Bulletin No. 1996–41

Agency decision

Ask Donna

What actually matters in this document.

Text

October 7, 1996

HIGHLIGHTS

OF THIS ISSUE

These synopses are intended only as aids to the reader in

identifying the subject matter covered. They may not be relied

upon as authoritative interpretations.

INCOME TAX

EMPLOYEE PLANS

Rev. Rul. 96–49, page 4.

Federal rates; adjusted federal rates; adjusted federal long-term rate, and the long-term exempt rate.

For purposes of sections 1274, 1288, 382, and other

sections of the Code, tables set forth the rates for

October 1996.

REG–245562–96, page 8.

Proposed regulations under sections 401 and 402 of

the Code provide guidance on the qualification of retirement plans that accept rollover contributions from employees.

Notice 96–49, page 6.

Tax-exempt bonds, arbitrage. This notice states that

the Internal Revenue Service has received written and

oral comments on Rev. Proc. 96–41, 1996–32 I.R.B. 9,

outlines the steps the Service is taking in response to

these comments, and announces a public hearing. Rev.

Proc. 96–41, section 5.01, is modified by extending the

deadline for requesting a closing agreement under the

closing agreement program described in Rev. Proc.

96–41.

Finding Lists begin on page 17.

Announcements of Disbarments and Suspensions begin on page 13.

Quarterly Index for July, August, and September begins on page 19.

EXEMPT ORGANIZATIONS

Announcement 96–104, page 10.

A list is given of organizations now classified as private

foundations.

ADMINISTRATIVE

Notice 96–50, page 6.

T.D. 8029, 1985–2 C.B. 303, relating to statements

required to be furnished by brokers and information

returns of brokers, is corrected.

Mission of the Service

The purpose of the Internal Revenue Service is to

collect the proper amount of tax revenue at the least

cost; serve the public by continually improving the

quality of our products and services; and perform in a

manner warranting the highest degree of public

confidence in our integrity, efficiency and fairness.

Statement of Principles

of Internal Revenue

Tax Administration

The Service also has the responsibility of applying

and administering the law in a reasonable,

practical manner. Issues should only be raised by

examining of ficers when they have merit, never

arbitrarily or for trading purposes. At the same

time, the examining officer should never hesitate

to raise a meritorious issue. It is also important

that care be exercised not to raise an issue or to

ask a court to adopt a position inconsistent with

an established Service position.

The function of the Internal Revenue Service is to

administer the Internal Revenue Code. Tax policy

for raising revenue is determined by Congress.

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

carry out that policy by correctly applying the laws

enacted by Congress; to determine the reasonable

meaning of various Code provisions in light of the

Congressional purpose in enacting them; and to

perform this work in a fair and impartial manner,

with neither a government nor a taxpayer point of view.

Administration should be both reasonable and

vigorous. It should be conducted with as little

delay as possible and with great cour tesy and

considerateness. It should never try to overreach,

and should be reasonable within the bounds of law

and sound administration. It should, however, be

vigorous in requiring compliance with law and it

should be relentless in its attack on unreal tax

devices and fraud.

At the heart of administration is interpretation of the

Code. It is the responsibility of each person in the

Service, charged with the duty of interpreting the

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

provision and not to adopt a strained construction in

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

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

Introduction

The Internal Revenue Bulletin is the authoritative instrument of the Commissioner of Internal Revenue for

announcing official rulings and procedures of the Internal Revenue Service and for publishing Treasury Decisions, Executive Orders, Tax Conventions, legislation,

court decisions, and other items of general interest. It is

published weekly and may be obtained from the Superintendent of Documents on a subscription basis. Bulletin

contents of a permanent nature are consolidated semiannually into Cumulative Bulletins, which are sold on a

single-copy basis.

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

cautioned against reaching the same conclusions in

other cases unless the facts and circumstances are

substantially the same.

The Bulletin is divided into four parts as follows:

Part I.—1986 Code.

This part includes rulings and decisions based on

provisions of the Internal Revenue Code of 1986.

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

substantive rulings necessary to promote a uniform

application of the tax laws, including all rulings that

supersede, revoke, modify, or amend any of those

previously published in the Bulletin. All published rulings

apply retroactively unless otherwise indicated. Procedures relating solely to matters of internal management

are not published; however, statements of internal

practices and procedures that affect the rights and

duties of taxpayers are published.

Part II.—Treaties and Tax Legislation.

This part is divided into two subparts as follows:

Subpart A, Tax Conventions, and Subpart B, Legislation

and Related Committee Reports.

Part III.—Administrative, Procedural, and Miscellaneous.

To the extent practicable, pertinent cross references to

these subjects are contained in the other Parts and

Subparts. Also included in this part are Bank Secrecy

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

Treasury’s Office of the Assistant Secretary (Enforcement).

Revenue rulings represent the conclusions of the Service on the application of the law to the pivotal facts

stated in the revenue ruling. In those based on positions

taken in rulings to taxpayers or technical advice to

Service field offices, identifying details and information

of a confidential nature are deleted to prevent unwarranted invasions of privacy and to comply with statutory

requirements.

Part IV.—Items of General Interest.

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

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

Rulings and procedures reported in the Bulletin do not

have the force and effect of Treasury Department

Regulations, but they may be used as precedents.

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

as precedents by Service personnel in the disposition of

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

The first Bulletin for each month includes an index for

the matters published during the preceding month.

These monthly indexes are cumulated on a quarterly and

semiannual basis, and are published in the first Bulletin

of the succeeding quarterly and semi-annual period,

respectively.

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

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

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

Section 42.—Low-Income Housing

Credit

The adjusted applicable federal short-term, midterm, and long-term rates are set forth for the

month of October 1996. See Rev. Rul. 96–49, this

page.

Section 468.—Special Rules for

Mining and Solid Waste

Reclamation and Closing Costs

The adjusted applicable federal short-term, midterm, and long-term rates are set forth for the

month of October 1996. See Rev. Rul. 96–49, this

page.

Section 280G.—Golden Parachute

Payments

Section 483.—Interest on Certain

Deferred Payments

Federal short-term, mid-term, and long-term

rates are set forth for the month of October 1996.

See Rev. Rul. 96–49, this page.

The adjusted applicable federal short-term, midterm, and long-term rates are set forth for the

month of October 1996. See Rev. Rul. 96–49, this

page.

Section 382.—Limitation on Net

Operating Loss Carryforwards and

Certain Built-In Losses Following

Ownership Change

The adjusted federal long-term rate is set forth

for the month of October 1996. See Rev. Rul.

96–49, this page.

Section 807.—Rules for Certain

Reserves

The adjusted applicable federal short-term, midterm, and long-term rates are set forth for the

month of October 1996. See Rev. Rul. 96–49, this

page.

Section 846.—Discounted Unpaid

Losses Defined

Section 412.—Minimum Funding

Standards

The adjusted applicable federal short-term, midterm, and long-term rates are set forth for the

month of October 1996. See Rev. Rul. 96–49, this

page.

Section 467.—Certain Payments

for the Use of Property or Services

The adjusted applicable federal short-term, midterm, and long-term rates are set forth for the

month of October 1996. See Rev. Rul. 96–49, this

page.

The adjusted applicable federal short-term, midterm, and long-term rates are set forth for the

month of October 1996. See Rev. Rul. 96–49, this

page.

Section 1274.—Determination of

Issue Price in the Case of Certain

Debt Instruments Issued for

Property

(Also sections 42, 280G, 382, 412, 467, 468, 482,

483, 807, 846, 1288, 7520, 7872.)

Federal rates; adjusted federal

rates; adjusted federal long-term rate,

and the long-term exempt rate. For

purposes of sections 1274, 1288, 382,

and other sections of the Code, tables

set forth the rates for October 1996.

Rev. Rul. 96–49

This revenue ruling provides various

prescribed rates for federal income tax

purposes for October 1996 (the current

month.) Table 1 contains the short-term,

mid-term, and long-term applicable federal rates (AFR) for the current month

for purposes of section 1274(d) of the

Internal Revenue Code. Table 2 contains the short-term, mid-term, and

long-term adjusted applicable federal

rates (adjusted AFR) for the current

month for purposes of section 1288(b).

Table 3 sets forth the adjusted federal

long-term rate and the long-term taxexempt rate described in section 382(f).

Table 4 contains the appropriate percentages for determining the lowincome housing credit described in section 42(b)(2) for buildings placed in

service during the current month. Finally, Table 5 contains the federal rate

for determining the present value of an

annuity, an interest for life or for a

term of years, or a remainder or a

reversionary interest for purposes of

section 7520.

