Bulletin No. 1996–38

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September 16, 1996

HIGHLIGHTS

OF THIS ISSUE

These synopses are intended only as aids to the reader in

identifying the subject matter covered. They may not be relied

upon as authoritative interpretations.

INCOME TAX

ESTATE TAX

Rev. Rul. 96–44, page 4.

Interest rates; underpayments and overpayments.

The rate of interest determined under section 6621 of

the Code for the calendar quarter beginning October 1,

1996, will be 8 percent for overpayments, 9 percent for

underpayments, and 11 percent for large corporate

underpayments. The rate of interest paid on the portion

of a corporation overpayment exceeding $10,000 is 6.5

percent.

REG–208215–91, page 145.

Proposed regulations relate to the treatment of disclaimers for estate and gift tax purposes.

Rev. Proc. 96–46, page 144.

Low-Income Housing Tax Credit. This procedure publishes the amounts of unused housing credit carryovers

allocated to qualified states under section 42(h)(3)(D) of

the Code for calendar year 1996.

EXEMPT ORGANIZATIONS

Announcement 96–92, page 151.

Beginning September 1, 1996, requests for employee

plan determination letters and applications for recognition of tax exemption, formerly sent to key district

offices in Atlanta, Georgia, and Baltimore, Maryland,

should be sent to the Internal Revenue Service Center in

Covington, Kentucky.

Announcement 96–94, page 153.

A list is given of organizations now classified as private

foundations. Also, Citizen Policy Research Inc., East

Harwich, MA, is now classified as an organization that is

not a private operating foundation.

Finding Lists begin on page 159.

Announcement of Disbarments and Suspensions begins on page 155.

ADMINISTRATIVE

P.L. 104–134, page 7.

An Act making appropriations for fiscal year 1996 to

make a further downpayment toward a balanced budget,

and for the other purposes, is reproduced.

P.L. 104–168, page 8.

An Act to amend the Internal Revenue Code of 1986, to

provide for increased taxpayer protections, is reproduced.

Announcement 96–88, page 150.

Telephone numbers are required on 1996 recipient

statements (Forms W–2G, 1098, 1099, and 8308), but

the penalty under section 6722 of the Code may be

waived if the number is not on the 1996 form.

Announcement 96–93, page 151.

INTL–062–90; INTL–0032–93; INTL–52–86; INTL–52–

94, 1996–19 I.R.B. 26, relating to the withholding of

income tax under sections 1441 and 1442 on certain

U.S. source income paid to foreign persons, the related

tax deposit and reporting requirements under section

1461, and the related collection, refunds, and credits of

withheld tax under sections 1461 through 1463, are

corrected.

Mission of the Service

The purpose of the Internal Revenue Service is to

collect the proper amount of tax revenue at the least

cost; serve the public by continually improving the

quality of our products and services; and perform in a

manner warranting the highest degree of public

confidence in our integrity, efficiency and fairness.

Statement of Principles

of Internal Revenue

Tax Administration

The Service also has the responsibility of applying

and administering the law in a reasonable,

practical manner. Issues should only be raised by

examining of ficers when they have merit, never

arbitrarily or for trading purposes. At the same

time, the examining officer should never hesitate

to raise a meritorious issue. It is also important

that care be exercised not to raise an issue or to

ask a court to adopt a position inconsistent with

an established Service position.

The function of the Internal Revenue Service is to

administer the Internal Revenue Code. Tax policy

for raising revenue is determined by Congress.

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

carry out that policy by correctly applying the laws

enacted by Congress; to determine the reasonable

meaning of various Code provisions in light of the

Congressional purpose in enacting them; and to

perform this work in a fair and impartial manner,

with neither a government nor a taxpayer point of view.

Administration should be both reasonable and

vigorous. It should be conducted with as little

delay as possible and with great cour tesy and

considerateness. It should never try to overreach,

and should be reasonable within the bounds of law

and sound administration. It should, however, be

vigorous in requiring compliance with law and it

should be relentless in its attack on unreal tax

devices and fraud.

At the heart of administration is interpretation of the

Code. It is the responsibility of each person in the

Service, charged with the duty of interpreting the

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

provision and not to adopt a strained construction in

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

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

Introduction

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

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

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

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

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

single-copy basis.

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

cautioned against reaching the same conclusions in

other cases unless the facts and circumstances are

substantially the same.

The Bulletin is divided into four parts as follows:

Part I.—1986 Code.

This part includes rulings and decisions based on

provisions of the Internal Revenue Code of 1986.

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

substantive rulings necessary to promote a uniform

application of the tax laws, including all rulings that

supersede, revoke, modify, or amend any of those

previously published in the Bulletin. All published rulings

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

are not published; however, statements of internal

practices and procedures that affect the rights and

duties of taxpayers are published.

Part II.—Treaties and Tax Legislation.

This part is divided into two subparts as follows:

Subpart A, Tax Conventions, and Subpart B, Legislation

and Related Committee Reports.

Part III.—Administrative, Procedural, and Miscellaneous.

To the extent practicable, pertinent cross references to

these subjects are contained in the other Parts and

Subparts. Also included in this part are Bank Secrecy

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

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

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

stated in the revenue ruling. In those based on positions

taken in rulings to taxpayers or technical advice to

Service field offices, identifying details and information

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

requirements.

Part IV.—Items of General Interest.

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

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

Rulings and procedures reported in the Bulletin do not

have the force and effect of Treasury Department

Regulations, but they may be used as precedents.

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

as precedents by Service personnel in the disposition of

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

The first Bulletin for each month includes an index for

the matters published during the preceding month.

These monthly indexes are cumulated on a quarterly and

semiannual basis, and are published in the first Bulletin

of the succeeding quarterly and semi-annual period,

respectively.

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

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

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

Section 42.—Low-Income Housing

Credit

26 CFR 1.42–14: Allocation rules for post-1989

State housing credit ceiling amounts.

This procedure publishes the amounts of unused

housing credit carryovers allocated to qualified

states under section 42(h)(3)(D) of the Code

for calendar year 1996. See Rev. Proc. 96–46,

page 144.

Section 6621.— Determination of

Interest Rate

26 CFR 301.6621–1: Interest rate.

Interest rates; underpayments and

overpayments. The rate of interest determined under section 6621 of the

Code for the calendar quarter beginning

October 1, 1996, will be 8 percent for

overpayments, 9 percent for underpayments, and 11 percent for large corporate underpayments. The rate of interest

paid on the portion of a corporation

overpayment exceeding $10,000 is 6.5

percent.

Rev. Rul. 96–44

Section 6621 of the Internal Revenue

Code establishes different rates for interest on tax overpayments and interest on

tax underpayments. Under § 6621(a)(1),

the overpayment rate is the sum of

the federal short-term rate plus 2 percentage points, except the rate for the

portion of a corporate overpayment of

tax exceeding $10,000 for a taxable

period is the sum of the federal shortterm rate plus 0.5 of a percentage point

for interest computations made after

December 31, 1994. Under

§ 6621(a)(2), the underpayment rate is

the sum of the federal short-term rate

plus 3 percentage points.

Section 6621(c) provides that for purposes of interest payable under § 6601

on any large corporate underpayment,

the

underpayment

rate

under

§ 6621(a)(2) is determined by substituting ‘‘5 percentage points’’ for ‘‘3 percentage points.’’ See § 6621(c) and

§ 301.6621–3 of the Regulations on

Procedure and Administration for the

definition of a large corporate underpayment and for the rules for determining

the applicable rate. Section 6621(c) and

§ 301.6621–3 are generally effective for

periods after December 31, 1990.

Section 6621(b)(1) provides that the

Secretary will determine the federal

short-term rate for the first month in

each calendar quarter.

Section 6621(b)(2)(A) provides that

the federal short-term rate determined

under § 6621(b)(1) for any month applies during the first calendar quarter

beginning after such month.

Section 6621(b)(3) provides that the

federal short-term rate for any month is

the federal short-term rate determined

during such month by the Secretary in

accordance with § 1274(d), rounded to

the nearest full percent (or, if a multiple

of 1/2 of 1 percent, the rate is increased

to the next highest full percent).

Notice 88–59, 1988–1 C.B. 546, announced that in determining the quarterly interest rates to be used for overpayments and underpayments of tax

under § 6621, the Internal Revenue Service will use the federal short-term rate

based on daily compounding because

that rate is most consistent with § 6621

which, pursuant to § 6622, is subject to

daily compounding.

Rounded to the nearest full percent,

the federal short-term rate based on

daily compounding determined during

the month of July 1996 is 6 percent.

Accordingly, an overpayment rate of 8

percent and an underpayment rate of 9

percent are established for the calendar

quarter beginning October 1, 1996. The

overpayment rate for the portion of

corporate overpayments exceeding

$10,000 for the calendar quarter beginning October 1, 1996, is 6.5 percent.

The underpayment rate for large corporate underpayments for the calendar

quarter beginning October 1, 1996, is 11

percent. These rates apply to amounts

bearing interest during that calendar

quarter.

Interest factors for daily compound

interest for annual rates of 6.5 percent, 8

percent, 9 percent, and 11 percent are

published in Tables 66, 69, 71, and 75

of Rev. Proc. 95–17, 1995–1 C.B. 556,

620, 623, 625, and 629.

Annual interest rates to be compounded daily pursuant to § 6622 that

apply for prior periods are set forth in

the accompanying tables.

DRAFTING INFORMATION

The principal author of this revenue

ruling is Marcia Rachy of the Office of

Assistant Chief Counsel (Income Tax

and Accounting). For further information

regarding this revenue ruling, contact

Ms. Rachy on (202) 622–4940 (not a

toll-free call).

TABLE OF INTEREST RATES

PERIODS BEFORE JUL. 1, 1975–PERIODS ENDING DEC. 31, 1986

OVERPAYMENTS AND UNDERPAYMENTS

PERIOD

RATE

DAILY RATE TABLE IN 1995–1 C.B.

Before Jul. 1, 1975

Jul. 1, 1975—Jan. 31, 1976

Feb. 1, 1976—Jan. 31, 1978

Feb. 1, 1978—Jan. 31, 1980

Feb. 1, 1980—Jan. 31, 1982

Feb. 1, 1982—Dec. 31, 1982

Jan. 1, 1983—Jun. 30, 1983

Jul. 1, 1983—Dec. 31, 1983

Jan. 1, 1984—Jun. 30, 1984

Jul. 1, 1984—Dec. 31, 1984

Jan. 1, 1985—Jun. 30, 1985

12%

20%

16%

11%

13%

Table 2, pg. 557

Table 4, pg. 559

Table 3, pg. 558

Table 2, pg. 557

Table 5, pg. 560

Table 6, pg. 560

Table 37, pg. 591

Table 27, pg. 581

Table 75, pg. 629

Table 31, pg. 585

TABLE OF INTEREST RATES—Continued

PERIODS BEFORE JUL. 1, 1975–PERIODS ENDING DEC. 31, 1986

OVERPAYMENTS AND UNDERPAYMENTS

PERIOD

RATE

DAILY RATE TABLE IN 1995–1 C.B.

