Bulletin No. 1997–27
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Bulletin No. 1997–27
July 7, 1997
HIGHLIGHTS
OF THIS ISSUE
These synopses are intended only as aids to the reader in
identifying the subject matter covered. They may not be relied
upon as authoritative interpretations.
INCOME TAX
Rev. Rul. 97–27, page 4.
Federal rates; adjusted federal rates, adjusted federal long-term rate; and the long-term exempt rate.
For purposes of sections 1274, 1288, 382, and other
sections of the Code, tables set forth the rates for July
1997.
recovery credit for taxable years beginning in the 1997
calendar year is determined without regard to the
phase-out for crude oil price increases provided in
section 43(b) of the Code.
EXEMPT ORGANIZATIONS
Notice 97–37, page 8.
Elections into mark-to-market accounting. The Service will issue additional guidance on elections under
section 1.475(c)–1 of the regulations. This notice also
extends the deadline to make a customer paper election
on a retroactive basis.
Announcement 97–67, page 37.
A list is given of organizations now classified as private
foundations.
Notice 97–38, page 8.
1997 marginal production rates. This notice announces the applicable percentage to be used in determining percentage depletion on marginal production in
tax years beginning in the 1997 calendar year.
Rev. Proc. 97–32, page 9.
Reproduction of forms; Forms 1096, 1098, 1099
series, 5498, and W–2G. Requirements are set forth
for reproducing paper substitutes for Forms 1096,
1098, 1099 series, 5498, and W–2G, and for furnishing
substitute statements to form recipients. Rev. Proc.
96–42 superseded.
Notice 97–39, page 8.
1997 enhanced oil recovery credit. The enhanced oil
Finding Lists begin on page 40.
Announcement of Disbarments and Suspensions begins on page 38.
Index for January—June begins on page 43.
ADMINISTRATIVE
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 a cumulative
index for the matters published during the preceding
months. These monthly indexes are cumulated on a
quarterly and semiannual basis, and are published in
the first Bulletin of the succeeding quarterly and semiannual 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
Section 412.—Minimum Funding
Standards
Section 846.—Discounted Unpaid
Losses Defined
The adjusted applicable federal short-term, midterm, and long-term rates are set forth for the
month of July 1997. See Rev. Rul. 97–27,
this page.
The adjusted applicable federal short-term, midterm, and long-term rates are set forth for the
month of July 1997. See Rev. Rul. 97–27,
this page.
The adjusted applicable federal short-term, midterm, and long-term rates are set forth for the
month of July 1997. See Rev. Rul. 97–27,
this page.
Section 467.—Certain Payments
for the Use of Property or Services
Section 1274.—Determination of
Issue Price in the Case of Certain
Debt Instruments Issued for
Property
Section 220.—Medical Savings
Accounts
Specifications for paper substitutes for Forms
1096, 1098, 1099, 5498, and W–2G. See Rev.
Proc. 97–32, page 9.
Section 280G.—Golden Parachute
Payments
Federal short-term, mid-term, and long-term
rates are set forth for the month of July 1997. See
Rev. Rul. 97–27, this page.
Section 382.—Limitation on Net
Operating Loss Carryforwards and
Certain Built-In Losses Following
Ownership Change
The adjusted federal long-term rate is set forth
for the month of July 1997. See Rev. Rul. 97–27,
this page.
Section 408.—Individual
Retirement Accounts
26 CFR 1.408–5: Annual reports by trustees or
issuers.
Specifications for paper substitutes for Form
1096, 1098, 1099, 5498, and W–2G. See Rev.
Proc. 97–32, page 9.
26 CFR 1.408–7: Reports on distributions from
individual retirement plans.
Specifications for paper substitutes for Forms
1096, 1098, 1099, 5498, and W–2G. See Rev.
Proc. 97–32, page 9.
The adjusted applicable federal short-term, midterm, and long-term rates are set forth for the
month of July 1997. See Rev. Rul. 97–27,
this page.
(Also Sections 42, 280G, 382, 412, 467, 468, 482,
483, 642, 807, 846, 1288, 7520, 7872.)
Rev. Rul. 97–27
Section 468.—Special Rules for
Mining and Solid Waste
Reclamation and Closing Costs
The adjusted applicable federal short-term, midterm, and long-term rates are set forth for the
month of July 1997. See Rev. Rul. 97–27,
this page.
Section 483.—Interest on Certain
Deferred Payments
The adjusted applicable federal short-term, midterm, and long-term rates are set forth for the
month of July 1997. See Rev. Rul. 97–27,
this page.
Section 807.—Rules for Certain
Reserves
The adjusted applicable federal short-term, midterm, and long-term rates are set forth for the
month of July 1997. See Rev. Rul. 97–27,
this page.
This revenue ruling provides various
prescribed rates for federal income tax
purposes for July 1997 (the current
month.) Table 1 contains the short-term,
mid-term, and long-term applicable federal rates (AFR) for the current month
for purposes of section 1274(d) of the
Internal Revenue Code. Table 2 contains
the short-term, mid-term, and long-term
adjusted applicable federal rates (adjusted AFR) for the current month for
purposes of section 1288(b). Table 3 sets
forth the adjusted federal long-term rate
and the long-term tax-exempt rate described in section 382(f). Table 4 contains the appropriate percentages for determining the low-income housing credit
described in section 42(b)(2) for buildings placed in service during the current
month. Table 5 contains the federal rate
for determining the present value of an
annuity, an interest for life or for a term
of years, or a remainder or a reversionary interest for purposes of section 7520.
Finally, Table 6 contains the blended
annual rate for purposes of section 7872.
REV. RUL. 97–27 TABLE 1
Applicable Federal Rates (AFR) for July 1997
Period for Compounding
Annual
Semiannual
Quarterly
Monthly
Short-Term
AFR
110% AFR
120% AFR
130% AFR
6.07%
6.69%
7.31%
7.92%
5.98%
6.58%
7.18%
7.77%
5.94%
6.53%
7.12%
7.70%
5.91%
6.49%
7.07%
7.65%
Mid-Term
AFR
110% AFR
120% AFR
6.65%
7.32%
8.00%
6.54%
7.19%
7.85%
6.49%
7.13%
7.77%
6.45%
7.08%
7.72%
July 7, 1997
4
1997–27
I.R.B.
REV. RUL. 97–27 TABLE 1—Continued
Applicable Federal Rates (AFR) for July 1997
Period for Compounding
Annual
Semiannual
Quarterly
Monthly
Mid-Term (continued)
130% AFR
150% AFR
175% AFR
8.68%
10.05%
11.78%
8.50%
9.81%
11.45%
8.41%
9.69%
11.29%
8.35%
9.62%
11.19%
Long-Term
AFR
110% AFR
120% AFR
130% AFR
6.99%
7.70%
8.41%
9.13%
6.87%
7.56%
8.24%
8.93%
6.81%
7.49%
8.16%
8.83%
6.77%
7.44%
8.10%
8.77%
REV. RUL. 97–27 TABLE 2
Adjusted AFR for July 1997
Period for Compounding
Annual
Semiannual
Quarterly
Monthly
Short-term
adjusted AFR
3.99%
3.95%
3.93%
3.92%
Mid-term
adjusted AFR
4.71%
4.66%
4.63%
4.62%
Long-term
adjusted AFR
5.45%
5.38%
5.34%
5.32%
REV. RUL. 97–27 TABLE 3
Rates Under Section 382 for July 1997
Adjusted federal long-term rate for the current month
5.45%
Long-term tax-exempt rate for ownership changes during the current month (the highest of the
adjusted federal long-term rates for the current month and the prior two months.)
5.64%
REV. RUL. 97–27 TABLE 4
Appropriate Percentages Under Section 42(b)(2) for July 1997
Appropriate percentage for the 70% present value low-income housing credit
8.60%
Appropriate percentage for the 30% present value low-income housing credit
3.69%
REV. RUL. 97–27 TABLE 5
Rate Under Section 7520 for July 1997
Applicable federal rate for determining the present value of an annuity, an interest for life or a
term of years, or a remainder or reversionary interest
8.0%
REV. RUL. 97–27 TABLE 6
Blended Annual Rate for 1997
Section 7872(e)(2) blended annual rate for 1997
1997–27
I.R.B.
5.85%
5
July 7, 1997
Section 1288.—Treatment of
Original Issue Discount on
Tax-Exempt Obligations
The adjusted applicable federal short-term, midterm, and long-term rates are set forth for the
month of July 1997. See Rev. Rul. 97–27,
page 4.
Section 6041.—Information at
Source
26 CFR 1.6041–1: Return of information as to
payments of $600 or more.
Specifications for paper substitutes for Forms
1096, 1098, 1099, 5498, and W–2G. See Rev.
Proc. 97–32, page 9.
26 CFR 7.6041–1: Return of information as to
payments of winnings from bingo, keno, and slot
machines (Temporary).
Specifications for paper substitutes for Forms
1096, 1098, 1099, 5498, and W–2G. See Rev.
Proc. 97–32, page 9.
Section 6041A.—Returns
Regarding Payments of
Remuneration for Services and
Direct Sales
Specifications for paper substitutes for Forms
1096, 1098, 1099, 5498, and W–2G. See Rev.
Proc. 97–32, page 9.
Section 6042.—Returns Regarding
Payments of Dividends and
Corporate Earnings and Profits
26 CFR 1.6044–5: Statements to recipients of
patronage dividends.
Specifications for paper substitutes for Forms
1096, 1098, 1099, 5498, and W–2G. See Rev.
Proc. 97–32, page 9.
Section 6045.—Returns of Brokers
26 CFR 1.6045–1: Returns of information of
brokers and barter exchanges.
Specifications for paper substitutes for Forms
1096, 1098, 1099, 5498, and W–2G. See Rev.
Proc. 97–32, page 9.
26 CFR 5f.6045–1: Returns of information for
brokers and barter exchanges (Temporary).
Specifications for paper substitutes for Forms
1096, 1098, 1099, 5498, and W–2G. See Rev.
Proc. 97–32, page 9.
26 CFR 1.6050B–1: Information returns by person
making unemployment compensation payments.
Specifications for paper substitutes for Forms
1096, 1098, 1099, 5498, and W–2G. See Rev.
Proc. 97–32, page 9.
26 CFR 1.6050D–1: Information returns relating
to energy grants and financing.
26 CFR 1.6045–4: Information reporting on real
estate transactions with dates of closing on or
after January 1, 1991.
Specifications for paper substitutes for Forms
1096, 1098, 1099, 5498, and W–2G. See Rev.
Proc. 97–32, page 9.
Section 6047.—Information
Relating to Certain Trusts and
Annuity Plans
Specifications for paper substitutes for Forms
1096, 1098, 1099, 5498, and W–2G. See Rev.
Proc. 97–32, page 9.
Specifications for paper substitutes for Forms
1096, 1098, 1099, 5498, and W–2G. See Rev.
Proc. 97–32, page 9.
Section 6050B.—Returns Relating
to Unemployment Compensation
Specifications for paper substitutes for Forms
1096, 1098, 1099, 5498, and W–2G. See Rev.
Proc. 97–32, page 9.
Specifications for paper substitutes for Forms
1096, 1098, 1099, 5498, and W–2G. See Rev.
Proc. 97–32, page 9.
Section 6043.—Liquidating, Etc.,
Transactions
Specifications for paper substitutes for Form
1096, 1098, 1099, 5498, and W–2G. See Rev.
Proc. 97–32, page 9.
Section 6050D.—Returns Relating
to Energy Grants and Financing
26 CFR 1.6047–1: Information to be furnished
with regard to employee retirement plan covering
an owner-employee.
Specifications for paper substitutes for Forms
1096, 1098, 1099, 5498, and W–2G. See Rev.
Proc. 97–32, page 9.
26 CFR 1.6050A–1: Reporting requirements of
certain fishing boat operators.
26 CFR 1.6045–2: Furnishing statement required
with respect to certain substitute payments.
26 CFR 1.6042–2: Returns of information as to
dividends paid in calendar years after 1962.
26 CFR 1.6042–4: Statements to recipients of
dividend payments.
Section 6050A.—Reporting
Requirements of Certain Fishing
Boat Operators
Section 6049.—Returns Regarding
Payments of Interest
26 CFR 1.6049–4: Return of information as to
interest paid and original issue discount includible
in gross income after December 31, 1982.
Specifications for paper substitutes for Forms
1096, 1098, 1099, 5498, and W–2G. See Rev.
Proc. 97–32, page 9.
26 CFR 1.6049–6: Statements to recipients of
interest payments and holders of obligations for
attributed original issue discount.
Specifications for paper substitutes for Forms
1096, 1098, 1099, 5498, and W–2G. See Rev.
Proc. 97–32, page 9.
Section 6050E.—State and Local
Income Tax Refunds
26 CFR 1.6050E–1: Reporting of State and local
income tax refunds.
Specifications for paper substitutes for Forms
1096, 1098, 1099, 5498, and W–2G. See Rev.
Proc. 97–32, page 9.
Section 6050H.—Returns Relating
to Mortgage Interest Received in
Trade or Business From Individuals
26 CFR 1.6050H–1: Information reporting of
mortgage interest received in a trade or business
from an individual.
Specifications for paper substitutes for Forms
1096, 1098, 1099, 5498, and W–2G. See Rev.
Proc. 97–32, page 9.
26 CFR 1.6050H–2: Time, form, and manner of
reporting interest received on qualified mortgage.
Specifications for paper substitutes for Forms
1096, 1098, 1099, 5498, and W–2G. See Rev.
Proc. 97–32, page 9.
Section 6044.—Returns Regarding
Payments of Patronage Dividends
Specifications for paper substitutes for Forms
1096, 1098, 1099, 5498, and W–2G. See Rev.
Proc. 97–32, page 9.
Section 6050J.—Returns Relating
to Foreclosures and Abandonments
of Security
26 CFR 1.6044–2: Returns of information as to
payments of patronage dividends with respect to
patronage occurring in taxable years beginning
after 1962.
26 CFR 1.6049–7: Returns of information with
respect to REMIC regular interests and collateralized debt obligations.
26 CFR 1.6050J–1T: Questions and answers concerning information returns relating to foreclosures and abandonments of security (Temporary).
Specifications for paper substitutes for Forms
1096, 1098, 1099, 5498, and W–2G. See Rev.
Proc. 97–32, page 9.
Specifications for paper substitutes for Forms
1096, 1098, 1099, 5498, and W–2G. See Rev.
Proc. 97–32, page 9.
Specifications for paper substitutes for Forms
1096, 1098, 1099, 5498, and W–2G. See Rev.
Proc. 97–32, page 9.
July 7, 1997
6
1997–27
I.R.B.
Section 6050N.—Returns
Regarding Payments of Royalties
Specifications for paper substitutes for Forms
1096, 1098, 1099, 5498, and W–2G. See Rev.
Proc. 97–32, page 9.
26 CFR 1.6050N–1: Statements to recipients of
royalties.
Specifications for paper substitutes for Forms
1096, 1098, 1099, 5498, and W–2G. See Rev.
Proc. 97–32, page 9.
Section 6050P.—Returns Relating
to the Cancellation of Indebtedness
by Certain Entities
Section 6050Q.—Certain
Long-Term Care Benefits
Specifications for paper substitutes for Forms
1096, 1098, 5498, and W–2G. See Rev. Proc.
97–32, page 9.
Section 7520.—Valuation Tables
The adjusted applicable federal short-term, midterm, and long-term rates are set forth for the
month of July 1997. See Rev. Rul. 97–27,
page 4.
