Bulletin No. 1996–47
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Bulletin No. 1996–47
November 18, 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
ADMINISTRATIVE
Rev. Rul. 96–54, page 5.
LIFO; price indexes; department stores. The September 1996 Bureau of Labor Statistics price indexes are
accepted for use by department stores employing the
retail inventory and last-in, first-out inventory methods
for valuing inventories for tax years ended on, or with
reference to, September 30, 1996.
Rev. Proc. 96–51, page 10.
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 in addition to those
published in Rev. Proc. 96–46, 1996–38 I.R.B. 144.
This procedure also publishes the total amounts of
unused housing credit carryovers allocated to qualified
states under section 42(h)(3)(D) for calendar year 1996.
Rev. Proc. 96–46 supplemented.
EMPLOYEE PLANS
Rev. Rul. 96–53, page 4.
Covered compensation tables; 1997. The covered
compensation tables, for the 1997 calendar year for
determining contributions to defined benefit plans and
permitted disparity, are set forth.
Rev. Proc. 96–50, page 10.
Tax-sheltered annuities; correction program; extension. The TVC program, whereby certain plans within the
meaning of section 403(b) of the Code may voluntarily
correct certain operational defects in section 403(b)
tax-sheltered annuities and receive a “correction statement” from the National Office, is extended.
Notice 96–55, page 7.
Retirement plans; 1997 cost-of-living adjustments.
Cost-of-living adjustments effective January 1, 1997,
applicable to the dollar limits on benefits under qualified
defined benefit pension plans and to other provisions
affecting certain plans of deferred compensation, are
set forth.
EXEMPT ORGANIZATIONS
Announcement 96–120, page 12.
A list is given of organizations now classified as private
foundations.
Finding Lists begin on page 17.
Announcements of Disbarments and Suspensions begin on page 14.
Notice 96–56, page 7.
This notice shows the amount that is exempt from levy
on an individual’s wages, salary, and other income
under section 6334(d) of the Code.
Notice 96–57, page 9.
Information reporting; Indian tribal casinos. The reporting requirements for cash transactions of more than
$10,000, from gaming activities of certain Indian tribal
casinos, are clarified.
Announcement 96–121, page 12.
The Treasury Department and the IRS are soliciting
comments on issues to be considered in developing
guidance under the newly enacted FASIT provisions of
the Code.
Announcement 96–122, page 13.
The 1996 update and future quarterly updates of
Publication 938, Real Estate Mortgage Investment Conduits (REMICs) Reporting Information (And Other Collateralized Debt Obligations (CDOs)), will be available
only on the Internet and the IRS Electronic Bulletin
Board.
Mission of the Service
The purpose of the Internal Revenue Service is to
collect the proper amount of tax revenue at the least
cost; serve the public by continually improving the
quality of our products and services; and perform in a
manner warranting the highest degree of public
confidence in our integrity, efficiency and fairness.
Statement of Principles
of Internal Revenue
Tax Administration
The Service also has the responsibility of applying
and administering the law in a reasonable,
practical manner. Issues should only be raised by
examining of ficers when they have merit, never
arbitrarily or for trading purposes. At the same
time, the examining officer should never hesitate
to raise a meritorious issue. It is also important
that care be exercised not to raise an issue or to
ask a court to adopt a position inconsistent with
an established Service position.
The function of the Internal Revenue Service is to
administer the Internal Revenue Code. Tax policy
for raising revenue is determined by Congress.
With this in mind, it is the duty of the Service to
carry out that policy by correctly applying the laws
enacted by Congress; to determine the reasonable
meaning of various Code provisions in light of the
Congressional purpose in enacting them; and to
perform this work in a fair and impartial manner,
with neither a government nor a taxpayer point of view.
Administration should be both reasonable and
vigorous. It should be conducted with as little
delay as possible and with great cour tesy and
considerateness. It should never try to overreach,
and should be reasonable within the bounds of law
and sound administration. It should, however, be
vigorous in requiring compliance with law and it
should be relentless in its attack on unreal tax
devices and fraud.
At the heart of administration is interpretation of the
Code. It is the responsibility of each person in the
Service, charged with the duty of interpreting the
law, to try to find the true meaning of the statutory
provision and not to adopt a strained construction in
the belief that he or she is ‘‘protecting the revenue.’’
The revenue is properly protected only when we ascertain and apply the true meaning of the statute.
2
Introduction
The Internal Revenue Bulletin is the authoritative instrument of the Commissioner of Internal Revenue for
announcing official rulings and procedures of the Internal Revenue Service and for publishing Treasury Decisions, Executive Orders, Tax Conventions, legislation,
court decisions, and other items of general interest. It is
published weekly and may be obtained from the Superintendent of Documents on a subscription basis. Bulletin
contents of a permanent nature are consolidated semiannually into Cumulative Bulletins, which are sold on a
single-copy basis.
court decisions, rulings, and procedures must be considered, and Service personnel and others concerned are
cautioned against reaching the same conclusions in
other cases unless the facts and circumstances are
substantially the same.
The Bulletin is divided into four parts as follows:
Part I.—1986 Code.
This part includes rulings and decisions based on
provisions of the Internal Revenue Code of 1986.
It is the policy of the Service to publish in the Bulletin all
substantive rulings necessary to promote a uniform
application of the tax laws, including all rulings that
supersede, revoke, modify, or amend any of those
previously published in the Bulletin. All published rulings
apply retroactively unless otherwise indicated. Procedures relating solely to matters of internal management
are not published; however, statements of internal
practices and procedures that affect the rights and
duties of taxpayers are published.
Part II.—Treaties and Tax Legislation.
This part is divided into two subparts as follows:
Subpart A, Tax Conventions, and Subpart B, Legislation
and Related Committee Reports.
Part III.—Administrative, Procedural, and Miscellaneous.
To the extent practicable, pertinent cross references to
these subjects are contained in the other Parts and
Subparts. Also included in this part are Bank Secrecy
Act Administrative Rulings. Bank Secrecy Act Administrative Rulings are issued by the Department of the
Treasury’s Office of the Assistant Secretary (Enforcement).
Revenue rulings represent the conclusions of the Service on the application of the law to the pivotal facts
stated in the revenue ruling. In those based on positions
taken in rulings to taxpayers or technical advice to
Service field offices, identifying details and information
of a confidential nature are deleted to prevent unwarranted invasions of privacy and to comply with statutory
requirements.
Part IV.—Items of General Interest.
With the exception of the Notice of Proposed Rulemaking and the disbarment and suspension list included in
this part, none of these announcements are consolidated in the Cumulative Bulletins.
Rulings and procedures reported in the Bulletin do not
have the force and effect of Treasury Department
Regulations, but they may be used as precedents.
Unpublished rulings will not be relied on, used, or cited
as precedents by Service personnel in the disposition of
other cases. In applying published rulings and procedures, the effect of subsequent legislation, regulations,
The first Bulletin for each month includes an index for
the matters published during the preceding month.
These monthly indexes are cumulated on a quarterly and
semiannual basis, and are published in the first Bulletin
of the succeeding quarterly and semi-annual period,
respectively.
The contents of this publication are not copyrighted and may be reprinted freely. A citation of the Internal Revenue Bulletin as the source would be appropriate.
For sale by the Superintendent of Documents U.S. Government Printing Office, Washington, D.C. 20402.
3
Part I. Rulings and Decisions Under the Internal Revenue Code of 1986
Section 42.—Low-Income Housing
Credit
26 CFR 1.42–14: Allocation rules for post-1989
State housing credit ceiling amounts.