Jul. 1, 1985—Dec. 31, 1985

Jan. 1, 1986—Jun. 30, 1986

Jul. 1, 1986—Dec. 31, 1986

11%

10%

Table 27, pg. 581

Table 25 pg. 579

Table 23, pg. 577

TABLE OF INTEREST RATES

FROM JAN. 1, 1987–PRESENT

Jan. 1, 1987—Mar. 31, 1987

Apr. 1, 1987—Jun. 30, 1987

Jul. 1, 1987—Sep. 30, 1987

Oct. 1, 1987—Dec. 31, 1987

Jan. 1, 1988—Mar. 31, 1988

Apr. 1, 1988—Jun. 30, 1988

Jul. 1, 1988—Sep. 30, 1988

Oct. 1, 1988—Dec. 31, 1988

Jan. 1, 1989—Mar. 31, 1989

Apr. 1, 1989—Jun. 30, 1989

Jul. 1, 1989—Sep. 30, 1989

Oct. 1, 1989—Dec. 31, 1989

Jan. 1, 1990—Mar. 31, 1990

Apr. 1, 1990—Jun. 30, 1990

Jul. 1, 1990—Sep. 30, 1990

Oct. 1, 1990—Dec. 31, 1990

Jan. 1, 1991—Mar. 31, 1991

Apr. 1, 1991—Jun. 30, 1991

Jul. 1, 1991—Sep. 30, 1991

Oct. 1, 1991—Dec. 31, 1991

Jan. 1, 1992—Mar. 31, 1992

Apr. 1, 1992—Jun. 30, 1992

Jul. 1, 1992—Sep. 30, 1992

Oct. 1, 1992—Dec. 31, 1992

Jan. 1, 1993—Mar. 31, 1993

Apr. 1, 1993—Jun. 30, 1993

Jul. 1, 1993—Sep. 30, 1993

Oct. 1, 1993—Dec. 31, 1993

Jan. 1, 1994—Mar. 31, 1994

Apr. 1, 1994—Jun. 30, 1994

Jul. 1, 1994—Sep. 30, 1994

Oct. 1, 1994—Dec. 31, 1994

Jan. 1, 1995—Mar. 31, 1995

Apr. 1, 1995—Jun. 30, 1995

Jul. 1, 1995—Sep. 30, 1995

Oct. 1, 1995—Dec. 31, 1995

Jan. 1, 1996—Mar. 31, 1996

Apr. 1, 1996—Jun. 30, 1996

Jul. 1, 1996—Sep. 30, 1996

Oct. 1, 1996—Dec. 31, 1996

OVERPAYMENTS

UNDERPAYMENTS

RATE TABLE PG

1995–1 C.B.

RATE TABLE PG

1995–1 C.B.

10%

11%

10%

575

577

627

625

627

579

581

579

577

623

621

619

571

573

575

577

575

623

621

623

10%

11%

10%

11%

12%

11%

10%

577

579

629

627

629

581

583

581

579

625

623

621

573

575

577

579

577

625

623

625

TABLE OF INTEREST RATES FOR LARGE CORPORATE UNDERPAYMENTS

FROM JANUARY 1, 1991–PRESENT

RATE TABLE PG

1995–1 C.B.

Jan. 1, 1991—Mar. 31, 1991

Apr. 1, 1991—Jun. 30, 1991

Jul. 1, 1991—Sep. 30, 1991

Oct. 1, 1991—Dec. 31, 1991

Jan. 1, 1992—Mar. 31, 1992

Apr. 1, 1992—Jun. 30, 1992

Jul. 1, 1992—Sep. 30, 1992

Oct. 1, 1992—Dec. 31, 1992

Jan. 1, 1993—Mar. 31, 1993

Apr. 1, 1993—Jun. 30, 1993

Jul. 1, 1993—Sep. 30, 1993

Oct. 1, 1993—Dec. 31, 1993

Jan. 1, 1994—Mar. 31, 1994

Apr. 1, 1994—Jun. 30, 1994

Jul. 1, 1994—Sep. 30, 1994

Oct. 1, 1994—Dec. 31, 1994

Jan. 1, 1995—Mar. 31, 1995

Apr. 1, 1995—Jun. 30, 1995

Jul. 1, 1995—Sep. 30, 1995

Oct. 1, 1995—Dec. 31, 1995

Jan. 1, 1996—Mar. 31, 1996

Apr. 1, 1996—Jun. 30, 1996

Jul. 1, 1996—Sep. 30, 1996

Oct. 1, 1996—Dec. 31, 1996

13%

12%

11%

10%

11%

12%

11%

10%

11%

585

583

629

627

625

577

579

581

583

581

629

627

629

TABLE OF INTEREST RATES FOR CORPORATE OVERPAYMENTS EXCEEDING $10,000

FROM JANUARY 1, 1995-PRESENT

RATE TABLE PG

1995–1 C.B.

Jan. 1, 1995—Mar. 31, 1995

Apr. 1, 1995—Jun. 30, 1995

Jul. 1, 1995—Sep. 30, 1995

Oct. 1, 1995—Dec. 31, 1995

Jan. 1, 1996—Mar. 31, 1996

Apr. 1, 1996—Jun. 30, 1996

Jul. 1, 1996—Sep. 30, 1996

Oct. 1, 1996—Dec. 31, 1996

6.5%

7.5%

6.5%

5.5%

6.5%

572

574

572

620

618

620

Part II. Treaties and Tax Legislation

Subpart B.—Legislation and

Related Committee Reports

Public Law 104–134

104th Congress, H.R. 30191

April 26, 1996

An Act making appropriations for

fiscal year 1996 to make a further

downpayment toward a balanced budget, and for other purposes.

Be it enacted by the Senate and

House of Representatives of the United

States of America in Congress assembled,

SEC. 2904. COMPOSITION OF

NATIONAL COMMISSION ON

RESTRUCTURING THE INTERNAL

REVENUE SERVICE.

(a) IN GENERAL.—Section 637(b)(2) of the Treasury, Postal Service, and

General Government Appropriations Act,

1996 (Public Law 104–52, 109 Stat.

509) is amended—

(1) by striking ‘‘thirteen’’ and inserting ‘‘seventeen’’, and

(2) in subparagraphs (B) and (D)—

(A) by striking ‘‘Two’’ and inserting ‘‘Four’’, and

(B) by striking ‘‘one from private life’’ and inserting ‘‘three from

private life’’.

(b) EFFECTIVE

DATE.—The

amendments made by this section shall

take effect as if included in the provisions of the Treasury, Postal Service,

and General Government Appropriations

Act, 1996.

SEC. 31001. DEBT COLLECTION

IMPROVEMENT ACT OF 1996.

(g)(2) INTERNAL

REVENUE

CODE OF 1986.—Subparagraph (A) of

section 6103(1)(10) of the Internal Revenue Code of 1986 (26 U.S.C.

6103(1)(10)) is amended by inserting

‘‘and to officers and employees of the

Department of the Treasury in connection with such reduction’’ after ‘‘6402’’.

This publication of the law is restricted to

excerpts involving tax matters.

(i)(2) INCLUDED FEDERAL LOAN

PROGRAM DEFINED.—Subparagraph

Revenue Code of 1986 (relating to disclosure that applicant for Federal loan

has tax delinquent account) is amended

to read as follows:

‘‘(C) INCLUDED

FEDERAL

LOAN PROGRAM DEFINED.—For

purposes of this paragraph, the term

‘included Federal loan program’ means

any program under which the United

States or a Federal agency makes, guarantees, or insures loans.’’.

(m)(2) RETURNS RELATING TO

CANCELLATION OF INDEBTEDNESS BY CERTAIN ENTITIES.—

(A) IN GENERAL.—Subsection

(a) of section 6050P of the Internal

Revenue Code of 1986 (relating to returns relating to the cancellation of

indebtedness by certain financial entities) is amended by striking ‘‘applicable

financial entity’’ and inserting ‘‘applicable entity’’.

(B) ENTITIES TO WHICH REQUIREMENT APPLIES.—Subsection

amended—

(i) by redesignating paragraphs (1) and (2) as paragraphs (2) and

(3), respectively, and inserting before

paragraph (2) (as so redesignated) the

following new paragraph:

‘‘(1) APPLICABLE ENTITY.—

The term ‘applicable entity’ means—

‘‘(A) an executive, judicial, or

legislative agency (as defined in section

3701(a)(4) of title 31, United States

Code), and

‘‘(B) an applicable financial entity.’’, and

(ii) in paragraph (3), as so

redesignated, by striking ‘‘(1)(B)’’ and

inserting ‘‘(1)(A) or (2)(B)’’.

amended by adding at the end the

following new subsection:

‘‘(e) ALTERNATIVE

PROCEDURE.—In lieu of making a return

required under subsection (a), an agency

described in subsection (c)(1)(A) may

submit to the Secretary (at such time

and in such form as the Secretary may

by regulations prescribe) information

sufficient for the Secretary to complete

such a return on behalf of such agency.

Upon receipt of such information, the

Secretary shall complete such return and

provide a copy of such return to such

agency.’’

(D) CONFORMING AMENDMENTS.—

(i) Subsection (d) of section

6050P of such Code is amended by

striking ‘‘applicable financial entity’’

and inserting ‘‘applicable entity’’.

(ii) The heading of section

6050P of such Code is amended to read

as follows:

‘‘SEC. 6050P. RETURNS RELATING

TO THE CANCELLATION OF

INDEBTEDNESS BY CERTAIN

ENTITIES.’’

(iii) The table of sections for

subpart B of part III of subchapter A of

chapter 61 of such Code is amended by

striking the item relating to section

6050P and inserting the following new

item:

‘‘Section 6050P. Returns relating

to the cancellation of indebtedness

by certain entities.’’

(n) Effective October 1, 1995, section

11 of the Administrative Dispute Resolution Act (Public Law 101–552, U.S.C.

571 note) shall not apply to the amendment made by section 8(b) of such Act.

(u)(2) FEDERAL AGENCY DEFINED.—Section 6402(f) of the Internal

Revenue Code of 1986 (26 U.S.C.

6402(f)) is amended to read as follows:

‘‘(f) FEDERAL AGENCY.—For purposes of this section, the term ‘Federal

agency’ means a department, agency or

instrumentality of the United States, and

includes a Government corporation (as

such term is defined in section 103 of

title 5, United States Code).’’.

Approved April 26, 1996.

100

101

102

103

104

105

106

107

108

109

110

111

112

113

114

115

116

117

118

119

120

121

122

123

124

125

126

127

128

129

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141

142

143

Part III. Administrative, Procedural, and Miscellaneous

26 CFR 601.105: Examination of returns and

claims for refund, credit, or abatement; determination of correct tax liability. (Also Part I, § 42;

1.42–14.)

