Bulletin No. 1996–50

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Text

December 9, 1996

HIGHLIGHTS

OF THIS ISSUE

These synopses are intended only as aids to the reader in

identifying the subject matter covered. They may not be relied

upon as authoritative interpretations.

INCOME TAX

Rev. Rul. 96–57, page 5.

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

December 1996.

Rev. Rul. 96–58, page 4.

Fringe benefits aircraft valuation formula. For purposes of section 1.61–21(g) of the Regulations, relating

to the rule for valuing non-commercial flights on

employer-provided aircraft, the Standard Industry Fare

Level (SIFL), cents-per-mile rates and terminal charges in

effect for 1996, are set forth. Rev. Rul. 96–25 modified.

Rev. Rul. 96–59, page 4.

Low-income housing credit; satisfactory bond; ‘‘bond

factor’’ amounts for the period October through

December 1996. This ruling announces the monthly

bond factor amounts to be used by taxpayers who dispose of qualified low-income buildings or interests therein during the period October through December 1996.

EMPLOYEE PLANS

Rev. Proc. 96–55, page 10.

Model amendment; Rev. Rul. 94–76. This procedure

provides a model amendment for certain sponsors of

profit-sharing and stock bonus plans to amend their

plans to reflect the requirements of Rev. Rul. 94–76. An

extension to June 30, 1997, is given for affected plans

to make the necessary amendment.

ESTATE TAX

Rev. Proc. 96–54, page 9.

Sample paragraphs to be used to satisfy governing

instrument requirements contained in sections

Finding Lists begin on page 16.

Announcement of Disbarments and Suspensions begins on page 13.

20.2056A–2(d)(1)(i) and (d)(1)(ii) of the Estate Tax

Regulations. The Service will recognize a trust as

meeting the requirements of sections 20.2056A–

2(d)(1)(i) and (d)(1)(ii) if the trust instrument contains

language that is the same in all material respects as the

paragraphs provided in this revenue procedure.

GIFT TAX

Rev. Rul. 96–56, page 7.

If certain conditions are satisfied, the delivery of a

check to a noncharitable donee will be deemed to be

complete for federal gift and estate tax purposes when

the check is deposited, cashed against available funds

of the donee, or presented for payment in the calendar

year for which favorable gift tax treatment is sought.

Rev. Rul. 67–396 modified.

TAX CONVENTIONS

Page 8.

The bilateral agreements between the United States and

Jordan, providing for the reciprocal tax exemption of

income from the international operation of ships and/or

aircraft, are set forth.

ADMINISTRATIVE

Announcement 96–126, page 12.

A ZIP code change is given for the Information Reporting

Program at the Martinsburg Computing Center.

Announcement 96–127, page 12.

Task Force for Africa/Los Angeles Relations, Pasadena,

CA, no longer qualifies as an organization to which

contributions are deductible under section 170 of the

Code.

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 December 1996. See Rev. Rul. 96–57,

page 5.

Low-income housing credit; satisfactory bond; ‘‘bond factor’’ amounts

for the period October through December 1996. This ruling announces the

monthly bond factor amounts to be used

by taxpayers who dispose of qualified

low-income buildings or interests therein

during the period October through December 1996.

by the Secretary under § 42(j)(6) of the

Internal Revenue Code. It further announced that the Secretary would publish in the Internal Revenue Bulletin a

table of ‘‘bond factor’’ amounts for

dispositions occurring during each calendar month.

This revenue ruling provides in Table

1 the bond factor amounts for calculating the amount of bond considered

satisfactory under § 42(j)(6) for dispositions of qualified low-income buildings

or interests therein during the period

October through December 1996.

Rev. Rul. 96–59

In Rev. Rul. 90–60, 1990–2 C.B. 3,

the Internal Revenue Service provided

guidance to taxpayers concerning the

general methodology used by the Treasury Department in computing the bond

factor amounts used in calculating the

amount of bond considered satisfactory

Table 1

Rev. Rul. 96–59

Monthly Bond Factor Amounts for Dispositions Expressed

As a Percentage of Total Credits

Calendar Year Building Placed in Service

or, if Section 42(f)(1) Election Was Made,

the Succeeding Calendar Year

Month of

Disposition

1987

1988

1989

1990

1991

1992

1993

1994

1995

1996

Oct. ’96

Nov. ’96

Dec. ’96

80.39

80.17

79.96

82.78

82.56

82.35

85.39

85.16

84.95

88.44

88.21

87.99

92.03

91.80

91.57

96.15

95.90

95.67

100.41

100.16

99.92

104.49

104.25

104.02

108.44

108.24

108.06

112.52

For a list of bond factor amounts

applicable to dispositions occurring during other calendar years, see the following revenue rulings: Rev. Rul. 90–60,

1990–2 C.B. 3, for dispositions occurring during calendar years 1987, 1988,

and 1989; Rev. Rul. 90–88, 1990–2 C.B.

7, for dispositions occurring during calendar year 1990; Rev. Rul. 91–67,

1991–2 C.B. 13, for dispositions occurring during calendar year 1991; Rev.

Rul. 92–101, 1992–2 C.B. 9, for dispositions occurring during calendar year

1992; Rev. Rul 93–83, 1993–2 C.B. 6,

for dispositions occurring during calendar year 1993; Rev. Rul. 94–71, 1994–2

C.B. 4, for dispositions occurring during

calendar year 1994; Rev. Rul. 95–83,

1995–2 C.B. 8, for dispositions occurring during calendar year 1995; Rev.

Rul. 96–16, 1996–11 I.R.B. 4, for dispositions occurring during the period January through March 1996; Rev. Rul.

96–33, 1996–27 I.R.B. 4, for dispositions occurring during the period April

through June 1996; and Rev. Rul. 96–

45, 1996–39 I.R.B. 5, for dispositions

occurring during the period July through

September 1996.

DRAFTING INFORMATION

The principal author of this revenue

ruling is Jack Malgeri of the Office of

Assistant Chief Counsel (Passthroughs

and Special Industries). For further information regarding this revenue ruling,

contact Mr. Malgeri at (202) 622–3040

(not a toll-free call).

Section 61.—Gross Income Defined

26 CFR 1.61–21: Taxation of fringe benefits.

Fringe benefits aircraft valuation

formula. For purposes of section 1.61–

21(g) of the regulations, relating to the

rule for valuing non-commercial flights

on employer-provided aircraft, the Standard Industry Fare Level (SIFL), centsper-mile rates and terminal charges in

effect for 1996 are set forth. Rev. Rul.

96–25 modified.

Rev. Rul. 96–58

For purposes of the taxation of fringe

benefits under section 61 of the Internal

Revenue Code, section 1.61–21(g) of

the Income Tax Regulations provides a

rule for valuing noncommercial flights

on employer-provided aircraft. Section

1.61–21(g)(5) provides an aircraft valuation formula to determine the value of

such flights. The value of a flight is

determined under the base aircraft valuation formula (also known as the Standard Industry Fare Level formula or

SIFL) by multiplying the SIFL centsper-mile rates applicable for the period

during which the flight was taken by the

appropriate aircraft multiple provided in

section 1.61–21(g)(7) and then adding

the applicable terminal charge. The SIFL

cents-per-mile rates in the formula and

the terminal charge are calculated by the

Department of Transportation and are

reviewed semi-annually.