Section 7872.—Treatment of Loans
With Below-Market Interest Rates
The adjusted applicable federal short-term, midterm, and long-term rates are set forth for the
month of July 1997. See Rev. Rul. 97–27,
page 4.
26 CFR 1.6050P–1: Information reporting for
discharges of indebtedness by certain financial
entities.
1997–27
I.R.B.
7
July 7, 1997
Part III. Administrative, Procedural, and Miscellaneous
Elections Into Mark-to-Market
Accounting Under Section
1.475(c)–1 of the Regulations
Notice 97–37
On December 24, 1996, final regulations (T.D. 8700, [1997–7 I.R.B. 5] 61
F.R. 67715) were published to furnish
guidance under § 475 of the Internal
Revenue Code, including the scope of
exemptions from the mark-to-market requirements. These regulations contain
elections out of certain exemptions, including the intragroup-customer election
(§ 1.475(c)–1(a)(3)(iii)(B) of the Income Tax Regulations), the customer
paper election (§ 1.475(c)–1(b)(4)(i)),
and the negligible sales election
(§ 1.475(c)–1(c)(1)(ii)).
Section
1.475(c)–1(b)(4)(i)(B) provides a June
23, 1997, deadline to make the customer
paper election on an amended return.
The Internal Revenue Service recognizes that taxpayers need further guidance concerning these elections. The
Service intends to issue guidance that
will address the interplay of the elections under § 1.475(c)–1, the extent to
which these elections are available on a
retroactive basis, and the application of
the § 475(b)(2) identification requirements to taxpayers making these elections. Because taxpayers need additional
guidance to evaluate whether to make
an election, and because the elections
cannot be revoked without the consent
of the Commissioner, the additional
guidance will extend the filing deadline
from June 23, 1997, to at least 45 days
after that guidance is released. It should
be noted, however, that an amended
return making an election must be filed
within the statute of limitations on assessment under § 6501(a).
The principal drafter of this notice is
Alan B. Munro of the Office of Assistant Chief Counsel (Financial Institutions and Products). For further information regarding this notice contact Mr.
Munro on (202) 622–3920 (not a tollfree call).
1997 Marginal Production Rates
Notice 97–38
Section 613A(c)(6)(C) of the Internal
Revenue Code defines the term ‘‘applicable percentage’’ for purposes of determining percentage depletion for oil and
gas produced from marginal properties.
The applicable percentage is the perJuly 7, 1997
centage (not greater than 25 percent)
equal to the sum of 15 percent, plus one
percentage point for each whole dollar
by which $20 exceeds the reference
price (determined under § 29(d)(2)(C))
for crude oil for the calendar year
preceding the calendar year in which the
taxable year begins. The reference price
determined under § 29(d)(2)(C) for the
1996 calendar year is $18.46.
Table 1 contains the applicable percentages for marginal production for
taxable years beginning in calendar
years 1991 through 1997.
Notice 97–38 Table 1
APPLICABLE PERCENTAGE FOR
MARGINAL PRODUCTION
Calendar Year
Applicable
Percentage
1991
1992
1993
1994
1995
1996
1997
15 percent
18 percent
19 percent
20 percent
21 percent
20 percent
16 percent
DRAFTING INFORMATION
The principal author of this notice is
Brenda M. Stewart of the Office of
Assistant Chief Counsel (Passthroughs
and Special Industries). For further information regarding this notice contact
Ms. Stewart on (202) 622–3120 (not a
toll-free call).
1997 Section 43 Inflation
Adjustment
Notice 97–39
Section 43(b)(3)(B) of the Internal
Revenue Code requires the Secretary to
publish an inflation adjustment factor.
The enhanced oil recovery credit under
§ 43 for any taxable year is reduced if
the ‘‘reference price,’’ determined under
§ 29(d)(2)(C), for the calendar year preceding the calendar year in which the
taxable year begins is greater than $28
multiplied by the inflation adjustment
factor for that year.
The term ‘‘inflation adjustment factor’’ means, with respect to any calendar
year, a fraction the numerator of which
is the GNP implicit price deflator for the
preceding calendar year and the denominator of which is the GNP implicit price
deflator for 1990.
8
Because the reference price for the
1996 calendar year ($18.46) does not
exceed $28 multiplied by the inflation
adjustment factor for the 1997 calendar
year, the enhanced oil recovery credit
for qualified costs paid or incurred in
1997 is determined without regard to the
phase-out for crude oil price increases.
Table 1 contains the GNP implicit
price deflator used for the 1997 calendar
year, as well the previously published
GNP implicit price deflators used for the
1991 through 1996 calendar years.
Notice 97–39 TABLE 1
GNP IMPLICIT PRICE DEFLATORS
Calendar
GNP Implicit Price
Year
Deflator
1990
112.9 (used for 1991)
1991
117.0 (used for 1992)
1992
120.9 (used for 1993)
1993
124.1 (used for 1994)
1994
126.0 (used for 1995)
1995
107.5 (used for 1996)*
1996
109.7 (used for 1997)
*Beginning in 1995, the GNP implicit price deflator was rebased relative to 1992. The 1990 GNP implicit
price deflator used to compute the
1996 § 43 inflation adjustment factor
is 93.6.
Table 2 contains the inflation adjustment factor and the phase-out amount
for taxable years beginning in the 1997
calendar year as well as the previously
published inflation adjustment factors
and phase-out amounts for the 1991
through 1996 calendar years.
Notice 97–39 TABLE 2
INFLATION ADJUSTMENT
FACTORS AND PHASE-OUT
AMOUNTS
Inflation
Calendar
Adjustment Phase-out
Year
Factor
Amount
1991
1.0000
0
1992
1.0363
0
1993
1.0708
0
1994
1.0992
0
1995
1.1160
0
1996
1.1485
0
1997
1.1720
0
DRAFTING INFORMATION
The principal author of this notice is
Brenda M. Stewart of the Office of
Assistant Chief Counsel (Passthroughs
and Special Industries). For further information regarding this notice contact
1997-27
I.R.B.
Ms. Stewart on (202) 622–3120 (not a
toll-free call).
26 CFR 601.602: Forms and instructions.
(Also Part I, Sections 220, 408, 6041, 6041A,
6042, 6043, 6044, 6045, 6047, 6049, 6050A,
6050B, 6050D, 6050E, 6050H, 6050J, 6050N,
6050P, 6050Q, 1.408–5, 1.408–7, 1.6041–1,
7.6041–1, 1.6042–2, 1.6042–4, 1.6044–2,
1.6044–5, 1.6045–1, 5f.6045–1, 1.6045–2,
1.6045–4, 1.6047–1, 1.6049–4, 1.6049–6,
1.6049–7, 1.6050A–1, 1.6050B–1, 1.6050D–1,
1.6050E–1, 1.6050H–1, 1.6050H–2, 1.6050J–1T,
1.6050N–1, 1.6050P–1)
Rev. Proc. 97–32
CONTENTS
PART A. GENERAL
SECTION 1. PURPOSE
SECTION
2.
NATURE
OF
CHANGES
SECTION 3. REQUIREMENTS FOR
ACCEPTABLE
SUBSTITUTE
FORMS 1096, 1098, 1099, 5498,
AND W–2G
SECTION 4. DEFINITIONS
SECTION 5. INSTRUCTIONS FOR
PREPARING PAPER FORMS
THAT WILL BE FILED WITH
THE IRS (COPY A)
SECTION 6. MAGNETIC MEDIA
AND ELECTRONIC FILING
SECTION 7. SUBSTITUTE STATEMENTS TO FORM RECIPIENTS
AND FORM RECIPIENT COPIES
(a)
(b)
(c)
(d)
(e)
(f)
(g)
(h)
(i)
(j)
(k)
(l)
(m)
Form 1098
Form 1099–A
Form 1099–B
Form 1099–C
Form 1099–DIV
Form 1099–G
Form 1099–INT
Form 1099–LTC
Form 1099–MISC
Form 1099–MSA
Form 1099–OID
Form 1099–PATR
Form 1099–R
(n)
(o)
(p)
(q)
(r)
Form 1099–S
Form W–2G
Form 5498
Form 5498–MSA
Form 1096
I.R.B.
PART C. PECIFICATIONS FOR
SUBSTITUTE FORMS W–2G TO BE
FILED WITH IRS
SECTION 1. GENERAL
SECTION
2. SPECIFICATIONS
FOR COPY A OF FORMS W–2G
PART D. DDITIONAL INSTRUCTIONS
FOR FORMS 1098, 1099, 5498,
AND W–2G
SECTION 1. OTHER COPIES
SECTION 2. OMB REQUIREMENTS
SECTION
3. REPRODUCIBLE
COPIES
SECTION 4. EFFECT ON OTHER
REVENUE PROCEDURES
PART E. EXHIBITS
EXHIBIT A. Form 1098
EXHIBIT B. Form 1099–A
EXHIBIT C. Form 1099–B
EXHIBIT D. Form 1099–C
EXHIBIT E. Form 1099–DIV
EXHIBIT F. Form 1099–G
EXHIBIT G. Form 1099–INT
EXHIBIT H. Form 1099–LTC
EXHIBIT I. Form 1099–MISC
EXHIBIT J. Form 1099–MSA
EXHIBIT K. Form 1099–OID
EXHIBIT L. Form 1099–PATR
EXHIBIT M. Form 1099–R
EXHIBIT N. Form 1099–S
EXHIBIT O. Form W–2G
EXHIBIT P. Form 5498
EXHIBIT Q. Form 5498–MSA
EXHIBIT R. Form 1096
PART A. GENERAL
SECTION 1. PURPOSE
.01 The purpose of this revenue procedure is to set forth the requirements
for:
1. Using official Internal Revenue
Service (IRS) forms to file information
returns with the IRS,
2. Preparing acceptable substitutes of
the official IRS forms to file information returns with the IRS, and
3. Using official or acceptable substitute forms to furnish information to a
recipient.
This revenue procedure contains specifications for the following information
returns:
Mortgage Interest Statement;
Acquisition or Abandonment of Secured Property;
Proceeds From Broker and Barter Exchange Transactions;
Cancellation of Debt;
Dividends and Distributions;
Certain Government Payments;
Interest Income;
Long-Term Care and Accelerated Death Benefits;
Miscellaneous Income;
Distributions From Medical Savings Accounts;
Original Issue Discount;
Taxable Distributions Received From Cooperatives;
Distributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance
Contracts, etc.;
Proceeds From Real Estate Transactions;
Certain Gambling Winnings;
IRA, SEP, or SIMPLE Retirement Plan Information;
Medical Savings Account Information; and
Annual Summary and Transmittal of U.S. Information Returns.
.02 For the purpose of this revenue
procedure, a substitute form or statement
is one that is not printed by the IRS. For
a substitute form or statement to be
acceptable to the IRS, it must conform
to the official form or the specifications
outlined in this revenue procedure. DO
1997-27
PART B. SPECIFICATIONS FOR
SUBSTITUTE FORMS TO BE FILED
WITH IRS (EXCEPT Form W–2G)
SECTION 1. GENERAL
SECTION
2. SPECIFICATIONS
FOR FORM 1096 AND COPY A
OF FORMS 1098, 1099, AND
5498
NOT SUBMIT ANY SUBSTITUTE
FORMS OR STATEMENTS TO IRS
FOR APPROVAL. Private printers may
not state ‘‘This is an IRS approved
form.’’ Further, only those forms that
conform to the official form or comply
with the specifications set forth herein
9
are acceptable. See Part A, Section 7,
for the specifications that apply to form
recipient statements (generally Copy B).
.03 Filers who make payments to
certain persons (payees) (or in some
cases receive payments) during a calendar year are required by the Internal
July 7, 1997
Revenue Code (IRC) to file information
returns with the IRS reflecting these
payments. Further, as discussed below,
these filers must provide this information to their payees.
.04 In general, the manner in which a
filer must file an information return is
governed by section 6011 of the IRC. A
filer must file information returns on
magnetic media (including electronic filing) or on paper. Under section 6011 of
the IRC, a filer who is required to file
250 or more information returns (of any
one type) during a calendar year must
file those returns on magnetic media.
Filers required to file less than 250
returns during a calendar year may, but
are not required to, file such information
returns on magnetic media (small volume filers). The IRS explains these legal
requirements for filing information returns (and providing a copy to a payee)
in the annual publication of Instructions
for Forms 1099, 1098, 5498, and W–2G.
.05 Copies of the official forms for
the reporting year and the instruction
booklet may be obtained by calling our
toll-free number 1–800–TAX–FORM
(1–800–829–3676).
.06 The IRS prints and provides the
forms on which various payments must
be reported. Alternatively, filers may
prepare substitute copies of these IRS
forms and use such forms to report
payments to the IRS.
.07 IRS operates a centralized call
site, located at the Martinsburg Computing Center (MCC), to answer questions
related to information returns, penalties,
and backup withholding. The call site
phone number is 304–263–8700. The
number for Telecommunications Device
for the Deaf (TDD) is 304–267–3367.
These are not toll-free numbers.
.08 IRS has established a personal
computer based Information Reporting
Program Bulletin Board System (IRPBBS) at MCC. This system provides
information about forms and publications, including this revenue procedure,
news of the latest changes, answers to
questions, and other features. The IRPBBS is available for public use and can
be reached by dialing 304–264–7070.
The IRP–BBS is compatible with most
modems. For more information concerning this system, call MCC at 304–263–
8700 Monday through Friday 8:30 A.M.
to 4:30 P.M. eastern time.
SEC. 2. NATURE OF CHANGES
.01 The text and exhibits were updated for tax year 1997.
July 7, 1997
.02 Three new forms were developed
for tax year 1997. They are: Form
1099–LTC, Long-Term Care and Accelerated Death Benefits (Exhibit H); Form
1099–MSA, Distributions From Medical
Savings Accounts (Exhibit J); and Form
5498–MSA, Medical Savings Account
Information (Exhibit Q).
.03 Information about including telephone numbers on recipient statements
was added to Part A, Sections 7.01(8)
and 7.03(3).
.04 Several existing forms were
changed as follows: Form 1099–C (Exhibit D) was changed by eliminating box
4, previously titled ‘‘Penalties, fines,
admin. costs included in box 2’’; Form
1099–MISC (Exhibit I) was changed by
deleting the reporting of Excess Golden
Parachute Payments (EPP) in box 7 and
moving it the reporting to a new box 13;
Form 1099–PATR (Exhibit L) was
changed by retitling box 7 from ‘‘Energy
investment credit’’ to ‘‘Investment
credit’’, and retitling box 8 from ‘‘Jobs
credit’’ to ‘‘Work opportunity credit’’;
Form 1099–R (Exhibit M) was changed
by adding ‘‘SIMPLE’’ to the check box
in box 7 to designate a distribution from
a SIMPLE retirement account; The title
of Form 5498 (Exhibit P) was changed
to ‘‘IRA, SEP or SIMPLE Retirement
Plan Information’’, the title of box 2 was
changed from ‘‘Rollover IRA contributions’’ to ‘‘IRA, SEP, or SIMPLE
rollover contributions,’’ IRA and
SIMPLE check boxes were added to box
5 to designate the type of account, box 6,
titled ‘‘SEP contributions,’’ was added to
report SEP contributions, box 7, titled
‘‘SIMPLE contributions,’’ was added to
report SIMPLE contributions; and Form
1096 (Exhibit R) was changed to include
three new checkboxes for new Forms
1099–LTC, 1099–MSA and 5498–MSA.
NOTE: REFER TO THE 1997 INSTRUCTIONS FOR FORMS 1099,
1098, 5498, AND W–2G FOR ADDITIONAL INFORMATION REGARDING
THESE FORM CHANGES.
