Internal Revenue Bulletin 1996-17 (PDF rendition): IRS Notices

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.

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Bulletin No. 1996–17
April 22, 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.
SPECIAL ANNOUNCEMENT
Announcement 96–32, page 18.
A public hearing will be held on May 22, 1996, on
proposed regulations to implement a provision of the
Tax Reform Act of 1984 permitting the reissuance of
mortgage credit certificates.
INCOME TAX
T.D. 8660, page 4.
Final regulations under section 1502 of the Code
disallow losses and exclude gain for certain dispositions
and other transactions involving stock of the common
parent of a consolidated group.
Notice 96–25, page 11.
Electricity produced from certain renewable resources;
calendar year 1996 inflation adjustment factor and
reference prices. This notice announces the calendar
year 1996 inflation adjustment factor and reference
prices for the renewable electricity production credit
under section 45 of the Code.
EMPLOYMENT TAXES
T.D. 8661, page 7.
IA–03–94, page 12.
Temporary and proposed regulations under section
6302 of the Code relate to Federal tax deposits by
electronic funds transfer. A public hearing on the
proposed regulations will be held on July 16, 1996.
ADMINISTRATIVE
Announcement 96–25, page 13.
Copies of proposed examination guidelines pertaining to
multiemployer plans are now available from the Service.
In addition, the Service is seeking public comments
about these guidelines before they are finalized in the
Internal Revenue Manual.
Announcement 96–26, page 13.
This announcement provides information to assist
taxpayers in requesting a refund of the excise tax
described in section 4972 of the Code for certain
nondeductible contributions that were retroactively
exempted from the section 4972 excise tax by the
Retirement Protection Act of 1994.
Announcement 96–27, page 16.
American Flag Defender, Inc., Berlin, MD, no longer
qualifies as an organization to which contributions are
deductible under section 170 of the Code.
Announcement 96–28, page 16.
T.D. 8635, 1996–3 I.R.B. 5, relating to nonbank
trustees with respect to the adequacy of net worth
requirements that must be satisfied in order to be or
remain an approved nonbank trustee, is corrected.
Announcement 96–29, page 17.
T.D. 8637, 1996–4 I.R.B. 29, providing final and
temporary rules on backup withholding, statement
mailing requirements, and due diligence, is corrected.
Announcement 96–30, page 17.
DL–1–95, 1996–6 I.R.B. 28, relating to the disclosure
of returns and return information in connection with the
procurement of property and services for tax admin-
istration purposes, is corrected.
Announcement 96–31, page 18.
EE–35–95, 1996–5 I.R.B. 19, relating to proposed
regulations that provide guidance on calculation of an
employee’s accrued benefit derived from the
employee’s contributions to a qualified defined pension
plan, is corrected.
Finding Lists begin on page 23.
Announcement of Disbarments and Suspensions begins on page 20.

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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.

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Introduction
The Internal Revenue Bulletin is the authoritative
instrument of the Commissioner of Internal Revenue for
announcing official rulings and procedures of the
Internal Revenue Service and for publishing Treasury
Decisions, Executive Orders, Tax Conventions, legisla-
tion, court decisions, and other items of general
interest. It is published weekly and may be obtained
from the Superintendent of Documents on a subscrip-
tion basis. Bulletin contents of a permanent nature are
consolidated semiannually 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.
Procedures relating solely to matters of internal
management are not published; however, statements of
internal practices and procedures that affect the rights
and duties of taxpayers are published.
Revenue rulings represent the conclusions of the
Service on the application of the law to the pivotal facts
stated in the revenue ruling. In those based on
positions taken in rulings to taxpayers or technical
advice to Service field offices, identifying details and
information of a confidential nature are deleted to
prevent unwarranted invasions of privacy and to comply
with statutory requirements.
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
considered, and Service personnel and others con-
cerned 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 Admin-
istrative Rulings are issued by the Department of the
Treasury’s Office of the Assistant Secretary
(Enforcement).
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 Bulletin Index-Digest System, a research and
reference service supplementing the Bulletin, may be
obtained from the Superintendent of Documents on a
subscription basis. It consists of four Services: Service
No. 1, Income Tax; Service No. 2, Estate and Gift
Taxes; Service No. 3, Employment Taxes; Service No.
4, Excise Taxes. Each Service consists of a basic
volume and a cumulative supplement that provides (1)
finding lists of items published in the Bulletin, (2)
digests of revenue rulings, revenue procedures, and
other published items, and (3) indexes of Public Laws,
Treasury Decisions, and Tax Conventions.
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.

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Part I. Rulings and Decisions Under the Internal Revenue Code of 1986
Section 1502.—Regulations
26 CFR 1.1502–13: Intercompany transactions.
T.D. 8660
DEPARTMENT OF THE TREASURY
Internal Revenue Service
26 CFR Part 1
Consolidated Groups—Intercompany
Transactions and Related Rules
AGENCY: Internal Revenue Service
(IRS), Treasury.
ACTION: Final regulations.
SUMMARY: This document contains
final regulations disallowing losses and
excluding gain for certain dispositions
and other transactions involving stock
of the common parent of a consolidated
group.
DATES: These regulations are effective
March 14, 1996.
For dates of applicability, see the
effective date provision of these
regulations.
FOR FURTHER INFORMATION
CONTACT: Victor Penico or Richard
Osborne of the Office of Assistant
Chief Counsel (Corporate), (202)
622-7750 or (202) 622-7770 (not toll-
free numbers).
SUPPLEMENTARY INFORMATION:
Paperwork Reduction Act
The collections of information con-
tained in these final regulations have
been reviewed and approved by the
Office of Management and Budget in
accordance with the Paperwork Reduc-
tion Act (44 U.S.C. 3507) under
control number 1545–1433. Responses
to these collections of information are
required to obtain a benefit, the avoid-
ance of a possible gain because of
basis adjustments relating to built-in
loss.
An agency may not conduct or
sponsor, and a person is not required to
respond to, a collection of information
unless the collection of information
displays a valid control number.
The estimated average annual burden
per respondent is 15 minutes.
Comments concerning the accuracy
of this burden estimate and suggestions
for reducing this burden should be sent
to the Internal Revenue Service, Attn:
IRS Reports Clearance Officer, T:FP,
Washington, DC 20224, and to the
Office of Management and Budget,
Attn: Desk Officer for the Department
of the Treasury, Office of Information
and Regulatory Affairs, Washington,
D.C. 20503.
Books or records relating to this
collection of information must be re-
tained as long as their contents may
become material in the administration
of any internal revenue law. Generally,
tax returns and tax return information
are confidential, as required by 26
U.S.C. 6103.
Background
On July 12, 1995, the IRS and
Treasury issued proposed and tempo-
rary regulations disallowing loss in-
curred by a member (M) of a consoli-
dated group with respect to the stock of
the common parent (P stock). The
regulations also eliminate gain in cer-
tain transactions by M with respect to
P stock. The regulations are effective
for transactions occurring on or after
July 12, 1995.
The IRS received comments on the
proposed regulations and held a public
hearing on December 11, 1995. After
consideration of the comments and the
statements made at the hearing, the IRS
and Treasury adopt the proposed reg-
ulations with revisions in this Treasury
decision. The significant comments and
changes are discussed below.
Explanation of provisions
Scope of the regulations
The proposed regulations disallow all
losses on P stock and eliminate gain in
specified circumstances. Some com-
mentators suggested that the regulations
should treat gain and loss more sym-
metrically. Some suggested the regula-
tions should achieve this goal by
eliminating gain in all circumstances.
Others suggested the regulations should
disallow loss only in ‘‘abusive’’
circumstances.
Eliminating gain in all circumstances
would effectively require complete sin-
gle entity treatment of P stock. Imple-
menting such a system would signifi-
cantly increase the complexity of the
consolidated return regulations. Notice
94–49 (1994–1 C.B. 358), included a
detailed discussion of issues relating to
the single entity treatment of P stock.
Limiting the loss disallowance rule
to ‘‘abusive situations’’ would allow
consolidated groups to rely on the
separate-entity treatment of stock to
claim losses and single-entity treatment
to avoid gains. For example, taxpayers
might plan to take advantage of sepa-
rate entity treatment by having M
purchase P stock. If the value of the
stock has gone down at a time when
the group wants to issue equity, M will
sell its P stock at a loss (and claim the
loss). If the value of the stock has gone
up, the group can take advantage of
single entity treatment by having P sell
the stock, and no gain would be
recognized under section 1032. The
same would hold true if instead P had
acquired M already owning P stock.
Commentators did not suggest any
generally applicable method of dis-
tinguishing between transactions in
which loss should be allowed and those
in which loss should not be allowed.
The IRS and Treasury have therefore
concluded that the final regulations
should retain the general approach of
the proposed regulations.
Built-in losses
Some commentators suggested that if
M joins the group at a time when it
holds P stock with a built-in loss the
loss should be allowed because it
accrued outside the group. The final
regulations do not allow this loss
because doing so without ensuring that
the built-in gain is taxed would allow
the same selectivity and inconsistencies
that the regulation is designed to
prevent. In addition, allowing the loss
would require tracing, which is incon-
sistent with the approaches to similar
issues in §§1.1502–20 and 1.1502–32.
Commentators further suggested that
interactions between the proposed reg-
ulations and §1.1502–32 could cause
the group to recognize an artificial gain
from the purchase of a corporation
owning depreciated P stock. If M joins
the group at a time when it holds P

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stock with a built-in loss and M
subsequently sells the stock, P will
have a downward basis adjustment in
its M stock because of the disallowed
loss. See §1.1502–32(b)(3)(iii)(A). The
commentators asserted that this basis
adjustment would be inappropriate if
the group has a cost basis in M stock
because the basis of M will reflect the
value of the P stock at the time of
acquisition (rather than M’s basis in the
P stock). To address this problem, the
final regulations allow the built-in loss
to be waived immediately before M
joins the group. The loss waiver is
modeled after a similar provision in
§1.1502–32(b)(4). The election, how-
ever, is limited to direct acquisitions of
a corporation holding P stock in a cost
basis transaction.
Gain relief
Commentators suggested that the
gain relief should be broadened. Some
suggested that the requirement that M
receive the P stock in a capital con-
tribution or section 351(a) transaction
be eliminated. Others suggested elimi-
nation of the requirement that M dis-
pose of the P stock immediately.
Commentators also suggested that the
gain relief should apply to options and
warrants in P stock, and not merely to
P stock.
The final regulations retain the re-
quirements for gain relief but extend
the relief to positions in P stock. Any
further expansion of the gain relief
would require additional limitations and
complexities.
For instance, if M were not required
to dispose of the P stock immediately,
the regulations would have to require
that M have no minority shareholders.
If M had minority shareholders, the
gain relief mechanism (treating cash as
contributed to M followed by a pur-
chase of the stock by M) would allow
P a full basis adjustment in M stock for
post-contribution appreciation rather
than a pro rata adjustment as required
by §1.1502–32 in the case of minority
shareholders. Amending the mechanism
to allow only pro rata adjustments (for
example, through a direct basis adjust-
ment rather than a cash transaction)
would create further complexities, such
as the interaction with §1.1502–20.
Expanding gain relief would require
further adjustments if M stock were
sold to another member of the group.
For example, if B purchases the stock
of M from another member, B’s basis
in M will reflect the value of any P
stock held by M. Thus, an increase to
B’s basis in the stock of M when M
disposes of P stock would be unwar-
ranted. Additional special rules would
be needed if M were permitted to
acquire P stock by purchase rather than
through a capital contribution. More-
over, the IRS and Treasury believe that
in many cases gain on P stock is
avoidable without further expansion of
the regulations. See, e.g., §1.1032–2(b)
(no gain or loss on M’s use of certain
P stock in triangular reorganizations).
Therefore, the final regulations retain
the requirements of the proposed reg-
ulations for gain relief.
In addition, commentators claimed
that the relief when M is newly formed
was unclear. The final regulations
clarify that M can be newly formed as
part of the plan to dispose of P stock.
Dealers in P stock
Some commentators suggested that if
a subsidiary is a dealer in P stock, it
should be allowed to recognize losses
from its dealing activity. They argued
that dealing in P stock increases the
liquidity of the stock and that the
proposed regulations would curtail this
activity by forcing the recognition of
gain but disallowing loss with respect
to P stock.
In response to these comments, the
final regulations include an exception
for dealers in P stock or positions in P
stock. Under the final regulations, a
dealer in P stock or positions recog-
nizes both gain and loss on shares of
the stock to the extent taken into
account because of section 475(a) (or
1256(a) in the case of dealer equity
options). To be eligible for this excep-
tion, M must regularly trade in P stock
(of the same class) in the ordinary
course of its business as a dealer. In
addition, the gain or loss on a share is
eligible only to the extent it is taken
into account under section 475(a) (or in
the case of dealer equity options,
section 1256(a) to the extent that it
would be taken into account under the
principles of section 475), and the basis
of the share of stock must not be
adjusted by reference to the basis of
any other property (for example, under
§1.302–2) or by reference to income,
gain, deduction or loss from other
property. For example, loss that is
suspended under section 475(b)(3) and
that is recognized under section 1001
as the result of a disposition of the
security is not eligible for the relief,
but loss taken into account under
section 475(a) immediately before a
taxpayer ceases to be the owner of the
security is eligible for relief. Finally,
relief is not available if either M or any
other member of the group has struc-
tured or engaged in any transaction
while a member (or in anticipation of
becoming a member) during the taxable
year or in any year within the preced-
ing five taxable years that is open for
assessment under section 6501 with a
principal purpose of avoiding gain or
creating loss on P stock subject to
section 475(a).
Positions in P stock
In response to comments, the final
regulations clarify that the scope of
loss disallowance is coextensive with
the scope of section 1032. For exam-
ple, cash-settled options are within the
scope of loss disallowance. See Rev.
Rul. 88–31 (1988–1 C.B. 302). No
inference is intended as to the extent to
which section 1032 and these regula-
tions apply to derivative positions in P
stock other than options.
One commentator argued that the
loss disallowance rule should not apply
to options in P stock because the
selectivity available for stock is not
present with respect to options. The
final regulations do not adopt this
approach. If M purchases an option to
acquire P stock and the option expires
when it is worthless, M has a loss. If
the option is in the money, M can
purchase the P stock and hold it
indefinitely. Thus, the group would
have the ability to recognize losses
while avoiding gains.
Effective dates
The final regulations apply to gain or
loss taken into account on or after July
12, 1995, and to transactions (such as a
member leaving the group) occurring
on or after July 12, 1995. Thus, the
regulations are intended to cover the
same gain, loss and transactions cov-
ered by the rules published in 1995–32
I.R.B. 47. If, however, a taxpayer takes
a gain or loss into account, or engages
in a transaction, on or after July 12,
1995, during a tax year ending prior to
December 31, 1995, the taxpayer may
treat the gain, loss or transaction under

