Internal Revenue Bulletin 1996-44 (PDF rendition): IRS Announcements

Preserve advance releases and the authoritative Internal Revenue Bulletin rendition; directory timestamps are file-publication metadata, not legal effective dates. HTML bulletins begin June 2003; earlier available issues require full PDF parsing. Whole bulletin rendition: numbered items are identified below; other legal material and publisher context remain included. This is not a new standalone advance release.

SPECIAL ANNOUNCEMENT
Announcement 96–108, page 15.
Comments are invited on the development of interim
criteria for designating private delivery services for
purposes of the timely filing and payment rules of
section 7502 of the Code. A public hearing will be held
on December 6, 1996.
INCOME TAX
T.D. 8683, page 9.
REG–209803–95, page 14.
Final, temporary, and proposed regulations under sec-
tion 6011 of the Code relate to the requirements for
filing information returns on magnetic media or in other
machine-readable form. A public hearing on the pro-
posed regulations will be held on February 5, 1997.
T.D. 8684, page 4.
Final regulations under section 1254 of the Code relate
to the tax treatment of gain from the disposition of
interest in certain natural resource recapture property by
S corporations and their shareholders.
EMPLOYEE PLANS
Notice 96–54, page 13.
Guidelines are set forth for determining for October
1996 the weighted average interest rate and the result-
ing permissible range of interest rates used to calculate
current liability for purposes of the full funding limitation
of section 412(c)(7) of the Code as amended by the
Omnibus Budget Reconciliation Act of 1987 and by the
Uruguay Round Agreements Act (GATT).
Announcement 96–113, page 18.
Plan sponsors may order Form 8837,
Notice of Adoption
of Revenue Procedure Model Amendments,by tele-
phone, by modem or on the Internet.
EXEMPT ORGANIZATIONS
Announcement 96–111, page 16.
A list is given of organizations now classified as private
foundations.
Finding Lists begin on page 21.
Announcements of Disbarments and Suspensions begin on page 19.
Bulletin No. 1996–44
October 28, 1996
HIGHLIGHTS
OF THIS ISSUE
These synopses are intended only as aids to the reader in
identifying the subject matter covered. They may not be relied
upon as authoritative interpretations.

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 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.
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 as-
certain and apply the true meaning of the statute.
The Service also has the responsibility of applying
and administering the law in a reasonable,
practical manner. Issues should only be raised by
examining officers 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.
Administration should be both reasonable and
vigorous. It should be conducted with as little
delay as possible and with great courtesy 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.
2

Introduction
The Internal Revenue Bulletin is the authoritative instru-
ment of the Commissioner of Internal Revenue for
announcing official rulings and procedures of the Inter-
nal Revenue Service and for publishing Treasury Deci-
sions, Executive Orders, Tax Conventions, legislation,
court decisions, and other items of general interest. It is
published weekly and may be obtained from the Superin-
tendent of Documents on a subscription basis. Bulletin
contents of a permanent nature are consolidated semi-
annually into Cumulative Bulletins, which are sold on a
single-copy basis.
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. Proce-
dures 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.
Revenue rulings represent the conclusions of the Ser-
vice 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 unwar-
ranted invasions of privacy and to comply with statutory
requirements.
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 proce-
dures, the effect of subsequent legislation, regulations,
court decisions, rulings, and procedures must be consid-
ered, 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.
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 Administra-
tive Rulings are issued by the Department of the
Treasury’s Office of the Assistant Secretary (Enforce-
ment).
Part IV.—Items of General Interest.
With the exception of the Notice of Proposed Rulemak-
ing and the disbarment and suspension list included in
this part, none of these announcements are consoli-
dated in the Cumulative Bulletins.
The first Bulletin for each month includes an index for
the matters published during the preceding month.
These monthly indexes are cumulated on a quarterly and
semiannual basis, and are published in the first Bulletin
of the succeeding quarterly and semi-annual period,
respectively.
The contents of this publication are not copyrighted and may be reprinted freely. A citation of the Internal Revenue Bulletin as the source would be appropriate.
For sale by the Superintendent of Documents U.S. Government Printing Office, Washington, D.C. 20402.
3

Part I. Rulings and Decisions Under the Internal Revenue Code of 1986
Section 1254.—Gain From
Disposition of Interest in Oil, Gas,
Geothermal, or Other Mineral
Properties
26 CFR 1.1254–4: Special rules for S corpora-
tions and their shareholders.
T.D. 8684
DEPARTMENT OF THE TREASURY
Internal Revenue Service
26 CFR Parts 1 and 602
Treatment of Gain From the
Disposition of Interest in Certain
Natural Resource Recapture
Property by S Corporations and
Their Shareholders
AGENCY: Internal Revenue Service
(IRS), Treasury.
ACTION: Final regulations.
SUMMARY: This document contains fi-
nal regulations relating to the tax treat-
ment by S corporations and their share-
holders of gain from the disposition by
an S corporation (and a corporation that
was formerly an S corporation) of cer-
tain natural resource recapture property
(section 1254 property after enactment
of the Tax Reform Act of 1986 and oil,
gas, or geothermal property before en-
actment of the Tax Reform Act of
1986), and also rules relating to the
disposition of stock in an S corporation
that holds certain natural resource recap-
ture property. Changes to the applicable
tax law were made by the Tax Reform
Act of 1986, and the Subchapter S
Revision Act of 1982. The regulations
provide the public with guidance in
complying with the changed tax laws.
EFFECTIVE DATE: October 10, 1996.
FOR FURTHER INFORMATION CON-
TACT: James A. Quinn, 202–622–3060
(not a toll-free number).
SUPPLEMENTARY INFORMATION:
Paperwork Reduction Act
The collection of information con-
tained in these final regulations has been
reviewed and approved by the Office of
Management and Budget in accordance
with the Paperwork Reduction Act (44
U.S.C. 3507) under control number
1545–1493. This information is required
by the IRS to establish that a portion of
the gain recognized upon a sale or
exchange of S corporation stock is not
attributable to a shareholder’s section
1254 costs so as to qualify for the
exception contained in § 1.1254–
4(c)(2)(i)(A).
An agency may not conduct or spon-
sor, and a person is not required to
respond to, a collection of information
unless the collection of information dis-
plays a valid control number.
The estimated annual burden per re-
spondent varies from .5 hours to 1.5
hours, depending on individual circum-
stances, with an estimated average of 1
hour.
Comments concerning the accuracy of
this burden estimate and suggestions for
reducing this burden should be sent to
theInternal Revenue Service, Attn:
IRS Reports Clearance Officer, T:FP,
Washington, DC 20224, and to theOf-
fice of Management and Budget, Attn:
Desk Officer for the Department of the
Treasury, Office of Information and
Regulatory Affairs, Washington, DC
20503.
Books or records relating to this col-
lection of information must be retained
as long as their contents may become
material in the administration of any
internal revenue law. Generally, tax re-
turns and tax return information are
confidential, as required by 26 U.S.C.
6103.
Background
On December 21, 1995, the IRS pub-
lished in theFederal Registera notice
of proposed rulemaking (60 FR 66238)
providing rules for applying the provi-
sions of section 1254 to the disposition
of natural resource recapture property by
an S corporation (and a corporation that
was formerly an S corporation) and the
disposition of S corporation stock. No
written comments responding to this
notice were received. No public hearing
was held because no hearing was re-
quested. The proposed regulations are
adopted without any substantive change
by this Treasury decision. However, in
the course of preparing the final regula-
tions for publication, the IRS and Trea-
sury Department have determined that
§§ 1.1254–2 and 1.1254–3 are in need
of minor technical clarifications. Ac-
cordingly, §§ 1.1254–2 and 1.1254–3
are clarified as discussed below.
Clarification of §§ 1.1254–2 and
1.1254–3
Section 1.1254–2(d)(1) is amended to
state that § 1.1254– 2(d)(1) is applied
without regard to § 1.1254–1(b)(2)(vii).
This amendment clarifies that section
1254 costs must be recaptured in a
like-kind exchange or involuntary con-
version that involves the acquisition of
property that is not natural resource
recapture property. The amendment
makes clear that the treatment of like-
kind exchanges and involuntary conver-
sions involving natural resource recap-
ture property is similar to the treatment
of these transactions involving section
1245 property. See §§ 1.1245–3(a)(3),
1.1245–4(d)(1), 1.1245–4(d)(2),Ex-
ample 2, and 1.1245–5(a)(2),Example.
Section 1.1254–3(b)(1) provides that
if natural resource recapture property is
transferred in certain transactions the
amount of section 1254 costs with re-
spect to the property in the hands of the
transferee equals the amount of section
1254 costs with respect to the property
in the hands of the transferor minus the
amount of any gain taken into account
as ordinary income under section
1254(a)(1) by the transferor upon the
disposition. The intent of this rule is that
in these transactions the section 1254
costs with respect to the property are to
be transferred to the transferee but re-
duced by any gain taken into account as
ordinary income. However, in the case
of an S corporation or partnership
transferor, the section 1254 costs have
generally been allocated among the
shareholders or partners. Consequently,
§ 1.1254–3(b)(1) is clarified to provide
that in the case of an S corporation
transferor the section 1254 costs include
the section 1254 costs of the sharehold-
ers minus any gain taken into account
by the shareholders as ordinary income.
A similar clarification is added for part-
nership transferors.
Similarly, § 1.1254–3(d) is clarified
for like-kind exchanges and involuntary
conversions to provide that in the case
of an S corporation the section 1254
costs include the section 1254 costs of
the shareholders minus any gain taken
into account by the shareholders as
ordinary income. A similar clarification
is added for a partnership.
Effective Date
Section 1.1254–4 applies to disposi-
tions of natural resource recapture prop-
4

