# Bulletin No. 1996–41

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## Record

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- **Document type:** Agency decision

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Bulletin No. 1996–41
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.

2

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.

3

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

4

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.

5

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).

6

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.

7

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
at
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
Register (60 FR 49199). The final regulations provide guidance for complying
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).

8

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

9

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.
(c) The provisions of paragraph (a) of
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.
(c) Based upon such a letter, absent facts to the
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.
(c) As support for these certifications, Employee A provides the plan administrator of Plan
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.
(c) As support for these certifications, in addition to the two statements from Plan O described
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

10

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,
PA
Jesus Cares Ministry Inc., Perth Amboy,
NJ
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,
NJ
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,
FL
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,
NC
Neighborhood Preservation Association
Inc., Bridgeton, NJ
Network for the Enhancement of
Self-esteem Inc., Fort Washington,
MD
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,
GA
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,
SC
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,
NC
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

11

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,
TN
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,
NJ
Printiss County Mississippi Law
Enforcement Association, Booneville,
MS
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,
NC
Rural Justice Project, Pembroke, NC

1996–41

I.R.B.

Saint Raphaels Residence Inc., Resaca,
GA
Save Inc., Concord, NC
Save Our Village Inc., Ocracoke, NC
Save the Pascagoula Inc., Moss Point,
MS
S C L C-Womens Organizational
Movement for Equality Now, Atlanta,
GA
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,
LA
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,
AL
Sweet Auburn Merchants & Professional
Association Inc., Atlanta, GA
Synergists Inc., Atlanta, GA
Taylor Foundation Inc., Baton Rouge,
LA
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,
CA
Tompey Incorporated, Birmingham, AL
Town and Country Garden Club of
Valdosta Inc., Valdosta, GA
Traid Jazz Society Inc., Winston Salem,
NC
Treutlen Project H O P E Inc., Soperton,
GA
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,
LA
United Gymnastics Community Inc.,
Lilburn, GA
United Way of Decatur Inc., Decatur,
AR
Vida Verde Inc., Miami, FL
Videoscopic Surgical Society Inc.,
Tucker, GA
Vision Outreach Ministries Inc.,
Milledgeville, GA

12

Visual Arts Foundation, Nashville, TN
Voice From the Deep Inc., New Orleans,
LA
Volunteer Center of Hot Springs and
Garland County, Inc., Hot Springs,
AR
Volunteer Scientific Research Team Inc.,
Cape Coral, FL
Waccanaw Housing Inc., Myrtle Beach,
SC
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,
TN
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

13

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
CPA
CPA
Attorney
CPA
CPA
Attorney
CPA
CPA
CPA
CPA
CPA
Enrolled Agent
CPA
CPA
CPA
CPA
Attorney
CPA
CPA
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 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

14

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
CPA
Attorney
CPA
CPA
Attorney
Attorney
Attorney
CPA
Attorney
Attorney
CPA
Attorney
Attorney
Attorney
CPA

Indefinite from May 30, 1996
Indefinite from June 4, 1996
Indefinite from July 1, 1996
Indefinite from July 10, 1996
Indefinite from July 10, 1996
Indefinite from August 1, 1996
Indefinite from August 1, 1996
Indefinite from August 1, 1996
Indefinite from August 1, 1996
Indefinite from August 1, 1996
Indefinite from August 1, 1996
Indefinite from August 21, 1996
Indefinite from August 27, 1996
Indefinite from August 27, 1996
Indefinite from August 27, 1996
Indefinite from August 27, 1996

15

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.

16

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
1

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.

17

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

1

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.

18

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:
RR
Revenue Ruling
RP
Revenue Procedure
TD
Treasury Decision
CD
Court Decision
PL
Public Law
EO
Executive Order
DO
Delegation Order
TDO
Treasury Department Order
TC
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

19

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,
4
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

INCOME TAX—Continued

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,
4
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,
5
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,
11
26 CFR 301.6355–1, amended; sale
of seized property (GL–7–96) 33,
13
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

20

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Source: Frix Law Library, https://www.frixlaw.com/law-library/documents/agency%3Airs%3A9d208427c3d28ed7. Public record. Not legal advice.