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Bulletin No. 1996–23

June 3, 1996

HIGHLIGHTS

OF THIS ISSUE

These synopses are intended only as aids to the reader in

identifying the subject matter covered. They may not be

relied upon as authoritative interpretations.

SPECIAL ANNOUNCEMENT

T.D. 8669, page 6.

Final regulations under section 936 of the Code relate

to the computation of combined taxable income under

the profit split method.

Announcement 96–54, page 12.

A public hearing will be held on July 24, 1996, on

proposed regulations relating, in part, to information

reporting and backup withholding under the Interest

and Dividend Tax Compliance Act of 1983.

EMPLOYEE PLANS

Announcement 96–53, page 12.

The application forms used to request determination

letters for qualified employee benefit plans have been

revised. Application forms having revision dates before

January 1, 1996, may be used until October 1, 1996.

INCOME TAX

T.D. 8662, page 5.

Final regulations under section 584 of the Code relate

to the diversification of common trust funds at the time

of a combination or division.

EXEMPT ORGANIZATIONS

T.D. 8663, page 4.

Final regulations under section 351 of the Code relate

to transfers to investment companies.

Announcement 96–55, page 12.

A list is given of organizations now classified as private

foundations.

Finding Lists begin on page 18.

Announcement of Disbarments and Suspensions begins on page 15.

Monthly Index for May begins on page 21.

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Mission of the Service

The purpose of the Internal Revenue Service is to

collect the proper amount of tax revenue at the least

cost; serve the public by continually improving the

quality of our products and services; and perform in a

manner warranting the highest degree of public

confidence in our integrity, efficiency and fairness.

Statement of Principles

of Internal Revenue

Tax Administration

The function of the Internal Revenue Service is to

administer the Internal Revenue Code. Tax policy

for raising revenue is determined by Congress.

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

carry out that policy by correctly applying the laws

enacted by Congress; to determine the reasonable

meaning of various Code provisions in light of the

Congressional purpose in enacting them; and to

perform this work in a fair and impartial manner,

with neither a government nor a taxpayer point of

view.

At the heart of administration is interpretation of the

Code. It is the responsibility of each person in the

Service, charged with the duty of interpreting the

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

provision and not to adopt a strained construction in

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

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

The Service also has the responsibility of applying

and administering the law in a reasonable,

practical manner. Issues should only be raised by

examining officers when they have merit, never

arbitrarily or for trading purposes. At the same

time, the examining officer should never hesitate

to raise a meritorious issue. It is also important

that care be exercised not to raise an issue or to

ask a court to adopt a position inconsistent with

an established Service position.

Administration should be both reasonable and

vigorous. It should be conducted with as little

delay as possible and with great courtesy and

considerateness. It should never try to overreach,

and should be reasonable within the bounds of law

and sound administration. It should, however, be

vigorous in requiring compliance with law and it

should be relentless in its attack on unreal tax

devices and fraud.

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Introduction

The Internal Revenue Bulletin is the authoritative

instrument of the Commissioner of Internal Revenue for

announcing official rulings and procedures of the

Internal Revenue Service and for publishing Treasury

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

interest. It is published weekly and may be obtained

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

consolidated semiannually into Cumulative Bulletins,

which are sold on a single-copy basis.

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

all substantive rulings necessary to promote a uniform

application of the tax laws, including all rulings that

supersede, revoke, modify, or amend any of those

previously published in the Bulletin. All published

rulings apply retroactively unless otherwise indicated.

Procedures relating solely to matters of internal

management are not published; however, statements of

internal practices and procedures that affect the rights

and duties of taxpayers are published.

Revenue rulings represent the conclusions of the

Service on the application of the law to the pivotal facts

stated in the revenue ruling. In those based on

positions taken in rulings to taxpayers or technical

advice to Service field offices, identifying details and

information of a confidential nature are deleted to

prevent unwarranted invasions of privacy and to comply

with statutory requirements.

Rulings and procedures reported in the Bulletin do not

have the force and effect of Treasury Department

Regulations, but they may be used as precedents.

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

as precedents by Service personnel in the disposition of

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

court decisions, rulings, and procedures must be

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

conclusions in other cases unless the facts and

circumstances are substantially the same.

The Bulletin is divided into four parts as follows:

Part I.—1986 Code.

This part includes rulings and decisions based on

provisions of the Internal Revenue Code of 1986.

Part II.—Treaties and Tax Legislation.

This part is divided into two subparts as follows:

Subpart A, Tax Conventions, and Subpart B, Legislation

and Related Committee Reports.

Part III.—Administrative, Procedural, and Miscellaneous.

To the extent practicable, pertinent cross references to

these subjects are contained in the other Parts and

Subparts. Also included in this part are Bank Secrecy

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

Treasury’s Office of the Assistant Secretary

(Enforcement).

Part IV.—Items of General Interest.

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

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

The first Bulletin for each month includes an index for

the matters published during the preceding month.

These monthly indexes are cumulated on a quarterly

and semiannual basis, and are published in the first

Bulletin of the succeeding quarterly and semi-annual

period, respectively.

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

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

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

Section 351.—Transfer to

Corporation Controlled by Transferor

DEPARTMENT OF THE TREASURY

Internal Revenue Service

26 CFR Part 1

On August 10, 1995, the Federal

Internal Revenue Code relating to

transfers of property to an investment

company (60 FR 40794). The proposed

rules were based on the conclusion that

transfers of diversified portfolios are

not inconsistent with the Congressional

purpose of section 351(e)(1).

Transfers to Investment Companies

2. Public Comments and the Final

Regulations

26 CFR 1.351–1: Transfer to corporation

controlled by transferor.

T.D. 8663

AGENCY: Internal Revenue Service

(IRS), Treasury.

ACTION: Final regulations.

SUMMARY: This document contains

final regulations amending regulations

under section 351(e) of the Internal

Revenue Code relating to transfers to

investment companies. The final regulations concern the treatment of certain transfers to a controlled corporation. Generally, the final regulations

amend the regulations to provide when

certain transfers will not cause a

diversification of the transferors’

interests.

EFFECTIVE DATE: These regulations

are effective May 2, 1996.

FOR FURTHER INFORMATION

CONTACT: Andrew M. Eisenberg,

(202) 622-7790 (not a toll-free

number).

SUPPLEMENTARY INFORMATION:

1. Background

This document contains final regulations under section 351. The final

regulations provide for the treatment of

certain transfers to a controlled corporation. Section 351(a) provides that no

gain or loss will be recognized if one

or more persons transfer property to a

corporation solely in exchange for

stock in the corporation and immediately after the exchange such person

or persons are in control of the

corporation. Section 351(e)(1) provides

that section 351(a) will not apply to a

transfer of property to an investment

company.

The IRS received comments from the

public on the proposed regulations. No

public hearing was requested and none

was held. The comments received were

generally supportive of the proposed

regulations. After consideration of all

the comments, the regulations proposed

by CO–19–95 are adopted as revised

by this Treasury decision. The principal

comments on the proposed regulations

are discussed below.

Government securities are not treated

as securities of an issuer for purposes

of the 25 and 50-percent tests. Several

commentators suggested that the final

regulations include specific assurance

that Government securities are not

treated as securities of an issuer in

applying the 25 and 50-percent tests

contained in section 368(a)(2)(F)(ii).

The proposed regulations generally

adopt the section 368(a)(2)(F)(ii) tests

for purposes of determining whether a

portfolio of stocks and securities is

diversified. However, the proposed regulations modify the 25 and 50-percent

tests of section 368(a)(2)(F)(ii) by

including Government securities in total assets (clause (iv) of section

368(a)(2)(F) excludes Government securities from total assets for purposes

of the 25 and 50-percent tests in clause

(ii) of section 368(a)(2)(F)). The final

regulations clarify that Government

securities, while included in total assets, are not treated as securities of an

issuer for purposes of the numerator of

the 25 and 50-percent tests of section

368(a)(2)(F)(ii).

The transfer of a diversified portfolio

of stocks and securities by any transferor satisfies the modified diversification test. One commentator suggested

that the final regulations should clarify

that any person, rather than corporate

transferors only, may satisfy the modi-

fied diversification test. The commentator is concerned that the use of the

section 368(a)(2)(F)(ii) tests, which are

adopted from a provision that applies

only to transfers by corporations, may

imply that the tests as applied in

section 351 are limited to corporate

transferors.

The Treasury and IRS do not intend

to limit application of the final regulations solely to corporate transferors.

The final regulations provide that a

portfolio will be diversified if it satisfies the 25 and 50-percent tests of

section 368(a)(2)(F)(ii) (as modified),

rather than section 368(a)(2)(F)(ii),

generally.

Transfers of interests in real property

to an investment company. One commentator suggested that the final regulations adopt a rule whereby transfers

of real property would not result in the

diversification of the transferors’ interests if each transferor transfers a

diversified portfolio of real property to

a Real Estate Investment Trust. The

subject of real property transfers is

beyond the scope of these final

regulations.

Retroactive effect of the final regulations. Several commentators suggested

that the final regulations include a

retroactive effective date. The final

regulations allow taxpayers who transfer diversified, but nonidentical, portfolios of stocks and securities before

May 2, 1996, to choose to treat the

transfers consistent with the final regulations or as transfers resulting in

diversification. However, transfers

completed on or after May 2, 1996 are

subject to the final regulations.

Special Analyses

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) and the Regulatory Flexibility Act (5 U.S.C. chapter 6) do not

apply to these regulations, and, therefore, a Regulatory Flexibility Analysis

is not required. Pursuant to section

7805(f) of the Internal Revenue Code,

the notice of proposed rulemaking

preceding these regulations was submit-

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ted to the Chief Counsel for Advocacy

of the Small Business Administration

for comment on its impact on small

business.

Drafting Information

The principal author of these regulations is Andrew M. Eisenberg, Office

of Assistant Chief Counsel (Corporate),

IRS. However, other personnel from

the IRS and Treasury Department

participated in their development.

Adoption of Amendment to the

Regulations

Accordingly, 26 CAR 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 1.351–1 is amended

by:

1. Redesignating paragraph (c)(6) as

paragraph (c)(7).

2. Adding new paragraph (c)(6) to

read as set forth below.

§1.351–1 Transfer to corporation

controlled by transferor.

(6)(i) For purposes of paragraph

(c)(5) of this section, a transfer of

stocks and securities will not be treated

as resulting in a diversification of the

transferors’ interests if each transferor

transfers a diversified portfolio of

stocks and securities. For purposes of

this paragraph (c)(6), a portfolio of

stocks and securities is diversified if it

satisfies the 25 and 50-percent tests of

section 368(a)(2)(F)(ii), applying the

relevant provisions of section

368(a)(2)(F). However, Government securities are included in total assets for

purposes of the denominator of the 25

and 50-percent tests (unless the Government securities are acquired to meet

the 25 and 50-percent tests), but are not

treated as securities of an issuer for

purposes of the numerator of the 25

and 50-percent tests.

(ii) Paragraph (c)(6)(i) of this section is effective for transfers completed

on or after May 2, 1996. Transfers of

diversified (within the meaning of

paragraph (c)(6)(i) of this section), but

nonidentical, portfolios of stocks and

securities completed before May 2,

1996, may be treated either—

(A) Consistent with paragraph

(c)(6)(i) of this section; or

(B) As resulting in diversification of

the transferors’ interests.

Margaret Milner Richardson,

Commissioner of Internal Revenue.

Approved March 6, 1996.

Leslie Samuels,

Assistant Secretary of Treasury.

(Filed by the Office of the Federal Register on

May 1, 1996, 8:45 a.m., and published in the

issue of the Federal Register for May 2, 1996,

61 F.R. 19544)

Section 584.—Common Trust Funds

26 CFR 1.584–4: Admission and withdrawal of

participants in the common trust fund.

T.D. 8662

DEPARTMENT OF THE TREASURY

Internal Revenue Service

26 CFR Part 1

Diversification of Common Trust

Funds

AGENCY: Internal Revenue Service

(IRS), Treasury.

ACTION: Final regulations.

SUMMARY: This document contains

final regulations relating to the diversification of common trust funds at the

time of a combination or division. The

final regulations affect common trust

funds and their participants.

EFFECTIVE DATE: May 2, 1996.

FOR FURTHER INFORMATION

CONTACT: Steven Schneider, (202)

622-3060 (not a toll-free number).