erty by an S corporation (and a corpora-
tion that was formerly an S corporation)
and dispositions of S corporation stock
occurring on or after October 10, 1996.
The clarifications to §§ 1.1254–2 and
1.1254–3 are effective for dispositions
of property occurring on or after Octo-
ber 10, 1996.
Special Analyses
It has been determined that this Trea-
sury decision is not a significant regula-
tory action as defined in EO 12866.
Therefore, a regulatory assessment is not
required. It also has been determined
that section 553(b) of the Administrative
Procedure Act (5 U.S.C. chapter 5) does
not apply to these regulations, and be-
cause the notice of proposed rulemaking
preceding the regulations was issued
prior to March 29, 1996, the Regulatory
Flexibility Act (5 U.S.C. chapter 6) does
not apply. Pursuant to section 7805(f) of
the Code, the notice of proposed
rulemaking preceding these regulations
was submitted to the Small Business
Administration for comment on its im-
pact on small business.
Drafting Information
The principal author of these regula-
tions is James A. Quinn of the Office of
Assistant Chief Counsel (Passthroughs
and Special Industries), IRS. However,
other personnel from the IRS and Trea-
sury Department participated in their
development.
* * * * *
Amendments to the Regulations
Accordingly, 26 CFR parts 1 and 602
are amended as follows:
PART 1—INCOME TAXES
Paragraph 1. The authority citation for
part 1 continues to read in part as
follows:
Authority: 26 U.S.C. 7805 * * *
Section 1.1254–4 also issued under 26
U.S.C. 1254(b). * * *
Par. 2. Section 1.1254–0 is amended
by revising the entry for § 1.1254–4 to
read as follows:
§ 1.1254–0 Table of contents for sec-
tion 1254 recapture rules.
* * * * *
§ 1.1254–4 Special rules for S corpora-
tions and their shareholders.
(a) In general.
(b) Determination of gain treated as
ordinary income under section 1254
upon a disposition of natural resource
recapture property by an S corporation.
(1) General rule.
(2) Examples.
(c) Character of gain recognized by a
shareholder upon a sale or exchange of
S corporation stock.
(1) General rule.
(2) Exceptions.
(3) Examples.
(d) Section 1254 costs of a share-
holder.
(e) Section 1254 costs of an acquir-
ing shareholder after certain acquisi-
tions.
(1) Basis determined under section
1012.
(2) Basis determined under section
1014(a).
(3) Basis determined under section
1014(b)(9).
(4) Gifts and section 1041 transfers.
(f) Special rules for a corporation that
was formerly an S corporation or for-
merly a C corporation.
(1) Section 1254 costs of an S corpo-
ration that was formerly a C corpora-
tion.
(2) Examples.
(3) Section 1254 costs of a C corpo-
ration that was formerly an S corpora-
tion.
(g) Determination of a shareholder’s
section 1254 costs upon certain stock
transactions
(1) Issuance of stock.
(2) Natural resource recapture prop-
erty acquired in exchange for stock.
(3) Treatment of nonvested stock.
(4) Exception.
(5) Aggregate of S corporation share-
holders’ section 1254 costs with respect
to natural resource recapture property
held by the S corporation
(6) Examples.
* * * * *
Par. 3. Section 1.1254–2 is amended
by revising paragraph (d)(1)(ii) to read
as follows:
§ 1.1254–2 Exceptions and limitations.
* * * * *
(d) * * * (1) * * *
(ii) The fair market value of property
acquired that is not natural resource
recapture property (determined without
regard to § 1.1254–1(b)(2)(vii)) and is
not taken into account under paragraph
(d)(1)(i) of this section (that is, qualify-
ing property under section 1031 or 1033
that is not natural resource recapture
property).
* * * * *
Par. 4. Section 1.1254–3 is amended
by revising paragraphs (b)(1)(i),
(b)(1)(ii), (d)(1)(i) and (d)(1)(ii) to read
as follows:
§ 1.1254–3 Section 1254 costs immedi-
ately after certain acquisitions.
* * * * *
(b) * * * (1) * * *
(i) The amount of section 1254 costs
with respect to the natural resource
recapture property in the hands of the
transferor immediately before the dispo-
sition (and in the case of an S corpora-
tion or partnership transferor, the section
1254 costs of the shareholders or part-
ners with respect to the natural resource
recapture property); minus
(ii) The amount of any gain taken
into account as ordinary income under
section 1254(a)(1) by the transferor
upon the disposition (and in the case of
an S corporation or partnership
transferor, any such gain taken into
account as ordinary income by the
shareholders or partners).
* * * * *
(d) * * * (1) * * *
(i) The amount of section 1254 costs
with respect to the natural resource
recapture property disposed of (includ-
ing the section 1254 costs of the share-
holders of an S corporation or of the
partners of a partnership with respect to
the natural resource recapture property);
minus
(ii) The amount of any gain taken
into account as ordinary income under
section 1254(a)(1) by the transferor
upon the disposition (and in the case of
an S corporation or partnership
transferor, any such gain taken into
account as ordinary income by the
shareholders or partners).
* * * * *
Par. 5. Section 1.1254–4 is amended
by adding text to read as follows:
§ 1.1254–4 Special rules for S corpora-
tions and their shareholders.
(a)In general.This section provides
rules for applying the provisions of
section 1254 to S corporations and their
shareholders upon the disposition by an
S corporation (and a corporation that
was formerly an S corporation) of natu-
ral resource recapture property and upon
5

the disposition by a shareholder of stock
of an S corporation that holds natural
resource recapture property.
(b)Determination of gain treated as
ordinary income under section 1254
upon a disposition of natural resource
recapture property by an S corpora-
tion—(1)General rule. Upon a disposi-
tion of natural resource recapture prop-
erty by an S corporation, the amount of
gain treated as ordinary income under
section 1254 is determined at the share-
holder level. Each shareholder must rec-
ognize as ordinary income under section
1254 the lesser of—
(i) The shareholder’s section 1254
costs with respect to the property dis-
posed of; or
(ii) The shareholder’s share of the
amount, if any, by which the amount
realized on the sale, exchange, or invol-
untary conversion, or the fair market
value of the property upon any other
disposition (including a distribution), ex-
ceeds the adjusted basis of the property.
(2)Examples.The following ex-
amples illustrate the provisions of para-
graph (b)(1) of this section:
Example 1. Disposition of natural resource
recapture property other than oil and gas property.
A and B are equal shareholders in X, an S
corporation. On January 1, 1997, X acquires for
$90,000 an undeveloped mineral property, its sole
property. During 1997, X expends and deducts
$100,000 in developing the property. On January
15, 1998, X sells the property for $250,000 when
X’s basis in the property is $90,000. Thus, X
recognizes gain of $160,000 on the sale. A and B’s
share of the $160,000 gain recognized is $80,000
each. Each shareholder has $50,000 of section
1254 costs with respect to the property. Under
these circumstances, A and B each are required to
recognize $50,000 of the $80,000 of gain on the
sale of the property as ordinary income under
section 1254.
Example 2. Disposition of oil and gas property
the adjusted basis of which is allocated to the
shareholders under section 613A(c)(11).C and D
are equal shareholders in Y, an S corporation. On
January 1, 1997, Y acquires for $150,000 an
undeveloped oil and gas property, its sole property.
During 1997, Y expends in developing the prop-
erty $40,000 in intangible drilling costs which it
elects to expense under section 263(c). On January
15, 1998, Y sells the property for $200,000. C and
D’s share of the $200,000 amount realized on the
sale is $100,000 each. C and D each have a basis
of $75,000 in the property and $20,000 of section
1254 costs with respect to the property. Under
these circumstances, C and D each are required to
recognize $20,000 of the $25,000 gain on the sale
of the property as ordinary income under section
1254.
(c)Character of gain recognized by a
shareholder upon a sale or exchange of
S corporation stock—(1)General rule.
Except as provided in paragraph (c)(2)
of this section, if an S corporation
shareholder recognizes gain upon a sale
or exchange of stock in the S corpora-
tion (determined without regard to sec-
tion 1254), the gain is treated as ordi-
nary income under section 1254 to the
extent of the shareholder’s section 1254
costs (with respect to the shares sold or
exchanged).
(2)Exceptions—(i)Gain not attribut-
able to section 1254 costs—(A)General
rule.Paragraph (c)(1) of this section
does not apply to any portion of the
gain recognized on the sale or exchange
of the stock that the taxpayer establishes
is not attributable to section 1254 costs.
The portion of the gain recognized that
is not attributable to section 1254 costs
is that portion of the gain recognized
that exceeds the amount of ordinary
income that the shareholder would have
recognized under section 1254 (with
respect to the shares sold or exchanged)
if, immediately prior to the sale or
exchange of the stock, the corporation
had sold at fair market value all of the
corporation’s property the disposition of
which would result in the recognition by
the shareholder of ordinary income un-
der section 1254.
(B)Substantiation.To establish that a
portion of the gain recognized is not
attributable to a shareholder’s section
1254 costs so as to qualify for the
exception contained in paragraph
(c)(2)(i)(A) of this section, the share-
holder must attach to the shareholder’s
tax return a statement detailing the
shareholder’s share of the fair market
value and basis, and the shareholder’s
section 1254 costs, for each of the S
corporation’s natural resource recapture
properties held immediately before the
sale or exchange of stock.
(ii)Transactions entered into as part
of a plan to avoid recognition of ordi-
nary income under section 1254.In the
case of a contribution of property prior
to a sale or exchange of stock pursuant
to a plan a principal purpose of which is
to avoid recognition of ordinary income
under section 1254, paragraph (c)(1) of
this section does not apply. Instead, the
amount recognized as ordinary income
under section 1254 is the amount of
ordinary income the selling or exchang-
ing shareholder would have recognized
under section 1254 (with respect to the
shares sold or exchanged) had the S
corporation sold its natural resource re-
capture property the disposition of
which would have resulted in the recog-
nition of ordinary income under section
1254. The amount recognized as ordi-
nary income under the preceding sen-
tence reduces the amount realized on the
sale or exchange of the stock. This
reduced amount realized is used in de-
termining any gain or loss on the sale or
exchange.
(3)Examples.The following ex-
amples illustrate the provisions of this
paragraph (c):
Example 1. Application of general rule upon a
sale of S corporation stock.C and D are equal
shareholders in Y, an S corporation. As of January
1, 1997, Y holds two mining properties: Blackacre,
with an adjusted basis of $5,000 and a fair market
value of $35,000, and Whiteacre, with an adjusted
basis of $20,000 and a fair market value of
$15,000. Y also holds securities with a basis of
$5,000 and a fair market value of $10,000. On
January 1, 1997, D sells 50 percent of D’s Y stock
to E for $15,000. As of the date of the sale, D’s
adjusted basis in the Y stock sold is $7,500, and D
has $18,000 of section 1254 costs with respect to
Blackacre and $12,000 of section 1254 costs with
respect to Whiteacre. Under this paragraph (c), the
gain recognized by D upon the sale of Y stock is
treated as ordinary income to the extent of D’s
section 1254 costs with respect to the stock sold,
unless D establishes that a portion of such excess
is not attributable to D’s section 1254 costs.
However, because D would recognize $7,500 in
ordinary income under section 1254 with respect
to the stock sold if Y sold Blackacre (the only
asset the disposition of which would result in
ordinary income to D under section 1254), the
$7,500 of gain recognized by D upon the sale of
D’s Y stock is attributable to D’s section 1254
costs. Therefore, upon the sale of stock to E, D
recognizes $7,500 of ordinary income under this
paragraph (c).
Example 2. Sale of S corporation stock where
gain is not entirely attributable to section 1254
costs.Assume the same facts as inExample 1,
except that Blackacre has a fair market value of
$25,000, and the securities have a fair market
value of $20,000. Immediately prior to the sale of
stock to E, if Y had sold Blackacre (its only asset
the disposition of which would result in the
recognition of ordinary income to D under section
1254), D would recognize $5,000 in ordinary
income with respect to the stock sold under
section 1254. D attaches a statement to D’s tax
return for 1997 detailing D’s share of the fair
market values and bases, and D’s section 1254
costs with respect to Blackacre and Whiteacre.
Therefore, upon the sale of stock to E, of the
$7,500 gain recognized by D, $5,000 is ordinary
income under this paragraph (c).
Example 3. Contribution of property prior to
sale of S corporation stock as part of a plan to
avoid recognition of ordinary income under sec-
tion 1254.H owns all of the stock of Z, an S
corporation. As of January 1, 1997, H has $3,000
of section 1254 costs with respect to property P,
which is natural resource recapture property and
Z’s only asset. Property P has an adjusted basis of
$5,000 and a fair market value of $8,000. H has a
basis of $5,000 in Z stock, which has a fair
market value of $8,000. On January 1, 1997, H
contributes securities to Z which have a basis of
$7,000 and a fair market value of $4,000. On
April 15, 1997, H sells all of the Z stock to J for
$12,000. On that date, H’s adjusted basis in the Z
stock is also $12,000. Based on all the facts and
circumstances, the sale of stock is part of a plan
(along with the contribution by H of the securities
to Z) that has a principal purpose to avoid
recognition of ordinary income under section
1254. Consequently, under paragraph (c)(2)(ii) of
this section, H must recognize $3,000 as ordinary
6

