Internal Revenue Bulletin 1998-30 (PDF rendition): IRS Notices

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

INCOME TAX
Rev. Rul. 98–35, page 4.
LIFO; price indexes; department stores.The May 1998
Bureau of Labor Statistics price indexes are accepted for
use by department stores employing the retail inventory and
last-in, first-out inventory methods for valuing inventories for
tax years ended on, or with reference to, May 31, 1998.
EMPLOYEE PLANS
Notice 98–37, page 13.
Weighted average interest rate update.Guidelines are
set forth for determining for July 1998, the weighted aver-
age interest rate and the resulting permissible range of in-
terest rates used to calculate current liability for purposes
of the full funding limitation of section 412(c)(7) of the Code
as amended by the Omnibus Budget Reconciliation Act of
1987 and by the Uruguay Round Agreements Act (GATT).
EXEMPT ORGANIZATIONS
Announcement 98–70, page 17.
A list is provided of organizations that no longer qualify as
organizations for which contributions are deductible under
section 170 of the Code.
Announcement 98–71, page 17.
A list is given of organizations now classified as private foun-
dations.
EXCISE TAX
T.D. 8774, page 5.
REG–119227–97, page 13.
Temporary and proposed regulations under section 4082 of
the Code relate to the kerosene and aviation fuel excise
taxes and the tax on the first retail sale of certain tractors
and truck, trailer, and semitrailer chassis and bodies (heavy
vehicles). A public hearing on the proposed regulations will
be held on November 4, 1998.
ADMINISTRATIVE
Announcement 98–69, page 16.
INTL–54–91 and INTL–178–86 (1991–2 C.B. 1070), relat-
ing to foreign liquidations and reorganizations under section
367 of the Code, are amended.
Internal Revenue
bbuulllleettiinn
Bulletin No. 1998–30
July 27, 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 21.

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.

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. A citation of the Internal Revenue Bulletin as the source would be appropriate.
For sale by the Superintendent of Documents, U.S. Government Printing Office, Washington, DC 20402.

July 27, 199841998–30 I.R.B.
Section 472.—Last-in, First-out
Inventories
26 CFR 1.472–1: Last-in, first-out inventories.
LIFO; price indexes; department
stores.The May 1998 Bureau of Labor
Statistics price indexes are accepted for
use by department stores employing the
retail inventory and last-in, first-out in-
ventory methods for valuing inventories
for tax years ended on, or with reference
to, May 31, 1998.
Rev. Rul. 98–35
The following Department Store Inven-
tory Price Indexes for May 1998 were is-
sued by the Bureau of Labor Statistics.
The indexes are accepted by the Internal
Revenue Service, under § 1.472–1(k) of
the Income Tax Regulations and Rev.
Proc. 86–46, 1986–2 C.B. 739, for appro-
priate application to inventories of depart-
ment stores employing the retail inven-
tory and last-in, first-out inventory
methods for tax years ended on, or with
reference to, May 31, 1998.
The Department Store Inventory Price
Indexes are prepared on a national basis
and include (a) 23 major groups of depart-
ments, (b) three special combinations of
the major groups – soft goods, durable
goods, and miscellaneous goods, and (c) a
store total, which covers all departments,
including some not listed separately, ex-
cept for the following: candy, food,
liquor, tobacco, and contract departments.