This procedure supplements Rev. Proc. 96–46,
1996–38 I.R.B. 144, by publishing amounts of
unused housing credit carryovers allocated to
qualified states under § 42(h)(3)(D) of the Internal
Revenue Code for calendar year 1996 in addition
to those published in Rev. Proc. 96–46. This
revenue procedure also publishes the total amounts
of unused housing credit carryovers allocated to
qualified states under § 42(h)(3)(D) for calendar
year 1996.
Section 401.—Qualified Pension,
Profit-Sharing, and Stock Bonus
Plans
Covered compensation tables; 1997.
The covered compensation tables for the
1997 calendar year for determining contributions to defined benefit plans and
permitted disparity are set forth.
Rev. Rul. 96–53
This revenue ruling provides tables of
covered compensation under § 401(l)(5)(E) of the Internal Revenue Code (the
‘‘Code’’) and the Income Tax Regulations, thereunder, for the 1997 plan year.
Section 401(l)(5)(E)(i) defines covered compensation with respect to an
employee, as the average of the contribution and benefit bases in effect under
§ 230 of the Social Security Act (the
‘‘Act’’) for each year in the 35-year
period ending with the year in which the
employee attains social security retirement age.
Section 401(l)(5)(E)(ii) of the Code
states that the determination for any
year preceding the year in which the
employee attains social security retirement age shall be made by assuming
that there is no increase in covered
compensation after the determination
year and before the employee attains
social security retirement age.
Section 1.401(l)–1(c)(34) of the regulations defines the taxable wage base as
the contribution and benefit base under
§ 230 of the Act.
Section 1.401(l)–1(c)(7)(i) defines
covered compensation for an employee
as the average (without indexing) of the
taxable wage bases in effect for each
calendar year during the 35-year period
ending with the last day of the calendar
year in which the employee attains (or
will attain) social security retirement
age. A 35-year period is used for all in-
dividuals regardless of the year of birth
of the individual. In determining an
employee’s covered compensation for a
plan year, the taxable wage base for all
calendar years beginning after the first
day of the plan year is assumed to be
the same as the taxable wage base in
effect as of the beginning of the plan
year. An employee’s covered compensation for a plan year beginning after the
35-year period applicable under
§ 1.401(l)–1(c)(7)(i) is the employee’s
covered compensation for a plan year
during which the 35-year period ends.
An employee’s covered compensation
for a plan year beginning before the
35-year period applicable under
§ 1.401–1(c)(7)(i) is the taxable wage
base in effect as of the beginning of the
plan year.
Section 1.401(l)–1(c)(7)(ii) provides
that, for purposes of determining the
amount of an employee’s covered compensation under § 1.401(l)–1(c)(7)(i), a
plan may use tables, provided by the
Commissioner, that are developed by
rounding the actual amounts of covered
compensation for different years of
birth.
For purposes of determining covered
compensation for the 1997 year the
taxable wage base is $65,400.
The following tables provide covered
compensation for 1997:
1997 Covered Compensation Table
Calendar Year
of Social
Calendar
Security
1997
Year of
Retirement
Covered
Birth
Age
Compensation
1907
1908
1909
1910
1911
1912
1913
1914
1915
1916
1917
1918
1919
1920
1921
1922
1923
1924
1925
1926
1972
1973
1974
1975
1976
1977
1978
1979
1980
1981
1982
1983
1984
1985
1986
1987
1988
1989
1990
1991
4
$4,488
4,704
5,004
5,316
5,664
6,060
6,480
7,044
7,692
8,460
9,300
10,236
11,232
12,276
13,368
14,520
15,708
16,968
18,312
19,728
Calendar Year
of Social
Calendar
Security
1997
Retirement
Covered
Year of
Birth
Age
Compensation
1927
1928
1929
1930
1931
1932
1933
1934
1935
1936
1937
1938
1939
1940
1941
1942
1943
1944
1945
1946
1947
1948
1949
1950
1951
1952
1953
1954
1955
1956
1957
1958
1959
1960
1961
1962
1963
1964 or
later
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2022
2023
2024
2025
2026
2027
2028
2029
2030
21,192
22,716
24,312
25,920
27,576
29,304
31,032
32,772
34,500
36,180
37,860
41,148
42,792
44,448
46,056
47,616
49,104
50,568
52,008
53,400
54,768
55,980
57,108
58,128
59,064
59,916
60,708
61,440
62,724
63,312
63,804
64,212
64,560
64,836
65,064
65,196
65,316
2031
65,400
1997 Rounded Covered
Compensation Table
Year of Birth
Covered
Compensation
1932–1933
1934
1935–1936
1937
1938–1939
1940–1941
1942–1943
1944–1945
1946–1947
1948–1950
1951–1954
$30,000
33,000
36,000
39,000
42,000
45,000
48,000
51,000
54,000
57,000
60,000
1997 Rounded Covered
Compensation Table—Continued
Year of Birth
Covered
Compensation
1955–1957
1958 or later
63,000
65,400
Drafting Information
The principal author of this revenue
ruling is Donna Prestia of the Employee
Plans Division. For further information
regarding this revenue ruling, call (202)
622–6076 between 2:30 and 4:00 Eastern time (not a toll free number) Monday thru Thursday. Ms. Prestia’s number
is (202) 622–7377 (also not a toll free
number).
Section 472.—Last-in, First-out
Inventories
26 CFR 1.472–1: Last-in, first-out inventories.
LIFO; price indexes; department
stores. The September 1996 Bureau of
Labor Statistics price indexes are accepted for use by department stores
employing the retail inventory and lastin, first-out inventory methods for valuing inventories for tax years ended on,
or with reference to, September 30,
1996.
Rev. Rul. 96–54
The following Department Store Inventory Price Indexes for September
1996 were issued by the Bureau of
Labor Statistics on October 16, 1996.
The indexes are accepted by the Internal
Revenue Service, under § 1.472–1(k) of
the Income Tax Regulations and Rev.
Proc. 86–46, 1986–2 C.B. 739, for appropriate application to inventories of
department stores employing the retail
inventory and last-in, first-out inventory
methods for tax years ended on, or with
reference to, September 30, 1996.
The Department Store Inventory Price
Indexes are prepared on a national basis
and include (a) 23 major groups of
departments, (b) three special combinations of the major groups - soft goods,
durable goods, and miscellaneous goods,
and (c) a store total, which covers all
departments, including some not listed
separately, except for the following:
candy, foods, liquor, tobacco, and contract departments.
BUREAU OF LABOR STATISTICS, DEPARTMENT STORE
INVENTORY PRICE INDEXES BY DEPARTMENT GROUPS
(January 1941 = 100, unless otherwise noted)
Groups
Sep. 1995
Sep. 1996
Percent Change
from Sep. 1995
to Sep. 19961
Piece Goods . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Domestics and Draperies . . . . . . . . . . . . . . . . . . . . . . . . .
Women’s and Children’s Shoes . . . . . . . . . . . . . . . . . . . .
Men’s Shoes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Infants’ Wear. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Women’s Underwear . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Women’s Hosiery . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Women’s and Girls’ Accessories . . . . . . . . . . . . . . . . . . .
Women’s Outerwear and Girls’ Wear . . . . . . . . . . . . . . .
Men’s Clothing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Men’s Furnishings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Boys’ Clothing and Furnishings . . . . . . . . . . . . . . . . . . .