SUPPLEMENTARY INFORMATION:

Background

On August 10, 1995, a notice of

proposed rulemaking (PS–29–92

[1996–36 I.R.B. 32]) was published in

the Federal Register (60 FR 40796)

proposing amendments to the Income

Tax Regulations (26 CFR part 1) under

section 584 of the Internal Revenue

Code. Written comments responding to

this notice were received. No public

hearing was held because no hearing

was requested. After consideration of

all comments received, the proposed

regulations under section 584 are

adopted as revised by this Treasury

decision.

Explanation of Provisions

The final regulations modify the

diversification test applied to combining, dividing, and resulting common

trust funds at the time of a combination

or division. Under the existing regulations, which incorporate the diversification test of section 368(a)(2)(F)(ii),

Government securities are excluded in

determining total assets. These final

regulations modify the diversification

test so that Government securities are

included in determining total assets

when applying section 368(a)(2)(F)(ii).

This modified diversification test is

the same as that in the final regulations

under section 351(e), which deals with

transfers to investment companies.

These corresponding modifications ensure that a uniform diversification test

will be applied to common trust funds

and similar investment entities.

The final regulations also update the

regulations under section 584 to conform to changes in the law.

Changes to the Proposed Regulations

in Response to Comments

I. Clarification that Government

securities are not treated as

securities of an issuer

Two commentators suggested that

the final regulations include specific

assurance that Government securities

are not treated as securities of an issuer

in applying the 25 and 50-percent tests

contained in section 368(a)(2)(F)(ii) to

mergers and divisions of common trust

funds. The proposed regulations provide that Government securities are

included in total assets in applying the

25 and 50-percent tests to common

trust fund combinations and divisions,

but do not specifically state that

Government securities are not treated

as securities of an issuer. The final

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regulations clarify that Government

securities, while included in total assets, are not treated as securities of an

issuer for purposes of the numerator of

the 25 and 50-percent tests of section

368(a)(2)(F)(ii).

PART 1—INCOME TAXES

II. Clarification of the definition of

Government securities

§1.584–2 [Amended]

One commentator suggested that the

regulations broaden the definition of

the term Government securities to

include state and local government

obligations. The final regulations do

not adopt the suggestion.

Effective Date

These regulations apply to combinations and divisions of common trust

funds completed on or after May 2,

1996.

Paragraph 1. The authority citation

for part 1 continues to read in part as

follows:

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

Par. 2. Section 1.584–2 is amended

by:

1. Removing paragraph (b)(1).

2. Removing the paragraph designation (b)(2).

Par. 3. Section 1.584–4 is amended

by:

1. Removing paragraphs (a)(1) and

(a)(2).

2. Removing the last sentence in

paragraph (a) and adding 6 sentences in

its place.

3. Adding paragraph (e).

The additions read as follows:

Special Analyses

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 has also been

determined that section 553(b) of the

Administrative Procedure Act (5 U.S.C.

chapter 5) and the Regulatory Flexibility Act (5 U.S.C. chapter 6) do not

apply to these regulations and, therefore, a Regulatory Flexibility Analysis

is not required. Pursuant to section

7805(f) of the Internal Revenue Code,

the notice of proposed rulemaking

preceding these regulations was submitted to the Chief Counsel for Advocacy

of the Small Business Administration

for comment on its impact on small

business.

Drafting Information

The principal author of this regulation is Brian J. O’Connor, formerly of

the Office of Assistant Chief Counsel

(Passthroughs and Special Industries).

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:

§1.584–4 Admission and withdrawal

of participants in the common trust

fund.

(a) * * * When a participating interest is transferred by a bank, or by two

or more banks that are members of the

same affiliated group (within the meaning of section 1504), as a result of the

combination of two or more common

trust funds or the division of a single

common trust fund, the transfer to the

surviving or divided fund is not considered to be an admission or a withdrawal if the combining, dividing, and

resulting common trust funds have

diversified portfolios. For purposes of

this paragraph (a), a common trust fund

has a diversified portfolio if it satisfies

the 25 and 50-percent tests of section

368(a)(2)(F)(ii), applying the relevant

provisions of section 368(a)(2)(F).

However, Government securities are

included in total assets for purposes of

the denominator of the 25 and 50percent tests (unless the Government

securities are acquired to meet the 25

and 50-percent tests), but are not

treated as securities of an issuer for

purposes of the numerator of the 25

and 50-percent tests. In addition, for a

transfer of a participating interest in a

division of a common trust fund not to

be considered an admission or withdrawal, each participant’s pro rata

interest in each of the resulting common trust funds must be substantially

the same as was the participant’s pro

rata interest in the dividing fund.

However, in the case of the division of

a common trust fund maintained by

two or more banks that are members of

the same affiliated group resulting from

the termination of such affiliation, the

division will be treated as meeting the

requirements of the preceding sentence

if the written plans of operation of the

resulting common trust funds are substantially identical to the plan of

operation of the dividing common trust

fund, each of the assets of the dividing

common trust fund are distributed substantially pro rata to each of the resulting common trust funds, and each

participant’s aggregate interest in the

assets of the resulting common trust

funds of which he or she is a participant in substantially the same as was

the participant’s pro rata interest in the

assets of the dividing common trust

fund. The plan of operation of a resulting common trust fund will not be

considered to be substantially identical

to that of the dividing common trust

fund where, for example, the plan of

operation of the resulting common trust

fund contains restrictions as to the

types of participants that may invest in

the common trust fund where such restrictions were not present in the plan

of operation of the dividing common

trust fund.

(e) Effective date. The eighth sentence of paragraph (a) of this section is

effective for combinations and divisions of common trust funds completed

on or after May 2, 1996.

Margaret Milner Richardson,

Commissioner of Internal Revenue.

Approved March 6, 1996.

Leslie Samuels,

Assistant Secretary of the Treasury.

(Filed by the Office of the Federal Register on

May 1, 1996, 8:45 a.m., and published in the

issue of the Federal Register for May 2, 1996,

61 F.R. 19546)

Section 936.—Puerto Rico and

Possession Tax Credit

26 CFR 1.936–6: Intangible property income

when an election out is made; cost sharing

and profit split options; covered intangibles.

T.D. 8669

DEPARTMENT OF THE TREASURY

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Internal Revenue Service

26 CFR Part 1

decision. The revisions are discussed

below.

Computation of Combined Taxable

Income Under the Profit Split Method

When the Possession Product Is a

Component Product or an End-Product

Form for Purposes of the Possessions

Credit Under Section 936

Discussion

AGENCY: Internal Revenue Service

(IRS), Treasury.

ACTION: Final regulations.

SUMMARY: This document contains

final regulations relating to the computation of combined taxable income

under the profit split method. These

regulations amend the current regulations and provide revised rules for

taxpayers to compute combined taxable

income under the profit split method

when the possession product chosen for

purposes of section 936(h)(5) of the

Internal Revenue Code is a component

product or an end-product form. These

regulations are necessary to provide

guidance to taxpayers electing the

profit split method of computing taxable income under section 936(h)(5).

DATES: These regulations are effective

May 10, 1996.

See SUPPLEMENTARY INFORMATION for applicability dates.

FOR FURTHER INFORMATION

CONTACT: Jacob Feldman, 202-6223870 (not a toll-free number).

SUPPLEMENTARY INFORMATION:

Background

On January 12, 1994, the IRS

published a notice of proposed

rulemaking in the Federal Register

(INTL–0068–92, 59 FR 1690, [1994–1

C.B. 820]) relating to the computation

of combined taxable income under the

profit split method under section

936(h)(5) (relating to the possessions

credit for U.S. companies doing

qualified business in Puerto Rico and

certain U.S. possessions). A number of

written public comments were received

concerning the proposed regulations

and a public hearing was held on July

11, 1994. After consideration of all the

comments, the proposed regulations are

adopted as revised by this Treasury

The proposed regulations would

amend §1.936–6(b)(1), Q&A 12. Under

the proposed regulations, combined

taxable income for a taxpayer that

elects the profit split method for a

possession product that is either a

component product or an end-product

form would be determined by multiplying the combined taxable income of the

integrated product that includes the

possession product by a production cost

ratio. In the case of a component

product, the combined taxable income

of the integrated product would be

multiplied by a ratio the numerator of

which is the production costs of the

component product and the denominator of which is the production costs of

the integrated product. The combined

taxable income of an end-product form

would be determined in a similar

manner using the production costs of

the end-product form. The regulations

were proposed to be effective for

taxable years beginning after 1993.

Taxpayers have argued that the regulations should not be adopted as

proposed because they would violate

the arm’s length standard under section

482 and that a necessary consequence

of the abandonment of the arm’s length

standard would be distortions in taxpayers’ income. That is, income would

be computed inconsistently for related

versus unrelated party sales of the same

product, under the same terms and in

the same market.

The proposed regulations did not

apply the arm’s length standard to

component products and end-product

forms under the profit-split method

because application of section 482 in

this context is inconsistent with the

statutory framework. The effect of the

profit split method when applied to

possession products is to minimize

disputes between taxpayers and the IRS

because, unlike section 482 methods,

there is no need to perform functional

analyses to allocate income among the

parties. Because Congress eliminated

the section 482 analysis from the profit

split method, the proposed regulations

did not reinject this analysis into the

area of intermediate products.

In response to taxpayer comments,

however, the IRS and Treasury are

providing an election to taxpayers that

sell the same possession product in

both component form and integrated

form if the transactions meet certain

section 482 standards. This method is

both simple to apply and produces

consistent results with respect to related

and unrelated party transactions. Under

this method, the combined taxable

income from covered sales of the

component product shall be determined

by using the same per unit combined

taxable income as is derived from

uncontrolled sales of the product as an

integrated product. Taxpayers may

elect to compute the combined taxable

income for an end-product form in a

similar manner if all excluded components are manufactured by a member of

the affiliated group that includes the

possession corporation and also sold by

the group separately in uncontrolled

transactions. In that case, the combined

taxable income of the end-product form

will be computed by reducing the combined taxable income of the integrated

product that includes the end-product

form by the combined taxable income

of the excluded components determined

under the rules of section 936 as if the

excluded components were possession

products. In order to make the election,

the uncontrolled sales must meet the

comparability standards of the fourth

sentence of §1.482–3(b)(2)(ii)(A),

which requires that the uncontrolled

and controlled transactions have no

differences or minor differences for

which adjustment can be made. However, under a no loss limitation, in no

case can the taxpayer use as its per unit

combined taxable income for a component product or an end-product form an

amount that exceeds the per unit

combined taxable income of the integrated product that includes the component product or end-product form.

In 1993, Congress adopted limitations on the amount of the section 936

credit; the taxpayer may be subject to

an activity based limitation or may

elect a percentage limitation. The election for the percentage limitation had to

be made for the first taxable year

beginning after December 31, 1993.

Taxpayers commented that the proposed regulations created uncertainty

with respect to the consequences of

making the percentage limitation election and, therefore, the period for

making the election should be extended

until after the regulations are finalized.

This comment is adopted. Taxpayers

that have not elected the percentage

limitation under section 936(a)(1) for

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the first taxable year beginning after

December 31, 1993, may so elect if the

taxpayer has elected the profit split

method and the computation of combined taxable income is affected by

§1.936–6(b)(1) Q&A 12.

With respect to the proposed effective date, taxpayers commented that the

regulations should not be applied retroactively. One of the justifications for

the proposed rule was that it would

simplify the computation of combined

taxable income and applying the regulation retroactively would not simplify

the computation because it would require filing amended returns. This

comment is adopted in part. The

regulation is effective for taxable years

ending 30 days after May 10, 1996. If

however, the election under paragraph

(v) of A. 12 of §1.936–6(b)(1) is made,

this election must be made for the

taxpayer’s first taxable year beginning

after December 31, 1993, and if not

made effective for that year, the

election cannot be made for any later

taxable year.

The last sentence of paragraph (vi)

of A. 13 of §1.936–6(b)(1) in the

proposed regulations provided that, for

purposes of determining the estimated

tax liability of an affiliate of the

possessions corporation with respect to

income allocated to it from the possessions corporation, the income would be

deemed received on the last day of the

taxable year of each such affiliate in

which or with which the taxable year

of the possessions corporation ended.

This rule is limited to taxable years

beginning prior to January 1, 1995. For

taxable years beginning after December

31, 1994, quarterly estimated tax payments will be required as provided

under section 711 of the Uruguay

Round Agreements, Public Law 103–

465 (1994), page 230, and any administrative guidance issued by the IRS

thereunder. See Rev. Proc. 95–23

(1995–1 C.B. 693).