income under section 1254, the amount of ordi-
nary income that H would recognize as ordinary
income under section 1254 if property P were sold
at fair market value. In addition, H reduces the
amount realized on the sale of the stock ($12,000)
by $3,000. As a result, H also recognizes a $3,000
capital loss on the sale of the stock ($9,000
amount realized less $12,000 adjusted basis).
(d)Section 1254 costs of a share-
holder.An S corporation shareholder’s
section 1254 costs with respect to any
natural resource recapture property held
by the corporation include all of the
shareholder’s section 1254 costs with
respect to the property in the hands of
the S corporation. See § 1.1254–1(b)(1)
for the definition of section 1254 costs.
(e)Section 1254 costs of an acquir-
ing shareholder after certain acquisi-
tions—(1)Basis determined under sec-
tion 1012.If stock in an S corporation
that holds natural resource recapture
property is acquired and the acquiring
shareholder’s basis for the stock is de-
termined solely by reference to its cost
(within the meaning of section 1012),
the amount of section 1254 costs with
respect to the property held by the
corporation in the acquiring sharehold-
er’s hands is zero on the acquisition
date.
(2)Basis determined under section
1014(a).If stock in an S corporation
that holds natural resource recapture
property is acquired from a decedent
and the acquiring shareholder’s basis is
determined, by reason of the application
of section 1014(a), solely by reference
to the fair market value of the stock on
the date of the decedent’s death or on
the applicable date provided in section
2032 (relating to alternate valuation
date), the amount of section 1254 costs
with respect to the property held by the
corporation in the acquiring sharehold-
er’s hands is zero on the acquisition
date.
(3)Basis determined under section
1014(b)(9).If stock in an S corporation
that holds natural resource recapture
property is acquired before the death of
the decedent, the amount of section
1254 costs with respect to the property
held by the corporation in the acquiring
shareholder’s hands includes the
amount, if any, of the section 1254 costs
deducted by the acquiring shareholder
before the decedent’s death, to the ex-
tent that the basis of the stock (deter-
mined under section 1014(a)) is required
to be reduced under section 1014(b)(9)
(relating to adjustments to basis when
the property is acquired before the death
of the decedent).
(4)Gifts and section 1041 transfers.
If stock is acquired in a transfer that is a
gift, in a transfer that is a part sale or
exchange and part gift, or in a transfer
that is described in section 1041(a), the
amount of section 1254 costs with re-
spect to the property held by the corpo-
ration in the acquiring shareholder’s
hands immediately after the transfer is
an amount equal to—
(i) The amount of section 1254 costs
with respect to the property held by the
corporation in the hands of the
transferor immediately before the trans-
fer; minus
(ii) The amount of any gain recog-
nized as ordinary income under section
1254 by the transferor upon the transfer.
(f)Special rules for a corporation
that was formerly an S corporation or
formerly a C corporation—(1)Section
1254 costs of an S corporation that was
formerly a C corporation.In the case of
a C corporation that holds natural re-
source recapture property and that elects
to be an S corporation, each sharehold-
er’s section 1254 costs as of the begin-
ning of the corporation’s first taxable
year as an S corporation include a pro
rata share of the section 1254 costs of
the corporation as of the close of the
last taxable year that the corporation
was a C corporation.
(2)Examples.The following ex-
amples illustrate the application of the
provisions of paragraph (f)(1) of this
section:
Example 1. Sale of natural resource recapture
property held by an S corporation that was
formerly a C corporation—(i) Y is a C corporation
that elects to be an S corporation effective January
1, 1997. On that date, Y owns Oil Well, which is
natural resource recapture property and a capital
asset. Y has section 1254 costs of $20,000 as of
the close of the last taxable year that it was a C
corporation. On January 1, 1997, Oil Well has a
value of $200,000 and a basis of $100,000. Thus,
under section 1374, Y’s net unrealized built-in
gain is $100,000. Also on that date, Y’s basis in
Oil Well is allocated to A, Y’s sole shareholder,
under section 613A(c)(11) and the section 1254
costs are allocated to A under paragraph (f)(1) of
this section. In addition, A has a basis in A’s Y
stock of $100,000.
(ii) On November 1, 1997, Y sells Oil Well for
$250,000. During 1997, Y has taxable income
greater than $100,000, and no other transactions or
items treated as recognized built-in gain or loss.
Under section 1374, Y has net recognized built-in
gain of $100,000. Assuming a tax rate of 35
percent on capital gain, Y has a tax of $35,000
under section 1374. The tax of $35,000 is treated
as a capital loss under section 1366(f)(2). A has a
realized gain on the sale of $150,000 ($250,000
minus $100,000) of which $20,000 is recognized
as ordinary income under section 1254, and
$130,000 is recognized as capital gain. Conse-
quently, A recognizes ordinary income of $20,000
and net capital gain of $95,000 ($130,000 minus
$35,000) on the sale.
Example 2. Sale of stock followed by sale of
natural resource recapture property held by an S
corporation that was formerly a C corporation—
(i) Assume the same facts as inExample 1(i). On
November 1, 1997, A sells all of A’s Y stock to P
for $250,000. A has a realized gain on the sale of
$150,000 ($250,000 minus $100,000) of which
$20,000 is recognized as ordinary income under
section 1254, and $130,000 is recognized as
capital gain.
(ii) On November 2, 1997, Y sells Oil Well for
$250,000. During 1997, Y has taxable income
greater than $100,000, and no other transactions or
items treated as recognized built-in gain or loss.
Under section 1374, Y has net recognized built-in
gain of $100,000. Assuming a tax rate of 35
percent on capital gain, Y has a tax of $35,000
under section 1374. The tax of $35,000 is treated
as a capital loss under section 1366(f)(2). P has a
realized gain on the sale of $150,000 ($250,000
minus $100,000), which is recognized as capital
gain. Consequently, P recognizes net capital gain
of $115,000 ($150,000 minus $35,000) on the
sale.
(3)Section 1254 costs of a C corpo-
ration that was formerly an S corpora-
tion.In the case of an S corporation that
becomes a C corporation, the C corpora-
tion’s section 1254 costs with respect to
any natural resource recapture property
held by the corporation as of the begin-
ning of the corporation’s first taxable
year as a C corporation include the sum
of its shareholders’ section 1254 costs
with respect to the property as of the
close of the last taxable year that the
corporation was an S corporation. In the
case of an S termination year as defined
in section 1362(e)(4), the shareholders’
section 1254 costs are determined as of
the close of the S short year as defined
in section 1362(e)(1)(A). See paragraph
(g)(5) of this section for rules on deter-
mining the aggregate amount of the
shareholders’ section 1254 costs.
(g)Determination of a shareholder’s
section 1254 costs upon certain stock
transactions—(1)Issuance of stock.
Upon an issuance of stock (whether
such stock is newly-issued or had been
held as treasury stock) by an S corpora-
tion in a reorganization described in
section 368 or otherwise—
(i) Each recipient of shares must be
allocated a pro rata share (determined
solely with respect to the shares issued
in the transaction) of the aggregate of
the S corporation shareholders’ section
1254 costs with respect to natural re-
source recapture property held by the S
corporation immediately before the issu-
ance (as determined pursuant to para-
graph (g)(5) of this section); and
(ii) Each pre-existing shareholder
must reduce his or her section 1254
costs with respect to natural resource
recapture property held by the S corpo-
ration immediately before the issuance
7

by an amount equal to the pre-existing
shareholder’s section 1254 costs imme-
diately before the issuance multiplied by
the percentage of stock of the corpora-
tion issued in the transaction.
(2)Natural resource recapture prop-
erty acquired in exchange for stock.If
natural resource recapture property is
transferred to an S corporation in ex-
change for stock of the S corporation
(for example, in a section 351 transac-
tion, or in a reorganization described in
section 368), the S corporation must
allocate to its shareholders a pro rata
share of the S corporation’s section
1254 costs with respect to the property
immediately after the transaction (as
determined under § 1.1254– 3(b)(1)).
(3)Treatment of nonvested stock.
Stock issued in connection with the
performance of services that is substan-
tially nonvested (within the meaning of
§ 1.83–3(b)) is treated as issued for
purposes of this section at the first time
it is treated as outstanding stock of the
S corporation for purposes of section
1361.
(4)Exception.Paragraph (g)(1) of
this section does not apply to stock
issued in exchange for stock of the same
S corporation (as for example, in a
recapitalization described in section
368(a)(1)(E)).
(5)Aggregate of S corporation share-
holders’ section 1254 costs with respect
to natural resource recapture property
held by the S corporation—(i)In gen-
eral.The aggregate of S corporation
shareholders’ section 1254 costs is equal
to the sum of each shareholder’s section
1254 costs. The S corporation must
determine each shareholder’s section
1254 costs under either paragraph
(g)(5)(ii) (written data) or paragraph
(g)(5)(iii) (assumptions) of this section.
The S corporation may determine the
section 1254 costs of some shareholders
under paragraph (g)(5)(ii) of this section
and of others under paragraph (g)(5)(iii)
of this section.
(ii)Written data.An S corporation
may determine a shareholder’s section
1254 costs by using written data pro-
vided by a shareholder showing the
shareholder’s section 1254 costs with
respect to natural resource recapture
property held by the S corporation un-
less the S corporation knows or has
reason to know that the written data is
inaccurate. If an S corporation does not
receive written data upon which it may
rely, the S corporation must use the
assumptions provided in paragraph
(g)(5)(iii) of this section in determining
a shareholder’s section 1254 costs.
(iii)Assumptions.An S corporation
that does not use written data pursuant
to paragraph (g)(5)(ii) of this section to
determine a shareholder’s section 1254
costs must use the following assump-
tions to determine the shareholder’s sec-
tion 1254 costs—
(A) The shareholder deducted his or
her share of the amount of deductions
under sections 263(c), 616, and 617 in
the first year in which the shareholder
could claim a deduction for such
amounts, unless in the case of expendi-
tures under sections 263(c) or 616 the S
corporation elected to capitalize such
amounts;
(B) The shareholder was not subject
to the following limitations with respect
to the shareholder’s depletion allowance
under section 611, except to the extent a
limitation applied at the corporate level:
the taxable income limitation of section
613(a); the depletable quantity limita-
tions of section 613A(c); or the limita-
tions of sections 613A(d)(2), (3), and
(4) (exclusion of retailers and refiners).
(6)Examples.The following ex-
amples illustrate the provisions of this
paragraph (g):
Example 1. Transfer of natural resource recap-
ture property to an S corporation in a section 351
transaction.As of January 1, 1997, A owns all the
stock (20 shares) in X, an S corporation. X holds
property that is not natural resource recapture
property that has a fair market value of $2,000
and an adjusted basis of $2,000. On January 1,
1997, B transfers natural resource recapture prop-
erty, Property P, to X in exchange for 80 shares of
X stock in a transaction that qualifies under
section 351. Property P has a fair market value of
$8,000 and an adjusted basis of $5,000. Pursuant
to section 351, B does not recognize gain on the
transaction. Immediately prior to the transaction,
B’s section 1254 costs with respect to Property P
equaled $6,000. Under § 1.1254–2(c)(1), B does
not recognize any gain under section 1254 on the
section 351 transaction and, under § 1.1254–
3(b)(1), X’s section 1254 costs with respect to
Property P immediately after the contribution
equal $6,000. Under paragraph (g)(2) of this
section, each shareholder is allocated a pro rata
share of X’s section 1254 costs. The pro rata share
of X’s section 1254 costs that is allocated to A
equals $1,200 (20 percent interest in X multiplied
by X’s $6,000 of section 1254 costs). The pro rata
share of X’s section 1254 costs that is allocated to
B equals $4,800 (80 percent interest in X multi-
plied by X’s $6,000 of section 1254 costs).
Example 2. Contribution of money in exchange
for stock of an S corporation holding natural
resource recapture property.As of January 1,
1997, A and B each own 50 percent of the stock
(50 shares each) in X, an S corporation. X holds
natural resource recapture property, Property P,
which has a fair market value of $20,000 and an
adjusted basis of $14,000. A’s and B’s section
1254 costs with respect to Property P are $4,000
and $1,500, respectively. On January 1, 1997, C
contributes $20,000 to X in exchange for 100
shares of X’s stock. Under paragraph (g)(1)(i) of
this section, X must allocate to C a pro rata share
of its shareholders’ section 1254 costs. Using the
assumptions set forth in paragraph (g)(5)(iii) of
this section, X determines that A’s section 1254
costs with respect to natural resource recapture
property held by X equal $4,500. Using written
data provided by B, X determines that B’s section
1254 costs with respect to Property P equal
$1,500. Thus, the aggregate of X’s shareholders’
section 1254 costs equals $6,000. C’s pro rata
share of the $6,000 of section 1254 costs equals
$3,000 (C’s 50 percent interest in X multiplied by
$6,000). Under paragraph (g)(1)(ii) of this section,
A’s section 1254 costs are reduced by $2,000 (A’s
actual section 1254 costs ($4,000) multiplied by
50 percent). B’s section 1254 costs are reduced by
$750 (B’s actual section 1254 costs ($1,500)
multiplied by 50 percent).
Example 3. Merger involving an S corporation
that holds natural resource recapture property.X,
an S corporation with one shareholder, A, holds as
its sole asset natural resource recapture property
that has a fair market value of $120,000 and an
adjusted basis of $40,000. A has section 1254
costs with respect to the property of $60,000. For
valid business reasons, X merges into Y, an S
corporation with one shareholder, B, in a reorgani-
zation described in section 368(a)(1)(A). Y holds
property that is not natural resource recapture
property that has a fair market value of $120,000
and basis of $120,000. Under paragraph (c) of this
section, A does not recognize ordinary income
under section 1254 upon the exchange of stock in
the merger because A did not otherwise recognize
gain on the merger. Under paragraph (g)(2) of this
section, Y must allocate to A and B a pro rata
share of its $60,000 of section 1254 costs. Thus, A
and B are each allocated $30,000 of section 1254
costs (50 percent interest in X, each, multiplied by
$60,000).
Par. 6. Section 1.1254–6 is amended
by adding two sentences at the end of
this section to read as follows:
§ 1.1254–6 Effective date of regula-
tions.
* * * Section 1.1254–4 applies to
dispositions of natural resource recap-
ture property by an S corporation (and a
corporation that was formerly an S
corporation) and dispositions of S cor-
poration stock occurring on or after
October 10, 1996. Sections 1.1254–
2(d)(1)(ii) and 1.1254–3(b)(1)(i) and (ii)
and (d)(1)(i) and (ii) are effective for
dispositions of property occurring on or
after October 10, 1996.
PART 602—OMB CONTROL
NUMBERS UNDER THE
PAPERWORK REDUCTION ACT
Par. 7. The authority citation for part
602 continues to read as follows:
Authority: 26 U.S.C. 7805.
Par. 8. In § 602.101, paragraph (c) is
amended by adding an entry in numeri-
cal order to the table to read as follows.
8