Part I. Rulings and Decisions Under the Internal Revenue Code of 1986
BUREAU OF LABOR STATISTICS, DEPARTMENT STORE
INVENTORY PRICE INDEXES BY DEPARTMENT GROUPS
(January 1941 = 100, unless otherwise noted)
Percent Change
GroupsMayMay from May 1997
19971998to May 1998
1
1. Piece Goods . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .529.2534.61.0
2. Domestics and Draperies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .649.3 637.0–1.9
3. Women’s and Children’s Shoes . . . . . . . . . . . . . . . . . . . . . . . . . . . . .663.7664.20.1
4. Men’s Shoes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .918.8907.9–1.2
5. Infants’ Wear . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .642.0629.1–2.0
6. Women’s Underwear . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .537.7576.17.1
7. Women’s Hosiery . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .296.7306.13.2
8. Women’s and Girls’ Accessories . . . . . . . . . . . . . . . . . . . . . . . . . . . .566.2546.5–3.5
9. Women’s Outerwear and Girls’ Wear . . . . . . . . . . . . . . . . . . . . . . . .435.1425.4–2.2
10. Men’s Clothing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .630.2634.50.7
11. Men’s Furnishings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .601.9608.61.1
12. Boys’ Clothing and Furnishings . . . . . . . . . . . . . . . . . . . . . . . . . . . .500.2497.9–0.5
13. Jewelry . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1004.9 986.2–1.9
14. Notions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .755.8786.54.1
15. Toilet Articles and Drugs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .907.2951.04.8
16. Furniture and Bedding . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .673.4682.11.3
17. Floor Coverings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .592.7602.71.7
18. Housewares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .806.3814.21.0
19. Major Appliances . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .242.0238.5–1.4
20. Radio and Television . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .76.772.1–6.0
21. Recreation and Education
2
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .109.8105.1–4.3
22. Home Improvements
2
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .132.4134.31.4
23. Auto Accessories
2
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .107.2106.6–0.6
Groups 1 – 15: Soft Goods . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .612.3612.00.0
Groups 16 – 20: Durable Goods . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .465.4462.5–0.6
Groups 21 – 23: Misc. Goods
2
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .112.2109.1–2.8
Store Total
3
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .560.7557.9–0.5
1
Absence of a minus sign before percentage change in this column signifies price increase.
2
Indexes on a January 1986=100 base.
3
The store total index covers all departments, including some not listed separately, except for the following: candy, foods, liquor, to-
bacco, and contract departments.

DRAFTING INFORMATION
The principal author of this revenue
ruling is Stan Michaels of the Office of
Assistant Chief Counsel (Income Tax and
Accounting). For further information re-
garding this revenue ruling, contact Mr.
Michaels on (202) 622-4970 (not a toll-
free call).
Section 4082.—Exemptions for
Diesel Fuel and Kerosene
26 CFR 48.4082–8T: Kerosene; exemption for
aviation-grade kerosene (temporary).
T.D. 8774
DEPARTMENT OF THE TREASURY
Internal Revenue Service
26 CFR Parts 48, 145, and 602
Kerosene Tax; Aviation Fuel Tax;
Tax on Heavy Trucks and
Trailers
AGENCY: Internal Revenue Service
(IRS), Treasury.
ACTION: Temporary regulations.
SUMMARY: This document contains
temporary regulations relating to the
kerosene and aviation fuel excise taxes
and the tax on the first retail sale of certain
tractors and truck, trailer, and semitrailer
chassis and bodies (heavy vehicles). The
regulations provide rules for the kerosene
tax, the refund available to certain avia-
tion producers, and the tax on heavy vehi-
cles. The regulations relating to kerosene
affect the tax liability of certain industrial
users, refiners, terminal operators,
throughputters, and persons that sell, buy,
or use kerosene. The regulations relating
to aviation fuel affect certain producers,
retailers, and users of aviation fuel. The
regulations relating to the tax on heavy
vehicles affect vehicle manufacturers and
dealers. The text of these regulations also
serves as the text of the proposed regula-
tions set forth in REG–119227–97,
page 13 of this Bulletin.
DATES: These regulations are effective
July 1, 1998. For dates of applicability,
see §§48.4082–6T, 48.4082–7T(b),
48.4082–8T(f), 48.4082–9T(b), 48.4091-
3T(f), 48.4101–3T(e), 48.6427–10T(c),
48.6427–11T(g), and 145.4052–1(a)-
(2)(ii).
FOR FURTHER INFORMATION CON-
TACT: Frank Boland (202) 622-3130 (not
a toll-free call).
SUPPLEMENTARY INFORMATION:
Paperwork Reduction Act
These temporary regulations are being
issued without prior notice and public
procedure pursuant to the Administrative
Procedure Act (5 U.S.C. 553). For this
reason, the collection of information con-
tained in these regulations has been re-
viewed and, pending receipt and evalua-
tion of public comments, approved by the
Office of Management and Budget under
control number 1545–1608. Responses to
this collection of information are required
to obtain a tax benefit.
An agency may not conduct or sponsor,
and a person is not required to respond to,
a collection of information unless the col-
lection of information displays a valid
OMB control number.
For further information concerning this
collection of information, and where to
submit comments on the collection of in-
formation and the accuracy of the esti-
mated burden, and suggestions for reduc-
ing this burden, please refer to the
preamble to the notice of proposed rule-
making in REG–119227–97.
Books or records relating to a collec-
tion of information must be retained as
long as their contents may become mater-
ial in the administration of any internal
revenue law. Generally, tax returns and
tax return information are confidential, as
required by 26 U.S.C. 6103.
