Internal Revenue Bulletin 1998-40 (PDF rendition): IRS Revenue Rulings

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.

INCOME TAX
Rev. Rul. 98–49, page 4.
Low-income housing tax credit.This ruling advises tax-
payers that payments made to a building owner on behalf or
in respect of a tenant under the Section 8 Assistance For Sin-
gle-Room Occupancy Dwellings Program or under the Shelter
Plus Care Program are not grants made with respect to a
building or its operation under section 42(d)(5) of the Code.
Rev. Rul. 98–50, page 7.
Federal rates; adjusted federal rates; adjusted federal
long-term rate, and the long-term exempt rate. For
purposes of sections 1274, 1288, 382, and other sections
of the Code, tables set forth the rates for October 1998.
EMPLOYEE PLANS
T.D. 8781, page 4.
REG–101363–98, page 10.
Final, temporary, and proposed regulations under section
411 of the Code provide for changes to the rules regarding
qualified retirement plan benefits that are protected from re-
duction by plan amendment, that have been made neces-
sary by the Taxpayer Relief Act of 1997.
Rev. Proc. 98–53, page 9.
Determination letter requests; plan amendments.This
procedure allows for determination letter requests with
caveats for statutory changes. Rev. Proc. 98–14 modified.
EXEMPT ORGANIZATIONS
Announcement 98–91, page 12.
A list is given of organizations now classified as private foun-
dations.
ADMINISTRATIVE
Announcement 98–87, page 11.
This announcement states that taxpayers may rely on the
proposed Income Tax Regulations under sections 411(a)(11)
and 417 of the Code pertaining to notice and consent (Sec-
tion 1.411(a)–11(c)(2) and (8) and section 1.417(e)–1(b)(3)
and (4)).
Announcement 98–89, page 11.
The Service has undertaken a new initiative to improve its
procedures for handling bankruptcy cases.
Internal Revenue
bbuulllleettiinn
Bulletin No. 1998–40
October 5, 1998
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.
Department of the Treasury
Internal Revenue Service
Finding Lists begin on page 17.
Announcement of Disbarments and Suspensions begins on page 13.
Index for January-September begins on page 19.
IRB 1998-40 9/30/98 12:00 PM Page 1

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 prod-
ucts and services; and perform in a manner warranting
the highest degree of public confidence in our integrity, effi-
ciency, and fairness.
2
Statement of Principles
of Internal Revenue
Tax Administration
The function of the Internal Revenue Service is to adminis-
ter 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 provi-
sions 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 “protect-
ing the revenue.” The revenue is properly protected only
when we ascertain 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 hesi-
tate 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, howev-
er, be vigorous in requiring compliance with law and it
should be relentless in its attack on unreal tax devices and
fraud.
IRB 1998-40 9/30/98 12:00 PM Page 2

The Internal Revenue Bulletin is the authoritative instrument
of the Commissioner of Internal Revenue for announcing offi-
cial rulings and procedures of the Internal Revenue Service
and for publishing Treasury Decisions, Executive Orders, Tax
Conventions, legislation, court decisions, and other items of
general interest. It is published weekly and may be obtained
from the Superintendent of Documents on a subscription
basis. Bulletin contents of a permanent nature are consoli-
dated 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 sub-
stantive 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 other-
wise indicated. Procedures relating solely to matters of in-
ternal 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 pub-
lished rulings and procedures, the effect of subsequent leg-
islation, regulations, court decisions, rulings, and proce-
dures must be considered, and Service personnel and oth-
ers concerned are cautioned against reaching the same con-
clusions 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 Sub-
parts. Also included in this part are Bank Secrecy Act Admin-
istrative Rulings. Bank Secrecy Act Administrative 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 Rulemaking
and the disbarment and suspension list included in this part,
none of these announcements are consolidated in the Cumu-
lative Bulletins.
The first Bulletin for each month includes a cumulative index
for the matters published during the preceding months.
These monthly indexes are cumulated on a semiannual basis
and are published in the first Bulletin of the succeeding semi-
annual period, respectively.
3
Introduction
The contents of this publication are not copyrighted and may be reprinted freely. Acitation of the Internal Revenue Bulletin as the source would be appropriate.
For sale by the Superintendent of Documents, U.S. Government Printing Office, Washington, DC 20402.
IRB 1998-40 9/30/98 12:00 PM Page 3

Section 42.—Low-Income
Housing Credit
26 CFR 1.42–16: Eligible basis reduced by federal
grants.
Low-income housing tax credit.This
revenue ruling advises taxpayers that pay-
ments made to a building owner on behalf
or in respect of a tenant under the Section
8 Assistance For Single-Room Occu-
pancy Dwellings Program or under the
Shelter Plus Care Program are not grants
made with respect to a building or its op-
eration under section 42(d)(5) of the
Code.
Rev. Rul. 98–49
Pursuant to § 1.42–16(b)(3) of the In-
come Tax Regulations, the Internal Rev-
enue Service has determined that pay-
ments made to a building owner on behalf
or in respect of a tenant under the Section
8 Assistance For Single-Room Occupancy
Dwellings Program(42 U.S.C. 11301,
11401–11402) or under the Shelter Plus
Care Program(42 U.S.C. 11301, 11403–
11407b) are not grants made with respect
to a building or its operation under
§ 42(d)(5) of the Internal Revenue Code.
DRAFTING INFORMATION
The principal author of this revenue
ruling is Christopher J. Wilson of the Of-
fice of Assistant Chief Counsel
(Passthroughs and Special Industries).
For further information regarding this
revenue ruling contact Mr. Wilson on
(202) 622-3040 (not a toll-free call).
The adjusted applicable federal short-term, mid-
term, and long-term rates are set forth for the month
of October 1998. See Rev. Rul. 98–50, page 7.
Section 280G.—Golden
Parachute Payments
Federal short-term, mid-term, and long-term
rates are set forth for the month of October 1998.
See Rev. Rul. 98–50, page 7.
Section 382.—Limitation on Net
Operating Loss Carryforwards
and Certain Built-In Losses
Following Ownership Change
The adjusted federal long-term rate is set forth
for the month of October 1998. See Rev. Rul. 98–50,
page 7.
Section 411.—Minimum Vesting
Standards
26 CFR 1.411(d)–4: Section 411(d)(6) protected
benefits.
T.D. 8781
DEPARTMENT OF THE TREASURY
Internal Revenue Service
26 CFR Part 1
Section 411(d)(6) Protected
Benefits (Taxpayer Relief Act of
1997); Qualified Retirement
Plan Benefits
AGENCY: Internal Revenue Service
(IRS), Treasury.
ACTION: Final and temporary regula-
tions.
SUMMARY: This document contains
final and temporary regulations providing
for changes to the rules regarding quali-
fied retirement plan benefits that are pro-
tected from reduction by plan amend-
ment, that have been made necessary by
the Taxpayer Relief Act of 1997 (TRA
’97). The temporary regulations change
the existing regulations to conform with
the TRA’97 rules regarding in-kind dis-
tribution requirements for certain em-
ployee stock ownership plans, and specify
the time period during which certain plan
amendments for which relief has been
granted by TRA’97 may be made without
violating the prohibition against plan
amendments that reduce accrued benefits.
These temporary regulations affect spon-
sors of qualified retirement plans, em-
ployers that maintain qualified retirement
plans, and qualified retirement plan par-
ticipants. The final regulations amend the
existing final regulations to cross-refer-
ence the temporary regulations. The text
of the temporary regulations also serves
as the text of REG–101363–98, page 10.
DATES: These regulations are effective
September 4, 1998.
FOR FURTHER INFORMATION CON-
TACT: Linda S. F. Marshall, (202) 622-
6030 (not a toll-free number).
SUPPLEMENTARYINFORMATION:
Background
This document contains amendments to
the Income Tax Regulations (26 CFR part
1) under section 411(d)(6). These tempo-
rary regulations change the rules under
section 411(d)(6) regarding qualified re-
tirement plan benefits that are protected
from reduction by plan amendment, to
take into account amendments made by
the Taxpayer Relief Act of 1997 (TRA
’97), Public Law 105–34 (111 Stat. 788
(1997)). Specifically, these temporary
regulations change the existing regula-
tions to conform to the TRA’97 amend-
ments to section 409 regarding the gen-
eral requirement that employee stock
ownership plans offer distributions in the
form of employer securities. In addition,
these temporary regulations specify the
time period during which certain plan
amendments for which relief has been
granted by TRA’97 may be made without
violating section 411(d)(6).
Explanation of Provisions
Section 411(d)(6) provides that a plan
is not treated as satisfying the require-
ments of section 411 if the accrued bene-
fit of a participant is decreased by a plan
amendment. Under section 411(d)(6)(B),
a plan amendment that eliminates an
optional form of benefit is treated as re-
ducing accrued benefits to the extent that
the amendment applies to benefits ac-
crued as of the later of the adoption date
or the effective date of the amendment.
Sections 1.411(d)–4, Q&A–1(b)(1) and
1.401(a)(4)–4(e) specify that different op-
tional forms of benefit within the meaning
of section 411(d)(6)(B) result from differ-
ences in the medium of a distribution
October 5, 199841998–40 I.R.B.
Part I. Rulings and Decisions Under the Internal Revenue Code of 1986
IRB 1998-40 9/30/98 12:00 PM Page 4