§ 602.101 OMB Control numbers.
* * * * *
(c) * * *
CFR part of section
where identified
and described
Current OMB
control No.
* * * * *
1.1254–4 . . . . . . . . . . . . . 1545–1493
* * * * *
Michael P. Dolan,
Acting Commissioner of
Internal Revenue.
Approved September 10, 1996.
Donald C. Lubick,
Assistant Secretary of the Treasury.
(Filed by the Office of the Federal Register on
October 9, 1996, 8:45 a.m., and published in the
issue of the Federal Register for October 10, 1996,
61 F.R. 53062)
Section 6011.—General
Requirement of Return, Statement,
or List
26 CFR 301.6011–2T: Required use of magnetic
media (temporary).
T.D. 8683
DEPARTMENT OF THE TREASURY
Internal Revenue Service
26 CFR Parts 1 and 301
Magnetic Media Filing
Requirements for Information
Returns
AGENCY: Internal Revenue Service
(IRS), Treasury.
ACTION: Final and temporary regula-
tions.
SUMMARY: This document contains
regulations relating to the requirements
for filing information returns on mag-
netic media or in other machine-
readable form under section 6011(e) of
the Internal Revenue Code (Code).
These regulations affect persons filing
information returns. These regulations
prescribe new magnetic media filing
requirements for employers filing wage
and tax statements for employees in
Puerto Rico, U.S. Virgin Islands, Guam,
and American Samoa. In addition, these
regulations provide taxpayers with the
guidance to comply with the changes
made to the Code and to the administra-
tive practices with respect to filing on
magnetic media or in other machine-
readable form. The text of these tempo-
rary regulations also serves as the text
of the proposed regulations set forth in
REG–209803–95, page 14.
EFFECTIVE DATE: These regulations
are effective on January 1, 1997.
FOR FURTHER INFORMATION
CONTACT: Donna Welch, Internal
Revenue Service, 1111 Constitution
Ave., NW., Washington, DC 20224; tele-
phone (202) 622–4910 (not a toll-free
call), if the inquiry relates to provisions
of these regulations. For further infor-
mation, see telephone numbers listed at
the beginning of SUPPLEMENTARY
INFORMATION.
SUPPLEMENTARY INFORMATION:
For persons residing in the following
locations, contact the following offices
of the Social Security Administration
(not a toll-free call), if the inquiry
relates to magnetic media filing and
magnetic media specifications for Form
W–2, Form 499R–2/W–2PR, Form
W–2VI, Form W–2GU, and Form
W–2AS:
Alabama (404) 331–2587 (Atlanta),
Alaska (206) 615–2125 (Seattle),
American Samoa (415) 744–4559
(San Francisco),
Arizona (415) 744–4559 (San Fran-
cisco),
Arkansas (501) 324–5466 (Little
Rock),
California (415) 744–4559 (San Fran-
cisco),
Colorado (303) 844–2364 (Denver),
Connecticut (617) 565–2895 (Boston),
Delaware (215) 597–4632 (Philadel-
phia),
District of Columbia (215) 597–4632
(Philadelphia),
Florida (404) 331–2587 (Atlanta),
Georgia (404) 331–2587 (Atlanta),
Guam (415) 744–4559 (San Fran-
cisco),
Hawaii (415) 744–4559 (San Fran-
cisco),
Idaho (206) 615–2125 (Seattle),
Illinois (312) 353–6717 (Chicago),
Indiana (312) 353–6717 (Chicago),
Iowa (816) 426–2095 (Kansas City),
Kansas (816) 426–2095 (Kansas
City),
Kentucky (404) 331–2587 (Atlanta),
Louisiana (504) 389–0426 (Baton
Rouge),
Maine (617) 565–2895 (Boston),
Maryland (215) 597–4632 (Philadel-
phia),
Massachusetts (617) 565–2895 (Bos-
ton),
Michigan (312) 353–6717 (Chicago),
Minnesota (312) 353–6717 (Chicago),
Mississippi (404) 331–2587 (Atlanta),
Missouri (816) 426–2095 (Kansas
City),
Montana (303) 844–2364 (Denver),
Nebraska (816) 426–2095 (Kansas
City),
Nevada (415) 744–4559 (San Fran-
cisco),
New Hampshire (617) 565–2895
(Boston),
New Jersey (212) 264–0258 (New
York),
New Mexico (505) 262–6048 (Albu-
querque),
New York (212) 264–0258 (New
York),
North Carolina (404) 331–2587 (At-
lanta),
North Dakota (303) 844–2364 (Den-
ver),
Ohio (312) 353–6717 (Chicago),
Oklahoma (405) 951–3007 (Okla-
homa City),
Oregon (206) 615–2125 (Seattle),
Pennsylvania (215) 597–4632 (Phila-
delphia),
Puerto Rico (809) 766–5574 (San
Juan),
Rhode Island (617) 565–2895 (Bos-
ton),
South Carolina (404) 331–2587 (At-
lanta),
South Dakota (303) 844–2364 (Den-
ver),
Tennessee (404) 331–2587 (Atlanta),
Texas-Central/South (210) 229–6433
(San Antonio),
Texas-Dallas County (214) 767–6777
(Dallas),
Texas-North (817) 334–3123 (Forth
Worth),
Texas-Southeast (713) 653–4722
(Houston),
Texas-West (505) 262–6048 (Albu-
querque),
Utah (303) 844–2364 (Denver),
Vermont (617) 565–2895 (Boston),
Virgin Islands (809) 766–5574 (San
Juan),
Virginia (215) 597–4632 (Philadel-
phia),
Washington (206) 615–2125 (Seattle),
West Virginia (215) 597–4632 (Phila-
delphia),
Wisconsin (312) 353–6717 (Chicago),
and
Wyoming (303) 844–2364 (Denver).
Magnetic Media Reporting, Internal
Revenue Service, Martinsburg Comput-
ing Center, P.O. Box 1359, Martinsburg,
9

West Virginia 25401–1359; telephone
(304) 263–8700 (not a toll-free call), if
the inquiry relates to either the waiver
procedure for all forms described in
these regulations or to the magnetic
media specifications for Forms 1042–S,
1098, 1099 series, 5498, 8027, or
W–2G.
Background
This document contains amendments
to the Procedure and Administration
Regulations (26 CFR Part 301) relating
to the requirement under section 6011(e)
to file information returns on magnetic
media or in other machine-readable
form. Section 6011(e) authorizes the
Secretary to prescribe regulations pro-
viding the standards for determining
which returns must be filed on magnetic
media or in other machine-readable
form. Section 6011(e) of the Internal
Revenue Code (Code) was added to the
Code by section 319 of the Tax Equity
and Fiscal Responsibility Act of 1982,
Public Law 97–248, 96 Stat. 610; and
was amended by section 109 of the
Interest and Dividend Tax Compliance
Act of 1983, Public Law 98–67, 97 Stat.
383; and section 7713 of the Revenue
Reconciliation Act of 1989 (1989 Act),
Public Law 101–239, 103 Stat. 2394.
This document also contains conform-
ing amendments to the Income Tax
Regulations (26 CFR Part 1) relating to
returns of information of brokers and
barter exchanges required under section
6045.
Explanation of Provisions
In order to reduce its administrative
burden and increase accurate processing
of information, the Social Security Ad-
ministration (the SSA) requested that
regulations be issued to require Forms
499R–2/W–2PR (Withholding State-
ment), Forms W–2VI (U.S. Virgin Is-
lands Wage and Tax Statement), Forms
W–2GU (Guam Wage and Tax State-
ment), and Forms W–2AS (American
Samoa Wage and Tax Statement) to be
filed on magnetic media. In Notice
95–64 (1995–2 C.B. 342), the IRS in-
formed taxpayers of its intention to
issue regulations requiring these forms
to be filed on magnetic media with the
SSA and invited public comment on the
matter. The Notice stated that the re-
quirement would be effective for wage
and tax statements required to be filed
after December 31, 1996. No comments
were received in response to the Notice.
These regulations expand the wage and
tax statements required to be filed on
magnetic media with the SSA to include
Form 499R–2/W–2PR, Form W–2VI,
Form W–2GU, and Form W–2AS.
In addition, these regulations reflect
the current provisions of section
6011(e). As amended by the 1989 Act,
section 6011(e)(2)(A) provides that the
Secretary shall not require any person to
file returns on magnetic media unless
the person is required to file at least 250
returns during the calendar year (250-
threshold). Consistent with the provi-
sions of section 6011(e)(2)(A), these
regulations provide that no person is
required to file on magnetic media un-
less the person is required to file 250 or
more returns during the calendar year.
Further, these regulations clarify that
each type of information return is con-
sidered a separate return, and the 250-
threshold applies separately to each type
of form required to be filed.
In addition, these regulations reflect
the current administrative practices with
respect to filing information returns on
magnetic media or in other machine-
readable form. The IRS and the SSA
now permit filing on tape cartridge but
no longer permit filing on cassette.
Further, the IRS currently permits elec-
tronic filing as an alternative method of
filing, and the SSA is considering per-
mitting electronic filing in the future.
Thus, under these regulations, magnetic
media generally include magnetic tape,
tape cartridge, diskette, and other media
(such as electronic filing) specifically
permitted under the applicable regula-
tions, procedures, or publications.
Further, these regulations reflect the
current procedures for obtaining consent
and authorization from the IRS before
filing on magnetic media. These regula-
tions refer to Form 4419 (Application
for Filing Information Returns
Magnetically/Electronically), which must
be filed by a transmitter with the IRS
before filing Forms 1042–S, 1098, 1099
series, 5498, 8027, and W–2G on mag-
netic media or electronically. These
regulations also remove any reference to
obtaining consent from the SSA because
it no longer requires consent or authori-
zation before filing on magnetic media.
Under the existing regulations, a tax-
payer may request a hardship waiver
from the magnetic media filing require-
ments. The principal factor for demon-
strating hardship is the amount, if any,
by which the cost of filing on magnetic
media exceeds the cost of filing on
paper. The existing regulations provide
that, if an employer is required to make
a final return on Form 941, or a varia-
tion thereof, and expedited filing of
Form W–2 is required, the unavailability
of the specifications for magnetic media
filing will be treated as creating a
hardship, and a waiver of the magnetic
media filing requirements for the expe-
dited Forms W–2 may be granted. This
document extends this waiver provision
to expedited filing of Forms 499R–2/W–
2PR, Forms W–2VI, Forms W–2GU,
and Forms W–2AS.
Special Analyses
It has been determined that this Trea-
sury decision is not a significant regula-
tory action as defined in EO 12866.
Therefore, a regulatory assessment is not
required.
It is hereby certified that the regula-
tions in this document will not have a
significant economic impact on a sub-
stantial number of small entities. This
certification is based on a determination
that these regulations impose no addi-
tional reporting or recordkeeping re-
quirement and only prescribe the
method of filing information returns that
are already required to be filed. Further,
these regulations are consistent with the
requirements imposed by statute. Section
6011(e)(2)(A) provides that, in prescrib-
ing regulations providing standards for
determining which returns must be filed
on magnetic media or in other machine-
readable form, the Secretary shall not
require any person to file returns on
magnetic media unless the person is
required to file at least 250 returns
during the calendar year. Consistent with
the statutory provision, these regulations
do not require information returns to be
filed on magnetic media unless 250 or
more returns are required to be filed.
Further, the economic impact caused by
filing on magnetic media should be
minimal. If a taxpayer’s operations are
computerized, reporting in accordance
with the regulations should be less
costly than filing on paper. If the tax-
payer’s operations are not computerized,
the incremental cost of magnetic media
reporting should be minimal in most
cases because of the availability of
computer service bureaus. In addition,
the existing regulations provide that the
IRS may waive the magnetic media
filing requirements upon a showing of
hardship. It is anticipated that the waiver
authority will be exercised so as not to
unduly burden taxpayers lacking both
the necessary data processing facilities
and access at a reasonable cost to
10