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the rules of the temporary rules pub-
lished in 1995–32 I.R.B. 47 instead of
under the rules of the final regulations.
Special Analysis
It has been determined that this
Treasury decision is not a significant
regulatory action as defined in EO
12866. Therefore, a regulatory assess-
ment is not required. It is hereby
certified that these regulations do not
have a significant economic impact on
a substantial number of small entities.
This certification is based on the fact
that these regulations will primarily
affect affiliated groups of corporations
that have elected to file consolidated
returns, which tend to be larger busi-
nesses. The regulations do not signifi-
cantly alter the reporting or recordkeep-
ing duties of small entities. Therefore,
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, the notice of
proposed rulemaking preceding these
regulations was submitted to the Small
Business Administration for comment
on its impact on small business.
******
Adoption of Amendments to the
Regulations
Accordingly, 26 CFR part 1 is
amended as follows:
PART 1—INCOME TAXES
Paragraph 1. The authority citation
for part 1 is amended by revising the
entry for §1.1502–13 to read as
follows:
Authority: 26 U.S.C. 7805 ** *
Section 1.1502–13 also issued under
26 U.S.C. 1502. ** *
Par. 2. In §1.267(f)–1(k), the first
sentence is amended by removing the
reference ‘‘1.1502–13T(f)(6)’’ and
adding ‘‘1.1502–13(f)(6)’’ in its place.
Par. 3. Section 1.1502–13(f)(6) is
added to read as follows:
§1.1502–13 Intercompany
transactions.
******
(f) * * *
(6)Stock of common parent. In
addition to the general rules of this
section, this paragraph (f)(6) applies to
parent stock (P stock) and positions in
P stock held or entered into by another
member. For this purpose, P stock is
any stock of the common parent held
by another member or any stock of a
member (the issuer) that was the
common parent if the stock was held
by another member while the issuer
was the common parent.
(i)Loss stock—(A) Recognized loss.
Any loss recognized, directly or indi-
rectly, by a member with respect to P
stock is permanently disallowed and
does not reduce earnings and profits.
See §1.1502–32(b)(3)(iii)(A) for a cor-
responding reduction in the basis of the
member’s stock.
(B)Other cases. If a member, M,
owns P stock, the stock is subsequently
owned by a nonmember, and, imme-
diately before the stock is owned by
the nonmember, M’s basis in the share
exceeds its fair market value, then, to
the extent paragraph (f)(6)(i)(A) of this
section does not apply, M’s basis in the
share is reduced to the share’s fair
market value immediately before the
share is held by the nonmember. For
example, if M owns shares of P stock
with a $100x basis and M becomes a
nonmember at a time when the P
shares have a value of $60x, M’s basis
in the P shares is reduced to $60x
immediately before M becomes a non-
member. Similarly, if M contributes the
P stock to a nonmember in a transac-
tion subject to section 351, M’s basis
in the shares is reduced to $60x im-
mediately before the contribution. See
§1.1502–32(b)(3)(iii)(B) for a corre-
sponding reduction in the basis of M’s
stock.
(C)Waiver of built-in loss on P
stock—(1) In general. If a nonmember
that owns P stock with a basis in
excess of its fair market value becomes
a member of the P consolidated group
in a qualifying cost basis transaction,
the group may make an irrevocable
election to reduce the basis of the P
stock to its fair market value imme-
diately before the nonmember becomes
a member of the P group. If the non-
member was a member of another con-
solidated group immediately before
becoming a member of the P group, the
reduction in basis is treated as occur-
ring immediately after it ceases to be a
member of the prior group. A qualify-
ing cost basis transaction is the pur-
chase (i.e., a transaction in which basis
is determined under section 1012) by
members of the P consolidated group
(while they are members) in a 12–
month period of an amount of the
nonmember’s stock satisfying the re-
quirements of section 1504(a)(2).
(2)Election. The election described
in this paragraph (6)(i)(C) must be
made in a separate statement entitled
‘‘ELECTION TO REDUCE BASIS OF
P STOCK UNDER §1.1502–13(f)(6).’’
The statement must be filed with the P
consolidated group’s return for the year
in which the nonmember becomes a
member, and it must be signed by both
P and the nonmember. The statement
must identify the fair market value of,
and the amount of the basis reduction
in, the P stock.
(ii)Gain stock. If a member, M,
would otherwise recognize gain on a
qualified disposition of P stock, then
immediately before the qualified dis-
position, M is treated as purchasing the
P stock from P for fair market value
with cash contributed to M by P (or, if
necessary, through any intermediate
members). A disposition is a qualified
disposition only if—
(A)The member acquires the P
stock directly from the common parent
(P) through a contribution to capital or
a transaction qualifying under section
351(a) (or, if necessary, through a
series of such transactions involving
only members);
(B)Pursuant to a plan, the member
transfers the stock immediately to a
nonmember that is not related, within
the meaning of section 267(b) or
707(b), to any member of the group;
(C)No nonmember receives a sub-
stituted basis in the stock within the
meaning of section 7701(a)(42);
(D)The P stock is not exchanged
for P stock;
(E)P neither becomes nor ceases to
be the common parent as part of, or in
contemplation of, the disposition or
plan; and
(F)M is neither a nonmember that
becomes a member nor a member that
becomes a nonmember as part of, or in
contemplation of, the disposition or
plan.
(iii)Mark-to-market of P stock.
Paragraphs (f)(6)(i) and (ii) of this
section shall not apply to any gain or
loss from a share of P stock held by a
member, M, if—
(A)M regularly trades in P stock (of
the same class) with customers in the
ordinary course of its business as a
dealer;

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(B)The gain or loss on the share is
taken into account by M pursuant to
section 475(a);
(C)M’s basis in the share is not
adjusted by reference to the basis of
any other property or by reference to
income, gain, deduction, or loss from
other property; and
(D)Neither M nor any other mem-
ber of the group has structured or
engaged in any transaction while a
member (or in anticipation of becoming
a member), during the taxable year or
in any year within the preceding five
taxable years that is open for assess-
ment under section 6501, with a
principal purpose of avoiding gain or
creating loss on P stock subject to
section 475(a).
(iv)Options, warrants, and other
positions—(A) In general. This para-
graph (f)(6) applies with appropriate
adjustments to positions in P stock to
the extent that P’s gain or loss from an
equivalent position would not be recog-
nized under section 1032. Thus, if M
purchases an option to buy or sell P
stock and sells the option at a loss, the
loss is permanently disallowed under
paragraph (f)(6)(i)(A) of this section.
Similarly, if M is the grantor of such
an option and becomes a nonmember,
then the principles of paragraph
(f)(6)(i)(B) of this section apply to the
extent that M would recognize loss
from cash settlement of the option at
its fair market value immediately be-
fore M becomes a nonmember, and
proper adjustments must be made in the
amount of any gain or loss subse-
quently realized from the position by
M. If P grants M an option to acquire
P stock in a transaction meeting the
requirements of paragraph (f)(6)(ii) of
this section, M is treated as having
purchased the option from P for fair
market value with cash contributed to
M by P.
(B)Mark-to-market of positions in P
stock. For purposes of paragraph
(f)(6)(iii) of this section, gain or loss
with respect to a position taken into
account under section 1256(a) is treated
as taken into account under section
475(a) to the extent that the gain or
loss would be taken into account under
the principles of section 475.
(v)Effective date. This paragraph
(f)(6) applies to gain or loss taken into
account on or after July 12, 1995, and
to transactions occurring on or after
July 12, 1995. For example, if S sells P
stock to B at a loss prior to July 12,
1995, and B sells the P stock to a
nonmember after July 12, 1995, S’s
loss is disallowed because it is taken
into account after July 12, 1995. If a
taxpayer takes a gain or loss into
account or engages in a transaction on
or after July 12, 1995, during a tax
year ending prior to December 31,
1995, the taxpayer may treat the gain
or loss or the transaction under the
rules of §1.1502–13T(f)(6) (published
in 1995–32 I.R.B. 47), instead of under
the rules of this paragraph (f)(6).
******
Par. 5. In §1.1502–13(g)(2)(i)(B), the
last sentence is amended by removing
the language ‘‘paragraph (f)(4) of this
section and §1.1502–13T(f)(6)’’ and
adding ‘‘paragraphs (f)(4) and (6) of
this section.’’
Margaret Milner Richardson,
Commissioner of Internal Revenue.
Approved March 8, 1996.
Leslie Samuels,
Assistant Secretary of the Treasury
(Tax Policy).
(Filed by the Office of the Federal Register on
March 13, 1996, 8:45 a.m., and published in
the issue of the Federal Register for March 14,
1996, 61 F.R. 10447)
Section 6302.—Mode or Time of
Collection
26 CFR 1.6302–4T: Use of financial
institutions in connection with individual
income taxes (temporary).
T.D. 8661
DEPARTMENT OF THE TREASURY
Internal Revenue Service
26 CFR Parts 1 and 31
Federal Tax Deposits by Electronic
Funds Transfer
AGENCY: Internal Revenue Service
(IRS), Treasury.
ACTION: Temporary regulations.
SUMMARY: This document contains
temporary regulations relating to the
deposit of Federal taxes by electronic
funds transfer (EFT) under section
6302 of the Internal Revenue Code.
The document also includes temporary
regulations providing authority for the
voluntary payment of certain Federal
taxes by EFT. The regulations would
provide the public with additional
guidance needed to make deposits by
EFT and would affect certain taxpayers
not previously required to make de-
posits by EFT. The text of these
temporary regulations also serves as the
text of a cross-reference notice of
proposed rulemaking on this subject in
the Proposed Rules section of this issue
of the Federal Register.
EFFECTIVE DATE: March 21, 1996.
FOR FURTHER INFORMATION
CONTACT: Vincent G. Surabian, 202–
622–6232 (not a toll-free number).
SUPPLEMENTARY INFORMATION:
Background
On July 11, 1994, the IRS issued
Treasury Decision 8553 (59 FR 35414),
setting forth temporary regulations re-
lating to the deposit of Federal taxes by
EFT. Those temporary regulations ex-
plained which taxpayers must make
deposits by electronic funds transfer,
which taxes must be so deposited, and
when the deposits must commence. The
text of those temporary regulations also
served as the text of a cross-reference
notice of proposed rulemaking pub-
lished in the same issue of the Federal
Register at 59 FR 35418.
The IRS received many comment
letters in response to the publication of
those temporary regulations. In addi-
tion, a number of oral comments were
made at the public hearing held on
October 3, 1994. With limited excep-
tions, those comments will not be
addressed in this document, but instead
will be addressed in final regulations
that the IRS expects to publish in the
near future.
Under the temporary regulations cur-
rently in place, the requirement to
begin EFT deposits is based on the
taxpayer’s total deposits of the taxes
imposed by chapters 21 (FICA taxes),
22 (railroad retirement taxes) and 24
(income tax withheld at source) of the
Internal Revenue Code during certain
‘‘determination periods.’’ If the tax-
payer’s deposits of those taxes during a
determination period exceed a pre-
scribed dollar threshold, the taxpayer
must begin to deposit by EFT on and
after the applicable effective date pre-
scribed in the temporary regulations,
unless otherwise exempted.