Rev. Proc. 96–46

SECTION 1. PURPOSE

This revenue procedure publishes the

amounts of unused housing credit carryovers allocated to qualified states under § 42(h)(3)(D) of the Internal Revenue Code for calendar year 1996.

SECTION 2. BACKGROUND

Rev. Proc. 92–31, 1992–1 C.B. 775,

provides guidance to state housing credit

agencies of qualified states on the procedure for requesting an allocation of

unused housing credit carryovers under

§ 42(h)(3)(D). Section 4.06 of Rev.

Proc. 92–31 provides that the Internal

Revenue Service will publish in the

Internal Revenue Bulletin the amount of

unused housing credit carryovers allocated to qualified states for a calendar

year from a national pool of unused

credit authority (the National Pool). This

revenue procedure publishes these

amounts for calendar year 1996.

SECTION 3. PROCEDURE

.01 The unused housing credit carryover amount allocated from the National Pool by the Secretary to each

qualified state for calendar year 1996 is

as follows:

Qualified State

Amount

Allocated

Alabama

Alaska

Arizona

$117,431

16,867

113,423

Qualified State

Amount

Allocated

California

Colorado

Connecticut

Florida

Hawaii

Idaho

Illinois

Indiana

Iowa

Kansas

Kentucky

Maine

Maryland

Massachusetts

Michigan

Minnesota

Mississippi

Missouri

Nebraska

Nevada

New Hampshire

New Jersey

New Mexico

New York

Ohio

Oregon

Pennsylvania

Rhode Island

South Dakota

Tennessee

Utah

Vermont

Virginia

Washington

Wisconsin

874,843

101,760

91,156

388,365

32,816

31,536

327,102

160,100

78,742

71,087

106,520

34,514

139,336

168,144

264,309

127,117

74,288

146,907

45,174

40,554

31,647

219,998

46,037

505,712

309,011

85,895

335,453

27,750

20,068

144,040

53,107

16,144

182,367

148,716

141,451

.02 When certain issues are resolved,

qualified states may be entitled to an

additional allocation from the 1996 National Pool. If it is determined that

144

qualified states are entitled to an additional allocation from the 1996 National

Pool, the Service will publish the additional amount allocated to each qualified

state as quickly as feasible to enable the

state to allocate the amount before the

close of 1996. Unless the Service is

notified by a qualified state that it does

not wish an additional allocation before

these amounts are published, the Service

will assume that a qualified state wishes

to receive an additional allocation. A

qualified state should notify the Service

that it does not wish an additional

allocation from the 1996 National Pool

by writing to the address published in

Sec. 4.05 of Rev. Proc. 92–31, in which

case the refused additional allocation

can be allocated to other qualified states.

Any additional amount that a qualified

state fails to allocate before the close of

1996 will not be considered in determining whether a state qualifies for the

1997 National Pool.

SECTION 4. EFFECTIVE DATE

This revenue procedure is effective

for allocations of housing credit dollar

amounts attributable to the National

Pool component of a qualified state’s

housing credit ceiling for calendar year

1996.

DRAFTING INFORMATION

The principal author of this revenue

procedure is Christopher J. Wilson of

the Office of Assistant Chief Counsel

(Passthroughs and Special Industries).

For further information regarding this

revenue procedure, contact Mr. Wilson

on (202) 622–3040 (not a toll-free call).

Part IV. Items of General Interest

Notice of Proposed Rulemaking

Disclaimer of Interests and Powers

REG-208215-91

AGENCY: Internal Revenue Service

(IRS), Treasury.

ACTION: Notice of proposed rulemaking.

SUMMARY: This document contains

proposed regulations relating to the

treatment of disclaimers for estate and

gift tax purposes. The regulations propose to clarify certain provisions governing the disclaimer of property interests and powers and, in addition, to

conform the regulations to court decisions holding the current regulation invalid with respect to the disclaimer of

joint property interests. The proposed

regulations will affect persons who disclaim interests, powers or interests in

jointly owned property after the effective date of these regulations.

DATES: Written comments and requests

for a public hearing must be received by

November 19, 1996.

ADDRESSES: Send submissions to:

CC:DOM:CORP:R (REG-208215-91),

room 5226, Internal Revenue Service,

POB 7604, Ben Franklin Station, Washington, DC 20044. Submissions may be

hand delivered between the hours of 8

a.m. and 5 p.m. to: CC:DOM:CORP:R

(REG-208215-91), Courier’s Desk Internal Revenue Service, 1111 Constitution

Avenue NW, Washington, DC. Alternately, taxpayers may submit comments

electronically via the Internet by selecting the ‘‘Tax Regs’’ option of 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: Concerning the proposed

regulations, Dale Carlton, (202) 6223090; concerning submissions, Michael

Slaughter, (202) 622-7190 (not toll-free

numbers).

SUPPLEMENTARY INFORMATION:

Background

This document proposes to amend the

Estate and Gift Tax Regulations (26

CFR parts 20 and 25) under sections

2041, 2046, 2056, 2511, 2514, and

2518, relating to the disclaimer of interests in property and powers over property.

1. Interests and powers subject to the

disclaimer rules

Under section 2518(a), if a person

makes a qualified disclaimer, then for

transfer tax purposes, the interest disclaimed is treated as never having

passed to the person disclaiming. Under

section 2518(b)(2)(A), in order to have a

qualified disclaimer, an interest must be

disclaimed within 9 months of the date

of ‘‘the transfer creating the interest’’ in

the person disclaiming. A person to

whom any interest passes by reason of

the exercise or lapse of a general power

of appointment must disclaim the interest passing within 9 months after the

exercise or lapse.

The current regulations provide that

section 2518 applies to the disclaimer of

interests or powers created pursuant to

‘‘taxable transfers’’ made after December 31, 1976. They further provide that

the 9-month period within which the

disclaimer must be made is to be determined with reference to the ‘‘taxable

transfer’’ creating the interest in the

disclaimant. The term ‘‘taxable transfer’’

was incorporated into the regulation

based on a statement in the legislative

history underlying the enactment of section 2518. H.R. Conf. Rep. No. 1515,

94th Cong., 2d Sess. 623 (1976).

Because the reference point under the

regulation is the ‘‘taxable transfer’’ creating the interest, the existing regulation

could be viewed as implying that the

disclaimer of an interest created in a

transfer that is outside the scope of the

estate or gift tax need not comply with

the requirements of section 2518. For

example, if the disclaimed property constitutes an interest in foreign situs property created pursuant to a transfer by a

nonresident alien donor or decedent, the

transfer by the nonresident alien would

not be within the scope of the gift tax or

estate tax. However, a disclaimer of

such an interest would have to comply

with section 2518; otherwise, there

could be transfer tax consequences to

the disclaimant.

Similarly, the regulations do not specifically address the disclaimer of a

property interest passing as a result of

the lapse or release of a general power

of appointment created on or before

October 21, 1942. Under sections

145

2041(a)(1) and 2514(a), the lapse or

release of a pre-1942 power is not

subject to transfer tax.

The scope of the term ‘‘taxable transfer’’, as used in § 25.2511-1(c)(2), a

related provision governing the disclaimer of interests created in taxable

transfers made prior to January 1, 1977,

was considered in the Eighth Circuit

decision in United States v. Irvine, 981

F.2d 991 (8th Cir. 1992), rev’d, 114 S.Ct

1473 (1994), and in Ordway v. United

States, 908 F.2d 890 (11th Cir. 1991). In

these cases, the disclaimant argued that

a disclaimer that did not satisfy the

requirements of § 25.2511- 1(c)(2) was

nonetheless effective for estate and gift

tax purposes because the trust interest

that was disclaimed was created pursuant to a transfer in trust made prior to

the enactment of the federal gift tax.

Accordingly, the disclaimant argued that

the interest was not created in a ‘‘taxable transfer’’ prior to January 1, 1977,

the regulation did not apply and the

disclaimer had only to be effective under state law to avoid federal tax. The

Service argued in both cases that the

term ‘‘taxable transfer’’ references a

generic completed gift under § 25.25112 of the regulations. The Eleventh Circuit agreed with the Service in Ordway,

while the Eighth Circuit disagreed in

Irvine. The Supreme Court did not resolve this issue in its review of Irvine.

The Court concluded that even if

§ 25.2511-2 did not apply, the disclaimer caused the transfer of an interest

that had not been timely disclaimed, and

the transfer was subject to gift tax. In

view of the conflicting Eighth and Eleventh Circuit decisions in Irvine and

Ordway, the Treasury and the IRS believe that it is appropriate to clarify the

regulations.

2. Disclaimer of Jointly-owned Property

The current regulations provide, in

general, that in order to be a qualified

disclaimer under section 2518, a surviving joint tenant’s disclaimer of both an

interest passing to the joint tenant on the

creation of the tenancy, and the

survivorship interest in the joint tenancy

or tenancy by the entirety, must be made

within 9 months after the transfer creating the tenancy. Further, a joint tenant

cannot make a qualified disclaimer of

any portion of a joint interest attributable to consideration furnished by that

tenant.

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Section 25.2518-2(c)(4)(ii) provides a

special rule with respect to joint tenancies and tenancies by the entirety in real

property created after 1976 but prior to

1982. During that period, section 2515

applied in determining the gift tax consequences of the creation of a joint

tenancy with right of survivorship or

tenancy by the entirety in real property

between husband and wife. Under section 2515, the creation of the tenancy

was not treated as a gift subject to gift

tax unless the parties elected to treat the

creation of the tenancy as a gift. Rather,

a transfer subject to gift tax occurs on

the termination of the tenancy (other

than by reason of the death of one of

the tenants) if the proceeds of termination are not divided according to the

consideration furnished by each party to

the tenancy. Under § 25.2518-2(c)(4)(ii), in general, an interest in a tenancy

created between 1976 and 1982 can be

disclaimed within 9 months of the date

of death of the first joint tenant to die,

provided no election was made under

section 2515 to treat the creation of the

tenancy as a gift. The disclaimant can

disclaim up to the portion of the tenancy

included in the decedent’s gross estate

under section 2040.

Section 2515 was enacted in the Internal Revenue Code of 1954, effective

for tenancies created after December 31,

1954, and was repealed with respect to

tenancies created after December 31,

1981, by the Economic Recovery Tax

Act of 1981. The Technical and Miscellaneous Revenue Act of 1988 added

section 2523(i)(3) which provides that,

where the spouse of a donor is not a

citizen of the United States, the principles of section 2515, as such section

was in effect before its repeal, shall

apply (except for the provisions providing for an election), in determining the

gift tax consequences of the creation of

a joint tenancy or tenancy by the entirety in real property between husband

and wife.

Although section 2515 was effective

for tenancies created after 1954 and

before 1982, and, in addition, the principles of section 2515 are currently

effective for tenancies created on or

after July 14, 1988, where the donee

spouse is not a citizen, the special rule

in the current regulation applies only to

tenancies subject to section 2515 created

after 1976 and before 1982.