(e.g., cash or in-kind) from a plan. Sec-
tion 411(d)(6)(C) provides that any tax
credit employee stock ownership plan or
any employee stock ownership plan is not
treated as failing to meet the requirements
of section 411(d)(6) merely because it
modifies distribution options in a nondis-
criminatory manner.
Special Rules Regarding Medium of
Distribution from ESOPs
Section 409(h) contains requirements
relating to distributions from tax credit
employee stock ownership plans. Section
4975(e)(7) extends the requirements of
section 409(h) to other employee stock
ownership plans as well, and section
401(a)(23) extends the requirements of
section 409(h) to qualified plans that are
stock bonus plans. Under section
409(h)(1)(A), an employee stock owner-
ship plan or other stock bonus plan gener-
ally is required to make distributions
available in the form of employer securi-
ties. Prior to its amendment by TRA’97,
section 409(h)(2) provided an exception
to this rule in the case of an employer
whose charter or bylaws restrict the own-
ership of substantially all outstanding em-
ployer securities to employees or to a trust
described in section 401(a).
Under section 1361, certain small busi-
ness corporations that do not have more
than 75 shareholders are eligible to elect
treatment as S corporations whose tax at-
tributes generally flow through to share-
holders in accordance with the rules of
subchapter S of chapter 1 of subtitle Aof
the Internal Revenue Code. Prior to the
Small Business Job Protection Act of
1996 (SBJPA), Public Law 104–188 (110
Stat. 1755 (1996)), an S corporation could
not maintain an employee stock owner-
ship plan because an S corporation could
not have a qualified trust described in sec-
tion 401(a) as a shareholder. SBJPA
amended the requirements for S corpora-
tions, effective for tax years beginning
after December 31, 1996, to permit cer-
tain tax-exempt organizations, including
qualified trusts described in section
401(a), to be S corporation shareholders.
TRA’97 made an additional change to
the rules governing qualified plans hold-
ing securities of an S corporation em-
ployer, to make it easier for S corporation
employers to facilitate employee owner-
ship of employer securities through quali-
fied plans. Section 1506 of TRA’97 ex-
tends the exception of section 409(h)(2)
to cover S corporations, effective for tax-
able years beginning after December 31,
1997. Pursuant to this change, tax credit
employee stock ownership plans, em-
ployee stock ownership plans, and other
stock bonus plans established and main-
tained by S corporation employers are not
required to offer distributions in the form
of employer securities.
Section 1.411(d)–4, Q&A-2(d)(2)(ii)
provides an exception from the require-
ments of section 411(d)(6) for plan
amendments that eliminate optional forms
of benefit from a tax credit employee
stock ownership plan, an employee stock
ownership plan, or a stock bonus plan, for
certain employers. Section 1.411(d)–4,
Q&A-2(d)(2)(ii) applies to employers that
become substantially employee-owned, if
the employer otherwise meets the require-
ments of section 409(h)(2) with respect to
restrictions on the ownership of outstand-
ing employer stock. These temporary
regulations expand this exception from
the requirements of section 411(d)(6) to
apply to S corporations as well, to reflect
the TRA’97 changes to section 409(h).
Rules for Plan Amendments Pursuant to
TRA’97
Section 1541 of TRA’97 contains pro-
visions relating to plan amendments that
are adopted as a result of TRA’97. If sec-
tion 1541 applies to a plan amendment,
section 1541(a) provides that the plan will
be treated as operated in accordance with
its terms and will not fail to satisfy the re-
quirements of section 411(d)(6) by reason
of the amendment. Section 1541 applies
to a plan amendment that is made pur-
suant to a legislative change in the pen-
sion and employee benefit provisions of
TRA’97, provided the following condi-
tions are satisfied. First, the plan amend-
ment must be adopted before the first day
of the first plan year beginning on or after
January 1, 1999 (2001, in the case of a
governmental plan, as defined in section
414(d)). Second, the plan must be oper-
ated in accordance with the terms of the
plan amendment, beginning on the date
the legislative change takes effect, or, if
the amendment is not required by the leg-
islative change, the effective date of the
amendment specified by the plan. Third,
the plan amendment must be made
retroactively effective.
The remedial amendment period for
adopting plan amendments to which sec-
tion 1541 of TRA’97 applies was ex-
tended pursuant to the rules of section
401(b) in Rev. Proc. 98–14 (1998–4 I.R.B.
22). To provide a uniform time for plan
amendment, these temporary regulations
extend the time for the section 411(d)(6)
relief provided by section 1541 of TRA
’97 to the end of the remedial amendment
period for these plan amendments.
Other Section 411(d)(6) Issues
In Notice 98–29 (1998–22 I.R.B. 8),
the IRS requested public comment re-
garding a number of possible methods of
providing section 411(d)(6) relief, partic-
ularly for defined contribution plans. The
IRS will also consider comments submit-
ted pursuant to Notice 98–29 that propose
other methods of providing section
411(d)(6) relief to address special con-
cerns of employee stock ownership plans.
Special Analyses
It has been determined that this Trea-
sury decision is not a significant regula-
tory action as defined in EO 12866.
Therefore, a regulatory assessment is not
required. It also has been determined that
section 553(b) of the Administrative Pro-
cedure Act (5 U.S.C. chapter 5) does not
apply to these regulations, and because
the regulation does not impose a collec-
tion of information on small entities, the
Regulatory Flexibility Act (5 U.S.C.
chapter 6) does not apply. Pursuant to
section 7805(f) of the Internal Revenue
Code, these temporary regulations will be
submitted to the Chief Counsel for Advo-
cacy of the Small Business Administra-
tion for comment on their impact on small
business.
Drafting Information
The principal author of these regula-
tions is Linda S. F. Marshall, Office of the
Associate Chief Counsel (Employee Ben-
efits and Exempt Organizations). How-
ever, other personnel from the IRS and
Treasury Department participated in their
development.
*****
1998–40 I.R.B.5October 5, 1998
IRB 1998-40 9/30/98 12:00 PM Page 5

Adoption of Amendments to the
Regulations
Accordingly, 26 CFR part 1 is amended
as follows:
PART1—INCOME TAXES
Paragraph 1. The authority citation for
part 1 is amended by adding an entry in
numerical order to read in part as follows:
Authority: 26 U.S.C. 7805 * * *
§1.411(d)–4Talso issued under 26 U.S.C.
411(d)(6). * * *
Par. 2. Section 1.411(d)–4 is amended
by:
1. Removing the reference “Q&A-5”
and adding Q&A-2” in its place in the
first sentence of Q&A-2(d)(1) introduc-
tory text.
2. Adding a sentence at the end of
Q&A-2(d)(3) to read as follows:
§1.411(d)–4 Section 411(d)(6) protected
benefits.
* * * * *
Q-2: * * *
A-2: * * *
(d) * * *
(3) * * * (For taxable years after De-
cember 31, 1997, see §1.411(d)–4T
Q&A-2(d).)
* * * * *
Par. 3. Section 1.411(d)–4Tis added to
read as follows:
§1.411(d)–4TSection 411(d)(6)
protected benefits (temporary).
Q&A-1: [Reserved]. For further infor-
mation, see §1.411(d)–4 Q&A-1.
Q-2: To what extent may section
411(d)(6) protected benefits under a plan
be reduced or eliminated?
(a) through (c) [Reserved]. For further
information, see §1.411(d)–4 Q&A-2(a)
through (c).
(d) ESOPand stock bonus plan excep-
tion—(1) In general.Subject to the limi-
tations in paragraph (d)(2) of this Q&A-2,
a tax credit employee stock ownership
plan (as defined in section 409(a)), an em-
ployee stock ownership plan (as defined
in section 4975(e)(7)), or a stock bonus
plan that is not an employee stock owner-
ship plan will not be treated as violating
the requirements of section 411(d)(6)
merely because of the circumstances de-
scribed in paragraph (d)(1)(ii) of this
Q&A-2.
(i) [Reserved]. For further information,
see §1.411(d)–4 Q&A-2(d)(1)(i).
(ii) Employer becomes substantially
employee-owned or is an S corporation.
The employer eliminates, or retains the
discretion to eliminate, with respect to all
participants, optional forms of benefit by
substituting cash distributions for distrib-
utions in the form of employer stock with
respect to benefits subject to section
409(h) in the circumstances described in
paragraph (d)(1)(ii)(A) or (B) of this
Q&A-2, but only if the employer other-
wise meets the requirements of section
409(h)(2)—
(A) The employer becomes substan-
tially employee-owned; or
(B) For taxable years of the employer
beginning after December 31, 1997, the
employer is an S corporation as defined in
section 1361.
(iii) and (iv) [Reserved]. For further
information, see §1.411(d)–4 Q&A-
2(d)(1)(iii) and (iv).
(2) Limitations on ESOPand stock
bonus plan exceptions.[Reserved]. For
further information, see §1.411(d)–4
Q&A-2(d)(2).
(3) Effective date.Paragraph (d) of
this Q&A-2 applies for taxable years be-
ginning after December 31, 1997. For
taxable years beginning prior to January
1, 1998, see §1.411(d)–4 Q&A-2(d).
(4) [Reserved]. For further informa-
tion, see §1.411(d)–4 Q&A-2(d)(4).
Q&A-3 through Q&A-10 [Reserved].
For further information, see §1.411(d)–4
Q&A-3 through Q&A-10.
Q-11: To what extent may a plan
amendment that is made pursuant to the
Taxpayer Relief Act of 1997 (TRA’97)
(Public Law 105–34, 111 Stat. 788), re-
duce or eliminate section 411(d)(6) pro-
tected benefits?
A-11: Aplan amendment does not vio-
late the requirements of section 411(d)(6)
merely because the plan amendment re-
duces or eliminates section 411(d)(6) pro-
tected benefits as of the effective date of
the plan amendment, provided that—
(a) The plan amendment is made pur-
suant to an amendment made by title XV,
or subtitle H of title X, of TRA’97; and
(b) The plan amendment is adopted no
later than the last day of any remedial
amendment period that applies to the plan
pursuant to §§1.401(b)–1 and 1.401(b)–
1Tfor changes under TRA’97.
Michael P. Dolan,
Deputy Commissioner of
Internal Revenue.
Approved July 24, 1998.
Donald C. Lubick,
Assistant Secretary of
the Treasury.
(Filed by the Office of the Federal Register on
September 8, 1998, 8:45 a.m., and published in the
issue of the Federal Register for September 9, 1998,
63 F.R. 47172)
Section 412.—Minimum Funding
Standards
The adjusted applicable federal short-term, mid-
term, and long-term rates are set forth for the month
of October 1998. See Rev. Rul. 98–50, page 7.
Section 467.—Certain Payments
for the Use of Property or
Services
The adjusted applicable federal short-term, mid-
term, and long-term rates are set forth for the month
of October 1998. See Rev. Rul. 98–50, page 7.
Section 468.—Special Rules for
Mining and Solid Waste
Reclamation and Closing Costs
The adjusted applicable federal short-term, mid-
term, and long-term rates are set forth for the month
of October 1998. See Rev. Rul. 98–50, page 7.
Section 482.—Allocation of
Income and Deductions Among
Taxpayers
Federal short-term, mid-term, and long-term
rates are set forth for the month of October 1998.
See Rev. Rul. 98–50, page 7.
Section 483.—Interest on
Certain Deferred Payments
The adjusted applicable federal short-term, mid-
term, and long-term rates are set forth for the month
of October 1998. See Rev. Rul. 98–50, page 7.
October 5, 199861998–40 I.R.B.
IRB 1998-40 9/30/98 12:00 PM Page 6

Section 642.—Special Rules for
Credits and Deductions
Federal short-term, mid-term, and long-term
rates are set forth for the month of October 1998.
See Rev. Rul. 98–50, page 7.
Section 807.—Rules for Certain
Reserves
The adjusted applicable federal short-term, mid-
term, and long-term rates are set forth for the month
of October 1998. See Rev. Rul. 98–50, page 7.
Section 846.—Discounted
Unpaid Losses Defined
The adjusted applicable federal short-term, mid-
term, and long-term rates are set forth for the month
of October 1998. See Rev. Rul. 98–50, page 7.
Section 1274.—Determination
of Issue Price in the Case of
Certain Debt Instruments Issued
for Property
(Also sections 42, 280G, 382, 412, 467, 468, 482,
483, 642, 807, 846, 1288, 7520, 7872.)
Federal rates; adjusted federal rates;
adjusted federal long-term rate, and
the long-term exempt rate.For purposes
of sections 1274, 1288, 382, and other
sections of the Code, tables set forth the
rates for October 1998.
Rev. Rul. 98–50
This revenue ruling provides various
prescribed rates for federal income tax
purposes for October 1998 (the current
month.) Table 1 contains the short-term,
mid-term, and long-term applicable fed-
eral rates (AFR) for the current month for
purposes of section 1274(d) of the Inter-
nal Revenue Code. Table 2 contains the
short-term, mid-term, and long-term ad-
justed applicable federal rates (adjusted
AFR) for the current month for purposes
of section 1288(b). Table 3 sets forth the
adjusted federal long-term rate and the
long-term tax-exempt rate described in
section 382(f). Table 4 contains the ap-
propriate percentages for determining the
low-income housing credit described in
section 42(b)(2) for buildings placed in
service during the current month. Finally,
Table 5 contains the federal rate for deter-
mining the present value of an annuity, an
interest for life or for a term of years, or a
remainder or a reversionary interest for
purposes of section 7520.
1998–40 I.R.B.7October 5, 1998
REV. RUL. 98–50 TABLE 1
Applicable Federal Rates (AFR) for October 1998
Period for Compounding
AnnualSemiannualQuarterlyMonthly
Short-Term
AFR5.06%5.00%4.97%4.95%
110% AFR5.58%5.50%5.46%5.44%
120% AFR6.09%6.00%5.96%5.93%
130% AFR6.61%6.50%6.45%6.41%
Mid-Term
AFR5.12%5.06%5.03%5.01%
110% AFR5.65%5.57%5.53%5.51%
120% AFR6.16%6.07%6.02%5.99%
130% AFR6.69%6.58%6.53%6.49%
150% AFR7.73%7.59%7.52%7.47%
175% AFR9.06%8.86%8.76%8.70%
Long-Term
AFR5.46%5.39%5.35%5.33%
110% AFR6.02%5.93%5.89%5.86%
120% AFR6.57%6.47%6.42%6.38%
130% AFR7.13%7.01%6.95%6.91%
IRB 1998-40 9/30/98 12:00 PM Page 7