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The amendments to the temporary
regulations set forth in this document
provide a special rule for any taxpayer
that does not make deposits of the
taxes imposed by chapters 21, 22, and
24, but that does make deposits of
other taxes required to be deposited
pursuant to regulations issued under
section 6302 (for instance, corporate
income taxes). If the taxpayer’s total
deposits for all other depository taxes
during a prescribed determination
period exceed a prescribed dollar
threshold, the taxpayer must begin
depositing by EFT on and after the
applicable effective date prescribed in
these amendments to the temporary
regulations, unless otherwise exempted.
(A taxpayer will become subject to the
EFT requirement for the January 1, 1998,
applicable effective date by exceeding
the threshold amount during either calen-
dar year 1995 or calendar year 1996.)
The phase-in schedule is as follows:
Threshold AmountDetermination PeriodApplicable Effective Date
$50 thousand1-1-95 to 12-31-95January 1, 1998
$50 thousand1-1-96 to 12-31-96January 1, 1998
$20 thousand1-1-97 to 12-31-97January 1, 1999
The current temporary regulations
provide that a taxpayer subject to the
EFT requirement must use EFT for all
deposits required to be made on and
after the applicable effective date. This
requirement may subject a taxpayer to
two different modes of deposit with
respect to the same return period. For
example, assume an employer is re-
quired to deposit by EFT beginning
with the January 1, 1997, applicable
effective date. The employer pays its
employees weekly and has a paydate
on December 31, 1996. The employ-
ment taxes incurred for that paydate
would be reportable on the fourth
quarter 1996 Form 941, but the due
date for the deposit of those taxes
would occur in early January 1997.
Under the current rule, all the deposits
relating to the fourth quarter 1996
Form 941 would be made by paper
coupon (FTD coupon) with the excep-
tion of the deposit for the December 31
payroll, which would be made by EFT.
For purposes of consistency, this rule is
being changed with respect to the
January 1, 1997, applicable effective
date and thereafter to provide that the
first deposit required to be made by
EFT is the first deposit with respect to
a deposit obligation incurred for a
return period beginning on or after the
applicable effective date. Thus, under
the revised rule, the deposit with
respect to the December 31 paydate in
the example would be made by FTD
coupon rather than by EFT.
The current temporary regulations
provide that a deposit by EFT is
deemed made (i) at the time a debit is
made (the amount is withdrawn from
the taxpayer’s account) if the Govern-
ment’s authorized financial agent debits
the taxpayer’s account; or (ii) in all
other cases, at the time the funds are
credited to the Treasury’s general ac-
count. Comments by the Federal Re-
serve Board, the Financial Management
Service, and IRS personnel recom-
mended a clarification of that provi-
sion. Based on those recommendations,
the current temporary regulations are
amended to provide that a deposit by
EFT is deemed made (i) at the time a
debit is made (the amount is withdrawn
from the taxpayer’s account and not
returned or reversed) if the Govern-
ment’s authorized agent originates a
debit entry which instructs the tax-
payer’s financial institution to debit the
taxpayer’s account for a Federal tax
payment; or (ii) in all other cases
(assuming the amount is not returned
or reversed), either at the time the
funds are paid into the Treasury’s
general account at the Federal Reserve
Bank of New York or at the time the
funds are invested under Treasury’s
Tax and Loan program (see 31 CFR
Part 203). Investment occurs when the
funds are credited by the Federal
Reserve Bank to the depositary institu-
tion’s note balance.
These temporary regulations also
define the term taxpayer. For purposes
of the EFT requirement, a taxpayer is
any person required to deposit federal
taxes, including not only individuals,
but also any trust, estate, partnership,
association, company or corporation.
This definition responds to numerous
inquiries following the issuance of the
current temporary regulations.
Sections 31.6302–1T(h)(2) (describ-
ing the taxes required to be deposited
by EFT) and 31.6302–1T(h)(8) (de-
scribing when a deposit of tax by EFT
is deemed to be a payment of tax) have
been revised solely for purposes of
clarity. No substantive change is being
made to either of the provisions.
These temporary regulations allow
individual taxpayers to make voluntary
payments of income tax by EFT, even
though individual income tax is not
required to be deposited with a govern-
ment depositary. The voluntary EFT
payments are to be made in accordance
with instructions provided in proce-
dures to be prescribed by the Commis-
sioner at a future date.
Special Analyses
It has been determined that this
Treasury decision is not a significant
regulatory action as defined in EO
12866. Therefore, a regulatory assess-
ment is not required. It also has been
determined that section 553(b) of the
Administrative Procedure Act (5 U.S.C.
chapter 5) and the Regulatory Flex-
ibility Act (5 U.S.C. chapter 6) do not
apply to these rules and, therefore, a
Regulatory Flexibility Analysis is not
required. Pursuant to section 7805(f) of
the Internal Revenue Code, a copy of
these temporary regulations will be
submitted to the Chief Counsel for
Advocacy of the Small Business Ad-
ministration for comment on their
impact on small business.
Drafting Information
The principal author of these regula-
tions is Vincent G. Surabian, Office of
the Assistant Chief Counsel (Income
Tax & Accounting), IRS. However,
other personnel from the IRS and
Treasury Department participated in
their development.
******

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Adoption of Amendments to the
Regulations.
Accordingly, 26 CFR parts 1 and 31
are amended as follows:
PART 1—INCOME TAXES
Paragraph 1. The authority citation
for part 1 is amended by adding an
entry in numerical order to read as
follows:
Authority: 26 U.S.C. 7805 ** *
Section 1.6302–4T also issued under
26 U.S.C. 6302(a) and (c). ** *
Par. 2. Section 1.6302–4T is added
to read as follows:
§1.6302–4T Use of financial
institutions in connection with
individual income taxes (temporary).
Voluntary payments by electronic
funds transfer. An individual may
voluntarily remit by electronic funds
transfer all payments of tax imposed by
subtitle A of the Code, including any
payments of estimated tax. Such pay-
ments must be made in accordance
with procedures to be prescribed by the
Commissioner.
PART 31—EMPLOYMENT TAXES
AND COLLECTION OF INCOME
TAX AT SOURCE
Par. 3. The authority citation for part
31 continues to read in part as follows:
Authority: 26 U.S.C. 7805 ** *
Par. 4. Section 31.6302–1T is
amended as follows:
1.Paragraph (h)(1)(ii)(A) is redesig-
nated as paragraph (h)(1)(ii)(A)(1); the
first sentence in newly designated para-
graph (h)(1)(ii)(A)(1) is removed, and
three new sentences are added in its
place; and, in the last sentence of the
newly designated paragraph, the text
preceding the table is revised.
2. Paragraph (h)(1)(ii)(A)(2) is
added.
3.Paragraphs (h)(2), (h)(3), (h)(7)
and (h)(8) are revised.
The additions and revisions read as
follows:
§31.6302–1T Federal tax deposit
rules for withheld income taxes and
taxes under the Federal Insurance
Contributions Act (FICA)—deposits
required to be made by electronic
funds transfer after December 31,
1994 (temporary).
******
(h) * ** (1) ** *
(ii)Periods after December 31,
1994. (A)(1) Taxpayers whose aggre-
gate deposits of the taxes imposed by
Chapters 21 (Federal Insurance Contri-
butions Act), 22 (Railroad Retirement
Tax Act), and 24 (Collection of Income
Tax at Source on Wages) of the
Internal Revenue Code during a 12–
month determination period exceed the
applicable threshold amount are re-
quired to deposit all depository taxes
described in paragraph (h)(2) of this
section by electronic funds transfer (as
defined in paragraph (h)(3) of this
section) unless exempted under para-
graph (h)(4) of this section. If the
applicable effective date is January 1,
1995, or January 1, 1996, the require-
ment to deposit by electronic funds
transfer applies to all deposits required
to be made on and after the applicable
effective date. If the applicable effec-
tive date is January 1, 1997, or there-
after, the requirement to deposit by
electronic funds transfer applies to all
deposits required to be made with
respect to deposit obligations incurred
for return periods beginning on and
after the applicable effective date.
* ** The threshold amounts, deter-
mination periods and applicable effec-
tive dates for purposes of this para-
graph (h)(1)(ii)(A)(1) are as follows:
* * *
(2) Unless exempted under para-
graph (h)(4) of this section, a taxpayer
that does not deposit any of the taxes
imposed by chapters 21, 22, and 24
during the applicable determination
periods set forth in paragraph (h)(1)(ii)-
(A)(1) of this section, but that does
make deposits of other depository taxes
(as described in paragraph (h)(2) of this
section), is nevertheless subject to the
requirement to deposit by electronic
funds transfer if the taxpayer’s aggre-
gate deposits of all depository taxes
exceed the threshold amount set forth
in this paragraph (h)(1)(ii)(A)(2) during
an applicable 12–month determination
period. This requirement to deposit by
electronic funds transfer applies to all
depository taxes due with respect to
deposit obligations incurred on and
after the applicable effective date. The
threshold amount, determination peri-
ods, and applicable effective dates for
purposes of this paragraph (h)(1)(ii)-
(A)(2) are as follows:
Threshold AmountDetermination PeriodApplicable Effective Date
$50 thousand1-1-95 to 12-31-95January 1, 1998
$50 thousand1-1-96 to 12-31-96January 1, 1998
$20 thousand1-1-97 to 12-31-97January 1, 1999
******

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(2)Taxes required to be deposited
by electronic funds transfer. The re-
quirement to deposit by electronic
f u n d s t r a n s f e r u n d e r p a r a g r a p h
(h)(1)(ii) of this section applies to all
the taxes required to be deposited
under §§1.6302–1, 1.6302–2, and
1.6302–3 of this chapter; §§31.6302–1,
31.6302–2, 31.6302–3, 31.6302–4, and
31.6302(c)–3; and §40.6302(c)–1 of
this chapter.
(3)Definitions—(i) Electronic funds
transfer. An electronic funds transfer is
any transfer of depository taxes made in
accordance with Revenue Procedure 94–
48 (1994–2 C.B. 694), (see §601.601-
(d)(2) of this chapter), or in accordance
with procedures subsequently prescribed
by the Commissioner.
(ii)Taxpayer. For purposes of this
section, a taxpayer is any person
required to deposit federal taxes, in-
cluding not only individuals, but also
any trust, estate, partnership, associa-
tion, company or corporation.
******
(7)Time deemed deposited. A de-
posit of taxes by electronic funds
transfer will be deemed made—
(i)At the time a debit is made (the
amount is withdrawn from the tax-
payer’s account and not returned or
reversed) if the Government’s author-
ized agent originates a debit entry
which instructs the taxpayer’s financial
institution to debit the taxpayer’s ac-
count for a Federal tax payment; or
(ii)In all other cases (assuming the
amount is not returned or reversed),
either at the time that the funds are
paid into the Treasury’s general ac-
count at the Federal Reserve Bank of
New York, or at the time that the funds
are invested under Treasury’s Tax and
Loan program (see 31 CFR Part 203).
Investment occurs when the funds are
credited by the Federal Reserve Bank
to the depositary institution’s note
balance.
(8)Time deemed paid. In general, an
amount deposited under this paragraph
(h) will be considered to be a payment
of tax on the last day prescribed for
filing the applicable return for the
return period (determined without re-
gard to any extension of time for filing
the return) or, if later, at the time
deemed deposited under paragraph
(h)(7) of this section. In the case of the
taxes imposed by chapters 21 and 24 of
the Internal Revenue Code, solely for
purposes of section 6511 and the
regulations thereunder (relating to the
period of limitation on credit or re-
fund), if an amount is deposited prior
to April 15th of the calendar year
immediately succeeding the calendar
year that includes the period for which
the amount was deposited, the amount
will be considered paid on April 15th.
Margaret Milner Richardson,
Commissioner of Internal Revenue.
Approved December 22, 1995.
Leslie Samuels,
Assistant Secretary of the Treasury.
(Filed by the Office of the Federal Register on
March 20, 1996, 8:45 a.m., and published in
the issue of the Federal Register for March 21,
1996, 61 F.R. 11548)