The validity of the current regulations

with respect to joint interests that are

unilaterally severable has been the subject of repeated litigation. In Kennedy v.

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I.R.B.

Commissioner, 804 F.2d 1332 (7th Cir.

1986), the court held that the surviving

spouse’s survivorship interest in the decedent’s one-half interest in jointly held

real property was created on the decedent’s death since, prior to that time, the

decedent could have unilaterally severed

the interest and defeated the spouse’s

survivorship right in that interest. Accordingly, the court held that the

survivorship interest could be disclaimed

within 9 months of the decedent’s death.

The court concluded that the current

regulations are invalid to the extent that

they require a survivorship interest in a

severable joint tenancy to be disclaimed

within 9 months of the creation of the

tenancy. In Estate of Dancy v. Commissioner, 872 F.2d 84 (4th Cir. 1989)

(involving personal property), and

McDonald v. Commissioner, 853 F.2d

1494 (8th Cir. 1988) (involving real

property), the courts also held the regulations invalid.

In McDonald, the Eighth Circuit remanded the case to the Tax Court to

determine if the disclaimer was otherwise qualified under section 2518. On

remand, the Service argued that since

the joint property was attributable entirely to consideration furnished by the

disclaiming spouse, the spouse could not

disclaim any interest in the property

under section 2518. The Tax Court

rejected this argument in McDonald v.

Commissioner, T.C.M. 1989-140.

The Service announced in A.O.D.

CC-1990-06 (Feb. 7, 1990) that it will

follow these decisions.

3. Disclaimer of Joint Bank Accounts

For gift tax purposes, the creation of

a joint bank account is treated as an

incomplete transfer since, generally, the

contributing joint tenant may unilaterally

withdraw contributed funds without the

consent of the other joint tenant. Accordingly, unless a noncontributing joint

tenant has withdrawn the funds, the

transfer to a joint bank account does not

become complete before the death of the

first joint tenant.

Explanation of Provisions

1. Interests and powers subject to the

disclaimer rules

The proposed amendment clarifies

that the application of section 2518, or

the commencement of the 9-month period, is not dependent on the actual

imposition of a transfer tax when the

interest to be disclaimed is created. The

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proposed amendment substitutes the

statutory language of section 2518(b)(2)(A), ‘‘transfer creating the interest,’’

for ‘‘taxable transfer’’ as the reference

point for determining the scope of the

regulations as well as when the time

period for making the disclaimer commences. Under the proposed amendment, the term ‘‘transfer creating the

interest’’ includes any inter vivos transfer that would be a completed gift under

the gift tax regulations, whether or not a

gift tax liability arises on the transfer

and whether or not the transfer comes

within the scope of the gift tax. Similarly, the amendment clarifies that, for

testamentary transfers, the transfer creating the interest occurs on the date of the

decedent’s death, whether or not an

estate tax is imposed on the transfer and

whether or not the transfer comes within

the scope of the estate tax. The amendment also clarifies that, in the case of a

disclaimer of an interest passing pursuant to the exercise, lapse, or release of a

general power of appointment, the disclaimer must be made within 9 months

of the exercise, lapse, or release of the

power, regardless of whether the exercise, lapse, or release is subject to estate

or gift tax. The proposed regulations

make conforming changes to the estate

and gift tax regulations.

2. Disclaimer of Jointly-owned Property

The proposed amendments would revise the regulations to provide that, in

general, if a joint tenancy may be

unilaterally severed by either party, then

a surviving joint tenant may disclaim

the one-half survivorship interest in

property held in joint tenancy with right

of survivorship within 9 months of the

death of the first joint tenant to die,

even if the surviving joint tenant provided some or all of the consideration

for the creation of the tenancy.

The rationale of the courts in Dancy,

Kennedy, and McDonald does not apply

to joint interests that cannot be unilaterally severed under applicable state law,

such as interests held in tenancy by the

entirety. In tenancies by the entirety, the

donee spouse’s joint interest in the property that cannot be unilaterally severed

is created on the date the tenancy is

created. Therefore, the proposed amendment to the regulations would reaffirm

that any interest in a nonseverable

cotenancy, including the survivorship interest, must be disclaimed within 9

months of the date of the creation of the

tenancy. However, the Service requests

comments on whether or under what

circumstances (e.g., tenancy by the entirety ownership of a personal residence)

the rule applicable to unilaterally severable interests should apply to interests

that are not unilaterally severable.

The proposed amendments would extend the special rule in § 25.25182(c)(4)(ii) to tenancies created after December 31, 1954, and on or before

December 31, 1981, the entire period

during which section 2515 was in effect.

In addition, the special rule would be

expanded to include tenancies created

on or after July 14, 1988, where the

spouse of the donor is not a United

States citizen. Under section 2523(i)(3),

the creation of such tenancies is also

subject to the rules of former section

2515. The special rule reflects the gift

tax treatment of the creation of a joint

tenancy or tenancy by the entirety that

was subject to section 2515. The relief

afforded by the special rule will apply

to all tenancies that were subject on

creation to section 2515. Under the

special rule, the amount that the surviving joint tenant can disclaim is dependent on the amount that is includible in

the decedent’s gross estate.

3. Disclaimer of Joint Bank Accounts

The proposed regulations provide specific rules to address the disclaimer of

joint bank accounts. Because the transfer

creating the interest in the funds remaining in the bank account at the death of

the first joint tenant to die occurs at that

tenant’s death, the 9-month period for

making the qualified disclaimer commences on the death of the first joint

tenant.

The proposed regulations also clarify

that a surviving joint tenant cannot

disclaim any portion of the account

attributable to that survivor’s contribution to the account. These contributed

funds are property owned by the survivor during the cotenancy and the survivor cannot disclaim property the survivor has always owned and never

transferred. Further, the proposed regulations clarify that this rule applies even if

only one-half of the property is included

in the decedent’s gross estate under

section 2040(b) because the joint tenants

are married.

The proposed regulations also clarify

the estate tax treatment of a disclaimed

interest in a joint bank account. State

law generally treats a disclaimant as

predeceasing the decedent with respect

to the disclaimed interest. The disclaimed interest in a joint bank account

(the creation of which is treated as an

incomplete gift under the gift tax regulations), would lose its character as joint

property and pass through the decedent’s

probate estate. Accordingly, under such

circumstances, the interest disclaimed is

subject to inclusion in the decedent’s

gross estate under section 2033, rather

than section 2040(a) (providing for inclusion based on the contribution of

each tenant) or section 2040(b) (providing for inclusion of one-half the property in the case of certain joint tenancies

between spouses). The balance of the

account not subject to the disclaimer

retains its character as joint property and

is includible in the decedent’s gross

estate under either section 2040(a) or

section 2040(b).

These rules are also made applicable

to joint brokerage accounts, since the

transfer tax treatment of these accounts

generally parallels the treatment of joint

bank accounts. See Rev. Rul. 69-148,

1969-1 C.B. 226.

Proposed Effective dates

The amendments to § § 25.2518-1(a)

and 25.2518-2(c)(3) (substituting the

statutory language in section 2518(b)(2)(A) ‘‘transfer creating the interest,’’

for ‘‘taxable transfer’’) and conforming changes to § § 20.2041-3(d)(6)(i),

20.2046-1, 20.2056(d)-2(a) and (b),

25.2511-1(c)(1), 25.2514-3(c)(5), are

proposed to be effective for transfers

creating the interest or power to be

disclaimed made after the date of publication as final regulations in the Federal

do not view these amendments as prescribing any new rules for applying

section 2518.

The amendments to § 25.2518-2(c)(4)

(relating to the disclaimer of joint property and bank accounts) are proposed to

be effective for disclaimers made after

the date these regulations are published

in the Federal Register as final regulations.

Special Analyses

It has been determined that this notice

of proposed rulemaking is not a significant regulatory action as defined in E.O.

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

determined that section 553(b) of the

Administrative Procedures Act (5 U.S.C.

chapter 5) does not apply to these

regulations and because the regulations

147

do 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.

Comments and Requests for a Public

Hearing

Before these proposed regulations are

adopted as final regulations, consideration will be given to any written comments (a signed original and eight (8)

copies) 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 any person that timely

submits written comments. If a public

hearing is scheduled, notice of the date,

time, and place of the hearing will be

published in the Federal Register.

Drafting Information

The principal author of these regulations is Dale Carlton, Office of the

Assistant Chief Counsel (Passthroughs

and Special Industries). However, personnel from other offices of the IRS and

Treasury Department participated in

their development.

Proposed Amendments to the Regulations

Accordingly, 26 CFR parts 20 and 25

are proposed to be amended as follows:

PART 20—ESTATE TAX; ESTATES

OF DECEDENTS DYING AFTER

AUGUST 16, 1954

Paragraph 1. The authority citation

for part 20 continues to read in part:

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

Par. 2. Section 20.2041-3 is amended

as follows:

1. Paragraph (d)(6)(i) is amended by

revising the first sentence and by adding

a new second sentence.

2. Paragraph (d)(6)(iii) is added.

The additions and revisions read as

follows:

§ 20.2041-3 Powers of appointment

created after October 21, 1942.

(d) * * *

(6)(i) A disclaimer or renunciation of

a general power of appointment created

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in a transfer made after December 31,

1976, is not considered to be the release

of the power if the disclaimer or renunciation is a qualified disclaimer as described in section 2518 and the corresponding regulations. For rules relating

to when the transfer creating the power

occurs, see § 25.2518-2(c)(3). * * *

(iii) The first and second sentences of

paragraph (d)(6)(i) of this section are

effective for transfers creating the power

to be disclaimed made after the date of

publication as final regulations in the

Federal Register.

Par. 3. Section 20.2046-1 is revised

to read as follows:

§ 20.2046-1 Disclaimed property.

(a) This section shall apply to the

disclaimer or renunciation of an interest

in the person disclaiming by a transfer

made after December 31, 1976. For

rules relating to when the transfer creating the interest occurs, see § 25.25182(c)(3) and (c)(4) of chapter 12. If a

qualified disclaimer is made with respect to such a transfer, the Federal

estate tax provisions are to apply with

respect to the property interest disclaimed as if the interest had never been

transferred to the person making the

disclaimer. See section 2518 and the

corresponding regulations for rules relating to a qualified disclaimer.

(b) The first and second sentences of

this section are effective for transfers

creating the interest to be disclaimed

made after the date of publication as

final regulations in the Federal Register.

Par. 4. Section 20.2056(d)-2 is

amended as follows:

1. Paragraph (a) is amended by revising the first sentence and adding a new

sentence after the first sentence, and

paragraph (b) is revised.

2. A new paragraph (c) is added.

The additions and revisions read as

follows:

§ 20.2056(d)-2 Marital deduction; effect of disclaimers of post-December 31,

1976 transfers.