Jewelry . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Notions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Toilet Articles and Drugs. . . . . . . . . . . . . . . . . . . . . . . . .
Furniture and Bedding . . . . . . . . . . . . . . . . . . . . . . . . . . .
Floor Coverings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Housewares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Major Appliances . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Radio and Television . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Recreation and Education2 . . . . . . . . . . . . . . . . . . . . . . . .
Home Improvements2 . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Auto Accessories2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
538.3
663.4
646.4
926.9
627.1
517.1
285.7
555.5
418.9
619.5
558.7
482.8
1031.4
803.3
863.0
665.6
563.1
798.9
249.7
81.7
114.3
121.7
106.9
534.8
644.1
647.9
916.1
631.9
536.0
289.0
557.1
407.2
612.0
573.6
489.8
1040.3
795.2
895.9
675.6
589.9
810.0
247.1
77.2
111.4
125.9
107.0
20.7
22.9
0.2
21.2
0.8
3.7
1.2
0.3
22.8
21.2
2.7
1.4
0.9
21.0
3.8
1.5
4.8
1.4
21.0
25.5
22.5
3.5
0.1
Groups 1–15: Soft Goods . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
596.7
596.8
0.0
Groups 16–20: Durable Goods . . . . . . . . . . . . . . . . . . . . . . . . .
470.1
469.0
20.2
114.0
112.6
21.2
553.2
552.2
20.2
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.
19.
20.
21.
22.
23.
2
Groups 21–23: Misc. Goods . . . . . . . . . . . . . . . . . . . . . . . . . .
3
Store Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1
Absence of a minus sign before percentage change in this column signifies price increase.
Indexes on a January 1986=100 base.
3
The store total index covers all departments, including some not listed separately, except for the following: candy, foods,
liquor, tobacco, and contract departments.
2
5
DRAFTING INFORMATION
The principal author of this revenue ruling is Stan Michaels of the
Office of Assistant Chief Counsel
(Income Tax and Accounting). For
further information regarding this
revenue ruling, contact Mr. Michaels
6
on (202) 622–4970 (not a toll-free
call).
Part III. Administrative, Procedural, and Miscellaneous
1997 Pension Plan Limitations1
Notice 96–55
Section 415 of the Internal Revenue
Code provides for dollar limitations on
benefits and contributions under qualified plans. Section 415 also requires that
the Commissioner annually adjust these
limits for cost-of-living increases. Other
limitations applicable to deferred compensation plans are also affected by
these adjustments.
Effective January 1, 1997, the limitation for the annual benefit under
§ 415(b)(1)(A) for defined benefit plans
is increased from $120,000 to $125,000.
For participants who separated from
service before January 1, 1997, the
limitation for defined benefit plans under § 415(b)(1)(B) is computed by multiplying the participant’s compensation
limitation, as adjusted through 1996 by
1.0294. The limitation for defined contribution plans under § 415(c)(1)(A) remains unchanged at $30,000.
The Code provides that various other
dollar amounts are to be adjusted at the
1
Based on News Release IR-96-43, dated October
24, 1996.
same time and in the same manner as
the dollar limitation of § 415(b)(1)(A)
is adjusted. These dollar amounts and
the adjusted amounts are as follows:
The special limitation for qualified
police or firefighters under § 415(b)(2)(G) is increased from $66,000 to
$70,000.
The limitation on the exclusion for
elective deferrals under § 402(g)(1) remains unchanged at $9,500.
The dollar amount under § 409(o)(1)(C)(ii) for determining the maximum
account balance in an employee stock
ownership plan subject to a 5-year distribution period is increased from
$690,000 to $710,000, while the dollar
amount used to determine the lengthening of the 5-year distribution period is
increased from $135,000 to $140,000.
The threshold amount under
§ 4980A(c)(1)(B) regarding excess distributions is increased from $155,000 to
$160,000.
The limitation used in the definition
of highly compensated employee under
§ 414(q)(1)(B), as amended by the
Small Business Job Protection Act of
1996, is $80,000.
The annual compensation limit under
§§ 401(a)(17) and 404(l) is increased
from $150,000 to $160,000.
The compensation amount under
§ 408(k)(2)(C) regarding simplified employee pension plans (SEPs) remains
unchanged at $400. The compensation amount under § 408(k)(3)(C) for
SEPs is increased from $150,000 to
$160,000.
The compensation amount under
§ 408(p)(2)(A) regarding simple retirement accounts, as added by § 1421 of
the Small Business Job Protection Act
of 1996, is $6,000.
The limitation on deferrals under
§ 457(b)(2) and (c)(1) concerning eligible deferred compensation plans of
state and local governments and of
tax-exempt organizations remains unchanged at $7,500.
Administrators of defined benefit or
defined contribution plans that have received favorable determination letters
should not request new determination
letters solely because of yearly amendments to adjust maximum limitations in
the plans.
Tables for Figuring Amount Exempt from Levy on Wages, Salary, and Other Income
Notice 96–56
1. Table for Figuring Amount Exempt from Levy on Wages, Salary, and Other Income (Forms 668–W, 668–W(c), &
668–W(c)(DO)) 1997
Publication 1494, shown below, provides tables which show the amount of an individual’s income that is exempt from a
notice of levy used to collect delinquent tax in 1997.
(Amounts are for each pay period.)
Filing Status: Single
Pay
Period
Number of Exemptions Claimed on Statement
1
2
3
4
5
6
More Than 6
Daily
26.15
36.35
46.54
56.73
66.92
77.12
15.96 plus 10.19 for
each exemption
Weekly
130.77
181.73
232.69
283.65
334.62
385.58
79.81 plus 50.96 for
each exemption
Biweekly
261.54
363.46
465.38
567.31
669.23
771.15
159.62 plus 101.92 for
each exemption
Semimonthly
283.33
393.75
504.17
614.58
725.00
835.42
172.92 plus 110.42 for
each exemption
Monthly
566.67
787.50
1008.33
1229.17
1450.00
1670.83
345.83 plus 220.83 for
each exemption
7
Filing Status: Unmarried Head of Household
Pay
Period
Number of Exemptions Claimed on Statement
1
2
3
4
5
6
More Than 6
Daily
33.46
43.65
53.85
64.04
74.23
84.42
23.27 plus 10.19 for
each exemption
Weekly
167.31
218.27
269.23
320.19
371.15
422.12
116.35 plus 50.96 for
each exemption
Biweekly
334.62
436.54
538.46
640.38
742.31
844.23
232.69 plus 101.92 for
each exemption
Semimonthly
362.50
472.92
583.33
693.75
804.17
914.58
252.08 plus 110.42 for
each exemption
Monthly
725.00
945.83
1166.67
1387.50
1608.33
1829.17
504.17 plus 220.83 for
each exemption
Filing Status: Married Filing Joint (and Qualifying Widow(er)s)
Pay
Period
Number of Exemptions Claimed on Statement
1
2
3
4
5
6
More Than 6
Daily
36.73
46.92
57.12
67.31
77.50
87.69
26.54 plus 10.19 for
each exemption
Weekly
183.65
234.62
285.58
336.54
387.50
438.46
132.69 plus 50.96 for
each exemption
Biweekly
367.31
469.23
571.15
673.08
775.00
876.92
265.38 plus 101.92 for
each exemption
Semimonthly
397.92
508.33
618.75
729.17
839.58
950.00
287.50 plus 110.42 for
each exemption
Monthly
795.83
1016.67
1237.50
1458.33
1679.17
1900.00
575.00 plus 220.83 for
each exemption
Filing Status: Married Filing Separate
Pay
Period
Number of Exemptions Claimed on Statement
1
2
3
4
5
6
More Than 6
Daily
23.46
33.65
43.85
54.04
64.23
74.42
13.27 plus 10.19 for
each exemption
Weekly
117.31
168.27
219.23
270.19
321.15
372.12
66.35 plus 50.96 for
each exemption
Biweekly
234.62
336.54
438.46
540.38
642.31
744.23
132.69 plus 101.92 for
each exemption
Semimonthly
254.17
364.58
475.00
585.42
695.83
806.25
143.75 plus 110.42 for
each exemption
Monthly
508.33
729.17
950.00
1170.83
1391.67
1612.50
287.50 plus 220.83 for
each exemption
8
2. Table for Figuring Additional Exempt Amount for Taxpayers at Least 65 Years Old and/or Blind
Additional Exempt Amount
Filing Status
*
Daily
Wkly
Bi-Wkly
Semi-Mthly
Monthly
Single or Head
of Household
1
2
3.85
7.69
19.23
38.46
38.46
76.92
41.67
83.33
83.33
166.67
Any Other
Filing Status
1
2
3
4
3.08
6.15
9.23
12.31
15.38
30.77
46.15
61.54
30.77
61.54
92.31
123.08
33.33
66.67
100.00
133.33
66.67
133.33
200.00
266.67
* ADDITIONAL STANDARD DEDUCTION claimed on Parts 3, 4, & 5 of levy.