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Part III. Administrative, Procedural, and Miscellaneous
Renewable Electricity Production
Credit, Publication of Inflation
Adjustment Factor and Reference
Prices for Calendar Year 1996
Notice 96–25
This notice publishes the inflation
adjustment factor and reference prices
for calendar year 1996 for the renew-
able electricity production credit under
§ 45(a) of the Internal Revenue Code.
The 1996 inflation adjustment factor
and reference prices are used in deter-
mining the availability of the credit.
The 1996 inflation adjustment factor
and reference prices apply to calendar
year 1996 sales of kilowatt-hours of
electricity produced in the United
States or a possession thereof from
qualified energy resources.
BACKGROUND
Section 45(a) provides that the re-
newable electricity production credit
for any tax year is an amount equal to
the product of 1.5 cents multiplied by
t h e k i l o w a t t - h o u r s o f s p e c i f i e d
electricity produced by the taxpayer
and sold to an unrelated person during
the tax year. This electricity must be
produced from qualified energy re-
sources and at a qualified facility
during the 10-year period beginning on
the date the facility was originally
placed in service.
Section 45(b)(1) provides that the
amount of the credit determined under
§ 45(a) is reduced by an amount that
bears the same ratio to the amount of
the credit as (A) the amount by which
the reference price for the calendar
year in which the sale occurs exceeds 8
cents bears to (B) 3 cents. Under
§ 45(b)(2), the 1.5 cents in §45(a) and
the 8 cents in §45(b)(1) are each
adjusted by multiplying the amount by
the inflation adjustment factor for the
calendar year in which the sale occurs.
Section 45(c)(1) defines qualified
energy resources as wind and closed-
loop biomass. Section 45(c)(3) defines
a qualified facility as any facility
owned by the taxpayer that originally is
placed in service after December 31,
1993 (December 31, 1992, in the case
of a facility using closed-loop biomass
to produce electricity), and before July
1, 1999.
Section 45(d)(2)(A) requires that the
Secretary not later than April 1 of each
calendar year determine and publish in
the Federal Register the inflation ad-
justment factor and the reference prices
for the calendar year. As required by
§ 45(d)(2)(A), the inflation adjustment
factor and the reference prices for the
1996 calendar year were published in
the Federal Register on March 29,
1996, (61 Fed. Reg. 14208).
Section 45(d)(2)(B) defines the infla-
tion adjustment factor for a calendar
year as the fraction the numerator of
which is the GDP implicit price defla-
tor for the preceding calendar year and
the denominator of which is the GDP
implicit price deflator for the calendar
year 1992. The term ‘‘GDP implicit
price deflator’’ means the most recent
revision of the implicit price deflator
for the gross domestic product as
computed and published by the Depart-
ment of Commerce before March 15 of
the calendar year.
Section 45(d)(2)(C) provides that the
reference price is the Secretary’s deter-
mination of the annual average contract
price per kilowatt hour of electricity
generated from the same qualified
energy resource and sold in the pre-
vious year in the United States. Only
contracts entered into after December
31, 1989, are taken into account.
INFLATION ADJUSTMENT
FACTOR AND REFERENCE
PRICES
The inflation adjustment factor for
calendar year 1996 is 1.0750. The
reference prices for calendar year 1996
are 5.5 cents per kilowatt-hour for
facilities producing electricity from
wind energy resources and 0 cents per
kilowatt-hour for facilities producing
electricity from closed-loop biomass
energy resources. The reference price
for electricity produced from closed-
loop biomass, as defined in §45(c)(2),
is based on a determination under
§ 45(d)(2)(C) that in calendar year
1995 there were no sales of electricity
generated from closed-loop biomass
energy resources under contracts en-
tered into after December 31, 1989.
PHASE-OUT CALCULATION
Because the 1996 reference prices
for electricity produced from wind and
closed-loop biomass energy resources
do not exceed 8 cents per kilowatt hour
multiplied by the inflation adjustment
factor, the phaseout of the credit
provided in §45(b)(1) does not apply
to electricity produced from wind or
closed-loop biomass energy resources
sold during calendar year 1996.
CREDIT AMOUNT
As required by §45(b)(2), the 1.5¢
amount in §45(a)(1) is adjusted by
multiplying such amount by the infla-
tion adjustment factor for the calendar
year in which the sale occurs. If any
amount as increased under the preced-
ing sentence is not a multiple of 0.1¢,
such amount is rounded to the nearest
multiple of 0.1¢. Under the calculation
required by §45(b)(2), the renewable
electricity production credit for calen-
dar year 1996 is 1.6¢ per kilowatt hour
on the sale of electricity produced from
closed-loop biomass and wind energy
resources.
DRAFTING INFORMATION
CONTACT
The principal author of this notice is
David A. Selig of the Office of
Assistant Chief Counsel (Passthroughs
and Special Industries). For further
information regarding this notice con-
tact Mr. Selig on (202) 622-3040 (not a
toll-free call).

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121996 –26 I.R.B.
Part IV. Items of General Interest
Notice of Proposed Rulemaking and
Notice of Public Hearing
Federal Tax Deposits by Electronic
Funds Transfer
IA–03–94
AGENCY: Internal Revenue Service
(IRS), Treasury.
ACTION: Notice of proposed rulemak-
ing by cross-reference to temporary
regulations and notice of public
hearing.
SUMMARY: In the Rules and Regula-
tions section of this issue of the
Federal Register, the IRS is issuing
temporary regulations relating to the
deposit of Federal taxes by electronic
funds transfer under section 6302 of
the Internal Revenue Code. The text of
the temporary regulations also serves as
the comment document for this notice
of proposed rulemaking. This document
also provides notice of a public hearing
on these proposed regulations.
DATES: Written comments and out-
lines of topics to be discussed at the
public hearing scheduled for July 16,
1996, beginning at 10 a.m., must be
received by June 19, 1996.
ADDRESSES: Send submissions to:
CC:DOM:CORP:R (IA–03–94), Room
5228, Internal Revenue Service, POB
7604, Ben Franklin Station, Wash-
ington, DC 20044. In the alternative,
submissions may be hand delivered
between the hours of 8 a.m. and 5 p.m.
to: CC:DOM:CORP:R (IA–03–94),
Courier’s Desk, Internal Revenue Serv-
ice, 1111 Constitution Avenue, NW.,
Washington, DC. The public hearing
will be held in the Commissioner’s
Conference Room, room 3313, 1111
Constitution Avenue, NW., Wash-
ington, DC.
FOR FURTHER INFORMATION
CONTACT: Concerning the regula-
tions, Vincent G. Surabian, 202-
622-6232 (not a toll-free number).
Concerning submissions and the public
hearing, Michael Slaughter, 202-
622-7190 (not a toll-free number).
SUPPLEMENTARY INFORMATION:
Background
The temporary regulations published
in the Rules and Regulations section of
this issue of the Federal Register
contain amendments to the Regulations
on Employment Taxes and Collection
of Income Tax at Source (26 CFR part
31) and an addition to the Income Tax
Regulations (26 CFR part 1). These
amendments relate to the deposit of
Federal taxes by electronic funds trans-
fer. The text of those temporary regula-
tions also serves as the text of these
proposed regulations. The preamble to
the temporary regulations explains
these proposed regulations.
Special Analyses
It has been determined that this
notice of proposed rulemaking is not a
significant regulatory 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) and the Regulatory
Flexibility Act (5 U.S.C. chapter 6) do
not apply to these rules and, therefore,
a Regulatory Flexibility Analysis is not
required. Pursuant to section 7805(f) of
the Internal Revenue Code, a copy of
this notice of proposed rulemaking will
be submitted to the Chief Counsel for
Advocacy of the Small Business Ad-
ministration for comment on its impact
on small business.
Comments and Public Hearing
Before these proposed regulations
are adopted as final regulations, consid-
eration will be given to any written
comments (a signed original and eight
(8) copies) that are timely submitted to
the IRS. All comments will be avail-
able for public inspection and copying.
A public hearing has been scheduled
for July 16, 1996, beginning at 10 a.m.
in the Commissioner’s Conference
Room, room 3313, Internal Revenue
Building. Because of access restric-
tions, visitors will not be admitted
beyond the 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 and an outline of the
topics to be discussed and the time to
be devoted to each topic (signed
original and eight (8) copies) by June
19, 1996.
A period of 10 minutes will be
allotted to each person for making
comments.
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 these regula-
tions is Vincent G. Surabian, Office of
the Assistant Chief Counsel (Income
Tax & Accounting), IRS. However,
other personnel from the IRS and
Treasury Department participated in
their development.
List of Subjects
26 CFR Part 1
Income taxes, Reporting and rec-
ordkeeping requirements.
26 CFR Part 31
Employment taxes, Income taxes,
Penalties, Pensions, Railroad retire-
ment, Reporting and recordkeeping re-
quirements, Social security, Unemploy-
ment compensation.
Proposed Amendments to the
Regulations
Accordingly, 26 CFR parts 1 and 31
are proposed to be amended as follows:
PART 1—INCOME TAXES
Paragraph 1. The authority citation
for part 1 is amended by adding the
following entry to read as follows:
Authority: 26 U.S.C. 7805 ** *
Section 1.6302–4 also issued under
26 U.S.C. 6302(a) and (c). ** *
Par. 2. Section 1.6302–4 is added to
read as follows:
§1.6302–4 Use of financial
institutions in connection with
individual income taxes.
[The text of this proposed section is