REV. RUL. 98–50 TABLE 2
Adjusted AFR for October 1998
Period for Compounding
AnnualSemiannualQuarterlyMonthly
Short-term
adjusted AFR3.52%3.49%3.47%3.46%
Mid-term
adjusted AFR4.05%4.01%3.99%3.98%
Long-term
adjusted AFR4.80%4.74%4.71%4.69%
October 5, 199881998–40 I.R.B.
REV. RUL. 98–50 TABLE 3
Rates Under Section 382 for October 1998
Adjusted federal long-term rate for the current month4.80%
Long-term tax-exempt rate for ownership changes uring the current month (the highest of the
adjusted federal long-term rates for the current month and the prior two months)5.02%
REV. RUL. 98–50 TABLE 4
Appropriate Percentages Under Section 42(b)(2) for October 1998
Appropriate percentage for the 70% present value low-income housing credit8.23%
Appropriate percentage for the 30% present value low-income housing credit 3.53%
REV. RUL. 98–50 TABLE 5
Rate Under Section 7520 for October 1998
Applicable federal rate for determining the present value of an annuity, an interest for life or a
term of years, or a remainder or reversionary interest6.2%
Section 1288.—Treatment of
Original Issue Discount on
Tax-Exempt Obligations
The adjusted applicable federal short-term, mid-
term, and long-term rates are set forth for the month
of October 1998. See Rev. Rul. 98–50, page 7.
Section 7520.—Valuation
Tables
The adjusted applicable federal short-term, mid-
term, and long-term rates are set forth for the month
of October 1998. See Rev. Rul. 98–50, page 7.
Section 7872.—Treatment of
Loans With Below-Market
Interest Rates
The adjusted applicable federal short-term, mid-
term, and long-term rates are set forth for the month
of October 1998. See Rev. Rul. 98–50, page 7.
IRB 1998-40 9/30/98 12:00 PM Page 8

1998–40 I.R.B.9October 5, 1998
26 CFR 601.201: Rulings and determination letters.
Rev. Proc. 98–53
SECTION 1. PURPOSE
This revenue procedure modifies Rev.
Proc. 98–14, 1998–4 I.R.B. 22, to give
sponsors of individually-designed pen-
sion, profit-sharing and stock bonus plans,
including volume submitter plans, the op-
tion of requesting that applications for de-
termination letters involving § 401(a) or
§ 403(a) of the Code be reviewed without
taking into account changes in the plan
qualification requirements made by the
Uruguay Round Agreements Act, Pub. L.
103–465 (GATT), the Small Business Job
Protection Act of 1996, Pub. L. 104–188
(SBJPA) (including § 414(u) and the Uni-
formed Services Employment and Reem-
ployment Rights Act of 1994, Pub. L.
103–353 (USERRA)), and the Taxpayer
Relief Act of 1997, Pub. L. 105–34 (TRA
’97). This option is being provided in re-
sponse to employer and practitioner com-
ments and will continue until further no-
tice. This option will allow employers to
take advantage of the full remedial
amendment period for changes in the plan
qualification requirements under these
acts.
SECTION 2. BACKGROUND
.01 Rev. Proc. 98–14 provides that de-
termination letter applications that are
filed on or after April 27, 1998, will be re-
viewed taking into account GATT, TRA
’97, and those provisions of SBJPAthat
are effective before 1999 (“new law”).
The only exception is for determination
letter applications for adopters of master
or prototype (M&P) and regional proto-
type plans (other than terminating plans)
that have not yet been amended for the
new law; these will continue to be re-
viewed and approved on the basis of
“pre-GATT” law. In addition, under Rev.
Proc. 98–14, applications for opinion let-
ters for M&Pplans, notification letters for
regional prototype plans, and advisory
letters for volume submitter specimen
plans that are filed on or after April 27,
1998, will be reviewed on the basis of the
new law.
.02 Rev. Proc. 97–41, 1997–33 I.R.B.
51, as modified by Rev. Proc. 98–14, pro-
vides that the remedial amendment period
under § 401(b) for amending plans for the
new law generally does not expire until
the end of the first plan year beginning on
or after January 1, 1999. Rev. Proc. 97–
41 also provides that this remedial
amendment period applies with respect to
all disqualifying provisions of new plans
adopted or effective after December 7,
1994, and all disqualifying provisions of
existing plans arising from a plan amend-
ment adopted after December 7, 1994.
Nevertheless, employers and practitioners
have asked that plan sponsors be allowed
to request determination letters without
being required to amend their plans for
the new law at this time.
SECTION 3. MODIFICATION OF
REV. PROC. 98–14
.01 Rev. Proc. 98–14 is modified to
provide that sponsors of individually-de-
signed plans, including volume submitter
plans, may request that an application for
a determination letter on a plan’s qualified
status (other than a determination on plan
termination) be reviewed without taking
into account the requirements of the new
law, except for § 1432 and § 1454 of
SBJPA, which amended § 401(a)(26) and
§ 414(n), respectively. The fact that a
plan sponsor requests that its application
be reviewed without taking into account
the requirements of the new law does not
preclude the sponsor from incorporating
in the plan any provisions that reflect the
new law, such as the GATTchanges to §
417(e). However, the determination letter
that is issued for the plan may not be re-
lied upon with respect to whether such
provisions satisfy the qualification re-
quirements as amended by the new law,
except for § 1432 and, if the applicant has
requested a determination of leased em-
ployee status, § 1454 of SBJPA. This op-
tion of requesting a pre-GATTletter will
apply with respect to applications filed on
or after April 27, 1998, and will continue
until further notice.
.02 Adetermination letter applicant
who wishes to request a pre-GATTletter
should so indicate in a cover letter sub-
mitted with the application or on the face
of the application form. If the application
has already been filed, the applicant
should notify the Service by calling the
phone number shown on the Service’s ac-
knowledgment-of-receipt letter or by con-
tacting the specialist who has been as-
signed to review the application. A
favorable determination letter that is is-
sued in response to an application for a
pre-GATTletter will contain a statement
to the effect that the letter does not reflect
consideration of new law changes in the
qualification requirements, except for §
1432 and, if the applicant has requested a
determination of leased employee status,
§ 1454 of SBJPA.
.03 The procedures described in sec-
tion 6.03 of Rev. Proc. 98–14, regarding
applications filed for plans that contain
the family aggregation rules of § 414(q)-
(6) and § 401(a)(17)(A), will not apply if
the applicant requests a pre-GATTletter.
.04 This modification does not affect
the provisions of Rev. Proc. 98–14 that
apply to determination letter applications
filed by adopters of M&Pand regional
prototype plans or to applications for
opinion, notification, or advisory letters.
Thus, for example, applications for opin-
ion, notification, and advisory letters that
are filed on or after April 27, 1998, will in
all cases be reviewed taking into account
the requirements of the new law.
SECTION 4. EFFECTON OTHER
DOCUMENTS
Rev. Proc. 98–14 is modified.
SECTION 5. EFFECTIVE DATE
This revenue procedure is effective
with respect to determination letter appli-
cations that are filed on or after April 27,
1998.
DRAFTING INFORMATION
The principal author of this revenue
procedure is James Flannery of the Em-
ployee Plans Division. For further infor-
mation regarding this revenue procedure,
contact the Employee Plans Division’s
telephone assistance service between the
hours of 1:30 and 3:30 p.m. Eastern time,
Monday through Thursday, on (202) 622-
6074/75. (These telephone numbers are
not toll-free.)
Part III. Administrative, Procedural, and Miscellaneous
IRB 1998-40 9/30/98 12:00 PM Page 9

October 5, 1998101998–40 I.R.B.
Notice of Proposed Rulemaking
and Notice of Public Hearing
Section 411(d)(6) Protected
Benefits (Taxpayer Relief Act of
1997); Qualified Retirement
Plan Benefits
REG–101363–98
AGENCY: Internal Revenue Service
(IRS), Treasury.
ACTION: Notice of proposed rulemak-
ing by cross-reference to temporary regu-
lations.
SUMMARY: In T.D. 8781, page 4, the
IRS is issuing temporary regulations pro-
viding for changes to the rules regarding
qualified retirement plan benefits that are
protected from reduction by plan amend-
ment, that have been made necessary by
the Taxpayer Relief Act of 1997. The text
of those temporary regulations also serves
as the text of these proposed regulations.
DATES: Written comments and requests
for a public hearing must be received by
December 3, 1998.
ADDRESSES: Send submissions to:
CC:DOM:CORP:R (REG–101363–98),
room 5228, Internal Revenue Service,
POB 7604, Ben Franklin Station, Wash-
ington, DC 20044. Submissions may be
hand delivered between the hours of 8
a.m. and 5 p.m. to: CC:DOM:CORP:R
(REG–101363–98), Courier’s Desk, In-
ternal Revenue Service, 1111 Constitution
Avenue NW., Washington, DC. Alterna-
tively, taxpayers may submit comments
electronically via the internet by selecting
the “Tax Regs” option on the IRS Home
Page, or by submitting comments directly
to the IRS internet site at http://www.irs/
ustreas.gov/prod/tax_regs/comments.html.
FOR FURTHER INFORMATION CON-
TACT: Concerning the regulations, Linda
S. F. Marshall, (202) 622-6030 (not a toll-
free call); concerning submissions,
Michael Slaughter, (202) 622-7190 (not a
toll-free call).
SUPPLEMENTARYINFORMATION:
Background
Temporary regulations in T.D. 8781
amend the Income Tax Regulations (26
CFR part 1) relating to section 411(d)(6),
to provide for changes that have been
made necessary by the Taxpayer Relief
Act of 1997 (TRA’97), Public Law
105–34, 111 Stat. 788 (1997). The tem-
porary regulations change the existing
regulations to conform with the TRA’97
rules regarding in-kind distribution re-
quirements for certain employee stock
ownership plans, and specify the time pe-
riod during which certain plan amend-
ments for which relief has been granted
by TRA’97 may be made without violat-
ing the prohibition against plan amend-
ments that reduce accrued benefits.
The text of those temporary regulations
also serves as the text of these proposed
regulations. The preamble to the tempo-
rary regulations explains the temporary
regulations.
Special Analyses
It has been determined that this notice
of proposed rulemaking is not a signifi-
cant regulatory action as defined in EO
12866. Therefore, a regulatory assess-
ment is not required. It also has been de-
termined that section 553(b) of the Ad-
ministrative Procedure Act (5 U.S.C.
chapter 5) does not apply to these regula-
tions, and because the regulation does not
impose a collection of information on
small entities, the Regulatory Flexibility
Act (5 U.S.C. chapter 6) does not apply.
Pursuant to section 7805(f) of the Internal
Revenue Code, this notice of proposed
rulemaking will be submitted to the Chief
Counsel for Advocacy of the Small Busi-
ness Administration for comment on its
impact on small business.
Comments and Requests for a Public
Hearing
Before these proposed regulations are
adopted as final regulations, considera-
tion will be given to any written com-
ments (a signed original and eight (8)
copies) that are submitted timely to the
IRS. All comments will be available for
public inspection and copying. Apublic
hearing may be scheduled if requested in
writing by any person that timely submits
written comments. If a public hearing is
scheduled, notice of the date, time, and
place for the hearing will be published in
the Federal Register.
Drafting Information
The principal author of these regula-
tions is Linda S. F. Marshall, Office of the
Associate Chief Counsel (Employee Ben-
efits and Exempt Organizations. How-
ever, other personnel from the IRS and
Treasury Department participated in their
development.
*****
Proposed Amendments to the Regulations
Accordingly, 26 CFR part 1 is pro-
posed to be amended as follows:
PART1—INCOME TAXES
Paragraph 1. The authority citation for
part 1 continues to read in part as follows:
Authority: 26 U.S.C. 7805 * * *
Par. 2. Section 1.411(d)–4 is amended
by:
1. Revising paragraph (d)(1)(ii) of
Q&A-2.
2. Adding Q&A-11.
The addition and revisions read as fol-
lows:
§1.411(d)–4 Section 411(d)(6) protected
benefits.
* * * * *
Q&A-2 * * *
(d)(1)(ii) [The text of proposed para-
graph (d)(1)(ii) of Q&A-2 is the same as
the text of §1.411(d)–4TQ&A-2(d)(1)(ii)
published in T.D. 8781.]
* * * * *
Q&A-11 [The text of proposed Q&A-
11 is the same as the text of §1.411(d)–4T
Q&A-11 published in T.D. 8781.]
Michael P. Dolan,
Deputy Commissioner of
Internal Revenue.
Part IV. Items of General Interest
IRB 1998-40 9/30/98 12:01 PM Page 10