The following charts sets forth the

terminal charges and SIFL mileage

rates:

Period During Which the Flight Was Taken

7/1/96–12/31/96

Terminal Charge

$31.61

SIFL Mileage Rates

Up to 500 miles = $.1729 per mile

501–1500 miles = $.1318 per mile

Over 1500 miles = $.1267 per mile

DRAFTING INFORMATION

The principal author of this revenue

ruling is Felicia A. Daniels of the Office

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

this revenue ruling contact Ms. Daniels

on (202) 622–6050 (not a toll-free call).

Section 280G.—Golden Parachute

Payments

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

rates are set forth for the month of December

1996. See Rev. Rul. 96–57, 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 December 1996. See Rev. Rul.

96–57, this page.

Section 412.—Minimum Funding

Standards

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

month of December 1996. See Rev. Rul. 96–57,

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 December 1996. See Rev. Rul. 96–57,

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 December 1996. See Rev. Rul. 96–57,

this page.

Section 483.—Interest on Certain

Deferred Payments

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

month of December 1996. See Rev. Rul. 96–57,

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 December 1996. See Rev. Rul. 96–57,

this page.

Section 846.—Discounted Unpaid

Losses Defined

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

month of December 1996. See Rev. Rul. 96–57,

this page.

Section 1274.—Determination of

Issue Price in the Case of Certain

Debt Instruments Issued for

Property

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 December 1996.

Rev. Rul. 96–57

This revenue ruling provides various

prescribed rates for federal income tax

purposes for December 1996 (the current month.) Table 1 contains the shortterm, 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 low-income

housing credit described in section

42(b)(2) for buildings placed in service

during the current month. 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. Finally, Table

6 contains the 1997 interest rate for

sections 846 and 807.

(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,

REV. RUL. 96–57 TABLE 1

Applicable Federal Rates (AFR) for December 1996

Period for Compounding

Annual

Semiannual

Quarterly

Monthly

5.75%

6.34%

6.92%

7.51%

5.67%

6.24%

6.80%

7.37%

5.63%

6.19%

6.74%

7.30%

5.60%

6.16%

6.71%

7.26%

Short-Term

AFR

110% AFR

120% AFR

130% AFR

REV. RUL. 96–57 TABLE 1—Continued

Applicable Federal Rates (AFR) for December 1996

Period for Compounding

Annual

Semiannual

Quarterly

Monthly

6.31%

6.95%

7.59%

8.23%

9.54%

11.17%

6.21%

6.83%

7.45%

8.07%

9.32%

10.87%

6.16%

6.77%

7.38%

7.99%

9.21%

10.73%

6.13%

6.73%

7.34%

7.94%

9.14%

10.63%

6.77%

7.46%

8.15%

8.85%

6.66%

7.33%

7.99%

8.66%

6.61%

7.26%

7.91%

8.57%

6.57%

7.22%

7.86%

8.51%

Mid-Term

AFR

110% AFR

120% AFR

130% AFR

150% AFR

175% AFR

Long-Term

AFR

110% AFR

120% AFR

130% AFR

REV. RUL. 96–57 TABLE 2

Adjusted AFR for December 1996

Period for Compounding

Annual

Semiannual

Quarterly

Monthly

Short-term

adjusted AFR

3.83%

3.79%

3.77%

3.76%

Mid-term

adjusted AFR

4.58%

4.53%

4.50%

4.49%

Long-term

adjusted AFR

5.48%

5.41%

5.37%

5.35%

REV. RUL. 96–57 TABLE 3

Rates Under Section 382 for December 1996

Adjusted federal long-term rate for the current month

5.48%

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)

5.64%

REV. RUL. 96–57 TABLE 4

Appropriate Percentages Under Section 42(b)(2) for December 1996

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

8.54%

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

3.66%

REV. RUL. 96–57 TABLE 5

Rate Under Section 7520 for December 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

7.6%

REV. RUL. 96–57 TABLE 6

Rates Under Sections 846 and 807

Applicable rate of interest for 1997 for purposes of sections 846 and 807

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 December 1996. See Rev. Rul. 96–57,

page 5.

Section 2031.—Definition of Gross

Estate

26 CFR 20.2031–5: Valuation of cash on hand or

on deposit.

Rev. Rul. 67–396 is modified to provide that, if

certain conditions are satisfied, the delivery of a

check to a noncharitable donee will be deemed to

be complete for federal gift and estate tax purposes when the check is deposited, cashed against

available funds of the donee, or presented for

payment in the calendar year for which favorable

gift tax treatment is sought. See Rev. Rul. 96–56,

this page.

Section 2056A.—Qualified

Domestic Trust

26 CFR 20.2056A–2(d)(1): Security and other

arrangements for payment of estate tax imposed

under section 2056A(b)(1).

Sample paragraphs are provided that may be

used to satisfy the governing instrument requirements contained in §§ 20.2056A–2(d)(1)(i) and

(d)(1)(ii) of the Estate Tax Regulations for a

qualified domestic trust (QDOT) as described in

§ 2056A of the Internal Revenue Code. See Rev.

Proc. 96–54, page 9.

Section 2511.—Transfers in

General

26 CFR 25.2511–2: Cessation of donor’s dominion

and control.

(Also § 2031; 20.2031–5.)

If certain conditions are satisfied, the

delivery of a check to a noncharitable

donee will be deemed to be complete

for federal gift and estate tax purposes

when the check is deposited, cashed

against available funds of the donee, or

presented for payment in the calendar

year for which favorable gift tax treatment is sought. Rev. Rul. 67–396 modified.

Rev. Rul. 96–56

In view of the Fourth Circuit’s decision in Metzger v. Commissioner, 38

F.3d 118 (4th Cir. 1994) the Internal

Revenue Service has reconsidered the

rationale for the holding in Situation 1

of Rev. Rul. 67–396, 1967–2 C.B. 351.

In Situation 1, the donor transferred a

gift check on December 25 to a

noncharitable donee, but the donee held

the check until January 2 of the following year when it was cashed by the

drawee bank. Rev. Rul. 67–396 concludes that the gift was not complete for

federal gift tax purposes until the check

was paid by the drawee bank on January

2, because prior to the check’s payment,

certification, acceptance by the drawee,

or negotiation, the donor had not relinquished dominion and control over the

funds. Prior to the occurrence of one of

these events, the donor could have

stopped payment and revoked the gift.

Metzger holds that if a check is

delivered to a noncharitable donee, for

federal gift tax purposes, completion of

the gift relates back to the date the

check was deposited by the donee, provided the check is paid by the drawee

bank while the donor is alive and: (1)

the donor intended to make a gift; (2)

delivery of the check was unconditional;

and (3) the donee presented the check

for payment in the year for which

completed gift treatment is sought and

within a reasonable time of issuance.

The Service will follow the Metzger

decision.