REV. RUL. 96–49 TABLE 1

Applicable Federal Rates (AFR) for October 1996

Period for Compounding

Annual

Semiannual

Quarterly

Monthly

6.07%

6.69%

7.31%

7.92%

5.98%

6.58%

7.18%

7.77%

5.94%

6.53%

7.12%

7.70%

5.91%

6.49%

7.07%

7.65%

6.72%

7.40%

8.09%

8.77%

10.17%

11.90%

6.61%

7.27%

7.93%

8.59%

9.92%

11.57%

6.56%

7.21%

7.85%

8.50%

9.80%

11.41%

6.52%

7.16%

7.80%

8.44%

9.72%

11.30%

Short-Term

AFR

110% AFR

120% AFR

130% AFR

Mid-Term

AFR

110% AFR

120% AFR

130% AFR

150% AFR

175% AFR

REV. RUL. 96–49 TABLE 1—Continued

Applicable Federal Rates (AFR) for October 1996

Period for Compounding

Annual

Semiannual

Quarterly

Monthly

7.13%

7.86%

8.59%

9.32%

7.01%

7.71%

8.41%

9.11%

6.95%

7.64%

8.32%

9.01%

6.91%

7.59%

8.27%

8.94%

Long-Term

AFR

110% AFR

120% AFR

130% AFR

REV. RUL. 96–49 TABLE 2

Adjusted AFR for October 1996

Period for Compounding

Annual

Semiannual

Quarterly

Monthly

Short-term

adjusted AFR

4.04%

4.00%

3.98%

3.97%

Mid-term

adjusted AFR

4.71%

4.66%

4.63%

4.62%

Long-term

adjusted AFR

5.64%

5.56%

5.52%

5.50%

REV. RUL. 96–49 TABLE 3

Rates Under Section 382 for October 1996

Adjusted federal long-term rate for the current month

5.64%

Long-term tax-exempt rate for ownership changes during the current month (the highest of the

adjusted federal long-term rates for the current month and the prior two months.)

5.80%

REV. RUL. 96–49 TABLE 4

Appropriate Percentages Under Section 42(b)(2)

for October 1996

Appropriate percentage for the 70% present value low-income housing credit

8.63%

Appropriate percentage for the 30% present value low-income housing credit

3.70%

REV. RUL. 96–49 TABLE 5

Rate Under Section 7520 for October 1996

Applicable federal rate for determining the present value of an annuity, an interest for life or a

term of years, or a remainder or reversionary interest

Section 1288.—Treatment of

Original Issue Discount on

Tax-Exempt Obligations

The adjusted applicable federal short-term, midterm, and long-term rates are set forth for the

month of October 1996. See Rev. Rul. 96–49,

page 4.

Section 7520.—Valuation Tables

The adjusted applicable federal short-term, midterm, and long-term rates are set forth for the

month of October 1996. See Rev. Rul. 96–49,

page 4.

8.0%

Section 7872.—Treatment of Loans

With Below-Market Interest Rates

The adjusted applicable federal short-term, midterm, and long-term rates are set forth for the

month of October 1996. See Rev. Rul. 96–49,

page 4.

Part III. Administrative, Procedural, and Miscellaneous

Compliance With Tax-Exempt Bond

Arbitrage Requirements

Notice 96–49

Rev. Proc. 96–41, 1996–32 I.R.B. 9,

is part of a continuing initiative of the

Internal Revenue Service to address the

complex compliance matters associated

with the arbitrage yield restriction and

rebate requirements of § 148 of the

Internal Revenue Code. In particular,

Rev. Proc. 96–41 provides a voluntary

closing agreement program for issuers

of state or local government bonds that

may have used bond proceeds to pay

more than fair market value for

nonpurpose investments deposited into

an advance refunding escrow. As discussed below, this notice requests comments on Rev. Proc. 96–41 and modifies

section 5.01 of Rev. Proc. 96–41 by

extending the deadline for requesting a

closing agreement under the program. In

the meantime, issuers can continue to

take advantage of the closing agreement

program.

Rev. Proc. 96–41 reflects the Service’s efforts to provide issuers with a

relatively standardized, voluntary procedure to identify and correct potential

noncompliance with the arbitrage yield

restriction and rebate requirements of

§ 148. As part of the standardized approach, the closing agreement program

described in Rev. Proc. 96–41 utilizes

the concept of spot price as the basis for

the closing agreement amount. Rev.

Proc. 96–41 acknowledges, however,

that the use of spot price is for the

administrative convenience of issuers of

state or local government bonds and the

Service. As indicated in Rev. Proc. 96–

41, no inference should be drawn that

spot price necessarily reflects fair market value in any particular case.

Since the release of Rev. Proc. 96–41,

the Service has received written and oral

comments on the revenue procedure. In

response to these comments, the Service

is reviewing the revenue procedure and

is taking the following steps.

(1) The Service extends the deadline

in section 5.01 of Rev. Proc. 96–41 for

requesting a closing agreement under

the revenue procedure from July 19,

1997, to a date that will be no earlier

than 1 year from the date the Service

publishes further guidance relating to

the duration of the closing agreement

program described in Rev. Proc. 96–41.

See section 4.02 of Rev. Proc. 96–41,

however, for a limitation on the use of

the closing agreement program for issues under examination (or which come

under examination).

(2) The Service invites interested parties to submit written comments on all

aspects of Rev. Proc. 96–41. The Service is particularly interested in receiving comments and specific proposals on

the following matters:

(i) What is an appropriate time period

within which to request a closing agreement under the closing agreement program described in Rev. Proc. 96–41?

(ii) What methods or procedures are

appropriate to determine spot price (including the range of values acceptable

as spot price) for purposes of determining the closing agreement amount under

section 6 of Rev. Proc. 96–41?

(iii) Are there other methods appropriate for determining the closing agreement amount that would be easier for

the Service and issuers to apply?

(iv) Are alternative closing agreement

programs warranted either for all types

of issues or for particular types of issues

such as (a) small issues, or (b) bonds

issued on or prior to August 15, 1986,

or prior to other effective dates of the

Tax Reform Act of 1986?

The Service requests that comments

(a signed original and eight (8) copies)

be submitted in writing on or before

December 17, 1996. Send submissions

to: CC:DOM:CORP:R (Notice 96–49),

Room 5226, Internal Revenue Service,

POB 7604, Ben Franklin Station, Washington, DC 20044. In the alternative,

comments (1) may be hand delivered

between the hours of 8 a.m. and 5 p.m.

to CC:DOM:CORP:R (Notice 96–49),

Courier’s Desk, Internal Revenue Service, 1111 Constitution Ave., NW, Washington, DC, or (2) may be submitted

electronically via the Service’s internet

site at http://www.irs.ustreas.gov/prod/

tax_regs/comments.html. All comments

will be available for public inspection

and copying.

A public hearing has been scheduled

for January 15, 1997, at 10 a.m. in

Room 332, Federal Trade Commission

Building, 6th and Pennsylvania Ave.,

NW, Washington, DC. Because of access restrictions, visitors will not be

admitted beyond the Federal Trade

Commission Building lobby more than

15 minutes before the hearing starts.

The hearing will be subject to procedures similar to those described in 26

CFR 601.601(a)(3).

Persons that wish to present oral

comments at the hearing must submit

written comments by December 17,

1996, and submit an outline of the

topics to be discussed and the time to be

devoted to each topic (signed original

and eight (8) copies) by December 24,

1996.

A period of 10 minutes will be allotted to each person for making comments.

An agenda showing the scheduling of

the speakers will be prepared after the

deadline for receiving outlines has

passed. Copies of the agenda will be

available free of charge at the hearing.

EFFECT ON OTHER DOCUMENTS

Rev. Proc. 96–41, section 5.01 is

modified by extending the deadline for

requesting a closing agreement from

July 19, 1997, to a date that will be no

earlier than 1 year from the date the

Service publishes further guidance relating to the duration of the closing agreement program described in Rev. Proc.

96–41.

DRAFTING INFORMATION

The principal author of this notice is

Loretta J. Finger of the Office of Associate Chief Counsel (Financial Institutions and Products). For further information regarding this notice contact Loretta

J. Finger on (202) 622–3980.

Furnishing Statements Required

With Respect To Certain Substitute

Payments; Correction

Notice 96–50

AGENCY: Internal Revenue Service

(IRS), Treasury.

ACTION: Correcting amendment.

SUMMARY: This document contains a

correction to final regulations (TD 8029

[1985–2 C.B. 303]), which were published in the Federal Register on

Wednesday, June 5, 1985 (50 FR 23676)

relating to statements required to be

furnished by brokers and information

returns of brokers.

EFFECTIVE DATE: June 5, 1985.

FOR FURTHER INFORMATION CONTACT: Donna Welch, (202) 622-4910,

(not a toll-free number).

SUPPLEMENTARY

INFORMATION:

26 CFR Part 602

Reporting and recordkeeping requirements.

Background

The final regulations that are the

subject of this correction are under

sections 6042, 6045 and 6049 of the

Internal Revenue Code.

Need for Correction

The final regulations (TD 8029) omitted instructions to remove § 1.6045–2T

and the entry for the OMB control

number. It is the intent of this document

to make these removals as of the publication of the final regulations.

Correcting Amendment to Regulations

Par. 3. The authority citation for part

602 continues to read as follows:

Authority: 26 U.S.C. 7805.

Accordingly, 26 CFR parts 1 and 602

are corrected by making the following

correcting amendments:

§ 602.101 [Amended]

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 * * *

List of Subjects

§ 1.6045–2T [Removed]

26 CFR Part 1

Income taxes, Reporting

recordkeeping requirements.

and

PART 602—OMB CONTROL NUMBERS UNDER THE PAPERWORK

REDUCTION ACT

Par. 2. Section 1.6045–2T is removed.

Par. 4. Section 602.101(c) is amended

by removing the entry for § 1.6045–2T

from the table.

Cynthia E. Grigsby,

Chief, Regulations Unit,

Assistance Chief Counsel (Corporate).