1998–40 I.R.B.11October 5, 1998
(Filed by the Office of the Federal Register on
September 8, 1998, 8:45 a.m., and published in the
issue of the Federal Register for September 9, 1998,
63 F.R. 47214)
Pending Finalization of
Proposed Regulations Regarding
Timing Requirements for
Satisfying Notice and Consent
Requirements Under Sections
411 and 417 of the Code
Announcement 98–87
The Internal Revenue Service and the
Department of the Treasury intend to take
into account public comments that are
currently being received regarding the use
of new technologies (sometimes referred
to as “paperless” technologies) in the ad-
ministration of qualified plans when
amending and finalizing proposed regula-
tions relating to notice and consent re-
quirements under sections 411(a)(11) and
417 of the Internal Revenue Code (the
“Code”). The Service and Treasury in-
tend to finalize these regulations in the
near future. In the meanwhile, plan spon-
sors may continue to rely on these regula-
tions as proposed.
Background
Anotice of proposed rulemaking (EE–
24–93) containing proposed amendments
to the Income Tax Regulations under sec-
tions 411(a)(11) and 417 of the Code
(that would amend section 1.411(a)–
11(c)(2) and (8) and section 1.417(e)–
1(b)(3) and (4)) was published in the Fed-
eral Register(60 F.R. 49236) on Septem-
ber 22, 1995. Temporary Income Tax
Regulations (T.D. 8620) under sections
411(a)(11) and 417 (section 1.411(a)–
11T(c)(2) and (8) and section 1.417(e)–
1T(b)(3) and (4)) were published on the
same day (60 F.R. 49218). The text of
the proposed regulations and temporary
regulations is the same. Under section
7805(e), temporary regulations expire
within three years after issuance.
The proposed and temporary regula-
tions set forth rules concerning the timing
requirements for satisfying the notice and
consent requirements under sections
411(a)(11) and 417 of the Code in con-
nection with distributions from qualified
plans. The regulations did not provide
guidance on the use of paperless tech-
nologies, although the preamble to the
regulations invited comments on possible
modifications to the notice and consent
requirements to accommodate paperless
technologies, if adequate safeguards are
provided.
Section 1510 of the Taxpayer Relief
Act of 1997, Pub. L. 105–34, provides
that the Secretary of the Treasury and the
Secretary of Labor each shall issue guid-
ance designed to interpret the notice, elec-
tion, consent, disclosure, and time re-
quirements (and related recordkeeping
requirements) under the Code and the
Employee Retirement Income Security
Act of 1974 relating to retirement plans as
applied to the use of new technologies by
plan sponsors and administrators. Section
1510 requires the guidance to maintain
the protection of the rights of participants
and beneficiaries. Announcement 98–62,
1998–29 I.R.B. 13, requested public com-
ments, by October 5, 1998, on the use of
paperless technologies and, among other
issues, the application of these technolo-
gies to the notice and consent require-
ments under sections 411(a)(11) and 417.
Reliance on Proposed Regulations
The Service and Treasury plan to issue
amended and final regulations relating to
the timing requirements for satisfying the
notice and consent requirements under
sections 411(a)(11) and 417 of the Code
only after careful consideration of the
public comments on paperless technolo-
gies received by October 5, 1998. Ac-
cordingly, it is intended that the tempo-
rary regulations under sections 411(a)(11)
and 417 (section 1.411(a)–11T(c)(2) and
(8) and section 1.417(e)–1T(b)(3) and
(4)) will not be finalized prior to their au-
tomatic expiration under section 7805(e).
Pursuant to this announcement, plan
sponsors may rely on the proposed regu-
lations under sections 411(a)(11) and 417
(that would amend section 1.411(a)–
11(c)(2) and (8) and section 1.417(e)–
1(b)(3) and (4)) until the proposed regula-
tions are amended or finalized.
IRS Announces New
Procedures For Handling
Matters In Bankruptcy
Announcement 98–89
The Internal Revenue Service has un-
dertaken a new initiative to improve its
procedures for handling bankruptcy
cases. The new procedures are intended
to minimize the likelihood that IRS col-
lection actions will inadvertently violate
the bankruptcy laws, to facilitate prompt
correction of any violations that do occur,
and to provide an administrative process
for handling any claims for damages
against the IRS that arise from such viola-
tions.
The initiative includes new administra-
tive measures to speed the processing of
bankruptcy matters. The IRS has desig-
nated specific points of contact who will
coordinate the handling of violations of
the automatic stay and the discharge in-
junction of the bankruptcy laws. These
contact points will be part of the Special
Procedures Function (SPF) in the local
IRS Collection Division. SPF will expe-
ditiously handle these cases according to
specific time guidelines in order to ensure
compliance with the bankruptcy laws.
These procedures will be reflected in the
next version of IRM Part VBankruptcy
Handbook 5.9. In addition, the IRS is no-
tifying bankruptcy practitioners through-
out the country of the address in each dis-
trict to which bankruptcy petitions and all
other bankruptcy correspondence should
be sent.
The initiative also provides for a pilot
program to test new administrative proce-
dures for handling any claims for dam-
ages debtors may have in cases where the
IRS fails to properly comply with the
bankruptcy laws. Under Section 7433 of
the Internal Revenue Code, as amended
by the Internal Revenue Service Reform
and Restructuring Act of 1998, debtors
may be entitled to recover damages for
actual economic losses they sustain as a
result of willful violations of the bank-
ruptcy laws by the IRS. Attorney’s fees in
these cases may also be available pur-
suant to Internal Revenue Code Section
7430.
While the new procedures for process-
ing bankruptcy cases are intended to min-
imize any such violations, the IRS be-
lieves it is appropriate to test a simplified
administrative process for handling cases
in which debtors believe they have suf-
fered damages because of improper IRS
actions. Under this process, debtors may
elect to file claims for damages with the
local SPF office rather than with the
IRB 1998-40 9/30/98 12:01 PM Page 11

October 5, 1998121998–40 I.R.B.
bankruptcy court. Claims for damages
must be made in writing and must include
supporting documentation requested by
the SPF office. SPF will evaluate and re-
spond to these claims within sixty days.
The IRS will be undertaking outreach
efforts to explain its new procedures to
bankruptcy practitioners and other inter-
ested parties across the country. For addi-
tional information about these new proce-
dures, contact the local Special
Procedures Function office.
Foundations Status of Certain
Organizations
Announcement 98–91
The following organizations have
failed to establish or have been unable to
maintain their status as public charities or
as operating foundations. Accordingly,
grantors and contributors may not, after
this date, rely on previous rulings or des-
ignations in the Cumulative List of Orga-
nizations (Publication 78), or on the pre-
sumption arising from the filing of notices
under section 508(b) of the Code. This
listing does notindicate that the organiza-
tions have lost their status as organiza-
tions described in section 501(c)(3), eligi-
ble to receive deductible contributions.
Former Public Charities.The following
organizations (which have been treated as
organizations that are not private founda-
tions described in section 509(a) of the
Code) are now classified as private foun-
dations:
Abundant Waters Inc., New York, NY
Akron Coalition for Education
Foundation, Akron, OH
American Computer Scientists
Association, Inc., Cranford, NJ
Belize Foundation, Detroit, MI
Berdan Support Fund, Mendenhall, PA
Bonsall Village Inc., Yeadon, PA
Center for Health and Long Term Care
Research, Inc., Waltham, MA
Chicago Community Outreach, Chicago,
IL
Christ Crusade Community Center,
Fayetteville, NC
Christion Legal Services Inc., Bangor, MI
Coastnet, Beaufort, SC
Corestates Community Development
Corporation, Philadelphia, PA
Cross Keys Retirement, Inc., Sewell, NJ
Earl Kouba Memorial Foundation,
Kasson, MN
Earth Preservation Funds, Inc.,
Milwaukee, WI
Families United By Adoption, Berlin, NJ
Film Foundation Inc., New York, NY
For ABetter Life Foundation, Chicago,
IL
Freed Hurwitz Memorial Fund, Inc.,
Hollywood, FL
Fritz & Alice Anton Scholarship Fund,
San Marcos, TX
God Rules Ministry, Inc., Baton Rouge,
LA
Goddard Historical & Genealogical
Society Inc., Stow, OH
Good Stewards, Woodbury, MN
Gulf Coast Research and Development
Laboratory Inc., Tampa, FL
Haviland Heartland Housing, Haviland
KS
Hollyfield Foundation, Houston, TX
Indiana Civic and Cultural Association,
Incorporated, Indiana, PA
Jewish Radical Education Project, Inc.,
New York, NY
Johns Gospel Mission, Troy, MI
Joseph Ministries Inc., Nixa, MO
Juanita Maldon Foundation, Richmond,
CA
Kate Sidran Family Foundation, Dallas,
TX
King City Police Activities League, Inc.,
King City, CA
Largess, South Euclid, OH
Living God Ministries, Inc., Bastrop,
TX
Lutheran Housing Service Number 8
Incorporated, Toledo, OH
Lutheran Radio Incorporated, Nevada, IA
Mesoamerican Research Foundation, Salt
Lake City, UT
Na Vision Ministries Inc., Sunrise, FL
Network 2000, Kansas City, KS
Ontohealth, Inc., Xenia, OH
Ozark Mountain Adventure, Fort Smith,
AR
Paula Martin Jones Charities, Inc.,
Longview, TX
People Against Racism &
Discrimination, Calumet, IL
Raptor Education Group Inc., Antigo,
WI
Somerville Community Schools Council
Inc., Somerville, MA
Special Program for Adolescents,
Evanston, IL
Sports Pride of America Foundation, Inc.,
Raleigh, NC
Sterling Foundation Inc., Pittsburgh, PA
Sthle Wildlife Foundation, Brewer, ME
Tanzania Children Development
Association, Hazel Crest, IL
Think First of New York, Inc.,
Schenectady, NY
The Silver Spring Historical Trust, Cape
Girardeau, MO
The Sumter Foundation Inc., Americus,
GA
Trades Awareness Program Inc., Franklin,
WI
Union Missionary Baptist Neighborhood
Redevelopment Corp., Lansing, MI
United Students Association, Inc.,
Chestnut Hill, MA
Urban Ministries Development
Corporation, Columbus, OH
Versin House Inc. Community/Living
Facility, Dolton, IL
Victory Home Health Hospice, Las
Vegas, NM
Wisconsin Rural Leadership Program,
Inc., Madison, WI
World Farmers Hall of Fame, Pawnee
City, NE
If an organization listed above submits
information that warrants the renewal of
its classification as a public charity or as a
private operating foundation, the Internal
Revenue Service will issue a ruling or de-
termination letter with the revised classi-
fication as to foundation status. Grantors
and contributors may thereafter rely upon
such ruling or determination letter as pro-
vided in section 1.509(a)–7 of the Income
Tax Regulations. It is not the practice of
the Service to announce such revised clas-
sification of foundation status in the Inter-
nal Revenue Bulletin.
IRB 1998-40 9/30/98 12:01 PM Page 12

