treated as one contributor.

This benefit is not extended to any

individual who was responsible, in

whole or in part, for the acts or omissions of the organization that were the

basis for revocation.

Society of Separationists, Inc.

Austin, TX

Charles E. Stevens American Atheist

Library and Archives, Inc.

Austin, TX

Availability of Publication 938 on

IRS Electronic Bulletin Board

(IRP–BBS)

Announcement 96–129

The 1996 update of Publication 938,

Real Estate Mortgage Investment Conduits (REMICs) Reporting Information

(And Other Collateralized Debt Obligations (CDOs)), is now available on the

IRS Electronic Bulletin Board (IRP–

BBS). It contains information received

by the Service during the period September 16, 1995, through August 31,

1996. You can download the publication

if you have a computer with a modem.

Dial 1–304–264–7070 and follow the

instructions. If you have problems

downloading the publication, call the

help line at 1–304–263–8700 and ask

for the bulletin board. (These are not

toll-free calls.)

Announcement of the Disbarment, Suspension, or Consent to Voluntary

Suspension of Attorneys, Certified Public Accountants, Enrolled Agents, and

Enrolled Actuaries From Practice Before the Internal Revenue Service

Under 31 Code of Federal Regulations, Part 10, an attorney, certified public accountant, enrolled agent, or enrolled actuary, in order to avoid the

institution or conclusion of a proceeding

for his disbarment or suspension from

practice before the Internal Revenue Service, may offer his consent to suspension

from such practice. The Director of

Practice, in his discretion, may suspend

an attorney, certified public accountant,

enrolled agent, or enrolled actuary in

accordance with the consent offered.

Attorneys, certified public accountants, enrolled agents, and enrolled actuaries are prohibited in any Internal Rev-

enue Service matter from directly or

indirectly employing, accepting assistance from, being employed by or sharing fees with, any practitioner disbarred

or suspended from practice before the

Internal Revenue Service.

To enable attorneys, certified public

accountants, enrolled agents, and enrolled actuaries to identify practitioners

under consent suspension from practice

before the Internal Revenue Service, the

Director of Practice will announce in the

Internal Revenue Bulletin the names and

addresses of practitioners who have

been suspended from such practice, their

designation as attorney, certified public

accountant, enrolled agent, or enrolled

actuary, and date or period of suspension. This announcement will appear in

the weekly Bulletin at the earliest practicable date after such action and will

continue to appear in the weekly Bulletins for five successive weeks or for as

many weeks as is practicable for each

attorney, certified public accountant, enrolled agent, or enrolled actuary so

suspended and will be consolidated and

published in the Cumulative Bulletin.

The following individuals have been

placed under consent suspension from

practice before the Internal Revenue

Service:

Name

Address

Designation

Date of Suspension

Sherman, Richard M.

Hunter, Lewis

Hisken, Donald

Byrne, Steven P.

Mulrey, Robert M.

Edwards, Ronald A.

Hart Jr., Charles E.

Willner, Peter D.

May, Gary

Josephson, Elliott

Capwill Jr., James A.

Hazel, John J.

Jacobs, Patrick

Lau, William

Franklin, Gene L.

Winterhalter, Charles L.

Cremer, Patricia L.

Gardner, Stephen A.