Examples
These tables show the amount exempt from a levy on wages, salary, and other income. For example:
1. A single taxpayer who is paid weekly and claims three exemptions (including one for the taxpayer) has $232.69 exempt
from levy.
2. If the taxpayer in number 1 is over 65 and writes 1 in the ADDITIONAL STANDARD DEDUCTION space on Parts 3, 4,
& 5 of the levy, $251.92 is exempt from this levy ($232.69 plus $19.23).
3. A taxpayer who is married, files jointly, is paid bi-weekly, and claims two exemptions (including one for the taxpayer) has
$469.23 exempt from levy.
4. If the taxpayer in number 3 is over 65 and has a spouse who is blind, this taxpayer should write 2 in the ADDITIONAL
STANDARD DEDUCTION space on Parts 3, 4, & 5 of the levy. Then, $530.77 is exempt from this levy ($469.23 plus
$61.54).
Indian Tribal Casinos and Reporting
Under Title 31
Notice 96–57
This notice clarifies the reporting requirements under the Internal Revenue
Code for cash transactions of more than
$10,000 from gaming activities for Indian tribal casinos with gross annual
gaming revenues in excess of $1 million
and with operations on Indian tribal
lands. Effective August 1, 1996, these
tribal casinos must comply with the
currency transaction reporting, recordkeeping, and compliance-program requirements of the Bank Secrecy Act
(BSA), 31 U.S.C. §§ 5311–5330 (1994).
As a result, these tribal casinos are not
required to report certain transactions
under § 6050I of the Internal Revenue
Code.
Section 6050I(a) generally requires
any person who is engaged in a trade or
business and who, in the course of that
trade or business, receives cash in excess of $10,000 in one transaction (or
two or more related transactions) to file
an IRS Form 8300 (Report of Cash
Payments Over $10,000 Received in a
Trade or Business) with the Internal
Revenue Service. However, § 6050I(c)
(1) provides an exception from the reporting requirements of § 6050I(a) for
cash received in a transaction reported
under Title 31, if the Secretary determines that reporting under § 6050I
would be duplicative.
The BSA and the regulations under
Title 31 require certain financial institutions to report the receipt (or disbursement) of cash of more than $10,000
from certain transactions. See 31 U.S.C.
§ 5313 (1994) and 31 C.F.R.
§ 103.22(a)(2) (1996). Under § 5312(a)
(2)(x) of the BSA and 31 C.F.R.
§ 103.11(n)(7)(i) the term ‘‘financial institution’’ includes a casino that has
gross annual gaming revenues (as described in 31 C.F.R. § 103.11(n)(7)(ii))
in excess of $1 million.
Effective August 1, 1996, 31 C.F.R.
§ 103.11(n)(7)(i) was amended to provide that the term ‘‘casino’’ means a
casino or gambling casino that is duly
licensed or authorized to do business as
such in the United States, whether under
the laws of a State or of a Territory or
Insular Possession of the United States,
or under the Indian Gaming Regulatory
Act or other federal, state, or tribal law
or arrangement affecting Indian lands
(including, without limitation, a casino
operating on the assumption or under
the view that no such authorization is
required for casino operation on Indian
lands), and that has gross annual gaming
9
revenue in excess of $1 million. 61 Fed.
Reg. 7055 (1996). This amendment is
intended to apply only to Class III
casinos.
Accordingly, effective August 1,
1996, any Class III Indian tribal casino
having gross annual gaming revenue in
excess of $1 million that engages in a
cash transaction of more than $10,000
(as defined in 31 C.F.R. § 103.22(a)(2))
with respect to gaming activities must
report that transaction under 31 U.S.C.
§ 5313 and the regulations thereunder
and satisfy applicable recordkeeping and
compliance-program requirements of 31
C.F.R. § 103. Such a casino is not also
required to report that transaction under
§ 6050I of the Code.
Section 6050I continues to apply,
however, to a transaction in which cash
of more than $10,000 is received by
such a casino from a nongaming business activity (such as a shop, restaurant,
entertainment, or hotel). See 26 C.F.R.
§ 1.6050I–1(d)(2)(iii).
This notice does not affect the current
reporting requirements applicable to a
Class II gaming establishment.
DRAFTING INFORMATION
The principal author of this notice is
Renay France of the Office of Assistant
Chief Counsel (Income Tax and Accounting). For further information on the
provisions in this notice concerning
§ 6050I, contact Ms. France at 202–
622–4940 (not a toll-free number). For
further information on the provisions in
the notice concerning Title 31, contact
Mr. Stephen Kroll at 703–905–3534 or
Mr. Peter Djinis at 703–905–3930 at the
Financial Crimes Enforcement Network
(not toll-free numbers).
26 CFR 601.202: Closing agreements.
Rev. Proc. 96–50
SECTION 1. PURPOSE
This revenue procedure modifies Rev.
Proc. 95–24, 1995–1 C.B. 694, concerning the Tax Sheltered Annuity Voluntary
Correction (TVC) Program by extending
the last day for submissions under the
TVC Program.
SECTION 2. BACKGROUND
Effective May 1, 1995, the Internal
Revenue Service established the TVC
Program as an experimental program
that is available through October 31,
1996, for 403(b) plans that are not under
an Employee Plans or Exempt Organizations examination. The TVC Program
generally permits an eligible employer
to correct operational defects in the
employer’s 403(b) plan that are specifically described in Section 7 of Rev.
Proc. 95–24 and not excepted from
coverage under the program under Section 5 of that revenue procedure. An
employer pays a voluntary correction
fee based on the number of its employees and a sanction with respect to the
corrected defects. Correction must be
made for all years of the defects. In
general, excise taxes are not waived
under the TVC Program, and the employer is still responsible for payment of
Federal Insurance Contributions Act
(FICA) taxes in appropriate circumQualified State
Alabama
Alaska
Arizona
California
Colorado
Connecticut
Florida
Hawaii
stances. At the end of the TVC process,
the employer will receive a correction
statement setting forth the applicable
corrections and conditions.