computer service bureaus. Accordingly,
a Regulatory Flexibility Analysis under
the Regulatory Flexibility Act (5 U.S.C.
chapter 6) is not required.
Pursuant to section 7805(f) of the
Internal Revenue Code, these regulations
will be submitted to the Chief Counsel
for Advocacy of the Small Business
Administration for comment on their
impact on small business.
Drafting Information
The principal author of these regula-
tions is Donna Welch, Office of Assis-
tant Chief Counsel (Income Tax and
Accounting). However, other personnel
from the IRS and the Treasury Depart-
ment participated in the development of
the regulations.
* * * * *
Adoption of Amendments to the Regula-
tions
Accordingly, 26 CFR parts 1 and 301
are amended as follows:
PART 1—INCOME TAXES
Paragraph 1. The authority citation
for part 1 continues to read in part as
follows:
Authority: 26 U.S.C. 7805 * * *
Par. 2. Section 1.6045–1 is amended
by adding a sentence at the end of
paragraph (q) to read as follows:
§ 1.6045–1 Returns of information of
brokers and barter exchanges.
* * * * *
(q) * * * With regard to paragraph (l)
of this section, see section 6011(e) of
the Internal Revenue Code for informa-
tion returns required to be filed after
December 31, 1989, and before January
1, 1997; and see § 1.6045–1T(l) for
information returns required to be filed
after December 31, 1996.
Par. 3. Section 1.6045–1T is added to
read as follows:
§ 1.6045–1T Returns of information of
brokers and barter exchanges (tempo-
rary).
(a) through (k) [Reserved] For further
guidance, see § 1.6045–1(a) through
(k).
(l)Use of magnetic media.For infor-
mation returns filed after December 31,
1996, see § 301.6011–2T of this chapter
for rules relating to filing information
returns on magnetic media and for rules
relating to waivers granted for undue
hardship. For information returns filed
prior to January 1, 1997, see § 1.6045–
1(l).
Par. 4. Section 1.6045–2 is amended
by adding a sentence at the end of
paragraph (i) to read as follows:
§ 1.6045–2 Furnishing statement re-
quired with respect to certain substitute
payments.
* * * * *
(i) * * * With regard to paragraph
(g)(2) of this section, see section
6011(e) of the Internal Revenue Code
for information returns required to be
filed after December 31, 1989, and
before January 1, 1997; and see
§ 1.6045–2T(g)(2) for information re-
turns required to be filed after Decem-
ber 31, 1996.
Par. 5. Section 1.6045–2T is added to
read as follows:
§ 1.6045–2T Furnishing statement re-
quired with respect to certain substitute
payments (temporary).
(a) through (g)(1) [Reserved] For fur-
ther guidance, see § 1.6045–2(a)
through (g)(1).
(g)(2)Use of magnetic media.For
information returns filed after December
31, 1996, see § 301.6011–2T of this
chapter for rules relating to filing infor-
mation returns on magnetic media and
for rules relating to waivers granted for
undue hardship. For information returns
filed prior to January 1, 1997, see
§ 1.6045–2(g)(2).
PART 301—PROCEDURE AND
ADMINISTRATION
Par. 4. The authority citation for part
301 continues to read in part as follows:
Authority: 26 U.S.C. 7805 * * *
Par. 5. Section 301.6011–2T is added
to read as follows:
§ 301.6011–2T Required use of mag-
netic media (temporary).
This section applies to information
returns required to be filed after Decem-
ber 31, 1996. For information returns
required to be filed after December 31,
1989, and before January 1, 1997, see
section 6011(e) of the Internal Revenue
Code and § 301.6011–2.
(a)Meaning of terms.The following
definitions apply for purposes of this
section:
(1)Magnetic media.The termmag-
netic mediameans any magnetic media
permitted under applicable regulations,
revenue procedures, or, in the case of
returns filed with the Social Security
Administration, Social Security Admin-
istration publications. These generally
include magnetic tape, tape cartridge,
and diskette, as well as other media
(such as electronic filing) specifically
permitted under the applicable regula-
tions, procedures, or publications.
(2) and (3) [Reserved] For further
guidance, see § 301.6011– 2(a)(2) and
(3).
(b)Returns required on magnetic me-
dia.(1) If the use of Form 1042–S,
1098, 1099 series, 5498, 8027, W–2G,
or other form treated as a form specified
in this paragraph (b)(1) is required by
the applicable regulations or revenue
procedures for the purpose of making an
information return, the information re-
quired by the form must be submitted
on magnetic media, except as otherwise
provided in paragraph (c) of this section.
Returns on magnetic media must be
made in accordance with applicable rev-
enue procedures or publications. See
§ 601.601(d)(2)(ii)(b) of this chapter.
Pursuant to these procedures, the con-
sent of the Commissioner of Internal
Revenue (or other authorized officer or
employee of the Internal Revenue Ser-
vice) to a magnetic medium must be
obtained by submitting Form 4419 (Ap-
plication for Filing Information Returns
Magnetically/Electronically) prior to
submitting a return described in this
paragraph (b)(1) on the magnetic me-
dium.
(2) If the use of Form W–2 (Wage
and Tax Statement), Form 499R–2/W–
2PR (Withholding Statement), Form
W–2VI (U.S. Virgin Islands Wage and
Tax Statement), Form W–2GU (Guam
Wage and Tax Statement), Form W–2AS
(American Samoa Wage and Tax State-
ment), or other form treated as a form
specified in this paragraph (b)(2) is
required for the purpose of making an
information return, the information re-
quired by the form must be submitted
on magnetic media, except as otherwise
provided in paragraph (c) of this section.
Returns described in this paragraph
(b)(2) must be made in accordance with
applicable Social Security Administra-
tion procedures or publications (which
may be obtained from the local office of
the Social Security Administration).
(3) [Reserved] For further guidance,
see § 301.6011–2(b)(3).
(c)Exceptions—(1)Low-volume fil-
ers/250-threshold—(i)In general.No
person is required to file information
returns on magnetic media unless the
11

person is required to file 250 or more
returns during the calendar year. Persons
filing fewer than 250 returns during the
calendar year may make the returns on
the prescribed paper form, or, alterna-
tively, such persons may make returns
on magnetic media in accordance with
paragraph (b) of this section.
(ii) [Reserved] For further guidance,
see § 301.6011– 2(c)(1)(ii).
(iii)No aggregation.Each type of
information return described in para-
graphs (b)(1) and (2) of this section is
considered a separate return for pur-
poses of this paragraph (c)(1). There-
fore, the 250-threshold applies sepa-
rately to each type of form required to
be filed.
(iv)Examples.The provisions of
paragraph (c)(1)(iii) of this section are
illustrated by the following examples:
Example 1.For the calendar year ending De-
cember 31, 1996, Company X is required to file
200 returns on Form 1099–INT and 350 returns on
Form 1099–MISC. Company X is not required to
file Forms 1099–INT on magnetic media but is
required to file Forms 1099–MISC on magnetic
media.
Example 2.During the calendar year ending
December 31, 1996, Company Y has 275 employ-
ees in Puerto Rico and 50 employees in American
Samoa. Company Y is required to file Forms
499R–2/W–2PR on magnetic media but is not
required to file Forms W–2AS on magnetic media.
Example 3.For the calendar year ending De-
cember 31, 1996, Company Z files 300 original
returns on Form 1099–DIV and later files 70
corrected returns on Form 1099–DIV. Company Z
is required to file the original returns on magnetic
media. However, Company Z is not required to
file the corrected returns on magnetic media
because the corrected returns fall under the 250-
threshold. See § 301.6721–1(a)(2)(ii).
(2)Waiver.(i) The Commissioner
may waive the requirements of this
section if hardship is shown in a request
for waiver filed in accordance with this
paragraph (c)(2)(i). The principal factor
in determining hardship will be the
amount, if any, by which the cost of
filing the information returns in accor-
dance with this section exceeds the cost
of filing the returns on other media.
Notwithstanding the foregoing, if an
employer is required to make a final
return on Form 941, or a variation
thereof, and expedited filing of Forms
W–2, Forms 499R–2/W–2PR, Forms
W–2VI, Forms W–2GU, or Form
W–2AS is required, the unavailability of
the specifications for magnetic media
filing will be treated as creating a
hardship. See § 31.6071(a)–1(a)(3)(ii).
A request for waiver must be made in
accordance with applicable revenue pro-
cedures or publications. See § 601.601-
(d)(2)(ii)(b) of this chapter. Pursuant to
these procedures, a request for waiver
should be filed at least 45 days before
the due date of the information return in
order for the Service to have adequate
time to respond to the request for
waiver. The waiver will specify the type
of information return and the period to
which it applies and will be subject to
such terms and conditions regarding the
method of reporting as may be pre-
scribed by the Commissioner.
(ii) The Commissioner may prescribe
rules that supplement the provisions of
paragraph (c)(2)(i) of this section.
(c)(3) and (4) [Reserved]. For further
guidance, see § 301.6011–2(c)(3) and
(4).
(d) and (e) [Reserved] For further
guidance, see § 301.6011–2(d) and (e).
(f)Failure to file.If a person fails to
file an information return on magnetic
media when required to do so by this
section, the person is deemed to have
failed to file the return. In addition, if a
person making returns on a paper form
under paragraph (c) of this section fails
to file a return on machine-readable
paper form when required to do so by
this section, the person is deemed to
have failed to file the return. See sec-
tions 6652, 6693, and 6721 for penalties
for failure to file certain returns. See
also section 6724 and the regulations
under section 6721 for the specific rules
and limitations regarding the penalty
imposed under section 6721 for failure
to file on magnetic media.
(g)Effective date.(1) [Reserved] For
further guidance, see § 301.6011–
2(g)(1).
(2) Paragraphs (a)(1), (b)(1) and (2),
(c)(1)(i), (iii), and (iv), (c)(2), and (f) of
this section are effective for information
returns required to be filed after Decem-
ber 31, 1996. For information returns
required to be filed after December 31,
1989, and before January 1, 1997, see
section 6011(e) of the Internal Revenue
Code and § 301.6011–2.
Margaret Milner Richardson,
Commissioner of Internal Revenue.
Approved September 10, 1996.
Donald C. Lubick,
Acting Assistant Secretary
of the Treasury.
(Filed by the Office of the Federal Register on
October 9, 1996, 8:45 a.m., and published in the
issue of the Federal Register for October 10, 1996,
61 F.R. 53058)
12