1998–40 I.R.B.13October 5, 1998
NameAddressDesignationEffective Date
Galt, Edward G.Monterey, CACPAOctober 25, 1997
Lopez, Andrew L.Albuquerque, NMCPADecember 11, 1997
Branch, Jimmie L.Jacksonville, FLCPAJanuary 15, 1998
Harrison, Rebecca A.Carmichael, CAEnrolled AgentMarch 4, 1998
Mayer, Robert J.Wexford, PACPAJune 4, 1998
Announcement of the Disbarment and Suspension of Attorneys, Certified
Public Accountants, Enrolled Agents, and Enrolled Actuaries From
Practice Before the Internal Revenue Service
Under 330, Title 31 of the United
States Code, the Secretary of the Trea-
sury, after due notice and opportunity for
hearing, is authorized to suspend or dis-
bar from practice before the Internal Rev-
enue Service any person who has vio-
lated the rules and regulations governing
the recognition of attorneys, certified
public accountants, enrolled agents, or
enrolled actuaries to practice before the
Internal Revenue Service.
Attorneys, certified public accountants,
enrolled agents, and enrolled actuaries are
prohibited in any Internal Revenue Service
matter from directly or indirectly employ-
ing, accepting assistance from, being em-
ployed by, or sharing fees with, any practi-
tioner disbarred or suspended from prac-
tice before the Internal Revenue Service.
To enable attorneys, certified public ac-
countants, enrolled agents, and enrolled
actuaries to identify such disbarred or sus-
pended practitioners, the Director
of Practice will announce in the Internal
Revenue Bulletin the names and ad-
dresses of practitioners who have been
suspended from such practice, their desig-
nation as attorney, certified public ac-
countant, enrolled agent, or enrolled actu-
ary, and date or period of suspension. This
announcement will appear in the weekly
Bulletin at the earliest practicable date
after such action and will continue to ap-
pear in the weekly Bulletins for five suc-
cessive weeks or for as many weeks as is
practicable for each attorney, certified
public accountant, enrolled agent, or en-
rolled actuary so suspended or disbarred
and will be consolidated and published in
the Cumulative Bulletin.
After due notice and opportunity for
hearing before an administrative law
judge, the following individuals have
been disbarred from further practice be-
fore the Internal Revenue Service:
IRB 1998-40 9/30/98 12:01 PM Page 13

October 5, 1998141998–40 I.R.B.
Under title 31 of the Code of Federal
Regulations, section 10.76, the Director
of Practice is authorized to immediately
suspend from practice before the Internal
Revenue Service any practitioner who,
within five years from the date the expe-
dited proceeding is instituted, (1) has had
a license to practice as an attorney, certi-
fied public accountant, or actuary sus-
pended or revoked for cause; or (2) has
been convicted of any crime under title 26
of the United States Code or, of a felony
under title 18 of the United States Code
involving dishonesty or breach of trust.
Attorneys, certified public accountants,
enrolled agents, and enrolled actuaries are
prohibited in any Internal Revenue Service
matter from directly or indirectly employ-
ing, accepting assistance from, being em-
ployed by, or sharing fees with, any practi-
tioner disbarred or suspended from practice
before the Internal Revenue Service.
To enable attorneys, certified public ac-
countants, enrolled agents, and enrolled ac-
tuaries to identify practitioners under expe-
dited suspension from practice before the
Internal Revenue Service, the Director of
Practice will announce in the Internal Rev-
enue Bulletin the names and addresses of
practitioners who have been suspended
from such practice, their designation as at-
torney, certified public accountant, en-
rolled 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 ac-
tion 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 sus-
pended and will be consolidated and pub-
lished in the Cumulative Bulletin.
The following individuals have been
placed under suspension from practice be-
fore the Internal Revenue Service by virtue
of the expedited proceeding provisions of
the applicable regulations:
Announcement of the Expedited Suspension of Attorneys, Certified Public
Accountants, Enrolled Agents, and Enrolled Actuaries From Practice
Beforethe Internal Revenue Service
NameAddressDesignationDate of Suspension
Clark, SheilaHouston, TXCPAIndefinite from April 21, 1998
Kimes, Larry W.Austin, TXAttorneyIndefinite from May 5, 1998
Braiteman, SheldonBaltimore, MDAttorneyIndefinite from June 5, 1998
Pollack, MichaelGuttenberg, NJAttorneyIndefinite from June 11, 1998
Eichenbaum, IrvingHuntingdon Valley, PACPAIndefinite from August 4, 1998
Corley, Francis R.Irmo, SCCPAIndefinite from August 4, 1998
Scott, RichardLincoln, NEAttorneyIndefinite from August 4, 1998
Wilson, Douglas D.Roanoke, VAAttorneyIndefinite from August 4, 1998
Watkins, Brian R.Lincoln, NEAttorneyIndefinite
Congdon Jr., Byron E.San Bernadino, CAAttorneyIndefinite from August 4, 1998
Abrams, RobertElmsford, NYCPAIndefinite from August 4, 1998
Robinson, DoaneRapid City, SDCPAIndefinite from August 4, 1998
Szarwark, ErnestNashville, TNAttorneyIndefinite from August 4, 1998
Roberts, MarkNorman, OKCPAIndefinite from August 4, 1998
Wood, Randall K.Springfield, MOAttorneyIndefinite from August 5, 1998
Chappell, Ronald L.Antelope, CACPAIndefinite from August 12, 1998
IRB 1998-40 9/30/98 12:01 PM Page 14

1998–40 I.R.B.15October 5, 1998
NameAddressDesignationDate of Suspension
Makula, John G.Park Ridge, ILCPAApril 1, 1998 to March 31, 2003
Slomski, MichaelGross Pointe Woods, MICPAApril 1, 1998 to March 31, 2001
Bozeman Jr., T. AlvinSylvester, GACPAMay 22, 1998 to November 21, 1999
Parness, Richard A.Westfield, NJCPAJune 1, 1998 to December 31, 1998
Register, BillyHavana, FLCPAIndefinite from July 10, 1998
Cooper, Michael E.Edina, MNCPAAugust 19, 1998 to February 18, 1999
Minello, Michael J.Clarks Summit, PACPAAugust 28, 1998 to April 27, 2001
Holden, William W.Fairfield, CTCPASeptember 1, 1998 to March 31, 1999
Freeman, SamuelBedford, NHCPASeptember 1, 1998 to August 31, 1999
Anders, KevinWilliamport, MDCPASeptember 1, 1998 to August 31, 2001
Breed, Robert M.Concord, MACPASeptember 1, 1998 to February 28, 2001
Sandirk, Paula BrooksChehalis, WACPANovember 1, 1998 to April 30, 2000
Neuhaus Jr., GeorgeBrewster, NYCPANovember 1, 1998 to April 30, 2000
Announcement of the Consent Voluntary Suspension of Attorneys,
Certified Public Accountants, Enrolled Agents, and Enrolled Actuaries
From Practice Beforethe Internal Revenue Service
Under 31 Code of Federal Regulations,
Part 10, an attorney, certified public ac-
countant, enrolled agent, or enrolled ac-
tuary, in order to avoid the institution or
conclusion of a proceeding for his disbar-
ment or suspension from practice before
the Internal Revenue Service, may offer
his consent to suspension from such prac-
tice. The Director of Practice, in his dis-
cretion, may suspend an attorney, certi-
fied public accountant, enrolled agent, or
enrolled actuary in accordance with the
consent offered.
Attorneys, certified public accountants,
enrolled agents, and enrolled actuaries are
prohibited in any Internal Revenue Ser-
vice matter from directly or indirectly em-
ploying, accepting assistance from, being
employed by, or sharing fees with any
practitioner disbarred or suspended from
practice before the Internal Revenue Ser-
vice.
To enable attorneys, certified public ac-
countants, enrolled agents, and enrolled
actuaries to identify practitioners under
consent suspension from practice before the
Internal Revenue Service, the Director
of Practice will announce in the Internal
Revenue Bulletin the names and ad-
dresses of practitioners who have been
suspended from such practice, their desig-
nation as attorney, certified public ac-
countant, enrolled agent, or enrolled actu-
ary, and date or period of suspension. This
announcement will appear in the weekly
Bulletin at the earliest practicable date
after such action and will continue to ap-
pear in the weekly Bulletins for five suc-
cessive weeks or for as many weeks as is
practicable for each attorney, certified
public accountant, enrolled agent, or en-
rolled actuary so suspended and will be
consolidated and published in the Cumu-
lative Bulletin.
The following individuals have been
placed under consent suspension from
practice before the Internal Revenue Ser-
vice:
IRB 1998-40 9/30/98 12:01 PM Page 15

October 5, 1998161998–40 I.R.B.
Revenue rulings and revenue procedures
(hereinafter referred to as “rulings”) that
have an effect on previous rulings use the
following defined terms to describe the
effect:
Amplified describes a situation where
no change is being made in a prior pub-
lished position, but the prior position is
being extended to apply to a variation of
the fact situation set forth therein. Thus,
if an earlier ruling held that a principle
applied to A, and the new ruling holds
that the same principle also applies to B,
the earlier ruling is amplified. (Compare
with modified, below).
Clarified is used in those instances
where the language in a prior ruling is
being made clear because the language
has caused, or may cause, some confu-
sion. It is not used where a position in a
prior ruling is being changed.
Distinguisheddescribes a situation
where a ruling mentions a previously
published ruling and points out an essen-
tial 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 Abut not
to B, and the new ruling holds that it ap-
plies to both Aand B, the prior ruling is
modified because it corrects a published
position. (Compare with amplified and
clarified, above).
Obsoleted describes a previously pub-
lished ruling that is not considered deter-
minative with respect to future transac-
tions. This term is most commonly used
in a ruling that lists previously published
rulings that are obsoleted because of
changes in law or regulations. Aruling
may also be obsoleted because the sub-
stance has been included in regulations
subsequently adopted.
Revoked describes situations where the
position in the previously published rul-
ing is not correct and the correct position
is being stated in the new ruling.
Superseded describes a situation where
the new ruling does nothing more than
restate the substance and situation of a
previously published ruling (or rulings).
Thus, the term is used to republish under
the 1986 Code and regulations the same
position published under the 1939 Code
and regulations. The term is also used
when it is desired to republish in a single
ruling a series of situations, names, etc.,
that were previously published over a pe-
riod of time in separate rulings. If the
new ruling does more than restate the
substance of a prior ruling, a combination
of terms is used. For example, modified
and superseded describes a situation
where the substance of a previously pub-
lished 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 super-
seded.
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 pub-
lished 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 for-
merly 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 Procedral 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.
Definition of Terms
IRB 1998-40 9/30/98 12:01 PM Page 16