Accordingly, the proposed regulations are finalized as proposed except

with respect to the changes discussed

above and the necessary conforming

changes.

Special Analyses

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 has also been

determined that this regulation does not

have a significant impact on a substantial number of small entities. Thus, the

Regulatory Flexibility Act (5 U.S.C.

chapter 6) does not apply to these

regulations, and therefore, a Regulatory

Flexibility Analysis is not required.

Pursuant to section 7805(f) of the

Internal Revenue Code, the notice of

proposed rulemaking preceding these

regulations was submitted to the Small

Business Administration for comment

on its impact on small business.

Drafting Information

The principal authors of these regulations are Jacob Feldman and Mary

Gillmarten of the Office of Associate

Chief Counsel (International), IRS.

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. In §1.936–6, paragraph (b)(1)

is amended by:

1. Revising Q. 10.

2. Amending A. 10 by:

a. Redesignating the text of A. 10 as

paragraph A. 10(i).

b. Removing the last two sentences of

newly designated A. 10(i).

c. Adding paragraphs A. 10(ii) through

(v).

3. Revising the first sentence of A. 11.

4. Revising Q&A. 12.

5. Revising A. 13.

The revisions and addition read as

follows:

§1.936–6 Intangible property income

when an election out is made; cost

sharing and profit split options;

covered intangibles.

(b) * * *

(1) * * *

Q. 10: If the possessions corporation

is entitled to use the profit split method

in the situation described in Q. 9

(leasing units of the possession product

or use of such units in the taxpayer’s

own trade or business), how should it

compute combined taxable income with

respect to such units?

A. 10: (i) * * *

(ii) If the possession product is a

component product or an end-product

form, the combined taxable income

with respect to the possession product

shall be determined under Q&A. 12 of

this paragraph (b)(1).

(iii) For purposes of determining the

basis of a component product or an

end-product form, the deemed sales

price of such product must be determined. The deemed sales price of the

component product shall be determined

by multiplying the deemed sales price

of the integrated product that includes

the component product by a ratio, the

numerator of which is the production

costs of the component product and the

denominator of which is the production

costs of the integrated product that

includes the component product. The

deemed sales price of an end-product

form shall be determined by multiplying the deemed sales price of the

integrated product that includes the

end-product form by a ratio, the

numerator of which is the production

costs of the end-product form and the

denominator of which is the production

costs of the integrated product that

includes the end-product form. For the

definition of production costs, see

Q&A. 12 of this paragraph (b)(1).

(iv)(A) If combined taxable income

is determined under paragraph (v) of A.

12 of this paragraph (b)(1), in the case

of a component product, the deemed

sales price shall be determined by

using the actual sales price of that

product when sold as an integrated

product (as adjusted under the rules of

the fourth sentence of §1.482–3(b)(2)(ii)(A)).

(B) If combined taxable income is

determined under paragraph (v) of A.

12 of this paragraph (b)(1), in the case

of an end-product form, the deemed

sales price shall be determined by

subtracting from the deemed sales price

of the integrated product that includes

the end-product form (e.g., the leased

property) the actual sales price of the

excluded component when sold as an

integrated product to an unrelated

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person (as adjusted under the rules of

the fourth sentence of §1.482–3(b)(2)(ii)(A)).

(v) The full amount of income received under the lease shall be treated

as income of (and be taxed to) the U.S.

affiliate and not the possessions corporation.

A. 11: The U.S. affiliate shall be

treated, for purposes of computing its

basis in such units, as if it had

repurchased such units immediately

following the deemed sale and at the

deemed sales price as provided in

Q&A. 10 of this paragraph (b)(1). * * *

Q. 12: If the possession product is a

component product or an end-product

form, how is the combined taxable

income for such product to be

determined?

A. 12: (i) Except as provided in

paragraph (v) of this A. 12, combined

taxable income for a component product or an end-product form is computed

under the production cost ratio (PCR)

method.

(ii) Under the PCR method, the

combined taxable income for a component product will be the same proportion

of the combined taxable income for the

integrated product that includes the

component product that the production

costs attributable to the component

product bear to the total production

costs (including costs incurred by the

U.S. affiliates) for the integrated product

that includes the component product.

Production costs will be the sum of the

direct and indirect production costs as

defined under §1.936–5(b)(4) except

that the costs will not include any costs

of materials. If the possession product is

a component product that is transformed

into an integrated product in whole or in

part by a contract manufacturer outside

of the possession, within the meaning of

§1.936–5(c), the denominator of the

PCR shall be computed by including the

same amount paid to the contract

manufacturer, less the costs of materials

of the contract manufacturer, as is taken

into account for purposes of the significant business presence test under

§1.936–5(c) Q&A. 5.

(iii) Under the PCR method the

combined taxable income for an endproduct form will be the same proportion of the combined taxable income

for the integrated product that includes

the end-product form that the production costs attributable to the end-

product form bear to the total production costs (including costs incurred by

the U.S. affiliates) for the integrated

product that includes the end-product

form. Production costs will be the sum

of the direct and indirect production

costs as defined under §1.936–5(b)(4)

except that the costs will not include

any costs of materials. If the possession

product is an end- product form and an

excluded component is contract manufactured outside of the possession,

within the meaning of §1.936–5(c), the

denominator shall be computed by

including the same amount paid to the

contract manufacturer, less cost of

materials of the contract manufacturer,

as is also taken into account for purposes of the significant business presence test under §1.936–5(c) Q&A. 5.

(iv) This paragraph (iv) of A. 12

illustrates the computation of combined

taxable income for a component product or end-product form under the PCR

method. S, a possessions corporation, is

engaged in the manufacture of microprocessors. S obtains a component from

a U.S. affiliate, O. S sells its production to another U.S. affiliate, P, which

incorporates the microprocessors into

central processing units (CPUs). P

transfers the CPUs to a U.S. affiliate,

Q, which incorporates the CPUs into

computers for sale to unrelated persons.

S chooses to define the possession

product as the CPUs. The combined

taxable income for the sale of the

possession product on the basis of the

given production, sales, and cost data is

computed as follows:

Production costs (excluding costs of materials):

1. O’s costs for the component . . . .

2. S’s costs for the microprocessors

3. P’s costs for the CPU’s (the

possession product) . . . . . . . . . . . . .

4. Q’s costs for the computers . . . . .

5. Total production costs for the

computer (Add lines 1 through 4)

6. Combined production costs for the

CPU (the possession product) (Add

lines 1 through 3) . . . . . . . . . . . . . .

7. Ratio of production costs for the

CPUs (the possession product) to

the production costs for the computer . . . . . . . . . . . . . . . . . . . . . . . . .

100

500

200

400

1,200

800

0.667

Determination of combined taxable income for

computers:

Sales:

8. Total possession sales of computers

to unrelated customers and foreign

affiliates . . . . . . . . . . . . . . . . . . . . . .

7,500

Total costs of O, S, P, and Q incurred in production of a computer:

9. Production costs (enter from line

5) . . . . . . . . . . . . . . . . . . . . . . . . . . . .

1,200

10. Material costs . . . . . . . . . . . . . . . .

11. Total costs (line 9 plus line 10)

12. Combined gross income from sale

of computers (line 8 minus line

11) . . . . . . . . . . . . . . . . . . . . . . . . . .

100

1,300

6,200

Expenses of the affiliated group (other than

foreign affiliates) allocable and apportionable

to the computers or any component thereof

under the rules of §§1.861–8 through 1.861–

14T and 1.936–6 (b)(1), Q&A. 1:

13. Expenses (other than research expenses) . . . . . . . . . . . . . . . . . . . . . .

980

Research expenses of the affiliated group

allocable and apportionable to the computers:

14. Total sales in the 3-digit SIC

Code . . . . . . . . . . . . . . . . . . . . . . . . 12,500

15. Possession sales of the computers

(enter from line 8) . . . . . . . . . . . . 7,500

16. Cost sharing fraction (divide line

15 by line 14) . . . . . . . . . . . . . . . .

0.6

17. Research expenses incurred by the

affiliated group in 3-digit SIC

Code multiplied by 120 percent

700

18. Cost sharing amount (multiply

line 16 by line 17) . . . . . . . . . . . .

420

19. Research of the affiliated group

(other than foreign affiliates) allocable and apportionable under

§§1.861–17 and 1.861–14T(e)(2)

to the computers . . . . . . . . . . . . . .

300

20. Enter the greater of line 18 or line

19 . . . . . . . . . . . . . . . . . . . . . . . . . . .

420

Computation of combined taxable income of the

computer and the CPU:

21. Combined taxable income attributable to the computer (line 12

minus line 13 and line 20) . . . . .

22. Combined taxable income attributable to CPUs (multiply line 21

by line 7) (production cost ratio)

23. Share of combined taxable income

apportioned to S (50 percent of

line 22) . . . . . . . . . . . . . . . . . . . . . .

4,800

3,200

1,600

Share of combined taxable income apportioned

to U.S. affiliate(s) of S:

24. Adjustments for research expenses

(line 18 minus line 19 multiplied

by line 7) . . . . . . . . . . . . . . . . . . . .

25. Adjusted combined taxable income (line 22 plus line 24) . . . .

26. Share of combined taxable income

apportioned to affiliates of S (line

25 minus line 23) . . . . . . . . . . . . .

3,280

1,680

(v) (A) If a possession product is

sold by a taxpayer or its affiliate to

unrelated persons in covered sales both

as an integrated product and as a

component product and the conditions

of paragraph (v)(C) of this A. 12 are

satisfied, the taxpayer may elect to

determine the combined taxable income

derived from covered sales of the

component product under this paragraph (v). In that case, the combined

taxable income derived from covered

sales of the component product shall be

determined by using the same per unit

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combined taxable income as is derived

from covered sales of the product as an

integrated product, but subject to the

limitation of paragraph (v)(D) of this

A. 12.

(B) In the case of a possession product that is an end-product form, if all

of the excluded components are also

separately sold by the taxpayer or its

affiliate to unrelated persons in uncontrolled transactions and the conditions

of paragraph (v)(C) of this A. 12 are

satisfied, the taxpayer may elect to

determine the combined taxable income

of such end-product form under this

paragraph (v). In that case, the combined taxable income derived from

covered sales of the end-product form

shall be determined by reducing the per

unit combined taxable income from the

integrated product that includes the

end-product form by the per unit

combined taxable income for excluded

components determined under the rules

of this paragraph (v), but subject to the

limitation of paragraph (v)(D) of this

A. 12. For this purpose, combined

taxable income of the excluded components must be determined under section

936 as if the excluded components

were possession products.

the sales price of the possession

product sold in covered sales as an

integrated product (i.e., in uncontrolled

transactions) would be the most direct

and reliable measure of an arm’s length

price within the meaning of the fourth

sentence of §1.482–3(b)(2)(ii)(A) for

the component product. For purposes of

applying the fourth sentence of §1.482–

3(b)(2)(ii)(A), the sale of the integrated

product that includes the component

product is treated as being immediately

preceded by a sale of the component

(i.e. without further processing) in a

controlled transaction. In the case of

end-product forms, this paragraph (v)

applies only if the sales price of

excluded components separately sold in

uncontrolled transactions would be the

most direct and reliable measure of an

arm’s length price within the meaning

of the fourth sentence of §1.482–

3(b)(2)(ii)(A) for all excluded components of an integrated product that

includes an end-product form. For

purposes of applying the fourth sentence of §1.482–3(b)(2)(ii)(A), the sale

of the integrated product that includes

excluded components is treated as

being immediately preceded by a sale

of the excluded components (i.e., with-

out further processing) in a controlled

transaction. Under the fourth sentence

of §1.482–3(b)(2)(ii)(A), the uncontrolled transactions referred to in this

paragraph (v)(C) must have no differences with the controlled transactions that would affect price, or have

only minor differences that have a

definite and reasonably ascertainable

effect on price and for which appropriate adjustments are made (resulting in

appropriate adjustments to the computation of combined taxable income).

If such adjustments cannot be made, or

if there are more than minor differences between the controlled and

uncontrolled transactions, the method

provided by this paragraph (v)(C)

cannot be used. Thus, for example,

these uncontrolled transactions must

involve substantially identical property

in the same or a substantially identical

geographic market, and must be substantially identical to the controlled

transaction in terms of their volumes,

contractual terms, and market level.