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. 96–51
SECTION 3. EXTENSION OF TVC
PROGRAM
Section 3.02 of Rev. Proc. 95–24
provides that the TVC Program will be
available through October 31, 1996. In
order to continue to evaluate the TVC
Program, it will continue to be available
through December 31, 1998.
SECTION 4. EXPANSION OF THE
PROGRAM
The Service has received comments
and inquiries regarding the expansion of
the TVC Program to permit the correction of defects not currently covered
under Rev. Proc. 95–24. The Service
will continue to consider these comments and inquiries and may publish
additional guidance in the future.
SECTION 5. EFFECTIVE DATE
This revenue procedure is effective on
November 1, 1996.
SECTION 6. EFFECT ON OTHER
DOCUMENTS
Rev. Proc. 95–24 is modified.
DRAFTING INFORMATION
The principal author of this revenue
procedure is Roz Ferber of the Employee Plans Division. For more information concerning this revenue procedure, call the Employee Plans TVC
Telephone Number, (202) 622–6233 (not
a toll-free number) between the hours of
1:30 and 4:00 pm, Monday through
Thursday. Ms. Ferber may be reached at
(202) 622–6214 (also not a toll-free
number).
Additional Amount
$
10,322
1,483
9,970
76,898
8,945
8,013
34,137
2,885
10
SECTION 1. PURPOSE
This revenue procedure supplements
Rev. Proc. 96–46, 1996–38 I.R.B. 144,
by publishing amounts of unused housing credit carryovers allocated to qualified states under § 42(h)(3)(D) of the
Internal Revenue Code for calendar year
1996 in addition to those published in
Rev. Proc. 96–46. This revenue procedure also publishes the total amounts of
unused housing credit carryovers allocated to qualified states under
§ 42(h)(3)(D) for calendar year 1996.
SECTION 2. BACKGROUND
Rev. Proc. 96–46 published a portion
of the unused housing credit carryovers
allocated to qualified states from a national pool of unused credit authority for
calendar year 1996 (the 1996 National
Pool). Sec. 3.02 of Rev. Proc. 96–46
provides that upon resolution of certain
issues, qualified states may be entitled
to an additional allocation from the
1996 National Pool. These issues have
been resolved and qualified states are
entitled to an additional allocation from
the 1996 National Pool. This revenue
procedure publishes these additional allocation amounts. Because there will be
no further allocations to qualified states
for the 1996 calendar year, this revenue
procedure also publishes the total
amounts of unused housing credit carryovers allocated to qualified states from
the 1996 National Pool.
SECTION 3. PROCEDURE
.01 The additional amount of unused
housing credit carryover allocated to
each qualified state from the 1996 National Pool, and the total amount of
unused housing credit carryover allocated to each qualified state from the
1996 National Pool is as follows:
Total Amount
$
127,753
18,350
123,392
951,741
110,705
99,168
422,502
35,701
Qualified State
Additional Amount
Total Amount
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
2,772
28,752
14,073
6,921
6,249
9,363
3,034
12,248
14,780
23,233
11,173
6,530
12,913
3,971
3,565
2,782
19,338
4,047
44,452
27,162
7,550
29,486
2,439
1,764
12,661
4,668
1,419
16,030
13,072
12,433
34,308
355,855
174,173
85,663
77,336
115,883
37,548
151,583
182,924
287,542
138,290
80,818
159,820
49,145
44,118
34,429
239,336
50,084
550,164
336,172
93,445
364,939
30,190
21,832
156,701
57,775
17,563
198,397
161,788
153,885
(Note: Amounts are rounded)
.02 Any additional amount of unused
housing credit carryover published in
this revenue procedure that a qualified
state fails to allocate before the close of
1996 will not be considered in determining whether that state qualifies for an
allocation of unused housing credit carryover for calendar year 1997.
SECTION 4. EFFECT ON OTHER
REVENUE PROCEDURES
This revenue procedure supplements
Rev. Proc. 96–46 by increasing the
amounts of unused housing credit carryovers allocated to qualified states from
the 1996 National Pool.
SECTION 5. 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.
11
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
Foundations Status of Certain
Organizations
Announcement 96–120
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:
ABT Health Care Research Foundation,
Cambridge, MA
Adoptive Families Together AFT,
Houston, TX
Alternative Educational Environments,
Toledo, OH
Amputee Peer Services Inc., N. Little
Rock, AR
Anderson Urban League, Anderson, SC
Apalachicola Bay Oyster Farmers
Association Inc., Apalachicola, FL
Choice Alternative Care Service Inc.,
Greensboro, NC
Committee to Save the RKO Keiths
Theatre of Flushing, Inc., Flushing,
NY
Freeport Saving Lives, Inc., Freeport, IL
Georgia Association for Family Day
Care-Educational Fund, Smyrna, GA
Ichabod Ministries Incorporated,
Pittsfield, MA
Japanese Cultural Exchange, Inc., New
York, NY
Kentucky River Housing Corporation
Inc., Hazard, KY
Midwest Coalition for Affordable
Housing, Clinton Township, MI
New York State Shooting Sports
Foundation Inc., Huntington Sta, NY
Ocean Park Historical Society Inc.,
Ocean Park, ME
Putnam County Child Abuse Prevention
Council Inc., Greencastle, IN
1996–47
I.R.B.
Sachar-Saval Elijah Fund, Inc., Chestnut
Hill, MA
Trinity Building Corporation, Charlotte,
NC
Youth Incorporated, Anderson, IN
Youth Organized for Integrity and
Nuturing Citizenship Inc., Jackson,
MS
If an organization listed above submits information that warrants the renewal of its classification as a public
charity or as a private operating foundation, the Internal Revenue Service will
issue a ruling or determination letter
with the revised classification as to
foundation status. Grantors and contributors may thereafter rely upon such ruling or determination letter as provided
in section 1.509(a)–7 of the Income Tax
Regulations. It is not the practice of the
Service to announce such revised classification of foundation status in the Internal Revenue Bulletin.
Financial Asset Securitization
Investment Trusts (FASITs)
Announcement 96–121
AGENCY: Internal Revenue Service
(IRS), Treasury.
ACTION: Solicitation for comments.
SUMMARY: The Treasury Department
and the IRS are soliciting comments on
issues to be considered in developing
guidance under the newly enacted
FASIT provisions of the Internal Revenue Code.
DATES: Comments are requested on or
before December 31, 1996.
ADDRESSES: Send written comments
to: Internal Revenue Service, Attn:
CC:DOM:CORP:R (FASIT solicitation),
room 5226, POB 7604, Ben Franklin
Station, Washington, DC 20044. Alternatively, taxpayers may submit comments in writing, by hand delivery to
CC:DOM:CORP:R (FASIT solicitation),
Courier’s Desk, Internal Revenue Service, 1111 Constitution Ave., NW.,
Washington, D.C., or, electronically, via
the IRS Internet site at: http://
www.irs.ustreas.gov/prod/tax_regs/
comments.html.
FOR FURTHER INFORMATION CONTACT: David L. Meyer at 202–622–
3960 (not a toll-free number).