(a) * * * If a surviving spouse disclaims an interest in property passing to

such spouse from the decedent created

in a transfer made after December 31,

1976, the effectiveness of the disclaimer

will be determined by section 2518 and

the corresponding regulations. For rules

relating to when the transfer creating the

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interest occurs, see § 25.2518-2(c)(3)

and (c)(4) of chapter 12. * * *

(b) Disclaimer by a person other

than a surviving spouse. If an interest in

property passes to a person other than

the surviving spouse from a decedent,

and the interest is created in a transfer

made after December 31, 1976, and —

(1) The person other than the surviving spouse makes a qualified disclaimer

with respect to such interest, and

(2) The surviving spouse is entitled

to such interest in property as a result of

such disclaimer, the disclaimed interest

is treated as passing directly from the

decedent to the surviving spouse. For

rules relating to when the transfer creating the interest occurs, see § 25.25182(c)(3) and (c)(4) of chapter 12.

of this section are effective for transfers

creating the interest to be disclaimed

made after the date of publication as

final regulations in the Federal Register.

PART 25—GIFT TAX; GIFTS MADE

AFTER DECEMBER 31, 1954

Par. 5. The authority citation for part

25 is amended by adding an entry in

numerical order to read as follows:

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

Section 25.2518-2 is also issued under

26 U.S.C. 2518(b). * * *

Par. 6. Section 25.2511-1 is amended

as follows:

1. In paragraph (c)(1), the fourth sentence is revised.

2. A new paragraph (c)(3) is added.

The additions and revisions read as

follows:

§ 25.2511-1 Transfers in general.

(c)(1) * * * However, in the case of a

transfer creating an interest in property

(within the meaning of § 25.25182(c)(3) and (c)(4)) made after December

31, 1976, this paragraph (c)(1) shall not

apply to the donee if, as a result of a

qualified disclaimer by the donee the

interest passes to a different donee. * * *

(3) The fourth sentence of paragraph

(c)(1) of this section is effective for

transfers creating an interest to be disclaimed made after the date of publication as final regulations in the Federal

Par. 7. Section 25.2514-3 is amended

as follows:

148

1. Paragraph (c)(5) is amended by

revising the first sentence and adding a

new second sentence.

2. A new paragraph (c)(7) is added.

The additions and revisions read as

follows:

§ 25.2514-3 Powers of appointment

created after October 21, 1942.

(5) * * * A disclaimer or renunciation

of a general power of appointment created in a transfer made after December

31, 1976, is not considered a release of

the power for gift tax purposes if the

disclaimer or renunciation is a qualified

disclaimer as described in section 2518

and the corresponding regulations. For

rules relating to when a transfer creating

the power occurs, see § 25.25182(c)(3). * * *

(7) The first and second sentences of

paragraph (5) of § 25.2514-3(c) are effective for transfers creating the power

to be disclaimed made after the date of

publication as final regulations in the

Federal Register.

Par. 8. Section 25.2518-1 is amended

as follows:

1. Paragraph (a)(1) is revised.

2. In paragraph (a)(2), the third,

fourth, and fifth sentences of the Example are revised and a new sentence is

added after the third sentence.

3. A new paragraph (a)(3) is added.

The additions and revisions read as

follows:

§ 25.2518-1 Qualified disclaimers of

property; In general.

(a) * * * (1) In general. The rules

described in § § 25.2518-1 through

25.2518-3 apply to the qualified disclaimer of an interest in property which

is created in the person disclaiming by a

transfer made after December 31, 1976.

In general, a qualified disclaimer is an

irrevocable and unqualified refusal to

accept the ownership of an interest in

property. For rules relating to the determination of when a transfer creating an

interest occurs, see § 25.2518-2(c)(3)

and (4).

(2) * * * The transfer creating the

remainder interest in the trust occurred

in 1968. See § 25.2511-1(c)(2). Therefore, section 2518 does not apply to the

disclaimer of the remainder interest because the transfer creating the interest

was made prior to January 1, 1977. If,

however, W had caused the gift to be

incomplete by also retaining the power

to designate the person or persons to

receive the trust principal at death, and,

as a result, no transfer (within the

meaning of § 25.2511-1(c)(2)) of the

remainder interest was made at the time

of the creation of the trust, section 2518

would apply to any disclaimer made

after W’s death with respect to an

interest in the trust property.

(3) Section 25.2518-1(a)(1) is effective for transfers creating the interest to

be disclaimed made after the date of

publication as final regulations in the

Federal Register.

Par. 9. Section 25.2518-2 is amended

as follows:

1. Paragraph (c)(3) is redesignated as

paragraph (c)(3)(i).

2. Newly designated paragraph

(c)(3)(i) is amended as follows:

a. In the first, eighth, and eleventh

sentences, the word ‘‘taxable’’ is removed in each place it appears.

b. In the third and ninth sentences,

the language ‘‘taxable transfer’’ is removed and ‘‘transfer creating an interest’’ is added in each place it appears.

c. The fourth, fifth, sixth, and seventh

sentences are revised.

d. A new sentence is added after the

fourth sentence.

3. A new paragraph (c)(3)(ii) is

added.

4. Paragraph (c)(4) is revised.

5. In paragraph (c)(5), Example (7) is

revised.

6. In paragraph (c)(5), Example (9) is

redesignated as Example (13) and newly

designated Example (13) is revised.

7. In paragraph (c)(5), Example (8) is

redesignated as Example (9) and newly

designated Example (9) is revised.

8. In paragraph (c)(5), Example (10)

is redesignated as Example (12) and the

first sentence of newly designated Example (12) is revised.

9. In paragraph (c)(5), new Examples

(8), (10), (11), (14), and (15), are added.

The additions and revisions read as

follows:

§ 25.2518-2 Requirements for a qualified disclaimer.

(3)(i) * * * With respect to transfers

made by a decedent at death or transfers

that become irrevocable at death, the

transfer creating the interest occurs on

the date of the decedent’s death, even if

an estate tax is not imposed on the

transfer. For example, a bequest of

foreign-situs property by a nonresident

alien decedent is regarded as a transfer

creating an interest in property even if

the transfer would not be subject to

estate tax. If there is a transfer creating

an interest in property during the

transferor’s lifetime and such interest is

later included in the transferor’s gross

estate for estate tax purposes (or would

have been included if such interest were

subject to estate tax), the 9-month period for making the qualified disclaimer

is determined with reference to the

earlier transfer creating the interest. In

the case of a general power of appointment, the holder of the power has a

9-month period after the transfer creating the power in which to disclaim. If a

person to whom any interest in property

passes by reason of the exercise, release,

or lapse of a general power desires to

make a qualified disclaimer, the disclaimer must be made within a 9-month

period after the exercise, release, or

lapse regardless of whether the exercise,

release, or lapse is subject to estate or

gift tax. * * *

(ii) Sentences 1, 3 through 10, and 12

of paragraph (c)(3)(i) of this section are

effective for transfers creating the interest to be disclaimed made after the date

of publication as final regulations in the

Federal Register.

(4) Joint property — (i) Interests that

are unilaterally severable. Except as

provided in paragraph (c)(4)(iv) of this

section with respect to joint bank accounts and joint brokerage accounts, in

the case of an interest in a joint tenancy

with right of survivorship or a tenancy

by the entirety that either joint tenant

can sever unilaterally under local law, a

qualified disclaimer of the interest to

which the disclaimant succeeds as donee

upon creation of the tenancy must be

made no later than 9 months after the

creation of the tenancy. A qualified

disclaimer of the survivorship interest to

which the survivor succeeds by operation of law upon the death of the first

joint tenant to die must be made no later

than 9 months after the death of the first

joint tenant to die. See, however, section

2518(b)(2)(B) for a special rule in the

case of disclaimers by persons under

age 21. Except as provided in paragraph

(c)(4)(iii) of this section (with respect to

certain tenancies in real property created

after 1954 and before 1982 and certain

tenancies created on or after July 14,

1988), the interest that may be disclaimed within 9 months after the death

of the first joint tenant to die is the

149

interest to which the disclaimant succeeds by right of survivorship, regardless of the portion of the property

attributable to consideration furnished

by the disclaimant and regardless of the

portion of the property that is included

in the decedent’s gross estate under

section 2040. See § 25.2518-2(c)(5),

Example (7).

(ii) Interests that are not unilaterally

severable. Except as provided in paragraph (c)(4)(iii) of this section with

respect to interests created after 1954

and before 1982 and certain interests

created after July 14, 1988, if an interest

in joint property with right of survivorship or an interest held as a tenant by

the entirety is not unilaterally severable

under local law, a qualified disclaimer

of the interest or any portion of the

interest must be made no later than 9

months after the transaction creating the

tenancy. A tenant by the entirety or

other cotenant who cannot unilaterally

sever the interest under applicable local

law cannot make a qualified disclaimer

of any portion of the joint interest to the

extent attributable to consideration furnished by that tenant even if the disclaimer is made within 9 months of the

creation of the tenancy. See § 25.25182(c)(5), Example (8).

(iii) Tenancies in real property between spouses created before 1982 and

certain tenancies in real property between spouses created on or after July

14, 1988. In the case of a joint tenancy

between spouses or a tenancy by the

entirety in real property created after

1954 and before 1982 where no election

was made under section 2515, or a joint

tenancy between spouses or a tenancy

by the entirety in real property created

on or after July 14, 1988, to which

section 2523(i)(3) applies (relating to

the creation of a tenancy where the

spouse of the donor is not a United

States citizen), the surviving spouse

must make a qualified disclaimer no

later than 9 months after the death of

the first spouse to die. The surviving

spouse may disclaim any portion of the

joint interest that is includible in the

decedent’s gross estate under section

2040. See § 25.2518-2(c)(5), Examples

(9) and (10).

(iv) Special rule for joint bank and

brokerage accounts established between

spouses or between persons other than

husband and wife. In the case of a

transfer to a joint bank account or a

joint brokerage account, if a transferor

may unilaterally withdraw the transferor’s own contributions from the ac-

1996–38

I.R.B.

count without the consent of the other

cotenant, the transfer creating the survivor’s interest in a decedent’s share of

the account occurs on the death of the

deceased cotenant. Accordingly, if a surviving joint tenant desires to make a

qualified disclaimer with respect to

funds contributed by a deceased

cotenant, the disclaimer must be made

within 9 months of the cotenant’s death.

The surviving joint tenant may not disclaim any portion of the joint account

attributable to consideration furnished

by that surviving joint tenant. See

§ 25.2518-2(c)(5), Examples 13, 14 and

15, regarding the treatment of disclaimed interests under sections 2518,

2033 and 2040.

(v) Effective date. This paragraph

(c)(4) is effective for disclaimers made

after the date of publication as final

regulations in the Federal Register.