.05 The IRS mailing address in Part
A, Sec. 3.01 has changed.
.06 A statement regarding the use of
logos on substitute statements to recipients was added to Part A, Sec. 7.01 (9).
SEC. 3 REQUIREMENTS FOR
ACCEPTABLE SUBSTITUTE FORMS
1096, 1098, 1099, 5498, and
W–2G
.01 Paper substitutes for Form 1096
and Copy A of Forms 1098, 1099, 5498,
and W–2G that totally conform to the
10
specifications contained in this revenue
procedure may be privately printed and
filed as returns with the IRS. The reference to the Department of the Treasury Internal Revenue Service should be included on all such forms. If you are
uncertain of any specification set forth
herein and want that specification clarified, you may submit a letter citing the
specification in question, giving your
understanding and interpretation of the
specification, and enclosing an example
of the form (if appropriate) to:
Internal Revenue Service
ATTN: IRP Coordinator - T:S:P:S
1111 Constitution Avenue, NW
Washington, DC 20224
NOTE: Allow at least 45 days for the
IRS to respond.
.02 Copy B (Form 1098 - For Payer,
Form 1099–A - For Borrower, Form
1099–C - For Debtor, Form 1099–LTC For Policyholder, Form 1099–S - For
Transferor, Other Forms 1099 - For Recipient, Forms 5498 and 5498–MSA For Participant, and Forms W–2G and
1099–R - To Be Attached To the Federal
Tax Return), and Copy C - (Form
1099–R - For Recipient’s Records, Form
W–2G - For Winner’s Records and,
Form 1099–LTC - For Insured) must
contain the information specified in Part
A, Section 7 in order to constitute a
‘‘statement’’ or ‘‘official form’’ under the
applicable provisions of the Internal Revenue Code. The format of this information is at the discretion of the filer with
the exception of the location of the tax
year, form number and form name specified in Part A, Section 7.01(6) and
7.03(1) and composite Form 1099 statements specified in PART A, Section 7.02.
.03 Forms 1096, 1098, 1099, 5498,
and W–2G are subject to annual review
and possible change. Therefore, filers
are cautioned against overstocking supplies of privately printed substitutes.
THE SPECIFICATIONS CONTAINED
IN THIS REVENUE PROCEDURE APPLY TO 1997 FORMS ONLY.
.04 Proposed substitutes for Copy A
that do not conform to the specifications
in this revenue procedure are not acceptable. Further, if you file such forms with
IRS, you may be subject to a penalty for
failure to file an information return
under section 6721 of the Internal Revenue Code (IRC). Generally, the penalty
is $50 for each failure to file a form (up
to $250,000) that the IRS cannot accept
as a return because it does not meet the
provisions in this revenue procedure. No
IRS office is authorized to allow deviations from this revenue procedure.
1997-27
I.R.B.
SEC. 4. DEFINITIONS
.01 The term ‘‘form recipient’’ means
the person to whom you are required by
law to furnish a copy of the official
form or information statement: i.e., for
Form 1098, the recipient is the ‘‘payer/
borrower’’; Form 1099–A, the ‘‘borrower’’; Form 1099–C, the ‘‘debtor’’;
Form 1099–LTC, ‘‘the policyholder and
insured’’;
Form
1099–S,
the
‘‘transferor’’; other Forms 1099, the
payment recipient; Forms 5498 and
5498–MSA, the ‘‘participant’’; and
Form W–2G, the ‘‘winner.’’
.02 The term ‘‘filer’’ means the person or organization required by law to
file a form listed in Part A, Section 1.01
with the IRS. Thus, a filer may be a
payer, a creditor, a recipient of mortgage
interest payments, a broker, a barter
exchange, a person reporting real estate
transactions, a trustee or issuer of an
individual retirement arrangement (including an IRA, SEP, or SIMPLE), a
trustee of a medical savings account, or
a lender who acquires an interest in
secured property or who has reason to
know that the property has been abandoned.
.03 The term ‘‘substitute form’’
means a paper substitute of Copy A of
an official form listed in Part A, Section
1.01 that totally conforms to the provisions in this revenue procedure.
.04 The term ‘‘substitute form recipient statement’’ means a paper statement
of the information reported on a form
listed in PART A, Section 1.01 that must
be furnished to a person (form recipient), as so defined under the applicable
provisions of the Internal Revenue Code
and the applicable regulations.
.05 A composite substitute statement
is one in which two or more required
statements (e.g., Forms 1099–INT and
1099–DIV) are furnished to the recipient
on one document. However, each statement must be separately designated and
must contain all the requisite Form 1099
information except as provided in Part
A, Section 7. A composite statement
MAY NOT be filed with the IRS. See
Part A, Section 7.02 and 7.04 for more
information on composite statements.
SEC. 5. INSTRUCTIONS FOR
PREPARING PAPER FORMS THAT
WILL BE FILED WITH THE IRS
(Copy A)
.01 The form recipient’s name, street
address, city, state, and Zip Code information should be TYPED OR MACHINE PRINTED IN BLACK INK on
1997-27
I.R.B.
separate lines. Although handwritten
forms will be accepted, in order for IRS
to process the submitted forms in the
most economical manner, the IRS prefers that filers TYPE OR MACHINE
PRINT data entries. In addition, filers
should insert data in the middle of
blocks well separated from other printing and guidelines, and take other measures to guarantee a clear, dark black,
sharp image. Carbon copies and photocopies are not acceptable. The city,
state, and Zip Code must be on the
same line.
.02 The name of the appropriate form
recipient must be shown on the first or
second name line in the area on the
form provided for the form recipient’s
name and address. No descriptive information or other name may precede the
form recipient’s name. Only ONE form
recipient’s name may appear on the first
name line of the form. If the names of
multiple recipients must be set forth on
the form, on the first name line insert
the recipient name that corresponds to
the recipient taxpayer identification
number (TIN) shown on the form. Place
the other form recipients’ names, on the
succeeding name line (up to 2 name
lines are allowable). Because certain
states require that trust accounts be
provided in a different format, generally
filers should provide information returns
reflecting payments to trust accounts
with (1) the trust’s employer identification number (EIN) in the recipient’s TIN
area, (2) the trust’s name on the recipient’s first name line, and (3) the name
of the trustee on the recipient’s second
name line.
.03 You should use the account
number box for an account number
designation. This number must not appear anywhere else on the form, and this
box may not be used for any other item.
Showing the account number is optional.
However, it may be to your benefit to
include the recipient’s account number
or designation on paper documents if
your system of records uses the account
number or designation in conjunction
with, or rather than, the name, social
security number, or employer identification number for identification purposes.
If you furnish the account number, the
IRS will include it in future notices to
you about backup withholding. If you
use window envelopes and reduced rate
mail to mail statements to recipients, be
sure the account number does not appear in the window. Otherwise the
Postal Service may not accept them for
mailing.
11
.04 Machine printed forms should be
printed using a 6 lines/inch option, and
should be printed in 10 pitch pica (i.e.,
10 print positions per inch) or 12 pitch
elite (i.e., 12 print positions per inch).
Proportional spaced fonts are unacceptable.
.05 DO NOT use a felt tip marker.
The machine used to ‘‘read’’ paper
forms generally cannot ‘‘read’’ this ink
type.
.06 Substitute forms prepared in continuous or strip form must be burst and
stripped to conform to the size specified
for a single sheet before they are filed
with IRS. The size specified does not
include pinfeed holes. Pinfeed holes
MUST NOT be present on forms filed
with the IRS.
.07 Use decimal points to indicate
dollars and cents. DO NOT use dollar
signs ($), ampersands (&), asterisks (*),
commas (,), or other special characters
in the numbered money boxes. Example:
2000.00 is acceptable.
.08 DO NOT FOLD Forms 1096,
1098, 1099, or 5498 being mailed to
IRS. Mail these forms flat in an appropriately sized envelope or box. Folded
documents cannot be readily moved
through the scanner transport used in
IRS processing.
.09 DO NOT STAPLE Forms 1096
to the returns being transmitted. Staple
holes in the vicinity of the return code
number reduce the IRS’s ability to machine scan the type of documents.
.10 DO NOT type other information
on Copy A. DO NOT cut or separate
the individual forms on the sheet of
forms of Copy A (except Forms W–2G).
.11 MAIL completed paper forms to
the IRS service center specified on the
back of Form 1096 and in the 1997
‘‘Instructions for Forms 1099, 1098,
5498, and W–2G.’’ Specific information
needed to complete the forms in this
revenue procedure is given in those
instructions. A chart is included in those
instructions giving a quick guide to
which form must be filed to report a
particular payment.
SEC. 6. MAGNETIC MEDIA AND
ELECTRONIC FILING
.01 All forms listed in Section 1.01
(except Form 1096) may be filed magnetically or electronically. The IRS encourages all filers including nominees
(hereafter collectively referred to as filers) to file information returns on magnetic media or electronically instead of
on paper forms.
July 7, 1997
.02 Any person who is required to
file 250 or more information returns (of
any one type of form) for one calendar
year MUST file on magnetic media
unless a hardship waiver is requested
and received. To request a one year
waiver of the magnetic media filing
requirements, for the current tax year
only, submit Form 8508, Request for
Waiver From Filing Information Returns
on Magnetic Media. See Publication
1220 Part A, Section 5, for more information. Specifications for filing information returns on magnetic media (or
electronically) are contained in Publication 1220, ‘‘Specifications for Filing
Forms 1098, 1099 Series, 5498, and
W–2G Magnetically or Electronically.’’
Copies of this publication may be obtained by calling 1–800–TAX–FORM
(1–800–829–3676). Payers who do not
comply with the magnetic media filing
requirements and who are not granted a
waiver may be subject to penalties.
Note: Filing electronically will satisfy
the magnetic media filing requirements.
Refer to Publication 1220, Part C,
Bisynchronous (Mainframe) Electronic
Filing Specifications and Part D, Asynchronous (IRB–BBS) Electronic Filing
Specifications.
SEC. 7. SUBSTITUTE STATEMENTS
TO FORM RECIPIENTS AND FORM
RECIPIENT COPIES
If you are not using the official IRS
form to furnish statements to recipients,
your substitute statements must comply
with the rules in this section. In general,
see Regulations sections 1.6042–4,
1.6044–5, 1.6049–6, and 1.6050N–1 on
the manner in which certain statements
must be provided to recipients (statement mailing requirements for most
Forms 1099–DIV and 1099–INT, all
Forms 1099–OID and 1099–PATR, and
Form 1099–MISC or 1099–S for royalties). Note: A trustee of a grantor-type
trust may choose to file Forms 1099 and
furnish a statement to the grantor under
Regulations section 1.671–4(b)(2)(iii)
and (b)(3)(ii). The statement required by
those regulations is not subject to the
requirements in this Section 7.
.01 SUBSTITUTE STATEMENTS
TO RECIPIENTS - Forms 1099–INT
(except for interest reportable under section 6041), 1099–DIV (except for section 404(k) dividends), 1099–OID, and
1099–PATR ONLY. The requirement to
furnish Form recipients with an official
Form 1099–INT, DIV, OID, or PATR
may be met by furnishing Copy B of
July 7, 1997
the official form or by furnishing a
substitute Form 1099 (form recipient
statement) if it contains the same language as that of the official IRS form
(such as aggregate amounts paid to the
form recipient, any backup withholding,
the name, address, and TIN of the
person making the return, and any other
information required by the official
form). Information not required by the
official form should not be included on
the substitute form except state tax
withholding information. You may enter
a total of the individual accounts listed
on the form only if they have been paid
by the same payer. For example, if you
are listing interest paid on several accounts by one financial institution on
Form 1099–INT, you may also enter
the total interest amount. You may also
enter a date next to the corrected box if
that box is checked.
The form recipient statement, i.e.,
Copy B of a substitute form for Forms
1099–INT, 1099–DIV, 1099–OID, or
1099–PATR, must comply with the following requirements.
(1) Box captions and numbers that
are applicable must be clearly
identified, using the same wording and numbering as on the
official form. However on Form
1099–INT, if box 3 is not on
your substitute form, you may
drop ‘‘not included in box 3’’
from the box 1 caption.
(2) The form recipient statement must
contain all applicable form recipient instructions provided on the
front and back of the official IRS
form. Those instructions may be
provided on a separate sheet of
paper.
(3) The form recipient statement must
contain the following statement in
bold and conspicuous type, ‘‘This
is important tax information
and is being furnished to the
Internal Revenue Service. If you
are required to file a return, a
negligence penalty or other
sanction may be imposed on
you if this income is taxable
and the IRS determines that it
has not been reported.’’
(4) The box caption ‘‘Federal income tax withheld’’ must be in
bold face type on the form recipient statement.
(5) The form recipient statement must
contain the Office of Management
and Budget (OMB) number as
shown on the official IRS form.
See Part D, Section 2.
12
(6) The form recipient statement must
contain the tax year (e.g., 1997),
form number (e.g., Form 1099–
INT), and form name (e.g., Interest Income) of the official IRS
Form 1099 for which it substitutes prominently displayed together in one area of the statement. For example, the tax year,
form number, and form name
could be shown in the upper right
part of the statement. Each copy
must be appropriately labeled
(such as Copy B, For Recipient)
(see Part D, Section 1.02 for
applicable labels of forms).
NOTE: DO NOT include the
words ‘‘Substitute for’’ or ‘‘In
lieu of’’ on the form recipient
statement.
(7) Layout and format of the form is
at the discretion of the filer. However, IRS encourages the use of
statements with boxes so that the
statement has the appearance of a
form and can be easily distinguished from other nontax statements.
(8) Because of new tax law enacted
in 1996, 1099–DIV; 1099–INT;
1099–OID; and 1099–PATR recipient statements must include
the telephone number of a person
to contact: The telephone number must be conspicuous but
may appear anywhere on the
recipient statement.
(9) No additional enclosures, such as
advertising, promotional material,
or a quarterly or annual report,
are permitted with Forms 1099–
DIV, 1099–INT, 1099–OID,
1099–PATR, and forms reporting
royalties only (Forms 1099–MISC
or 1099–S). NOTE: The IRS intends to amend the regulations to
allow the use of certain logos and
identifying slogans on substitute
statements to recipients that are
subject to the statement mailing
requirements. Until the new regulations are issued, the IRS will
not assess penalties for the use of
a logo (including the name of the
payer in any typeface, font, or
stylized fashion and/or a symbolic
icon) or slogan on a statement to
a recipient if the logo or slogan is
used by the payer in the ordinary
course of its trade or business. In
addition, use of the logo or slogan
must not make it less likely that a
reasonable payee will recognize
1997-27
I.R.B.
the importance of the statement
for tax reporting purposes.
(10) With respect to dividend income,
a mutual fund family may separately state on one document
(e.g., one piece of paper) the
dividend income earned by a
recipient from each fund within
the family of funds as required
by Form 1099–DIV. However,
each fund and its earnings must
be separately stated. The form
must contain an instruction to
the recipient that each fund’s
dividends and name, not the
name of the mutual fund family,
must be reported on the recipient’s tax return. The form cannot contain an aggregate total
of all funds. Moreover, a mutual
fund family may furnish a single
statement (as a single filer) for
Forms 1099–INT, DIV, and OID
information. Each fund and its
earnings must be separately
stated. The form must contain an
instruction to the recipient that
each fund’s earnings and name,
not the name of the mutual fund
family, must be reported on the
recipient’s tax return. The form
cannot contain an aggregate total
of all funds.