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the same as the text of §1.6302–4T
published elsewhere in this issue of the
Federal Register].
PART 31—EMPLOYMENT TAXES
AND COLLECTION OF INCOME
TAX AT SOURCE
Par. 3. The authority citation for part
31 continues to read in part as follows:
Authority: 26 U.S.C. 7805 ** *
Par. 4. Proposed §31.6302–1(h), pub-
lished July 11, 1994, (59 FR 35418) by
cross-referencing temporary regulations
published the same day (59 FR 35414)
is amended as follows:
1.Paragraph (h)(1)(ii)(A) is redesig-
nated as paragraph (h)(1)(ii)(A)(1); the
first sentence in the paragraph is
removed, and three new sentences are
added in its place; and, in the last
sentence of the newly designated para-
graph, the text preceding the table is
revised.
2. Paragraph (h)(1)(ii)(A)(2) is
added.
3.Paragraphs (h)(2), (h)(3), (h)(7)
and (h)(8) are revised.
The revised and added provisions
read as follows:
§31.6302–1 Federal tax deposit rules
for withheld income taxes and taxes
under the Federal Insurance
Contributions Act (FICA) attributable
to payments made after December
31, 1992.
[The text of paragraphs (h)(1)(ii)-
(A)(1), (h)(1)(ii)(A)(2), (h)(2), (h)(3),
(h)(7) and (h)(8) is the same as the text
of those paragraphs in §31.6302–1T
published elsewhere in this issue of the
Federal Register.]
Margaret Milner Richardson,
Commissioner of Internal Revenue.
(Filed by the Office of the Federal Register on
March 20, 1996, 8:45 a.m., and published in
the issue of the Federal Register for March 21,
1996, 61 F.R. 11595)
Employee Plans; Examination
Guidelines
Announcement 96–25
The Internal Revenue Service has
d e v e l o p e d p r o p o s e d e x a m i n a t i o n
guidelines for employee plans ex-
aminers to use when examining multi-
employer plans. The guidelines provide
technical background and guidance as
to issues that should be considered
during an examination. The guidelines
are not intended to be all inclusive, and
may be modified based on specific
issues encountered by the examiners
during an examination.
A s w i t h e a r l i e r e x a m i n a t i o n
guidelines, the Service is seeking pub-
lic comments with respect to the
proposed examination guidelines per-
taining to multiemployer plans before
those guidelines are finalized in the
Internal Revenue Manual.
A copy of the proposed examination
guidelines pertaining to multiemployer
plans may be obtained by submitting a
written request to the Internal Revenue
Service, Attention: Assistant Commis-
sioner (Employee Plans and Exempt
Organizations), CP:E:EP:FC, 1111
Constitution Avenue, N.W., Wash-
ington, DC 20224. Written comments
on the guidelines pertaining to multi-
employer plans may be submitted on or
before July 22, 1996, to the Internal
Revenue Service, Attention: Assistant
Commissioner (Employee Plans and
Exempt Organizations), CP:E:EP:P:1,
1111 Constitution Avenue, N.W.,
Washington, DC 20224.
Refund Requests under Section
4972(c)(6)
Announcement 96–26
This announcement provides infor-
mation to assist taxpayers in requesting
refunds of the excise tax under §4972
of the Internal Revenue Code for
nondeductible contributions that were
retroactively exempted from the §4972
excise tax by the Retirement Protection
Act of 1994 (RPA ’94).
Section 4972 imposes an excise tax
on employers (other than governmental
and tax exempt employers) equal to 10
percent of the nondeductible contribu-
tions made to a qualified employer
plan. Section 4972(c)(6)(B), added by
§ 755 of RPA ’94, provides a limited
exception to this excise tax. Under
§ 4972(c)(6)(B), the §4972 excise tax
does not apply to contributions to
defined contribution plans that are
nondeductible solely because of the
§ 404(a)(7) combined limit on deduc-
t i o n s f o r c o n t r i b u t i o n s . T h e
§ 4972(c)(6)(B) exception to the
§ 4972 excise tax applies only if the
defined benefit plans of the employer
taken into account under §404(a)(7)
have more than 100 participants under
§ 404(a)(1)(D), and only to the extent
that nondeductible contributions to de-
fined contribution plans do not exceed
6 percent of compensation paid or
accrued to beneficiaries under the
defined contribution plans.
Section 4972(c)(6)(B) is effective for
taxable years ending on or after De-
cember 31, 1992. For some of the
taxable years to which §4972(c)(6)(B)
applies, the §4972 excise tax was due
before the enactment of §4972(c)(6)-
( B ) i n R P A ’ 9 4 . A c c o r d i n g l y ,
employers that paid the §4972 excise
tax for taxable years ending on or after
December 31, 1992, may be entitled to
a refund.
In order to request a refund of the
§ 4972 excise tax on account of
§ 4972(c)(6)(B) for an employer’s tax-
able year, the employer must submit an
amended Form 5330, Return of Excise
Taxes Related to Employee Benefit
Plans, for that taxable year. The words
‘‘§ 4972(c)(6)(B) Refund Request’’
should be printed clearly and high-
lighted on the top right corner of the
Form 5330. Under §301.6402–2(b)(1)
of the Procedure and Administration
Regulations, a claim for refund must
set forth in detail each ground upon
which a refund is claimed and facts
sufficient to apprise the Commissioner
of the exact basis thereof. The Service
has identified the information listed on
the attached sample worksheet (Exhibit
1) as needed to provide sufficient facts
to enable the Service to evaluate
§ 4972(c)(6)(B) claims. This informa-
tion generally relates to contributions,
limits on deductions and participant
compensation for all relevant qualified
employer plans. The §4972 excise tax
for the taxable year, calculated consist-
ently with the computations shown in
the sample worksheet, should be en-
tered in line 12j of Form 5330, and the
remainder of the form should be com-
pleted consistently with this calcula-
tion. Employers must also include
copies of all previously filed Forms
5330 that reflect §4972 tax liability for
any of the taxable years affected, as
well as any additional information
r e l e v a n t u n d e r t h e p a r t i c u l a r
circumstances.
The Service is issuing a field direc-
tive to the affected Internal Revenue
Service Centers, to assist those Service
Centers in processing refund requests
under §4972(c)(6)(B).

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Exhibit 1
Worksheet for Computation of Corrected Section 4972 Excise Tax
General Information
Employer’s taxable year ending (month/day/year):
EIN:
List of Plans subject to 404(a)(7)
Name of defined benefit plan(s):Plan No.
Name of money purchase pension plan(s):Plan No.
Name of profit-sharing and stock bonus plan(s):Plan No.
Contributions to defined benefit and money purchase pension plans that are deductible (before giving effect to section
404(a)(7))
1.Contributions paid for year:
(a)to defined benefit plans listed above
(b)to money purchase plans listed above
2.Nondeductible carryover from prior years
(carryover under section 404(a)(1)(E))
3.Deductible limit for year (taking into account section 404(a)(1)(D), but not section
404(a)(7))
4.Amount deductible before giving effect to section 404(a)(7) (lesser of the sum of
lines (1)(a), (1)(b) and (2), or line (3))
Contributions to profit-sharing and stock bonus plans listed above that are deductible (before giving effect to section
404(a)(7))
5.Contributions paid for year to profit-sharing and stock bonus plans listed above
6.Nondeductible carryover from prior years
(carryover under section 404(a)(3)(A)(ii))
7.Deductible limit for year (before giving effect to section 404(a)(7))
8.Amount deductible before giving effect to section 404(a)(7) (lesser of the sum of
lines (5) and (6), or line (7))

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Determination of Section 404(a)(7) Deductible Limit
9.Total compensation under section 404(a)(7)(A)(i)
10.25% of line 9
11.Amount of contributions made to defined benefit plans necessary to satisfy the
minimum funding standard of section 412 (treating the minimum required contri-
bution as not less than the unfunded current liability, for any plan to which sec-
tion 404(a)(1)(D) applies)
12.Section 404(a)(7) limit (greater of line 10 or line 11)
Determination of deductible contribution amount
13.Deductible contributions without regard to section 404(a)(7) (line 4 plus line 8)
14.Deductible contributions under section 404(a)(7) without section 404(a)(7)(B) car-
ryover (lesser of line 12 or line 13)
15.Contributions carried over from prior years under section 404(a)(7)(B), consisting
of contributions:
(a)Attributable to contributions to defined benefit plans and/or defined contribu-
tion plans that were not exempted from section 4972 tax for the taxable year
in which contributed
(b)Attributable to contributions to defined contribution plans that were exempted
from the section 4972 tax for the taxable year in which contributed
(c)Total (sum of (a) and (b))
Note: Line 15(c) is not necessarily the same as the sum of lines 2 and 6.
16.Deductible section 404(a)(7)(B) carryover (lesser of line 15(c), or line 10 minus
line 14, but not less than zero)
17.Total deductible contribution amount (line 14 plus line 16)
Determination of nondeductible contributions exempt from section 4972 tax
18.Nondeductible contributions for the year exempted from section 4972 tax (least
of: (1) line 13 minus line 14; (2) line 1(b) plus line 5; or (3) 6% of compensa-
tion of participants in the employer’s defined contribution plans)
19.Deductible portion of nondeductible carryover contributions exempt from section
4972 tax for the taxable year in which contributed (lesser of (1) line 16 minus
line 15(a), with the result not less than zero, and (2) line 15(b))
20.Net section 404(a)(7) nondeductible carryover contributions exempt from section
4972 tax (line 15(b) minus line 19)
21.Total nondeductible contributions and carryovers exempted from the section 4972
tax for the current year (line 18 plus line 20)
Determination of corrected section 4972 excise tax
22.Contributions subject to section 4972 tax (sum of all contributions made for the
year or carried over from previous years under section 404(a)(1)(E),
404(a)(3)(A)(ii), or 404(a)(7)(B), minus the sum of lines 17 and 21)
23.Section 4972 excise tax (10% times line 22)

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161996 –26 I.R.B.
Deletion from Cumulative List of
Organizations Contributions to Which
Are Deductible Under Section 170 of
the Code
Announcement 96–27
The name of an organization that no
longer qualifies as an organization
described in section 170(c)(2) of the
Internal Revenue Code of 1986 is listed
below.
Generally, the Service will not dis-
allow deductions for contributions
made to a listed organization on or
before the date of announcement in the
Internal Revenue Bulletin that an orga-
nization no longer qualifies. However,
the Service is not precluded from
disallowing a deduction for any contri-
butions made after an organization
ceases to qualify under section
170(c)(2) if the organization has not
timely filed a suit for declaratory
judgment under section 7428 and if the
contributor (1) had knowledge of the
revocation of the ruling or determina-
tion letter, (2) was aware that such
revocation was imminent, or (3) was in
part responsible for or was aware of
the activities or omissions of the
organization that brought about this
revocation.
If on the other hand a suit for
declaratory judgment has been timely
filed, contributions from individuals
and organizations described in section
170(c)(2) that are otherwise allowable
will continue to be deductible. Protec-
tion under section 7428(c) would begin
on April 22, 1996, and would end on
the date the court first determines that
the organization is not described in
section 170(c)(2) as more particularly
set forth in section 7428(c)(1). For
individual contributors, the maximum
deduction protected is $1,000, with a
husband and wife treated as one
contributor. This benefit is not ex-
tended to any individual who was
responsible, in whole or in part, for the
acts or omissions of the organization
that were the basis for revocation.
American Flag Defender, Inc.
Berlin, MD
Nonbank Trustee Net Worth
Requirements; Correction
Announcement 96–28
AGENCY: Internal Revenue Service,
Treasury.
A C T I O N : C o r r e c t i o n t o f i n a l
regulations.
SUMMARY: This document contains
corrections to final regulations (TD
8635 [1996–3 I.R.B. 5]) which were
published in the Federal Register on
Wednesday, December 20, 1995 (60
FR 65547), and relates to nonbank
trustees with respect to the adequacy of
net worth requirements that must be
satisfied in order to be or remain an
approved nonbank trustee.
EFFECTIVE DATE: December 20,
1995.
FOR FURTHER INFORMATION
CONTACT: Marjorie Hoffman, (202)
622-6030 (not a toll-free number).
SUPPLEMENTARY INFORMATION:
Background
The final regulations that are the
subject of these corrections are under
sections 401 and 408 of the Internal
Revenue Code.
Need for Correction
As published, the final regulations
(TD 8635) contain errors that are mis-
leading and in need of clarification.
Correction of Publication
Accordingly, the publication of the
final regulations (TD 8635), which was
the subject of FR Doc. 95–30684, is
corrected as follows:
§ 1.401(f)–1 [Corrected]
1.On page 65549, column 1, amen-
datory instruction 2. under ‘‘Par. 4.’’,
line 1 is corrected by adding a closed
quotation mark following the number
‘‘401(d)(1)’’.
§ 1.408–2 [Corrected]
2.On page 65549, column 1, amen-
datory instruction 8. under ‘‘Par. 5.’’,
line 3, the language ‘‘the language
’(n)(3) to (n)(7)’ and’’ is corrected to
read ‘‘the language ’(n)(3) to (7)’
and’’.
3.On page 65549, column 1, amen-
datory instruction 9. under ‘‘Par. 5.’’,
line 5, the language ‘‘adding ’the
address prescribed by the’ is corrected
to read ’’adding ’address prescribed by
the’; and in the last two lines, the
language ‘‘(e)(6)(9)(iv), and in the first
sentence of newly designated (e)(6)-
( v ) ( B ) . ’ ’ i s c o r r e c t e d t o r e a d
‘‘(e)(5)(iv), and in the first sentence of
newly designated (e)(7)(v)(B).’’
4.On page 65549, column 2, the
amendatory instruction 17. under ‘‘Par.
5.’’ is corrected to read as follows:
17.Removing the language ‘‘sub-
paragraph, subdivision (n)(3)(v)’’ and
adding ‘‘paragraph (e)(5), and para-
graph (e)(2)(v)’’ in its place, and
removing the language ‘‘subparagraph
(n)(8)’’ and adding ‘‘paragraph (e)(7)’’
in its place, in newly designated
paragraph (e)(5)(viii).
5.On page 65549, column 2, amen-
datory instruction 18. under ‘‘Par. 5.’’,
line 3, the language ’(e)(5)(i)(A)(3)’ in
its place, and‘‘ is corrected to read
’(e)(5)(i)(A)(3)’ in its place, and’’.
6.On page 65549, column 2, amen-
datory instruction 20. under ‘‘Par. 5.’’
is corrected to read as follows:
20.Adding new paragraph (e)(5)-
(ii)(A) and (D).
7. On page 65549, column 2,
§ 1.408–2 (e)(5)(ii)(A), second line
from the bottom of the paragraph, the
reference to ‘‘paragraph (e)(6)(ii)(B)
and (C)’’ is corrected to read ‘‘para-
graph (e)(5)(ii)(B) and (C)’’.
8. On page 65549, column 3,
§ 1.408–2 (e)(5)(ii)(D), sixth line from
the top of the column, the reference to
‘‘paragraph (e)(5)(ii)(B)(2)’’ is cor-
rected to read ‘‘paragraph (e)(5)-
(ii)(B)(2)’’.
9. On page 65549, column 3,
§ 1.408–2 (e)(5)(ii)(D), eighth line
from the top of the column, the
reference to ‘‘paragraph (e)(5)(ii)-
(C)(2)’’ is corrected to read ‘‘paragraph
(e)(5)(ii)(C)(2)’’.
10. On page 65549, column 3,
§ 1.408–2 (e)(5)(ii)(D), (ii) paragraph
(c) of the Example, line 2, the refer-
ence to ‘‘§1.408–2 (e)(6)(ii)(B)’’ is
corrected to read ‘‘§1.408–2 (e)(5)-
(ii)(B)’’.
11. On page 65550, column 1,
§ 1.408–2 (e)(5)(ii)(D), (ii) paragraph
(d) of the Example, line 2, the refer-
ence to ‘‘§1.408–2 (e)(6)(ii)(C)’’ is
corrected to read ‘‘§1.408–2 (e)(5)-
(ii)(C)’’.
Michael L. Slaughter,
Acting Chief, Regulations Unit
Assistant Chief Counsel (Corporate).