Masini, David

Cunningham, Michael

Smith, Robert

Crystal Lake, IL

Jacksonville, FL

Red Bluff, CA

Arcadia, CA

Milton, MA

Plymouth, MI

Wilmington, OH

Stowe, VT

Madison, WI

Northbrook, IL

Solon, OH

Ridgefield, CT

St. Paul, MN

Crete, IL

Lees Summit, MO

Cincinnati, OH

Roundup, MT

Dallas, TX

Wheat Ridge, CO

Lafayette, IN

Chicago, IL

CPA

Attorney

CPA

Attorney

CPA

Attorney

CPA

Enrolled Agent

CPA

Enrolled Agent

CPA

Attorney

CPA

October 18, 1996 to July 17, 1997

October 25, 1996 to January 24, 1997

November 1, 1996 to March 31, 1997

November 1, 1996 to January 31, 1997

November 1, 1996 to October 31, 1997

November 1, 1996 to April 30, 1998

November 1, 1996 to October 31, 1998

November 1, 1996 to April 30, 1997

November 1, 1996 to October 31, 1998

November 1, 1996 to February 28, 1997

November 1, 1996 to January 31, 1997

November 1, 1996 to December 31, 1996

November 1, 1996 to June 30, 1997

November 1, 1996 to January 31, 1997

November 1, 1996 to April 30, 1998

November 5, 1996 to May 4, 1997

November 7, 1996 to May 6, 1999

November 12, 1996 to November 11, 1997

November 12, 1996 to August 11, 1997

January 1, 1997 to December 31, 1997

Announcement of the Expedited Suspension of Attorneys, Certified Public

Accountants, Enrolled Agents, and Enrolled Actuaries From Practice Before the

Internal Revenue Service

Under title 31 of the Code of Federal

Regulations, section 10.76, the Director

of Practice is authorized to immediately

suspend from practice before the Internal

Revenue Service any practitioner who,

within five years, from the date the

expedited proceeding is instituted, (1)

has had a license to practice as an

attorney, certified public accountant, or

actuary suspended or revoked for cause;

or (2) has been convicted of any crime

under title 26 of the United States Code

or, of a felony under title 18 of the

United States Code involving dishonesty

or breach of trust.

Attorneys, certified public accountants, enrolled agents, and enrolled actu-

aries are prohibited in any Internal Revenue Service matter from directly or

indirectly employing, accepting assistance from, being employed by, or sharing fees with, any practitioner disbarred

or suspended from practice before the

Internal Revenue Service.

To enable attorneys, certified public

accountants, enrolled agents, and enrolled actuaries to identify practitioners

under expedited suspension from practice before the Internal Revenue Service,

the Director of Practice will announce in

the Internal Revenue Bulletin the names

and addresses of practitioners who have

been suspended from such practice, their

designation as attorney, certified public

accountant, enrolled agent, or enrolled

actuary, and date or period of suspension. This announcement will appear in

the weekly Bulletin at the earliest practicable date after such action and will

continue to appear in the weekly Bulletins for five successive weeks or for as

many weeks as is practicable for each

attorney, certified public accountant, enrolled agent, or enrolled actuary so

suspended and will be consolidated and

published in the Cumulative Bulletin.

The following individuals have been

placed under suspension from practice

before the Internal Revenue Service by

virtue of the expedited proceeding provisions of the applicable regulations:

Name

Address

Designation

Date of Suspension

Pacchiana, Paul

Rosenberger, David H.

Gudes, Gerald

Donnelly, Richard S.

Burrows, William D.

Klausner, Julius

Glessner, Randy

Aspland, Frieda R.

Chappaqua, NY

Centerville, OH

W. Bloomfield, MI

Asheville, NC

Dallas, TX

Scarsdale, NY

Omak, WA

Greenville, SC

Attorney

Enrolled Agent

CPA

Attorney

CPA

Indefinite from October 9, 1996

Indefinite from October 21, 1996

Indefinite from October 22, 1996

Indefinite from November 13, 1996

Definition of Terms

Revenue rulings and revenue procedures

(hereinafter referred to as ‘‘rulings’’)

that have an effect on previous rulings

use the following defined terms to describe the effect:

Amplified describes a situation where

no change is being made in a prior

published position, but the prior position

is being extended to apply to a variation

of the fact situation set forth therein.

Thus, if an earlier ruling held that a

principle applied to A, and the new

ruling holds that the same principle also

applies to B, the earlier ruling is amplified. (Compare with modified, below).

Clarified is used in those instances

where the language in a prior ruling is

being made clear because the language

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

prior ruling is being changed.

Distinguished describes a situation

where a ruling mentions a previously

published ruling and points out an essential difference between them.

Modified is used where the substance

of a previously published position is

being changed. Thus, if a prior ruling

held that a principle applied to A but not

to B, and the new ruling holds that it

applies to both A and B, the prior ruling

Abbreviations

The following abbreviations in current use and

formerly used will appear in material published in

the Bulletin.