See §1.482–3(b)(2)(ii)(B).

(D) In no case can the per unit

combined taxable inc ome as determined under paragraph (v)(A) or (B) of

this A. 12 be greater than the per unit

combined taxable income of the integrated product that includes the component product or end-product form.

(E) The provisions of this paragraph

(v) are illustrated by the following

example.

Taxpayer manufactures product A in a U.S.

possession. Some portion of product A is sold to

unrelated persons as an integrated product and

the remainder is sold to related persons for

transformation into product AB. The combined

taxable income of integrated product A is $400

per unit and the combined taxable income of

product AB is $300 per unit. The production cost

ratio with respect to product A when sold as a

component of product AB, is 2/3. Unless the

taxpayer elects and satisfies the conditions of

this paragraph (v), the combined taxable income

with respect to A will be $200 per unit

(combined taxable income for AB of $300 3 the

production cost ratio of 2/3). If, however, the

comparability standards of paragraph (v)(C) of

this A. 12 are met, the taxpayer may elect to

determine combined taxable income of product A

when sold as a component of product AB using

the same per unit combined taxable income as

product A when sold as an integrated product.

However, the per unit combined taxable income

from sales of product A as a component product

may not exceed the per unit combined taxable

income on the sale of product AB. Therefore, the

combined taxable income of component product

A may not exceed $300 per unit.

(vi) Taxpayers that have not elected

the percentage limitation under section

936(a)(1) for the first taxable year

beginning after December 31, 1993,

may do so if the taxpayer has elected

the profit split method and computation

of combined taxable income is affected

by Q&A.12 of this paragraph (b)(1).

(vii) The rules of Q&A. 12 of this

paragraph (b)(1) apply for taxable years

ending 30 days after May 10, 1996. If,

however, the election under paragraph

(v) of A. 12 of §1.936–6(b)(1) is made,

this election must be made for the taxpayer’s first taxable year beginning

after December 31, 1993, and if not

made effective for that year, the

election cannot be made for any later

taxable year. A successor corporation

that makes the same or substantially

similar products as its predecessor

corporation cannot make an election

under paragraph (v) of A.12 of §1.936–

6(b)(1) unless the election was made

by its predecessor corporation for its

first taxable year beginning after December 31, 1993.

A. 13: (i) The income shall be allocated to affiliates in the following

order, but no allocations will be made

to affiliates described in a later category if there are any affiliates in a

prior category—

(A) First, to U.S. affiliates (other

than tax exempt affiliates) within the

group (as determined under section

482) that derive income with respect to

the product produced in whole or in

part in the possession;

(B) Second, to U.S. affiliates (other

than tax exempt affiliates) that derive

income from the active conduct of a

trade or business in the same product

area as the possession product;

(other than tax-exempt affiliates);

(D) Fourth, to foreign affiliates that

derive income from the active conduct

of a U.S. trade or business in the same

product area as the possession product

(or, if the foreign members are resident

in a country with which the U.S. has an

income tax convention, then to those

foreign members that have a permanent

establishment in the United States that

derives income in the same product

area as the possession product); and

(E) Fifth, to all other affiliates.

(ii) The allocations made under paragraph (i)(A) of this A. 13 shall be made

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on the basis of the relative gross

income derived by each such affiliate

with respect to the product produced in

whole or in part in the possession. For

this purpose, gross income must be

determined consistently for each affiliate and consistently from year to year.

(iii) The allocations made under

paragraphs (i)(B) and (i)(D) of this A.

13 shall be made on the basis of the

relative gross income derived by each

such affiliate from the active conduct

of the trade or business in the same

product area.

(iv) The allocations made under

paragraphs (i)(C) and (i)(E) of this A.

13 shall be made on the basis of the

relative total gross income of each such

affiliate before allocating income under

this section.

(v) Income allocated to affiliates

shall be treated as U.S. source and

section 863(b) does not apply for this

purpose.

(vi) For purposes of determining an

affiliate’s estimated tax liability for

income thus allocated for taxable years

beginning prior to January 1, 1995, the

income shall be deemed to be received

on the last day of the taxable year of

each such affiliate in which or with

which the taxable year of the possessions corporation ends. For taxable

years beginning after December 31,

1994, quarterly estimated tax payments

will be required as provided under

section 711 of the Uruguay Round

Agreements, Public Law 103–465

(1994), page 230, and any administrative guidance issued by the Internal

Revenue Service thereunder.

Margaret Milner Richardson,

Commissioner of Internal Revenue.

Approved April 4, 1996.

Leslie Samuels,

Assistant Secretary of the Treasury.

(Filed by the Office of the Federal Register on

May 9, 1996, 8:45 a.m., and published in the

issue of the Federal Register for May 10,

1996, 61 F.R. 21366)

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Part IV. Items of General Interest

Form 5300 series

Announcement 96–53

The application forms used to request determination letters for qualified

employee benefit plans have been

revised. In addition, applicants must

file a new schedule, Schedule Q (Form

5300) Nondiscrimination Requirements,

as an attachment to Forms 5300, 5303,

5307 and 5310. Schedule Q replaces

the attachment previously required by

Rev. Proc. 93–39, 1993–2 C.B. 513.

The 5300 series applications were

revised primarily to eliminate questions

that were duplicated on the attachment

required by Rev. Proc. 93–39 (now

Schedule Q). Further, Form 5300 may

now only be used to request a determination on the entire plan. Form 6406

may be used to obtain a determination

on the effect of a plan amendment

upon a previously issued determination

letter.

The revised application forms may

be obtained from IRS distribution

centers by calling 1-800-TAX-FORM.

Application forms having revision dates

before January 1, 1996, may be used

until October 1, 1996. The applicable

revision dates follow:

Form

1. Form 5300 (Application

for Determination for

Employee Benefit Plan)

2. Form 5303 (Application

for Determination for

Collectively Bargained

Plan)

3. Form 5307 (Application

for Determination for

Adopters of Master or

Prototype, Regional

Prototype, or Volume

Submitter Plans)

4. Form 5310 (Application

for Determination for

Terminating Plans)

5. Form 6406 (Short Form

Application for Minor

Amendment of Employee

Benefit Plan)

Revision

Date

1/96

3/96

1/96

Persons having approval to computer

generate the above forms need not

request reapproval if:

1. The OCR data sheet is modified to

reflect the new revision date in the

1996 – 26 I.R.B.

second field, and no other modifications are made.

2. The application forms are word-forword identical to the revised IRS form.

However, references regarding the need

to file a second copy of page 1 in red

ink may be deleted. Schedule Q must

include the pointers next to certain

entries in the right hand column of the

schedule.

Persons using IRS software to generate Form 5307 may continue to use that

program until further notice.

Income Taxes; Information and

Backup Withholding Hearing

Announcement 96–54

AGENCY: Internal Revenue Service

(IRS), Treasury.

ACTION: Notice of public hearing on

proposed rulemaking.

SUMMARY: This document provides

notice of a public hearing on proposed

regulations relating, in part, to information reporting and backup withholding

under the Interest and Dividend Tax

Compliance Act of 1983, as well as,

incorporate changes to the applicable

tax law made by the Interest and

Dividend Tax Compliance Act of 1983,

the Tax Reform Act of 1984, and the

Tax Reform Act of 1986.

DATES: The public hearing will be

held on Wednesday, July 24, 1996,

beginning at 10:00 a.m. Requests to

speak and outlines of oral comments

must be received by Wednesday, July

3, 1996.

ADDRESSES: The public hearing will

be held in the Auditorium of the

Internal Revenue Building, 1111 Constitution Avenue, N.W., Washington,

D.C. 20044. Requests to speak and

outlines of oral comments should be

mailed to the Internal Revenue Service,

P.O. Box 7604, Ben Franklin Station,

Attn: CC:DOM:CORP:R [IL–52–86],

Room 5228, Washington, D.C. 20044.

SUPPLEMENTARY INFORMATION:

The subject of the public hearing is

proposed amendments to the Income

Tax Regulations under sections 3406,

6041 through 6049, and 6050A of the

Internal Revenue Code. The proposed

regulations [IL–52–86, 1988–1 C.B.

892] appeared in the Federal Register

on Monday, February 29, 1988 (53 FR

5991).

The rules of §601.601(a)(3) of the

‘‘Statement of Procedural Rules’’ (26

CFR Part 601) shall apply with respect

to the public hearing. Persons who

have submitted written comments

within the time prescribed in the notice

of proposed rulemaking and who also

desire to present oral comments at the

hearing on the proposed regulations

should submit not later than Wednesday, July 3, 1996, an outline of the oral

comments/testimony to be presented at

the hearing and the time they wish to

devote to each subject.

Each speaker (or group of speakers

representing a single entity) will be

limited to 10 minutes for an oral

presentation exclusive of the time

consumed by the questions from the

panel for the government and answer

thereto.

Because of controlled access restrictions, attenders cannot be admitted

beyond the lobby of the Internal

Revenue Building until 9:45 a.m.

An agenda showing the scheduling

of the speakers will be made after

outlines are received from the persons

testifying. Copies of the agenda will be

available free of charge at the hearing.

Cynthia E. Grigsby,

Chief, Regulations Unit,

Assistant Chief Counsel (Corporate).

(Filed by the Office of the Federal Register on

May 7, 1996, 8:45 a.m., and published in the

issue of the Federal Register for May 8, 1996,

61 F.R. 20767)

Foundations Status of Certain

Organizations

Announcement 96–55

FOR FURTHER INFORMATION

CONTACT: Evangelista Lee of the

Regulations Unit, Assistant Chief

Counsel (Corporate), (202) 622-7190

(not a toll-free number).

The following organizations have

failed to establish or have been unable

to maintain their status as public

charities or as operating foundations.

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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:

Accessible Housing Association Inc.,

Philadelphia, PA

A-CLUTCH Inc., Tuckerman, AR

African Culture Center, Inc.,

Montgomery, AL

Arts Council of Central Virginia Inc.,

Lynchburg, VA

Assoc. of Government Accountants,

Woodbridge, VA

Bala Cynwyo Symphony Orchestra

Association, Bala Cynwyo, PA

Betterway Foundation, Elyria, OH

Brothers Keeper, Inc., Gary, IN

Care and Kindness Mission Inc.,

Arlington, VA

CCA Alumni Association, Limerick,

Central Bucks East Band Parents

Assoc., Buckingham, PA

Central Upper Peninsula Food Bank,

Inc., Ishpeming, MI

C G Jung Foundation of the

Delaware Valley, Philadelphia, PA

Civil War Round Table of Cape May

County Inc., Wildwood, NJ

Cleveland House Inc., N Brunswick,

Community Solidarity of Hagerstown

Inc., Hagerstown, MD

Cranbury Association for Children

Inc., Cranbury, NJ

Crozer Chester Medical Center

Arboretum, Upland, PA

Daytop Village of Florida, Inc., New

York, NY

Discoveryville Childrens Museum,

Herndon, VA

Dreamquests Inc., St Croix, VI

E C O P Inc., Philadelphia, PA

Elderly Care Inc., Baltimore, MD

Englewood Partners in Public

Education Inc., Englewood, NJ

Essex Properties Urban Renewal

Associates Inc., S Orange, NJ

Foreman Enterprises Inc., Ridgely,

Foundation of the Williamsport

Lycoming Chamber, Williamsport,

Frederick County Revolving Loan

Fund Inc., Frederick, MD

Habersham County Humane Society,

Inc., Clarksville, GA

Herbert L. Brooks Housing

Development Fund Company Inc.,

Bronx, NY

Howard Prince and the Music

Coalition, New York, NY

Kiddie Keepers of Louisville Inc.,

Louisville, KY

Kids-At-Risk, Inc., Louisville, KY

Mal Whitfield Foundation,

Mitchellville, MD

National Alliance of African

American Health Care Professions,

Washington, DC

National Family Center Inc., Los

Angeles, CA

Netanya Foundation, Inc., River

Edge, NJ

107-109 Avenue D Housing

Development Fund Corporation,

New York, NY

Partners in International Development

Inc., Washington, DC

Penn-North Plaza Inc., Baltimore,

Philip N. Johnson Scholarship,

Higganum, CT

Plum Emergency Medical Services

Inc., Pittsburgh, PA

Pregnancy Care Center of Madison

County Inc., London, OH

Public Recycling Officials of

Pennsylvania, Kittanning, PA

Puerto Rico Community Network for

Clinical Research on AIDS, San

Juan, PR

PWA Settlement Project of Delaware

Inc., Rickland, DE

Red Clay Music Boosters

Association, Newark, DE

Roanoke Educational Assistance

Foundation, Roanoke, VA

Rotary Club of Wilmington

Educational Foundation,

Wilmington, DE

Scan of Northern Virginia Inc.,

Alexandria, VA

Secaucus Lions Charities Inc.,

Secaucus, NJ

Sergents Way Inc., Frederick, MD

Sims Humanities Arts and Sciences

Charity, Inc., Melville, NY

Single Black Mothers Education

Fund, Washington, DC

Society for Handicapped Children

Inc., Silver Spring, MD

Society for Interreligious Intercultural

Dialogue, Wallingford, PA

South Central Pennsylvania Housing

Development Foundation,

Harrisburg, PA

Spanish Peaks Regional Institute for

Mental Health, Inc., Pueblo, CO

Stephen C Tausz Memorial

Foundation, Greenwich, CT

Sumter Schools Enhancement

Foundation, Inc., Bushnell, FL

Tennessee Association of Suicide

Prevention, Nashville, TN

Tennessee Committee of the National

Museum of Women in the Arts,

Knoxville, TN

Tennessee Pharmacists Research and

Education Foundation, Nashville,

Tennessee Soccer Development

Association Inc., Knoxville, TN

Tennessee Youth Chorale Inc.,

Pulaski, TN

Thin White Line Relapse and

Restoration Center Inc., Decatur,

Together Forever Ministries Inc.,

Berryville, AR

Town Hall Television of North

Carolina Inc., Raleigh, NC

Triangle Foundation, Little Rock, AR

Triangle Orthopedic Study Group,

Durham, NC

Troup County Community and

Agricultural Center Inc., Lagrange,

Troy Literacy Council, Inc., Troy,

Turkish American Ophthalmic Society

Inc., Atlanta, GA

Uncle Dave Macon Days,

Murphreesboro, TN

UNICOI County Heritage Players,

Erwin, TN

UNICOI County Historical Society,

Erwin, TN

United Way of Cocke County,

Newport, TN

Universal Humanities Inc., Atlanta,

University John Hope Community

Coalition Inc., Atlanta, GA

1996 – 26 I.R.B.

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Vanishing Black Male Inc., The, Norcross, GA

Visions for Sumter Seeing Through

Young Eyes Inc., Americus, GA

Volunteer Center of Lincoln County,

Taft, TN

Wallace Ministries International Inc.,

Riverdale, GA

Wee Care Express Inc., The, Atlanta,

WESLEY Housing Corporation of Central Arkansas Inc., Batesville, AR

West Polk County Volunteer Support

Committee Inc., Benton, TN

1996 – 26 I.R.B.

Western North Carolina Recovery

Center Inc., Asheville, NC

Whitfield Improvement Committee,

York, AL

World Christian Training Center,

Charlotte, NC

World Council of Young People Inc.,

Perry, GA

Worlds of Wonder Inc., Nashville, TN

If an organization listed above submits information that warrants the

renewal of its classification as a public

charity or as a private operating foun-

dation, 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.

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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

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 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 attor-

ney, 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

Behrens, William

Warter, J. Christopher

Leckie, Jerry B.

Retzlaff, Gene

Cahill, Donal

Guidera, George C.

Kirk, Gregg T.

Brock, Guy Charles

Mathews, Thomas

Farnsworth Jr., Harold

King, John C.

Kenosha, WI

South Bend, IN

Macon, GA

Hortonville, WI

Stratford, CT

Straford, CT

Dallas, TX

Spokane, WA

Cincinnati, OH

Starke, FL

Wichita, KS

Enrolled Agent

Attorney

Enrolled Agent

Attorney

CPA

Attorney

March 6, 1996 to May 5, 1996

Indefinite from March 8, 1996

March 9, 1996 to March 8, 1999

March 18, 1996 to July 17, 1996

April 4, 1996 to April 3, 1997

April 11, 1996 to October 10, 1996

Indefinite from May 1, 1996

May 1, 1996 to August 31, 1996

May 1, 1996 to April 30, 1998

May 1, 1996 to August 31, 1996

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 actuaries 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:

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Name

Address

Designation

Date of Suspension

Noske, Joan M.

Wahl, Roger W.

Stojanov, Dragan

Gay, Randall D.

Sheffey, Ralph

Doyle, Robert

Singer, Michael G.

Mohme, Robert H.

Vogelei, George Mac

Gaskins, Oscar N.

Gawel, Michael S.

Richmond, MN

Martinez, GA

Detroit, MI

Honolulu, HI

LaCrosse, WI

Sacramento, CA

Minnetonka, MN

St. Louis, MO

Novato, CA

Cherry Hill, NJ

Niagara Falls, NY

CPA

Attorney

CPA

Attorney

CPA

Attorney

Indefinite from March 1, 1996

Indefinite from March 13, 1996

Indefinite from March 19, 1996

Indefinite from March 20, 1996

Indefinite from March 26, 1996

Indefinite from March 29, 1996

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Definition of Terms

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

rulings use the following defined terms

to describe the effect:

Amplified describes a situation where

no change is being made in a prior

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

variation of the fact situation set forth

therein. Thus, if an earlier ruling held

that a principle applied to A, and the

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

is amplified. (Compare with modified,

below).

Clarified is used in those instances

where the language in a prior ruling is

being made clear because the language

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

a prior ruling is being changed.

Distinguished describes a situation

where a ruling mentions a previously

published ruling and points out an

essential difference between them.

Modified is used where the substance

of a previously published position is

being changed. Thus, if a prior ruling

held that a principle applied to A but

not to B, and the new ruling holds that

it applies to both A and B, the prior

ruling is modified because it corrects a

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

Obsoleted describes a previously

published ruling that is not considered

determinative with respect to future

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

previously published rulings that are

obsoleted because of changes in law or

regulations. A ruling may also be

obsoleted because the substance has

been included in regulations subsequently adopted.

Revoked describes situations where

the position in the previously published

ruling is not correct and the correct

position is being stated in the new

ruling.

Superseded describes a situation

where the new ruling does nothing

more than restate the substance and

situation of a previously published

ruling (or rulings). Thus, the term is

used to republish under the 1986 Code

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

desired to republish in a single ruling a

series of situations, names, etc., that

were previously published over a

period of time in separate rulings.

If the new ruling does more than

restate the substance of a prior ruling, a

combination of terms is used. For

example, modified and superseded describes a situation where the substance

of a previously published ruling is

being changed in part and is continued

without change in part and it is desired

to restate the valid portion of the

previously published ruling in a new

ruling that is self contained. In this

case the previously published ruling is

first modified and then, as modified, is

superseded.

Supplemented is used in situations in

which a list, such as a list of the names

of countries, is published in a ruling

and that list is expanded by adding

further names in subsequent rulings.

After the original ruling has been

supplemented several times, a new

ruling may be published that includes

the list in the original ruling and the

additions, and supersedes all prior

rulings in the series.

Suspended is used in rare situations

to show that the previous published

rulings will not be applied pending

some future action such as the issuance

of new or amended regulations, the

outcome of cases in litigation, or the

outcome of a Service study.

Abbreviations

E.O.—Executive Order.

ER—Employer.

ERISA—Employee Retirement Income Security Act.

EX—Executor.

F—Fiduciary.

FC—Foreign Country.

FICA—Federal Insurance Contribution Act.

FISC—Foreign International Sales Company.

FPH—Foreign Personal Holding Company.

F.R.—Federal Register.

FUTA—Federal Unemployment Tax Act.

FX—Foreign Corporation.

G.C.M.—Chief Counsel’s Memorandum.

GE—Grantee.

GP—General Partner.

GR—Grantor

IC—Insurance Company.

I.R.B.—Internal Revenue Bulletin.

LE—Lessee.

LP—Limited Partner.

LR—Lessor.

M—Minor.

Nonacq.—Nonacquiescence.

O—Organization.

P—Parent Corporation.

PHC—Personal Holding Company.

PO—Possession of the U.S.

PR—Partner.

PRS—Partnership.

PTE—Prohibited Transaction Exemption.

Pub. L.—Public Law.

REIT—Real Estate Investment Trust.

Rev. Proc.—Revenue Procedure.

Rev. Rul.—Revenue Ruling.

S—Subsidiary.

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

Stat.—Statutes at Large.

T—Target Corporation.

T.C.—Tax Court.

T.D.—Treasury Decision.

TFE—Transferee.

TFR—Transferor.

T.I.R.—Technical Information Release.

TP—Taxpayer.

TR—Trust.

TT—Trustee.

U.S.C.—United States Code.

X—Corporation.

Y—Corporation.

Z—Corporation.

The following abbreviations in current use and

formerly used will appear in material published

in the Bulletin.

A—Individual.

Acq.—Acquiescence.

B—Individual.

BE—Beneficiary.

BK—Bank.

B.T.A.—Board of Tax Appeals.

C.—Individual.

C.B.—Cumulative Bulletin.

CFR—Code of Federal Regulations.

CI—City.

COOP—Cooperative.

Ct.D.—Court Decision.

CY—County.

D—Decedent.

DC—Dummy Corporation.

DE—Donee.

Del. Order—Delegation Order.

DISC—Domestic International Sales Corporation.

DR—Donor.

E—Estate.

EE—Employee.

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Numerical Finding List1

Bulletins 1996–1 through 1996–22

Announcements:

96–1, 1996–2 I.R.B. 57

96–2, 1996–2 I.R.B. 57

96–3, 1996–2 I.R.B. 57

96–4, 1996–3 I.R.B. 50

96–5, 1996–4 I.R.B. 99

96–6, 1996–5 I.R.B. 43

96–7, 1996–5 I.R.B. 44

96–8, 1996–7 I.R.B. 56

96–9, 1996–8 I.R.B. 30

96–10, 1996–8 I.R.B. 30

96–11, 1996–9 I.R.B. 11

96–12, 1996–11 I.R.B. 30

96–13, 1996–12 I.R.B. 33

96–14, 1996–12 I.R.B. 35

96–15, 1996–11 I.R.B. 9

96–16, 1996–13 I.R.B. 22

96–17, 1996–13 I.R.B. 22

96–18, 1996–15 I.R.B. 15

96–19, 1996–15 I.R.B. 15

96–20, 1996–15 I.R.B. 15

96–21, 1996–15 I.R.B. 15

96–22, 1996–15 I.R.B. 16

96–23, 1996–18 I.R.B. 7

96–24, 1996–16 I.R.B. 35

96–25, 1996–17 I.R.B. 13

96–26, 1996–17 I.R.B. 13

96–27, 1996–17 I.R.B. 16

96–28, 1996–17 I.R.B. 16

96–29, 1996–17 I.R.B. 17

96–30, 1996–17 I.R.B. 17

96–31, 1996–17 I.R.B. 18

96–32, 1996–17 I.R.B. 18

96–33, 1996–18 I.R.B. 12

96–34, 1996–18 I.R.B. 13

96–35, 1996–18 I.R.B. 13

96–36, 1996–18 I.R.B. 13

96–37, 1996–18 I.R.B. 14

96–38, 1996–19 I.R.B. 84

96–39, 1996–19 I.R.B. 84

96–40, 1996–19 I.R.B. 85

96–41, 1996–20 I.R.B. 18

96–42, 1996–20 I.R.B. 18

96–43, 1996–20 I.R.B. 18

96–44, 1996–21 I.R.B. 10

96–45, 1996–21 I.R.B. 10

96–46, 1996–21 I.R.B. 10

96–47, 1996–22 I.R.B. 10

96–48, 1996–22 I.R.B. 10

96–49, 1996–22 I.R.B. 10

96–50, 1996–22 I.R.B. 11

96–51, 1996–22 I.R.B. 11

96–52, 1996–22 I.R.B. 12

Delegations Orders:

232 (Rev. 2), 1996–7 I.R.B. 49

Delegations Orders—Continued

Proposed Regulations—Continued

236 (Rev. 2), 1996–21 I.R.B. 7

239 (Rev. 1), 1996–7 I.R.B. 49

247, 1996–21 I.R.B. 7

PS–4–96, 1996–18 I.R.B. 5

PS–6–95, 1996–16 I.R.B. 27

Revenue Procedures:

Notices:

96–2, 1996–2 I.R.B. 15

96–1, 1996–3 I.R.B. 30

96–4, 1996–4 I.R.B. 69

96–5, 1996–6 I.R.B. 22

96–6, 1996–5 I.R.B. 27

96–7, 1996–6 I.R.B. 22

96–8, 1996–6 I.R.B. 23

96–9, 1996–6 I.R.B. 26

96–10, 1996–7 I.R.B. 47

96–11, 1996–8 I.R.B. 19

96–12, 1996–10 I.R.B. 29

96–13, 1996–10 I.R.B. 29

96–14, 1996–12 I.R.B. 11

96–15, 1996–13 I.R.B. 19

96–16, 1996–13 I.R.B. 20

96–17, 1996–13 I.R.B. 20

96–18, 1996–14 I.R.B. 27

96–19, 1996–14 I.R.B. 28

96–20, 1996–14 I.R.B. 30

96–21, 1996–14 I.R.B. 30

96–22, 1996–14 I.R.B. 30

96–23, 1996–16 I.R.B. 23

96–24, 1996–16 I.R.B. 23

96–25, 1996–17 I.R.B. 11

96–26, 1996–18 I.R.B. 4

96–27, 1996–18 I.R.B. 4

96–28, 1996–19 I.R.B. 7

96–29, 1996–19 I.R.B. 7

96–30, 1996–20 I.R.B. 11

96–31, 1996–22 I.R.B. 7

96–32, 1996–22 I.R.B. 7

96–33, 1996–22 I.R.B. 8

Proposed Regulations:

DL–1–95, 1996–6 I.R.B. 28

EE–20–95, 1996–5 I.R.B. 15

EE–34–95, 1996–3 I.R.B. 49

EE–35–95, 1996–5 I.R.B. 19

EE–53–95, 1996–5 I.R.B. 23

EE–55–95, 1996–12 I.R.B. 12

EE–106–82, 1996–10 I.R.B. 31

EE–142–87, 1996–12 I.R.B. 13

EE–148–81, 1996–11 I.R.B. 29

GL–1–96, 1996–21 I.R.B. 7

IA–3–94, 1996–17 I.R.B. 12

IA–33–95, 1996–4 I.R.B. 99

IA–41–93, 1996–11 I.R.B. 29

INTL–3–95, 1996–6 I.R.B. 29

INTL–9–95, 1996–5 I.R.B. 25

INTL–54–95, 1996–14 I.R.B. 39

INTL–62–90; INTL–32–93;

INTL–52–86; INTL–52–94,

1996–19 I.R.B. 26

PS–2–95, 1996–7 I.R.B. 50

See footnote at the end of list.

96–1, 1996–1 I.R.B. 8

96–2, 1996–1 I.R.B. 60

96–3, 1996–1 I.R.B. 82

96–4, 1996–1 I.R.B. 94

96–5, 1996–1 I.R.B. 129

96–6, 1996–1 I.R.B. 151

96–7, 1996–1 I.R.B. 185

96–8, 1996–1 I.R.B. 187

96–8A, 1996–9 I.R.B. 10

96–9, 1996–2 I.R.B. 15

96–10, 1996–2 I.R.B. 17

96–11, 1996–2 I.R.B. 18

96–12, 1996–3 I.R.B. 30

96–13, 1996–3 I.R.B. 31

96–14, 1996–3 I.R.B. 41

96–15, 1996–3 I.R.B. 41

96–16, 1996–3 I.R.B. 45

96–17, 1996–4 I.R.B. 69

96–18, 1996–4 I.R.B. 73

96–19, 1996–4 I.R.B. 80

96–20, 1996–4 I.R.B. 88

96–21, 1996–4 I.R.B. 96

96–22, 1996–5 I.R.B. 27

96–23, 1996–5 I.R.B. 27

96–24, 1996–5 I.R.B. 28

96–24A, 1996–15 I.R.B. 12

96–25, 1996–8 I.R.B. 19

96–26, 1996–8 I.R.B. 22

96–27, 1996–11 I.R.B. 27

96–28, 1996–14 I.R.B. 31

96–29, 1996–16 I.R.B. 24

96–30, 1996–19 I.R.B. 8

96–31, 1996–20 I.R.B. 11

96–32, 1996–20 I.R.B. 14

96–33, 1996–22 I.R.B. 8

Revenue Rulings:

96–1, 1996–1 I.R.B. 7

96–2, 1996–2 I.R.B. 5

96–3, 1996–2 I.R.B. 14

96–6, 1996–2 I.R.B. 8

96–4, 1996–3 I.R.B. 16

96–5, 1996–3 I.R.B. 29

96–7, 1996–3 I.R.B. 12

96–8, 1996–4 I.R.B. 62

96–9, 1996–4 I.R.B. 5

96–10, 1996–4 I.R.B. 27

96–11, 1996–4 I.R.B. 28

96–12, 1996–9 I.R.B. 4

96–13, 1996–10 I.R.B. 19

96–14, 1996–6 I.R.B. 20

96–15, 1996–11 I.R.B. 9

96–16, 1996–11 I.R.B. 4

96–17, 1996–13 I.R.B. 5

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Numerical Finding List1—Continued

Bulletins 1996–1 through 1996–22

Revenue Rulings—Continued

96–18, 1996–13 I.R.B. 4

96–19, 1996–14 I.R.B. 24

96–20, 1996–15 I.R.B. 5

96–21, 1996–15 I.R.B. 7

96–22, 1996–15 I.R.B. 9

96–23, 1996–15 I.R.B. 11

96–24, 1996–19 I.R.B. 5

96–25, 1996–19 I.R.B. 4

96–26, 1996–21 I.R.B. 9

Treasury Decisions:

8630, 1996–3 I.R.B. 19

8631, 1996–3 I.R.B. 7

8632, 1996–4 I.R.B. 6

8633, 1996–4 I.R.B. 20

8634, 1996–3 I.R.B. 17

8635, 1996–3 I.R.B. 5

8636, 1996–4 I.R.B. 64

8637, 1996–4 I.R.B. 29

8638, 1996–5 I.R.B. 5

8639, 1996–5 I.R.B. 12

8640, 1996–2 I.R.B. 10

8641, 1996–6 I.R.B. 4

8642, 1996–7 I.R.B. 4

8643, 1996–11 I.R.B. 4

8644, 1996–7 I.R.B. 16

8645, 1996–8 I.R.B. 4

8646, 1996–8 I.R.B. 10

8647, 1996–9 I.R.B. 7

8648, 1996–10 I.R.B. 23

8649, 1996–9 I.R.B. 5

8650, 1996–10 I.R.B. 5

8651, 1996–11 I.R.B. 24

8652, 1996–11 I.R.B. 11

8653, 1996–12 I.R.B. 4

8654, 1996–11 I.R.B. 14

8655, 1996–12 I.R.B. 9

8656, 1996–13 I.R.B. 9

8657, 1996–14 I.R.B. 4

8658, 1996–14 I.R.B. 13

8659, 1996–16 I.R.B. 4

8660, 1996–17 I.R.B. 4

8661, 1996–17 I.R.B. 7

8664, 1996–20 I.R.B. 7

8665, 1996–21 I.R.B. 4

8667, 1996–20 I.R.B. 4

8668, 1996–22 I.R.B. 4

1A cumulative list of all Revenue Rulings,

Revenue Procedures, Treasury Decisions, etc.,

published in Internal Revenue Bulletins 1995–

27 through 1995–52 will be found in Internal

Revenue Bulletin 1996–1, dated January 2,

1996.

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Finding List of Current Action on

Previously Published Items1

Revenue Procedures—Continued

96–31, 1996–20 I.R.B. 11

Bulletins 1996–1 through 1996–22

92–85

Modified by

96–1, 1996–1 I.R.B. 8

95–66

Modified by

96–25, 1996–19 I.R.B. 4

*Denotes entry since last publication

Delegation Orders:

232 (Rev. 1)

Superseded by

232 (Rev. 2), 1996–7 I.R.B. 49

236 (Rev. 1)

Superseded by

236 (Rev. 2), 1996–21 I.R.B. 7*

239

Amended by

239 (Rev. 1), 1996–7 I.R.B. 49

93–16

Superseded by

96–11, 1996–2 I.R.B. 18

93–46

Superseded in part by

96–17, 1996–4 I.R.B. 69

Superseded by

96–18, 1996–4 I.R.B. 73

Revenue Procedures:

94–16

Modified by

96–29, 1996–16 I.R.B. 24

65–17

Modified by

96–14, 1996–3 I.R.B. 41

94–18

Superseded in part by

96–17, 1996–4 I.R.B. 69

66–49

Modified by

96–15, 1996–3 I.R.B. 41

Superseded by

96–18, 1996–4 I.R.B. 73

88–32

Obsoleted by

96–15, 1996–3 I.R.B. 41

88–33

Obsoleted by

96–15, 1996–3 I.R.B. 41

89–19

Superseded by

96–17, 1996–4 I.R.B. 69

89–48

Superseded in part by

96–17, 1996–4 I.R.B. 69

91–22

Modified by

96–1, 1996–1 I.R.B. 8

91–22

Amplified by

96–13, 1996–3 I.R.B. 31

95–7

Superseded by

96–7, 1996–1 I.R.B. 185

95–8

Superseded by

96–8, 1996–1 I.R.B. 187

95–13

Superseded by

96–20, 1996–4 I.R.B. 88

95–20

Superseded by

96–24, 1996–5 I.R.B. 28

95–50

Superseded by

96–3, 1996–1 I.R.B. 82

96–3

Amplified by

96–12, 1996–3 I.R.B. 30

Revenue Rulings:

94–59

Superseded in part by

96–17, 1996–4 I.R.B. 69

66–307

Obsoleted by

96–3, 1996–2 I.R.B. 14

Superseded by

96–18, 1996–4 I.R.B. 73

72–437

Modified by

96–13, 1996–3 I.R.B. 31

94–62

Modified by

96–29, 1996–16 I.R.B. 24

94–77

Superseded by

96–28, 1996–14 I.R.B. 31

95–1

Superseded by

96–1, 1996–1 I.R.B. 8

95–2

Superseded by

96–2, 1996–1 I.R.B. 60

78–294

Obsoleted by

8665, 1996–21 I.R.B. 4

80–80

Obsoleted by

96–3, 1996–2 I.R.B. 14

82–80

Modified by

96–14, 1996–3 I.R.B. 41

92–19

Supplemented in part

96–2, 1996–2 I.R.B. 5

95–3

Superseded by

96–3, 1996–1 I.R.B. 82

92–75

Clarified by

96–13, 1996–3 I.R.B. 31

91–24

Superseded by

96–14, 1996–3 I.R.B. 41

95–4

Superseded by

96–4, 1996–1 I.R.B. 94

95–10

Supplemented and superseded by

96–4, 1996–3 I.R.B. 16

91–26

Superseded by

96–13, 1996–3 I.R.B. 31

95–5

Superseded by

96–5, 1996–1 I.R.B. 129

95–11

Supplemented and superseded by

96–5, 1996–3 I.R.B. 29

92–20

Modified by

96–1, 1996–1 I.R.B. 8

95–6

Superseded by

96–6, 1996–1 I.R.B. 151

96–24

Modified and amplified by

96–24A, 1996–15 I.R.B. 12

91–23

Superseded by

96–13, 1996–3 I.R.B. 31

1A cumulative finding list for previously

published items mentioned in Internal Revenue

Bulletins 1995–27 through 1995–52 will be

found in Internal Revenue Bulletin 1996–1, dated

January 2, 1996.

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778/20051/1JUL96/IRS23-054

INDEX

Internal Revenue Bulletins 1996–1

Through 1996–22

For index of items published during

the last six months of 1995, see

I.R.B. 1996–1, dated January 2,

1996.

The abbreviation and number in parentheses following the index entry

refer to the specific item; numbers

in roman and italic type following the

parentheses refer to the Internal

Revenue Bulletin in which the item

may be found and the page number

on which it appears.