12
SUPPLEMENTARY INFORMATION:
Background
Section 1621(a) of the Small Business
Job Protection Act of 1996, Public Law
104–188, 110 Stat. 1755 (August 20,
1996), amends the Internal Revenue
Code (Code) by adding new part V
(sections 860H–860L) to subchapter M
of chapter 1. These provisions authorize
a new statutory vehicle, called a Financial Asset Securitization Investment
Trust (FASIT), that will facilitate the
securitization of debt obligations, including credit card receivables and automobile loans. In general, a FASIT will use
such obligations to issue new, debt-like
securities, referred to as regular interests. No Federal income tax is imposed
on a FASIT, even if the underlying
arrangement is otherwise regarded for
tax purposes as a corporation, trust,
partnership, or segregated pool of assets.
A FASIT must have a single ownership interest, which has to be held
entirely by a non-exempt domestic C
corporation other than a corporation that
qualifies as a RIC, REIT, REMIC, or
subchapter T cooperative. Because a
FASIT is not subject to income tax, the
holder of the ownership interest generally includes in its taxable income all of
the FASIT’s items of income, gain,
deduction and loss. In addition, the
holder recognizes gain (but not loss)
when (1) the FASIT acquires property
from the holder or an unrelated third
party, or (2) the holder uses property to
support a regular interest issued by the
FASIT.
A FASIT may issue one or more
classes of regular interests. Regular interests are treated as debt for all purposes of the Code. Ordinarily, a regular
interest may be held by any person,
unless the interest is a high-yield interest, in which case it may be held only
by another FASIT or a corporation that
is allowed to hold an ownership interest.
The FASIT provisions become effective on September 1, 1997. Special
transitional rules apply to a securitization arrangement existing on August 31,
1997, that elects FASIT treatment (a
pre- effective date FASIT).
In addition to the general authority
under section 7805 to prescribe regulations, the Treasury and IRS have specific authority under section 860L(h) to
issue regulations that carry out the purposes of the FASIT provisions, includ-
ing rules to prevent the abuse of the
purposes of the FASIT provisions
through transactions that are not primarily related to securitization of debt
instruments by a FASIT.
Comments
To develop needed guidance timely,
the Treasury Department and the IRS
invite interested persons to submit comments (in the manner described under
the ADDRESSES caption) on issues
arising under the FASIT provisions.
Treasury and the IRS encourage respondents to give particular attention to the
following: rules that would allow more
than one member of an affiliated group
to hold ownership interests in the same
FASIT; transitional rules for preeffective date FASITs; and any other
rules that should be in place before
September 1, 1997.
If a respondent is submitting written
comments, a signed original and eight
(8) copies are requested. All comments
will be available for public inspection
and copying in their entirety.
JUDITH C. DUNN,
Associate Chief Counsel (Domestic).
(Filed by the Office of the Federal Register on
November 1, 1996, 8:45 a.m., and published in the
issue of the Federal Register for November 4,
1996, 61 F.R. 56647)
Availability of Publication 938 on
the Internet and IRS Electronic
Bulletin Board (IRP-BBS) and
Conversion to a Quarterly
Publication
Announcement 96–122
The Service will not produce a
printed version of future updates of
Publication 938, Real Estate Mortgage
Investment Conduits (REMICs) Reporting Information (And Other Collateralized Debt Obligations (CDOs)). The
13
1996 update and future quarterly updates will be available only on the
Internet and the IRP-BBS. You can
download the publication from the IRPBBS if you have a computer with a
modem. Dial 1–304–264–7070 and follow the instructions. (This is not a
toll-free call.) To download the publication from the Internet, connect to the
IRS Home Page at:
http://www.irs.ustreas.gov
The directory portion of Publication
938 will be updated each quarter. The
text portion will be updated only once
each year. The first update will contain
a directory based on the Forms 8811 the
Service receives from September 1
through December 31, 1996.
To order back issues (1991 through
1995) of the printed versions of Publication 938, call 1–800–TAX–FORM (1–
800–829–3676), or mail Form 6112,
Prior Years’ Tax Forms Order. Be sure
to specify which edition you want.
1996–47
I.R.B.
Announcement of the Disbarment, Suspension, or Consent to Voluntary
Suspension of Attorneys, Certified Public Accountants, Enrolled Agents, and
Enrolled Actuaries From Practice Before the Internal Revenue Service
Under 31 Code of Federal Regulations, Part 10, an attorney, certified public accountant, enrolled agent, or enrolled actuary, in order to avoid the
institution or conclusion of a proceeding
for his disbarment or suspension from
practice before the Internal Revenue Service, may offer his consent to suspension
from such practice. The Director of
Practice, in his discretion, may suspend
an attorney, certified public accountant,
enrolled agent, or enrolled actuary in
accordance with the consent offered.
Attorneys, certified public accountants, enrolled agents, and enrolled actuaries are prohibited in any Internal Rev-
enue Service matter from directly or
indirectly employing, accepting assistance from, being employed by or sharing fees with, any practitioner disbarred
or suspended from practice before the
Internal Revenue Service.
To enable attorneys, certified public
accountants, enrolled agents, and enrolled actuaries to identify practitioners
under consent suspension from practice
before the Internal Revenue Service, the
Director of Practice will announce in the
Internal Revenue Bulletin the names and
addresses of practitioners who have
been suspended from such practice, their
designation as attorney, certified public
accountant, enrolled agent, or enrolled
actuary, and date or period of suspension. This announcement will appear in
the weekly Bulletin at the earliest practicable date after such action and will
continue to appear in the weekly Bulletins for five successive weeks or for as
many weeks as is practicable for each
attorney, certified public accountant, enrolled agent, or enrolled actuary so
suspended and will be consolidated and
published in the Cumulative Bulletin.
The following individuals have been
placed under consent suspension from
practice before the Internal Revenue
Service:
Name
Address
Designation
Date of Suspension
Lamb, Gordon W.
Anderson, Randall S.
Broderick, William J.
Ruggiero, John M.
Eklund, Mark
Stayner, G. Craig
Allen, Lehman D.
Hardgrove, David L.
Trader, John H.
Schmertz, Carl D.
Bengston, Wessel
Pullman, WA
Arlington Hgts, IL
Farmington Hills, MI
Rutland, VT
Portland, OR
Salt Lake City, UT
Lubbock, TX
Amarillo, TX
Kansas City, MO
Wilmette, IL
Chicago, IL
CPA
CPA
CPA
Attorney
CPA
CPA
CPA
CPA
Attorney
CPA
CPA
September 1, 1996 to January 31, 1997
September 1, 1996 to February 28, 1998
September 1, 1996 to November 30, 1996
September 1, 1996 to October 31, 1996
September 1, 1996 to February 28, 1997
September 15, 1996 to June 14, 1997
September 20, 1996 to September 19, 1998
September 21, 1996 to June 20, 1997
September 30, 1996 to March 29, 1997
October 1, 1996 to March 31, 1999
October 15, 1996 to April 14, 1997
14
Announcement of the Expedited Suspension of Attorneys, Certified Public
Accountants, Enrolled Agents, and Enrolled Actuaries From Practice Before The
Internal Revenue Service
Under title 31 of the Code of Federal
Regulations, section 10.76, the Director
of Practice is authorized to immediately
suspend from practice before the Internal
Revenue Service any practitioner who,
within five years, from the date the
expedited proceeding is instituted, (1)
has had a license to practice as an
attorney, certified public accountant, or
actuary suspended or revoked for cause;
or (2) has been convicted of any crime
under title 26 of the United States Code
or, of a felony under title 18 of the
United States Code involving dishonesty
or breach of trust.
Attorneys, certified public accountants, enrolled agents, and enrolled actu-
aries are prohibited in any Internal Revenue Service matter from directly or
indirectly employing, accepting assistance from, being employed by, or sharing fees with, any practitioner disbarred
or suspended from practice before the
Internal Revenue Service.