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.

ER—Employer.

PR—Partner.

ERISA—Employee Retirement Income Security Act.

EX—Executor.

F—Fiduciary.

PRS—Partnership.

PTE—Prohibited Transaction Exemption.

Pub. L.—Public Law.

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.

FC—Foreign Country.

FICA—Federal Insurance Contribution Act.

Del. Order—Delegation Order.

M—Minor.

DISC—Domestic International Sales Corporation.

Nonacq.—Nonacquiescence.

DR—Donor.

O—Organization.

E—Estate.

P—Parent Corporation.

X—Corporation.

EE—Employee.

PHC—Personal Holding Company.

Y—Corporation.

E.O.—Executive Order.

PO—Possession of the U.S.

Z—Corporation.

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.

REIT—Real Estate Investment Trust.

Rev. Proc.—Revenue Procedure.

Rev. Rul.—Revenue Ruling.

S—Subsidiary.

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

Stat.—Statutes at Large.

T—Target Corporation.

T.C.—Tax Court.

T.D.—Treasury Decision.

TFE—Transferee.

I.R.B.—Internal Revenue Bulletin.

TFR—Transferor.

LE—Lessee.

T.I.R.—Technical Information Release.

LP—Limited Partner.

TP—Taxpayer.

LR—Lessor.

TR—Trust.

TT—Trustee.

U.S.C.—United States Code.

Numerical Finding List1

Court Decisions:

Revenue Procedures:

Bulletins 1996–27 through 1996–50

2058, 1996–34 I.R.B. 13

2059, 1996–34 I.R.B. 10

2060, 1996–34 I.R.B. 5

96–36, 1996–27 I.R.B. 11

96–37, 1996–29 I.R.B. 16

96–39, 1996–33 I.R.B. 11

96–40, 1996–32 I.R.B. 8

96–41, 1996–32 I.R.B. 9

96–42, 1996–32 I.R.B. 14

96–43, 1996–35 I.R.B. 6

96–44, 1996–35 I.R.B. 7

96–45, 1996–35 I.R.B. 12

96–46, 1996–38 I.R.B. 144

96–47, 1996–39 I.R.B. 10

96–48, 1996–39 I.R.B. 10

96–49, 1996–43 I.R.B. 74

96–50, 1996–47 I.R.B. 10

96–51, 1996–47 I.R.B. 10

96–52, 1996–48 I.R.B. 10

96–53, 1996–49 I.R.B. 9

96–54, 1996–50 I.R.B. 9

96–55, 1996–50 I.R.B. 10

Announcements:

96–61, 1996–27 I.R.B. 72

96–62, 1996–28 I.R.B. 55

96–63, 1996–29 I.R.B. 18

96–64, 1996–29 I.R.B. 18

96–65, 1996–29 I.R.B. 18

96–66, 1996–29 I.R.B. 19

96–67, 1996–30 I.R.B. 27

96–68, 1996–31 I.R.B. 45

96–69, 1996–32 I.R.B. 38

96–70, 1996–32 I.R.B. 40

96–71, 1996–33 I.R.B. 16

96–72, 1996–33 I.R.B. 16

96–73, 1996–33 I.R.B. 18

96–74, 1996–33 I.R.B. 19

96–75, 1996–34 I.R.B. 29

96–76, 1996–34 I.R.B. 29

96–77, 1996–35 I.R.B. 15

96–78, 1996–35 I.R.B. 15

96–79, 1996–35 I.R.B. 15

96–80, 1996–35 I.R.B. 16

96–81, 1996–36 I.R.B. 13

96–82, 1996–36 I.R.B. 14

96–83, 1996–36 I.R.B. 14

96–84, 1996–36 I.R.B. 14

96–85, 1996–37 I.R.B. 20

96–86, 1996–37 I.R.B. 21

96–87, 1996–37 I.R.B. 21

96–88, 1996–38 I.R.B. 150

96–89, 1996–37 I.R.B. 22

96–90, 1996–37 I.R.B. 22

96–91, 1996–37 I.R.B. 23

96–92, 1996–38 I.R.B. 151

96–93, 1996–38 I.R.B. 151

96–94, 1996–38 I.R.B. 153

96–96, 1996–39 I.R.B. 41

96–97, 1996–39 I.R.B. 41

96–98, 1996–39 I.R.B. 42

96–99, 1996–39 I.R.B. 42

96–100, 1996–40 I.R.B. 10

96–101, 1996–40 I.R.B. 10

96–102, 1996–40 I.R.B. 11

96–103, 1996–40 I.R.B. 12

96–104, 1996–41 I.R.B. 10

96–105, 1996–42 I.R.B. 19

96–106, 1996–42 I.R.B. 23

96–107, 1996–42 I.R.B. 27

96–108, 1996–44 I.R.B. 15

96–109, 1996–43 I.R.B. 76

96–110, 1996–43 I.R.B. 77

96–111, 1996–44 I.R.B. 16

96–112, 1996–45 I.R.B. 7

96–113, 1996–44 I.R.B. 18

96–114, 1996–45 I.R.B. 7

96–115, 1996–45 I.R.B. 9

96–116, 1996–46 I.R.B. 12

96–117, 1996–46 I.R.B. 12

96–118, 1996–46 I.R.B. 12

96–119, 1996–46 I.R.B. 13

96–120, 1996–47 I.R.B. 12

96–121, 1996–47 I.R.B. 12

96–122, 1996–47 I.R.B. 13

96–124, 1996–49 I.R.B. 22

96–125, 1996–48 I.R.B. 21

96–126, 1996–50 I.R.B. 12

96–127, 1996–50 I.R.B. 12

Delegation Orders:

155 (Rev. 4), 1996–40 I.R.B. 9

Notices:

96–36, 1996–27 I.R.B. 11

96–37, 1996–31 I.R.B. 29

96–38, 1996–31 I.R.B. 29

96–39, 1996–32 I.R.B. 8

96–40, 1996–33 I.R.B. 11

96–41, 1996–35 I.R.B. 6

96–42, 1996–35 I.R.B. 6

96–43, 1996–36 I.R.B. 7

96–44, 1996–36 I.R.B. 7

96–45, 1996–39 I.R.B. 7

96–46, 1996–39 I.R.B. 7

96–47, 1996–39 I.R.B. 8

96–48, 1996–39 I.R.B. 8

96–49, 1996–41 I.R.B. 6

96–50, 1996–41 I.R.B. 6

96–51, 1996–42 I.R.B. 6

96–52, 1996–42 I.R.B. 8

96–54, 1996–44 I.R.B. 13

96–55, 1996–47 I.R.B. 7

96–56, 1996–47 I.R.B. 7

96–57, 1996–47 I.R.B. 9

96–58, 1996–49 I.R.B. 7

96–59, 1996–48 I.R.B. 10

96–60, 1996–49 I.R.B. 7

96–61, 1996–49 I.R.B. 8

96–62, 1996–49 I.R.B. 8

Proposed Regulations:

CO–9–96, 1996–34 I.R.B. 20

CO–24–96, 1996–30 I.R.B. 22

CO–25–96, 1996–31 I.R.B. 30

CO–26–96, 1996–31 I.R.B. 31

FI–59–94, 1996–30 I.R.B. 23

FI–32–95, 1996–34 I.R.B. 21

FI–48–95, 1996–31 I.R.B. 36

FI–28–96, 1996–31, I.R.B. 33

GL–7–96, 1996–33 I.R.B. 13

IA–292–84, 1996–28 I.R.B. 38

IA–26–94, 1996–30 I.R.B. 24

IA–42–95, 1996–49 I.R.B. 21

IA–29–96, 1996–33 I.R.B. 14

INTL–4–95, 1996–36 I.R.B. 8

PS–39–93, 1996–34 I.R.B. 27

PS–22–96, 1996–33 I.R.B. 15

REG–208215–91, 1996–38 I.R.B. 145

REG–209803–95, 1996–44 I.R.B. 14

REG–209826–96, 1996–42 I.R.B. 10

REG–209827–96, 1996–37 I.R.B. 19

REG–245562–96, 1996–41 I.R.B. 8

REG–251520–96, 1996–48 I.R.B. 15

Public Laws:

104–117, 1996–34 I.R.B. 19

104–134, 1996–38 I.R.B. 7

104–168, 1996–38 I.R.B. 8

104–191, 1996–43 I.R.B. 7

104–193, 1996–46 I.R.B. 4

Railroad Retirement Quarterly Rate

1996–29 I.R.B. 14

A cumulative list of all Revenue Rulings, Revenue Procedures, Treasury Decisions, etc., published in Internal Revenue Bulletins 1996–1

through 1996–26 will be found in Internal Revenue Bulletin 1996–27, dated July 1, 1996.

Revenue Rulings:

96–33, 1996–27 I.R.B. 4

96–34, 1996–28 I.R.B. 4

96–35, 1996–31 I.R.B. 4

96–36, 1996–30 I.R.B. 6

96–37, 1996–32 I.R.B. 4

96–38, 1996–33 I.R.B. 4

96–39, 1996–34 I.R.B. 4

96–41, 1996–45 I.R.B. 4

96–42, 1996–35 I.R.B. 4

96–43, 1996–36 I.R.B. 4

96–44, 1996–38 I.R.B. 4

96–45, 1996–39 I.R.B. 5

96–46, 1996–39 I.R.B. 5

96–47, 1996–40 I.R.B. 7

96–48, 1996–40 I.R.B. 4

96–49, 1996–41 I.R.B. 4

96–50, 1996–42 I.R.B. 4

96–51, 1996–43 I.R.B. 5

96–52, 1996–45 I.R.B. 5

96–53, 1996–47 I.R.B. 4

96–54. 1996–47 I.R.B. 5

96–55, 1996–49 I.R.B. 4

96–56, 1996–50 I.R.B. 7

96–57, 1996–50 I.R.B. 5

96–58, 1996–50 I.R.B. 4

96–59, 1996–50 I.R.B. 4

Tax Conventions:

1996–28 I.R.B. 36

1996–36 I.R.B. 6

1996–40 I.R.B. 8

1996–50 I.R.B. 8

Treasury Decisions:

8673, 1996–27 I.R.B. 4

8674, 1996–28 I.R.B. 7

8675, 1996–29 I.R.B. 5

8676, 1996–30 I.R.B. 4

8677, 1996–30 I.R.B. 7

8678, 1996–31 I.R.B. 11

8679, 1996–31 I.R.B. 4

8680, 1996–33 I.R.B. 5

8681, 1996–37 I.R.B. 17

8682, 1996–37 I.R.B. 4

8683, 1996–44 I.R.B. 9

8684, 1996–44 I.R.B. 4

8685, 1996–48 I.R.B. 4

Finding List of Current Action on

Previously Published Items1

Bulletins 1996–27 through 1996–50

*Denotes entry since last publication

Revenue Procedures:

67–396

Modified by

96–56, 1996–50 I.R.B. 7

80–27

Modified by

96–40, 1996–32 I.R.B. 8

87–32

Modified by

TD 8680, 1996–33 I.R.B. 5

91–22

Superseded by

96–53, 1996–49 I.R.B. 9

92–20

Modified by

TD 8680, 1996–33 I.R.B. 5

95–16

Superseded by

96–48, 1996–39 I.R.B. 10

95–29

Superseded by

96–36, 1996–27 I.R.B. 11

95–29A

Superseded by

96–36, 1996–27 I.R.B. 11

95–30

Superseded by

96–42, 1996–32 I.R.B. 14

95–46

Superseded by

96–48, 1996–39 I.R.B. 10

96–25

Modified by

96–58, 1996–50 I.R.B. 4

96–41

Modified by

Notice 96–49, 1996–41 I.R.B. 6

96–46

Supplemented by

96–51, 1996–47 I.R.B. 10

A cumulative finding list for previously published

items mentioned in Internal Revenue Bulletins

1996–1 through 1996–26 will be found in Internal

Revenue Bulletin 1996–27, dated July 1, 1996.

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