Background
This document contains amendments
to excise tax regulations (26 CFR parts
48 and 145) that implement certain
changes made by the Taxpayer Relief Act
of 1997 (the 1997 Act) relating to taxes
on kerosene, aviation fuel, and heavy
vehicles.
Kerosene; the 1997 Act
Section 4081 imposes a tax on certain
removals, entries, and sales of taxable
fuel. Before July 1, 1998, taxable fuel
means gasoline and diesel fuel. As of that
date, however, the definition of taxable
fuel is expanded by the 1997 Act to in-
clude kerosene. Thus, after June 30,
1998, tax is imposed on the removal of
kerosene from a terminal at the terminal
rack.
In addition, the 1997 Act extends the
rules for the exemption of dyed diesel fuel
to dyed kerosene. Thus, tax is not im-
posed on kerosene that (1) the IRS deter-
mines is destined for a nontaxable use
(such as for heating), (2) is indelibly dyed
in accordance with IRS regulations, and
(3) meets any marking requirements that
may be prescribed in regulations.
Also, the 1997 Act provides that
undyed kerosene that is destined for a
nontaxable use may be removed, entered,
or sold tax free in three situations. First,
in the case of aviation-grade kerosene,
dyeing is not required if the kerosene is
received by a person that is registered by
the IRS for purposes of the aviation fuel
tax imposed by section 4091. Second,
dyeing is not required for feedstock
kerosene that is received from a pipeline
or vessel by a registered kerosene feed-
stock user. Kerosene used as a feedstock
by other persons is exempt from the dye-
ing requirement to the extent provided by
regulations. Finally, to the extent pre-
scribed by regulations, dyeing is not re-
quired if kerosene is received by a regis-
tered wholesale distributor that sells
kerosene exclusively to ultimate vendors
that sell kerosene from a pump that is not
suitable for use in fueling any diesel-pow-
ered highway vehicle or train (a blocked
pump).
The 1997 Act adds section 4101(e) to
provide that a terminal for kerosene or
diesel fuel cannot be an approved termi-
nal unless the operator of the terminal of-
fers dyed diesel fuel and dyed kerosene
for removal for nontaxable use. This pro-
vision is not applicable until July 1, 2000.
The 1997 Act generally applies to
kerosene the credit and refund rules that
apply to diesel fuel. Thus, a credit or re-
fund is allowable to a registered ultimate
vendor that sells taxed, undyed kerosene
for use on a farm for farming purposes or
for the exclusive use of a state or local gov-
ernment. In addition, a credit or refund is
allowable to a registered ultimate vendor
that sells taxed, undyed kerosene from a
blocked pump or, to the extent provided by
the Secretary of the Treasury, for blending
1998–30 I.R.B.5July 27, 1998

with heating oil to be used during periods
of extreme or unseasonable cold.
Kerosene; explanation of provisions
Because kerosene is classified as a tax-
able fuel as of July 1, 1998, the rules (in-
cluding definitions) in the existing regula-
tions that apply to taxable fuel generally
apply to kerosene.
The temporary regulations define
kerosene as the kerosene described in
ASTM Specification D 3699 (No. 1–K
and No. 2–K) and ASTM Specification D
1655 (kerosene-type jet fuel).
Under the temporary regulations, tax is
not imposed on the removal, entry, or sale
of kerosene that is dyed with dye of the
same strength and composition that is
now required for diesel fuel. Also, every
retail pump where dyed kerosene is sold
must display a prescribed notice similar to
the one now required on dyed diesel fuel
pumps.
Under the temporary regulations, tax
generally is not imposed on aviation-
grade kerosene if the person that receives
the kerosene in a transaction otherwise
subject to tax (such as a person that buys
kerosene at a terminal rack) is registered
with respect to the section 4091 tax and,
for sales after September 30, 1998, certi-
fies that the kerosene will be used as a
fuel in an aircraft. These buyers include
registered aviation fuel producers (that is,
persons with IRS registration numbers
with an “H” suffix) and registered com-
mercial airlines.
Transitional rules provide that tax gen-
erally is not imposed on aviation-grade
kerosene that is destined for use as avia-
tion fuel if an unregistered person (such
as a fixed-base operator) receives the
kerosene at a terminal rack and certifies
(for sales after September 30, 1998) that
the kerosene will be used as a fuel in an
aircraft. The Treasury Department is con-
sidering whether this provision should be
made a part of the final regulations, or
whether persons that are presently unreg-
istered should be required to register in
order to receive aviation-grade kerosene
tax free and requests comments on this
issue. Comments may be submitted in the
manner described under the AD-
DRESSES caption in the notice of pro-
posed rulemaking on these subjects in
REG–119227–97.