(Filed by the Office of the Federal Register on

September 4, 1996, 8:45 a.m., and published in

the issue of the Federal Register for September 5,

1996, 61 F.R. 46719)

Part IV. Items of General Interest

Notice of Proposed Rulemaking

Relief From Disqualification for

Plans Accepting Rollovers

REG–245562–96

AGENCY: Internal Revenue Service

(IRS), Treasury.

ACTION: Proposed regulations.

SUMMARY: This document contains

proposed regulations that would provide

guidance on the qualification of retirement plans that accept rollover contributions from employees. These regulations

affect plan administrators of qualified

plans that accept rollover contributions.

DATES: Written comments must be received by December 18, 1996.

ADDRESSES: Send submissions to

CC:DOM:CORP:R (REG–245562–96),

room 5228, Internal Revenue Service,

POB 7604, Ben Franklin Station, Washington, DC 20044. In the alternative,

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

CC:DOM:CORP:R (REG–245562–96),

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

Washington, DC. Alternatively, taxpayers may submit comments electronically

via the Internet by selecting the ‘‘Tax

Regs’’ option on the IRS Home Page, or

by submitting comments directly to the

IRS

Internet

site

http://

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

comments.html

FOR FURTHER INFORMATION CONTACT: Marjorie Hoffman, (202) 622–

6030 (not a toll-free number).

SUPPLEMENTARY

INFORMATION:

Background

On September 22, 1995, Final Income

Tax Regulations (TD 8619 [1995–2 C.B.

41]) under sections 401(a)(31) and

402(c) were published in the Federal

with the Unemployment Compensation

Amendments of 1992 (UCA).

UCA expanded the types of distributions from a qualified plan that are

eligible to be rolled over to an individual retirement account or individual

retirement annuity, or to another qualified plan that accepts rollovers (collectively referred to as eligible retirement

1996–41

I.R.B.

plans). Such distributions are referred to

as eligible rollover distributions. UCA

also added a new qualification provision

under section 401(a)(31) that requires

qualified plans to provide employees

with a direct rollover option. Under a

direct rollover option, an employee may

elect to have an eligible rollover distribution paid directly to an eligible retirement plan. The direct rollover option is

provided in addition to the pre-existing

rollover provisions under section 402.

Thus, an employee who receives an

eligible rollover distribution but who

does not elect a direct rollover still has

the option to roll over the distribution to

an eligible retirement plan within 60

days of receipt.

The final regulations under section

401(a)(31) provide that a plan that accepts a direct rollover from another plan

will not fail to satisfy section 401(a) or

403(a) merely because the plan making

the distribution is, in fact, not qualified

under section 401(a) or 403(a) at the

time of the distribution, if, prior to

accepting the rollover, the receiving plan

reasonably concluded that the distributing plan was qualified under section

401(a) or 403(a). The regulations provide, as an example, that the receiving

plan may reasonably conclude that the

distributing plan was qualified under

section 401(a) or 403(a) if, prior to

accepting the rollover, the plan administrator of the distributing plan provided

the receiving plan with a statement that

the distributing plan had received a

determination letter from the Commissioner indicating that the plan was qualified. The plan administrator is not required to verify this information, such as

by obtaining a copy of the distributing

plan’s plan document or determination

letter, in order to reasonably conclude

that the distributing plan is qualified

under section 401(a) or 403(a).

Explanation of Provisions

1. Overview

The relief to be provided in these

proposed regulations is intended to increase the portability of qualified plan

benefits when an employee changes

jobs. This objective would be achieved

by reassuring a plan sponsor that acceptance of an amount as a rollover contribution, in appropriate circumstances,

will not affect the plan’s qualification

under section 401(a) or 403(a).

2. Expansion of existing relief for receiving plans

These proposed regulations would expand and clarify in several respects the

relief provided in the regulations under

section 401(a)(31) issued last year. First,

the proposed regulations would clarify

and expand the relief from disqualification currently provided for plans that

accept direct rollovers. The protection

would be expanded to be available not

only if the plan administrator reasonably

concludes the distributing plan is qualified under section 401(a) or 403(a)

(even if later it is determined that the

distributing plan is not a qualified plan),

but also if the plan administrator reasonably concludes that a distribution meets

the other requirements to be an eligible

rollover distribution (but later it is determined that this conclusion was incorrect). Further, the proposed regulation

would clarify that if the plan administrator reaches these conclusions reasonably,

and satisfies the corrective distribution

requirement described below, the contribution will be treated as a rollover contribution for purposes of applying qualification requirements under section

401(a) or 403(a) to the plan. Thus, if the

contribution was not, in fact, a distribution from a qualified plan or for any

other reason fails to be an eligible

rollover distribution within the meaning

of section 402(c), the contribution nevertheless would be treated as a rollover

contribution as opposed to, for example,

an employee contribution for purposes

of section 401(m) or for purposes of

section 415.

Second, the regulations would extend

this expanded relief from disqualification to plans that accept rollover contributions other than direct rollover contributions. Thus, the relief would apply to

plans that accept rollover contributions

made by an employee within 60 days of

the date of the distribution from a plan.

Further, the relief would apply to plans

that accept rollover contributions from a

‘‘conduit IRAs,’’ i.e., an individual retirement plan that does not contain any

amount attributable to any source other

than a rollover contribution (as defined

in section 402) from a plan qualified

under section 401(a) or an annuity

qualified under section 403(a). The relief would apply if (a) when accepting a

rollover contribution, the plan administrator of the receiving plan reasonably

concludes that the contribution is an

eligible rollover distribution from a

qualified plan (or an amount distributed

from a conduit IRA) and that the contribution satisfies the other applicable requirements of section 402(c) or 408(d)(3) for treatment as a rollover contribution and (b) the receiving plan satisfies

the corrective distribution requirement

described below.

The regulations would provide examples of the actions that a plan administrator might take to reasonably conclude that an employee’s contribution

satisfies the requirements for treatment

as a rollover contribution. The examples

are intended to be merely illustrative.

Plan administrators may develop other

approaches or procedures for reasonably

reaching this conclusion.

Finally, the regulations would provide

that if the receiving plan later obtains

actual knowledge or otherwise determines that the distributing plan was not

qualified at the time of the distribution,

that any portion of the distribution was

not an eligible rollover distribution or an

amount distributed from a conduit IRA,

or that the contribution to the plan

otherwise did not satisfy the applicable

requirements of section 402 or 408 for

treatment as a rollover contribution, a

corrective distribution equal to the

amount of the contribution plus any

earnings attributable to the contribution

would be required to be made to the

employee within a reasonable time after

such determination.

Special Analyses

It has been determined that this notice

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

12866. Therefore, a regulatory assessment is not required. It also has been

determined that section 553(b) of the

Administrative Procedure Act (5 U.S.C.

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

not impose a collection of information

on small entities, the Regulatory Flexibility Act (5 U.S.C. chapter 6) does not

apply. Pursuant to section 7805(f) of the

Internal Revenue Code, this notice of

proposed rulemaking will be submitted

to the Chief Counsel for Advocacy of

the Small Business Administration for

comment on its impact on small business.

ation will be given to any written comments (a signed original and eight (8)

copies) or comments transmitted via

Internet that are submitted timely to the

IRS. All comments will be available for

public inspection and copying.

A public hearing may be scheduled if

requested in writing by a person that

timely submits written comments. If a

public hearing is scheduled, notice of

the date, time, and place for the hearing

will be published in the Federal Register.

Drafting Information

The principal author of these regulations is Marjorie Hoffman, Office of the

Associate Chief Counsel (Employee

Benefits and Exempt Organizations),

IRS. However, other personnel from the

IRS and Treasury Department participated in their development.

Before these proposed regulations are

adopted as final regulations, consider-

Proposed Amendments to the Regulations

Accordingly, 26 CFR part 1 is

amended as follows:

PART 1—INCOME TAXES

Paragraph 1. The authority citation for

part 1 continues to read in part as

follows:

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

Par. 2. Section 1.401(a)(31)–1 is

amended as follows:

1. Under the heading ‘‘List of Questions,’’ redesignating Q–14 through

Q–18 as Q–15 through Q–19, respectively, and adding new Q–14.

2. Under the heading ‘‘Question and

Answers,’’ removing designation (a) and

the paragraph heading, and removing

paragraph (b) from A–13.

3. Under the heading ‘‘Question and

Answers,’’ redesignating Q&A–14

through Q&A–18 as Q&A–15 through

Q&A–19, respectively, and adding

Q&A–14.

The additions read as follows:

§ 1.401(a)(31)–1 Requirement to offer

direct rollover of eligible rollover distributions; questions and answers.

LIST OF QUESTIONS

Comments and Requests for a Public

Hearing

Q–14: If a plan accepts an invalid

rollover contribution, whether or not as

a direct rollover, how will the contribution be treated for purposes of applying

the qualification requirements of section

401(a) or 403(a) to the plan?

QUESTIONS AND ANSWERS

Q–14: If a plan accepts an invalid

rollover contribution, whether or not as

a direct rollover, how will the contribution be treated for purposes of applying

the qualification requirements of section

401(a) or 403(a) to the plan?