Key to Abbreviations:

TDO

SPR

PTE

Revenue Ruling

Revenue Procedure

Treasury Decision

Court Decision

Public Law

Executive Order

Delegation Order

Treasury Department Order

Tax Convention

Statement of Procedural

Rules

Prohibited Transaction

Exemption

EMPLOYMENT TAXES

Backup withholding:

Substitute Form W–9 (RP 26) 8, 22

Forms, electronic filing, magnetic

media, Form 1042–S (RP 11) 2,

18; correction (Notice 20) 14, 30

Proposed regulations:

26 CFR 31.3306(r)(2)–1, added;

FUTA taxation of amounts under

employee benefit plans (EE–55–

95) 12, 12

26 CFR 31.6302–1(h)(1)(ii)(A)(2),

added; 31.6302–1(h)(2), –(3), –(7)

and –(8), revised; federal tax

deposits by electronic funds transfer (IA–03–94) 17, 12

26 CFR 31.9999–0, added; effective

date of temporary backup withholding regs (IA–33–95) 4, 99

Partial withdrawal of proposed regulations INTL–52–86 (Notice 4) 4, 69

Regulations:

26 CFR 31.3402(r)–1 added;

31.3402(r)–IT, removed; withholding on distributions of Indian

gaming profits to tribal members

(TD 8634) 3, 17

EMPLOYMENT TAXES—

Continued

Regulations—Continued

26 CFR 31.3406(g)–1(d), added; information reporting and backup withholding (TD 8664) 20, 7

26 CFR 31.3406–0 revised;

31.3406(a)–1—31.3406(i)–1,

31.6051–4, 31.6413(a)–3, added;

35a.9999.OT, 35a.3406–2, removed; 301.6109–1, amended;

backup withholding statement

mailing requirements, and due diligence (TD 8637) 4, 29

26 CFR 31.6051–1(d), 31.6071(a)–

1(a)(3), amended; 31.6051–2(c),

31.6081(a)–1(a)(3), 301.6011–

2(c)(4)(i), revised; time for furnishing wage statements on termination of employer’s operations

(TD 8636) 4, 64; correction

(Notice 21) 14, 30

26 CFR 31.6302–IT(h)(1)(ii)(A)(2),

added; 31.6302–IT(h)(2), –(3),

–(7), –(8), revised; federal tax

deposits by electronic funds transfer (TD 8661) 17, 7

26 CFR 33 and 38, removed; parts

declared obsolete (TD 8655) 12, 9

26 CFR 301.6109–1, amended grantor trust reporting requirements

(TD 8633) 4, 20

26 CFR 301.7507–1, 301.7507–0,

amended; treatment of acquisition

of certain financial institutions

(TD 8641) 6, 4

26 CFR 301.7701–3, amended; cost

sharing arrangements (TD 8632) 4,

26 CFR 301.9100–7T, amended;

generation-skipping transfer tax

(TD 8644) 7, 16

Returns:

Information, electronic filing; Form

941 (RP 19) 4, 80

Magnetic tape reporting: Forms 940,

941, and 945 (RP 18) 4, 73

Reporting agents, Form 8655 (RP

17) 4, 69

ESTATE & GIFT TAXES

ADMINISTRATIVE—

Continued

Regulations:

26 CFR 20.2035–1; 26 CFR 23 and

24, 25.2517–1, removed; regulations declared obsolete (TD 8655)

12, 9

26 CFR 301.6109–1, amended; grantor trust reporting requirements

(TD 8633) 4, 20

26 CFR 301.6011–2(c)(4)(i), revised;

time for furnishing wage statements on termination of employer’s operations (TD 8636) 4,

26 CFR 301.7507–1, 301.7507–0,

amended; treatment of acquisition

of certain financial institutions

(TD 8641) 6, 4

26 CFR 301.7701–3, amended; cost

sharing arrangements (TD 8632) 4,

26 CFR 301.9100–7T, amended;

generation-skipping transfer tax

(TD 8644) 7, 16

ESTATE TAXES

Annuities, valuation, terminally ill

measured life (RR 3) 1, 14

Regulations:

26 CFR 20.2035–1, removed; regulations declared obsolete (TD 8655)

12, 9

26 CFR 20.7520–3, amended; acturial tables exceptions (TD 8630)

3, 19

26 CFR Part 26, revised; 301.9100–

7T, amended; generation-skipping

transfer tax (TD 8644) 7, 16

Special use value; farms; interest rates

(RR 23) 15, 11

Tax conventions, competent authority

procedures (RP 13) 3, 31

ESTATE & GIFT TAXES

ADMINISTRATIVE

GIFT TAXES

Proposed regulations:

26 CFR 301.6103(n)–1, amended;

disclosure of returns and return

information to procure property or

services for tax administration purposes (DL–1–95) 6, 28

Annuities, valuation, terminally ill

measured life (RR 3) 1, 14

Regulations:

26 CFR 25.2517–1, removed; regulations declared obsolete (TD 8655)

12, 9

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GIFT TAXES—Continued

Regulations—Continued

26 CFR 25.2522(c)–3, 25.7520–3

amended; actuarial tables exceptions (TD 8630) 3, 19; correction

(Notice 22) 14, 30

26 CFR 25.2702–3, amended; grantor trust reporting requirements

(TD 8633) 4, 20

26 CFR 25.2702–5, 25.2702–7,

amended; sale of residence from

qualified personal residence trust

(PS–4–96) 18, 5

Tax conventions, competent authority

procedures (RP 13) 3, 31

EXCISE TAXES

Proposed regulations:

26 CFR 48.4081–8; 48.4082–1, revised; 41.4101–1, amended; gasoline and diesel fuel dye injection

systems (PS–6–95) 16, 27

26 CFR 48.4101–1(c), 48.4101–2T;

gasoline sale or removal and tax

bond requirements, withdrawn

(Notice 26) 18, 4

26 CFR 301.6103(n)–1, amended;

disclosure of returns and return

information to procure property or

services for tax administration purposes (DL–1–95) 6, 28

Regulations:

26 CFR 48.4081–4, 48.4082–1, –2T,

48.4101–3T, –4T, 48.6427–8T,

–9T, removed; 48.4082–1, –2,

48.4101–1, –2, 48.6427–8, –9,

added; 48.4041–0T, removed;

48.4041–1, –2, –2T, removed;

48.4041–21, amended; 48.4041–

15—48.4041–21, transferred;

48.4042–1, amended; 48.4064–

1(e)(2), amended; 48.4081–1, –2,

–3, revised; 48.4081–4, –5, –7,

amended; 48.4081–6, –8, revised;

48.4081–10T, –11T, –12T, removed; 48.4082–1, revised;

48.4082–2T, –3T, –4T, 48.4083,

removed; 48.4082–2, –3, –4,

48.4083–1, added; 48.4101–2T,

–3, –3T, –4T, removed; 48.4102–

1, amended; 48.4221, removed;

48.4221–1, –2, –5, amended;

48.4221–8, –9, –10, –12, removed;

48.4221–11, redesignated; 48.4222(a)–1, (b)–1, revised; 48.4222(d)–1, amended;

40.6011(a)–1(b), amended;

40.6011(a)–3T, removed; Part 42,

EXCISE TAXES—

Continued

Regulations—Continued

removed; 48.6206–1, removed;

48.6416(b)(2)–2, amended;

48.6416(g)–1, removed; 48.6421–

3, amended; 48.6424–0—48.6424–

6, removed; 48.6427–3, –7,

amended; 48.6427–8, –9, added;

48.6427–8T, –9T, removed;

48.6675–1, removed; 48.6714–1,

added; gasoline and diesel fuel

registration requirements (TD

8659) 16, 4

26 CFR 301.7507–1, 301.7507–0,

amended; treatment of acquisition

of certain financial institutions

(TD 8641) 6, 4

26 CFR 301.9100–7T, amended;

generation-skipping transfer tax

(TD 8644) 7, 16

26 CFR 53.4941(d)–2, amended;

self-dealing for private foundations

(TD 8639) 5, 12

26 CFR 301.6011–2(c)(4)(i), revised;

time for furnishing wage statements on termination of employer’s operations (TD 8636) 4,

26 CFR 301.6109–1, amended; grantor trust reporting requirements

(TD 8633) 4, 20

26 CFR 301.7701–3, amended; cost

sharing arrangements (TD 8632) 4,

INCOME TAX

Administration:

Advance valuation of art (RP 15) 3,

Delegation of authority:

Authority of Taxpayer Ombudsman (DO 239 [Rev. 1]) 7, 49

Authority to modify or rescind

TAO (DO 232 [Rev. 2]) 7, 49

Unagreed issues, referral to Appeals

(RP 9) 2, 15

Annuities and pensions, valuation, terminally ill measured life (RR 3) 2,

Application of appeals settlement to

coordinated examination program

taxpayers (D.O. 236 (Rev. 2)) 21, 7

Authority of exam case managers to

accept settlement offers and execute

closing agreements on ISP and

IFASP issues (D.O. 247) 21, 7

INCOME TAX—Continued

Automobiles:

Owners and lessees, limitations on

depreciation (RP 25) 8, 19

Books and records:

Imaging systems (Notice 10) 7, 47

Butyl benzyl phthalate determination

(Notice 28) 19, 7

Capital expenditures (Notice 7) 6, 22

Changes in computing depreciation or

amortization (RP 31) 20, 11

Checklist questionnaire (RP 30) 19, 8

Consolidated returns, single-entity election (RP 21) 4, 96

Credit against tax:

Enpowerment zone employment, intent to issue regulations (Notice 1)

3, 30

Differential earnings rate (Notice 15)

13, 19

Employee plans:

Administrative, COBRA premium issues (RR 8) 4, 62

Closing agreements (RP 29) 16, 24

Determination letters (RP 6) 1, 51

Funding:

Full funding limitations, weighted

average interest rate, Dec. 1995

(Notice 2) 2, 15; Jan. 1996

(Notice 9) 6, 26; Feb. 1996

(Notice 11) 8, 19; March 1996

(Notice 16) 13, 20; April 1996

(Notice 24) 16, 23; May 1996

(Notice 32) 22, 7

Mortality tables (RR 7) 3, 12

Retirement Protection Act of 1994

(RR 20) 15, 5; (RR 21) 15, 7

Single sum distributions amounts,

cash balance plans (Notice 8) 6,

Estimate tax payments for individuals

(Notice 5) 6, 22

Estate and trusts:

Valuations, transfers to pooled income funds (RR 1) 1, 7

Foreign insurance companies, domestic asset/liability and investment

yield (RP 23) 5, 27

Forms:

Substitute Forms W–2 and W–3,

specifications (RP 24) 5, 28; (RP

24A) 15, 12

Fringe benefits aircraft valuation formula (RR 25) 19, 4

Insurance companies:

Life, interest rate tables (RR 2) 2, 5

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INCOME TAX—Continued

Interest:

Investment:

Federal short-term, mid-term and

long-term rates, Jan. 1996 (RR

6) 2, 8; Feb. 1996 (RR 14) 6,

20; March 1996 (RR 15) 11, 9;

April 1996 (RR 19) 14, 24; May

1996 (RR 24) 19, 5

Rates, underpayments and overpayments (RR 17) 13, 5

Interest netting study (Notice 18) 14,

Inventories:

LIFO:

Price indexes, department stores,

Nov. 1995 (RR 9) 4, 5; Dec.