HOLDING

Rev. Rul. 67–396 is modified to provide that the delivery of a check to a

noncharitable donee will be deemed to

be a completed gift for federal gift and

estate tax purposes on the earlier of (i)

the date on which the donor has so

parted with dominion and control under

local law as to leave in the donor no

power to change its disposition, or (ii)

6.33%

the date on which the donee deposits the

check (or cashes the check against available funds of the donee) or presents the

check for payment, if it is established

that: (1) the check was paid by the

drawee bank when first presented to the

drawee bank for payment; (2) the donor

was alive when the check was paid by

the drawee bank; (3) the donor intended

to make a gift; (4) delivery of the check

by the donor was unconditional; and (5)

the check was deposited, cashed, or

presented in the calendar year for which

completed gift treatment is sought and

within a reasonable time of issuance.

The result in Situation 1 of Rev. Rul.

67–396 remains the same for two reasons: the check was not delivered unconditionally (the donor requested that

the donee not deposit or cash the check

for a few days) and the check was not

presented for payment in the same calendar year for which completed gift

treatment was sought.

EFFECT ON OTHER DOCUMENTS

Rev. Rul. 67–396 is modified.

DRAFTING INFORMATION

The principal author of this revenue

ruling is Lane Damazo of the Office of

Assistant Chief Counsel (Passthroughs

and Special Industries). For further information regarding this revenue ruling

contact Lane Damazo (202) 622–3090

(not a toll-free call).

Section 7520.—Valuation Tables

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

month of December 1996. See Rev. Rul. 96–57,

page 5.

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 December 1996. See Rev. Rul. 96–57,

page 5.

Part II. Treaties and Tax Legislation

Subpart A.—Tax Conventions

JORDON

EMBASSY OF

THE UNITED STATES OF AMERICA

AMMAN, JORDAN

APRIL 7, 1988

Note No. 078

The Embassy of the United States of

America presents its compliments to the

Ministry of Foreign Affairs of Jordan

and has the honor to propose that the

two governments conclude an agreement

to exempt from income tax, on a reciprocal basis, income derived by residents

of the other country from the international operation of ships and aircraft.

The terms of the agreement are as

follows:

• The Government of the United

States of America, in accordance with

Sections 872(b) and 883 of the Internal

Revenue Code, agrees to exempt from

tax gross income derived from the international operation of ships or aircraft by

individuals who are residents of Jordan

(other than U.S. citizens) and corporations organized in Jordan. This exemption is granted on the basis of equivalent

exemptions granted by Jordan to citizens

of the United States (who are not residents of Jordan) and to corporations

organized in the United States (which

are not subject to tax by Jordan on the

basis of residence).

• In the case of a corporation, the

exemption shall apply only if the corporation meets either of the following

conditions:

(1) More than 50 percent of the value

of the corporation’s stock is owned,

directly or indirectly, by individuals who

are residents of Jordan or of another

country which grants a reciprocal exemption to U.S. citizens and corporations; or

(2) The corporation’s stock is primarily and regularly traded on an established securities market in Jordan, or is

wholly owned by a corporation whose

stock is so traded and which is also

organized in Jordan.

For purposes of subparagraph 1, the

Government of Jordan and its wholly

owned public corporations will be

treated as an individual resident of Jordan. For purposes of the exemption

from U.S. tax, subparagraph (1) will be

considered to be satisfied if the corporation is a ‘‘controlled foreign corporation’’ under the Internal Revenue Code.

• Gross income includes all income

derived from the international operation

of ships or aircraft on a full (time or

voyage) basis and income from the

rental of containers and related equipment which is incidental to the international operation of ships or aircraft. It

also includes income from the rental on

a bareboat basis of ships and aircraft

used for international transport.

• The Embassy of the United States

of America considers that this Note,

together with the Ministry’s reply Note

confirming that the Government of Jordan agrees to these terms, constitutes an

agreement amending the agreement of

April 17, 1973 and June 20, 1974.1 This

agreement shall enter into force on the

date of the Ministry’s reply Note and

shall have effect with respect to taxable

years beginning on or after January 1,

1987.

TIAS 8002; 26 UST 16.

• Either government may terminate

this agreement by giving written notice

of termination through diplomatic channels.

• The Embassy of the United States

of America takes this opportunity to

renew to the Ministry of Foreign Affairs

of Jordan the assurances of its highest

consideration.

HASHEMITE KINGDOM OF

JORDAN

MINISTRY OF

FOREIGN AFFAIRS

APRIL 7, 1988

No. 490

The Ministry of Foreign Affairs of the

Hashemite Kingdom of Jordan present

their compliments to the Embassy of the

United States of America and have the

honour to acknowledge receipt of their

Note No. 078 dated April 7, 1988 which

reads as follows:

[For text of the U.S. note, see above.]

The Ministry have the further honour

to inform the distinguished Embassy

that the foregoing proposal is acceptable

to the Government of the Hashemite

Kingdom of Jordan who therefore agree

that the Embassy’s note together with

this reply shall constitute an agreement

between the two governments which

shall amend the agreement of April 17,

1973 and June 20, 1974 and shall enter

into force on the date of this reply.

The Ministry of Foreign Affairs of the

Hashemite Kingdom of Jordan avail

themselves of this opportunity to renew

to the Embassy of the United States of

America the assurances of their highest

consideration.

Part III. Administrative, Procedural, and Miscellaneous

26 CFR 2056A: Qualified domestic trust.

Rev. Proc. 96–54

SECTION 1. PURPOSE

This revenue procedure provides

sample paragraphs that may be used to

satisfy the governing instrument requirements contained in §§ 20.2056A–

2(d)(1)(i) and (d)(1)(ii) of the Estate Tax

Regulations for a qualified domestic

trust (QDOT) as described in § 2056A(a) of the Internal Revenue Code.

SEC. 2. BACKGROUND

Section 2056A(a)(2) authorizes the

Internal Revenue Service to promulgate

regulations that will ensure the collection of the additional estate tax imposed

under § 2056A(b)(1)(A) and (B). Final

regulations were issued pursuant to this

authorization on December 9, 1996.

Under § 20.2056A–2(d)(1)(i), if the

fair market value of the assets passing

to the QDOT is in excess of $2 million,

either: (A) at least one Trustee must be

a United States bank described in

§ 581, or a U.S. Branch of a foreign

bank; (B) the trustee must furnish a

bond in favor of the Internal Revenue

Service in an amount equal to 65 percent of the fair market value of the trust

corpus; or (C) the trustee must furnish

an irrevocable letter of credit in an

amount equal to 65 percent of the fair

market value of the trust corpus. The

regulations provide detailed descriptions

of the required terms of the bond and

letter of credit and sample forms for

each.

Under § 20.2056A–2(d)(1)(i), the

QDOT may alternate among the arrangements provided in paragraphs

(d)(1)(i)(A), (B), and (C), provided that

at any given time at least one of the

arrangements is in effect.