The temporary regulations describe the
conditions under which a registered ulti-
mate vendor may be eligible for a credit
or refund with respect to taxed kerosene
that it sells from a blocked pump. A
blocked pump is defined as a fuel pump
that is at a fixed location and that cannot
be used to fuel any diesel-powered high-
way vehicle or train. Also, blocked
pumps must display a prescribed notice.
The temporary regulations do not pro-
vide rules for the following: (1) the excep-
tion from the dyeing requirement for
kerosene that is removed from a terminal
for use as a feedstock, (2) the exception
from the dyeing requirement for kerosene
that is received by a registered wholesale
distributor that sells kerosene exclusively
to ultimate vendors that sell kerosene from
a blocked pump, (3) the availability of a
credit or refund to a registered ultimate
vendor that sells kerosene for blending
with heating oil to be used during periods
of extreme or unseasonable cold, and (4)
the requirement that a terminal for
kerosene or diesel fuel cannot be an ap-
proved terminal unless the operator of the
terminal offers dyed diesel fuel and dyed
kerosene for removal for nontaxable use.
Comments are also requested on these is-
sues. Comments may be submitted in the
manner described under the ADDRESSES
caption in the notice of proposed rulemak-
ing on these subjects in REG–119227–97.
Aviation fuel
The 1997 Act added section 4091(d),
which allows a registered aviation fuel
producer (including a registered whole-
sale distributor) to obtain a refund of tax
previously paid on aviation fuel that it
buys. The temporary regulations describe
the procedures to be followed for the al-
lowance of this refund. These procedures
are similar to the procedures under sec-
tion 4081(e) for refunds relating to tax-
able fuel on which two taxes have been
paid.
Registration of heavy vehicle
manufacturers and retailers
The tax on the sale of heavy vehicles
imposed by section 4051 is a tax that ap-
plies to the first retail sale by the manu-
facturer, importer, or retailer of a vehicle.
The tax is not imposed if a vehicle is sold
for resale or for lease on a long-term
basis. Under existing regulations, this
tax-free treatment applies only if both the
seller and the buyer are registered by the
IRS. Under the 1997 Act, however, the
Treasury Department is to revise those
regulations so that those sales may be
made tax free even if the parties have not
been registered by the IRS.
These temporary regulations generally
provide that a person, such as a vehicle
manufacturer, may sell a vehicle tax free
if it accepts from its buyer, such as a vehi-
cle retailer, a prescribed statement, signed
under penalties of perjury, stating that the
buyer will resell the vehicle or lease it on
a long-term basis. Neither party will be
required to be registered.
The temporary regulations do not affect
the registration requirements for tax-free
sales under section 4221, such as sales for
the exclusive use of a state or local
government.
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. It is hereby
certified that the collection of information
in these regulations will not have a signif-
icant economic impact on a substantial
number of small entities. This certifica-
tion is based upon the fact that the time
required to prepare and submit the ex-
emption certificates described in these
regulations (many of which are similar to
certificates that are already in use) is min-
imal and will not have a significant im-
pact on those small entities that choose to
provide the certificates. Therefore, a
Regulatory Flexibility Analysis under the
Regulatory Flexibility Act (5 U.S.C.
chapter 6) is not required. Pursuant to
section 7805(f) of the Internal Revenue
Code, 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 Frank Boland, Office of the Assis-
July 27, 199861998–30 I.R.B.

tant Chief Counsel (Passthroughs and
Special Industries), IRS. However, other
personnel from the IRS and Treasury De-
partment participated in their develop-
ment.
*****
Adoption of Amendments to the
Regulations
Accordingly, 26 CFR parts 48, 145,
and 602 are amended as follows:
PART 48—MANUFACTURERS AND
RETAILERS EXCISE TAX
REGULATIONS
Paragraph 1. The authority citation for
part 48 is amended by adding entries in
numerical order to read in part as follows:
Authority: 26 U.S.C. 7805 * * *
Sections 48.4082–6T, 48.4082–7T, and
48.4082–8T also issued under 26 U.S.C.