Part III. Administrative, Procedural, and Miscellaneous
Weighted Average Interest Rate
Update
Notice 96–54
Notice 88–73 provides guidelines for
determining the weighted average inter-
est rate and the resulting permissible
range of interest rates used to calculate
current liability for the purpose of the
full funding limitation of § 412(c)(7) of
the Internal Revenue Code as amended
by the Omnibus Budget Reconciliation
Act of 1987 and as further amended by
the Uruguay Round Agreements Act,
P.L. 103–465 (GATT).
The average yield on the 30-year
Treasury Constant Maturities for Sep-
tember 1996 is 7.03 percent.
The following rates were determined
for the plan years beginning in the
month shown below.
MonthYear
Weighted
Average
90% to 108%
Permissible
Range
90% to 110%
Permissible
Range
October19966.916.22 to 7.476.22 to 7.61
Drafting Information
The principal author of this notice is
Donna Prestia of the Employee Plans
Division. For further information regard-
ing this notice, call (202) 622–6076
between 2:30 and 4:00 p.m. Eastern
time (not a toll-free number). Ms.
Prestia’s number is (202) 622–7377
(also not a toll-free number).
13

Part IV. Items of General Interest
Notice of Proposed Rulemaking
and Notice of Public Hearing
Magnetic Media Filing
Requirements for Information
Returns
REG–209803–95
AGENCY: Internal Revenue Service
(IRS), Treasury.
ACTION: Notice of proposed rulemak-
ing and notice of public hearing.
SUMMARY: In ***T.D. 8683, page 9,
the IRS is issuing temporary regulations
relating to the requirements for filing
information returns on magnetic media
or in other machine-readable form under
section 6011(e) of the Internal Revenue
Code. The text of those temporary regu-
lations also serves as the text of the
proposed regulations. This document
also contains a proposed amendment to
§ 301.6011–2(g)(2). This document also
provides notice of a public hearing on
these proposed regulations.
DATES: Written comments must be re-
ceived by January 8, 1997. Outlines of
topics to be discussed at the public
hearing scheduled for February 5, 1997,
must be received by January 15, 1997.
ADDRESSES: Send submissions to:
CC:DOM:CORP:R (REG–209803–95),
room 5228, Internal Revenue Service,
POB 7604, Ben Franklin Station, Wash-
ington, DC 20044. In the alternative,
submissions may be hand delivered be-
tween the hours of 8 a.m. and 5 p.m. to:
CC:DOM:CORP:R (REG–209803–95),
Courier’s Desk, Internal Revenue Ser-
vice, 1111 Constitution Ave., NW.,
Washington, DC. Alternatively, tax-
payers may submit comments electroni-
cally via the internet by selecting the
‘‘Tax Regs’’ option on the IRS Home
Page, or by submitting comments di-
rectly to the IRS internet site at http://
www.irs.ustreas.gov/prod/tax_regs/
comments.html. The public hearing will
be held in Room 3313 of the Internal
Revenue Building, 1111 Constitution
Ave., NW., Washington, DC.
FOR FURTHER INFORMATION
CONTACT: Concerning the regulations,
Donna Welch, (202) 622–4910; concern-
ing submissions and the hearing, Mike
Slaughter, (202) 622–7190 (not toll-free
numbers).
SUPPLEMENTARY INFORMATION:
Background
Temporary regulations in T.D. 8683
amend the Income Tax Regulations (26
CFR part 1) relating to section 6045 and
the Procedure and Administration Regu-
lations (26 CFR part 301) relating to
section 6011(e). The temporary regula-
tions contain rules relating to the filing
requirements of information returns on
magnetic media or in other machine-
readable form under section 6011(e).
The text of those temporary regula-
tions also serves as the text of these
proposed regulations. The preamble to
the temporary regulations explains the
temporary regulations.
Special Analyses
It has been determined that these
proposed regulations are not a signifi-
cant regulatory action as defined in EO
12866. Therefore, a regulatory assess-
ment is not required.
It is hereby certified that the regula-
tions in this document will not have a
significant economic impact on a sub-
stantial number of small entities. This
certification is based on a determination
that these regulations impose no addi-
tional reporting or recordkeeping re-
quirement and only prescribe the
method of filing information returns that
are already required to be filed. Further,
these regulations are consistent with the
requirements imposed by statute. Section
6011(e)(2)(A) provides that, in prescrib-
ing regulations providing standards for
determining which returns must be filed
on magnetic media or in other machine-
readable form, the Secretary shall not
require any person to file returns on
magnetic media unless the person is
required to file at least 250 returns
during the calendar year. Consistent with
the statutory provision, these regulations
do not require information returns to be
filed on magnetic media unless 250 or
more returns are required to be filed.
Further, the economic impact caused by
requiring filing on magnetic media
should be minimal. If a taxpayer’s op-
erations are computerized, reporting in
accordance with the regulations should
be less costly than filing on paper. If the
taxpayer’s operations are not computer-
ized, the incremental cost of magnetic
media reporting should be minimal in
most cases because of the availability of
computer service bureaus. In addition,
the existing regulations provide that the
IRS may waive the magnetic media
filing requirements upon a showing of
hardship. It is anticipated that the waiver
authority will be exercised so as not to
unduly burden taxpayers lacking both
the necessary data processing facilities
and access at a reasonable cost to
computer service bureaus. Accordingly,
a Regulatory Flexibility Analysis under
the Regulatory Flexibility Act (5 U.S.C.
chapter 6) is not required.
Pursuant to section 7805(f) of the
Internal Revenue Code, these proposed
regulations will be submitted to the
Chief Counsel for Advocacy of the
Small Business Administration for com-
ment on their impact on small business.
Comments and Public Hearing
Before these proposed regulations are
adopted as final regulations, consider-
ation will be given to any written com-
ments (a signed original and eight (8)
copies) that are submitted timely to the
IRS. All comments will be available for
public inspection and copying.
A public hearing has been scheduled
for February 5, 1997, at 10 am. The
hearing will be held in room 3313 of
the Internal Revenue Building, 1111
Constitution Ave., NW., Washington,
DC. Because of access restrictions, visi-
tors will not be admitted beyond the
Internal Revenue Building lobby more
than 15 minutes before the hearing
starts.
The rules of 26 CFR 601.601(a)(3)
apply to the hearing.
Persons who wish to present oral
comments at the hearing must submit
written comments by January 8, 1997,
and submit an outline of the topics to be
discussed and the time to be devoted to
each topic (signed original and eight (8)
copies) by January 15, 1997.
A period of 10 minutes will be allot-
ted to each person for making com-
ments.
An agenda showing the scheduling of
the speakers will be prepared after the
deadline for receiving outlines has
passed. Copies of the agenda will be
available free of charge at the hearing.
Drafting Information
The principal author of the regula-
tions is Donna Welch, Office of Assis-
141996–44 I.R.B.

tant Chief Counsel (Income Tax and
Accounting). However, other personnel
from the IRS and the Treasury Depart-
ment participated in the development of
the regulations.
* * * * *
Proposed Amendments to the Regula-
tions
Accordingly, 26 CFR parts 1 and 301
are proposed to be amended as follows:
PART 1—INCOME TAXES
Paragraph 1. The authority citation
for part 1 continues to read in part as
follows:
Authority: 26 U.S.C. 7805 * * *
Par. 2. In § 1.6045–1, paragraph (l)
is revised to read as follows:
§ 1.6045–1 Returns of information of
brokers and barter exchanges.
[The text of paragraph (l) as proposed
is the same as the first sentence of
§ 1.6045–1T(l) published in T.D. 8683,
page 9.
Par. 3. In § 1.6045–2, paragraph
(g)(2) is revised to read as follows:
§ 1.6045–2 Furnishing statement re-
quired with respect to certain substitute
payments.
[The text of paragraph (g)(2) as pro-
posed is the same as the text of the first
sentence of § 1.6045–2T(g)(2) pub-
lished in T.D. 8683, page 9.
PART 301—PROCEDURE AND
ADMINISTRATION
Par. 4. The authority citation for part
301 continues to read in part as follows:
Authority: 26 U.S.C. 7805 * * *
Par. 5. Section 301.6011–2 is
amended by revising paragraphs (a)(1),
(b)(1) and (2), (c)(1)(i) and (iii), (c)(2),
(f) and (g)(2), and by adding (c)(1)(iv),
and by removing paragraphs (c)(3) and
(4) and the last sentence of paragraph
(e). The revisions and additions read as
follows:
§ 301.6011–2 Required use of magnetic
media.
[The text of paragraphs (a)(1), (b)(1)
and (2), (c)(1)(i), (iii), and (iv), (c)(2),
(f), and (g)(2) as proposed is the same
as the text in § 301.6011–2T(a)(1),
(b)(1) and (2), (c)(1)(i), (iii), and (iv),
(c)(2), (f), and the first sentence of
(g)(2) published in T.D. 8683, page 9.
Margaret Milner Richardson,
Commissioner of Internal Revenue.
(Filed by the Office of the Federal Register on
October 9, 1996, 8:45 a.m., and published in the
issue of the Federal Register for October 10, 1996,
61 F.R. 53161)
Developing Interim Requirements
for Designated Delivery Services
Under Section 7502(f) of the
Internal Revenue Code
Announcement 96–108
SUMMARY: This announcement invites
comments, and provides notice of a
public hearing, with respect to interim
criteria for designating private delivery
services for purposes of the ‘‘timely
mailing as timely filing/paying’’ rule of
§ 7502 of the Internal Revenue Code.
BACKGROUND: The Internal Revenue
Service currently accepts mail from both
the United States Postal Service
(‘‘USPS’’) and private delivery services.
However, the ‘‘timely mailing as timely
filing/paying’’ rule of § 7502(a) has
applied only to documents and payments
delivered by the USPS. Thus, taxpayers
who assumed that using a private deliv-
ery service was adequate to show timely
filing of their documents or timely mak-
ing of their payments could inadvert-
ently fail to qualify under the ‘‘timely
mailing as timely filing/paying’’ rule.
Similarly, the rule of section 7502(c)
that proof of proper registration of a
document, or that a postmarked certified
mail sender’s receipt was properly is-
sued for a document, is prima facie
evidence of delivery applies only to
documents sent by United States regis-
tered or certified mail.
Section 1210 of the Taxpayer Bill of
Rights 2 authorized the Service to ex-
pand the ‘‘timely mailing as timely
filing/paying’’ rule to documents and
payments delivered by certain private
delivery services that meet the USPS’s
ability to deliver items timely, reliably,
and securely. A private delivery service
must be designated by the Service be-
fore it will qualify for the ‘‘timely
mailing as timely filing/paying’’ rule.
The new statute also authorized an addi-
tional designation under § 7502(f)(3)
for those private delivery services that
provide a service equivalent to United
States registered or certified mail. The
new statute is not intended to limit the
mailing options that taxpayers currently
use, but rather to expand the ‘‘timely
mailing as timely filing/paying’’ rule to
more delivery services.
After consideration of public com-
ments received in response to this an-
nouncement, the Service intends to issue
interim guidance that will establish the
criteria to be used to designate private
delivery services for a limited period of
time, starting in the first quarter of
1997. Once that interim guidance is
issued, private delivery services will be
able to apply to the Service to become
‘‘designated delivery services’’ under
§ 7502(f). After consideration of those
applications, the Service will publish a
list of the designated delivery services
for the interim period. That list will
indicate whether the designation is
solely for purposes of § 7502(f)(2)
(timely mailing as timely filing/paying)
or whether it is also for purposes of
§ 7502(f)(3) (services that are equiva-
lent to United States registered or certi-
fied mail).
Following its designation of private
delivery services for the interim period,
the Service intends to publish permanent
guidance.
INTERIM REQUIREMENTS: Section
7502(f)(2) provides that the Service may
designate a private delivery service only
if it meets the following requirements:
(A) it must be available to the gen-
eral public,
(B) it must be at least as timely and
reliable on a regular basis as United
States mail,
(C) it must record electronically to its
data base (kept in the regular course of
its business) the date on which the item
was given to the private delivery service
for delivery, or mark such date on the
cover of the item to be delivered, and
(D) it must meet such other criteria
as the Service may prescribe.
Congress intended to allow the designa-
tion of private delivery services which
meet the USPS’s ability to deliver docu-
ments quickly and securely.SeeH.R.
Rep. No. 506, 104th Cong., 2d Sess. 51
(1996).
The Service is developing guidance
that will implement the statutory criteria
during the interim period in accordance
with Congress’s intent. For example, the
USPS postmarks First-Class Mail on the
date an item is received for delivery by
indelibly marking such date on the
151996–44 I.R.B.