1998–40 I.R.B.17October 5, 1998
Numerical Finding List
1
Bulletins 1998–29 through 39
Announcements:
98–62, 1998–29 I.R.B. 13
98–68, 1998–29 I.R.B. 14
98–69, 1998–30 I.R.B. 16
98–70, 1998–30 I.R.B. 17
98–71, 1998–30 I.R.B. 17
98–72, 1998–31 I.R.B.14
98–73, 1998–31 I.R.B.14
98–74, 1998–31 I.R.B.15
98–75, 1998–31 I.R.B.15
98–76, 1998–32 I.R.B.64
98–77, 1998–34 I.R.B.30
98–78, 1998–34 I.R.B.30
98–79, 1998–34 I.R.B.31
98–80, 1998–34 I.R.B.32
98–81, 1998–36 I.R.B.35
98–82, 1998–35 I.R.B. 17
98–83, 1998–36 I.R.B. 36
98–84, 1998–38 I.R.B.30
98–85, 1998–38 I.R.B.30
98–86, 1998–38 I.R.B.31
Court Decisions:
2063, 1998–36 I.R.B. 13
2064, 1998–37 I.R.B. 4
2065, 1998–39 I.R.B.7
Notices:
98–36, 1998–29 I.R.B. 8
98–37, 1998–30 I.R.B.13
98–38, 1998–34 I.R.B.7
98–39, 1998–33 I.R.B.11
98–40, 1998–35 I.R.B. 7
98–41, 1998–33 I.R.B.12
98–42, 1998–33 I.R.B.12
98–43, 1998–33 I.R.B.13
98–44, 1998–34 I.R.B.7
98–45, 1998–35 I.R.B.7
98–46, 1998–36 I.R.B. 21
98–47, 1998–37 I.R.B. 8
98–48, 1998–39 I.R.B.17
98–49, 1998–38 I.R.B.5
Railroad Retirement Quarterly Rate:
1998–31 I.R.B. 7
Proposed Regulations:
REG–209446–82, 1998–36 I.R.B. 24
REG–209060–86, 1998–39 I.R.B. 18
REG–209813–96, 1998–35 I.R.B. 9
REG–246256–96, 1998–34 I.R.B.9
REG–104641–97, 1998–29 I.R.B. 9
REG–104565–97, 1998–39 I.R.B.21
REG–106177–97, 1998–37 I.R.B.33
REG–115446–97, 1998–36 I.R.B. 23
REG–116608–97, 1998–29 I.R.B. 12
REG–118926–97, 1998–39 I.R.B.23
REG–118966–97, 1998–39 I.R.B.29
REG–119227–97, 1998–30 I.R.B. 13
REG–110332–98, 1998–33 I.R.B.18
REG–110403–98, 1998–29 I.R.B.11
REG–115393–98, 1998–39 I.R.B.34
Revenue Procedures:
98–40, 1998–32 I.R.B. 6
98–41, 1998–32 I.R.B. 7
98–42, 1998–28 I.R.B. 9
98–43, 1998–29 I.R.B. 8
98–44, 1998–32 I.R.B. 11
98–45, 1998–34 I.R.B.8
98–46, 1998–36 I.R.B. 21
98–47, 1998–37 I.R.B. 8
98–48, 1998–38 I.R.B.7
98–49, 1998–37 I.R.B. 9
98–50, 1998–38 I.R.B.8
98–51, 1998–38 I.R.B.20
98–52, 1998–37 I.R.B. 12
Revenue Rulings:
98–34, 1998–31 I.R.B. 12
98–35, 1998–30 I.R.B. 4
98–36, 1998–31 I.R.B.6
98–37, 1998–32 I.R.B.5
98–38, 1998–32 I.R.B.4
98–39, 1998–33 I.R.B.4
98–40, 1998–33 I.R.B.4
98–41, 1998–35 I.R.B.6
98–42, 1998–35 I.R.B. 5
98–43, 1998–36 I.R.B. 9
98–44, 1998–37 I.R.B.4
98–45, 1998–38 I.R.B.4
98–46, 1998–39 I.R.B. 10
98–47, 1998–39 I.R.B. 4
98–48, 1998–39 I.R.B. 6
Treasury Decisions:
8771, 1998–29 I.R.B. 6
8772, 1998–31 I.R.B. 8
8773, 1998–29 I.R.B. 4
8774, 1998–30 I.R.B. 5
8775, 1998–31 I.R.B.4
8776, 1998–33 I.R.B.6
8777, 1998–34 I.R.B.4
8778, 1998–36 I.R.B. 4
8779, 1998–36 I.R.B. 11
8780, 1998–39 I.R.B.14
1
Acumulative list of all revenue rulings, revenue
procedures, Treasury decisions, etc., published in
Internal Revenue Bulletins 1998–1 through 1998–28
will be found in Internal Revenue Bulletin 1998–29,
dated July 20, 1998.
IRB 1998-40 9/30/98 12:01 PM Page 17

October 5, 1998181998–40 I.R.B.
Finding List of Current Action on
Previously Published Items
1
Bulletins 1998–29 through 39
*Denotes entry since last publication
Notices:
87–13
Modified by
98–49, 1998–38 I.R.B. 5
87–16
Modified by
98–49, 1998–38 I.R.B. 5
Revenue Procedures:
83–58
Obsoleted by
98–37, 1998–32 I.R.B. 5
97–60
Superseded by
98–50, 1998–38 I.R.B. 8
97–61
Superseded by
98–51, 1998–38 I.R.B. 20
Revenue Rulings:
57–271
Obsoleted by
98–37, 1998–32 I.R.B. 5
67–301
Modified by
98–41, 1998–35 I.R.B. 6
70–225
Obsoleted by
98–44, 1998–37 I.R.B. 4
71–277
Obsoleted by
98–37, 1998–32 I.R.B. 5
71–434
Obsoleted by
98–37, 1998–32 I.R.B. 5
71–574
Obsoleted by
98–37, 1998–32 I.R.B. 5
72–75
Obsoleted by
98–37, 1998–32 I.R.B. 5
72–120
Obsoleted by
98–37, 1998–32 I.R.B. 5
72–121
Obsoleted by
98–37, 1998–32 I.R.B. 5
72–122
Obsoleted by
98–37, 1998–32 I.R.B. 5
74–77
Obsoleted by
98–37, 1998–32 I.R.B. 5
75–19
Obsoleted by
98–37, 1998–32 I.R.B. 5
76–562
Obsoleted by
98–37, 1998–32 I.R.B. 5
Revenue Rulings—Continued
77–214
Obsoleted by
98–37, 1998–32 I.R.B. 5
79–106
Obsoleted by
98–37, 1998–32 I.R.B. 5
83–113
Obsoleted by
98–37, 1998–32 I.R.B. 5
85–143
Obsoleted by
98–37, 1998–32 I.R.B. 5
88–8
Obsoleted by
98–37, 1998–32 I.R.B. 5
88–76
Obsoleted by
98–37, 1998–32 I.R.B. 5
88–79
Obsoleted by
98–37, 1998–32 I.R.B. 5
93–4
Obsoleted by
98–37, 1998–32 I.R.B. 5
93–5
Obsoleted by
98–37, 1998–32 I.R.B. 5
93–6
Obsoleted by
98–37, 1998–32 I.R.B. 5
93–30
Obsoleted by
98–37, 1998–32 I.R.B. 5
93–38
Obsoleted by
98–37, 1998–32 I.R.B. 5
93–49
Obsoleted by
98–37, 1998–32 I.R.B. 5
93–50
Obsoleted by
98–37, 1998–32 I.R.B. 5
93–53
Obsoleted by
98–37, 1998–32 I.R.B. 5
93–81
Obsoleted by
98–37, 1998–32 I.R.B. 5
93–91
Obsoleted by
98–37, 1998–32 I.R.B. 5
93–92
Obsoleted by
98–37, 1998–32 I.R.B. 5
93–93
Obsoleted by
98–37, 1998–32 I.R.B. 5
94–5
Obsoleted by
98–37, 1998–32 I.R.B. 5
Revenue Rulings—Continued
94–6
Obsoleted by
98–37, 1998–32 I.R.B. 5
94–30
Obsoleted by
98–37, 1998–32 I.R.B. 5
94–51
Obsoleted by
98–37, 1998–32 I.R.B. 5
94–79
Obsoleted by
98–37, 1998–32 I.R.B. 5
95–2
Obsoleted by
98–37, 1998–32 I.R.B. 5
95–9
Obsoleted by
98–37, 1998–32 I.R.B. 5
97–37
Obsoleted by
98–39, 1998–33 I.R.B. 4
1
Acumulative finding list for previously published
items mentioned in Internal Revenue Bulletins
1998–1 through 1998–28 will be found in Internal
Revenue Bulletin 1998–29, dated July 20, 1998.
IRB 1998-40 9/30/98 12:01 PM Page 18

1998–40 I.R.B.19October 5, 1998
Index
Internal Revenue Bulletins
1998–1 Through 1998–39
The abbreviation and number in paren-
thesis following the index entry refer to
the specific item; numbers in roman and
italic type following the parenthesis refer
to the Internal Revenue Bulletin in which
the item may be found and the page
number on which it appears.
Key to Abbreviations:
RRRevenue Ruling
RPRevenue Procedure
TDTreasury Decision
CDCourt Decision
PLPublic Law
EOExecutive Order
DODelegation Order
TDOTreasury Department Order
TCTax Convention
SPRStatement of Procedural
Rules
PTEProhibited Transaction
Exemption
EMPLOYMENT TAX
Magnetic media; electronic filing:
1998 Form W–4 specifications (RP26)
13, 26
1998 Form 8027 (RP52) 37, 12
Proposed regulations:
26 CFR 31.3121(v)(2)–1, revised;
FICAand FUTAtaxation of amounts
under employee benefit plans (REG–
209484–87; REG–209807–95) 8, 40
26 CFR 31.6053–1, –4; electronic tip
reports (REG–104691–97) 11, 13
Student FICAexception (RP16) 5,19
26 CFR 31.6302–1(f)(4), revised; fed-
eral employment tax deposits de
minimisrule (REG–110403–98) 29,
11
Railroad retirement; rate determination;
quarterly beginning April 1, 1998 and
July 1, 1998 31, 7
Regulations:
26 CFR 1.6045–1T, –2T, removed;
1.6045–1, –2, amended; 301.6011–2,
amended; 301.6011–2T, removed;
magnetic filing requirements for in-
formation returns (TD 8772) 31, 8
26 CFR 31.6302–1(f)(4), 31.6302–1T,
added; federal employment tax de-
posits de minimisrule (TD 8771) 29,
6
EMPLOYMENT TAX—
Continued
Worker classification; section 530; Tax
Court review (Notice 43) 33, 13
ESTATE TAX
Regulations:
26 CFR 20.2041–3, 20.2056(d)–2,
amended; 20.2046–1, revised; prop-
erty interests and disclaimer (TD
8744) 7, 20
26 CFR 20.2044–1(e), added; 20.2044–
1T, removed; 20.2056(b)–7, revised;
20.2056(b)–7T, removed; 20.2056(b)–
10, revised; 20.2056(b)–10T, re-
moved; certain property for which
marital deduction was previously al-
lowed (TD 8779) 36, 11
26 CFR 25.2702–5, –7, amended; qual-
ified prsonal residence trust, sale of
residence (TD 8743) 7, 26
26 CFR 25.2511–1, 25.2514–3,
25.2518–1, –2, amended; property
interests and disclaimers (TD 8744)
7, 20
Revocable trust; election (RP13) 4, 21
Special use value; farms; interest rates
(RR 22) 19, 5
Underpayment interest, interest expense
deduction, estates (RP15) 4, 25
Valuation of compensatory stock options
(RP34) 18, 15
EXCISE TAX
Ad valoremtax, export clause (Ct.D.
2064) 37, 4
Bows and arrows; taxable and nontaxable
articles (RR 5) 2, 20
Deposit of excise taxes, amendment (No-
tice 36) 29, 8
Federal excise taxes for consular officers
and employees, exemption (RR 24) 19, 6
Proposed regulations:
26 CFR 40.0–1T, added; 40.6011(a)–
1T, added; 40.6302(c)–2T, added;
deposits of excise taxes (REG–
102894–97) 3, 59
26 CFR 48.4052–1, added; 48.4081–1,
amended; 48.4082–6 through –10
and intermediary sections, 48.4091–
3, added; 48.4101–2, amended;
48.4101–3, 48.6427–10, –11, added;
kerosene tax, aviation fuel tax, tax
on heavy trucks and trailers (REG–
119227–97) 30, 13
26 CFR 53.4958; 301.6213–1,
301.6501(e)–1, 301.6501(n)–1,
301.7422–1, amended; 53.4958–0
through –7 and intermediary sections,
added; failure by certain charitable or-
ganizations to meet certain qualifica-
tion requirements, taxes on excess
benefit transactions (REG–246256–
96) 34, 9
26 CFR 54.4980B–1, added; group
health plans continuation coverage
requirements (REG–209485–86) 11,
21
Regulations:
26 CFR 40.0–1(a), amended; 40.6011(a)
–1(a)(2)(iii), 40.5302(c)– 1, amended,
40.6302(c)–2(b)(2)(iii), added; de-
posits of excise taxes (TD 8740) 3, 4
26 CFR 40.6011(a)–1(b)(2)(vi),
amended; 48.4082–5T, removed;
48.4082–5, added; 48.4081–1,
amended; 48.4082–5T, redesignated;
48.6416(b)(4)–1, removed; 48.6421–
3(d)(2), amended; 48.6427–3(d)(2),
amended; 48.6715–1(a)(3), revised;
48.6715–2T, removed; gasoline and
diesel fuel excise tax; special rules for
Alaska, definitions (TD 8748) 8, 24
Regulations:
26 CFR 48.4081–1T, 48.4082–6T
through –10Tand intermediary sec-
tions, 48.4091–3T, 48.4101–2T, –3T,
48.6427–10T, –11T, added; 145.4052–
1, amended; kerosene, aviation fuel,
heavy trucks and trailers tax (TD
8774) 30, 5
GIFT TAX
Nonstatutory stock option, transfer (RR
21) 18, 7
Qualifying income interest, disposition
(RR 8) 7, 24
Valuation of compensatory stock options
(RP34) 18, 15
INCOME TAX
Advance pricing agreements, small busi-
ness taxpayers (Notice 10) 6, 9
Article XIII (8) Rev. Proc. (RP21) 8, 27
Automobile owners and lessees (RP24)
10, 31;(RP30) 17,6
EXCISE TAX—Continued
IRB 1998-40 9/30/98 12:01 PM Page 19