1995 (RR 12) 9, 4; Jan. 1996

(RR 18) 13, 4; Feb. 1996 (RR

22) 15, 9; March 1996 (RR 26)

21, 5

Investment:

Inflation adjustment for 1996 (RR 4)

3, 16

Joint return study (Notice 19) 14, 28

Loans:

CPI adjustment for below market

loans—1996 (RR 5) 3, 29

Subject to principal-reduction

method of accounting and mark-to

market rules (Notice 23) 16, 23

Low-income housing credit:

Bond factor amounts Jan.–Mar. 1996

(RR 16) 11, 4

Tax credit (RR 27) 11, 27

Low-income housing guidelines (RP

32) 20, 14

Major disaster areas (RR 13) 10, 19

Mark to market, securities dealers

(Notice 12) 10, 29

Nonconventional source fuel credit

(Notice 29) 19, 7

Partnerships:

Charitable contribution of property

(RR 11) 4, 28

Sales between partners, basis (RR

10) 4, 27

Payments from Presidential Election

Campaign Fund (Notice 13) 10, 29

Per diem allowances (RP 28) 14, 31

Property (contributed or other) distribution; recognition of gain or loss by

contributing partner; correction

(Notice 17) 13, 20

Proposed regulations:

26 CFR 1.72–17A, amended: 1.72–

17A(d)(1), added; 1.72(p)–1,

added; loans to plan participants

(EE–106–82) 10, 31

26 CFR 1.125–3, added; effect of

Family and Medical Leave Act of

1993 on the operation of cafeteria

plans (EE–20–95) 5, 15

26 CFR 1.163–5, 1.165–12(c),

amended; 1.871–14, 1.1441–0,

added; 1.1441–1, revised; 1.1441–

3, –4, amended; 1.1441–4T, removed; 1.1441–5, –6, –7, revised;

1.1441–8T, amended; 1.1441–9,

added; 1.1442–1, –2, revised;

1.1442–3, added; 1.1443–1,

amended; 1.1461–1, –2, revised;

1.1461–3, –4, removed; 1.1462–1,

amended; 1.463–1, revised;

1.6041–1, –3, amended; 1.6041–4,

revised; 1.6041A–1, 1.6042–3,

1.6045–1, amended; 1.6049–4, revised; 1.6049–4(d)(3), –5,

1.6050N–1, 31.3401(a)(6)–1,

amended; 31.3406(d)–3, revised;

31.3406(g)–1(e), added;

31.3406(h)–2, 31.6413(a)–3,

amended; 35a.9999–1—3A, –4T,

removed; 301.6109–1, 301.6114–1,

301.6402–3, amended; withholding

of tax under sections 1441 and

1442 on certain U.S. source income paid to foreign persons

(INTL–62–90; INTL–32–93;

INTL–52–86; INTL–52–94) 19, 26

26 CFR 1.351–1(a)(3), 1.721–1(c),

added; treatment of underwriters in

sections 351 and 721 transactions

(TD 8665) 21, 4

26 CFR 1.367–9, added (INTL–9–

95) 5, 24

26 CFR 1.409–1(b)(2)(i), retirement

bonds withdrawn (EE–118–81) 11,

26 CFR 1.411(c)–1, amended; allocation of accrued benefits between

employer and employee contributions (EE–20–95) 5, 15

26 CFR 1.411(d)(6), added; future

benefit accrual (EE–34–95) 3, 49

26 CFR 1.501(c)(5)–1, amended;

requirements for tax-exempt organizations (EE–53–95) 5, 23

26 CFR 1.731–2, added; distribution

of marketable securities by a partnership (PS–2–95) 7, 50

Regulations—Continued

26 CFR 1.863–0, added; 1.863–1, –2,

–3, revised; 1.863–4, amended;

1.863–5, removed; source of income from sales of inventory and

natural resources produced in one

jurisdiction and sold in another

(INTL–3–95) 6, 29

26 CFR 1.882–5, 1.884–1, amended;

effectively connected income and

branch profits tax (INTL–54–95)

14, 39

26 CFR 1.1254–0, 1.1254–4,

amended; treatment of gain from

disposition of interest in certain

natural resource recapture property

by S corporations (PS–7–89) 8, 24

26 CFR 1.6081–4(a), revised:

1.6081–4(d), added; automatic extension of time for filing individual tax returns (IA–41–93) 11, 29

26 CFR 1.6302–4, added; federal tax

deposits by electronic funds transfer (IA–03–94) 17, 12

26 CFR 31.3121(v)(2)–1, –2, added;

FICA taxation amounts under

employee benefit plans (EE–142–

87) 12, 13

26 CFR 31.3306(r)(2)–1, added;

FUTA taxation amounts under

employee benefit plans (EE–55–

95) 12, 12

26 CFR 301.6651–1(c)(3), revised;

failure to file return or pay tax

(IA–41–93) 11, 29

26 CFR 301.6103(n)–1, amended;

disclosure of returns and return

information to procure property or

services for tax administration purposes (DL–1–95) 6, 28

26 CFR 301.7811–1(d), –(h), revised; authority to modify or rescind TAOs (GL–1–96) 21, 9

Property (contributed or other) distribution; recognition of gain or loss by

contributing partner; correction

(Notice 17) 13, 20

Regulations:

26 CFR 1.162–27, added; disallowance of deductions for

employee remuneration in excess

of $1,000,000 (TD 8650) 10, 5;

TD 8650 corrected (Notice 14) 12,

26 CFR 1.168(h)–1; 1.168(i)(2),

added; lease term tax-exempt use

property (TD 8667) 20, 4

26 CFR 1.305–3, –5, –7, amended;

distribution of stock and stock

rights (TD 8643) 11, 4

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INCOME TAX—Continued

Regulations—Continued

26 CFR 1.367(a)–3T, amended; certain transfers of domestic stock or

securities by U.S. persons to foreign corporations (TD 8638) 5, 5

26 CFR 1.385–2(d), removed; 1.358–

6, 1.1032–2, 1.1502–30, added;

controlling corporation’s basis adjustment (TD 8648) 10, 23

26 CFR 1.401–12(n) redesignated

1.408–2(e); 1.401–12T, removed;

1.401(f)–1, 1.408–2, amended;

nonbank trustee net worth requirements (TD 8635) 3, 5

26 CFR 1.411(d)–6T, added; notice

of significant reduction in the rate

of future benefit accrual (TD

8631) 3, 7

26 CFR 1.469–0, 1.469–4, 1.469–11,

amended; 1.469–9, revised; rules

for certain rental real estate activities (TD 8645) 8, 4

26 CFR 1.482–0, 301.7701–3,

amended; 1.482–7, added; 1.482–

7T, removed; section 482 cost

sharing arrangements (TD 8632) 4,

26 CFR 1.508–1, 1.6033–2 amended;

exempt organization not required

to file annual returns, integrated

auxiliaries of churches (TD 8640)

2, 10

26 CFR 1.597–1—1.597–7, added;

301.7507–1, 301.7507–9, amended;

treatment of acquisition of certain

financial institutions (TD 8641) 6, 4

26 CFR 1.671–4, revised; 1.6012–3,

301.6109–1, amended; grantor

trust reporting requirements (TD

8633) 4, 20

26 CFR 1.671–4, 1.677(a)–1,

amended; 301.7701–4(e), added;

environmental settlement funds

classification (TD 8668) 22, 4

26 CFR 1.704–4, 1.737–1 through

1.737–5, added; recognition of gain

or loss by contributing partner on

distribution of contributed property

or other property (TD 8642) 7, 4

26 CFR 1.861–8, amended; 1.861–17,

added; allocation and apportionment of research and experimental

expenditures (TD 8646) 8, 10

26 CFR 1.861–9T, amended; 1.822–

0, added; 1.882–5, revised; interest

expense deduction of foreign corporations (TD 8658) 14, 13

Regulations—Continued

26 CFR 1.864–4, 1.871–12, 1.884–

0(b), amended; 1.884–1(d)(4),

1.884–2T(a)(5), 1.884–4(b)(1) and

(2), revised; 1.884–1(i)(4), 1.884–

2T(a)(6), 1.884–4(e)(1) and (2),

added; effectively connected income and branch profits tax (TD

8657) 14, 4

26 CFR 1.952–3, 1.957–1, corrected;

definition of a controlled foreign

corporation, foreign base company

income, and foreign personal holding company income of a controlled foreign corporation (Notice

33) 22, 8

26 CFR 1.1258–1, added; conversion

transactions (TD 8649) 9, 5

26 CFR 1.1301–1, 1.32–1, 1.103–12,

1.110–1, 1.114–1, 1.115–1, 1.116–

1, –2, 1.367(a)–7T, 1.383–1A,

–2A, –3A, 1.804–1, 1.805–1

through –8 and intermediate sections, 1.820–1, –2, –3, 1.824–1,

–2, –3, removed; 1.907–0,

amended; 1.907(e)(1), 1.907(a)–

0A, –1A, 1.907(b)–1A, –2A,

1.907(c)–1A, –2A, –3A, 1.907(d)–

1A, 1.907(e)–1A, 1.907(f)–1A,

1.995–7, 1301–0 through –3 and

intermediate sections, 1.1303–1,

1.1304–1 through –6 and intermediate sections, removed; regulations declared obsolete (TD 8655)

12, 9

26 CFR 1.1445–1, 1.1445–8(c)(2)(i),

revised; 1.1445–5, amended; withholding of tax on dispositions of

U.S. real property interests by

foreign persons (TD 8647) 9, 7

26 CFR 1.1502–13, revised;

1.267(f)–1(k), amended; 1.1502–

13(f)(6), added; 1.1502–13(g)(2)(i)(B), amended; consolidated

groups intercompany transactions

and related rules (TD 8660) 17, 4

26 CFR 1.6042–4, 1.6044–5, revised;

1.6049–6, 301.6109–1, amended;

1.6050N–1, added Backup withholding, statement mailing requirements and due diligence (TD

8637) 4, 29

26 CFR 1.6049–4, –5, –6, amended;

1.6049–8, added; information reporting and backup withholding

(TD 8664) 20, 7

26 CFR 1.6050I–0T, –2T, removed;

1.6050I–0, –2, added; cash reporting by court clerks (TD 8652) 11,

Regulations—Continued

26 CFR 1.6050P–0, –1, added,

1.6050P–0T, –1T, removed; information reporting for discharges of

indebtedness (TD 8654) 11, 14

26 CFR 1.6081–4, amended; 1.6081–

4T, added; automatic extension of

time for filing income tax returns

(TD 8651) 11, 24

26 CFR 1.6302–4T, added; federal

tax deposits by electronic funds

transfer (TD 8661) 17, 7

26 CFR 1.6662–0, –6T, removed;

1.6662.5T, revised; 1.6662–6,

added; imposition of accuracyrelated penalty (TD 8656) 13, 9

26 CFR 301.6011–2(c)(4)(i), revised;

time for furnishing wage statements upon termination of employer’s operations (TD 8636) 4,

26 CFR 301.6311–1, corrected; payment of tax by check or money

order (Notice 27) 18, 4

26 CFR 1.7520–3, amended; actuarial tables exceptions (TD 8630)

3, 19

26 CFR 301.6676–1, 301.7424–1,

removed; regulations declared obsolete (TD 8655) 12, 9

26 CFR 301.9100–7T, amended;

generation-skipping transfer tax

(TD 8644) 7, 16

Relief from filing Form 3115 for

501(c) orgs. (Notice 30) 20, 11

Returns:

Form 990, church affiliated organizations exempt from filing (RP 10)

2, 17

On-line service electronic filing program; Form 1040 (RP 20) 4, 88

Renewable electricity production credit:

1996 inflation adjustment factor and

reference prices (Notice 25) 17, 11

Rulings:

Areas in which advance rulings

willing to be issued:

Associate Chief Counsel (Domestic), Associate Chief Counsel

(Employee Benefits and Exempt

Organizations) (RP 3) 1, 86

Associate Chief Counsel (International) (RP 7) 1, 185

Areas in which rulings will not be

issued (RP 12) 3, 30

Employee plans and exempt organizations user fees correction (RP

8A) 9, 10

SEQ 0046 JOB IRS23-054-004 PAGE-0025 INDEX

REVISED 01JUL96 AT 03:34 BY LR DEPTH: 65.01 PICAS WIDTH 32.10 PICAS

COMPOSITE COLOR

778/20051/1JUL96/IRS23-054

INCOME TAX—Continued

Rulings—Continued

Letter rulings, determination letters,

and information letters, Associate

Chief Counsel (Domestic), Associate Chief Counsel (Employee Benefits and Exempt Organizations),

Associate Chief Counsel (Enforcement Litigation) and Associate

Chief Counsel (International) (RP

1) 1, 8

No-rule provision, combining transactions (RP 22) 5, 27 (Notice 6) 5,

Tax-exempt bonds, issuance procedrues (RP 16) 3, 45

Technical advice, employee plans

and exempt organizations (RP 5)

1, 129

Technical advice to the District Directors and Chiefs, Appeals Offices,

from the Associate Chief Counsel

Rulings-Continued

(Domestic), Associate Chief Counsel (Employee Benefits and Exempt Organizations), Associate

Chief Counsel (Enforcement Litigation), and Associate Chief

Counsel (International) (RP 2) 1,

Rulings and determination letters, issuance procedures (RP 4) 1, 94

Tax conventions:

Competent authority procedure (RP

13) 3, 31

Relief in treaty cases (RP 14) 3, 41

U.S.-Canada income tax treaty, RRSPs

and RRIFs (Notice 31) 22, 7

User fees for employee plans and exempt

organizations (RP 8) 1, 187

Waiver Rev. Proc., section 911(d)(4) (RP

33) 22, 8

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.