(5) Examples. * * *

Example (7). On February 1, 1990, A purchased

real property with A’s funds. Title to the property

was conveyed to ‘‘A and B, as joint tenants with

right of survivorship.’’ Under applicable state law,

the joint interest is unilaterally severable by either

tenant. B dies on May 1, 1997, and is survived by

A. On January 1, 1998, A disclaims the one-half

survivorship interest in the property to which A

succeeds as a result of B’s death. Assuming that

the other requirements of section 2518(b) are

satisfied, A has made a qualified disclaimer of the

one-half survivorship interest (but not the interest

retained by A upon the creation of the tenancy,

which may not be disclaimed by A). The result is

the same whether or not A and B are married and

regardless of the proportion of consideration furnished by A and B in purchasing the property.

Example (8). On March 1, 1997, A purchases a

parcel of real property that is conveyed to A and

A’s spouse, B, as tenants by the entirety. A

provides the consideration for the purchase. Under

applicable state law, the tenancy cannot be unilaterally severed by either tenant. In order to be a

qualified disclaimer, any disclaimer by B of B’s

interest in the property must be made within 9

months of the creation of the tenancy (i.e., within

9 months of March 1, 1997). Since A provided the

entire consideration for the property and the

tenancy is not unilaterally severable, A may not

disclaim any interest in the tenancy.

Example (9). On March 1, 1977, H and W

purchase a tract of vacant land which is conveyed

to them as tenants by the entirety. The entire

consideration is paid by H. H does not elect, under

section 2515, to have the transaction treated as a

transfer for purposes of Chapter 12. H dies on

June 1, 1997. W can disclaim one-half of the joint

interest because this is the interest includible in

H’s gross estate under section 2040(b). Assuming

that W’s disclaimer is received by the executor of

H’s estate no later than 9 months after June 1,

1997, and the other requirements of section

2518(b) are satisfied, W’s disclaimer of one-half

of the property would be a qualified disclaimer

because the transfer which created W’s interest is

treated as not occurring until H’s death, since no

election was made under section 2515. The result

would be the same if the property was held in

1996–38

I.R.B.

joint tenancy with right of survivorship that was

unilaterally severable under local law.

Example (10). Assume the same facts as in

example (9) except that the land was purchased on

March 1, 1989, and W is not a United States

citizen. W has until 9 months after June 1, 1997,

to make a qualified disclaimer, and can disclaim

the entire joint interest because this is the interest

includible in H’s gross estate under section

2040(a). The result would be the same if the

property was held in joint tenancy with right of

survivorship that was unilaterally severable under

local law.

Example (11). In 1986, spouses A and B

purchased a personal residence taking title as joint

tenants with right of survivorship. Under applicable state law, the interest in the tenancy may be

unilaterally severed by either party. B dies on July

10, 1997. A wishes to disclaim the one-half

undivided interest to which A would succeed by

right of survivorship. If A makes the disclaimer,

the property interest would pass under B’s will to

their child C. C, an adult, and A resided in the

residence at B’s death and will continue to reside

there in the future. A continues to own a one-half

undivided interest in the property. Assuming that

the other requirements of section 2518(b) are

satisfied, A may make a qualified disclaimer with

respect to the one-half undivided survivorship

interest in the residence if A delivers the written

disclaimer to the personal representative of B’s

estate by April 10, 1998, since A is not deemed to

have accepted the interest or any of its benefits

prior to that time and A’s occupancy of the

residence after B’s death is consistent with A’s

retained undivided ownership interest.

Example (12). H and W, husband and wife,

reside in state X, a community property

state. * * *

Example (13). On July 1, 1990, A opens a bank

account that is held jointly with B, A’s spouse, and

transfers $50,000 of A’s money to the account. A

and B are United States citizens. A can regain the

entire account without B’s consent. The transfer is

not a completed gift under § 25.2511-1(h)(4). A

dies on August 15, 1997, and B disclaims the

entire amount in the bank account on October 15,

1997. Assuming that the remaining requirements

of section 2518(b) are satisfied, B made a qualified disclaimer under section 2518(a) because the

disclaimer was made within 9 months after A’s

death at which time B had succeeded to full

dominion and control over the account. Under

state law, B is treated as predeceasing A with

respect to the disclaimed interest. The disclaimed

account balance passes through A’s probate estate

and is no longer joint property includible in A’s

gross estate under section 2040. The entire account

is, instead, includible in A’s gross estate under

section 2033. The result would be the same if A

and B were not married.

Example (14). The facts are the same as

Example (13), except that B, rather than A, dies

on August 15, 1997. A may not make a qualified

disclaimer with respect to any of the funds in the

bank account, because A furnished the funds for

the entire account and A did not relinquish

dominion and control over the funds.

Example (15). The facts are the same as

Example (13), except that B disclaims 40 percent

of the funds in the account. Since, under state law,

B is treated as predeceasing A with respect to the

disclaimed interest, the 40 percent portion of the

account balance that was disclaimed passes as part

of A’s probate estate, and is no longer characterized as joint property. This 40 percent portion of

the account balance is, therefore, includible in A’s

gross estate under section 2033. The remaining 60

150

percent of the account balance that was not

disclaimed retains its character as joint property

and, therefore, is includible in A’s gross estate as

provided in section 2040(b). Therefore, 30 percent

(1/2 x 60 percent) of the account balance is

includible in A’s gross estate under section

2040(b), and a total of 70 percent of the aggregate

account balance is includible in A’s gross estate. If

A and B were not married, then the 40 percent

portion of the account subject to the disclaimer

would be includible in A’s gross estate as provided

in section 2033 and the 60 percent portion of the

account not subject to the disclaimer would be

includible in A’s gross estate as provided in

section 2040(a), because A furnished all of the

funds with respect to the account.

Margaret Milner Richardson,

Commissioner of Internal Revenue.

(Filed by the Office of the Federal Register on

August 20, 1996, 8:45 a.m., and published in the

issue of the Federal Register for August 21, 1996,

61 F.R. 43197)

Telephone Numbers on

Statements—Forms W–2G, 1098,

1099, and 8308—Penalty Waiver

Announcement 96–88

The Taxpayer Bill of Rights 2 (P.L.

104–168) requires payers to provide the

telephone number of a person to contact

on certain statements to recipients, generally Copy B of the forms listed below.

This number must provide direct access

to an individual who can answer questions about the statement. This new

requirement applies to the 1996 forms

due to recipients by January 31, 1997.

Because the legislation was enacted after the 1996 forms were printed, a

failure to include a phone number on

the 1996 statements will be considered

to have arisen from an event beyond the

control of the filer. As a result, the

penalty under section 6722 of the Internal Revenue Code will be waived for

reasonable cause if the next statement

required to be provided (generally for

1997) includes the phone number.

Although the penalty will be waived

for 1996, payers are encouraged to enter

the telephone number anywhere they

choose on the recipient statements. The

law requires that the information be

entered on Forms W–2G, 1098, 1099–A,

1099–B, 1099–DIV, 1099–G (excluding

state or local income tax refunds),

1099–INT, 1099–MISC (excluding fishing boat proceeds), 1099–OID, 1099–

PATR and 1099–S. However, payers

also are encouraged to furnish the telephone number on other Forms 1099.

The 1997 revisions of the forms listed

above will require that the telephone

number be included in the filer name

and address area. The telephone number

is not required on Copy A of paper

forms nor on magnetic media filed with

the IRS.

The telephone number also must be

provided on Form 8308, Report of a

Sale or Exchange of Certain Partnership

Interests, required to be furnished after

1996. Form 8308 is being revised accordingly.

Employee Plans and Exempt

Organizations; Requests for Certain

Determination Letters and

Applications For Recognition of

Exemption

Announcement 96–92

PURPOSE

This is to announce new ‘‘Where to

File’’ instructions for applications for

employee plans determination letters and

other letters and exempt organizations

applications for recognition of exemption from federal income tax, previously

sent to the Atlanta and Baltimore Key

District Offices of Internal Revenue.

BACKGROUND

The Internal Revenue Service is in

the process of centralizing the filing of

requests for determination and other

letters and applications for recognition

of tax exemption. Currently, plan sponsors and organizations file with one of

seven district offices depending on the

geographic location of the plan’s or

organization’s principal office or place

of business. Announcement 95–51, published in Internal Revenue Bulletin

1995–25 at page 132, announced that

centralization will be phased in by district.

The Service is also consolidating the

volume submitter and regional prototype

programs that are presently maintained

by each individual region. Plans previously approved by a key district office,

whose determination letter processing

program is being transferred to Cincinnati, will be reviewed using the same

criteria and procedures used by the

original district office. New guidelines

are being developed that will combine

the features and procedures currently in

use by the districts. Guidelines for the

revised volume submitter and regional

prototype programs will be explained in

a future announcement.

to the key district offices in Atlanta,

Georgia, and Baltimore, Maryland,

should be sent to the Internal Revenue

Service Center in Covington, Kentucky,

at the address shown below. (For a

period of time, requests and applications

mistakenly sent to the Atlanta and Baltimore Key District Offices will be forwarded.) The new address applies to

requests for determination letters, regional prototype notification letters and

volume submitter advisory letters, on the

qualified status of employee plans under

sections 401, 403(a), and 409, and the

exempt status of any related trust under

section 501 of the Internal Revenue

Code, applications for recognition of tax

exemption on Form 1023 and Form

1024, and other letter applications for

recognition of qualification or exemption. The affected plan sponsors and

organizations are those whose principal

office or place of business is located in

Alabama, Arkansas, Delaware, District

of Columbia, Florida, Georgia, Louisiana, Maryland, Mississippi, New Jersey,

North Carolina, Pennsylvania, South

Carolina, Tennessee, Virginia, or any

U.S. possession or foreign country.

These requests or applications should be

sent to:

Internal Revenue Service

P.O. Box 192

Covington, KY 41012–0192

Until further notice, plans and organizations in all other locations will continue to file their requests or applications in accordance with the instructions

in Section 7 of Revenue Procedure

96–8, published in Internal Revenue

Bulletin 1996–1 at page 187, and the

instructions on Form 8717, User Fee for

Employee Plan Determination Letter Request, or Form 8718, User Fee for

Exempt Organization Determination Letter Request.

General Revision of Regulations

Relating to Withholding of Tax on

Certain U.S. Source Income Paid to

Foreign Persons and Related

Collection, Refunds, and Credits;

Revision of Information Reporting

and Backup Withholding

Regulations; and Removal of

Regulations Under Part 35a and of

Certain Regulations Under Income

Tax Treaties; Correction

INSTRUCTIONS

Announcement 96–93

Beginning September 1, 1996, letter

requests and applications previously sent

AGENCY: Internal Revenue Service

(IRS), Treasury.

151

ACTION: Correction to notice of proposed rulemaking.