.02 COMPOSITE SUBSTITUTE
STATEMENTS - FORMS 1099–INT
(except for interest reportable under
section 6041), 1099–DIV (except for
section 404(k) dividends)), 1099–OID,
AND 1099–PATR ONLY. - A composite form recipient statement is permitted
for reportable payments of interest, dividends, original issue discount, and/or
patronage dividends (Forms 1099–INT,
DIV, OID or PATR) when one payer is
reporting more than one of these payments during a calendar year to the
same form recipient. Generally, do not
include any other Form 1099 information (e.g., 1098 or 1099–A) on a composite statement with the information
required on the forms listed in the
preceding sentence. Exception: A filer
may include Form 1099–B information
on a composite form with the forms
listed above. Although the composite
form recipient statement may be on one
sheet, the format of the composite form
recipient statement must satisfy the following requirements in addition to the
requirements listed in Section 7.01
above.
(1) All information pertaining to a
particular type of payment must
be located and blocked together
1997-27
I.R.B.
on the form and must be separate
from any information covering
other types of payments included
on the form. For example, if you
are reporting interest and dividends, the Form 1099–INT information must be presented separately from the Form 1099–DIV
information.
(2) The tax year, form number, and
form name of the official IRS
forms for which the composite
form recipient statement substitutes must be prominently displayed together in one area at the
beginning of each appropriate
block of information.
(3) Any information required by the
official IRS forms that would otherwise be repeated in each information block is only required to
be listed once in the first information block on the composite form.
For example, there is no requirement to report the name of the
filer in each information block.
This rule does not apply to any
money amounts, e.g., Federal income tax withheld, or to any
other information that applies to
money amounts.
(4) A composite statement shall be
considered an acceptable substitute only if the type of payment
and the recipient’s tax obligation
with respect to the payment are
no less clear than if each required
statement were furnished separately on an official form.
.03 SUBSTITUTE STATEMENTS
TO RECIPIENTS - FORMS 1098,
1099–A, 1099–B, 1099–C, 1099–G,
1099–LTC, 1099–MISC, 1099–MSA,
1099–R, 1099–S, 5498, 5498–MSA,
W–2G, AND CERTAIN FORMS 1099–
INT AND 1099–DIV. Statements to
form recipients of payments reportable
on Forms 1098, 1099–A, 1099–B,
1099–C, 1099–G, 1099–LTC, 1099–
MISC, 1099–MSA, 1099–R, 1099–S,
5498, 5498–MSA 1099–DIV only for
section 404(k) dividends reportable
under section 6047, and 1099–INT
only for interest of $600 or more
made in the course of a trade or
business reportable under section
6041 can be, but are not required to be,
copies of the official forms. If you do
not use the official form as the form
recipient statement, the substitute recipient statement must meet the following
requirements:
(1) The tax year, form number, and
form name must be the same as
13
the official form, and must be
prominently displayed together in
one area of the statement. For
example, they may be shown in
the upper right part of the statement.
(2) The filer’s and the form recipient’s identifying information required on the official IRS form
must be included.
(3) Because of new tax law enacted
in 1996, the following statements
must include the telephone number of a person to contact: W–2G;
1098; 1099–A; 1099–B; 1099–
DIV; 1099–G (excluding state and
local income tax returns); 1098–
INT; 1099–MISC (excluding fishing boat proceeds); 1099–0ID;
1099–PATR; and 1099–S. The
telephone number must be conspicuous but may appear anywhere on the recipient statement. Although not required,
payers reporting on other Forms
1099 and 5498 are encouraged to
furnish telephone numbers.
(4) All applicable money amounts
and information, including box
numbers, required to be reported
to the form recipient must be
titled on the form recipient statement in substantially the same
manner as those on the official
IRS form. The box caption ‘‘Federal income tax withheld’’ must
be in bold face type on the form
recipient statement. Exception: If
you are reporting a payment as
‘‘Other income’’ in box 3 of
Form 1099–MISC, you may substitute appropriate explanatory
language for the box title. For
example, for payments of accrued
wages and leave to a beneficiary
of a deceased employee, you
might change the title of box 3 to
‘‘Beneficiary payments’’ or something similar. (You cannot make
this change on Copy A.)
(5) Appropriate instructions to the
form recipient, similar to those on
the official IRS form, must be
provided to aid in the proper
reporting of the items on the form
recipient’s income tax return. For
payments reported on Form
1099–B, the requirement to include instructions that are substantially similar to those on the
official IRS form may be satisfied
by providing form recipients with
a single set of instructions with
respect to all forms 1099–B stateJuly 7, 1997
ments required to be furnished in
a calendar year. NOTE: If Federal income tax withheld is shown
on Form 1099–R or W–2G,
Copy B (to be attached to the tax
return) and Copy C (for
recipient’s/winner’s records) must
be furnished to the recipient. If
Federal income tax withheld is
not shown on Form 1099–R or
W–2G, only Copy C is required
to be furnished. However, instructions similar to those contained
on the back of the official Copy
B and Copy C of Form 1099–R
must be furnished to the recipient.
For convenience, you may choose
to provide both Copies B and C
of Form 1099–R to the recipient.
(6) The quality of carbon used to
produce statements to recipients
must meet the following standards:
(a) all copies must be CLEARLY
LEGIBLE;
(b) all copies must have the capability to be photocopied;
(c) fading must not be of such a
degree as to preclude legibility
and the ability to photocopy. In
general, black chemical transfer
inks are preferred; other colors
are permitted only if the above
standards are met. Hot wax and
cold carbon spots are NOT permitted on any of the internal
form plies. These spots are permitted on the back of a mailer
top envelope ply.
(7) A mutual fund family may separately state on one document
(e.g., one piece of paper) the
Form 1099–B information for a
recipient from each fund as required by Form 1099–B. However, the gross proceeds, etc.,
from each transaction within a
fund must be separately stated.
The form must contain an instruction to the recipient that each
fund’s amount and name, not the
name of the mutual fund family,
must be reported on the recipient’s tax return. The form cannot
contain an aggregate total of all
funds.
(8) For Form 1099–S, you may use a
Uniform Settlement Statement under the Real Estate Settlement
Procedures Act of 1974 (RESPA)
as the written statement to the
transferor if it is conformed by
including on the statement the
legend described in (8)(g) below
July 7, 1997
and by designating which information on the Uniform Settlement
Statement is being reported to
IRS on Form 1099–S.
(9) Form recipient statements must
contain the following legends:
(a) Form 1098—(i) ‘‘The information in boxes 1, 2 and 3 is
important tax information and
is being furnished to the Internal Revenue Service. If you are
required to file a return, a negligence penalty or other sanction may be imposed on you if
the IRS determines that an underpayment of tax results because you overstated a deduction for this mortgage interest
or for these points or because
you did not report this refund
of interest on your return.’’
(ii) ‘‘The amount shown may
not be fully deductible by you
on your Federal income tax
return. Limitations based on the
cost and value of the secured
property may apply. In addition, you may only deduct an
amount of mortgage interest to
the extent it was incurred by
you, actually paid by you, and
not reimbursed by another person.’’
(b) Forms 1099–A and 1099–C—
‘‘This is important tax information and is being furnished to
the Internal Revenue Service. If
you are required to file a return, a negligence penalty or
other sanction may be imposed
on you if taxable income results from this transaction and
the IRS determines that it has
not been reported.’’
(c) Forms 1099–B, 1099–DIV,
1099–G, 1099–INT, 1099–
MISC, 1099–OID, 1099–
PATR, and W–2G, Copy
B—‘‘This is important tax information and is being furnished to the Internal Revenue
Service. If you are required to
file a return, a negligence penalty or other sanction may be
imposed on you if this income
is taxable and the IRS determines that it has not been reported.’’ Copy B of Form
W–2G must state ‘‘This information is being furnished to the
Internal Revenue Service. Report this income on your Federal tax return. If this form
14
shows Federal income tax withheld in box 2, attach this copy
to your return.’’
(d) Form 1099–R, Copy B—‘‘Report this income on your Federal tax return. If this form
shows Federal income tax withheld in box 4, attach this copy
to your return. This information
is being furnished to the Internal Revenue Service.’’ Form
1099–R, Copy C—‘‘This information is being furnished to the
Internal Revenue Service.’’
(e) Form
1099–LTC,
Copy
B—‘‘This is important tax information and is being furnished to the Internal Revenue
Service. If you are required to
file a return, a negligence penalty or other sanction may be
imposed on you if this item is
required to be reported and the
IRS determines that it has not
been
reported.’’
Copy
C—‘‘Copy C is provided to
you for information only. Only
the policyholder is required to
report this information on a tax
return.’’
(f) Form 1099–MSA— ‘‘This information is being furnished to
the Internal Revenue Service.’’
(g) Form 1099–S—‘‘This is important tax information and is
being furnished to the Internal
Revenue Service. If you are
required to file a return, a negligence penalty or other sanction may be imposed on you if
this item is required to be reported and the IRS determines
that it has not been reported.’’
(h) Form 5498—‘‘The information
in boxes 1 through 7 is being
furnished to the Internal Revenue Service.’’ ‘‘Note: If you
do not furnish another statement to the participant because
no contributions were made for
the year, the statement of the
fair market value of the account must contain a legend
designating which information
is being furnished to the Internal Revenue Service.’’
(i) Form 5498–MSA—‘‘The information in boxes 1 through 5 is
being furnished to the Internal
Revenue Service.’’
.04 COMPOSITE SUBSTITUTE
STATEMENT - FORMS SPECIFIED IN
7.03 ONLY. - A composite form recipient statement for forms specified in 7.03
1997-27
I.R.B.
is permitted when one filer is reporting
more than one of the related payments
during a calendar year to the same form
recipient. A composite statement is not
allowable for a combination of forms
listed in 7.01 and forms listed in 7.03
except that a filer may report Form
1099–B information on a composite
form with the forms listed in 7.01 as
described in 7.02. Although the composite form recipient statement may be on
one sheet, the format of the composite
form recipient statement must satisfy the
requirements listed in 7.02 above in
addition to the requirements specified in
7.03. A composite statement of Forms
1098 and 1099–INT (for interest reportable under section 6049) IS NOT ALLOWABLE.
PART B - SPECIFICATIONS FOR
SUBSTITUTE FORMS TO BE FILED
WITH IRS (EXCEPT Form W–2G)
SEC. 1. GENERAL
.01 The following specifications prescribe the format requirements for
Forms 1096 and Copy A of Forms
1098, 1099, and 5498. (See Part C for
Form W–2G specifications.)
.02 The form identifying number
(e.g., 9191 for Form 1099–DIV) must
be printed in nonreflective black carbonbased ink in print positions 15 through
19 using an OCR A font. The
checkboxes located to the right of the
form identifying number must be 10–
point boxes, the void checkbox is in
print position 25 and the corrected
checkbox in position 33. These measurements are from the left edge of the
paper, not including the perforated strip.
SEC. 2. SPECIFICATIONS FOR
FORM 1096 AND COPY A OF
FORMS 1098, 1099 AND 5498
.01 The substitute form must be an
exact replica of the official IRS form
with respect to layout and content.
NOTE: To determine the correct form
measurements, see Exhibits A through R
at the end of this publication. Hot wax
and cold carbon spots are not permitted
on any of the internal form plies. These
spots are permitted on the back of a
mailer top envelope ply. Use of chemical transfer paper for Copy A is acceptable. The Government Printing Office
(GPO) symbol must be deleted.
.02 Color and quality of paper for
Copy A (cut sheets and continuous
pinfeed forms) as specified by JCP Code
1997-27
I.R.B.
0–25, dated November 29, 1978, must
be white 100% bleached chemical wood,
optical character recognition (OCR)
bond produced in accordance with the
following specifications:
NOTE: Reclaimed fiber in any percentage is permitted provided the requirements of this standard are met.
Acidity: Ph value, average,
(1) not less than . . . . . . . . . . . . 4.5
(2) Basis Weight 17 x 22 500
cut sheets . . . . . . . . . . . . . . 18–20
Metric equivalent—2g/m2 75
A Tolerance of ±5 pct.
shall be allowed.
(3) Stiffness: Average, each
direction, not less than—
milligrams . . . . . . . . . . . . . . 50
(4) Tearing strength: Average,
each direction, not less
than—grams . . . . . . . . . . . . 40
(5) Opacity: Average, not less
than—percent . . . . . . . . . . . 82
(6) Thickness: Average—
inch—0.0038
Metric equivalent—
mm—0.097
A tolerance of +0.0005
inch (0.0127 mm) shall
be allowed.
Paper shall not vary more
than 0.0004 inch (0.0102
mm) from one edge to
the other.
(7) Porosity: Average, not less
than—seconds . . . . . . . . . . . 10
(8) Finish (smoothness): Average, each side—seconds. . . 20–55
For information only, the
Sheffield equivalent—units 170–100
(9) Dirt: Average, each side,
not to exceed—parts per
million . . . . . . . . . . . . . . . . . 8
.03 All printing on Copy A of Forms
1098, 1099, and 5498 must be in red
OCR dropout ink, Flint J–6983 (formerly Sinclair-Valentine) or an exact
match, except for the 4–digit form identifying numbers, which must be printed
in non-reflective carbon-based black ink.
The shaded areas of any substitute form
should generally correspond to that
present on the official form. Printing on
Form 1096 above the statement:
‘‘Please return this entire page to the
Internal Revenue Service. Photocopies
15
are NOT acceptable.’’ must be in red
OCR dropout ink (except for the 4-digit
form identifying number 6969). All
printing including and below the Form
1096 statement may be in any shade or
tone of black ink. Black ink should only
appear on the lower portion of the
reverse side of Form 1096 where it
would not bleed through and interfere
with scanning. NOTE: The instructions
on the back of Form 1096, which include filing addresses, must be printed.
The instructions to filers are printed on
the back of the copy designated for the
Payer, Recipient for Form 1098, Lender
for Form 1099–A, Creditor for Form
1099–C, Filer for Form 1099–S, or
Trustee or Issuer for Forms 5498 and
Form 5498–MSA, in any ink color or
tone. Separation between fields must be
0.1 inch. Other than the Form 1099–R,
the numbered captions are printed as a
solid with no shaded background. Other
printing requirements are discussed below.
OCR Specifications
The contractor must have or initiate a
quality control program to assure OCR
ink density. In addition, the contractor
must have access to either a MacBeth
PCM–II tester or a Kidder 082A tester
to evaluate the ink at regular intervals
throughout a shift.
Paper and Ink
Readings will be made when printed
on approved 20 lb. white OCR bond
with a reflectance of not less than 80%.
Black ink used must not have a reflectance greater than 15%. These readings
are based on requirements of the ‘‘REI
Input 80 Model C1 & D’’ Optical
Scanner using Flint Ink (Formerly
known as Sinclair - Valentine J–6983
red ink) or equal.
MacBeth PCM II Tester
The tested Print Contrast Signal
(PCS) values when using the MacBeth
PCM–II tester on the ‘‘C’’ scale must
range from .01 minimum to .06 maximum.
Kidder 082A Tester
The tested Print Contrast Signal
(PCS) values when using the Kidder
082A tester on the Infra Red (IR) scale
must range from .12 minimum to .21
maximum. White calibration disc must
be 100%, sensitivity must be set at one
(1).