A–14: (a) Acceptance of invalid

rollover contribution. If a plan accepts

an invalid rollover contribution, the contribution will be treated, for purposes of

applying the qualification requirements

of section 401(a) or 403(a) to the receiving plan, as if it were a valid rollover contribution, if the following two

conditions are satisfied. First, when accepting the amount from the employee

as a rollover contribution, the plan administrator of the receiving plan reasonably concludes that the contribution is a

valid rollover contribution. Second, if

the plan administrator of the receiving

plan later determines that the contribution was an invalid rollover contribution,

the amount of the invalid rollover contribution, plus any earnings attributable

thereto, is distributed to the employee

within a reasonable time after such

determination.

(b) Definitions. For purposes of this

Q&A–14:

(1) An invalid rollover contribution is

an amount that is accepted by a plan as

a rollover within the meaning of

Q&A–1 of § 1.402(c)–2 (or as a rollover contribution within the meaning of

section 408(d)(3)(A)(ii)) but that is not

an eligible rollover distribution from a

qualified plan (or an amount described

in section 408(d)(3)(A)(ii)) or that does

not satisfy the other requirements of

section 401(a)(31), 402(c), or 408(d)(3)

for treatment as a rollover or a rollover

contribution.

(2) A valid rollover contribution is a

contribution that is accepted by a plan

as a rollover within the meaning of

Q&A–1 of § 1.402(c)–2 or as a rollover

contribution within the meaning of section 408(d)(3) and that satisfies the

requirements of section 401(a)(31), 402(c), or 408(d)(3) for treatment as a rollover or a rollover contribution.

this Q&A–14 are illustrated by the following examples:

Example 1. (a) Employer X maintains for its

employees Plan M, a profit sharing plan qualified

under section 401(a). Plan M provides that any

1996–41

I.R.B.

employee of Employer X may make a rollover

contribution to Plan M. Employee A is an employee of Employer X, will not have attained age

70 1/2 by the end of the year, and has a vested

account balance in Plan O (a plan maintained by

Employee A’s prior employer). Employee A elects

a single sum distribution from Plan O and elects

that it be paid to Plan M in a direct rollover.

(b) Employee A provides the plan administrator

of Plan M with a letter from the plan administrator

of Plan O stating that Plan O has received a

determination letter from the Commissioner indicating that Plan O is qualified.

contrary, a plan administrator may reasonably

conclude that Plan O is qualified and that the

amount paid as a direct rollover is an eligible

rollover distribution.

Example 2. (a) Same facts as Example 1, except

that Employee A elects to receive the distribution

from Plan O and wishes to make a rollover

contribution described in section 402 rather than a

direct rollover.

(b) When making the rollover contribution, Employee A certifies that, to the best of Employee A’s

knowledge, Employee A is entitled to the distribution as an employee and not as a beneficiary, the

distribution from Plan O to be contributed to Plan

M is not one of a series of periodic payments, the

distribution from Plan O was received by Employee A not more than 60 days before the date of

the rollover contribution, and the entire amount of

the rollover contribution would be includible in

gross income if it were not being rolled over.

M with two statements from Plan O. The first is a

letter from the plan administrator of Plan O, as

described in Example 1, stating that Plan O has

received a determination letter from the Commissioner indicating that Plan O is qualified. The

second is the distribution statement that accompanied the distribution check. The distribution statement indicates that the distribution is being made

by Plan O to Employee A, indicates the gross

amount of the distribution, and indicates the

amount withheld as Federal income tax. The

amount withheld as Federal income tax is 20

percent of the gross amount of the distribution.

Employee A contributes to Plan M an amount not

greater than the gross amount of the distribution

stated in the letter from Plan O and the contribution is made within 60 days of the date of the

distribution statement from Plan O.

(d) Based on the certifications and documentation provided by Employee A, absent facts to the

contrary, a plan administrator may reasonably

conclude that Plan O is qualified and that the

distribution otherwise satisfies the requirements of

section 402(c) for treatment as a rollover contribution.

Example 3. (a) The facts are the same as in

Example 2, except that, rather than contributing

the distribution from Plan O to Plan M, Employee

A contributes the distribution from Plan O to IRA

P, an individual retirement account described in

section 408(a). After the contribution of the distribution from Plan O to IRA P, but before the year

in which Employee A attains age 70 1/2, Employee A requests a distribution from IRA P and

decides to contribute it to Plan M as a rollover

contribution. To make the rollover contribution,

Employee A endorses the check received from

IRA P as payable to Plan M.

(b) In addition to providing the certifications

described in Example 2 with respect to the

distribution from Plan O, Employee A certifies

that, to the best of Employee A’s knowledge, the

1996–41

I.R.B.

contribution to IRA P was made not more than 60

days after the date Employee A received the

distribution from Plan O, no amount other than the

distribution from Plan O has been contributed to

IRA P, and the distribution from IRA P was

received not more than 60 days earlier than the

rollover contribution to Plan M.

in Example 2, Employee A provides copies of

statements from IRA P. The statements indicate

that the account is identified as an IRA, the

account was established within 60 days of the date

of the letter from Plan O informing Employee A

that an amount had been distributed, and the

opening balance in the IRA does not exceed the

amount of the distribution described in the letter

from Plan O. There is no indication in the

statements that any additional contributions have

been made to IRA P since the account was

opened. The date on the check from IRA P is less

than 60 days before the date that Employee A

makes the contribution to Plan M.

(d) Based on the certifications and documentation provided by Employee A, absent facts to the

contrary, a plan administrator may reasonably

conclude that Plan O is qualified and that the

contribution by Employee A is a rollover contribution described in section 408(d)(3)(A)(ii) that

satisfies the other requirements of section

408(d)(3) for treatment as a rollover contribution.

Par. 3. Section 1.402(c)–2 is amended

by adding a sentence to the end of A–11

to read as follows:

§ 1.402(c)–2 Eligible rollover distributions; questions and answers.

A–11. * * * See § 1.401(a)(31)–1,

Q&A–14, for guidance concerning the

qualification of a plan that accepts a

rollover contribution.

Michael P. Dolan,

Acting Commissioner of Internal

Revenue.

(Filed by the Office of the Federal Register on

September 18, 1996, 8:45 a.m., and published in

the issue of the Federal Register for September 19,

1996, 61 F.R. 49279)

Foundations Status of Certain

Organizations

Announcement 96–104

The following organizations have

failed to establish or have been unable

to maintain their status as public charities or as operating foundations. Accordingly, grantors and contributors may not,

after this date, rely on previous rulings

or designations in the Cumulative List

of Organizations (Publication 78), or on

the presumption arising from the filing

of notices under section 508(b) of the

Code. This listing does not indicate that

the organizations have lost their status

as organizations described in section

501(c)(3), eligible to receive deductible

contributions.

Former Public Charities. The following organizations (which have been

treated as organizations that are not

private foundations described in section

509(a) of the Code) are now classified

as private foundations:

Alabamians for Quality Education, Inc.,

Birmingham, AL

Christopher Buchanan Memorial Fund,

Overland Park, KS

Christopher D. and Elka P. Norton

Foundation of the Arts, Inc., Hobe

Sound, FL

Day Star Christian Ministries, Inc.,

Salisbury, NC

James B. Engle Scholarship Fund, Royal

Oak, MD

Jeff Goodlin Charitable Trust, Trafford,

Jesus Cares Ministry Inc., Perth Amboy,

John E. Toolan Kiddie Keep Well

Foundation Inc., Edison, NJ

John Heinz Congressional Fellowship

Program, Washington, DC

John I. Penn Evangelistic Ministry,

Newark, DE

Jubilate, Arlington, VA

Jungle Terrace Civic Association Inc.,

St. Petersburg, FL

Kappa Guide Right and Scholarship

Fund of Montclair NJ Inc., Montclair,

Keep Clarksdale Beautiful Inc.,

Clarksdale, MS

Kemit Institute Inc., Mount Rainier, MD

KHMER Cultural Action Center Inc., St.