SUMMARY: This document contains

corrections to the notice of proposed

rulemaking (INTL–062–90; INTL–

0032–93; INTL–52–86; INTL–52–94

[1996–19 I.R.B. 26]) which was published in the Federal Register for Monday, April 22, 1996 (61 FR 17614). The

notice of proposed rulemaking relates to

the withholding of income tax under

sections 1441 and 1442 on certain U.S.

source income paid to foreign persons,

the related tax deposit and reporting

requirements under section 1461, and

the related collection, refunds, and credits of withheld tax under sections 1461

through 1463 and section 6402. In addition, the notice of proposed rulemaking

also relates to the statutory exemption

under sections 871(h) and 881(c) for

portfolio interest. The notice of proposed rulemaking proposes to remove

certain temporary employment tax regulations under the Interest and Dividend

Compliance Act of 1983 and to amend

existing regulations under sections

6041A and 6050N. The notice of proposed rulemaking also proposes changes

to proposed regulations contained in

project number INTL–52–86, published

on February 29, 1988 (53 FR 5991)

under sections 6041, 6042, 6045, and

6049. The document proposes related

changes to the regulations under sections 163(f), 165(j), 3401, 3406, 6114,

and 6413 and proposes further changes

to the proposed regulations under section 6109 contained in project number

IL–0024–94 published on June 8, 1995

(60 FR 30211). The document proposes

to remove certain regulations under income tax treaties.

FOR FURTHER INFORMATION CONTACT: Philip Garlett, (202) 622–3880

for questions on proposed regulations

under sections 1441, 1442, 1461, 1462,

1463, 3401, 6402, and 6413;

Gwendolyn Stanley, (202) 622–3860 for

questions on payments to partnerships;

Carl Cooper, (202) 622–3840 for questions on proposed regulations under section 163(f), 165(j), 871(h) and 881(c)

and on withholding agreements; Teresa

Burridge Hughes, (202) 622–3880 for

questions on proposed regulations under

section 6041 through 6049, 6050N;

Teresa Burridge Hughes, (202) 622–

3880 and Renay France, (202) 622–4910

for questions on proposed regulations

under section 3406; Elissa Shendalman,

(202) 622–3870 on proposed regulations

under sections 6045 and 6049 relating to

1996–38

I.R.B.

the reporting of payments made in a

currency other than the U.S. dollar or

transactions subject to section 988; Lilo

Hester, (202) 874–1490 for questions on

proposed regulations under section

6109; David F. Bergkuist, (202) 622–

3860 for questions on proposed regulations under section 6114 (numbers are

not toll-free).

SUPPLEMENTARY

INFORMATION:

Background

The notice of proposed rulemaking

that is the subject of these corrections

are under sections 163(f), 165(j), 871,

881, 1441, 1442, 1461, 1462, 1463,

3401, 3406, 6041, 6041A, 6042, 6045,

6049, 6050N, 6109, 6114, 6402, and

6413 of the Internal Revenue Code.

Need for Correction

As published, the notice of proposed

rulemaking (INTL–062–90; INTL–

0032–93; INTL–52–86; INTL–52–94)

contain errors which may prove to be

misleading and are in need of clarification.

Correction of Publication

Accordingly, the publication of the

notice of proposed rulemaking (INTL–

062–90; INTL–0032–93; INTL–52–86;

INTL–52–94) which is the subject of

FR Doc. 96–8936 is corrected as follows:

1. On page 17619, column 1, in the

preamble following the paragraph heading ‘‘Section 1.165–12 Denial of Deduction for Losses on Registration-Required

Obligations Not in Registered Form’’,

the last line in the first paragraph is

corrected to read ‘‘in Section 35a.9999–

4T, A–5 that the person is not a U.S.

person.’’ and the italicized heading preceding the second paragraph is removed.

2. On page 17621, column 1, in the

preamble following the paragraph heading ‘‘Section 1.1441–1 Requirement for

the Withholding of Tax on Payments to

Foreign Persons’’, line 16 from the top

of the column, the language ‘‘continue

to apply trusts. See § 1.1441–’’ is corrected to read ‘‘continue to apply to

trusts. See § 1.1441–’’.

3. On page 17621, column 3, in the

preamble following the paragraph heading ‘‘Section 1.1441–1 Requirement for

the Withholding of Tax on Payments to

Foreign Persons’’, the second full paragraph, line 3 from the bottom of the

paragraph, the language ‘‘§ 1.9999–

1996–38

I.R.B.

5(b), A9 and that are proposed’’ is

corrected to read ‘‘§ 35a.9999–5(b),

A–9 and that are proposed’’.

4. On page 17626, column 3, in the

preamble following the paragraph heading ‘‘Section 1.1441–4 Certain Exemptions From Withholding’’ the first full

paragraph, line 11, the language

‘‘(which expired on February, 1993). A’’

is corrected to read ‘‘(which expired on

February 2, 1993). A’’.

5. On page 17628, column 2, in the

preamble under the paragraph heading

‘‘Section 1.1441–7 General Provisions

Relating to Withholding Agents’’, the

italicized second paragraph from the

bottom of the column, is corrected to

read as follows:

Section 1.1441–7(b)(3) of the existing

regulations is proposed to be removed,

pending comments on the continuing

necessity of providing guidance on taxfree covenant bonds.

6. On page 17630, column 2, in the

preamble under the paragraph heading

‘‘Section 1.1461–1 Deposit and Return

of Tax Withheld’’, the last two paragraphs under that paragraph heading are

merged.

7. On page 17632, column 1, in the

preamble following the paragraph heading ‘‘Section 31.3401(a)(6)–1(e) Income

Exempt From Income Tax’’, line 18

from the top of the column, the language ‘‘withholding certificate should to

be’’ is corrected to read ‘‘withholding

certificate should be’’.

§ 1.871–14 [Corrected]

8. On page 17633, column 2,

§ 1.871–14(a), line 4 from the top of

the column, the language ‘‘871(h) or

882(a) if such interest is’’ is corrected to

read ‘‘871(b) or 882(a) if such interest

is’’.

12. On page 17638, column 2,

§ 1.1441–1(e)(4)(ii)(B), line 10, the language ‘‘1(c)(2)(ii) or the taxpayer identifying’’ is corrected to read ‘‘1(c)(2)(i) or

the taxpayer identifying’’.

13. On page 17641, column 2,

§ 1.1441–1(f)(3)(i), line 4, the language

‘‘is presumed made to a U.S. person if

the’’ is corrected to read ‘‘is presumed

made to a U.S. person unless the’’.

§ 1.1441–3 [Corrected]

14. On page 17645, column 3,

§ 1.1441–3(e)(2), line 17, the language

‘‘dollar amounts withheld from year to’’

is corrected to read ‘‘dollar amounts

withheld and from year to’’.

§ 1.1441–4 [Corrected]

15. On page 17647, column 2,

§ 1.1441–4(b)(2)(ii) introductory text,

line 6, the language ‘‘the penalties of

perjury, and contain the’’ is corrected to

read ‘‘penalties of perjury, and contain

the’’.

16. On page 17648, column 2,

§ 1.1441–4(f)(2), line 3, the language

‘‘a date that is 60 days after the date

these’’ is corrected to read ‘‘the date that

is 60 days after the date these’’.

§ 1.1441–6 [Corrected]

17. On page 17649, column 3,

§ 1.1441–6(b)(1), line 22 from the top

of the column, the language ‘‘meaning

of section 267(b) and 707(b),’’ is corrected to read ‘‘meaning of section

267(b) or 707(b),’’.

18. On page 17649, column 3,

§ 1.1441–6(b)(1), lines 31 and 32 from

the top of the column, the language

‘‘this chapter. See paragraph (d) of this

section for circumstances under which’’

is corrected to read ‘‘this chapter. See

§ 1.1441–1(e)(4)(v) for circumstances

under which’’.

§ 1.1441–1 [Corrected]

§ 1.1461–2 [Corrected]

9. On page 17635, column 1,

§ 1.1441–1(b), line 10, the language

‘‘of tax and for the withholding agent’’

is corrected to read ‘‘of tax and for

which the withholding agent’’.

10. On page 17636, column 2,

§ 1.1441–1(c)(6)(ii)(B), line 17 from

the top of the column, the language

‘‘payments made to a single foreign

entity’’ is corrected to read ‘‘payments

made to a single foreign entity’’.

11. On page 17637, column 3,

§ 1.1441–1(e)(3)(ii)(E), line 1, the language ‘‘If the information is not assuming’’ is corrected to read ‘‘If the qualified intermediary is not assuming’’.

19. On page 17656, column 3,

§ 1.1461–2(a)(2)(ii), line 8, the language ‘‘must provide a copy or such

receipt to’’ is corrected to read ‘‘must

provide a copy of such receipt to’’.

152

§ 1.6041–1 [Corrected]

20. On page 17657, column 3,

§ 1.6041–1(a)(1)(ii), line 14, the language ‘‘royalties); or section 6050P(a)

or (b)’’ is corrected to read ‘‘royalties);

or section 6050P(a) and (b)’’.

§ 1.6041–4 [Corrected]

21. On page 17658, column 2,

§ 1.6041–4(b)(1), line 8, the language

‘‘middleman. The term middleman’’ is

corrected to read ‘‘middleman and the

term middleman’’.

22. On page 17658, column 3,

§ 1.6041–4(d), line 10, the language

‘‘furnished such certification or’’ is corrected to read ‘‘furnished required certification or’’.

§ 1.6045–1 [Corrected]

23. On page 17660, column 3, amendatory instruction 4. under ‘‘Par. 34.’’,

is corrected to read as follows:

4. Revising paragraph (g)(1) heading;

removing paragraph (g)(1) introductory

text; and revising paragraphs (g)(1)(i)

and (g)(2) through (g)(4).

24. On page 17661, column 2,

§ 1.6045–1(g)(4)(ii), last line in the column, the language ‘‘holds a valid Form

W–8 on a date that’’ is corrected to read

‘‘holds a valid Form W–8 on the date

that’’.

§ 1.6049–4 [Corrected]

25. On page 17662, column 1,

§ 1.6049–4(c)(1)(ii)(A)(6), line 2 from

the top of the column, the language

‘‘established on or before a date that is

60’’ is corrected to read ‘‘established on

or before the date that is 60’’.

§ 1.6049–5 [Corrected]

26. On page 17664, column 1,

§ 1.6049–5(g)(2), line 2, the language

‘‘holds a valid Form W–8 on a date

that’’ is corrected to read ‘‘holds a valid

Form W–8 on the date that’’.

§ 1.6050N–1 [Corrected]

27. On page 17664, column 3,

§ 1.6050N–1(e)(2), line 2, the language

‘‘holds a valid Form W–8 on a date

that’’ is corrected to read ‘‘holds a valid

Form W–8 on the date that’’.

§ 31.3406(g)–1 [Corrected]

28. On page 17665, column 2,

§ 31.3406(g)–1(e), line 10, the language

‘‘evidence described in § 1.6049–

5(2)(ii)’’ is corrected to read ‘‘evidence

described in § 1.6049–5(c)(2)(ii)’’.

§ 301.6114–1 [Corrected]

29. On page 17666, column 2, amendatory instruction 3. under ‘‘Par. 49.’’ is

corrected to read as follows:

3. Revising paragraphs (c)(1) and

(d)(4)(v).