Under § 20.2056A–2(d)(1)(ii), if the

fair market value of the QDOT assets is

$2 million or less, the QDOT must

provide that the trustee will either satisfy the requirements listed above, or

limit the fair market value of real property that is held by the trust and situated

outside the United States to 35 percent

of the value of the trust at the close of

the taxable year. A special look-through

rule applies for interests in corporations

or partnerships that own real property.

In addition, an executor may elect to

exclude up to $600,000 in value of a

principal residence passing to the QDOT

in determining if the $2 million threshold has been exceeded.

This revenue procedure contains

sample trust language that, if adopted in

the trust instrument, will be recognized

as meeting the requirements of

§ 20.2056A–2(d)(1)(i)(A), (B), and (C),

and (d)(1)(ii).

SEC. 3. SCOPE AND OBJECTIVE

The sample trust language contained

in section 4 of this revenue procedure

meets all of the requirements under

§ 20.2056A–2(d)(1)(i)(A), (B), and (C),

and (d)(1)(ii). If the trust instrument

expressly adopts language that is the

same in all material respects to the

sample paragraphs provided herein, and

otherwise meets the requirements of a

qualified

domestic

trust

under

§ 2056A(a) and § 20.2056A–2, the Service will recognize the trust as satisfying the applicable requirements of

§ 2056A(a) and the corresponding regulations.

SEC. 4. SAMPLE QUALIFIED

DOMESTIC TRUST LANGUAGE

THAT MAY BE USED TO SATISFY

THE ‘‘GOVERNING INSTRUMENT’’

REQUIREMENTS OF

§ 20.2056A–2(d)(1)(i) and (ii).

My trustee shall comply with the

requirements for security arrangements

for qualified domestic trusts as set forth

in Treas. Reg. § 20.2056A–2(d)(1)(i) or

(ii), summarized as follows:

(a) Trust in Excess of $2 Million. If

the fair market value of the assets

passing to the trust (determined without

reduction for any indebtedness thereon)

exceeds $2 million on the relevant valuation date, then my Trustee must at all

times during the term of the Trust either

satisfy the U.S. Bank as Trustee requirement (see Treas. Reg. § 20.2056A–2(d)(1)(i)(A)), or furnish a bond that satisfies the requirements of Treas. Reg.

§ 20.2056A– 2(d)(1)(i)(B), or furnish an

irrevocable letter of credit that satisfies

the requirements of Treas. Reg.

§ 20.2056A–2(d)(1)(i)(C), (hereinafter

referred to as the U.S. Bank, Bond, or

Letter of Credit Requirement). My

Trustee may alternate between any of

the security arrangements described in

the preceding sentence provided that, at

all times during the term of the trust,

one of the arrangements is operative.

If my Trustee elects to furnish a bond

or letter of credit as security, then in the

event the Internal Revenue Service

draws on the instrument in accordance

with its terms, neither my U.S. Trustee

nor any other person will seek a return

of any part of the remittance until after

April 15th of the calendar year following the year in which the bond or letter

of credit is drawn upon.

(b) Trust of $2 Million or Less. If the

fair market value of the assets passing

to the trust (determined without reduction for any indebtedness) is $2 million

or less on the relevant valuation date,

then my Trustee must comply with

either the U.S. Bank, Bond, or Letter of

Credit Requirement only if more than

35% of the fair market value of the trust

assets, determined annually on the last

day of the taxable year of the trust,

consists of real property located outside

the United States. For purposes of determining whether more than 35% of the

trust assets consist of foreign real property, Treas. Reg. § 20.2056A–2(d)(1)(ii)(B) applies.

market value of the trust assets exceeds

$2 million, my Trustee is authorized to

make the election under Treas. Reg.

§ 20.2056A–2(d)(1)(iv)(A) with respect

to real property used as my spouse’s

personal residence.

(d) Amount of Bond or Letter of

Credit. For purposes of determining the

amount of the bond or letter of credit,

my Trustee is authorized to make the

election under Treas. Reg. § 20.2056A–

2(d)(1)(iv)(B) with respect to real property used as my spouse’s personal residence.

(e) Annual Statements. My Trustee is

directed to file any annual statements

required under Treas Reg. § 20.2056A–

2(d)(3).

(f) General Conduct. Notwithstanding

anything contained herein to the contrary, my U.S. Trustee is hereby authorized to enter into alternative plans or

arrangements with the Internal Revenue

Service pursuant to Treas. Reg.

§ 20.2056A–2(d)(4) to assure collection

of the deferred estate tax, in lieu of the

provisions contained herein.

(g) References to Regulations. All

references to ‘‘Treas. Reg.’’ in this document shall be references to regulations

published under 26 CFR as in effect on

the date of execution of this document,

or, in the event that any such regulation

is amended or superseded thereafter, to

the regulation (or any successor regulation) as so amended.

(h) Dollar Values. The use of the

dollar sign ($) shall indicate amounts

stated in U.S. dollars.

SEC. 5. APPLICATION

The Service will recognize a trust as

meeting all of the requirements of

§ 20.2056A–2(d)(1)(i) and (ii) if the

trust contains language that is the same

in all material respects to the paragraphs

provided in section 4, and the trust

operates in a manner consistent with the

terms of the trust instrument.

SEC. 6. DRAFTING INFORMATION

The principal author of this revenue

procedure is Susan B. Hurwitz of the

Office of Assistant Chief Counsel

(Passthroughs and Special Industries).

For further information regarding this

revenue procedure, contact Ms. Hurwitz

at (202) 622–3090 (not a toll-free number).

SEC. 7. EFFECTIVE DATE

This revenue procedure is effective

for trusts for which qualified domestic

trust elections are made after December

9, 1996, the date of publication of this

revenue procedure in the Internal Revenue Bulletin.

26 CFR 601.201: Rulings and determination letters.

Rev. Proc. 96–55

SECTION 1. PURPOSE

.01 This revenue procedure provides

a model amendment for sponsors of

certain master and prototype (‘‘M&P’’),

regional prototype, volume submitter

specimen, and individually designed

profit-sharing or stock bonus plans in

order to assist these plan sponsors in

amending their plans to comply with

Rev. Rul. 94–76, 1994–2 C.B. 46.

.02 This revenue procedure also extends, until June 30, 1997, the time

period to adopt corrective plan amendments provided for in Rev. Rul. 94–76.

SECTION 2. BACKGROUND AND

GENERAL INFORMATION

.01 Section 401(a) of the Internal

Revenue Code provides that a trust

created or organized in the United States

and forming a part of a qualified stock

bonus, pension, or profit-sharing plan of

an employer constitutes a qualified trust

only if the various requirements set out

in § 401(a) are met.

.02 Section 1.401–1(b)(1)(i) of the

Income Tax Regulations provides the

definition of a pension plan for purposes

of § 401(a). This section provides, in

part, that a pension plan is a plan

established and maintained by an employer primarily to provide for the payment of definitely determinable benefits

to employees over a period of years,

usually for life, after retirement. This

section also provides that a pension plan

may provide for the payment of a

pension due to disability, and may also

provide for incidental death benefits.

.03 Rev. Rul. 56–693, 1956–2 C.B.