cover of the item so that it is readable
by the human eye without mechanical
assistance. The Service anticipates that a
similar marking or labeling requirement
may be appropriate under clause (C)
above, even for a private delivery ser-
vice that records the date of receipt
electronically to its data base. Further,
there are special rules under § 7502 for
United States mail that has a postmark
made other than by the USPS.See
Treas. Reg. § 301.7502–1(c)(1)(iii)(b).
For example, if privately metered mail
is incorrectly dated, an envelope may
have a postmark made by the USPS in
addition to the postmark from a private
postage meter. In that situation, the
postmark made by the private postage
meter is disregarded and the USPS
postmark is used for purposes of
§ 7502. Similarly, if a private delivery
service permits the sender (or the send-
er’s agent or intermediary) to identify
the date under (C), the private delivery
service may be required to have estab-
lished procedures to verify the date and
to correct the date if the item is incor-
rectly dated.
The Service invites written comments
concerning the additional criteria that
should be prescribed, under clause (D)
above, in order to guarantee the same
levels of timeliness, reliability, security,
and scope of delivery as are available
from the USPS. Comments are also
requested on what, if any, different or
additional criteria should be applied to
determine the equivalence of a private
delivery service to United States regis-
tered or certified mail within the scope
of § 7502(f)(3).
Taxpayers should note that no private
delivery service has yet been designated
pursuant to § 7502(f), nor will the Ser-
vice accept applications for designation
until the interim guidance is issued.
Until such designation is announced, the
‘‘timely mailing as timely filing/paying’’
rule of § 7502 is available only with
respect to items sent by United States
mail.
COMMENTS AND PUBLIC HEAR-
ING: In order to meet the Service’s
objective of publishing a list of the
designated delivery services for the in-
terim period in the first quarter of 1997,
it is necessary to receive comments and
hold the public hearing (discussed be-
low) as soon as possible. Accordingly, a
signed original and eight copies of all
comments should be submitted by No-
vember 22, 1996, by either mailing
them to:
Internal Revenue Service
P.O. Box 7604
Ben Franklin Station
Attn: CC:DOM:CORP:T:R:IT&A
(Branch 4) Room 5228
Washington, D.C. 20044,
or hand delivering them between the
hours of 8:00 a.m. and 5:00 p.m. to:
Courier’s Desk
Internal Revenue Service
1111 Constitution Avenue, N.W.
Attn: CC:DOM:CORP:T:R:IT&A
(Branch 4) Room 5228
Washington, D.C.
Alternatively, comments may be submit-
ted electronically via the Service’s
Internet site at ‘‘http://www.irs.ustreas.
gov/prod/tax_regs/comments.html’’. All
comments will be available for public
inspection and copying.
A public hearing has been scheduled
for Friday, December 6, 1996, at 10:00
a.m. in Room 3313; Internal Revenue
Building; 1111 Constitution Avenue,
N.W.; Washington, D.C. Because of ac-
cess restrictions, visitors will not be
admitted beyond the building lobby
more than 15 minutes before the hearing
starts. Persons who wish to present oral
comments at the hearing must submit
written comments as well as an outline
of the topics to be discussed and the
time to be devoted to each topic (a
signed original and eight copies) by
November 22, 1996. Each speaker (or
group of speakers representing a single
entity) will be limited to 10 minutes for
an oral presentation, exclusive of the
time consumed by the questions from
the panel and the answers thereto. An
agenda showing the scheduling of the
speakers will be made after the outlines
are received from the persons testifying.
Copies of the agenda will be available
free of charge at the hearing.
FOR FURTHER INFORMATION: For
further information regarding the sub-
stance of this announcement, contact
Robert J. Basso of the Office of Assis-
tant Chief Counsel (Income Tax and
Accounting) at (202) 622–6232 (not a
toll-free call). For further information
regarding the submission of comments
and the public hearing, contact
Evangelista Lee of the Regulations Unit,
Office of Assistant Chief Counsel (Cor-
porate) at (202) 622–7190 (not a toll-
free call).
Foundations Status of Certain
Organizations
Announcement 96–111
The following organizations have
failed to establish or have been unable
to maintain their status as public chari-
ties or as operating foundations. Accord-
ingly, 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 doesnotindicate that
the organizations have lost their status
as organizations described in section
501(c)(3), eligible to receive deductible
contributions.
Former Public Charities. The follow-
ing 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:
Assembly of Aethiopian Hebrews, Inc.,
Atlanta, GA
Canids Wildlife Management
Association, Greenbrier, AR
Community Health Foundation of
Central Florida Inc., Aopoka, FL
Festival of Trees Sheboygan County,
Sheboygan, WI
Firethorn Institution, Chicago, IL
Fitzhugh Interventions Inc., Chicago, IL
Fort Ripley-St. Mathias First Response
Inc., Fort Ripley, MN
Fox Valley AIDS Project Inc., Appleton,
WI
Freeport Area Housing Ministry,
Freeport, IL
French Canadian-Acadian Genealogists
of Wisc Inc., New Berlin, WI
Friends for St. Coletta Illinois, Park
Ridge, IL
Friends for the Popular Movement of
Ukraine, Chicago, IL
Friends of Central, Lake Geneva, WI
Friends of Dade County Elderly Inc.,
Miami, FL
Friends of the Chicago Cultural Center,
Chicago, IL
Fulton County Crime Stoppers Inc.,
Canton, IL
Fund for Jewish Education Inc., Skokie,
IL
Genesius Theater Foundation, Rock
Island, IL
Grand Gardens Inc., Grand Rapids, MN
Greater Brown County Committee, Inc.,
Green Bay, WI
161996–44 I.R.B.

Greater Minneapolis Interfaith Network,
Minneapolis, MN
Greater Minnesota Christian Counseling
Services, Minneapolis, MN
Gold Coast Communities Foundation,
Metaieie, LA
Hamlin Park Development Corporation,
Buffalo, NY
Harvey Video & Productions, Harvey,
IL
Hemlock of Wisconsin, Inc., Madison,
WI
Hmong International Organization Inc.,
St. Paul, MN
Hmong U.S.A. Foundation Inc., St.
Paul, MN
Home-Free-Inc., Stevens Point, WI
Hopkins Wrestling Booster Club,
Minnetonka, MN
Human Rights Foundation of Illinois
Inc., Chicago, IL
Marine Life Preservation Society, Coral
Gables, FL
Mexican Folkloric Dance Company of
Chicago Inc., Chicago, IL
Michal Foundation, Chicago, IL
Military Veterans Museum Inc., Neenah,
WI
Minority Family Progress Center Inc
Center Without Walls, Fayetteville,
NC
Mission of Hope, Lockport, IL
New Haven Festivals, Inc., Hamden, CT
Old Abe Booster Club, Eau Claire, WI
Opening Doors of Denver, Aurora, CO
Park Pals, Inc., Clermont, FL
Patrick Randall Sawyer Memorial Fund
Inc., Hartsville, SC
Paxton Area Health Care Foundation,
Paxton, IL
Pickett Steam & Gas Engine Club Inc.,
Oshkosh, WI
Polish Childrens Welfare Fund Inc.,
Chicago, IL
Prayas Inc., Chicago, IL
Prince Georges County Foster Parents
Association Inc., Oxon Hill, MD
Prism Projects Inc., Washington, DC
Proclamation Ministries Inc., Salem, VA
Redirect Inc., Alexandria, VA
Regional Center for Child Protection,
Scranton, PA
Regis Gable Trust Fund, Johnstown, PA
Residents for a Safe Georgetown,
Washington, DC
Results Educational Fund of Maryland
Inc., Baltimore, MD
Richardson Dilworth Memorial Fund,
Philadelphia, PA
Ringgold Historical Foundation,
Danville, VA
Roanoke Valley Museum of Theatre
History Inc., Roanoke, VA
Roanoke Valley Therapeutic Riding
Program Inc., Roanoke, VA
Roaring Spring Ambulance Service,
Roaring Spring, PA
Robert Burns Club of Milwaukee WI,
New Berlin, WI
Rockbridge Regional Fairs Inc.,
Lexington, VA
Rowland Theatre Inc., Philipsburg, PA
Salacoa Valley Day Care Inc.,
Fairmount, GA
Say Nope to Dope, Ventnor, NJ
Second Helpings, Hilton Head Island,
SC
Sherwood Park Civic Association,
Philadelphia, PA
Silica Research Foundation Inc., Silver
Spring, MD
Silver Spoons Inc., King of Prussia, PA
Simple Sacrifice for the Homeless Inc.,
Severn, MD
Skaters Education and Training Fund
Inc., Baltimore, MD
Ski for Light Montana Inc., Bozeman,
MT
Small Important People Inc., Richmond,
VA
Society of Primitive Technology Inc.,
Dover, DE
Software National Resource Inc., Silver
Spring, MD
Somerset Project, Philadelphia, PA
Southeast Como Improvement
Association Inc., Minneapolis, MN
South Side Childrens Advisory Council,
Pittsburgh, PA
South Suburban Development, South
Holland, IL
Springfield Parks Foundation Inc.,
Springfield, IL
Square Wheelers of Pittsburgh Inc.,
Pittsburgh, PA
St. Theresa School Development Fund
Inc., Rolling Meadows, IL
Student Outreach of Richmond Inc.,
Richmond, VA
Sube Inc., Washington, DC
Sudan Relief and Rehabilitation
Association Incorporated, Washington,
DC
Sunset Christian Academy Inc., Newark,
NJ
Support American Troops Fund,
McHenry, IL
Survivors and Victims Empowered,
Lancaster, PA
Talent Outreach for Underpriviledged
Career Hunters Inc., Cleveland, OH
Team Center, Chicago, IL
Token Study Group, Round Lake, IL
Tomah Youth Hockey Club Inc., Tomah,
WI
Trevor E. Ewing Memorial Foundation,
Inc., Old Greenwich, CT
Washington Irish RFC Inc., Arlington,
VA
Washington Square Village Creative
Steps Play Group, New York, NY
Washington Village Academy, Antioch,
IL
Waterworks Foundation Inc., Annapolis,
MD
Welcome Home, Inc., Brockton, MA
West Bluff Resident Management
Corporation, Kansas City, MO
West Chester Baseball Association Inc.,
West Chester, PA
Western Pennsylvania Head Start
Organization Inc., New Castle, PA
West Newton Rutland East Springfield
St. Neighborhood Fund, Inc., Boston,
MA
West Philadelphia Housing Development
Corporation, Philadelphia, PA
Williamsburg Growing Projects, Inc.,
Brooklyn, NY
Wolf Lodge Cultural Foundation, Orcas,
WA
Women Inc., East Orange, NJ
Wood Hollow Childrens Center Inc.,
Madison, WI
Worcester Fights Back, Inc., Worcester,
MA
Work Force Development Agency - A,
Everett, WA
WJPZ Radio, Inc., Syracuse, NY
Yale 50-50 Fund, Inc., Woodrbridge, CT
Yellow Ribbon Celebrity Golf Classic at
Forsgate Inc., Montclair, NJ
Yeshiva Zichron Dovid, Inc., Brooklyn,
NY
Youth World Institute, Rockford, IL
ZAS-Wings of Hope Inc., Washington,
DC
If an organization listed above sub-
mits information that warrants the re-
newal of its classification as a public
charity or as a private operating founda-
tion, the Internal Revenue Service will
issue a ruling or determination letter
with the revised classification as to
foundation status. Grantors and contribu-
tors may thereafter rely upon such rul-
ing or determination letter as provided
171996–44 I.R.B.

in section 1.509(a)–7 of the Income Tax
Regulations. It is not the practice of the
Service to announce such revised classi-
fication of foundation status in the Inter-
nal Revenue Bulletin.
New Form 8837, Notice of
Adoption of Revenue Procedure
Model Amendments
Announcement 96–113
NewForm 8837, Notice of Adoption
of Revenue Procedure Model Amend-
ments, has been developed for use
by sponsors of ‘‘master or prototype’’
plans, regional prototype plans, mass-
submitter plans, and volume submitter
plans, to transmit documents relating to
the adoption of model plan amendments.
The form is now available by modem
or on the Internet. The IRS distribution
centers will have the form by early
November 1996. Plan sponsors may or-
der Form 8837 by telephone or they
may use IRS electronic information ser-
vices to get copies.
Request by— Number or Address
Telephone800–TAX–FORM
(800–829–3676)
Computer and
modem
703–321–8020
(modem settings are
N, 8, 1)
Internet:
World
Wide Web
FTP
Telnet
http://
www.irs.ustreas.gov
ftp.irs.ustreas.gov
iris.irs.ustreas.gov
181996–44 I.R.B.