Petersburg, FL

Kids Voting Florida Inc., Miami, FL

Kitty Nightingale Inc., Roselle Park, NJ

LA Compagnie Louisianaise Inc.,

Lafayette, LA

Lake Washington Foundation Inc.,

Greenville, MS

Lapetite Child Care Center Inc.,

Monroe, LA

Lexington School District Four

Education Foundation, Swansea, SC

Lifeline Ministries International Inc.,

Casselberry, FL

Lighthouse Soccer Club Inc., Jupiter, FL

Lighthouse Square Ministries Inc., New

Port Richey, FL

Louisiana Buddhist Association,

Metairie, LA

Louisiana Citizens for Proactive

Communities, Baton Rouge, LA

Louisiana Long Term Care Foundation

Inc., Baton Rouge, LA

Manatee Leadership Foundation Inc.,

Oneco, FL

Marine Continuum Foundation, Key

Largo, FL

Mary Jane Home Enrichment Centre

Inc., Philadephia, PA

Meck Inc., Clarksville, VA

Medical Social Workers Corp, Miami,

Metropolitan Sickle Cell Foundation

Inc., Washington, DC

Miami Skyline Theatre Inc., Miami, FL

Mid Eastern Dance Exchange Inc.,

Miami, FL

Migdal Tower of Light Inc., North

Miami, FL

Migrant Student Scholarship Fund Inc.,

Tampa, FL

Miquon Area Preservation Society Inc.,

Miquon, PA

Miracle Library for the Blind and Print

Handicapped Inc., Tallahassee, FL

Mississippi Chapter of American

Association of Blacks in Energy Inc.,

Jackson, MS

Moms Day Care Center and Learning

Center, Simpsonville, SC

Morning Glory Inc., Columbia, MD

Mothers Alliance for the Rights of

Children Inc., Washington, DC

Mountain Road Optimist Youth

Foundation Inc., Severna Park, MD

Museum of the New South Inc.,

Charlotte, NC

My House, Fairless Hills, PA

National American Deafness Association

Inc., West Springfield, VA

Native American Festival Inc., Charlotte,

Neighborhood Preservation Association

Inc., Bridgeton, NJ

Network for the Enhancement of

Self-esteem Inc., Fort Washington,

New Direction Transitional Living

Center, Hampton, VA

New Hope Mission of Haiti Inc.,

Kissimmee, FL

New Jersey Postal History Society Inc.,

Morristown, NJ

New Lake Development Foundation,

Jackson, MS

Newport Harbor Elks Lodge No 1767

Charitable Fund, Newport Beach, CA

Newport Volunteer Rescue Squad Inc.,

Newport, VA

Newton County Daycare Center,

Newton, MS

Newtown Gospel Broadcasting

Corporation, Sarasota, FL

Night-Life Production Company A New

Jersey Non-Profit Corporation,

Piscataway, NJ

Noah Boosters, LaPlace, LA

North Alabama Spikers Association Inc.,

Huntsville, AL

Northern AIDS Awareness Community

Education Services, Grayling, MI

North Florida Treasury Management

Assocation Inc., Jacksonville, FL

North Mecklenburg Youth Soccer

Assocation Inc., Davidson, NC

North Philadelphia Partnership,

Philadelphia, PA

Northwest Atlanta Housing & Economic

Development Partnership Inc.,

Atlanta, GA

Northwest Lakeland Community

Development Corporation Inc.,

Lakeland, FL

ODAT of Burlington County New

Jersey Inc., Mt. Holly, NJ

Old National Athletic Association Inc.,

College Park, GA

On Eagles Wings Ministries, Hilton

Head, SC

100 Black Men of America Inc., Atlanta,

100 Black Men of Jackson Inc.,

Jackson, MS

Outright Triangle Gay Lesbian &

Bisexual Youth, Durham, NC

Overtown Community Health Center

Incorporated, Miami, FL

Ozark Chemical Free Living Center

O C F L C, Gassville, AR

Palmetto Battalion, Charleston, SC

Palmetto Players Wheelchair Sports and

Recreation Association, Winnsboro,

Parrish Care Home Inc., Memphis, TN

Pastoral Counseling Care and Training

Inc., Pensacola, FL

Patients Foundation Inc., Columbia, SC

Paul D. Ogwynn Educational

Endowment Trust, Atmore, AL

Penn Hunger Outreach Inc.,

Philadelphia, PA

Pennsylvania State Police Camp Cadet

of Chester County, Coatesville, PA

People Using Legal Services Effectively

D C Inc., Washington, DC

Perinatal Foundation Inc., West Palm

Beach, FL

Permanency & Advocacy Support

System Inc., E. Brunswick, NJ

Perquimans Playhouse Inc., Hertford,

Person to Person Citizen Advocacy,

Jonesboro, AR

Petra Community Housing Development

Corporation, Memphis, TN

Phase III Recovery Center Inc.,

Savannah, GA

Philadelphia Orchestra Retirees and

Friends Inc., Philadelphia, PA

Philadelphia Spirit Inc., Philadelphia, PA

Philippine Charities Foundation Inc.,

Miami, FL

Phillip House Inc., Charleston, SC

Piedmont Area Directory of Pregnancy

Support Resources, Chapel Hill, NC

Pierre Touissaint Foundation Inc.,

Decatur, GA

Pillar Incorporated, Jefferson, LA

Pittsburgh Police Historical Association,

Pittsburgh, PA

Pittsburgh Recovery Systems Inc.,

Pittsburgh, PA

Play Moorestown Inc., Moorestown, NJ

Playwrights Forum Inc., Germantown,

Point Clear Day Care Center Inc., Point

Clear, AL

Police Athletic League of Penns Grove,

Penns Grove, NJ

Polk Zoological Society Inc., Winter

Haven, FL

Port Richey Volunteer Fire Fighters

Organization Inc., Port Richey, FL

Positive Life Inc., Thibodaux, LA

Precious Child, Burlington, NC

Premier Theatre Company Inc., Lincroft,

Printiss County Mississippi Law

Enforcement Association, Booneville,

Professional Christian Associates Inc.,

Melbourne, FL

Programs Education Testing Screening

Inc., Miami, FL

Project C A M P, Montgomery, AL

Promenade Charitable Trust of

Mississippi, Portland, ME

Protect Abused Children Everywhere

PACE, Florence, AL

Psalm 150 Ministry Inc., Charlotte, NC

Rabbits Unlimited Inc., Abbeville, SC

Raintrust Inc., Gainesville, FL

Raleigh Bicentennial Foundation Inc.,

Raleigh, NC

Recovery Path Inc., Chapel Hill, NC

Releasing Anger and Grief Then

Smiling Incorporated, Marrero, LA

Residents Against Graffiti Everywhere

Inc., Miami, FL

Rex Major Evangelistic Association Inc.,

Boca Raton, FL

Ridgewood High School Athletic

Boosters Corporation, New Port

Richey, FL

Riverland Park Community Center,

Cayce, SC

Rockville Academy, Eatonton, GA

Rockwood 2000 Inc., Rockwood, TN

Ron and Claudia Henderson Music

Ministries Inc., Albany, GA

Rural Health Research Inc., Smithfield,

Rural Justice Project, Pembroke, NC

1996–41

I.R.B.

Saint Raphaels Residence Inc., Resaca,

Save Inc., Concord, NC

Save Our Village Inc., Ocracoke, NC

Save the Pascagoula Inc., Moss Point,

S C L C-Womens Organizational

Movement for Equality Now, Atlanta,

Scott Carrigan Inc., Ocala, FL

Second Chance Ministries Inc.,

Columbia, SC

Secure Development Corporation,

Statesville, NC

Serenity Unlimited, Wilmington, NC

Shasta Library Foundation, Redding, CA

Shepherds Village Inc., Largo, FL

Sherman Michael Anderson Trust Inc.,

Hickory, NC

Shreveport-Bossier Jay Strack Crusade

Inc., Shreveport, LA

South Atlantic Lifesaving Association

Inc., Daytona Beach, FL

Southern Cross Soccer Club Inc.,

Birmingham, AL

South Florida Advocated for Children

and Youth Inc., Miami, FL

South Florida Affordable Housing

Corporation, West Palm Beach, FL

Southwest Louisiana Jazz Foundation

Inc., Carencro, LA

Spanish Intergroup of South Florida

Inc., Miami, FL

Special Sundance Studios Incorporated,

Palm Bay, FL

Spina Bifida Association South Carolina

Tri-County Chapter, Summerville, SC

St. Bernard Charities Inc., Chalmette,

St. Francis Hospital Foundation Inc.,

Columbus, GA

St. Helena Human Development Inc.,

Greensburg, LA

St. Lukes Free Medical Clinic of

Spartanburg Inc., Spartanburg, SC

St. Pauls Band Boosters, St. Pauls, NC

Stewarts Foster Group Care Home Inc.,

Memphis, TN

Sunshine State Amateur Golfers

Association Inc., Miami, FL

1996–41

I.R.B.

Support and Value Education, Madison,

Sweet Auburn Merchants & Professional

Association Inc., Atlanta, GA

Synergists Inc., Atlanta, GA

Taylor Foundation Inc., Baton Rouge,

Tender Loving Care Daycare Inc.,

Inglis, FL

Tennessee Outdoor Drama Association

Inc., Chattanooga, TN

Tennessee Youth Dance Foundation,

Franklin, TN

Thames Humane Shelter Inc.,

Greenville, AL

Theatre of the Incarnation Inc., Winter

Park, FL

Therapy for a Damaged Planet, Vista,

Tompey Incorporated, Birmingham, AL

Town and Country Garden Club of

Valdosta Inc., Valdosta, GA

Traid Jazz Society Inc., Winston Salem,

Treutlen Project H O P E Inc., Soperton,

Trevecca Inglewood Retirement Center

Inc., Nashville, TN

Tri-Cities Athletic Club Incorporated,

Ocean Springs, MS

Trinity Ministries Inc., Dacula, GA

Tuskegee Historical Society for

Restoration Preservation and

Education Inc., Tuskegee, AL

Twilighters Anaciano Association,

Denver, CO

Two Bayou Volunteer Fire Department

Inc., Camden, AR

Unexpected Friends, Nashville, TN

United Faith Foundation Inc., Gretna,

United Gymnastics Community Inc.,

Lilburn, GA

United Way of Decatur Inc., Decatur,

Vida Verde Inc., Miami, FL

Videoscopic Surgical Society Inc.,

Tucker, GA

Vision Outreach Ministries Inc.,

Milledgeville, GA

Visual Arts Foundation, Nashville, TN

Voice From the Deep Inc., New Orleans,

Volunteer Center of Hot Springs and

Garland County, Inc., Hot Springs,

Volunteer Scientific Research Team Inc.,

Cape Coral, FL

Waccanaw Housing Inc., Myrtle Beach,

Walter W. & Dollena M. Joiner

Scholarship Fund Inc., Dublin, GA

Washington County Youth Fair Inc.,

Chipley, FL

Washington Wilkes Educational Fund

Inc., Washington, GA

Waycross-Ware A Community United To

Educate Inc., Waycross, GA

Way of Life Ministrie, Long Beach, CA

Whole Armor Ministries Inc.,

Haleyville, AL

Williamson County Drug Free Alliance

Inc., Franklin, TN

Witcher Memorial Foundation Inc.,

Atlanta, GA

World Harvest Ministries Incorporated,

Todd, NC

World Wilderness Committee,

Bellingham, WA

Youth Action Corporation, Knoxville,

If an organization listed above submits information that warrants the renewal of its classification as a public

charity or as a private operating foundation, the Internal Revenue Service will

issue a ruling or determination letter

with the revised classification as to

foundation status. Grantors and contributors may thereafter rely upon such ruling or determination letter as provided