July 7, 1997
Alternative Tester
If an alternative tester is used it must
be approved by the Government so that
tested (PCS) values can be established
with this equipment. Approval may be
obtained by writing to the following
address:
Commissioner of Internal Revenue
Attn: HR:F:P:P Room 1237
Tax Forms Procurement Analyst
1111 Constitution Avenue, NW
Washington, DC 20224
.04 Typography - Type must be substantially identical in size and shape
with corresponding type on the official
form. All rules are either 1/2–point or
3/4–point. Rules must be identical to
that on the official IRS form. NOTE:
The form identifying number must be
nonreflective carbon-based black ink in
OCR A Font.
.05 Dimension - Three Forms 1098,
1099, or 5498 (Copy A) are contained
on a single page, except Form 1099–R,
which contains two documents per page,
which is 8 inches wide (exclusive of
any snap-stubs and/or pinfeed holes) by
11 inches deep. There is a .33 inch top
margin from the top of the corrected
box, and there is a .25 inch right
margin. There is a 1/329 (0.03139) tolerance for the right margin. These measurements are constant for all Forms
1098, 1099 and 5498. The measurements will be shown only once in the
exhibit section of this publication, on
the Form 1098. Exceptions to these
measurements will be shown on the
remainder of exhibits. If the right and
top margins are properly aligned, the
left margin for all forms will be correct.
All margins must be free of all printing.
See Exhibits A through R in this publication for the correct form measurements.
.06 The depth of the individual trim
size of each form on a page must be the
same as that of the official form (3 2/3
inches, except 5 1/2 inches for Form
1099–R).
.07 The words ‘‘For Paperwork Reduction Act Notice and instructions for
completing this form, see the Instructions for Forms 1099, 1098, 5498, and
W–2G’’ must be printed on Copy A. The
words ‘‘For more information and the
Paperwork Reduction Act Notice, see
the 1997 Instructions for Forms 1099,
1098, 5498, and W–2G’’ must be
printed on Form 1096.
July 7, 1997
.08 The OMB Number must be
printed on Copies A and Form 1096 in
the same location as that on the official
form.
.09 Privately printed continuous substitute forms (Copy A) must be perforated at each 119 (3 per page, or 2 per
page for 1099–R) page depth. No perforations are allowed between the 3–2/39
forms (or 5–1/29 for Form 1099–R) on a
single copy page of Copy A.
.10 The words ‘‘Do NOT Cut or
Separate Forms on This Page’’ must be
printed in red dropout ink (as required
by form specifications) between the
three forms, or two forms for Forms
1099–R. NOTE: Perforations are required between all the other individual
copies (Copies B and C, and Copies 1
and 2 for Form 1099–R and Form
1099–MISC, and Copy D for Form
1099–R) included in the set.
.11 Chemical transfer paper is permitted for Copy A only if the following
standards are met:
(1) Only chemically backed paper
is acceptable for Copy A.
(2) Carbon coated forms are not
permitted. Front and back chemically
treated paper cannot be processed properly by machine.
(3) Chemically transferred images
must be black in color.
.12 Hot wax and cold carbon spots
are NOT permitted for Copy A. Interleaved carbon should be black and must
be of good quality to assure legibility of
information on all copies to preclude
smudging. All copies must be
CLEARLY LEGIBLE. Fading must not
be of such a degree as to preclude
legibility.
.13 Printer’s symbol—The GPO symbol must not be printed on substitute
Copy A. Instead, the employer identification number (EIN) of the forms
printer must be entered in the bottom
margin on the face of each individual
form of Copy A, or the bottom margin
on the reverse side of each Form 1096.
THE FORM MUST NOT CONTAIN
THE STATEMENT ‘‘IRS APPROVED.’’
.14 A postal indicia may be used if it
meets the following criteria: a) it is
printed in the OCR ink color prescribed
for the form; and b) no part of the
indicia is within 1 print position of the
scannable area.
.15 The Catalog Number (Cat. No.)
shown on the 1997 forms is used for
IRS distribution purposes and need not
be printed on any substitute forms.
16
PART C. SPECIFICATIONS FOR
SUBSTITUTE FORMS W–2G TO BE
FILED WITH IRS
SEC. 1. GENERAL
.01 The following specifications prescribe the format requirements for Form
W–2G—COPY A ONLY.
.02 A filer may file a substitute Form
W–2G with the IRS (hereinafter referred to as ‘‘substitute Copy A’’). The
substitute form (filed with the IRS) must
be an exact replica of the official form
with respect to layout and contents.
SEC. 2. SPECIFICATIONS FOR
COPY A OF FORMS W–2G
.01 Color and Quality of Paper—
Paper for Copy A must be white chemical wood bond, or equivalent, 20 pound
(basis 17 X 22–500), plus or minus 5
percent. The paper must consist substantially of bleached chemical wood pulp
and be free from unbleached or ground
wood pulp or recycled printed paper. It
also must be suitably sized to accept ink
without feathering.
.02 Color and Quality of Ink—All
printing must be in a high quality
non-gloss black ink. Bar codes should
be free from picks and voids.
.03 Typography—The type must be
substantially identical in size and shape
with that on the official form. All rules
on the document are either 1/2 point
(.007 inch), 1 point (0.015 inch), or 3
point (0.045). Vertical rules must be
parallel to the left edge of the document; horizontal rules, to the top edge.
.04 Dimensions—The official form is
8 inches wide x 3–2/3 inches deep,
exclusive of a 2/3 inch snap stub on the
left side of the form. The snap feature is
not required on substitutes. The top and
right margins must be 1/4 inch plus or
minus .0313. If the top and right margins are properly aligned, the left margin for all forms will be correct. All
margins must be free of any printing. If
the substitute forms are in continuous or
strip form, they must be burst and
stripped to conform to the size specified
for a single form.
(1) The width of a substitute Copy
A must be 8 inches. The left margin
must be free of all printing other than
that shown on the official form.
(2) The depth of a substitute Copy
A must be 3–2/3 inches.
.05 Hot wax and cold carbon spots
are not permitted on any of the internal
form plies. These spots are permitted on
1997-27
I.R.B.
the back of a mailer top envelope ply.
Interleaved carbons, if used, should be
black and of good quality to preclude
smudging.
.06 Printer’s Symbol—The Government Printing Office (GPO) symbol
must not be printed on substitute Forms
W–2G. Instead the employer identification number (EIN) of the forms printer
must be printed in the bottom margin on
the face of each individual form of
Copy A of such substitute forms. The
form must not contain the statement
‘‘IRS approved.’’
.07 The Catalog Number (Cat. No.)
shown on the 1997 Form W–2G is used
for IRS distribution purposes and need
not be printed on any substitute forms.
PART D. ADDITIONAL
INSTRUCTIONS FOR FORMS 1098,
1099, 5498, AND W–2G
SEC. 1. OTHER COPIES
.01 Copies B, C, and in some cases
D, 1, and 2, are included in the official
assembly for the convenience of the
filer. There is no legal requirement that
privately printed substitute forms include all these copies. Copies B, and in
some cases Copies C, will satisfy the
requirement of the law and regulations
concerning the statement of information
that is required to be furnished to the
form recipient. NOTE: If Federal income tax withheld is shown on Form
W–2G or 1099–R, Copy B (to be
attached to the tax return) and Copy C
must be furnished to the recipient. Copy
D (Forms 1099–R and W–2G) may be
desired as a filer record copy. Only
Copy A should be filed with the IRS.
.02 Arrangement of Assembly - The
parts of the assembly must be arranged,
from top to bottom, as follows: (a) All
forms-Copy A ‘‘For Internal Revenue
Service Center.’’ (b) Form 1098 - Copy
B ‘‘For Payer’’; Copy C ‘‘For Recipient.’’ (c) Form 1099–A - Copy B ‘‘For
Borrower’’; Copy C ‘‘For Lender.’’ (d)
Form 1099–C Copy B ‘‘For Debtor’’;
Copy C ‘‘For Creditor’’; (e) Form
1099–LTC Copy B ‘‘For Policyholder’’;
Copy C ‘‘For Insured’’ and Copy D
‘‘For Payer.’’ (f) Forms 1099–B, 1099–
DIV, 1099–G, 1099–INT, 1099–MSA,
1099–OID, and 1099–PATR - Copy B
‘‘For Recipient’’; Copy C ‘‘For Payer.’’
(g) Form 1099–MISC — Copy 1 ‘‘For
State Tax Department’’; Copy B ‘‘For
Recipient’’; Copy 2 ‘‘To be filed with
recipient’s state income tax return, when
required.’’; Copy C ‘‘For Payer.’’ (h)
1997-27
I.R.B.
Form 1099–R - Copy 1 ‘‘For State, City,
or Local Tax Department’’; Copy B
‘‘Report this income on your Federal tax
return. If this form shows Federal income tax withheld in box 4, attach this
copy to your return.’’; Copy C ‘‘For
Recipient’s Records’’; Copy 2 ‘‘File this
copy with your state, city, or local
income tax return, when required.’’;
Copy D ‘‘For Payer.’’ (i) Form 1099–S Copy B ‘‘For Transferor’’; Copy C ‘‘For
Filer.’’ (j) Form 5498 - Copy B ‘‘For
Participant’’; Copy C ‘‘For Trustee or
Issuer.’’ (k) Form 5498–MSA — Copy
B ‘‘For Participant’’; Copy C ‘‘For
Trustee.’’ (l) Form W–2G — Copy 1
‘‘For State Tax Department’’; Copy B
‘‘Report this income on your Federal tax
return. If this form shows Federal income tax withheld in box 2, attach this
copy to your return.’’ Copy C ‘‘For
Winner’s Records’’; Copy 2 ‘‘Attach
this copy to your state income tax
return, if required.’’; Copy D ‘‘For
Payer.’’
.03 Perforations are required between
forms on all copies except Copy A to
enable the separation of individual
forms. Copy A of Form W–2G may be
perforated.
SEC. 2. OMB REQUIREMENTS
.01 Office of Management and Budget (OMB) Requirements for Substitute
Forms—Public Law 96–511 requires
that: (1) OMB approve Internal Revenue
Service tax forms, (2) each form show
(in the upper right corner) the OMB
approval number, and (3) the form (or
its instructions) state why IRS is collecting the information, how it will be used
and whether it must be given to IRS.
The official IRS forms or instructions
contain this information and any substitute must contain it also.
.02 The OMB requirements for substitute IRS forms are:
(1) All substitute forms, including
substitute statements to recipients,
must show the OMB number as it
appears on the official IRS form;
(2) For Copy A, the OMB number
must appear exactly as shown on the
official IRS form;
(3) For any copy other than Copy
A, the OMB number must use one of
the following formats:
(a) OMB No. XXXX–XXXX
(preferred) or;
(b) OMB # XXXX–XXXX.
(4) All substitute forms (Copy A
only) must state ‘‘For Paperwork Reduc-
17
tion Act Notice, see the 1997 Instructions for Forms 1099, 1098, 5498, and
W–2G.’’
.03 The official OMB numbers may
be obtained from the official IRS
printed forms, and are also shown on
the forms in the exhibits.
SEC 3. REPRODUCIBLE COPIES
.01 As of April 30, 1996, IRS discontinued taking orders for reproducible
and information copies of federal tax
materials. However, there are several
new options available to obtain federal
tax material. The new options are:
(1) Internal Revenue Information
Services (IRIS)—IRIS is
housed within FedWorld,
known also as the Electronic
Marketplace of U.S. Government Information. IRIS at
FedWorld can be reached by:
(a) Modem (dial up) at 703–
321–8020,
(b) by Internet - Telnet to
iris.irs.ustreas.gov
(c) by File Transfer Protocol
(FTP)
connect
to
ftp.irs.ustreas.gov
(d) or by World Wide Web http://www.irs.ustreas.gov
(2) IRS Federal Tax Forms CD–
ROM—The IRS also offers an
alternative to downloading
electronic files from IRIS and
provides prior-year access to
tax forms and instructions
through it’s Federal Tax Forms
CD–ROM. First offered during
1994, the CD will again be
available for the upcoming filing season. For system requirements and to order the 1997
Federal Tax Forms CD–ROM
contact the Government Printing Office’s (GPO’s) Superintendent of Documents either:
(a) by telephone 202–521–1800;
or
(b) electronically through GPO’s
Federal Bulletin Board on
202–512–1387.
(3) Government Printing Office
Superintendent of Documents
Bookstores—The Government
Printing Office Superintendent
of Documents Bookstores also
sell individual copies of tax
forms, instructions and publications. Call 202–521–1800 to
find the bookstore nearest to
you.
July 7, 1997
.02 Forms 1096, 1098, 1099 Series,
and 5498 are provided electronically on
the IRS home page, IRIS bulletin board
system, and on the Federal Tax Forms
CD–ROM, but CANNOT be used for
filing with IRS when printed from a
conventional printer. These forms contain drop-out ink requirements as described in Part B, Section 2 of this
publication.
SEC. 4. EFFECT ON OTHER
REVENUE PROCEDURES
Revenue Procedure 96–42, 1996–32
I.R.B. 14, covering paper returns and
statements for payments made during
the 1996 calendar year is hereby superseded.
July 7, 1997
18
1997-27
I.R.B.
1997-27
I.R.B.
19
July 7, 1997
July 7, 1997
20
1997-27
I.R.B.
1997-27
I.R.B.
21
July 7, 1997
July 7, 1997
22
1997-27
I.R.B.
1997-27
I.R.B.
23
July 7, 1997
July 7, 1997
24
1997-27
I.R.B.
1997-27
I.R.B.
25
July 7, 1997
July 7, 1997
26
1997-27
I.R.B.
1997-27
I.R.B.
27
July 7, 1997
July 7, 1997
28
1997-27
I.R.B.
1997-27
I.R.B.
29
July 7, 1997
July 7, 1997
30
1997-27
I.R.B.
1997-27
I.R.B.
31
July 7, 1997
July 7, 1997
32
1997-27
I.R.B.
1997-27
I.R.B.
33
July 7, 1997
July 7, 1997
34
1997-27
I.R.B.
1997-27
I.R.B.
35
July 7, 1997
July 7, 1997
36
1997-27
I.R.B.
Part IV. Items of General Interest
Foundations Status of Certain
Organizations
Announcement 97–67
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:
Aldeen Foundation, Torrance, CA
Aslan Institute for Contemporary
Christianity, Bellingham, WA
Aura Community Hall Association,
Lanse, MI
Aurora Communities, Inc., Fullerton,
CA
Austin Police Womens Association,
Austin, TX
Brockton Charitable Trust, Brockton,
MA
Brush Country Foster Parent
Association, Beeville, TX
Bryan-College Station Waldorf School
Association, Incorporated, College
Station, TX
Communication Equipment Board,
Grand Junction, CO
Communities in Schools Fort Worth,
Inc., Fort Worth, TX
Community Based Services,
Swampscott, MA
Community Reintegration Services, Fort
Collins, CO
Community Services Center of Marin
County, Inc., San Rafael, CA
Community Theatre League Inc.,
Williamsport, PA
Comprehensive Rehabilitation Services,
Newark, CA
Concerned Citizens for a Clean
Environment, Portsmouth, RI
Congress of Chiropractic Consultants,
Inc., Austin, TX
1997–27
I.R.B.
Conservative Baptist Retirement
Services of the Southwest, Inc.,
Phoenix, AZ
Contreras Therapeutic Foster Home,
Inc., Keene, TX
Cooper Ministries, Inc., Winona, TX
Destiny Productions Inc., Orange, NJ
Disability International USA, Oakland,
CA
Dovetail Ministries, Colorado Springs,
CO
Eclipse Foundation Inc., Indianapolis,
IN
Elder Rights Coalition, Leawood, KS
Elmore County Association of Foster
Parents, Elmore, AL
Evans Chapel Foundation, Bennettsville,
SC
Federal Institute of Health, Darnestown,
MD
Florida Cultural Exhibitions Inc., St.