To enable attorneys, certified public
accountants, enrolled agents, and enrolled actuaries to identify practitioners
under expedited suspension from practice before the Internal Revenue Service,
the Director of Practice will announce in
the Internal Revenue Bulletin the names
and addresses of practitioners who have
been suspended from such practice, their
designation as attorney, certified public
accountant, enrolled agent, or enrolled
actuary, and date or period of suspension. This announcement will appear in
the weekly Bulletin at the earliest practicable date after such action and will
continue to appear in the weekly Bulletins for five successive weeks or for as
many weeks as is practicable for each
attorney, certified public accountant, enrolled agent, or enrolled actuary so
suspended and will be consolidated and
published in the Cumulative Bulletin.
The following individuals have been
placed under suspension from practice
before the Internal Revenue Service by
virtue of the expedited proceeding provisions of the applicable regulations:
Name
Address
Designation
Date of Suspension
Alleva, Donald
Rose, Robert M.
McGrath, Gregory
Finch, Kenneth L. Jr.
Mount Vernon, NY
Dallas, TX
New Smyrna Bch, FL
Pelham, AL
Enrolled Agent
Attorney
CPA
CPA
Indefinite from September 5, 1996
Indefinite from September 5, 1996
Indefinite from September 8, 1996
Indefinite from September 8, 1996
15
Definition of Terms
Revenue rulings and revenue procedures
(hereinafter referred to as ‘‘rulings’’)
that have an effect on previous rulings
use the following defined terms to describe the effect:
Amplified describes a situation where
no change is being made in a prior
published position, but the prior position
is being extended to apply to a variation
of the fact situation set forth therein.
Thus, if an earlier ruling held that a
principle applied to A, and the new
ruling holds that the same principle also
applies to B, the earlier ruling is amplified. (Compare with modified, below).
Clarified is used in those instances
where the language in a prior ruling is
being made clear because the language
has caused, or may cause, some confusion. It is not used where a position in a
prior ruling is being changed.
Distinguished describes a situation
where a ruling mentions a previously
published ruling and points out an essential difference between them.
Modified is used where the substance
of a previously published position is
being changed. Thus, if a prior ruling
held that a principle applied to A but not
to B, and the new ruling holds that it
applies to both A and B, the prior ruling
is modified because it corrects a published position. (Compare with amplified
and clarified, above).
Obsoleted describes a previously published ruling that is not considered determinative with respect to future transactions. This term is most commonly
used in a ruling that lists previously
published rulings that are obsoleted because of changes in law or regulations.
A ruling may also be obsoleted because
the substance has been included in regulations subsequently adopted.
Revoked describes situations where
the position in the previously published
ruling is not correct and the correct
position is being stated in the new
ruling.
Superseded describes a situation
where the new ruling does nothing more
than restate the substance and situation
of a previously published ruling (or
rulings). Thus, the term is used to
republish under the 1986 Code and
regulations the same position published
under the 1939 Code and regulations.
The term is also used when it is desired
to republish in a single ruling a series of
situations, names, etc., that were previously published over a period of time in
separate rulings. If the new ruling does
more than restate the substance of a
prior ruling, a combination of terms is
used. For example, modified and superseded describes a situation where the
substance of a previously published ruling is being changed in part and is
continued without change in part and it
is desired to restate the valid portion of
the previously published ruling in a new
ruling that is self contained. In this case
the previously published ruling is first
modified and then, as modified, is superseded.
Supplemented is used in situations in
which a list, such as a list of the names
of countries, is published in a ruling and
that list is expanded by adding further
names in subsequent rulings. After the
original ruling has been supplemented
several times, a new ruling may be
published that includes the list in the
original ruling and the additions, and
supersedes all prior rulings in the series.
Suspended is used in rare situations to
show that the previous published rulings
will not be applied pending some future
action such as the issuance of new or
amended regulations, the outcome of
cases in litigation, or the outcome of a
Service study.
Abbreviations
E.O.—Executive Order.
ER—Employer.
ERISA—Employee Retirement Income Security Act.
EX—Executor.
F—Fiduciary.
PHC—Personal Holding Company.
PO—Possession of the U.S.
FC—Foreign Country.
FICA—Federal Insurance Contribution Act.
Pub. L.—Public Law.
REIT—Real Estate Investment Trust.
FISC—Foreign International Sales Company.
FPH—Foreign Personal Holding Company.
F.R.—Federal Register.
FUTA—Federal Unemployment Tax Act.
FX—Foreign Corporation.
G.C.M.—Chief Counsel’s Memorandum.
GE—Grantee.
GP—General Partner.
GR—Grantor.
IC—Insurance Company.
I.R.B.—Internal Revenue Bulletin.
LE—Lessee.
LP—Limited Partner.
LR—Lessor.
Rev. Proc.—Revenue Procedure.
Rev. Rul.—Revenue Ruling.
S—Subsidiary.
S.P.R.—Statements of Procedural Rules.
Stat.—Statutes at Large.
T—Target Corporation.
T.C.—Tax Court.
T.D.—Treasury Decision.
TFE—Transferee.
TFR—Transferor.
T.I.R.—Technical Information Release.
TP—Taxpayer.
TR—Trust.
TT—Trustee.
M—Minor.
U.S.C.—United States Code.
Nonacq.—Nonacquiescence.
X—Corporation.
O—Organization.
Y—Corporation.
P—Parent Corporation.
Z—Corporation.
The following abbreviations in current use and
formerly used will appear in material published in
the Bulletin.
A—Individual.
Acq.—Acquiescence.
B—Individual.
BE—Beneficiary.
BK—Bank.
B.T.A.—Board of Tax Appeals.
C.—Individual.
C.B.—Cumulative Bulletin.
CFR—Code of Federal Regulations.
CI—City.
COOP—Cooperative.
Ct.D.—Court Decision.
CY—County.
D—Decedent.
DC—Dummy Corporation.
DE—Donee.
Del. Order—Delegation Order.
DISC—Domestic International Sales Corporation.
DR—Donor.
E—Estate.
EE—Employee.
16
PR—Partner.
PRS—Partnership.
PTE—Prohibited Transaction Exemption.