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171996 –26 I.R.B.
(Filed by the Office of the Federal Register on
March 19, 1996, 8:45 a.m., and published in
the issue of the Federal Register for March 20,
1996, 61 F.R. 11307)
Backup Withholding, Statement
Mailing Requirements, and Due
Diligence; Correction
Announcement 96–29
AGENCY: Internal Revenue Service,
Treasury.
ACTION: Correction to final and tem-
porary regulations.
SUMMARY: This document contains
corrections to final and temporary
regulations (TD 8637 [1996–4 I.R.B.
29]) which were published in the
Federal Register Thursday, December
21, 1995 (60 FR 66105), providing
final and temporary rules on backup
withholding, statement mailing require-
ments, and due diligence.
EFFECTIVE DATE: December 21,
1995.
FOR FURTHER INFORMATION
CONTACT: Renay France of the Of-
fice of Assistant Chief Counsel (In-
come Tax and Accounting) with respect
t o d o m e s t i c t r a n s a c t i o n s , ( 2 0 2 )
622-4910 (not a toll-free call); and
Teresa Burridge Hughes of the Office
of Assistant Chief Counsel (Interna-
tional) with respect to international
transactions, (202) 622-3880 (not a
toll-free number).
SUPPLEMENTARY INFORMATION:
Background
The final and temporary regulations
that are the subject of these corrections
are under sections 3406, 6042, 6044,
6049, and 6050N of the Internal
Revenue Code.
Need for Correction
As published, the final and tempo-
rary regulations (TD 8637) contain
errors which may prove to be mislead-
ing and are in need of clarification.
Correction of Publication
Accordingly, the publication of the
final regulations (TD 8637), which was
the subject of FR Doc. 95–30733, is
corrected as follows:
§ 1.6049–6 [Corrected]
1.On page 66111, column 2, in the
Par. 4. amendatory instruction, an
amendatory instruction is added after
2.c. to read ‘‘d. Paragraph (a), fifth
sentence.’’
§ 31.3406(d)–4 [Corrected]
2. On page 66126, column 1,
§ 31.3406(d)–4 (a)(3), line 18, the
language ‘‘as described in sections
3406(a)(1)(B) or’’ is corrected to read
‘‘as described in section 3406(a)(1)(B)
or’’.
3. On page 66126, column 2,
§ 31.3406(d)–4 (b)(1)(iii), line 4, the
language ‘‘subject to withholding under
sections’’ is corrected to read ‘‘subject
to withholding under section’’.
§ 31.3406(h)–2 [Corrected]
4. On page 66130, column 3,
§ 31.3406(h)–2 (b)(2)(i), line 5, the
language ‘‘under section 3406 31 per-
cent of the fair’’ is corrected to read
‘‘under section 3406, 31 percent of the
fair’’.
PART 35a—[CORRECTED]
5.On page 66134, columns 1 and 2,
Par. 12 and Par. 13 amendatory instruc-
tions are corrected to read as follows:
Par. 12. The authority citation for
part 35a continues to read in part as
follows:
Authority: 26 U.S.C. 7805 ** *
Par. 13. Section 35a.3406–2 is
amended by adding paragraph (l) to
read as follows:
§ 35a.3406–2 Imposition of backup
withholding for notified payee
underreporting of reportable interest
or dividend payments.
******
(1)Effective date. This section is
effective until December 31, 1996.
Michael L. Slaughter,
Acting Chief, Regulations Unit
Assistant Chief Counsel (Corporate).
(Filed by the Office of the Federal Register on
March 19, 1996, 8:45 a.m., and published in
the issue of the Federal Register for March 20,
1996, 61 F.R. 11307)
Disclosure of Returns and Return
Information to Procure Property or
Services for Tax Administration
Purposes; Correction
Announcement 96–30
AGENCY: Internal Revenue Service,
Treasury.
ACTION: Correction to notice of pro-
posed rulemaking.
SUMMARY: This document contains
corrections to the notice of proposed
rulemaking which was published in the
Federal Register for Friday, December
15, 1995 (60 FR 64402). The proposed
regulations relate to the disclosure of
returns and return information in con-
nection with the procurement of prop-
erty and services for tax administration
purposes.
FOR FURTHER INFORMATION
CONTACT: Donald Squires, (202)
622-4570 (not a toll-free number).
SUPPLEMENTARY INFORMATION:
Background
The notice of proposed rulemaking
that is the subject of this correction is
under section 6103 of the Internal
Revenue Code.
Need for Correction
As published, the notice of proposed
rulemaking contains errors that are in
need of clarification.
Correction of Publication
Accordingly, the publication of the
notice of proposed rulemaking which is
the subject of FR Doc. 95–30505, is
corrected as follows:
1.On page 64402, column three, in
the heading, the ‘‘Agency number’’
‘‘[DL–01–95]’’ is corrected to read
‘‘[DL–40–95]’’.
2.On page 64402, column three, in
the preamble following the ‘‘AD-
DRESSES:’’ caption, lines 2 and 8, the
language ‘‘(DL–01–95)’’ is corrected
to read ‘‘(DL–40–95)’’.
Cynthia E. Grigsby,
Chief, Regulations Unit
Assistant Chief Counsel (Corporate).

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181996 –26 I.R.B.
(Filed by the Office of the Federal Register on
March 8, 1996, 8:45 a.m., and published in the
issue of the Federal Register for March 11,
1996, 61 F.R. 9660)
Allocation of Accrued Benefits
Between Employer and Employee
Contributions; Correction
Announcement 96–31
AGENCY: Internal Revenue Service,
Treasury.
ACTION: Correction to notice of pro-
posed rulemaking.
SUMMARY: This document contains
corrections to the notice of proposed
rulemaking (EE–35–95 [1996–5 I.R.B.
19]) which was published in the
Federal Register on Friday, December
22, 1995 (60 FR 66532), relating to
proposed regulations that provide guid-
ance on calculation of an employee’s
accrued benefit derived from the
employee’s contributions to a qualified
defined pension plan.
FOR FURTHER INFORMATION
CONTACT: Janet A. Laufer, (202)
622-4606, (not a toll-free number).
SUPPLEMENTARY INFORMATION:
Background
The notice of proposed rulemaking
that is the subject of this correction
proposes amendments that reflect
changes made to section 411(c)(2) by
the Omnibus Budget Reconciliation Act
of 1987 and the Omnibus Budget
Reconciliation Act of 1989.
Need for Correction
As published, the notice of proposed
rulemaking (EE–35–95) contains errors
which may prove to be misleading and
are in need of clarification.
Correction of Publication
Accordingly, the publication of the
notice of proposed rulemaking (EE–35–
95), which was the subject of FR Doc.
95–31006, is corrected as follows:
§ 1.411(c)–1 [Corrected]
1. On page 66535, column 1,
§ 1.411(c)–1 (c)(6)(ii), paragraphs (1)
through (8) of Example 1., are correctly
designated as paragraphs (A) through
(H) of Example 1.
2. On page 66535, column 1,
§ 1.411(c)–1 (c)(6)(ii), newly desig-
nated paragraph (D) of Example 1., line
4, the language ‘‘determined in para-
graph (3) of this Example’’ is corrected
to read ‘‘determined in paragraph (C)
of this Example’’.
3. On page 66535, column 1,
§ 1.411(c)–1 (c)(6)(ii), newly desig-
nated paragraph (D) of Example 1., the
last line, the language ‘‘$11,913 —
9.196 = $1,295.’’ is corrected to read
‘‘$11,913 4 9.196 = $1,295.’’
4. On page 66535, column 1,
§ 1.411(c)–1 (c)(6)(ii), newly desig-
nated paragraph (H) of Example 1.,
second and third lines from the bottom
of the column, the language ‘‘contribu-
tions, the sum of paragraphs (4) and (7)
of this Example 1. ($1,295 + $1,654
=’’ is corrected to read ‘‘contributions,
the sum of paragraphs (D) and (G) of
this Example 1. ($1,295 + $1,654 =’’.
5. On page 66535, column 2,
§ 1.411(c)–1 (c)(6)(ii), paragraphs (1)
through (5) of Example 2. are correctly
designated as paragraphs (A) through
(E) of Example 2.
6. On page 66535, column 2,
§ 1.411(c)–1 (c)(6)(ii), newly desig-
nated paragraph (B) of Example 2., last
line, the language ‘‘($6,480 from para-
graph 2 of Example 1).’’ is corrected to
read ‘‘($6,480 from paragraph (B) of
Example 1).’’
7. On page 66535, column 2,
§ 1.411(c)–1 (c)(6)(ii), newly desig-
nated paragraph (C) of Example 2., last
line, the language ‘‘from paragraph 3
of Example 1).’’ is corrected to read
‘‘from paragraph (C) of Example 1).’’
8. On page 66535, column 2,
§ 1.411(c)–1 (c)(6)(ii), newly desig-
nated paragraph (D) of Example 2., line
4, the language ‘‘determined in para-
graph (3) of this Example’’ is corrected
to read ‘‘determined in paragraph (C)
of this Example’’.
9. On page 66535, column 2,
§ 1.411(c)–1 (c)(6)(ii), newly desig-
nated paragraph (D) of Example 2., last
line, the language ‘‘($1,295 from para-
graph 4 of Example 1)’’ is corrected to
read ‘‘($1,295 from paragraph (D) of
Example 1)’’.
Cynthia E. Grigsby,
Chief, Regulations Unit
Assistant Chief Counsel (Corporate).
(Filed by the Office of the Federal Register on
March 13, 1996, 8:45 a.m., and published in
the issue of the Federal Register for March 14,
1996, 61 F.R. 10489)
Reissuance of Mortgage Credit
Certificates; Hearing
Announcement 96–32
AGENCY: Internal Revenue Service
(IRS), Treasury.
ACTION: Notice of public hearing on
proposed rulemaking.
SUMMARY: This document provides
notice of a public hearing on proposed
regulations relating to implementing a
provision of the Tax Reform Act of
1984 permitting the reissuance of mort-
gage credit certificates.
DATES: The public hearing will be
held on Wednesday, May 22, 1996,
beginning at 10:00 a.m. Requests to
speak and outlines of oral comments
must be received by Wednesday, May
1, 1996.
ADDRESSES: The public hearing will
be held in the Internal Revenue Service
Commissioner’s Conference Room,
Room 3313, Internal Revenue Building,
1111 Constitution Avenue, N.W.,
Washington, D.C. 20044. Requests to
speak and outlines of oral comments
should be mailed to the Internal Reve-
nue Service, P.O. Box 7604, Ben
F r a n k l i n S t a t i o n , A t t n :
CC:DOM:CORP:R [FI–47–92], Room
5228, Washington, D.C., 20044.
FOR FURTHER INFORMATION
CONTACT: Evangelista Lee of the
Regulations Unit, Assistant Chief
Counsel (Corporate), (202) 622-8452
(not a toll-free number).
SUPPLEMENTARY INFORMATION:
The subject of the public hearing is
proposed amendments to the Income
Tax Regulations under section 25 of
the Internal Revenue Code. The pro-
posed regulations appeared in the Fed-
eral Register for Wednesday, December
22, 1993 (58 FR 67745).
The rules of §601.601(a)(3) of the
‘‘Statement of Procedural Rules’’ (26
CFR Part 601) shall apply with respect
to the public hearing. Persons who
have submitted written comments