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

Regulations. It is not the practice of the

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

Announcement of the Disbarment, Suspension, and Consent to Voluntary

Suspension of Attorneys, Certified Public Accountants, Enrolled Agents and

Enrolled Actuaries From Practice Before the Internal Revenue Service

Under Section 330, Title 31 of the

United States Code, the Secretary of the

Treasury, after due notice and opportunity for hearing, is authorized to suspend or disbar from practice before the

Internal Revenue Service any person

who has violated the rules and regulations governing the recognition of attorneys, certified public accountants, enrolled agents or enrolled actuaries to

practice before the Internal Revenue

Service.

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

enue Service matter from directly or

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

or under suspension from practice before the Internal Revenue Service.

To enable attorneys, certified public

accountants, enrolled agents and enrolled actuaries to identify such disbarred or suspended practitioners, 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 the date of disbarment or

period of suspension. This announcement will appear in the weekly Bulletin

for five successive weeks or as long as

it is practicable for each attorney, certified public accountant, enrolled agent or

enrolled actuary so suspended or disbarred and will be consolidated and

published in the Cumulative Bulletin.

After due notice and opportunity for

hearing before an administrative law

judge, the following individuals have

been disbarred from further practice before the Internal Revenue Service:

Name

Address

Designation

Effective Date

Styvaert, Richard

Davis Jr., George L.

San Diego, CA

Washington, D.C.

CPA

Enrolled Agent

July 5, 1996

August 15, 1996

Under 31 Code of Federal Regulations, Part 10, an enrolled agent 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 resignation from such practice. The Director of

Practice, in his discretion, may suspend

an enrolled agent 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 enrolled agent who

has resigned from practice before the

Internal Revenue Service.

To enable attorneys, certified public

accountants, enrolled agents and enrolled actuaries to identify former enrolled agents who have resigned from

practice before the Internal Revenue

Service, the Director of Practice will

announce in the Internal Revenue Bulletin the names and addresses of former

enrolled agents who have resigned from

such practice, and date of resignation.

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

enrolled agent who has resigned, and

will be consolidated and published in

the Cumulative Bulletin.

The following individual has offered

his resignation as an enrolled agent:

Name

Address

Date of Resignation

Marchioli, Anthony

Dallas, TX

July 12, 1996

Under 31 Code of Federal Regulations, Part 10, an attorney, certified public accountant, enrolled agent or enrolled

actuary, in order to avoid the institution

or conclusion of a proceeding for his

disbarment or suspension from practice

before the Internal Revenue Service,

may offer his consent to suspension

from such practice. The Director of

Practice, in his discretion, may suspend

an attorney, certified public accountant,

enrolled agent or enrolled actuary in

accordance with the consent offered.

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

enue Service matter from directly or

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

or suspended from practice before the

Internal Revenue Service.

To enable attorneys, certified public

accountants, enrolled agents and enrolled actuaries to identify practitioners

under consent suspension from practice

before the Internal Revenue Service, the

Director of Practice will announce in the

Internal Revenue Bulletin the names and

addresses of practitioners who have

been suspended from such practice, their

designation as attorney, certified public

accountant, enrolled agent or enrolled

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

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

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

many weeks as is practicable for each

attorney, certified public accountant, enrolled agent or enrolled actuary so suspended and will be consolidated and

published in the Cumulative Bulletin.

The following individuals have been

placed under consent suspension from

practice before the Internal Revenue

Service:

Name

Address

Designation

Date of Suspension

Berry, James R.

Rohner Jr., Richard E.

Bova, Robert J.

Rines, Robert L.

Kimball, Randy

Cole, Sherman

Barretta, Samuel N.

Harris, Luis F.

Vourvoulias, James

Swan, Roy E.

Hamilton, Barry K.

Horton, Greta

Addabbo, Marie P.

Crouch Jr., Richard E.

Sanders Jr., Wilfred A.

Perkins, Nancy F.

Nichols, Oliver R.

Winiemko, Ronald C.

Pallman, William F.

Gannon, Martin C.

Andrews, Craig A.

Columbus, MO

Burr Ridge, IL

Tampa, FL

Concord, NH

Rancho Cucamonga, CA

Oklahoma City, OK

Southfield, MI

Orlando, FL

Park Ridge, IL

Salem, OR

Twins Falls, ID

Richland, VA

Manchester, CT

Miss’nViejo, CA

Orlando, FL

Apple Valley, MN

Meriden, CT

Sterl’g Hts, MI

Guilford, CT

Wallingford, CT

Hicksville, OH

CPA

Attorney

CPA

Attorney

CPA

Enrolled Agent

CPA

Attorney

CPA

June 5, 1996 to December 4, 1997

June 10, 1996 to June 9, 1997

June 10, 1996 to March 9, 1997

June 17, 1996 to December 16, 1998

July 1, 1996 to December 31, 1996

July 1, 1996 to March 31, 1997

August 1, 1996 to December 31, 1999

August 1, 1996 to October 31, 1996

August 1, 1996 to January 31, 1997

August 1, 1996 to September 30, 1996

Indefinite from August 2, 1996

September 1, 1996 to May 31, 1997

September 1, 1996 to February 28, 1999

September 1, 1996 to August 31, 1998

September 1, 1996 to November 30, 1996

September 1, 1996 to May 31, 1997

September 1, 1996 to February 28, 1999

September 30, 1996 to January 29, 1997

September 30, 1996 to December 29, 1996

September 30, 1996 to September 29, 1997

Announcement of the Expedited Suspension of Attorneys, Certified Public

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

Internal Revenue Service

Under title 31 of the Code of Federal

Regulations, section 10.76, the Director

of Practice is authorized to immediately

suspend from practice before the Internal

Revenue Service any practitioner who,

within five years, from the date the

expedited proceeding is instituted, (1)

has had a license to practice as an

attorney, certified public accountant, or

actuary suspended or revoked for cause;

or (2) has been convicted of any crime

under title 26 of the United States Code

or, of a felony under title 18 of the

United States Code involving dishonesty

or breach of trust.

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

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

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

or suspended from practice before the

Internal Revenue Service.

To enable attorneys, certified public

accountants, enrolled agents, and enrolled actuaries to identify practitioners

under expedited suspension from practice before the Internal Revenue Service,

the Director of Practice will announce in

the Internal Revenue Bulletin the names

and addresses of practitioners who have

been suspended from such practice, their

designation as attorney, certified public

accountant, enrolled agent or enrolled

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

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

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

many weeks as is practicable for each

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

suspended and will be consolidated and

published in the Cumulative Bulletin.

The following individuals have been

placed under suspension from practice

before the Internal Revenue Service by

virtue of the expedited proceeding provisions of the applicable regulations:

Name

Address

Designation

Date of Suspension

Bower, Lewis H.

Reiss, Irvin L.

Reynolds, Mark E.

Moore, Philip J.

Broek, Kevin J.

Bein, William

Henry, Gregory

Sadler, George A.

Fuhr IV, John Henry

Rakov, Harris J.

Perkell, Mark E.

Darrah, Robert J.

Constantino, Enrico J.

VanLoan, Jonathan A.

Bennett, John J.

Lavin-Munch, Carole A.

Tampa, FL

Newton, PA

Brownsburg, IN

Rome, GA

Omaha, NE

Beachwood, OH

Bradford, PA

Houston, TX

Dallas, TX

Mahwah, NJ

S. Burlington, VT

Neola, IA

Bay Shore, NY

Frazer, PA

Milford, CT

Merrionette Pk, IL

CPA

Attorney

CPA

Attorney

CPA

Attorney

CPA

Attorney

CPA

Indefinite from May 30, 1996

Indefinite from June 4, 1996

Indefinite from July 1, 1996

Indefinite from July 10, 1996

Indefinite from August 1, 1996

Indefinite from August 21, 1996

Indefinite from August 27, 1996

Definition of Terms

Revenue rulings and revenue procedures

(hereinafter referred to as ‘‘rulings’’)

that have an effect on previous rulings

use the following defined terms to describe the effect:

Amplified describes a situation where

no change is being made in a prior

published position, but the prior position

is being extended to apply to a variation

of the fact situation set forth therein.