4082 * * *
Section 48.4101–3 also issued under 26
U.S.C. 4101(a) * * *
Sections 48.6427–10T and 48.6427–
11T also issued under 26 U.S.C. 6427(n)
* * *
Par. 2. Section 48.4081–1T is added to
read as follows:
§48.4081–1T Taxable fuel; definitions
(temporary).
(a) [Reserved]
(b) Definitions.
Kerosenemeans, after June 30,
1998,—
(1) The two grades of kerosene (No.
1–K and No. 2–K) described in ASTM
Specification D 3699; and
(2) Kerosene-type jet fuel described in
ASTM Specification D 1655 and military
specifications MIL–T–5624R and MIL–
T–83133D (Grades JP–5 and JP–8). For
availability of ASTM and military specifi-
cation material, see §48.4081–1(c)(2)(i).
Par. 3. Sections 48.4082–6T, 48.4082–
7T, 48.4082–8T, 48.4082–9T, and
48.4082–10T are added to read as follows:
§48.4082–6T Kerosene; treatment as
diesel fuel in certain cases (temporary).
For purposes of §§48.4081–1(b) (the
definition of taxable fuel), 48.4081–2(c),
48.4082–1, 48.4082–4, and 48.4082–5,
after June 30, 1998, diesel fuel includes
kerosene.
§48.4082–7T Kerosene; notice required
with respect to dyed kerosene
(temporary).
(a) In general.A legible and conspicu-
ous notice stating: “DYED KEROSENE,
NONTAXABLE USE ONLY, PENALTY
FOR TAXABLE USE”must be posted by
a seller on any retail pump or other deliv-
ery facility where it sells dyed kerosene
for use by its buyer. Any seller that fails
to post the required notice on any retail
pump or other delivery facility where it
sells dyed kerosene is, for purposes of the
penalty imposed by section 6715, pre-
sumed to know that the fuel will not be
used for a nontaxable use.
(b) Effective date.This section is ap-
plicable after June 30, 1998.
§48.4082–8T Kerosene; exemption for
aviation-grade kerosene (temporary).
(a) Overview.This section provides
rules for exempting aviation-grade
kerosene from the tax imposed by section
4081. Generally, under prescribed condi-
tions, tax is not imposed on a removal,
entry, or sale of aviation-grade kerosene if
the kerosene is destined for use as a fuel
in an aircraft.
(b) Definition.
Aviation-grade kerosenemeans
kerosene-type jet fuel described in ASTM
Specification D 1655 and military specifi-
cations MIL–T–5624R and MIL–T–
83133D (Grades JP–5 and JP–8). For
availability of ASTM and military specifi-
cation material, see §48.4081–1(c)(2)(i).
(c) Removals and entries not in connec-
tion with sales.Tax is not imposed by
section 4081 on the removal or entry not
in connection with a sale of aviation-
grade kerosene if—
(1) The person otherwise liable for tax
is a taxable fuel registrant;
(2) In the case of a removal from a ter-
minal, the terminal is an approved termi-
nal; and
(3) The kerosene will be used as fuel in
an aircraft and—
(i) The person otherwise liable for tax
subsequently delivers the kerosene into
the fuel supply tank of an aircraft or is
registered under section 4101 with respect
to the tax imposed by section 4091; or
(ii) The section 4091 tax has been im-
posed on the kerosene.
(d) Removals and entries in connection
with sales.Tax is not imposed under sec-
tion 4081 on the removal or entry of avia-
tion-grade kerosene in connection with a
sale if—
(1) The person otherwise liable for tax
is a taxable fuel registrant;
(2) In the case of a removal from a ter-
minal, the terminal is an approved termi-
nal; and
(3) The kerosene will be used as fuel in
an aircraft and—
(i) The buyer is registered under sec-
tion 4101 with respect to the tax imposed
by section 4091;
(ii) The buyer is buying for its use in a
nontaxable use (as defined in section
4092(a)); or
(iii) The section 4091 tax is, or has
been, imposed on the kerosene.
(e) Evidence under paragraph (d)(3)—
(1) In general—(i) Sales before October
1, 1998.For sales before October 1,
1998, the requirements of paragraph
(d)(3) of this section will be considered to
have been met if the person otherwise li-
able for tax has an unexpired certificate
(described in this paragraph (e)) from the
buyer and has no reason to believe that
any information in the certificate is false.
(ii) Sales after September 30, 1998.