The revisions read as follows:

§ 301.6114–1 [Corrected]

30. On page 17666, column 3,

§ 301.6114–1(a)(1)(ii), line 7 from the

top of the column, the language ‘‘under

the penalties of perjury (as well’’ is

corrected to read ‘‘under penalties of

perjury (as well’’.

Cynthia E. Grigsby,

Chief, Regulations Unit,

Assistant Chief Counsel (Corporate).

(Filed by the Office of the Federal Register on

August 14, 1996, 8:45 a.m., and published in the

issue of the Federal Register for August 15, 1996,

61 F.R. 42401)

Foundations Status of Certain

Organizations

Announcement 96–94

The following organizations have

failed to establish or have been unable

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

after this date, rely on previous rulings

or designations in the Cumulative List

of Organizations (Publication 78), or on

the presumption arising from the filing

of notices under section 508(b) of the

Code. This listing does not indicate that

the organizations have lost their status

as organizations described in section

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

contributions.

Former Public Charities. The following organizations (which have been

treated as organizations that are not

private foundations described in section

509(a) of the Code) are now classified

as private foundations:

Adventists Womens Coalition, Walla

Walla, WA

American Counsel Scholarship

Foundation Inc., Roseland, NJ

Center for Military History, Los

Angeles, CA

Creative Experiences and Children, St.

Paul, MN

Delmiro Garcia Scholarship Foundation,

San Antonio, TX

Eastern Shore of Virginia Foundation,

Franktown, VA

East Hills Rehabilitation & Fitness

Institute Inc., Johnstown, PA

Ecomedia, Washington, DC

Educational Research Institute,

Philadelphia, PA

El Campo Memorial Hospital

Foundation, Inc., El Campo, TX

153

El Coqui Sports and Prevention League,

Lancaster, PA

Environmental Compliance Oversight

Corporation, Trevose, PA

EVT High School Alumni Association

Inc., Baltimore, MD

Faces of Hope Foundation, Washington,

Fairview Village Nursing Center,

Lewisberry, PA

Family Information Resource Support

Team Place Inc., Annandale, VA

Familyland Foundation, Inc., Ft. Myers,

Family Visions Inc., Penn Hills, PA

Fauquier Alliance for Recreation,

Warrenton, VA

Fauquier Veterans Memorial Committee

Inc., Warrenton, VA

Fellowship of Friends of African

Descent, Philadelphia, PA

Finefrock & Stumpfs Charlotte Street

Gym, Lancaster, PA

Fire Streak Ministry, Coatesville, PA

First Atlantic Inc., Laurel, MD

Fish, Williamsburg, VA

Foundation for Animal Rights Advocacy

Inc., Newark, NJ

Foundation for Plastic Surgery,

Annandale, VA

Francisville Community Development

Corporation, Philadelphia, PA

Frederick Non-Profit Building Supply

Inc., Frederick, MD

Freedoms Choice Inc., Vienna, VA

Friends of Carter Barron Cultural Arts

Society, Washington, DC

Friends of Jerusalem Inc., Washington,

Friends of John Castaldi Foundation

Inc., Philadelphia, PA

Friends of the Palette Place Art Gallery

Inc., New Brunswick, NJ

Friends of Saint Andrews Elementary

School Trust, Waynesboro, PA

Frontiers Associates Inc., Norfolk, VA

Full Life Incorporated, Annapolis, MD

Garabed Zambak Memorial Fund,

Springfield, PA

George Pittas Childrens Foundation Inc.,

Rockville, MD

George Washington Carver Vocational

Technical High Schl Foundation Inc.,

Baltimore, MD

Giles County Sheriffs Office Canteen,

Pearisburg, VA

Glebe Farm Group, Strausburg, VA

Global Awareness Society, Bloomsburg,

Go Direct, Inc., Stillwater, OK

Golden Tornado Foundation Inc., Butler,

Good News Ministries of America,

Philadelphia, PA

1996–38

I.R.B.

Gopal Charities Food for Life

Incorporated, Linthicum, MD

High West Center of Environmental

Policy Studies, Flagstaff, AZ

Information Center for Education,

Dallas, TX

Peanut Batter Players, Boulder, CO

Pros for Kids, Inc., Scottsdale, AZ

Rock County Club, Inc., Beloit, WI

Shared Medical Research Foundation,

Tarzana, CA

Sound of Sight Inc., Broomfield, CO

Tom Moore Community Music

Foundation, Inc., Houston, TX

1996–38

I.R.B.

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 founda-

154

tion status in the Internal Revenue Bulletin.

The following organization, which has

been treated as a private operating foundation described in section 4942(j)(3) of

the Code, has now been classified as an

organization that is not a private operating foundation. Grantors and contributors may no longer rely upon rulings or

determinations that this organization is a

private operating foundation. The organization is:

Citizen Policy Research Inc., East

Harwich, MA

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

San Diego, CA

CPA

July 5, 1996

Davis Jr., George L.

Washington, D.C.

Enrolled Agent

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

155

accountant, enrolled agent or enrolled

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

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

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

many weeks as is practicable for each

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

published in the Cumulative Bulletin.

The following individuals have been

placed under consent suspension from

practice before the Internal Revenue

Service:

Name

Address

Designation

Date of Suspension

Berry, James R.

Rohner Jr., Richard E.

Bova, Robert J.

Rines, Robert L.

Kimball, Randy

Cole, Sherman

Barretta, Samuel N.

Harris, Luis F.

Vourvoulias, James

Swan, Roy E.

Hamilton, Barry K.

Horton, Greta

Addabbo, Marie P.

Crouch Jr., Richard E.

Sanders Jr., Wilfred A.

Perkins, Nancy F.

Nichols, Oliver R.

Winiemko, Ronald C.

Pallman, William F.

Gannon, Martin C.

Andrews, Craig A.

Columbus, MO

Burr Ridge, IL

Tampa, FL

Concord, NH

Rancho Cucamonga, CA

Oklahoma City, OK

Southfield, MI

Orlando, FL

Park Ridge, IL

Salem, OR

Twins Falls, ID

Richland, VA

Manchester, CT

Miss’nViejo, CA

Orlando, FL

Apple Valley, MN

Meriden, CT

Sterl’g Hts, MI

Guilford, CT

Wallingford, CT

Hicksville, OH

CPA

Attorney

CPA

Attorney

CPA

Enrolled Agent

CPA

Attorney

CPA

June 5, 1996 to December 4, 1997

June 10, 1996 to June 9, 1997

June 10, 1996 to March 9, 1997

June 17, 1996 to December 16, 1998

July 1, 1996 to December 31, 1996

July 1, 1996 to March 31, 1997

August 1, 1996 to December 31, 1999

August 1, 1996 to October 31, 1996

August 1, 1996 to January 31, 1997

August 1, 1996 to September 30, 1996

Indefinite from August 2, 1996

September 1, 1996 to May 31, 1997

September 1, 1996 to February 28, 1999

September 1, 1996 to August 31, 1998

September 1, 1996 to November 30, 1996

September 1, 1996 to May 31, 1997

September 1, 1996 to February 28, 1999

September 30, 1996 to January 29, 1997

September 30, 1996 to December 29, 1996

September 30, 1996 to September 29, 1997

156

Announcement of the Expedited Suspension of Attorneys, Certified Public

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

Internal Revenue Service

Under title 31 of the Code of Federal

Regulations, section 10.76, the Director

of Practice is authorized to immediately

suspend from practice before the Internal

Revenue Service any practitioner who,

within five years, from the date the

expedited proceeding is instituted, (1)

has had a license to practice as an

attorney, certified public accountant, or

actuary suspended or revoked for cause;

or (2) has been convicted of any crime

under title 26 of the United States Code

or, of a felony under title 18 of the

United States Code involving dishonesty

or breach of trust.

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

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

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

or suspended from practice before the

Internal Revenue Service.

To enable attorneys, certified public

accountants, enrolled agents, and enrolled actuaries to identify practitioners

under expedited suspension from practice before the Internal Revenue Service,

the Director of Practice will announce in

the Internal Revenue Bulletin the names

and addresses of practitioners who have

been suspended from such practice, their

designation as attorney, certified public

accountant, enrolled agent or enrolled

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

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

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

many weeks as is practicable for each

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

suspended and will be consolidated and

published in the Cumulative Bulletin.

The following individuals have been

placed under suspension from practice

before the Internal Revenue Service by

virtue of the expedited proceeding provisions of the applicable regulations:

Name

Address

Designation

Date of Suspension

Bower, Lewis H.

Reiss, Irvin L.

Reynolds, Mark E.

Moore, Philip J.

Broek, Kevin J.

Bein, William

Henry, Gregory

Sadler, George A.

Fuhr IV, John Henry

Rakov, Harris J.

Perkell, Mark E.

Darrah, Robert J.

Constantino, Enrico J.

VanLoan, Jonathan A.

Bennett, John J.

Lavin-Munch, Carole A.

Tampa, FL

Newton, PA

Brownsburg, IN

Rome, GA

Omaha, NE

Beachwood, OH

Bradford, PA

Houston, TX

Dallas, TX

Mahwah, NJ

S. Burlington, VT

Neola, IA

Bay Shore, NY

Frazer, PA

Milford, CT

Merrionette Pk, IL

CPA

Attorney

CPA

Attorney

CPA

Attorney

CPA

Attorney

CPA

Indefinite from May 30, 1996

Indefinite from June 4, 1996

Indefinite from July 1, 1996

Indefinite from July 10, 1996

Indefinite from August 1, 1996

Indefinite from August 21, 1996

Indefinite from August 27, 1996

157

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.

158

Numerical Finding List1

Bulletins 1996–27 through 1996–37

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

96–89, 1996–37 I.R.B. 22

96–90, 1996–37 I.R.B. 22

96–91, 1996–37 I.R.B. 23

Court Decisions:

2058, 1996–34 I.R.B. 13

2059, 1996–34 I.R.B. 10

2060, 1996–34 I.R.B. 5

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

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

Tax Conventions:

1996–28 I.R.B. 36

1996–36 I.R.B. 6

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

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

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

Public Laws:

104–117, 1996–34 I.R.B. 19

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.

159

Finding List of Current Action on

Previously Published Items1

Bulletins 1996–27 through 1996–37

*Denotes entry since last publication

Revenue Procedures:

80–27

Modified by

96–40, 1996–32 I.R.B. 8

87–32

Modified by

TD 8680, 1996–33 I.R.B. 5

92–20

Modified by

TD 8680, 1996–33 I.R.B. 5

95–29

Superseded by

96–36, 1996–27 I.R.B. 11

95–29A

Superseded by

96–36, 1996–27 I.R.B. 11

95–30

Superseded by

96–42, 1996–32 I.R.B. 14

A cumulative finding list for previously published

items mentioned in Internal Revenue Bulletins

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

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

160

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.