INCOME TAX—Continued
Below-market loans; exempted loans;
second mortgage loans under the
MAHRAAct (RR 34) 31, 12
Books and records; automatic data pro-
cessing system (RP25) 11, 7
Business expenses:
Environmental remediation expendi-
tures (RP47) 37, 8
Underground waste storage tank (RR
25) 19, 4
Capital gains and charitable remainder
trusts (Notice 20) 13, 25
Classification settlement program:
Extended until further notice (Notice
21) 15, 14
Common Trust Funds, unrelated business
taxable income (RR 41) 35, 6
Deductions:
When taken:
All events test; accrued cooperative
advertising expenses (RR39) 33,
4
Definition of former Indian reservations
in Oklahoma (Notice 45) 35, 7
Disclosure authorization list (RP43) 29, 8
Distribution of stock and securities of a
newly formed controlled corporation;
limitations (RR 44) 37, 4
Domestic assets/liability and investment
yield percentages (RP31) 23, 9
Education loans (Notice 7) 3, 54
Effective date of consolidated overall for-
eign loss provisions (Notice 40) 35, 7
Elections under section 7704(g) (Notice
3) 3, 48
Electronic Federal Tax Payment System:
Batch filers and bulk filers (RP32) 17,
11
Electronic funds transfer; failure to de-
posit penalty (Notice 30) 22, 9
Employee plans:
Administrative programs; closing
agreements (RP22) 12, 11
Determination letters (RP6) 1, 183;
(RP14) 4,22
Discrimination; CODAs (Notice 1) 3,
42
Eligible deferred compensation plans
(Notice 8) 4, 6
Funding:
Full funding limitations, weighted
average interest rate for Janu-
ary 1998 (Notice 9) 4, 8; Feb-
ruary 1998 (Notice 15) 9,8;
March 1998 (Notice 18) 12,11;
April 1998 (Notice 26) 18, 14;
May 1998 (Notice 32) 22,23;
June 1998 (Notice 33) 25,10;
July 1998 (Notice 37) 30, 13;
August 1998 (Notice 44) 34,7;
September 1998 (Notice 48)
39,17
Group health plans; COBRAcontinua-
tion coverage; HIPAAportability
(Notice 12) 5, 12
Individual retirement arrangements,
Roth IRAs (Notice 49) 38, 5
Letter rulings, etc. (RP4) 1, 113
Limitations on benefits and contribu-
tions (RR 1) 2, 5
Minimum Funding Standards (RP10)
2, 35
Minimum:
Remedial amendments (RP42) 28, 9
Net unrealized appreciation; capital
gains (Notice 24) 17, 5
Qualification (Notice 29) 22, 8;
CODAs (RR 30) 25, 8
Qualification:
Church plans (Notice 39) 33, 11
Recovery of basis; retirees (Notice 2)
2, 22
Section 457 model amendments (RP
41) 32, 7
Section 457 ruling program (RP40)
32, 6
SIMPLE-IRAs (Notice 4) 2,25
Technical advice (RP5) 1, 155
User fees (RP8) 1, 225
Enhanced oil recovery credit (Notice 41)
33, 12
Environmental cleanup costs; letter
rulings (RP17) 5, 21
Exempt Organizations:
Letter rulings, etc. (RP4) 1, 113
Organizations excepted from reporting
lobbying expenditures (RP19) 7,
30
Tax consequences of physicians re-
cruitment incentives provided by
hospitals (RR 15) 12, 6
Technical advice (RP5) 1, 155
User fees (RP8) 1, 225
Failure to deposit federal tax; penalty
abatement (Notice 14) 8, 27
Foreign partnerships, reporting transfer of
property by U.S. persons (Notice 17)
11, 6
Foreign tax credit abuse (Notice 5) 3, 49
Form 1040:
e-fileprogram (RP50) 38, 8
On-line filing program (RP51) 38, 20
Fringe benefits aircraft valuation formula,
first half of 1998 (RR 14) 11, 4;
second half of 1998 (RR 40) 33,4
Fuel from a nonconventional source,
credit; section 29 inflation adjustment;
reference price for 1997 (Notice 28)
19, 7
Hybrid arrangements, treatment under
subpart F (Notice 35) 27, 35
Information reporting:
Hope Scholarship and Lifetime Learn-
ing credits (Notice 46) 36, 21
Insurance companies:
Differential earnings rate and recom-
puted differential earnings rate for
mutual life insurance companies (RR
38) 32, 4
Discounting estimated salvage recover-
able (RP12) 4, 18
Interest rate tables (RR 2) 2,15
Loss reserves; discounting unpaid
losses (RP11) 4, 9
“Reserve strengthening,” reasonable
interpretation (Ct.D. 2065) 39,7
Interest:
Investment:
Federal short-term, mid-term, and
long-term rates for January 1998
(RR4) 2, 18; February 1998 (RR
7) 6, 6; March 1998 (RR 11) 10,
13; April 1998 (RR 18) 14,22;
May (RR 23) 18,5; June 1998
(RR 28) 22,5; July 1998 (RR 33)
27, 26; August 1998 (RR 36) 31,
6; September 1998 (RR 43) 36,9
Rates, underpayments and overpay-
ments (RR 17) 13, 21; calendar
quarter beginning July 1, 1998
(RR 32) 25,4; calendar quarter
beginning October 1, 1998 (RR
46) 39,10
Inventory:
LIFO:
Automobile and truck dealers (RP
46) 36, 21
Price indexes; department stores for
November 1997 (RR 6) 4, 4; De-
cember 1997 (RR 9) 6,5; January
1998 (RR 16) 13,18; February
1998 (RR 20) 15,8; March 1998
(RR 26) 21,4; April 1998 (RR
29) 24,4; May 1998 (RR 35) 30,
4; June 1998 (RR 42) 35, 5; July
1998 (RR 48) 39,6
Price indexes; inventory price com-
putation method (RP49) 37, 9
October 5, 1998201998–40 I.R.B.
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Shrinkage estimates:
Changing method of accounting for
estimating inventory shrinkage
(RP29) 15, 22
Letter rulings, determination letters, and
information letters issued by Associate
Chief Counsel (Domestic), Associate
Chief Counsel (EBEO), Associate
Chief Counsel (Enforcement Litiga-
tion), and Associate Chief Counsel
(International) (RP1) 1, 7
Lien for taxes; validity and priority against
third parties; judgment creditor (Ct.D.
2063) 36, 13
Losses attributable to a disaster during
1997 (RR 12) 10, 5
Low-income housing tax credit (Notice
13) 6, 19; (RP45) 34,8
Satisfactory bond; “bond factor”
amounts for the period October
through December 1997 (RR 3) 2, 4;
January–March 1998 (RR 13) 11,4;
April-June 1998 (RR 31) 25,4; July-
September 1998 (RR 45) 38, 4
Magnetic media/electronic filing:
1998 Forms 1098, 1099, 5498, and
W–2G specifications (RP35) 19,
6
Form 1040NR (RP36) 23,10
Marginal production rates (Notice 42) 33,
12
Methods of accounting; involuntary
changes (Notice 31) 22, 10
Package design; amortization; capitaliza-
tion; amortizable section 197 intangible
(RP39) 26, 36
Passive foreign investment companies:
Shareholders may use rules of sec.
1.1295–1T(b)(4), (f), and (g) to tax-
able years beginning before January
1, 1998 (Notice 22) 17, 5
Private letter rulings under sections 877,
2107, and 2501(a)(3)(Notice 34) 27, 30
Proposed regulations:
26 CFR 1.32–3, added; EIC eligibility
requirements (REG–116608–97) 29,
12
26 CFR 1.72(p)–1, amended; loans to
plan participants (REG–209476–82)
8, 36
26 CFR 1.141–7, 1.142(f)(4)–1, 1.150–
5, added; 1.141–8, –15, amended;
obligations of states and political
subdivisions (REG–110965–97) 13,
42
26 CFR 1.195–1, added; election to
amortize start-up expenditures
(REG–209373–81) 14,26
26 CFR 1.356–6, added; reorganiza-
tions, nonqualified preferred stock
(REG–121755–97) 9, 13
26 CFR 1.368–1, amended; corporate
reorganizations, continuity of inter-
est (REG–120882–97) 14, 25
26 CFR 1.401(a)(9)–1, amended; quali-
fied plans and individual retirement
plans, required distributions (REG–
209463–82) 4, 27
26 CFR 1.408A–0 through –9 and in-
termediary sections, added; Roth
IRAs, questions and answers
(REG–115393–98) 39, 34
26 CFR 1.417(e)–1 and paragraph (d),
revised; 1.417(e)–1Tand paragraph
(d), revised; valuation of plan dis-
tributrions (TD 8768) 20, 4
26 CFR 1.460–6, amended; election
not to apply look-back method in de
minimiscases (REG–120200–97)
12, 32
26 CFR 1.469–10, revised; 1.7704–1,
added; investment income, passive
activity income and loss rules for
publicly traded partnerships
(REG–105163–97) 8, 31
26 CFR 1.475(g)–2, new; 1.482–8,
added; 1.482–0, –1, –2, 1.863,
1.863–7(a)(1), 1.864–4, –6, 1.894–1,
amended; 1.482–9, redesignated;
global dealing operation allocation
and sourcing of income and deduc-
tions among taxpayers (REG–
208299–90) 16, 26
26 CFR 1.513–7, added; travel and tour
activities of tax exempt organiza-
tions (REG–121268–97) 20, 12
26 CFR 1.529–0 through –6 and inter-
mediary sections, added; Qualified
State Tuition Programs (REG–
106177–97) 37, 33
26 CFR 1.671–4, 1.6049–7, 301.6109–
1, amended; reporting requirements
for widely held fixed investment
trusts (REG–209813–96) 35, 9
26 CFR 1.702–1, 1.954–1, 301.7701–3,
amended; 1.952–1(b), (c), redesig-
nated 1.954–2(a)(5), (6), 1.954–
4(b)(2)(iii), 1.954–9, 1.956–2(a)(3),
added (REG–104537–97) 16, 21
26 CFR 1.732–1, amended; 1.732–2,
amended; 1.734–1(e), added; 1.743–
1, revised; 1.751–1, amended;
1.755–1, revised; 1.1017–1, revised;
adjustments to basis of partnership
property and partnership interest
(REG–209682–94) 17, 20
26 CFR 1.864(b)–1; trading safe har-
bors (REG–106031–98) 26, 38
26 CFR 1.925(a)–1, (b)–1, added;
1.927(e)–1, amended; foreign sales
corporation transfer pricing source
and grouping rules (REG–102144–
98) 15, 25
26 CFR 1.936–1T, added; termination
of Puerto Rico and possession tax
credit, new lines of business prohib-
ited (REG–115446–97) 36, 23
26 CFR 1.985–8, 1.1001–5, added;
conversion to the euro (REG–
110332–98) 33, 18
26 CFR 1.1092(c)–1, added; equity op-
tions without standard terms, special
rules and definitions (REG–104641–
97) 29, xx
26 CFR 1.1291–1, 1.1293–1, 1.1295–1,
–3, 1.1297–3(c), added; 1.1296–4,