282, as modified by Rev. Rul. 60–323,

1960–2 C.B. 148, provides that, pursuant to the definition of a pension plan in

§ 1.401–1(b) of the regulations, a pension plan fails to meet the requirements

of § 401(a) if it permits an employee to

withdraw any part of the employee’s

accrued benefit (other than a benefit

attributable to voluntary employee contributions) prior to certain distributable

events; i.e., retirement, death, disability,

severance of employment, or termination

of the plan.

.04 Rev. Rul. 94–76 provides that, to

satisfy § 401(a), benefits attributable to

assets and liabilities transferred, within

the meaning of § 414(l), from a money

purchase pension plan to a profit-sharing

or stock bonus plan must remain subject

to the restrictions on distributions from

pension plans set forth in Rev. Rul.

56–693 based upon § 1.401–1(b) of the

regulations.

.05 Rev. Rul. 94–76 provides that, in

order to remain qualified under

§ 401(a), profit-sharing or stock bonus

plans that accept transfers of assets and

liabilities from money purchase pension

plans and permit distributions prior to

retirement, death, disability, severance of

employment, or termination of the plan,

must be amended to provide that on or

after a transfer of assets and liabilities

from a money purchase pension plan to

the profit-sharing or stock bonus plan,

the account balances (including the posttransfer earnings thereon) attributable to

the transferred assets and liabilities will

be distributed only on or after the

occurrence of one of these events on or

after which distributions are permitted

from a pension plan.

.06 Rev. Rul. 94–76 provides that

certain profit-sharing plans or stock bonus plans are permitted to be amended

to eliminate an optional form of benefit

provided for in the plan prior to December 12, 1994, solely with respect to

benefits attributable to assets and liabilities that are transferred (within the

meaning of § 414(l)) from a money

purchase pension plan (other than any

portion of those assets and liabilities

attributable to voluntary employee contributions), to the extent that the optional form permits distribution of those

benefits prior to the employee’s retirement, death, disability, or severance of

employment, and prior to plan termination. The plan amendment eliminating

the optional form of benefit must be

adopted by the last day of the first plan

year beginning on or after December 12,

1994, and must be made effective not

later than the first day of that plan year,

or, if later, 90 days after December 12,

1994.

.07 With respect to certain plans, employers are entitled to extended reliance

pursuant to Rev. Proc. 89–9, 1989–1

C.B. 780, Rev. Proc. 89–13, 1989–1

C.B. 801 (both as modified by Rev.

Proc. 93–9, 1993–1 C.B. 474), or Rev.

Proc. 93–39, 1993–2 C.B. 513 (relating

to master or prototype plans, regional

prototype plans, and individually designed plans). Except in certain limited

circumstances, plans that are entitled to

this extended reliance generally are not

required to be amended until 1999 to

comply with administrative guidance of

general applicability (e.g., revenue rulings). Accordingly, for a profit-sharing

or stock bonus plan entitled to extended

reliance, if no transfer of assets and

liabilities to the plan from a money

purchase pension plan occurred or occurs after the date of the plan’s most

recent determination letter and prior to

the date that the amendment required by

Rev. Rul. 94–76 is adopted and if the

amendment is made effective within

certain time limits specified in Rev. Rul.

94–76, there is an extended period for

amending the plan.

SECTION 3. MODEL AMENDMENT

.01 All plans—Sponsors described in

subsection .02 may amend their plans by

adopting the model language in the

appendix to this revenue procedure on a

word-for-word basis, in accordance with

the instructions in this revenue procedure. If a sponsor to whom the model

language is available pursuant to subsection .02 adopts the model language,

neither application to the Service nor a

user fee is required. The Service will

not issue new opinion, notification, advisory, or determination letters for plans

that are amended solely to add the

model language described in this section.

.02 The model language is available

only to sponsors of M&P, regional prototype, volume submitter specimen, and

individually designed plans (including

volume submitter plans) that 1) are

eligible for the relief from failure to be

qualified under § 401(a) provided in

Rev. Rul. 94–76 and 2) as of the date of

the adoption of the model amendment

have reliance on a favorable opinion,

notification, or determination letter that

takes into account the requirements of

the Tax Reform Act of 1986, Pub. L.

No. 99–514 (‘‘TRA ’86’’) under Rev.

Proc. 89–9, 1989–1 C.B. 780, as modified; Rev. Proc. 89–13, 1989–1 C.B.

801, as modified; Rev. Proc. 90–20,

1990–1 C.B. 495; Rev. Proc. 91–41,

1991–2 C.B. 697; Rev. Proc. 91–66,

1991–2 C.B. 870; Rev. Proc. 93–39,

1993–2 C.B. 513; or Rev. Proc. 96–6,

1996–1 I.R.B. 151. Condition 2) in the

preceding sentence does not apply to

plans 1) that (a) have received a favorable determination, opinion, or notification letter that considered TEFRA,

DEFRA, and REA, and (b) have been

submitted within the plan’s § 401(b)

remedial amendment period for a determination, opinion, or notification letter

that considers TRA ’86 (TRA ’86 remedial amendment period) but have not yet

received the letter or 2) for which the

TRA ’86 remedial amendment period

has not yet expired, such as adopters of

master and prototype plans, regional

prototype plans, and volume submitter

plans, described in section 3 of Rev.

Proc. 95–12, 1995–1 C.B. 508; governmental plans described in Announcement 95–48, 1995–23 I.R.B. 13; and

plans maintained by tax-exempt organizations, including non-electing church

plans, described in Announcement 95–

48.

.03 M&P, Regional Prototype and

Volume Submitter Plans—M&P, regional prototype and volume submitter

plan sponsors that use the model language must file Form 8837, Notice of

Adoption of Revenue Procedure Model

Amendments.

SECTION 4. EXTENSION OF TIME

TO ADOPT AMENDMENT

The time period for adopting a plan

amendment eliminating an optional form

of benefit pursuant to Rev. Rul. 94–76

is extended to June 30, 1997, for profitsharing or stock bonus plans that otherwise were required, under that revenue

ruling, to be amended to eliminate any

optional form of benefit before that date.

SECTION 5. RELIANCE

An employer entitled to rely on an

opinion, notification, or determination

letter will not lose reliance on the letter

merely because of this amendment.

Plans that are amended in accordance

with section 3 of this revenue procedure

will not cause the plan to lose its

otherwise applicable extended reliance

period under Rev. Procs. 89–9 and 89–

13, as modified by Rev. Proc. 93–9, or

section 13 of Rev. Proc. 93–39.

DRAFTING INFORMATION

The principal author of this revenue

procedure is Richard Wright of the

Employee Plans Division. For further

information regarding this revenue procedure, contact the Employee Plans Division’s telephone assistance service between 1:30 and 4:00 p.m., Eastern Time,

Monday through Thursday on (202)

622–6074/6075 or Mr. Wright at (202)

622–6214. (These telephone numbers

are not toll-free numbers.)