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within the time prescribed in the notice
of proposed rulemaking and who also
desire to present oral comments at the
hearing on the proposed regulations
should submit not later than Wednes-
day, May 1, 1996, an outline of the
oral comments/testimony to be pre-
sented at the hearing and the time they
wish to devote to each subject.
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 for the government and answer
thereto.
Because of controlled access restric-
tions, attenders cannot be admitted
beyond the lobby of the Internal
Revenue Building until 9:45 a.m.
An agenda showing the scheduling
of the speakers will be made after
outlines are received from the persons
testifying. Copies of the agenda will be
available free of charge at the hearing.
Cynthia E. Grigsby,
Chief, Regulations Unit
Assistant Chief Counsel (Corporate).
(Filed by the Office of the Federal Register on
April 4, 1996, 8:45 a.m., and published in the
issue of the Federal Register for April 5, 1996,
61 F.R. 15204)

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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
public accountant, enrolled agent or en-
rolled actuary, in order to avoid the in-
stitution or conclusion of a proceeding
for his disbarment or suspension from
practice before the Internal Revenue
Service, may offer his consent to
suspension from such practice. The
Director of Practice, in his discretion,
may suspend an attorney, certified
public accountant, enrolled agent or
enrolled actuary in accordance with the
consent offered.
Attorneys, certified public account-
ants, enrolled agents and enrolled actu-
aries are prohibited in any Internal
Revenue Service matter from directly
or indirectly employing, accepting
assistance from, being employed by,
or sharing fees with, any practi-
tioner 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 attor-
ney, certified public accountant, en-
rolled agent or enrolled actuary and
date or period of suspension. This an-
nouncement will appear in the weekly
Bulletin at the earliest practicable date
after such action and will continue to
appear in the weekly Bulletins for five
successive weeks or for as many weeks
as is practicable for each attorney,
certified public accountant, enrolled
agent or enrolled actuary so suspended
and will be consolidated and published
in the Cumulative Bulletin.
The following individuals have been
placed under consent suspension from
practice before the Internal Revenue
Service:
NameAddressDesignationDate of Suspension
Miller, Gorden A.Mineral Wells, WVCPAFebruary 1, 1996 to April 30, 1996
Barnes, Charles E.Louisville, KYEnrolled
Agent
Indefinite from February 1, 1996
Polizzi, Angelo J.Grosse Point, MIAttorneyIndefinite from February 6, 1996
Pegler, Charles R.Islandia, NYCPAIndefinite from February 7, 1996
Foster, David M.Birmingham, MIAttorneyIndefinite from February 9, 1996
Smith, Jerry A.Evansville, INCPAFebruary 9, 1996 to November 8, 1996
Penn, Michael J.Dearborn, MICPAFebruary 9, 1996 to February 8, 1997
Mueller, E. LairdSeal Beach, CACPAFebruary 12, 1996 to June 11, 1996
Zezima, Paul P.Norwalk, CTCPAApril 1, 1996 to May 31, 1996
Van Houten, Robert R.Danbury, CTCPAMay 1, 1996 to April 30, 1997
Under Section 330, Title 31 of the
United States Code, the Secretary of
the Treasury, after due notice and
opportunity for hearing, is authorized
to suspend or disbar from practice
before the Internal Revenue Service
any person who has violated the rules
and regulations governing the recogni-
tion of attorneys, certified public ac-
countants, enrolled agents or enrolled
actuaries to practice before the Internal
Revenue Service.
Attorneys, certified public account-
ants, enrolled agents, and enrolled
actuaries are prohibited in any Internal
Revenue Service matter from directly
or indirectly employing, accepting as-
sistance from, being employed by or
sharing fees with, any practitioner
disbarred or under suspension from
practice before the Internal Revenue
Service.
To enable attorneys, certified public
accountants, enrolled agents and
enrolled actuaries to identify such
disbarred or suspended practitioners,
the Director of Practice will announce
in the Internal Revenue Bulletin the
names and addresses of practitioners
who have been suspended from such
practice, their designation as attorney,
certified public accountant, enrolled
agent or enrolled actuary, and the date
of disbarment or period of suspension.
This announcement will appear in the
weekly Bulletin for five successive
weeks or as long as it is practicable for
each attorney, certified public account-
ant, enrolled agent or enrolled actuary
so suspended or disbarred and will be
consolidated and published in the
Cumulative Bulletin.
After due notice and opportunity
for hearing before an administrative
law judge, the following individuals
have been disbarred from further prac-
tice before the Internal Revenue
Service:

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NameAddressDesignationEffective Date
Gimbel, StephenColumbia, SCCPAJanuary 20, 1996
Tropsa, Donna C.Stamford, CTAttorneyJanuary 20, 1996
Seifert, Frank J.Birmingham, ALCPAJanuary 20, 1996
Hansen, Joe B.Lubbock, TXCPAMarch 2, 1996
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 Inter-
nal 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 account-
ants, enrolled agents, and enrolled ac-
tuaries are prohibited in any Internal
Revenue Service matter from directly
or indirectly employing, accepting as-
sistance from, being employed by, or
sharing fees with, any practitioner
disbarred or suspended from practice
before the Internal Revenue Service.
To enable attorneys, certified public
accountants, enrolled agents, and en-
rolled actuaries to identify practitioners
under expedited suspension from prac-
tice before the Internal Revenue Serv-
ice, the Director of Practice will an-
nounce in the Internal Revenue Bulletin
the names and addresses of practition-
ers who have been suspended from such
practice, their designation as attorney,
certified public accountant, enrolled
agent, or enrolled actuary, and date or
period of suspension. This announce-
ment will appear in the weekly Bulletin
at the earliest practicable date after
such action and will continue to appear
in the weekly Bulletins for five succes-
sive weeks or for as many weeks as is
practicable for each attorney, certified
public accountant, enrolled agent, or
enrolled actuary so suspended and will
be consolidated and published in the
Cumulative Bulletin.
The following individuals have been
placed under suspension from practice
before the Internal Revenue Service by
virtue of the expedited proceeding
provisions of the applicable regulations:
NameAddressDesignationDate of Suspension
Ginsberg, Melvin R.Univ. Heights, OHAttorneyIndefinite from January 24, 1996
Lahey, Charles W.South Bend, INAttorneyIndefinite from January 24, 1996
DePiano, RobertVenice, CAAttorneyIndefinite from January 24, 1996
Kraig, Jerry B.Shaker Hgts, OHAttorneyIndefinite from January 29, 1996
Brown, David M.Los Angeles, CAAttorneyIndefinite from January 29, 1996
Hanke Jr., Dale L.Duluth, MNAttorneyIndefinite from February 1, 1996
Guillory, Patrick R.San Francisco, CAAttorneyIndefinite from February 1, 1996
Miller, Brian R.Grove, OKCPAIndefinite from February 23, 1996
McLeod, Timothy R.Saginaw, MIAttorneyIndefinite from February 26, 1996
Simone, Robert F.Philadelphia, PAAttorneyIndefinite from February 26, 1996
Bowen, David LeeFrisco City, ALCPAIndefinite from February 27, 1996
Lindley, ClarksonWayazata, MNAttorneyIndefinite from February 27, 1996

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Definition of Terms
Revenue rulings and revenue proce-
dures (hereinafter referred to as ‘‘rul-
ings’’) that have an effect on previous
rulings use the following defined terms
to describe the effect:
Amplified describes a situation where
no change is being made in a prior
published position, but the prior posi-
tion is being extended to apply to a
variation of the fact situation set forth
therein. Thus, if an earlier ruling held
that a principle applied to A, and the
new ruling holds that the same princi-
ple also applies to B, the earlier ruling
is amplified. (Compare with modified,
below).
Clarified is used in those instances
where the language in a prior ruling is
being made clear because the language
has caused, or may cause, some confu-
sion. It is not used where a position in
a prior ruling is being changed.
Distinguished describes a situation
where a ruling mentions a previously
published ruling and points out an
essential difference between them.
Modified is used where the substance
of a previously published position is
being changed. Thus, if a prior ruling
held that a principle applied to A but
not to B, and the new ruling holds that
it applies to both A and B, the prior
ruling is modified because it corrects a
published position. (Compare with am-
plified and clarified, above).
Obsoleted describes a previously
published ruling that is not considered
determinative with respect to future
transactions. This term is most com-
monly used in a ruling that lists
previously published rulings that are
obsoleted because of changes in law or
regulations. A ruling may also be
obsoleted because the substance has
been included in regulations subse-
quently adopted.
Revoked describes situations where
the position in the previously published
ruling is not correct and the correct
position is being stated in the new
ruling.
Superseded describes a situation
where the new ruling does nothing
more than restate the substance and
situation of a previously published
ruling (or rulings). Thus, the term is
used to republish under the 1986 Code
and regulations the same position pub-
lished under the 1939 Code and regula-
tions. The term is also used when it is
desired to republish in a single ruling a
series of situations, names, etc., that
were previously published over a
period of time in separate rulings.
If the new ruling does more than
restate the substance of a prior ruling, a
combination of terms is used. For
example, modified and superseded de-
scribes a situation where the substance
of a previously published ruling is
being changed in part and is continued
without change in part and it is desired
to restate the valid portion of the
previously published ruling in a new
ruling that is self contained. In this
case the previously published ruling is
first modified and then, as modified, is
superseded.
Supplemented is used in situations in
which a list, such as a list of the names
of countries, is published in a ruling
and that list is expanded by adding
further names in subsequent rulings.
After the original ruling has been
supplemented several times, a new
ruling may be published that includes
the list in the original ruling and the
additions, and supersedes all prior
rulings in the series.
Suspended is used in rare situations
to show that the previous published
rulings will not be applied pending
some future action such as the issuance
of new or amended regulations, the
outcome of cases in litigation, or the
outcome of a Service study.
Abbreviations
The following abbreviations in current use and
formerly used will appear in material published
in the Bulletin.
A—Individual.
Acq.—Acquiescence.
B—Individual.
BE—Beneficiary.
BK—Bank.
B.T.A.—Board of Tax Appeals.
C.—Individual.
C.B.—Cumulative Bulletin.
CFR—Code of Federal Regulations.
CI—City.
COOP—Cooperative.
Ct.D.—Court Decision.
CY—County.
D—Decedent.
DC—Dummy Corporation.
DE—Donee.
Del. Order—Delegation Order.
DISC—Domestic International Sales Corporation.
DR—Donor.
E—Estate.
EE—Employee.
E.O.—Executive Order.
ER—Employer.
ERISA—Employee Retirement Income Security Act.
EX—Executor.
F—Fiduciary.
FC—Foreign Country.
FICA—Federal Insurance Contribution Act.
FISC—Foreign International Sales Company.
FPH—Foreign Personal Holding Company.
F.R.—Federal Register.
FUTA—Federal Unemployment Tax Act.
FX—Foreign Corporation.
G.C.M.—Chief Counsel’s Memorandum.
GE—Grantee.
GP—General Partner.
GR—Grantor
IC—Insurance Company.
I.R.B.—Internal Revenue Bulletin.
LE—Lessee.
LP—Limited Partner.
LR—Lessor.
M—Minor.
Nonacq.—Nonacquiescence.
O—Organization.
P—Parent Corporation.
PHC—Personal Holding Company.
PO—Possession of the U.S.
PR—Partner.
PRS—Partnership.
PTE—Prohibited Transaction Exemption.
Pub. L.—Public Law.
REIT—Real Estate Investment Trust.
Rev. Proc.—Revenue Procedure.
Rev. Rul.—Revenue Ruling.
S—Subsidiary.
S.P.R.—Statements of Procedural Rules.
Stat.—Statutes at Large.
T—Target Corporation.
T.C.—Tax Court.
T.D.—Treasury Decision.
TFE—Transferee.
TFR—Transferor.
T.I.R.—Technical Information Release.
TP—Taxpayer.
TR—Trust.
TT—Trustee.
U.S.C.—United States Code.
X—Corporation.
Y—Corporation.
Z—Corporation.