Petersburg, FL
Foundation for Family Development,
Denver, CO
Friends of Rye Town Park, Inc., Rye,
NY
Friends of Sausalito Parks and
Recreation, Sausalito, CA
Friends of Swaziland, New York, NY
Friends of Temescal, Inc., Corona, CA
Friends of the Brentwood Public
Library, Brentwood, NY
Gulf Coast Emergency Response Team,
Inc., Houston, TX
Gulf Coast Repertory Theatre Company,
Beaumont, TX
Housing Foundation, Yakima, WA
Houston Croquet Classic, Houston, TX
Houston Knights Baseball Association,
Bellaire, TX
Impact Ministries Inc., Evansville, IN
Islam United, Pasadena, CA
Island Medical Mission, North Brook,
IL
Jerome R. Mix Foundation, Cupertino,
CA
Justice Science Fiction and Fantasy
Convention, Garland, TX
J.W.F. for Youths Foundation, Inc., New
Haven, CT
JWS Associates, Inc., Dayton, OH
Kentucky Playwrights Theatre Co.,
Louisville, KY
Kids Core International, Inc.,
Hawthorne, CA
Little Missions, Wheatley Heights, NY
Los Sures Sip Housing Development
Fund Corporation, Brooklyn, NY
37
Massachusetts AIDS Discrimination
Initiative, Inc., Boston, MA
Massachusetts High Technology
Employment Library, Inc., Woburn,
MA
Massachusetts One Church One Child
Coalition, Inc., Boston, MA
Multicare Foundation, Inc., Gaffney, SC
Rothstein Family Foundation for
Educational Advancement, Sun
Valley, CA
Rubonia Community Center, Palmetto,
FL
Ruiz for Kids Inc., Dinuba, CA
Students for the Advancement of Health
Care in India, Baltimore, MD
Success Foundation, Seattle, WA
Sunnyside Elementary PTO, Idaho Falls,
ID
Support Center Executive Service Corps,
San Diego, CA
Support Future Wolverines, Eugene, OR
Susitna Valley Parent-Teacher
Organization, Talkeetna, AK
University Success Consortium Inc.,
Cincinnati, OH
Urban Access Inc., Brooklyn, NY
Voice, Manhattan Beach, CA
Voice of Hope Inc., Grants Pass, OR
Voice of Insurance Consumer Education
Foundation, Redondo Beach, CA
Volunteers in Moscow-VIM, Moscow,
ID
Vons-Utla Dial-A-Teacher Foundation
Inc., Los Angeles, CA
World of Endangered Species, Shingle
Springs, CA
Worldwide Videos Inc., Boise, ID
Writers International Network-Writers
Inter-Age Network, Fresno, CA
Youth Escaping the Streets, Glendale,
CA
Z Collective, San Francisco, CA
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.
July 7, 1997
Announcement of the Expedited Suspension of Attorneys, Certified Public
Accountants, Enrolled Agents, and Enrolled Actuaries From Practice Before the
Internal Revenue Service
Under title 31 of the Code of Federal
Regulations, section 10.76, the Director
of Practice is authorized to immediately
suspend from practice before the Internal Revenue Service any practitioner
who, within five years, from the date
the expedited proceeding is instituted,
(1) has had a license to practice as an
attorney, certified public accountant, or
actuary suspended or revoked for cause;
or (2) has been convicted of any crime
under title 26 of the United States Code
or, of a felony under title 18 of the
United States Code involving dishonesty
or breach of trust.
Attorneys, certified public accountants, enrolled agents, and enrolled actu-
aries are prohibited in any Internal Revenue Service matter from directly or
indirectly employing, accepting assistance from, being employed by, or sharing fees with, any practitioner disbarred
or suspended from practice before the
Internal Revenue Service.
To enable attorneys, certified public
accountants, enrolled agents, and enrolled actuaries to identify practitioners
under expedited suspension from practice before the Internal Revenue Service,
the Director of Practice will announce in
the Internal Revenue Bulletin the names
and addresses of practitioners who have
been suspended from such practice, their
designation as attorney, certified public
accountant, enrolled agent, or enrolled
actuary, and date or period of suspension. This announcement will appear in
the weekly Bulletin at the earliest practicable date after such action and will
continue to appear in the weekly Bulletins for five successive weeks or for as
many weeks as is practicable for each
attorney, certified public accountant, enrolled agent, or enrolled actuary so
suspended and will be consolidated and
published in the Cumulative Bulletin.
The following individuals have been
placed under suspension from practice
before the Internal Revenue Service by
virtue of the expedited proceeding provisions of the applicable regulations:
Name
Address
Designation
Date of Suspension
Newman, Harry J.
Sehnert, Fred
Gaskins, John D.
Covington, VA
Dallas, TX
Valdosta, GA
CPA
CPA
CPA
Indefinite from May 16, 1997
Indefinite from May 16, 1997
Indefinite from May 16, 1997
Turner, Charles L.
Thornton Jr., Kenneth W.
Kellogg, Richard
Goshen, KY
Murrells Inlet, SC
White Hall, AR
Attorney
Attorney
CPA
Indefinite from May 16, 1997
Indefinite from May 16, 1997
Indefinite from May 16, 1997
Stec, Albert J.
Huff Jr., James G.
Seall, William
Brunner, L. Keith
Bart, David R.
Shafer, David A.
Schereville, IN
Raleigh, NC
Dayton, OH
Centerville, OH
Oakwood, OH
Franklin, OH
CPA
CPA
Attorney
Attorney
Attorney
CPA
Indefinite from May 16, 1997
Indefinite from May 16, 1997
Indefinite from May 16, 1997
Indefinite from May 16, 1997
Indefinite from May 16, 1997
Indefinite from May 16, 1997
Schouman, James
Jones, Milo A.
Milford, MI
Greensboro, NC
Attorney
CPA
Indefinite from May 16, 1997
Indefinite from May 16, 1997
Dolan, Gary L.
Coorey, Edward T.
Sheehan, Thomas J.
Millonig, Arthur F.
McHaffie, Richard T.
Lincoln, NE
Hampton, NH
Maggie Valley, NC
Dayton, OH
St. Paul, MN
Attorney
Enrolled Agent
CPA
Attorney
Attorney
Indedinite from May 16, 1997
Indefinite from May 16, 1997
Indefinite from May 16, 1997
Indefinite from May 16, 1997
Indefinite from June 4, 1997
Rigler, Michael
Hopkins, Diane E.
Gainesville, TX
St. Paul, MN
CPA
Attorney
Indefinite from June 4, 1997
Indefinite from June 4, 1997
Adae, F. Brian
Barrington, RI
Attorney
Indefinite from June 4, 1997
July 7, 1997
38
1997–27
I.R.B.
Announcement of the Consent 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
Padgett, John
Crisp, Jerry W.
Kessel, Donald K.
Orleans, MA
Dallas, TX
Export, PA
Attorney
CPA
CPA
May 22, 1997 to October 21, 1998
June 1, 1997 to May 31, 2000
June 1, 1997 to November 30, 1998
Klimchak, Joseph
Steele, Lewis M.
Castleberry, Gene A.
Aliquippa, PA
Pittsburgh, PA
Oklahoma City, OK
CPA
CPA
Attorney
June 1, 1997 to February 28, 1998
June 1, 1997 to May 31, 1998
June 4, 1997 to August 3, 1997
O’Connor, Paul J.
Olshan, Robert M.
Johnson, Kirk L.
Mattutat, Stephen
Trenary, Lloyd R.
Ritchey Jr., Ferris
Hanover, MA
Washington, DC
Ann Arbor, MI
Ellicott City, MD
Oklahoma City, OK
Birmingham, AL
CPA
CPA
CPA
CPA
CPA
Attorney
June 6, 1997 to June 5, 2000
June 10, 1997 to December 9, 1998
July 1, 1997 to June 30, 1999
July 1, 1997 to March 31, 1998
August 1, 1997 to March 31, 1998
August 1, 1997 to July 31, 2000
Gold, Howard G.
Womack, Kathleen
Hamden, CT
Hammond, LA
CPA
CPA
August 1, 1997 to July 31, 1999
August 1, 1997 to July 31, 1999
1997–27
I.R.B.
39
July 7, 1997
Numerical Finding List1
Bulletins 1997–1 through 1997–26
Announcements:
97–1, 1997–2 I.R.B. 63
97–2, 1997–2 I.R.B. 63
97–3, 1997–2 I.R.B. 63
97–4, 1997–3 I.R.B. 14
97–5, 1997–3 I.R.B. 15
97–6, 1997–4 I.R.B. 11
97–7, 1997–4 I.R.B. 12
97–8, 1997–4 I.R.B. 12
97–9, 1997–5 I.R.B. 27
97–10, 1997–10 I.R.B. 64
97–11, 1997–6 I.R.B. 19
97–12, 1997–7 I.R.B. 55
97–13, 1997–8 I.R.B. 38
97–14, 1997–8 I.R.B. 38
97–15, 1997–9 I.R.B. 23
97–16, 1997–9 I.R.B. 23
97–17, 1997–9 I.R.B. 23
97–18, 1997–10 I.R.B. 67
97–19, 1997–10 I.R.B. 68
97–20, 1997–11 I.R.B. 22
97–21, 1997–11 I.R.B. 23
97–22, 1997–12 I.R.B. 47
97–23, 1997–11 I.R.B. 23
97–24, 1997–11 I.R.B. 24
97–25, 1997–12 I.R.B. 47
97–26, 1997–12 I.R.B. 48
97–27, 1997–13 I.R.B. 30
97–28, 1997–14 I.R.B. 15
97–29, 1997–14 I.R.B. 16
97–30, 1997–14 I.R.B. 16
97–31, 1997–14 I.R.B. 16
97–32, 1997–14 I.R.B. 17
97–33, 1997–15 I.R.B. 8
97–34, 1997–15 I.R.B. 8
97–35, 1997–15 I.R.B. 9
97–36, 1997–15 I.R.B. 10
97–37, 1997–15 I.R.B. 10
97–38, 1997–15 I.R.B. 10
97–39, 1997–16 I.R.B. 27
97–40, 1997–16 I.R.B. 28
97–41, 1997–16 I.R.B. 28
97–42, 1997–17 I.R.B. 19
97–43, 1997–17 I.R.B. 19
97–44, 1997–17 I.R.B. 19
97–45, 1997–17 I.R.B. 20
97–46, 1997–18 I.R.B. 53
97–47, 1997–19 I.R.B. 94
97–48, 1997–20 I.R.B. 8
97–49, 1997–20 I.R.B. 8
97–50, 1997–20 I.R.B. 8
97–51, 1997–20 I.R.B. 9
97–52, 1997–21 I.R.B. 22
97–53, 1997–21 I.R.B. 22
97–54, 1997–22 I.R.B. 23
97–55, 1997–22 I.R.B. 23
97–56, 1997–23 I.R.B. 17
97–57, 1997–23 I.R.B. 18
97–58, 1997–24 I.R.B. 13
97–59, 1997–24 I.R.B. 13
97–60, 1997-24 I.R.B. 14
97–62, 1997–25, I.R.B. 34
97–63, 1997–26 I.R.B. 8
97–64, 1997–26 I.R.B. 9
97–65, 1997–26 I.R.B. 9
97–66, 1997–26 I.R.B. 9
Delegation Orders:
232 (Rev. 3), 21
Notices:
Public Law:
97–1, 1997–2 I.R.B. 22
97–2, 1997–2 I.R.B. 22
97–3, 1997–1 I.R.B. 8
97–4, 1997–2 I.R.B. 24
97–5, 1997–2 I.R.B. 25
97–6, 1997–2 I.R.B. 26
97–7, 1997–1 I.R.B. 8
97–8, 1997–4 I.R.B. 7
97–9, 1997–2 I.R.B. 35
97–10, 1997–2 I.R.B. 41
97–11, 1997–2 I.R.B. 50
97–12, 1997–3 I.R.B. 11
97–13, 1997–6 I.R.B. 13
97–14, 1997–8 I.R.B. 23
97–15, 1997–8 I.R.B. 23
97–16, 1997–9 I.R.B. 15
97–17, 1997–10 I.R.B. 34
97–18, 1997–10 I.R.B. 35
97–19, 1997–10 I.R.B. 40
97–20, 1997–10 I.R.B. 52
97–21, 1997–11 I.R.B. 9
97–22, 1997–13 I.R.B. 9
97–23, 1997–14 I.R.B. 8
97–24, 1997–16 I.R.B. 6
97–25, 1997–16 I.R.B. 8
97–26, 1997–17 I.R.B. 6
97–27, 1997–17 I.R.B. 7
97–28, 1997–18 I.R.B. 45
97–29, 1997–20 I.R.B. 6
97–30, 1997–20 I.R.B. 6
97–31, 1997–21 I.R.B. 5
97–32, 1997–21 I.R.B. 8
97–33, 1997–22 I.R.B. 22
97–34, 1997–25 I.R.B. 22
97–35, 1997–25 I.R.B. 32
97–36, 1997–26 I.R.B. 6
105–2, 1997–18 I.R.B. 14
Proposed Regulations:
REG–209332–80, 1997–14 I.R.B. 9
REG–209040–88, 1997–7 I.R.B. 34
REG–209121–89, 1997–11 I.R.B. 15
REG–208288–90, 1997–11 I.R.B. 14
REG–209494–90, 1997–8 I.R.B. 24
REG–208172–91, 1997–10 I.R.B. 59
REG–209672–93, 1997–6 I.R.B. 15
REG–209709–94 1997–13 I.R.B. 12
REG–209729–94, 1997–11 I.R.B. 19
REG–209762–95, 1997–3 I.R.B. 12
REG–209785–95, 1997–18 I.R.B. 46
REG–209817–96, 1997–7 I.R.B. 41
REG–209824–96, 1997–11 I.R.B. 19
REG–254394–96, 1997–14 I.R.B. 14
REG–209823–96, 1997–18 I.R.B. 47
REG–209828–96, 1997–6 I.R.B. 15
REG–209830–96, 1997–15 I.R.B. 7
REG–209834–96, 1997–4 I.R.B. 9
REG–209837–96, 1997–23 I.R.B. 8
REG–209839–96, 1997–8 I.R.B. 26
REG–242996–96, 1997–9 I.R.B. 18
REG–246018–96, 1997–8 I.R.B. 30
REG–247678–96, 1997–6 I.R.B. 17
REG–247862–96, 1997–8 I.R.B. 32
REG–248770–96, 1997–8 I.R.B. 33
REG–249819–96, 1997–7 I.R.B. 50
REG–251703–96, 1997–25 I.R.B. 5
REG–252231–96, 1997–7 I.R.B. 52
REG–252233–96, 1997–9 I.R.B. 19
REG–252487–96, 1997–25 I.R.B. 9
REG–252665–96, 1997–12 I.R.B. 46
REG–253578–96, 1997–19 I.R.B. 93
REG–105299–97, 1997–23 I.R.B. 8
Railroad Retirement Quarterly Rate:
1997–21 I.R.B. 4
Revenue Procedures:
97–1, 1997–1 I.R.B. 11
97–2, 1997–1 I.R.B. 64
97–3, 1997–1 I.R.B. 84
97–4, 1997–1 I.R.B. 96
97–5, 1997–1 I.R.B. 132
97–6, 1997–1 I.R.B. 153
97–7, 1997–1 I.R.B. 185
97–8, 1997–1 I.R.B. 187
97–9, 1997–2 I.R.B. 56
97–10, 1997–2 I.R.B. 59
97–11, 1997–6 I.R.B. 13
97–12, 1997–4 I.R.B. 7
97–13, 1997–5 I.R.B. 18
97–14, 1997–5 I.R.B. 20
97–15, 1997–5 I.R.B. 21
97–16, 1997–5 I.R.B. 25
97–17, 1997–9 I.R.B. 15
97–18, 1997–10 I.R.B. 53
97–19, 1997–10 I.R.B. 55
97–20, 1997–11 I.R.B. 10
97–21, 1997–12 I.R.B. 44
97–22, 1997–13 I.R.B. 9
97–23, 1997–17 I.R.B. 7
97–24, 1997–16 I.R.B. 10
97–24A, 1997–20 I.R.B. 7
97–25, 1997–17 I.R.B. 8
97–26, 1997–17 I.R.B. 17
97–27, 1997–21 I.R.B. 10
97–28, 1997–23 I.R.B. 9
97–29, 1997–24 I.R.B. 9
97–30, 1997–25 I.R.B. 20
97–31, 1997–26 I.R.B. 6
Revenue Rulings:
97–1, 1997–2 I.R.B. 10
97–2, 1997–2 I.R.B. 7
97–3, 1997–2 I.R.B. 5
97–4, 1997–3 I.R.B. 6
97–5, 1997–4 I.R.B. 5
97–6, 1997–4 I.R.B. 4
97–7, 1997–5 I.R.B. 14
97–8, 1997–7 I.R.B. 4
97–9, 1997–9 I.R.B. 4
97–10, 1997–10 I.R.B. 31
97–11, 1997–10 I.R.B. 5
97–12, 1997–11 I.R.B. 5
97–13, 1997–16 I.R.B. 4
97–14, 1997–11 I.R.B. 5
97–15, 1997–12 I.R.B. 42
97–16, 1997–13 I.R.B. 4
97–17, 1997–14 I.R.B. 5
97–18, 1997–15 I.R.B. 4
97–19, 1997–18 I.R.B. 11
97–20, 1997–19 I.R.B. 4
97–21, 1997–18 I.R.B. 8
97–22, 1997–20 I.R.B. 5
97–23, 1997–22 I.R.B. 18
97–24, 1997–22 I.R.B. 17
97–25, 1997–23 I.R.B. 4
97–26, 1997–24 I.R.B. 4
Social Security Domestic Coverage Threshold:
1997–9, I.R.B. 17
Tax Conventions:
1997–17 I.R.B. 5
1
See footnote at end of list.