amended; passive foreign investment
company preferred shares, special
income exclusion (REG–115795–
97) 8, 33
26 CFR 1.1361–0, amended; 1.1361–1,
amended; 1.1361–1(d)(3), removed;
1.1361–2 through –6 and intermedi-
ary sections, added; 1.1362–0,
amended; 1.1362–2, amended;
1.1362–8, added; 1.1368–0,
amended; 1.1368–2(d)(2), amended;
1.1374–8(b), amended; S corpora-
tion subsidiaries (REG–251698–96)
20, 14
26 CFR 1.1366–1, –2, removed;
1.1366–0 through –5 and intermedi-
ary sections, added; 1.1367–0, –1,
amended; 1.1367–3, removed;
1.1368–0, –1, –2, –3, amended;
1.1368–4, revised; pass through of
items of an S corporation to its share-
holders (REG–209446– 82) 36, 24
26 CFR 1.1397E–1, added; qualified
zone academy bonds (REG–
119449–97) 10, 35
26 CFR 1.1502–3(c), revised; 1.1502–
4(f)(3), (g)(3), added; 1.1502–9(b)-
(1)(v), added; 1.1502–21(c)(1)(iii),
amended; consolidated returns, limi-
tations on the use of certain losses
and credits (REG–104062–97) 10, 34
26 CFR 1.6031–1, removed; 1.6031(a)–
1, added; 1.6063–1, amended; part-
1998–40 I.R.B.21October 5, 1998
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nership returns (REG–209322–82)
15, 26
26 CFR 1.6038B–1, amended; 1.6038B–
2, added; reporting of certain transfers
to foreign corporations and foreign
partnerships (REG– 118926–97) 39,
23
26 CFR 1.6038–3, added; information
returns for certain foreign partner-
ships (REG–118966–97) 39, 29
26 CFR 1.6046A–1, added; return re-
quirement for U.S. persons owning
interests in foreign partnerships
(REG–209060–86) 39, 18
26 CFR 1.7702B–1, –2, added; quali-
fied long-term care insurance con-
tracts (REG–109333–97) 9, 9
26 CFR 301.6159–1, amended; agree-
ments for tax liability installment
payments (REG–100841–97) 8, 30
26 CFR 301.6402–5(h), added; –6(n),
revised; tax refund offset program
(REG–104565–97) 39, 21
26 CFR 301.6404–2, added; abatement
of interest (REG–209276–87) 11, 18
26 CFR 301.7433–1(a), (d), (e), and
(f), revised; civil cause of action for
certain unauthorized collection ac-
tions (REG–251502–96) 9, 14
26 CFR 54.9812–1, added; mental
health parity; HIPAA(REG–
109704–97) 3, 60
Qualified Funeral Trust; guidance (Notice
6) 3, 52
Qualified intermediary agreements:
Guidance provided to foreign financial
institutions (RP27) 15, 15
Qualified mortgage bonds, mortgage
credit certificates:
Guidance provided regarding use of na-
tional and area median gross income
figures by issuers (RP28) 15, 14
Qualified Subchapter S Trust (QSST)
conversion to Electing Small Business
Trust (ESBT) 10, 30
Qualified Zone Academy Zone Bonds
(RP) 3, 100
Real estate transactions (RP20) 7, 32
Regulations:
26 CFR 1.32–3T, added; EIC eligibility
requirements (TD 8773) 29, 4
26 CFR 1.61–12, 1.249–1, 1.1016–5,
1.1275–1, amended; 1.163–13,
1.171–5, added; 1.171–1, –2, –3, –4,
revised; 1.1016–9, removed; amorti-
zable bond premium (TD 8746) 7, 4
26 CFR 1.141–0, –2, amended;
1.141–7, –8, removed; 1.141–7T,
–8T, –15T, 1.142(f)(4)–1T, 1.150–
5T, added; 1.141–15, revised; oblig-
ations of states and political subdivi-
sions (TD 8757) 13, 4
26 CFR 1.166–3(a)(3), 1.1001–4,
added; 1.166–3T, 1.1001–4T, re-
moved; modifications of bad debts
and dealer assignments of notional
principal contracts (TD 8763) 15, 5
26 CFR 1.280B–1, added; building de-
molition, definition of structure (TD
8745) 7, 15
26 CFR 1.338–2, 1.368–1, –2,
amended; 1.368–1T, added; corpo-
rate reorganizations, continuity of in-
terest, and continuity of business en-
terprise (TD 8760) 14, 4; (TD 8761)
14, 13
26 CFR 1.354–1, 1.355–1, 1.356–3,
amended; reorganizations, treatment
of warrants as securities (TD 8752)
9, 4
26 CFR 1.356–6T, added; reorganiza-
tions, nonqualified preferred stock
(TD 8753) 9, 6
26 CFR 1.367(a)–1T, –3, amended;
1.367(a)–3T, removed; 1.367(a)–8,
1.367(b)–1, –4, added; 1.367(d)–1T,
amended; 1.6038B–1, added;
1.6038B–1T; 7.367(b)–1, –4, –7,
amended; certain transfers of stock
or securities by U.S. persons to for-
eign corporations (TD 8770) 27, 4
26 CFR 1.411(d)–4, amended; permit-
ted elimination of preretirement op-
tional forms of benefit (TD 8769)
28, 4
26 CFR 1.446–1, amended; 1.446–1T,
removed; 301.9100–0, added;
301.9100–1, revised; 301.9100–2,
–3, added; 301.9100–1T, –2T, –3T;
removed extensions of time to make
elections (TD 8742) 5, 4
26 CFR 1.453.11; installment obliga-
tions received from liquidating cor-
porations (TD 8762) 14, 15
26 CFR 1.460–0, amended; 1.460–6T,
added; election not to apply look-
back method in de minimiscases
(TD 8756) 12, 4
26 CFR 1.460–6T, removed;
1.460–6(i), (j), added; election not to
apply look-back method in de min-
imiscases (TD 8775) 31, 4
26 CFR 1.465–27, added; qualified
nonrecourse financing under section
465(b)(6) (TD 8777) 34, 4
26 CFR 1.468A–2, –3, –8, amended;
nuclear decommissioning funds; re-
vised schedules of ruling amounts
(TD 8758) 13, 15
26 CFR 1.904–5(o), 1.904–5T, 1.954–
0(b), 1.954–1, amended; 1.954–1T,
–2T, –9T, added; 301.7701–3(f)(1),
amended; controlled foreign corpo-
ration relating to partnerships and
branches (TD 8767) 16, 4
26 CFR 1.905–2, amended; foreign tax
credit filing requirements (TD 8759)
13, 19
26 CFR 1.925(a)–1T, 1.925(b)–
1T(b)(3)(i), amended; 1.927(e)–1T,
revised; foreign sales corporation
transfer pricing source and grouping
rules (TD 8764) 15, 9
26 CFR 1.936–11T, added; termination
of Puerto Rico and possession tax
credit; new lines of business prohib-
ited (TD 8778) 36, 4
26 CFR 1.985–1, –5(a), amended;
1.985–7, added; dollar approximate
separate transactions method of ac-
counting (DASTM) to profit and loss
method of accounting, change from
P&Lmethod to DASTM (TD 8765)
16, 11
26 CFR 1.1271–1, 1.1275–1, amended;
debt instruments with original issue
discount, annuity contracts (TD
8754) 10, 15
26 CFR 1.1202–0, –2, added; qualified
small business stock (TD 8749) 7,
16
26 CFR 1.1290–0, amended; 1.1294–0,
added; a. 1291–0T, amended;
1.1291–1T, added; 1.1291–9,
amended; 1.1293–0, –1T, added;
1.1295–0, –1T, –3T, 1.1297–3T(c),
added; passive foreign investment
company preferred shares, special
income exclusion (TD 8750) 8, 4
26 CFR 1.1396–1; empowerment zone
employment credit, qualified zone
employees (TD 8747) 7, 18
26 CFR 1.1397E–1T, added; qualified
zone academy bonds (TD 8755) 10,
21
26 CFR 1.1502–3, –4, –9(a), –21T(c)-
(1)(iii), amended; 1.1502– 3T, –4T,
–9T, –55T, added; 1.1502– 23T(b),
October 5, 1998221998–40 I.R.B.
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(c), redesignated; consolidated re-
turns, limitations on the use of cer-
tain losses and credits, overall for-
eign loss accounts (TD 8751) 10, 23
26 CFR 54.9801–2T, amended;
54.9801–4T, –5T, revised; 54.9804–
1T, redesignated; 54.9806–1T, redes-
ignated; 54.9812–1T, added; mental
health parity, interim rules (TD
8741) 3, 6
26 CFR 301.7623–1, revised;
301.7623–1T, removed; rewards for
information relating to violations of
internal revenue laws (TD 8780) 39,
14
Relocation payments:
Authorized by sec. 105(a)(11) of Hous-
ing and Community Development
Act, not includible in gross income
(RR 19) 15, 5
Renewable electricity production credit;
calendar year 1998 inflation adjustment
factor and reference prices. (Notice 27)
18, 14
Reorganizations; exchange of securities
(RR 10) 10, 11
Reproduction of Forms 1096, 1098, 1099,
5498, and W–2G (RP37) 26, 6
Residential rental property, exempt facili-
ty bond (RR 47) 39, 4
Rulings:
Areas in which advance rulings will not
be issued:
Associate Chief Counsel (Domes-
tic), Associate Chief Counsel
(EBEO)(RP3) 1, 100
Associate Chief Counsel (Interna-
tional) (RP7) 1, 222
Obsolete (RR 37) 32, 5
Rural airports (RP18) 6, 20
Sales or exchanges:
Qualified small business stock (RP48)
38, 7
Social security benefits under U.S.-
Canada treaty, recent changes (Notice
23) 18, 9
Specifications for filing Form 1042–S
(RP44) 32, 11
Spin-off of subsidiary (RR 27) 22, 4
SRLYnotice (Notice 38) 34, 7
Technical advice to district directors and
chiefs, appeals offices, Associate Chief
Counsel (Domestic), Associate Chief
Counsel (EBEO), Associate Chief
Counsel (Enforcement Litigation), and
Associate Chief Counsel (International)
(RP2) 1, 74
Tentative differential earnings rate for
1997 (Notice 19) 13, 24
Timely filing or payment; private delivery
services (Notice 47) 37, 8
Treatment of hybrid arrangements under
subpart F (Notice 11) 6, 18
Trust, election to treat U.S. person;
domestic trust (Notice 25) 18, 11
Waiver of period of stay in foreign coun-
try (RP38) 27, 29
Withholding regulations:
Effective date of sec. 1441 withholding
regulations amended (Notice 16) 15,
12
1998–40 I.R.B.23October 5, 1998
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Notes
October 5, 1998241998–40 I.R.B.
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Notes
1998–40 I.R.B.25October 5, 1998
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Notes
October 5, 1998261998–40 I.R.B.
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IRB 1998-40 9/30/98 12:01 PM Page 27

INTERNAL REVENUE BULLETIN
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