Announcement of the Disbarment, Suspension, or Consent to Voluntary
Suspension of Attorneys, Certified Public Accountants, Enrolled Agents, and
Enrolled Actuaries From Practice Before the Internal Revenue Service
Under 31 Code of Federal Regula-
tions, Part 10, an attorney, certified pub-
lic accountant, enrolled agent, or en-
rolled actuary, in order to avoid the
institution or conclusion of a proceeding
for his disbarment or suspension from
practice before the Internal Revenue Ser-
vice, 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 accoun-
tants, enrolled agents, and enrolled actu-
aries are prohibited in any Internal Rev-
enue Service matter from directly or
indirectly employing, accepting assis-
tance from, being employed by or shar-
ing fees with, any practitioner disbarred
or suspended from practice before the
Internal Revenue Service.
To enable attorneys, certified public
accountants, enrolled agents, and en-
rolled 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 suspen-
sion. This announcement will appear in
the weekly Bulletin at the earliest practi-
cable date after such action and will
continue to appear in the weekly Bulle-
tins for five successive weeks or for as
many weeks as is practicable for each
attorney, certified public accountant, en-
rolled 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:
NameAddressDesignationDate of Suspension
Lamb, Gordon W.Pullman, WACPASeptember 1, 1996 to January 31, 1997
Anderson, Randall S.Arlington Hgts, ILCPASeptember 1, 1996 to February 28, 1998
Broderick, William J.Farmington Hills, MICPASeptember 1, 1996 to November 30, 1996
Ruggiero, John M.Rutland, VTAttorneySeptember 1, 1996 to October 31, 1996
Eklund, MarkPortland, ORCPASeptember 1, 1996 to February 28, 1997
Stayner, G. CraigSalt Lake City, UTCPASeptember 15, 1996 to June 14, 1997
Allen, Lehman D.Lubbock, TXCPASeptember 20, 1996 to September 19, 1998
Hardgrove, David L.Amarillo, TXCPASeptember 21, 1996 to June 20, 1997
Trader, John H.Kansas City, MOAttorneySeptember 30, 1996 to March 29, 1997
Schmertz, Carl D.Wilmette, ILCPAOctober 1, 1996 to March 31, 1999
Bengston, WesselChicago, ILCPAOctober 15, 1996 to April 14, 1997
19

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 accoun-
tants, enrolled agents, and enrolled actu-
aries are prohibited in any Internal Rev-
enue Service matter from directly or
indirectly employing, accepting assis-
tance from, being employed by, or shar-
ing fees with, any practitioner disbarred
or suspended from practice before the
Internal Revenue Service.
To enable attorneys, certified public
accountants, enrolled agents, and en-
rolled actuaries to identify practitioners
under expedited suspension from prac-
tice 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 suspen-
sion. This announcement will appear in
the weekly Bulletin at the earliest practi-
cable date after such action and will
continue to appear in the weekly Bulle-
tins for five successive weeks or for as
many weeks as is practicable for each
attorney, certified public accountant, en-
rolled 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 pro-
visions of the applicable regulations:
NameAddressDesignationDate of Suspension
Alleva, DonaldMount Vernon, NYEnrolled AgentIndefinite from September 5, 1996
Rose, Robert M.Dallas, TXAttorneyIndefinite from September 5, 1996
McGrath, GregoryNew Smyrna Bch, FLCPAIndefinite from September 8, 1996
Finch, Kenneth L. Jr.Pelham, ALCPAIndefinite from September 8, 1996
20

Numerical Finding List
1
Bulletins 1996–27 through 1996–43
Announcements:
96–61, 1996–27 I.R.B.72
96–62, 1996–28 I.R.B.55
96–63, 1996–29 I.R.B.18
96–64, 1996–29 I.R.B.18
96–65, 1996–29 I.R.B.18
96–66, 1996–29 I.R.B.19
96–67, 1996–30 I.R.B.27
96–68, 1996–31 I.R.B.45
96–69, 1996–32 I.R.B.38
96–70, 1996–32 I.R.B.40
96–71, 1996–33 I.R.B.16
96–72, 1996–33 I.R.B.16
96–73, 1996–33 I.R.B.18
96–74, 1996–33 I.R.B.19
96–75, 1996–34 I.R.B.29
96–76, 1996–34 I.R.B.29
96–77, 1996–35 I.R.B.15
96–78, 1996–35 I.R.B.15
96–79, 1996–35 I.R.B.15
96–80, 1996–35 I.R.B.16
96–81, 1996–36 I.R.B.13
96–82, 1996–36 I.R.B.14
96–83, 1996–36 I.R.B.14
96–84, 1996–36 I.R.B.14
96–85, 1996–37 I.R.B.20
96–86, 1996–37 I.R.B.21
96–87, 1996–37 I.R.B.21
96–88, 1996–38 I.R.B.150
96–89, 1996–37 I.R.B.22
96–90, 1996–37 I.R.B.22
96–91, 1996–37 I.R.B.23
96–92, 1996–38 I.R.B.151
96–93, 1996–38 I.R.B.151
96–94, 1996–38 I.R.B.153
96–96, 1996–39 I.R.B.41
96–97, 1996–39 I.R.B.41
96–98, 1996–39 I.R.B.42
96–99, 1996–39 I.R.B.42
96–100, 1996–40 I.R.B.10
96–101, 1996–40 I.R.B.10
96–102, 1996–40 I.R.B.11
96–103, 1996–40 I.R.B.12
96–104, 1996–41 I.R.B.10
96–105, 1996–42 I.R.B.19
96–106, 1996–42 I.R.B.23
96–107, 1996–42 I.R.B.27
96–109, 1996–43 I.R.B.76
96–110, 1996–43 I.R.B.77
Court Decisions:
2058, 1996–34 I.R.B.13
2059, 1996–34 I.R.B.10
2060, 1996–34 I.R.B.5
Delegation Orders:
155 (Rev. 4), 1996–40 I.R.B.9
Notices:
96–36, 1996–27 I.R.B.11
96–37, 1996–31 I.R.B.29
96–38, 1996–31 I.R.B.29
96–39, 1996–32 I.R.B.8
96–40, 1996–33 I.R.B.11
Notices—Continued
96–41, 1996–35 I.R.B.6
96–42, 1996–35 I.R.B.6
96–43, 1996–36 I.R.B.7
96–44, 1996–36 I.R.B.7
96–45, 1996–39 I.R.B.7
96–46, 1996–39 I.R.B.7
96–47, 1996–39 I.R.B.8
96–48, 1996–39 I.R.B.8
96–49, 1996–41 I.R.B.6
96–50, 1996–41 I.R.B.6
96–51, 1996–42 I.R.B.6
96–52, 1996–42 I.R.B. 8
Proposed Regulations:
CO–9–96, 1996–34 I.R.B.20
CO–24–96, 1996–30 I.R.B.22
CO–25–96, 1996–31 I.R.B.30
CO–26–96, 1996–31 I.R.B.31
FI–59–94, 1996–30 I.R.B.23
FI–32–95, 1996–34 I.R.B.21
FI–48–95, 1996–31 I.R.B.36
FI–28–96, 1996–31, I.R.B.33
GL–7–96, 1996–33 I.R.B.13
IA–292–84, 1996–28 I.R.B.38
IA–26–94, 1996–30 I.R.B.24
IA–29–96, 1996–33 I.R.B.14
INTL–4–95, 1996–36 I.R.B.8
PS–39–93, 1996–34 I.R.B.27
PS–22–96, 1996–33 I.R.B.15
REG–208215–91, 1996–38 I.R.B.145
REG–209826–96, 1996–42 I.R.B.10
REG–209827–96, 1996–37 I.R.B.19
REG–245562–96, 1996–41 I.R.B.8
Public Laws:
104–117, 1996–34 I.R.B.19
104–134, 1996–38 I.R.B.7
104–168, 1996–38 I.R.B.8
104–191, 1996–43 I.R.B.7
Railroad Retirement Quarterly Rate
1996–29 I.R.B.14
Revenue Procedures:
96–36, 1996–27 I.R.B.11
96–37, 1996–29 I.R.B.16
96–39, 1996–33 I.R.B.11
96–40, 1996–32 I.R.B.8
96–41, 1996–32 I.R.B.9
96–42, 1996–32 I.R.B.14
96–43, 1996–35 I.R.B.6
96–44, 1996–35 I.R.B.7
96–45, 1996–35 I.R.B.12
96–46, 1996–38 I.R.B.144
96–47, 1996–39 I.R.B.10
96–48, 1996–39 I.R.B.10
96–49, 1996–43 I.R.B.74
Revenue Rulings:
96–33, 1996–27 I.R.B.4
96–34, 1996–28 I.R.B.4
96–35, 1996–31 I.R.B.4
96–36, 1996–30 I.R.B.6
96–37, 1996–32 I.R.B.4
96–38, 1996–33 I.R.B.4
96–39, 1996–34 I.R.B.4
Revenue Rulings—Continued
96–42, 1996–35 I.R.B.4
96–43, 1996–36 I.R.B.4
96–44, 1996–38 I.R.B.4
96–45, 1996–39 I.R.B.5
96–46, 1996–39 I.R.B.5
96–47, 1996–40 I.R.B.7
96–48, 1996–40 I.R.B.4
96–49, 1996–41 I.R.B.4
96–50, 1996–42 I.R.B.4
96–51, 1996–43 I.R.B.5
Tax Conventions:
1996–28 I.R.B. 36
1996–36 I.R.B.6
1996–40 I.R.B.8
Treasury Decisions:
8673, 1996–27 I.R.B.4
8674, 1996–28 I.R.B.7
8675, 1996–29 I.R.B.5
8676, 1996–30 I.R.B.4
8677, 1996–30 I.R.B.7
8678, 1996–31 I.R.B.11
8679, 1996–31 I.R.B.4
8680, 1996–33 I.R.B.5
8681, 1996–37 I.R.B.17
8682, 1996–37 I.R.B.4
1
A cumulative list of all Revenue Rulings, Rev-
enue Procedures, Treasury Decisions, etc., pub-
lished in Internal Revenue Bulletins 1996–1
through 1996–26 will be found in Internal Rev-
enue Bulletin 1996–27, dated July 1, 1996.
21

Finding List of Current Action on
Previously Published Items
1
Bulletins 1996–27 through 1996–43
*Denotes entry since last publication
Revenue Procedures:
80–27
Modified by
96–40, 1996–32 I.R.B.8
87–32
Modified by
TD 8680, 1996–33 I.R.B.5
92–20
Modified by
TD 8680, 1996–33 I.R.B.5
95–16
Superseded by
96–48, 1996–39 I.R.B.10
95–29
Superseded by
96–36, 1996–27 I.R.B.11
95–29A
Superseded by
96–36, 1996–27 I.R.B.11
95–30
Superseded by
96–42, 1996–32 I.R.B.14
95–46
Superseded by
96–48, 1996–39 I.R.B.10
96–41
Modified by
Notice 96–49, 1996–41 I.R.B.6
1
A cumulative finding list for previously published
items mentioned in Internal Revenue Bulletins
1996–1 through 1996–26 will be found in Internal
Revenue Bulletin 1996–27, dated July 1, 1996.
22