July 7, 1997
40
1997–27
I.R.B.
Numerical Finding List—Continued
Bulletins 1997–1 through 1997–26
Treasury Decisions:
8688, 1997–3 I.R.B. 7
8689, 1997–3 I.R.B. 9
8690, 1997–5 I.R.B. 5
8691, 1997–5 I.R.B. 16
8692, 1997–3 I.R.B. 4
8693, 1997–6 I.R.B. 9
8694, 1997–6 I.R.B. 11
8695, 1997–4 I.R.B. 5
8696, 1997–6 I.R.B. 4
8697, 1997–2 I.R.B. 11
8698, 1997–7 I.R.B. 29
8699, 1997–6 I.R.B. 4
8700, 1997–7 I.R.B. 5
8701, 1997–7 I.R.B. 23
8702, 1997–8 I.R.B. 4
8703, 1997–8 I.R.B. 18
8704, 1997–8 I.R.B. 12
8705, 1997–8 I.R.B. 16
8706, 1997–9 I.R.B. 11
8707, 1997–7 I.R.B. 17
8708, 1997–10 I.R.B. 14
8709, 1997–9 I.R.B. 5
8710, 1997–13 I.R.B. 4
8711, 1997–12 I.R.B. 35
8712, 1997–12 I.R.B. 4
8713, 1997–14 I.R.B. 4
8714, 1997–15 I.R.B. 5
8715, 1997–18 I.R.B. 5
8716, 1997–19 I.R.B. 5
8717, 1997–24 I.R.B. 5
8718, 1997–22 I.R.B. 4
8719, 1997–23 I.R.B. 4
8720, 1997–23 I.R.B. 6
8721, 1997–26 I.R.B. 4
1
A cumulative list of all Revenue Rulings,
Revenue Procedures, Treasury Decisions, etc.,
published in Internal Revenue Bulletins 1996–27
through 1996–53 will be found in Internal
Revenue Bulletin 1997–1, dated January 6, 1997.
1997–27
I.R.B.
41
July 7, 1997
Finding List of Current Action on
Previously Published Items1
Bulletins 1997–1 through 1997–26
*Denotes entry since last publication
Delegation Orders:
232 (Rev. 2)
Modified by
232 (Rev. 3), 1997–25 I.R.B. 21
Revenue Procedures:
66–3
Modified by
97–11, 1997–6 I.R.B. 13
87–21
Modified by
97–11, 1997–6 I.R.B. 13
92–20
Modified by
97–1, 1997–1 I.R.B. 11
92–20
Modified by
97–10, 1997–2 I.R.B. 59
92–90
Superseded by
97–1, 1997–1 I.R.B. 11
94–52
Revoked by
97–11, 1997–6 I.R.B. 13
96–1
Superseded by
97–1, 1997–1 I.R.B. 11
96–2
Superseded by
97–2, 1997–1 I.R.B. 64
96–3
Superseded by
97–3, 1997–1 I.R.B. 84
96–4
Superseded by
97–4, 1997–1 I.R.B. 96
96–5
Superseded by
97–5, 1997–1 I.R.B. 132
96–6
Superseded by
97–6, 1997–1 I.R.B. 153
96–7
Superseded by
97–7, 1997–1 I.R.B. 185
96–8
Superseded by
97–8, 1997–1 I.R.B. 187
Revenue Procedures—Continued
97–2
Amplified by
97–21, 1997–12 I.R.B. 44
97–3
Amplified by
97–23, 1997–17 I.R.B. 7
97–27
Superseded by
97–30, 1997–25 I.R.B. 20
Revenue Rulings:
70–480
Revoked by
97–6, 1997–4 I.R.B. 4
72–527
Obsoleted by
8704, 1997–8 I.R.B. 12
74–59
Revoked by
8708, 1997–10 I.R.B. 14
86–73
Obsoleted by
TD 8717, 1997–24 I.R.B. 5
87–50
Obsoleted by
TD 8717, 1997–24 I.R.B. 5
87–51
Obsoleted by
TD 8717, 1997–24 I.R.B. 5
88–42
Obsoleted by
TD 8717, 1997–24 I.R.B. 5
92–19
Supplemented in part by
97–2, 1997–2 I.R.B. 7
93–90
Obsoleted by
TD 8717, 1997–24 I.R.B. 5
96–12
Superseded by
97–3, 1997–1 I.R.B. 84
96–13
Modified by
97–1, 1997–1 I.R.B. 11
96–22
Superseded by
97–3, 1997–1 I.R.B. 84
96–34
Superseded by
97–3, 1997–1 I.R.B. 84
96–39
Superseded by
97–3, 1997–1 I.R.B. 84
96–24
96–24A
Superseded by
97–24, 1997–16 I.R.B. 10
96–43
Superseded by
97–3, 1997–1 I.R.B. 84
96–37
Obsoleted by
97–26, 1997–17 I.R.B. 17
96–56
Superseded by
97–3, 1997–1 I.R.B. 84
1
A cumulative finding list for previously published
items mentioned in Internal Revenue Bulletins
1996–27 through 1996–53 will be found in Internal Revenue Bulletin 1997–1, dated January 6,
1997.
July 7, 1997
42
1997–27
I.R.B.
Index
Internal Revenue Bulletins 1997–1
Through 1997–26
For index of items published during
the last six months of 1996, see
I.R.B. 1997–1, dated Januar y 6,
1997.
The abbreviation and number in parenthesis following the index entry
refer to the specific item; numbers in
roman and italic type following the
parenthesis refer to the Internal Revenue Bulletin in which the item may
be found and the page number on
which it appears.
Key to Abbreviations:
RR
Revenue Ruling
RP
Revenue Procedure
TD
Treasury Decision
CD
Court Decision
PL
Public Law
EO
Executive Order
DO
Delegation Order
TDO
Treasury Department Order
TC
Tax Convention
SPR
Statement of Procedural
Rules
PTE
Prohibited Transaction
Exemption
EMPLOYMENT TAX
Railroad retirement:
Rate determination, quarterly (April 1,
1997) 21, 4
Regulations:
26 CFR 31.3406(j)–1, added;
35a.3406–3, removed; taxpayer
identification number (TIN) matching program (TD 8721) 26, 4
Social Security domestic employee coverage threshold amount for 1997, 9,
17
ESTATE & GIFT TAXES
ADMINISTRATIVE
Proposed regulations:
26
CFR
20.2044–1,
added;
20.2056(b)–7, amended; estate and
gift tax marital deduction (REG–
209830–96) 15, 7
Regulations:
26 CFR 20.2044–1T, 20.2056(b)–7T,
–10T, added; estate tax marital deduction (TD 8714) 15, 5
EXCISE TAX
Airport and airway trust fund excise
taxes (PL 105–2) 18, 14
1997–27
I.R.B.
EXCISE TAX—Continued
INCOME TAX—Continued
Deposits (Notice 15) 8, 23
Epoxy (DGEBA) determination (Notice
22) 13, 9
Proposed regulations:
26 CFR 48.4081–1, amended;
48.4082–5, 48.6715–2, added;
gasoline and diesel fuel excise tax,
special rules for Alaska, definition
of aviation gasoline and kerosene
(REG–247678–96) 6, 17
26 CFR 54.9801–1 through –6,
54.9802–1, 54.9804–1, 54.9806–1,
added; group health plan, health
insurance
portability
(REG–
253578–96) 19, 93
Regulations:
26 CFR 48.4082–5T, 48.6715–2T,
added; diesel fuel excise tax, special rules for Alaska (TD 8693) 6,
9
26 CFR 54.9801–1T through –6T,
54.9802–1T, 54.9804–1T, 54.9806–
1T, added; group health plans, access, portability, and renewability
requirements (TD 8716) 19, 5
Credit for producing fuel from a
nonconventional source, section 29
inflation adjustment factor, and reference price (Notice 28) 18, 45
Credits against tax:
Low-income housing credit:
Building’s credit period beginning
after 1995 (RR 4) 3, 6
Satisfactory bond, bond factor
amounts for January, February,
and March 1997 (RR 16) 13, 4;
for April, May, and June 1997
(RR 25) 23, 4
Depreciation:
Retail motor fuels outlets (RP 10) 2,
59
Differential earnings rate (Notice 17) 10,
34
Domestic asset/liability and investment
yield percentages (RP 16) 5, 25
Electing Small Business Trust (ESBT)
election (Notice 12) 3, 11
Electricity from certain renewable resources:
Inflation adjustment factor and reference prices, calendar year 1997
(Notice 30) 20, 6
Employee plans:
Cash or deferred arrangements (Notice 2) 2, 22
Funding:
Full funding limitations, weighted
average interest rate, January
1997 (Notice 8) 4, 7; February
1997 (Notice 16) 9, 15; March
1997 (Notice 23) 14, 8; April
1997 (Notice 27) 17, 7; May
1997 (Notice 33) 22, 22; June
1997 (Notice 35) 25, 32
Qualification:
Qualified domestic relations orders
(Notice 11) 2, 49
Qualified joint and survivor annuities (Notice 10) 2, 49
SIMPLES (RP 9) 2, 55
SIMPLE–IRAs (Notice 6) 2, 26; (RP
29) 24, 9
User fees (RP 8) 1, 187
Exempt organizations:
Tax consequences of physician recruitment incentives provided by hospitals described in section 501(c)(3)
of the Code (RR 21) 18, 8
Unrelated business taxable income
(RP 12) 4, 7
User fees (RP 8) 1, 187
Foreign trust and foreign gift reporting
provisions (Notice 34) 25, 22
GENERATION-SKIPPING
TRANSFER TAX
Regulations:
26 CFR 26.2652–1, amended;
generation-skipping transfer tax
(TD 8720) 23, 4
GIFT TAXES
Proposed regulations:
26 CFR 25.2702–1(c)(3), revised;
charitable remainder trusts (REG–
209823–96) 18, 47
INCOME TAX
Abusive trusts (Notice 24) 16, 6
Accounting periods; small business corporations (Notice 20) 10, 52
Adoption assistance (Notice 9) 2, 35
Advance guidance under Section 877
(Notice 19) 10, 40
Alternative minimum tax, change in accounting method (Notice 13) 6, 13
Automobile inflation adjustment (RP 20)
11, 10
Books and records; electronic storage;
imaging (RP 22) 13, 9
Changes in accounting periods and
methods of accounting (RP 27) 21, 10
Charitable remainder unitrusts; no rule
on CRT abuses (RP 23) 17, 7
Consolidated returns, TD 7637; correction (Notice 29) 20, 6
43
July 7, 1997
INCOME TAX—Continued
INCOME TAX—Continued
INCOME TAX—Continued
Forms W–2 and W–3; general rules and
specifications for private printing (RP
24) 16, 10; correction (RP 24A) 20, 7
Form 8851; electronic and magnetic
media filing specifications (RP 25)
17, 8
Fringe benefits aircraft valuation formula (RR 14) 11, 5
General asset accounts; election (RP 30)
25, 20
Insurance companies:
Interest rate tables (RR 2) 2, 8
Premium stabilization reserves (RR 5)
4, 5
Interest:
Investment:
Federal short-term, mid-term, and
long-term rates for January 1997
(RR 1) 2, 10; February 1997 (RR
7) 5, 14; March 1997 (RR 10)
10, 31; April 1997 (RR 17) 14,
5; May 1997 (RR 19) 18, 11;
June 1997 (RR 24) 22, 17
Penalties:
Underpayment and overpayment
rates for April 1997 (RR 12) 11,
5; July 1997 (RR 23) 22, 18
Inventories:
LIFO, price indexes, department
stores, November 1996 (RR 6) 4,
4; December 1996 (RR 8) 7, 4;
January 1997 (RR 15) 12, 42; February 1997 (RR 18) 15, 4; March
1997 (RR 22) 20, 5; April 1997
(RR 26) 24, 4
Losses:
Net operating; specified liability
losses (Notice 36) 26, 6
Low-income housing tax credit (Notice
14) 8, 23
Major disaster areas (RR 11) 10, 5
Medical and dental expenses (RR 9) 9,
4
Medical savings accounts:
High-deductible plan (RR 20) 19, 4
Modified guaranteed contracts (Notice
32) 21, 8
Obsolete revenue rulings and revenue
procedures under TD 8697 (Notice 1)
2, 22
Photocopy fee increase (RP 11) 6, 13
Pilot pre-submission conference procedure (RP 21) 12, 44
Proposed regulations:
26 CFR 1.41–0, amended; 1.41–4,
revised; research activities increase,
credit, hearing (REG–209494–90)
8, 24
26 CFR 1.42–16, added; low-income
housing tax credits, Federal grants
(REG–254394–96) 14, 14
Proposed regulations—Continued
26 CFR 1.167(a)–3, amended;
1.167(a)–14, 1.197–0, 1.197–2,
added; amortization of intangible
property (REG–209709–94) 13, 12
26 CFR 1.274–5, added; substantiation of business expenses for travel,
entertainment, gifts, and listed
property (REG–209785–95) 18, 46
26 CFR 1.337(d)–4, added; certain
asset transfers to tax-exempt entity
(REG–209121–89) 11, 15
26 CFR 1.338(b)–2, –3, added; intangibles under sections 1060 and 338
(REG–252665–96) 12, 46
26 CFR 1.354–1, 1.355–1, 1.356–3,
amended; reorganizations, receipt
of securities (REG–249819–96) 7,
50
26 CFR 1.368–1, amended; shareholder interest continuity requirement for corporate reorganizations
(REG–252231–96) 7, 52
26 CFR 1.368–1, –2, amended; continuity of interest and business requirements (REG–252233–96) 9,
19
26
CFR
1.446–1,
amended;
301.9100–1(h), added; 301.9100–3,
revised; adoption or change of accounting method, extensions of
time to make elections (REG–
209837–96; REG–105299–97) 23,
8
26 CFR 1.453–11, added; installment
obligations received from liquidating corporations; partial withdrawal
(REG–209332–80) 14, 9
26 CFR 1.468A–2, –3, amended;
nuclear decommissioning reserve
funds; revised schedules of ruling
amounts (REG–209828–96) 6, 15
26 CFR 1.643(h)–1, 1.672(f)–1, –2,
–3, –4, –5, added; 1.671–2(e), revised; inbound grantor trusts with
foreign grantors (REG–252487–96)
25, 9
26 CFR 1.664–1(a)(7), (d)(1)(iii),
(f)(4), added; 1.664–2, revised;
1.664–3, amended; charitable remainder trusts (REG–209823–96)
18, 47
26 CFR 1.704–3, 1.1245–1, amended;
depreciation allocations, recapture
among partners in a partnership
(REG–209762–95) 3, 12
26 CFR 1.801–4, amended; life insurance reserves, recomputation hearing (REG–246018–96) 8, 30
26 CFR 1.832–4, amended; insurance
companies, determination of earned
premiums (REG–209839–96) 8, 26
Proposed regulations—Continued
26 CFR 1.905–2, amended; foreign
tax credit filing requirements
(REG–208288–90) 11, 14
26 CFR 1.1275–7, 1.1286–2, added;
inflation-indexed debt instruments
(REG–242996–96) 9, 18
26 CFR 1.1293–2, 1.1295–2, added;
qualified electing fund elections,
preferred shares, hearing (REG–
209040–88) 7, 34
26 CFR 1.1396–1, added; empowerment zone employment credit;
qualified zone employees (REG–
209834–96) 4, 9
26 CFR 1.1402(a)–18, withdrawn;
(REG–209729–94) 11, 19
26 CFR 1.6013–2, 301.6334–1,
301.6601–1, 301.6651–1, 301.7430–
0, –1, –2, –4, –5, amended;
301.6656–3, added; 301.7122–1(e),
301.7430–6, revised; Taxpayer Bill
of Rights 2 and Personal Responsibility and Work Opportunity Reconciliation Act of 1996, miscellaneous sections affected (REG–
248770–96) 8, 33
26 CFR 1.7701(1)–1, amended;
1.7701(1)–2; obligation-shifting
transactions, multiple-party, realized
income and deductions (REG–
209817–96) 7, 41
26 CFR 53.6011–1, amended; 53.6017–
1T; return and time for filing requirements (REG–247862–96) 8, 32
26 CFR 301.7701–5, amended;
301.7701–7, added; residence of
trusts and estates (REG–251703–
96) 25, 5
Qualified long-term care, definitions
(Notice 31) 21, 5
Qualified mortgage bonds; mortgage
credit certificates; national median
gross income (RP 26) 17, 17
Regulations:
26 CFR 1.25–3, added; 1.25–3T,
amended; mortgage credit certificate reissuance (TD 8692) 3, 4
26 CFR 1.42–16T, added; low-income
housing tax credits, Federal grants
(TD 8713) 14, 4
26 CFR 1.45B–1; withdrawal of
credit for employer social security
taxes paid on employee tips (REG–
209672–93) 6, 15
26 CFR 1.45B–1T, removed; credit for
employer social security taxes paid
on employee tips (TD 8699) 6, 4
July 7, 1997
44
1997–27
I.R.B.