APPENDIX

MODEL LANGUAGE

(Note to Sponsor: The following

model amendment may be used to

amend a profit-sharing or stock bonus

plan to eliminate an optional form of

benefit provided for in the plan on or

before December 12, 1994, solely with

respect to benefits attributable to assets

and liabilities that have been transferred,

within the meaning of § 414(l), from a

money purchase pension plan (other

than any portion of those assets and

liabilities attributable to voluntary employee contributions) to the extent that

the optional form permits distribution of

those benefits prior to the employee’s

retirement, death, disability or severance

from employment, and prior to plan

termination.)

This amendment is effective

. (For plans,

other than those entitled to extended

reliance as described in Rev. Rul. 94–

76, insert a date not later than the first

day of the first plan year beginning on

or after December 12, 1994, or, if later,

90 days after December 12, 1994. For

plans entitled to extended reliance, see

Rev. Rul. 94–76 for the permissible

effective date.)

Notwithstanding any provision of this

plan to the contrary, to the extent that

any optional form of benefit under this

plan permits a distribution prior to the

employee’s retirement, death, disability,

or severance from employment, and

prior to plan termination, the optional

form of benefit is not available with

respect to benefits attributable to assets

(including the post-transfer earnings

thereon) and liabilities that are transferred, within the meaning of § 414(l)

of the Internal Revenue Code, to this

plan from a money purchase pension

plan qualified under § 401(a) of the

Internal Revenue Code (other than any

portion of those assets and liabilities

attributable to voluntary employee contributions).

Part IV. Items of General Interest

ZIP Code Change for Information

Reporting Program

Announcement 96–126

A ZIP Code change for the Information Reporting Program at the

Martinsburg Computing Center was effective as of November 12, 1996. The

new ZIP Code will apply only to the

Post Office Box 1359 address. Information returns filed magnetically, correspondence related to the Information

Reporting Program, applications, extension, and waiver requests should be

mailed to the following address:

IRS-Martinsburg Computing Center

Information Reporting Program

P. O. Box 1359, MS–360

Martinsburg, WV 25402–1359

It is important to make this change on

your mailing label as mail containing

incorrect address information will be

returned. The ZIP Code change will

appear in the next revisions of all

publications and forms related to information returns which include the P. O.

Box 1359 address.

1996–50

I.R.B.

Deletions From Cumulative List of

Organizations Contributions to

Which Are Deductible Under

Section 170 of the Code

Announcement 96–127

The name of an organization that no

longer qualifies as an organization described in section 170(c)(2) of the Internal Revenue Code of 1986 is listed

below.

Generally, the Service will not disallow deductions for contributions made

to a listed organization on or before the

date of announcement in the Internal

Revenue Bulletin that an organization

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

deduction for any contributions made

after an organization ceases to qualify

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

declaratory judgment under section 7428

and if the contributor (1) had knowledge

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

revocation was imminent, or (3) was

in part responsible for or was aware of

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

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

filed, contributions from individuals and

organizations described in section

170(c)(2) that are otherwise allowable will continue to be deductible.

Protection under section 7428(c) would

begin on December 9, 1996, and would

end on the date the court first determines that the organization is not

described in section 170(c)(2) as more

particularly set forth in section

7428(c)(1). For individual contributors, the maximum deduction protected

is $1,000, with a husband and wife

treated as one contributor. This benefit is not extended to any individual

who was responsible, in whole or in

part, for the acts or omissions of the

organization that were the basis for

revocation.

Task Force for Africa/Los Angeles

Relations

Pasadena, CA

Announcement of the Disbarment, Suspension, or Consent to Voluntary

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

Enrolled Actuaries From Practice Before the Internal Revenue Service

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

institution or conclusion of a proceeding

for his disbarment or suspension from

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

from such practice. The Director of

Practice, in his discretion, may suspend

an attorney, certified public accountant,

enrolled agent, or enrolled actuary in

accordance with the consent offered.

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

enue Service matter from directly or

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

or suspended from practice before the

Internal Revenue Service.

To enable attorneys, certified public

accountants, enrolled agents, and enrolled actuaries to identify practitioners

under consent suspension from practice

before the Internal Revenue Service, the

Director of Practice will announce in the

Internal Revenue Bulletin the names and

addresses of practitioners who have

been suspended from such practice, their

designation as attorney, certified public

accountant, enrolled agent, or enrolled

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

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

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

many weeks as is practicable for each

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

suspended and will be consolidated and

published in the Cumulative Bulletin.

The following individuals have been

placed under consent suspension from

practice before the Internal Revenue

Service:

Name

Address

Designation

Date of Suspension

Sherman, Richard M.

Hunter, Lewis

Hisken, Donald

Byrne, Steven P.

Mulrey, Robert M.

Edwards, Ronald A.

Hart Jr., Charles E.

Willner, Peter D.

May, Gary

Josephson, Elliott

Capwill Jr., James A.

Hazel, John J.

Jacobs, Patrick

Lau, William

Franklin, Gene L.

Winterhalter, Charles L.

Cremer, Patricia L.

Gardner, Stephen A.

Masini, David

Cunningham, Michael

Smith, Robert

Crystal Lake, IL

Jacksonville, FL

Red Bluff, CA

Arcadia, CA

Milton, MA

Plymouth, MI

Wilmington, OH

Stowe, VT

Madison, WI

Northbrook, IL

Solon, OH

Ridgefield, CT

St. Paul, MN

Crete, IL

Lees Summit, MO

Cincinnati, OH

Roundup, MT

Dallas, TX

Wheat Ridge, CO

Lafayette, IN

Chicago, IL

CPA

Attorney

CPA

Attorney

CPA

Attorney

CPA

Enrolled Agent

CPA

Enrolled Agent

CPA

Attorney

CPA

October 18, 1996 to July 17, 1997

October 25, 1996 to January 24, 1997

November 1, 1996 to March 31, 1997

November 1, 1996 to January 31, 1997

November 1, 1996 to October 31, 1997

November 1, 1996 to April 30, 1998

November 1, 1996 to October 31, 1998

November 1, 1996 to April 30, 1997

November 1, 1996 to October 31, 1998

November 1, 1996 to February 28, 1997

November 1, 1996 to January 31, 1997

November 1, 1996 to December 31, 1996

November 1, 1996 to June 30, 1997

November 1, 1996 to January 31, 1997

November 1, 1996 to April 30, 1998

November 5, 1996 to May 4, 1997

November 7, 1996 to May 6, 1999

November 12, 1996 to November 11, 1997

November 12, 1996 to August 11, 1997

January 1, 1997 to December 31, 1997

Announcement of the Expedited Suspension of Attorneys, Certified Public

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

Internal Revenue Service

Under title 31 of the Code of Federal

Regulations, section 10.76, the Director

of Practice is authorized to immediately

suspend from practice before the Internal

Revenue Service any practitioner who,

within five years, from the date the

expedited proceeding is instituted, (1)

has had a license to practice as an

attorney, certified public accountant, or

actuary suspended or revoked for cause;

or (2) has been convicted of any crime

under title 26 of the United States Code

or, of a felony under title 18 of the

United States Code involving dishonesty

or breach of trust.

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

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

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

or suspended from practice before the

Internal Revenue Service.