Thus, if an earlier ruling held that a

principle applied to A, and the new

ruling holds that the same principle also

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

Clarified is used in those instances

where the language in a prior ruling is

being made clear because the language

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

prior ruling is being changed.

Distinguished describes a situation

where a ruling mentions a previously

published ruling and points out an essential difference between them.

Modified is used where the substance

of a previously published position is

being changed. Thus, if a prior ruling

held that a principle applied to A but not

to B, and the new ruling holds that it

applies to both A and B, the prior ruling

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.

PHC—Personal Holding Company.

PO—Possession of the U.S.

FC—Foreign Country.

FICA—Federal Insurance Contribution Act.

Pub. L.—Public Law.

REIT—Real Estate Investment Trust.

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.

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.

M—Minor.

U.S.C.—United States Code.

Nonacq.—Nonacquiescence.

X—Corporation.

O—Organization.

Y—Corporation.

P—Parent 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.

PR—Partner.

PRS—Partnership.

PTE—Prohibited Transaction Exemption.

Numerical Finding List1

Bulletins 1996–27 through 1996–40

Announcements:

96–61, 1996–27 I.R.B. 72

96–62, 1996–28 I.R.B. 55

96–63, 1996–29 I.R.B. 18

96–64, 1996–29 I.R.B. 18

96–65, 1996–29 I.R.B. 18

96–66, 1996–29 I.R.B. 19

96–67, 1996–30 I.R.B. 27

96–68, 1996–31 I.R.B. 45

96–69, 1996–32 I.R.B. 38

96–70, 1996–32 I.R.B. 40

96–71, 1996–33 I.R.B. 16

96–72, 1996–33 I.R.B. 16

96–73, 1996–33 I.R.B. 18

96–74, 1996–33 I.R.B. 19

96–75, 1996–34 I.R.B. 29

96–76, 1996–34 I.R.B. 29

96–77, 1996–35 I.R.B. 15

96–78, 1996–35 I.R.B. 15

96–79, 1996–35 I.R.B. 15

96–80, 1996–35 I.R.B. 16

96–81, 1996–36 I.R.B. 13

96–82, 1996–36 I.R.B. 14

96–83, 1996–36 I.R.B. 14

96–84, 1996–36 I.R.B. 14

96–85, 1996–37 I.R.B. 20

96–86, 1996–37 I.R.B. 21

96–87, 1996–37 I.R.B. 21

96–88, 1996–38 I.R.B. 150

96–89, 1996–37 I.R.B. 22

96–90, 1996–37 I.R.B. 22

96–91, 1996–37 I.R.B. 23

96–92, 1996–38 I.R.B. 151

96–93, 1996–38 I.R.B. 151

96–94, 1996–38 I.R.B. 153

96–96, 1996–39 I.R.B. 41

96–97, 1996–39 I.R.B. 41

96–98, 1996–39 I.R.B. 42

96–99, 1996–39 I.R.B. 42

96–100, 1996–40 I.R.B. 10

96–101, 1996–40 I.R.B. 10

96–102, 1996–40 I.R.B. 11

96–103, 1996–40 I.R.B. 12

Court Decisions:

2058, 1996–34 I.R.B. 13

2059, 1996–34 I.R.B. 10

2060, 1996–34 I.R.B. 5

Delegation Orders:

155 (Rev. 4), 1996–40 I.R.B. 9

Notices:

96–36, 1996–27 I.R.B. 11

96–37, 1996–31 I.R.B. 29

96–38, 1996–31 I.R.B. 29

96–39, 1996–32 I.R.B. 8

96–40, 1996–33 I.R.B. 11

96–41, 1996–35 I.R.B. 6

96–42, 1996–35 I.R.B. 6

96–43, 1996–36 I.R.B. 7

96–44, 1996–36 I.R.B. 7

96–45, 1996–39 I.R.B. 7

96–46, 1996–39 I.R.B. 7

96–47, 1996–39 I.R.B. 8

96–48, 1996–39 I.R.B. 8

Proposed Regulations:

CO–9–96, 1996–34 I.R.B. 20

CO–24–96, 1996–30 I.R.B. 22

CO–25–96, 1996–31 I.R.B. 30

CO–26–96, 1996–31 I.R.B. 31

FI–28–96, 1996–31, I.R.B. 33

FI–32–95, 1996–34 I.R.B. 21

FI–48–95, 1996–31 I.R.B. 36

FI–59–94, 1996–30 I.R.B. 23

GL–7–96, 1996–33 I.R.B. 13

IA–26–94, 1996–30 I.R.B. 24

IA–29–96, 1996–33 I.R.B. 14

IA–292–84, 1996–28 I.R.B. 38

INTL–4–95, 1996–36 I.R.B. 8

PS–22–96, 1996–33 I.R.B. 15

PS–39–93, 1996–34 I.R.B. 27

REG–209827–96, 1996–37 I.R.B. 19

REG–208215–91, 1996–38 I.R.B. 145

Public Laws:

104–117, 1996–34 I.R.B. 19

104–134, 1996–38 I.R.B. 7

104–168, 1996–38 I.R.B. 8

Railroad Retirement Quarterly Rate

1996–29 I.R.B. 14

Revenue Procedures:

96–36, 1996–27 I.R.B. 11

96–37, 1996–29 I.R.B. 16

96–39, 1996–33 I.R.B. 11

96–40, 1996–32 I.R.B. 8

96–41, 1996–32 I.R.B. 9

96–42, 1996–32 I.R.B. 14

96–43, 1996–35 I.R.B. 6

96–44, 1996–35 I.R.B. 7

96–45, 1996–35 I.R.B. 12

96–46, 1996–38 I.R.B. 144

96–47, 1996–39 I.R.B. 10

96–48, 1996–39 I.R.B. 10

Revenue Rulings:

96–33, 1996–27 I.R.B. 4

96–34, 1996–28 I.R.B. 4

96–35, 1996–31 I.R.B. 4

96–36, 1996–30 I.R.B. 6

96–37, 1996–32 I.R.B. 4

96–38, 1996–33 I.R.B. 4

96–39, 1996–34 I.R.B. 4

96–42, 1996–35 I.R.B. 4

96–43, 1996–36 I.R.B. 4

96–44, 1996–38 I.R.B. 4

96–45, 1996–39 I.R.B. 5

96–46, 1996–39 I.R.B. 5

96–47, 1996–40 I.R.B. 7

96–48, 1996–40 I.R.B. 4

Tax Conventions:

1996–28 I.R.B. 36

1996–36 I.R.B. 6

1996–40 I.R.B. 8

Treasury Decisions:

8673, 1996–27 I.R.B. 4

8674, 1996–28 I.R.B. 7

8675, 1996–29 I.R.B. 5

8676, 1996–30 I.R.B. 4

8677, 1996–30 I.R.B. 7

8678, 1996–31 I.R.B. 11

8679, 1996–31 I.R.B. 4

8680, 1996–33 I.R.B. 5

8681, 1996–37 I.R.B. 17

8682, 1996–37 I.R.B. 4

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

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

Finding List of Current Action on

Previously Published Items1

Bulletins 1996–27 through 1996–40

*Denotes entry since last publication

Revenue Procedures:

80–27

Modified by

96–40, 1996–32 I.R.B. 8

87–32

Modified by

TD 8680, 1996–33 I.R.B. 5

92–20

Modified by

TD 8680, 1996–33 I.R.B. 5

95–29

Superseded by

96–36, 1996–27 I.R.B. 11

95–29A

Superseded by

96–36, 1996–27 I.R.B. 11

95–30

Superseded by

96–42, 1996–32 I.R.B. 14

A cumulative finding list for previously published

items mentioned in Internal Revenue Bulletins

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

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

Index

Internal Revenue Bulletins 1996–27

Through 1996–40

ESTATE AND GIFT TAXES

ADMINISTRATION

For index of items published during

the first six months of 1996, see

I.R.B. 1996–27, dated July 1, 1996.

Proposed regulations:

26 CFR 301.9100–1T—301.9100–3T

and intermediary sections, added;

extensions of time to make elections (IA–29–96) 33, 14

The abbreviation and number in parenthesis following the index entry

refer to the specific item; numbers in

roman and italic type following the

parenthesis refer to the Internal Revenue Bulletin in which the item may

be found and the page number on

which it appears.