INCOME TAX—Continued
INCOME TAX—Continued
INCOME TAX—Continued
Regulations—Continued
26 CFR 1.103–8(a)(5), revised;
1.103–8T, removed; 1.142–4,
added; 1.148–0(c), amended;
1.148–1T through –6T and intermediary sections, –9T, –10T, –11T,
redesignated; 1.148–1A through
–6A and intermediary sections,
–9A, –10A, –11A, 1.148–1,
amended; 1.148–2(b)(2)(ii), 1.148–
3, revised; 1.148–4, amended;
1.148–5(b)(2)(iii), (c)(2)(i), (c)(3)(ii), (d)(3)(ii), (e)(2)(ii)(B), (e)(2)(iii), 1.148–6(d)(3)(iii)(C), 1.148–
9(c)(2)(ii)(B) and (h)(4)(vi),
revised; 1.148–10, –11, amended;
1.148–11A(i), revised; 1.149(d)–1,
amended; 1.149(d)–1T, redesignated; 1.150–1, amended; 1.150–
1T, redesignated; tax-exempt bonds,
arbitrage restrictions (TD 8718) 22,
4
26 CFR 1.108(a)–1, –2, 108(b)–1,
1.1016–7, –8, 1.1017–2, removed;
1.108–4, –5, added; 1.1017–1, revised; 1.301.9100–13T, removed;
basis reduction due to discharge of
indebtedness (REG–208172–91) 10,
59
26 CFR 1.108(c)–1T, 1.163(d)–1T,
1.1044(a)–1T, 1.6655(e)–1T, removed; 1.108(c)–1, 1.163(d)–1,
1.1044(a)–1, 1.6655(e)–1, added;
Omnibus Budget Reconciliation
Act, elections (TD 8688) 3, 7
26 CFR 1.141–1, revised; 1.143–1,
redesignated; 1.144–3, removed;
1.141–0, –2 through –16, 1.142–0,
–3, 1.144–0, 1.145–0, –1, –2,
1.147–0, –1, –2, 1.150–4, added;
1.142–1, –2, 1.144–1, –2, revised;
1.148–6, 1.150–1, amended; private
activity bonds definition (TD 8712)
12, 4
26 CFR 1.170A–1, –13, amended;
charitable contributions, deductibility, substantiation, and disclosure
(TD 8690) 5, 5
26 CFR 1.267(f)–1, 1.1502–11, –13,
–19, –20, –32, –43, –76, –80, corrected; consolidated returns, consolidated and controlled groups
(Notice 25) 16, 8
26 CFR 1.280H–1T, amended;
1.274–5, redesignated; 1.274–5T,
amended; substantiation of business
expenses for travel, entertainment,
gifts, and listed property (TD 8715)
18, 5
Regulations—Continued
26 CFR 1.338(b)–2T(b)(2)(v), –2T(c)(4), added; 1.338–3, 1.338(b)–2T,
–3T, 1.1060–1T, amended; intangibles under sections 1060 and 338
(TD 8711) 12, 35
26 CFR Part 1, 1.338–0, –4,
amended; 1.338–4T, removed;
1.338(i)–1(a) and (b), revised; target affiliates that are controlled
foreign corporations (TD 8710) 13,
4
26 CFR 1.367(a)–3, added; foreign
corporations, transfer of domestic
stock or securities by U.S. person
(TD 8702) 8, 4
26 CFR 1.446–1(e)(3)(i), amended;
1.446–1T, added; 301.9100–1T(h),
amended; adoption or change of
accounting method, extensions of
time to make elections (TD 8719)
23, 4
26 CFR 1.475(b)–1T, –2T, 1.475(c)–
1T, –2T, 1.475(d)–1T, 1.475(e)–1T,
removed; 1.475–0, 1.475(a)–3,
1.475(b)–1, –2, –4, 1.475(c)–1, –2,
1.475(d)–1, 1.475(e)–1, added; securities dealers; mark-to-market accounting; equity interests in related
parties and dealer-customer relationship (TD 8700) 7, 5
26 CFR 1.581–1, revised; 1.581–2,
1.761–1(a), revised; 301.6109–1,
amended; 301.7701–1, –2, –3, revised; 301.7701–4, amended; domestic unincorporated business
organizations classified as partnerships or associations (TD 8697) 2,
11
26 CFR 1.704–1, –3, –4, 1.708–1,
1.732–2, amended; 1.743–1(d),
1.761–1(e), added; 301.6109–1,
amended; termination of a partnership (TD 8717) 24, 5
26 CFR 1.731–2, added; partnerships,
distribution of marketable securities
(TD 8707) 7, 17
26 CFR 1.902–0, –1, –2, added; foreign taxes deemed paid by domestic corporate shareholder; computation (TD 8708) 10, 14
26 CFR 1.952–1(e), (f), added; 1.952–
2(c)(1), 1.954–1(d)(4)(iii), 1.954–
2(b)(3), 1.954–2(g)(2)(ii)(B)(1)(i),
–(2), revised; 1.957–1, amended;
1.960–1(i), added; controlled foreign corporations, foreign bas company and foreign personal holding
company income, definitions (TD
8704) 8, 12
Regulations—Continued
26 CFR 1.1271–0, 1.1275–4,
amended; 1.1275–7T, 1.1286–2T,
added; inflation-indexed debt instrument (TD 8709) 9, 5
26 CFR 1.1291–0, –9, –10, added;
1.1291–0T, amended; 1.1291–9T,
–10T, removed; treatment of shareholders of certain passive foreign
investment companies (TD 8701) 7,
23
26 CFR 1.1368–1 amended; 1.1377–
0, –1, –2, –3, added; 18.1377–1,
removed; S corporations and their
shareholders, definitions under
subchapter S (TD 8696) 6, 4
26 CFR 1.1402(a)–2, amended; definition of limited partner for selfemployment tax purposes (REG–
209824–96) 11, 19
26 CFR 1.6081–2, –6, added; 1.6081–
2T, –3T, –4T, removed; 1.6081–4,
amended; 301.6651, amended;
301.6651–1T, removed; individual,
partnership, trust, and U.S. real
estate mortgage investment conduit
income tax returns, automatic extension of filing time (TD 8703) 8,
18
26 CFR 1.6695–1(b), amended; 1.6695–
1T, removed; 301.6061–1, revised;
301.6061–1T, removed; returns,
statements, or other documents, signing methods (TD 8689) 3, 9
26 CFR 31.3402(f)(5)–1, amended;
31.3402(f)(5)–2T, removed; employment taxes and collection of
income taxes at source, Form W–4,
electronic filing (TD 8706) 9, 11
26 CFR 53.6011–1, amended;
53.6071–1T; return and time for
filing requirements (TD 8705) 8, 16
26 CFR 301.6103(n)–1, amended; return information disclosure; property or services for tax administration purposes, Justice Department
(TD 8695) 4, 5
26 CFR 301.6231(a)(7)–1T, removed;
301.6231(a)(7)–1, added; limited liability companies; tax matters partner selection (TD 8698) 7, 29
26 CFR 301.6335–1, amended; sale
of seized property (TD 8691) 5, 16
REIT preferred stock (Notice 21) 11, 9
Rulings:
Areas in which advance rulings will
not be issued:
Associate Chief Counsel (Domestic), Associate Chief Counsel
(Employee Benefits and Exempt
Organizations (RP 3) 1, 85; Associate Chief Counsel (International) (RP 7) 1, 185
1997–27
I.R.B.
45
July 7, 1997
INCOME TAX—Continued
INCOME TAX—Continued
INCOME TAX—Continued
Rulings—Continued
Determination letters, employee plans
(RP 6) 1, 153
Environmental cleanup costs; letter
rulings (Notice 7) 1, 8
Letter rulings, determination letter, information letter, Associate Chief
Counsel (Domestic), Associate
Chief Counsel (Employee Benefits
and Exempt Organizations), Associate Chief Counsel (Enforcement
Litigation), Associate Chief Counsel (International) (RP 1) 1, 11
Rulings and determination letters, issuance procedures (RP 4) 1, 97
Technical advice; employee plans, exempt organizations (RP 5) 1, 132
Rulings—Continued
Technical advice to district directors
and chiefs, appeals offices, Associate Chief Counsel (Domestic), Associate Chief Counsel (Employee
Benefits and Exempt Organizations), Associate Chief Counsel
(Enforcement Litigation), Associate
Chief Counsel (International) (RP
2) 1, 64
SBA guaranteed payment rights; participating securities (RR 3) 2, 5
Scenarios of disciplinary actions, 13, 32
S corporation bank accounting method
change (RP 18) 10, 53
S corporation subsidiaries (Notice 4) 2,
24
Small Business Corporations:
Accounting periods (Notice 3) 1, 8
Electing small business corporations
and banks (Notice 5) 2, 25
Special use value; farms; interest rates
(RR 13) 16, 4
Tax conventions:
Shipping and aircraft agreements
Malta, 17, 5
Tax-exempt bonds:
Private activity bonds (RP 13) 5, 18;
(RP 14) 5, 20; (RP 15) 5, 21
Tax forms and instructions:
Magnetic media/electronic filing program for Form 1040NR filers (RP
28) 23, 9
Taxpayer assistance orders (DO[Rev. 3])
25, 21
Timely filing or payment; private delivery services (RP 19) 10, 55; (Notice
26) 17, 6
TIN matching; backup withholding (RP
31) 26, 6
Transfers to foreign entities (Notice 18)
10, 35
July 7, 1997
46
1997–27
I.R.B.
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(www.irs.ustreas.gov) or write to the IRS Bulletin Unit, T:FP:F:CD, Room 5560, 1111 Constitution Avenue, NW, Washington,
DC 20224. You can also leave a recorded message 24 hours a day, 7 days a week at 1–800–829–9043.
Superintendent of Documents
U.S. Government Printing Office
Washington, DC 20402
Official Business
Penalty for Private Use, $300
First Class Mail
Postage and Fees Paid
GPO
Permit No. G–26
INTERNAL REVENUE BULLETIN
The Introduction on page 3 describes the purpose and content of this publication. The weekly Internal Revenue Bulletin is
sold on a yearly subscription basis by the Superintendent of Documents. Current subscribers are notified by the Superintendent
of Documents when their subscriptions must be renewed.
CUMULATIVE BULLETINS
The contents of this weekly Bulletin are consolidated semiannually into a permanent, indexed, Cumulative Bulletin. These
are sold on a single copy basis and are not included as part of the subscription to the Internal Revenue Bulletin. Subscribers to
the weekly Bulletin are notified when copies of the Cumulative Bulletin are available. Certain issues of Cumulative Bulletins
are out of print and are not available. Persons desiring available Cumulative Bulletins, which are listed on the reverse, may
purchase them from the Superintendent of Documents.
HOW TO ORDER
Check the publications and/or subscription(s) desired on the reverse, complete the order blank, enclose the proper remittance,
detach entire page, and mail to the Superintendent of Documents, U.S. Government Printing Office, Washington, DC 20402.
Please allow two to six weeks, plus mailing time, for delivery.
WE WELCOME COMMENTS ABOUT THE
INTERNAL REVENUE BULLETIN
If you have comments concerning the format or production of the Internal Revenue Bulletin or suggestions for improving it,
we would be pleased to hear from you. You can e-mail us your suggestions or comments through the IRS Internet Home Page
(www.irs.ustreas.gov) or write to the IRS Bulletin Unit, T:FP:F:CD, Room 5560, 1111 Constitution Avenue, NW, Washington,
DC 20224. You can also leave a recorded message 24 hours a day, 7 days a week at 1–800–829–9043.
Internal Revenue Service
Washington, DC 20224
Official Business
Penalty for Private Use, $300
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.