To enable attorneys, certified public

accountants, enrolled agents, and enrolled actuaries to identify practitioners

under expedited suspension from practice before the Internal Revenue Service,

the Director of Practice will announce in

the Internal Revenue Bulletin the names

and addresses of practitioners who have

been suspended from such practice, their

designation as attorney, certified public

accountant, enrolled agent, or enrolled

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

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

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

many weeks as is practicable for each

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

suspended and will be consolidated and

published in the Cumulative Bulletin.

The following individuals have been

placed under suspension from practice

before the Internal Revenue Service by

virtue of the expedited proceeding provisions of the applicable regulations:

Name

Address

Designation

Date of Suspension

Pacchiana, Paul

Rosenberger, David H.

Gudes, Gerald

Donnelly, Richard S.

Burrows, William D.

Klausner, Julius

Glessner, Randy

Aspland, Frieda R.

Chappaqua, NY

Centerville, OH

W. Bloomfield, MI

Asheville, NC

Dallas, TX

Scarsdale, NY

Omak, WA

Greenville, SC

Attorney

Enrolled Agent

CPA

Attorney

CPA

Indefinite from October 9, 1996

Indefinite from October 21, 1996

Indefinite from October 22, 1996

Indefinite from November 13, 1996

Definition of Terms

Revenue rulings and revenue procedures

(hereinafter referred to as ‘‘rulings’’)

that have an effect on previous rulings

use the following defined terms to describe the effect:

Amplified describes a situation where

no change is being made in a prior

published position, but the prior position

is being extended to apply to a variation

of the fact situation set forth therein.

Thus, if an earlier ruling held that a

principle applied to A, and the new

ruling holds that the same principle also

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

Clarified is used in those instances

where the language in a prior ruling is

being made clear because the language

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

prior ruling is being changed.

Distinguished describes a situation

where a ruling mentions a previously

published ruling and points out an essential difference between them.

Modified is used where the substance

of a previously published position is

being changed. Thus, if a prior ruling

held that a principle applied to A but not

to B, and the new ruling holds that it

applies to both A and B, the prior ruling

Abbreviations

The following abbreviations in current use and

formerly used will appear in material published in

the Bulletin.

is modified because it corrects a published position. (Compare with amplified

and clarified, above).

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

used in a ruling that lists previously

published rulings that are obsoleted because of changes in law or regulations.

A ruling may also be obsoleted because

the substance has been included in regulations subsequently adopted.

Revoked describes situations where

the position in the previously published

ruling is not correct and the correct

position is being stated in the new

ruling.

Superseded describes a situation

where the new ruling does nothing more

than restate the substance and situation

of a previously published ruling (or

rulings). Thus, the term is used to

republish under the 1986 Code and

regulations the same position published

under the 1939 Code and regulations.

The term is also used when it is desired

to republish in a single ruling a series of

situations, names, etc., that were previously published over a period of time in

separate rulings. If the new ruling does

more than restate the substance of a

prior ruling, a combination of terms is

used. For example, modified and superseded describes a situation where the

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

continued without change in part and it

is desired to restate the valid portion of

the previously published ruling in a new

ruling that is self contained. In this case

the previously published ruling is first

modified and then, as modified, is superseded.

Supplemented is used in situations in

which a list, such as a list of the names

of countries, is published in a ruling and

that list is expanded by adding further

names in subsequent rulings. After the

original ruling has been supplemented

several times, a new ruling may be

published that includes the list in the

original ruling and the additions, and

supersedes all prior rulings in the series.

Suspended is used in rare situations to

show that the previous published rulings

will not be applied pending some future

action such as the issuance of new or

amended regulations, the outcome of

cases in litigation, or the outcome of a

Service study.

ER—Employer.

PR—Partner.

ERISA—Employee Retirement Income Security Act.

EX—Executor.

F—Fiduciary.

PRS—Partnership.

PTE—Prohibited Transaction Exemption.

Pub. L.—Public Law.

A—Individual.

Acq.—Acquiescence.

B—Individual.

BE—Beneficiary.

BK—Bank.

B.T.A.—Board of Tax Appeals.

C.—Individual.

C.B.—Cumulative Bulletin.

CFR—Code of Federal Regulations.

CI—City.

COOP—Cooperative.

Ct.D.—Court Decision.

CY—County.

D—Decedent.

DC—Dummy Corporation.

DE—Donee.

FC—Foreign Country.

FICA—Federal Insurance Contribution Act.

Del. Order—Delegation Order.

M—Minor.

DISC—Domestic International Sales Corporation.

Nonacq.—Nonacquiescence.

DR—Donor.

O—Organization.

E—Estate.

P—Parent Corporation.

X—Corporation.

EE—Employee.

PHC—Personal Holding Company.

Y—Corporation.

E.O.—Executive Order.

PO—Possession of the U.S.

Z—Corporation.

FISC—Foreign International Sales Company.

FPH—Foreign Personal Holding Company.

F.R.—Federal Register.

FUTA—Federal Unemployment Tax Act.

FX—Foreign Corporation.

G.C.M.—Chief Counsel’s Memorandum.

GE—Grantee.

GP—General Partner.

GR—Grantor.

IC—Insurance Company.

REIT—Real Estate Investment Trust.

Rev. Proc.—Revenue Procedure.

Rev. Rul.—Revenue Ruling.

S—Subsidiary.

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

Stat.—Statutes at Large.

T—Target Corporation.

T.C.—Tax Court.

T.D.—Treasury Decision.

TFE—Transferee.

I.R.B.—Internal Revenue Bulletin.

TFR—Transferor.

LE—Lessee.

T.I.R.—Technical Information Release.

LP—Limited Partner.

TP—Taxpayer.

LR—Lessor.

TR—Trust.

TT—Trustee.

U.S.C.—United States Code.

Numerical Finding List1

Court Decisions:

Railroad Retirement Quarterly Rate

Bulletins 1996–27 through 1996–49

2058, 1996–34 I.R.B. 13

2059, 1996–34 I.R.B. 10

2060, 1996–34 I.R.B. 5

1996–29 I.R.B. 14

Announcements:

96–61, 1996–27 I.R.B. 72

96–62, 1996–28 I.R.B. 55

96–63, 1996–29 I.R.B. 18

96–64, 1996–29 I.R.B. 18

96–65, 1996–29 I.R.B. 18

96–66, 1996–29 I.R.B. 19

96–67, 1996–30 I.R.B. 27

96–68, 1996–31 I.R.B. 45

96–69, 1996–32 I.R.B. 38

96–70, 1996–32 I.R.B. 40

96–71, 1996–33 I.R.B. 16

96–72, 1996–33 I.R.B. 16

96–73, 1996–33 I.R.B. 18

96–74, 1996–33 I.R.B. 19

96–75, 1996–34 I.R.B. 29

96–76, 1996–34 I.R.B. 29

96–77, 1996–35 I.R.B. 15

96–78, 1996–35 I.R.B. 15

96–79, 1996–35 I.R.B. 15

96–80, 1996–35 I.R.B. 16

96–81, 1996–36 I.R.B. 13

96–82, 1996–36 I.R.B. 14

96–83, 1996–36 I.R.B. 14

96–84, 1996–36 I.R.B. 14

96–85, 1996–37 I.R.B. 20

96–86, 1996–37 I.R.B. 21

96–87, 1996–37 I.R.B. 21

96–88, 1996–38 I.R.B. 150

96–89, 1996–37 I.R.B. 22

96–90, 1996–37 I.R.B. 22

96–91, 1996–37 I.R.B. 23

96–92, 1996–38 I.R.B. 151

96–93, 1996–38 I.R.B. 151

96–94, 1996–38 I.R.B. 153

96–96, 1996–39 I.R.B. 41

96–97, 1996–39 I.R.B. 41

96–98, 1996–39 I.R.B. 42

96–99, 1996–39 I.R.B. 42

96–100, 1996–40 I.R.B. 10

96–101, 1996–40 I.R.B. 10

96–102, 1996–40 I.R.B. 11

96–103, 1996–40 I.R.B. 12

96–104, 1996–41 I.R.B. 10

96–105, 1996–42 I.R.B. 19

96–106, 1996–42 I.R.B. 23

96–107, 1996–42 I.R.B. 27

96–108, 1996–44 I.R.B. 15

96–109, 1996–43 I.R.B. 76

96–110, 1996–43 I.R.B. 77

96–111, 1996–44 I.R.B. 16

96–112, 1996–45 I.R.B. 7

96–113, 1996–44 I.R.B. 18

96–114, 1996–45 I.R.B. 7

96–115, 1996–45 I.R.B. 9

96–116, 1996–46 I.R.B. 12

96–117, 1996–46 I.R.B. 12

96–118, 1996–46 I.R.B. 12

96–119, 1996–46 I.R.B. 13

96–120, 1996–47 I.R.B. 12

96–121, 1996–47 I.R.B. 12

96–122, 1996–47 I.R.B. 13

96–124, 1996–49 I.R.B. 22

96–125, 1996–48 I.R.B. 21

Delegation Orders:

155 (Rev. 4), 1996–40 I.R.B. 9

Notices:

96–36, 1996–27 I.R.B. 11

96–37, 1996–31 I.R.B. 29

96–38, 1996–31 I.R.B. 29

96–39, 1996–32 I.R.B. 8

96–40, 1996–33 I.R.B. 11

96–41, 1996–35 I.R.B. 6

96–42, 1996–35 I.R.B. 6

96–43, 1996–36 I.R.B. 7

96–44, 1996–36 I.R.B. 7

96–45, 1996–39 I.R.B. 7

96–46, 1996–39 I.R.B. 7

96–47, 1996–39 I.R.B. 8

96–48, 1996–39 I.R.B. 8

96–49, 1996–41 I.R.B. 6

96–50, 1996–41 I.R.B. 6

96–51, 1996–42 I.R.B. 6

96–52, 1996–42 I.R.B. 8

96–54, 1996–44 I.R.B. 13

96–55, 1996–47 I.R.B. 7

96–56, 1996–47 I.R.B. 7

96–57, 1996–47 I.R.B. 9

96–58, 1996–49 I.R.B. 7

96–59, 1996–48 I.R.B. 10

96–60, 1996–49 I.R.B. 7

96–61, 1996–49 I.R.B. 8

96–62, 1996–49 I.R.B. 8

Proposed Regulations:

CO–9–96, 1996–34 I.R.B. 20

CO–24–96, 1996–30 I.R.B. 22

CO–25–96, 1996–31 I.R.B. 30

CO–26–96, 1996–31 I.R.B. 31

FI–59–94, 1996–30 I.R.B. 23

FI–32–95, 1996–34 I.R.B. 21

FI–48–95, 1996–31 I.R.B. 36

FI–28–96, 1996–31, I.R.B. 33

GL–7–96, 1996–33 I.R.B. 13

IA–292–84, 1996–28 I.R.B. 38

IA–26–94, 1996–30 I.R.B. 24

IA–42–95, 1996–49 I.R.B. 21

IA–29–96, 1996–33 I.R.B. 14

INTL–4–95, 1996–36 I.R.B. 8

PS–39–93, 1996–34 I.R.B. 27

PS–22–96, 1996–33 I.R.B. 15

REG–208215–91, 1996–38 I.R.B. 145

REG–209803–95, 1996–44 I.R.B. 14

REG–209826–96, 1996–42 I.R.B. 10

REG–209827–96, 1996–37 I.R.B. 19

REG–245562–96, 1996–41 I.R.B. 8

REG–251520–96, 1996–48 I.R.B. 15

Public Laws:

104–117, 1996–34 I.R.B. 19

104–134, 1996–38 I.R.B. 7

104–168, 1996–38 I.R.B. 8

104–191, 1996–43 I.R.B. 7

104–193, 1996–46 I.R.B. 4

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

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

Revenue 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

96–49, 1996–43 I.R.B. 74

96–50, 1996–47 I.R.B. 10

96–51, 1996–47 I.R.B. 10

96–52, 1996–48 I.R.B. 10

96–53, 1996–49 I.R.B. 9

Revenue Rulings:

96–33, 1996–27 I.R.B. 4

96–34, 1996–28 I.R.B. 4

96–35, 1996–31 I.R.B. 4

96–36, 1996–30 I.R.B. 6

96–37, 1996–32 I.R.B. 4

96–38, 1996–33 I.R.B. 4

96–39, 1996–34 I.R.B. 4

96–41, 1996–45 I.R.B. 4

96–42, 1996–35 I.R.B. 4

96–43, 1996–36 I.R.B. 4

96–44, 1996–38 I.R.B. 4

96–45, 1996–39 I.R.B. 5

96–46, 1996–39 I.R.B. 5

96–47, 1996–40 I.R.B. 7

96–48, 1996–40 I.R.B. 4

96–49, 1996–41 I.R.B. 4

96–50, 1996–42 I.R.B. 4

96–51, 1996–43 I.R.B. 5

96–52, 1996–45 I.R.B. 5

96–53, 1996–47 I.R.B. 4

96–54. 1996–47 I.R.B. 5

96–55, 1996–49 I.R.B. 4

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

8683, 1996–44 I.R.B. 9

8684, 1996–44 I.R.B. 4

8685, 1996–48 I.R.B. 4

Finding List of Current Action on

Previously Published Items1

Bulletins 1996–27 through 1996–49

*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

91–22

Superseded by

96–53, 1996–49 I.R.B. 9

92–20

Modified by

TD 8680, 1996–33 I.R.B. 5

95–16

Superseded by

96–48, 1996–39 I.R.B. 10

95–29

Superseded by

96–36, 1996–27 I.R.B. 11

95–29A

Superseded by

96–36, 1996–27 I.R.B. 11

95–30

Superseded by

96–42, 1996–32 I.R.B. 14

95–46

Superseded by

96–48, 1996–39 I.R.B. 10

96–41

Modified by

Notice 96–49, 1996–41 I.R.B. 6

96–46

Supplemented by

96–51, 1996–47 I.R.B. 10

A cumulative finding list for previously published

items mentioned in Internal Revenue Bulletins

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

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

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