Numerical Finding List1
Bulletins 1996–27 through 1996–46
Announcements:
96–61, 1996–27 I.R.B. 72
96–62, 1996–28 I.R.B. 55
96–63, 1996–29 I.R.B. 18
96–64, 1996–29 I.R.B. 18
96–65, 1996–29 I.R.B. 18
96–66, 1996–29 I.R.B. 19
96–67, 1996–30 I.R.B. 27
96–68, 1996–31 I.R.B. 45
96–69, 1996–32 I.R.B. 38
96–70, 1996–32 I.R.B. 40
96–71, 1996–33 I.R.B. 16
96–72, 1996–33 I.R.B. 16
96–73, 1996–33 I.R.B. 18
96–74, 1996–33 I.R.B. 19
96–75, 1996–34 I.R.B. 29
96–76, 1996–34 I.R.B. 29
96–77, 1996–35 I.R.B. 15
96–78, 1996–35 I.R.B. 15
96–79, 1996–35 I.R.B. 15
96–80, 1996–35 I.R.B. 16
96–81, 1996–36 I.R.B. 13
96–82, 1996–36 I.R.B. 14
96–83, 1996–36 I.R.B. 14
96–84, 1996–36 I.R.B. 14
96–85, 1996–37 I.R.B. 20
96–86, 1996–37 I.R.B. 21
96–87, 1996–37 I.R.B. 21
96–88, 1996–38 I.R.B. 150
96–89, 1996–37 I.R.B. 22
96–90, 1996–37 I.R.B. 22
96–91, 1996–37 I.R.B. 23
96–92, 1996–38 I.R.B. 151
96–93, 1996–38 I.R.B. 151
96–94, 1996–38 I.R.B. 153
96–96, 1996–39 I.R.B. 41
96–97, 1996–39 I.R.B. 41
96–98, 1996–39 I.R.B. 42
96–99, 1996–39 I.R.B. 42
96–100, 1996–40 I.R.B. 10
96–101, 1996–40 I.R.B. 10
96–102, 1996–40 I.R.B. 11
96–103, 1996–40 I.R.B. 12
96–104, 1996–41 I.R.B. 10
96–105, 1996–42 I.R.B. 19
96–106, 1996–42 I.R.B. 23
96–107, 1996–42 I.R.B. 27
96–108, 1996–44 I.R.B. 15
96–109, 1996–43 I.R.B. 76
96–110, 1996–43 I.R.B. 77
96–111, 1996–44 I.R.B. 16
96–112, 1996–45 I.R.B. 7
96–113, 1996–44 I.R.B. 18
96–114, 1996–45 I.R.B. 7
96–115, 1996–45 I.R.B. 9
96–116, 1996–46 I.R.B. 12
96–117, 1996–46 I.R.B. 12
96–118, 1996–46 I.R.B. 12
96–119, 1996–46 I.R.B. 13
Court Decisions:
2058, 1996–34 I.R.B. 13
2059, 1996–34 I.R.B. 10
2060, 1996–34 I.R.B. 5
Delegation Orders:
Revenue Procedures—Continued
155 (Rev. 4), 1996–40 I.R.B. 9
96–48, 1996–39 I.R.B. 10
96–49, 1996–43 I.R.B. 74
Notices:
96–36, 1996–27 I.R.B. 11
96–37, 1996–31 I.R.B. 29
96–38, 1996–31 I.R.B. 29
96–39, 1996–32 I.R.B. 8
96–40, 1996–33 I.R.B. 11
96–41, 1996–35 I.R.B. 6
96–42, 1996–35 I.R.B. 6
96–43, 1996–36 I.R.B. 7
96–44, 1996–36 I.R.B. 7
96–45, 1996–39 I.R.B. 7
96–46, 1996–39 I.R.B. 7
96–47, 1996–39 I.R.B. 8
96–48, 1996–39 I.R.B. 8
96–49, 1996–41 I.R.B. 6
96–50, 1996–41 I.R.B. 6
96–51, 1996–42 I.R.B. 6
96–52, 1996–42 I.R.B. 8
96–54, 1996–44 I.R.B. 13
Proposed Regulations:
CO–9–96, 1996–34 I.R.B. 20
CO–24–96, 1996–30 I.R.B. 22
CO–25–96, 1996–31 I.R.B. 30
CO–26–96, 1996–31 I.R.B. 31
FI–59–94, 1996–30 I.R.B. 23
FI–32–95, 1996–34 I.R.B. 21
FI–48–95, 1996–31 I.R.B. 36
FI–28–96, 1996–31, I.R.B. 33
GL–7–96, 1996–33 I.R.B. 13
IA–292–84, 1996–28 I.R.B. 38
IA–26–94, 1996–30 I.R.B. 24
IA–29–96, 1996–33 I.R.B. 14
INTL–4–95, 1996–36 I.R.B. 8
PS–39–93, 1996–34 I.R.B. 27
PS–22–96, 1996–33 I.R.B. 15
REG–208215–91, 1996–38 I.R.B. 145
REG–209803–95, 1996–44 I.R.B. 14
REG–209826–96, 1996–42 I.R.B. 10
REG–209827–96, 1996–37 I.R.B. 19
REG–245562–96, 1996–41 I.R.B. 8
Public Laws:
104–117, 1996–34 I.R.B. 19
104–134, 1996–38 I.R.B. 7
104–168, 1996–38 I.R.B. 8
104–191, 1996–43 I.R.B. 7
104–193, 1996–46 I.R.B. 4
Railroad Retirement Quarterly Rate
1996–29 I.R.B. 14
Revenue Procedures:
96–36, 1996–27 I.R.B. 11
96–37, 1996–29 I.R.B. 16
96–39, 1996–33 I.R.B. 11
96–40, 1996–32 I.R.B. 8
96–41, 1996–32 I.R.B. 9
96–42, 1996–32 I.R.B. 14
96–43, 1996–35 I.R.B. 6
96–44, 1996–35 I.R.B. 7
96–45, 1996–35 I.R.B. 12
96–46, 1996–38 I.R.B. 144
96–47, 1996–39 I.R.B. 10
1
A cumulative list of all Revenue Rulings, Revenue Procedures, Treasury Decisions, etc., published in Internal Revenue Bulletins 1996–1
through 1996–26 will be found in Internal Revenue Bulletin 1996–27, dated July 1, 1996.
17
Revenue Rulings:
96–33, 1996–27 I.R.B. 4
96–34, 1996–28 I.R.B. 4
96–35, 1996–31 I.R.B. 4
96–36, 1996–30 I.R.B. 6
96–37, 1996–32 I.R.B. 4
96–38, 1996–33 I.R.B. 4
96–39, 1996–34 I.R.B. 4
96–41, 1996–45 I.R.B. 4
96–42, 1996–35 I.R.B. 4
96–43, 1996–36 I.R.B. 4
96–44, 1996–38 I.R.B. 4
96–45, 1996–39 I.R.B. 5
96–46, 1996–39 I.R.B. 5
96–47, 1996–40 I.R.B. 7
96–48, 1996–40 I.R.B. 4
96–49, 1996–41 I.R.B. 4
96–50, 1996–42 I.R.B. 4
96–51, 1996–43 I.R.B. 5
96–52, 1996–45 I.R.B. 5
Tax Conventions:
1996–28 I.R.B. 36
1996–36 I.R.B. 6
1996–40 I.R.B. 8
Treasury Decisions:
8673, 1996–27 I.R.B. 4
8674, 1996–28 I.R.B. 7
8675, 1996–29 I.R.B. 5
8676, 1996–30 I.R.B. 4
8677, 1996–30 I.R.B. 7
8678, 1996–31 I.R.B. 11
8679, 1996–31 I.R.B. 4
8680, 1996–33 I.R.B. 5
8681, 1996–37 I.R.B. 17
8682, 1996–37 I.R.B. 4
8683, 1996–44 I.R.B. 9
8684, 1996–44 I.R.B. 4
Finding List of Current Action on
Previously Published Items1
Bulletins 1996–27 through 1996–46
*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
95–16
Superseded by
96–48, 1996–39 I.R.B. 10
95–29
Superseded by
96–36, 1996–27 I.R.B. 11
95–29A
Superseded by
96–36, 1996–27 I.R.B. 11
95–30
Superseded by
96–42, 1996–32 I.R.B. 14
95–46
Superseded by
96–48, 1996–39 I.R.B. 10
96–41
Modified by
Notice 96–49, 1996–41 I.R.B. 6
1
A cumulative finding list for previously published
items mentioned in Internal Revenue Bulletins
1996–1 through 1996–26 will be found in Internal
Revenue Bulletin 1996–27, dated July 1, 1996.
18
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.