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Numerical Finding List
1
Bulletins 1996–1 through 1996–16
Announcements:
96–1, 1996–2 I.R.B. 57
96–2, 1996–2 I.R.B. 57
96–3, 1996–2 I.R.B. 57
96–4, 1996–3 I.R.B. 50
96–5, 1996–4 I.R.B. 99
96–6, 1996–5 I.R.B. 43
96–7, 1996–5 I.R.B. 44
96–8, 1996–7 I.R.B. 56
96–9, 1996–8 I.R.B. 30
96–10, 1996–8 I.R.B. 30
96–11, 1996–9 I.R.B. 11
96–12, 1996–11 I.R.B. 30
96–13, 1996–12 I.R.B. 33
96–14, 1996–12 I.R.B. 35
96–15, 1996–11 I.R.B. 9
96–16, 1996–13 I.R.B. 22
96–17, 1996–13 I.R.B. 22
96–18, 1996–15 I.R.B. 15
96–19, 1996–15 I.R.B. 15
96–20, 1996–15 I.R.B. 15
96–21, 1996–15 I.R.B. 15
96–22, 1996–15 I.R.B. 16
96–23, 1996–16 I.R.B. 30
96–24, 1996–16 I.R.B. 35
Delegations Orders:
232 (Rev. 2), 1996–7 I.R.B. 49
239 (Rev. 1), 1996–7 I.R.B. 49
Notices:
96–2, 1996–2 I.R.B. 15
96–1, 1996–3 I.R.B. 30
96–4, 1996–4 I.R.B. 69
96–5, 1996–6 I.R.B. 22
96–6, 1996–5 I.R.B. 27
96–7, 1996–6 I.R.B. 22
96–8, 1996–6 I.R.B. 23
96–9, 1996–6 I.R.B. 26
96–10, 1996–7 I.R.B. 47
96–11, 1996–8 I.R.B. 19
96–12, 1996–10 I.R.B. 29
96–13, 1996–10 I.R.B. 29
96–14, 1996–12 I.R.B. 11
96–15, 1996–13 I.R.B. 19
96–16, 1996–13 I.R.B. 20
96–17, 1996–13 I.R.B. 20
96–18, 1996–14 I.R.B. 27
96–19, 1996–14 I.R.B. 28
96–20, 1996–14 I.R.B. 30
96–21, 1996–14 I.R.B. 30
96–22, 1996–14 I.R.B. 30
96–23, 1996–16 I.R.B. 23
96–24, 1996–16 I.R.B. 23
1
A cumulative list of all Revenue Rulings,
Revenue Procedures, Treasury Decisions, etc.,
published in Internal Revenue Bulletins 1995–27
through 1995–52 will be found in Internal
Revenue Bulletin 1996–1, dated January 2, 1996.
Proposed Regulations:
DL–1–95, 1996–6 I.R.B. 28
EE–20–95, 1996–5 I.R.B. 15
EE–34–95, 1996–3 I.R.B. 49
EE–35–95, 1996–5 I.R.B. 19
EE–53–95, 1996–5 I.R.B. 23
EE–55–95, 1996–12 I.R.B. 12
EE–106–82, 1996–10 I.R.B. 31
EE–142–87, 1996–12 I.R.B. 13
EE–148–81, 1996–11 I.R.B. 29
IA–33–95, 1996–4 I.R.B. 99
IA–41–93, 1996–11 I.R.B. 29
INTL–3–95, 1996–6 I.R.B. 29
INTL–9–95, 1996–5 I.R.B. 25
INTL–54–95, 1996–14 I.R.B. 39
PS–2–95, 1996–7 I.R.B. 50
PS–6–95, 1996–16 I.R.B. 27
Revenue Procedures:
96–1, 1996–1 I.R.B. 8
96–2, 1996–1 I.R.B. 60
96–3, 1996–1 I.R.B. 82
96–4, 1996–1 I.R.B. 94
96–5, 1996–1 I.R.B. 129
96–6, 1996–1 I.R.B. 151
96–7, 1996–1 I.R.B. 185
96–8, 1996–1 I.R.B. 187
96–8A, 1996–9 I.R.B. 10
96–9, 1996–2 I.R.B. 15
96–10, 1996–2 I.R.B. 17
96–11, 1996–2 I.R.B. 18
96–12, 1996–3 I.R.B. 30
96–13, 1996–3 I.R.B. 31
96–14, 1996–3 I.R.B. 41
96–15, 1996–3 I.R.B. 41
96–16, 1996–3 I.R.B. 45
96–17, 1996–4 I.R.B. 69
96–18, 1996–4 I.R.B. 73
96–19, 1996–4 I.R.B. 80
96–20, 1996–4 I.R.B. 88
96–21, 1996–4 I.R.B. 96
96–22, 1996–5 I.R.B. 27
96–23, 1996–5 I.R.B. 27
96–24, 1996–5 I.R.B. 28
96–24A, 1996–15 I.R.B. 12
96–25, 1996–8 I.R.B. 19
96–26, 1996–8 I.R.B. 22
96–27, 1996–11 I.R.B. 27
96–28, 1996–14 I.R.B. 31
96–29, 1996–16 I.R.B. 24
Revenue Rulings:
96–1, 1996–1 I.R.B. 7
96–2, 1996–2 I.R.B. 5
96–3, 1996–2 I.R.B. 14
96–6, 1996–2 I.R.B. 8
96–4, 1996–3 I.R.B. 16
96–5, 1996–3 I.R.B. 29
Revenue Rulings—Continued
96–7, 1996–3 I.R.B. 12
96–8, 1996–4 I.R.B. 62
96–9, 1996–4 I.R.B. 5
96–10, 1996–4 I.R.B. 27
96–11, 1996–4 I.R.B. 28
96–12, 1996–9 I.R.B. 4
96–13, 1996–10 I.R.B. 19
96–14, 1996–6 I.R.B. 20
96–15, 1996–11 I.R.B. 9
96–16, 1996–11 I.R.B. 4
96–17, 1996–13 I.R.B. 5
96–18, 1996–13 I.R.B. 4
96–19, 1996–14 I.R.B. 24
96–20, 1996–15 I.R.B. 5
96–21, 1996–15 I.R.B. 7
96–22, 1996–15 I.R.B. 9
96–23, 1996–15 I.R.B. 11
Treasury Decisions:
8630, 1996–3 I.R.B. 19
8631, 1996–3 I.R.B. 7
8632, 1996–4 I.R.B. 6
8633, 1996–4 I.R.B. 20
8634, 1996–3 I.R.B. 17
8635, 1996–3 I.R.B. 5
8636, 1996–4 I.R.B. 64
8637, 1996–4 I.R.B. 29
8638, 1996–5 I.R.B. 5
8639, 1996–5 I.R.B. 12
8640, 1996–2 I.R.B. 10
8641, 1996–6 I.R.B. 4
8642, 1996–7 I.R.B. 4
8643, 1996–11 I.R.B. 4
8644, 1996–7 I.R.B. 16
8645, 1996–8 I.R.B. 4
8646, 1996–8 I.R.B. 10
8647, 1996–9 I.R.B. 7
8648, 1996–10 I.R.B. 23
8649, 1996–9 I.R.B. 5
8650, 1996–10 I.R.B. 5
8651, 1996–11 I.R.B. 24
8652, 1996–11 I.R.B. 11
8653, 1996–12 I.R.B. 4
8654, 1996–11 I.R.B. 14
8655, 1996–12 I.R.B. 9
8656, 1996–13 I.R.B. 9
8657, 1996–14 I.R.B. 4
8658, 1996–14 I.R.B. 13
8659, 1996–16 I.R.B. 4

SEQ 0024 JOB D13-053-002 PAGE-0024 FINDING LIST
REVISED 01JUL96 AT 01:29 BY LR DEPTH: 65.01 PICAS WIDTH 41.11 PICAS
COMPOSITE COLOR
778/20051/1JUL96/D13-053
24
Finding List of Current Action on
Previously Published Items
1
Bulletins 1996–1 through 1996–16
*Denotes entry since last publication
Delegation Orders:
232 (Rev. 1)
Superseded by
232 (Rev. 2), 1996–7 I.R.B. 49
239
Amended by
239 (Rev. 1), 1996–7 I.R.B. 49
Revenue Procedures:
65–17
Modified by
96–14, 1996–3 I.R.B. 41
66–49
Modified by
96–15, 1996–3 I.R.B. 41
88–32
Obsoleted by
96–15, 1996–3 I.R.B. 41
88–33
Obsoleted by
96–15, 1996–3 I.R.B. 41
89–19
Superseded by
96–17, 1996–4 I.R.B. 69
89–48
Superseded in part by
96–17, 1996–4 I.R.B. 69
91–22
Modified by
96–1, 1996–1 I.R.B. 8
91–22
Amplified by
96–13, 1996–3 I.R.B. 31
91–23
Superseded by
96–13, 1996–3 I.R.B. 31
91–24
Superseded by
96–14, 1996–3 I.R.B. 41
91–26
Superseded by
96–13, 1996–3 I.R.B. 31
92–20
Modified by
96–1, 1996–1 I.R.B. 8
1
A cumulative finding list for previously
published items mentioned in Internal Revenue
Bulletins 1995–27 through 1995–52 will be
found in Internal Revenue Bulletin 1996–1, dated
January 2, 1996.
Revenue Procedures—Continued
92–85
Modified by
96–1, 1996–1 I.R.B. 8
93–16
Superseded by
96–11, 1996–2 I.R.B. 18
93–46
Superseded in part by
96–17, 1996–4 I.R.B. 69
Superseded by
96–18, 1996–4 I.R.B. 73
94–16
Modified by
96–29, 1996–16 I.R.B. 24
94–18
Superseded in part by
96–17, 1996–4 I.R.B. 69
Superseded by
96–18, 1996–4 I.R.B. 73
94–59
Superseded in part by
96–17, 1996–4 I.R.B. 69
Superseded by
96–18, 1996–4 I.R.B. 73
94–62
Modified by
96–29, 1996–16 I.R.B. 24
94–77
Superseded by
96–28, 1996–14 I.R.B. 31
95–1
Superseded by
96–1, 1996–1 I.R.B. 8
95–2
Superseded by
96–2, 1996–1 I.R.B. 60
95–3
Superseded by
96–3, 1996–1 I.R.B. 82
95–4
Superseded by
96–4, 1996–1 I.R.B. 94
95–5
Superseded by
96–5, 1996–1 I.R.B. 129
95–6
Superseded by
96–6, 1996–1 I.R.B. 151
Revenue Procedures—Continued
95–7
Superseded by
96–7, 1996–1 I.R.B. 185
95–8
Superseded by
96–8, 1996–1 I.R.B. 187
95–13
Superseded by
96–20, 1996–4 I.R.B. 88
95–20
Superseded by
96–24, 1996–5 I.R.B. 28
95–50
Superseded by
96–3, 1996–1 I.R.B. 82
96–3
Amplified by
96–12, 1996–3 I.R.B. 30
Revenue Rulings:
66–307
Obsoleted by
96–3, 1996–2 I.R.B. 14
72–437
Modified by
96–13, 1996–3 I.R.B. 31
80–80
Obsoleted by
96–3, 1996–2 I.R.B. 14
82–80
Modified by
96–14, 1996–3 I.R.B. 41
92–19
Supplemented in part
96–2, 1996–2 I.R.B. 5
92–75
Clarified by
96–13, 1996–3 I.R.B. 31
95–10
Supplemented and superseded by
96–4, 1996–3 I.R.B. 16
95–11
Supplemented and superseded by
96–5, 1996–3 I.R.B. 29
96–24
Modified and amplified by
96–24A, 1996–15 I.R.B. 12