Key to Abbreviations:

Revenue Ruling

Revenue Procedure

Treasury Decision

Court Decision

Public Law

Executive Order

Delegation Order

TDO

Treasury Department Order

Tax Convention

SPR

Statement of Procedural

Rules

PTE

Prohibited Transaction

Exemption

EMPLOYMENT TAXES

Proposed regulations:

26 CFR 301.9100–1T—301.9100–3T

and intermediary sections, added;

extensions of time to make elections (IA–29–96) 33, 14

Railroad retirement:

Rate determination, quarterly (July 1,

1996) 29, 14

Regulations:

26 CFR 301.9100–1T—301.9100–3T

and intermediary sections, added;

extensions of time to make elections (TD 8680) 33, 5

ESTATE AND GIFT TAX

ADMINISTRATIVE

Proposed regulations:

26 CFR 20.2041–3, 20.2056(d)–2,

25.2511–1, 25.2514–3, 25.2518–1,

–2, amended; 20.2041–3, added;

disclaimer of interests and powers

(REG–208215–91) 38, 145

ESTATE TAX

Proposed regulations:

26 CFR 20.2041–3(d)(6)(i), amended;

20.2041–3(d)(6)(iii), added;

20.2056(d)–2, amended; disclaimer

of interests and powers (REG–

208215–91) 38, 145

Regulations:

26 CFR 301.9100–1T—301.9100–3T

and intermediary sections, added;

extensions of time to make elections (TD 8680) 33, 5

EXCISE TAXES

Exempt organizations:

Excess benefit transactions engaged in

(Notice 46) 39, 7

Foreign insurance taxes (Ct.D 2060)

34, 5

Proposed regulations:

26 CFR 2652–1, amended; generation-skipping transfer tax (PS–22–

96) 33, 15

GIFT TAX

Proposed regulations:

26 CFR 25.2511–1, 25.2514–3,

25.2518–1, –2, amended; disclaimer of interests and powers

(REG–208215–91) 38, 145

INCOME TAX

Accounting methods (Notice 40) 33, 11

Bankruptcy; validity of liens (Ct.D

2059) 34, 10

Bonds:

Qualified mortgage bonds:

Mortgage credit certificates:

National median gross income

(RP 37) 29, 16

Claiming a refund, U.S. v. IBM (Notice

37) 31, 29

Credits against tax:

Low-income housing (RP 46), 38, 144

Satisfactory bond, ‘‘bond factor’’

amounts for the period July through

September 1996 (RR 45) 39, 5

INCOME TAX—Continued

Employee plans:

Funding:

Full funding limitations, weighted

average interest rate, June 1996

(Notice 36) 27, 11; July 1996

(Notice 38) 31, 29; August 1996,

(Notice 43) 36, 7; September

1996 (Notice 45) 39, 7

Nondiscrimination and coverage,

rollover (RR 48) 40, 4

Participant consent, significant detriment (RR 47) 40, 7

Exempt organizations:

Group letter exemption (RP 40) 32, 8

Private inurement expressly prohibited

(Notice 47) 39, 8

Information returns, copies to the

public and increases to certain penalties (Notice 48) 39, 8

Forms:

Paper substitutes, Forms 1096, 1098,

1099 series, 5498, and W–2G (RP

42) 32, 14

Substitute printed, computer-prepared,

and computer-generated tax forms

and schedules (RP 48) 39, 10

Income:

Controlled foreign corporation, partnership, subpart F income (Notice

39) 32, 8

Inflation adjustment factor for 1996

(Notice 41) 35, 6

Insurance companies:

Differential earnings rate (RR 42) 35,

Loss reserves, discounting unpaid

losses (RP 44) 35, 7

Discounting estimated salvage recoverable (RP 45) 35, 12

Interest:

Investment:

Federal short-term, mid-term, and

long-term rates, July 1996 (RR

34) 28, 4; August 1996 (RR 37)

32, 4; September 1996 (RR 43)

36, 4

Rates, underpayments and overpayments beginning October 1, 1996

(RR 44) 38, 4

Inventories:

LIFO:

Price indexes, department stores,

May 1996 (RR 36) 30, 6; June

1996 (RR 39) 34, 4

INCOME TAX—Continued

Inventories—Continued

LIFO—Continued

Price indexes, department stores,

July 1996 (RR 46) 39, 5

Low income housing credit:

Bond factor amounts, April–June

1996 (RR 33) 27, 4

FEMA (RR 35) 31, 4

Marginal production rates for 1996 (Notice 42) 35, 6

Omnibus Consolidated Recissions and

Appropriations Act of 1996 (PL 104–

134) 38, 7

Pooled income fund; community trust;

maintenance requirement (RR 38) 33,

Proposed regulations:

26 CFR 1.61–8(b), revised; 1.451–

1(g), added; 1.467–1, amended;

1.467–4, amended; 1.467–0 through

–8, added; rental agreements (IA–

292–84) 28, 38

26 CFR 1.61–12(c), 1.163–7(c),

1.171–1—1.171–4, 1.1016–5(b), revised; 1.163–13, 1.171–5, added;

1.1016–9, removed; amortizable

bond premium (FI–48–95) 31, 36

26 CFR 1.147–5(d)(6)(iv)—(viii) and

intermediary sections; 1.148–

5(e)(2)(iv), added; arbitrage restrictions on tax-exempt bonds (FI–28–

96) 31, 33

26 CFR 1.166–3(a)(3), added; bad

debts modifications and dealer assignments of notional principal

contracts (FI–59–94) 30, 23

26 CFR 1.280B–1, added; structure,

definition (PS–39–93) 34, 27

26 CFR 1.367(e)–1, 1.6038B–1(b)(2)(i); section 355 distributions of

stock and securities by domestic

corporations to foreign persons

(REG–209827–96) 37, 19

26 CFR 1.382–5, –8, added; 1.382–

2(a)(1)(iv), revised; consolidated returns, short taxable years for controlled groups (CO–26–96) 31, 31

26 CFR 1.475(b)–1, –2, –4,

1.475(c)–1, –2, 1.475(e)–1, revised;

mark-to-market equity interests in

related parties and dealer-customer

relationship (FI–32–95) 34, 21

26 CFR 1.861–8(e)(7)(iii), 1.865–1,

–2, 1.904–4(c)(2)(ii)(A) and (B),

added; 1.904–0, amended; stock

disposition loss allocation (INTL–

4–95) 36, 8

Proposed regulations—Continued

26 CFR 1.1059(e)–1, added; extraordinary dividends; distributions to

corporate shareholders (CO–9–96)

34, 20

26 CFR 1.1202–0, –2, added; qualified small business stock (IA–26–

94) 30, 24

26 CFR 1.1502–15, –21, –23, added;

consolidated returns, limitations on

the use of certain losses and deductions (CO–24–96) 30, 22

26 CFR 1.1502–90T—1.1502–99T

and intermediary sections, added;

consolidated group, net operating

loss carryforwards and built-in

losses and credits following ownership change, limitation (CO–25–96)

31, 30

26 CFR 301.9100–1T—301.9100–3T

and intermediary sections, added;

extensions of time to make elections (IA–29–96) 33, 14

Recommendation letters for nonsuit

settlements (Del. Order 155, Rev. 4)

40, 9

Refund claims; Tax Court; return not

filed (Ct.D. 2058) 34, 13

Regulated investment companies, preferential dividends (RP 47) 39, 10

Regulations:

26 CFR 1.110–3, added; debt instruments modifications (TD 8675) 29,

26 CFR 1.163–7(a), added; 1.456–4,

amended; 1.483–2T, removed;

1.483–4, added; 1.1001–1, revised;

1.1012–1(g), revised; 1.1271–0(b),

amended; 1.1272–1(c)(7), added;

1.1274–2(g), revised; 1.1274–2(i)

and (j), added; 1.1275–2(g), (h), (i),

(j), added; 1.1275–2T, removed;

1.1275–4, added; 1.1275–5(a)(5),

(6), added; 1.1275–5(c)(1), (5), revised; 1.1275–6, added; debt instruments with original issue discount,

contingent payments, anti-abuse

rule (TD 8674) 28, 7

26 CFR 1.166–3T, 1.1001–4T, added;

bad debts modifications and dealer

assignments of notional principal

contracts (TD 8676) 30, 4

26 CFR 1.367(e)–0; 1.367(e)–1, removed; 1.367(e)–0T, –1T, added;

section 355 distributions of stock

and securities by domestic corporations to foreign persons (TD 8682)

37, 4

Regulations—Continued

26 CFR 1.382–5T, –8T, –2T(f)(1)(i)—

(iii) and intermediary sections,

added; 1.382–2, –2T, removed;

consolidated groups, short taxable

years for controlled groups (TD

8679) 31, 4

26 CFR 1.1394–0, –1, added; enterprise zone facility bonds (TD 8673)

27, 4

26 CFR 1.1502–0, –1, –2, –11, –21A,

–22A, –23A, –41A, revised;

1.1502–15, –21, redesignated,

1.1502–21T, –23T, –79A, added;

1.1502–79, amended; consolidated

returns, limitations on the use of

certain losses and deductions (TD

8677) 30, 7

26 CFR 1.1502–90T—–99T and intermediary sections, added; consolidated groups, net operating loss

carryforwards and built-in losses

and credits following ownership

change, limitations (TD 8678) 31,

26 CFR 301.6355–1, amended; sale

of seized property (GL–7–96) 33,

26 CFR 301.7503–1, amended; time

for performance of acts where last

day falls on Saturday, Sunday, or

legal holiday (TD 8681) 37, 17

26 CFR 301.9100–1T—301.9100–3T

and intermediary sections, added;

extentions of time to make elections (TD 8680) 33, 5

Returns:

Magnetic media reporting, Forms

1098, 1099, 5498, and W–2G (RP

36) 27, 11

Section 355 de minimis limitation (RP

43) 35, 6

Section 355 No Rule (RP 39) 33, 11

Tax benefits for individuals performing

services in certain hazardous duty

areas (PL 104–117) 34, 19

Tax conventions:

Fiji 40, 8

Russia 36, 6

Tax-exempt bonds; arbitrage (RR 41)

32, 9

Tax treatment of partnership items correction (Notice 44) 36, 7

Taxpayer Bill of Rights 2 (PL 104–168)

38, 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.