For sales after September 30, 1998, the
requirements of paragraph (d)(3) of this
section are met only if the person other-
wise liable for tax has an unexpired cer-
tificate (described in this paragraph (e))
from the buyer and has no reason to be-
lieve that any information in the certifi-
cate is false.
(2) Certificate.The certificate to be
provided by a buyer of aviation-grade
kerosene is a statement signed under
penalties of perjury by a person with au-
thority to bind the buyer, in substantially
the same form as the model certificate
provided in paragraph (e)(4) of this sec-
tion, and that contains all information
necessary to complete the model certifi-
cate. A new certificate or notice that the
correct certificate is invalid must be given
if any information in the current certifi-
cate changes. The certificate may be in-
cluded as part of any business records
normally used to document a sale. The
certificate expires on the earliest of the
following dates:
(i) The date one year after the effective
date of the certificate (which may be no
earlier than the date it is signed).
1998–30 I.R.B.7July 27, 1998

(ii) The date the buyer provides a new
certificate or notice that the current cer-
tificate is invalid to the seller.
(iii) The date the seller is notified by
the Internal Revenue Service or the buyer
that the buyer’s right to provide a certifi-
cate has been withdrawn.
(3) Withdrawal of the right to provide a
certificate.The Internal Revenue Service
may withdraw the right of a buyer of avia-
tion-grade kerosene to provide a certifi-
cate under this section if the buyer uses or
disposes of aviation-grade kerosene to
which a certificate applies other than as a
fuel in an aircraft. The Internal Revenue
Service may notify any seller to whom the
buyer has provided a certificate that the
buyer’s right to provide a certificate has
been withdrawn.
(4) Model certificate.
July 27, 199881998–30 I.R.B.
CERTIFICATE OF PERSON BUYING AVIATION-GRADE
KEROSENE FOR USE AS A FUEL IN AN AIRCRAFT
(To support tax-free removals and entries of aviation-grade kerosene under section 4081 of the Internal Revenue Code.)
Name, address, and employer identification number of seller ________________________ (“Buyer”) certifies the following under
penalties of perjury: Name of Buyer
The aviation-grade kerosene to which this certificate relates will be used as fuel in an aircraft.
Buyer is (check one):
________________ Registered under section 4101 of the Internal Revenue Code with respect to the tax imposed by section 4091
with a registration number of _____________
________________ Buying the kerosene for its use in a nontaxable use (as defined in section 4092(a)).
________________ Buying the kerosene for its use (other than a nontaxable use) in commercial aviation (as defined in section
4092(b)).
________________ Buying the kerosene for its use (other than a nontaxable use) in noncommercial aviation (as defined in sec-
tion 4041(c)(2)).
________________ Buying the kerosene for resale.
This certificate applies to the following (complete as applicable):
If this is a single purchase certificate, check here _________ and enter:
1. Invoice or delivery ticket number ________________________________________
2. _______ (number of gallons)
If this is a certificate covering all purchases under a specified account or order number, check here ___________ and enter:
1. Effective date ____________________
2. Expiration date ___________________
(period not to exceed 1 year after the effective date)
3. Buyer account or order number ___________________
Buyer will provide a new certificate to the seller if any information in this certificate changes.
Buyer understands that if Buyer violates the terms of this certificate, the Internal Revenue Service may withdraw Buyer’s right to
provide a certificate.
Buyer has not been notified by the Internal Revenue Service that its right to provide a certificate has been withdrawn.
Buyer understands that the fraudulent use of this certificate may subject Buyer and all parties making any fraudulent use of this
certificate to a fine or imprisonment, or both, together with the costs of prosecution.
Printed or typed name of person signing
Title of person signing
Employer identification number
Address of Buyer
Signature and date signed

(f) Effective date.This section is ap-
plicable after June 30, 1998.
48.4082–9T Kerosene; exemption for
non-fuel feedstock purposes (temporary).
(a) In general. Tax is not imposed
under section 4081 and §48.4081-3(e)(1)
if, upon the removal of kerosene from a
pipeline or vessel, the kerosene is re-
ceived by a taxable fuel registrant that is a
kerosene feedstock user. For this pur-
pose, a kerosene feedstock useris a per-
son that receives kerosene by bulk trans-
fer for its own use in the manufacture or
production of any substance (other than
gasoline, diesel fuel, or special fuels re-
ferred to in section 4041).
(b) Effective date.This section is ap-
plicable after June 30, 1998.
§48.4082–10T Kerosene; additional
exemption from floor stocks tax
(temporary).
The floor stocks tax imposed by section
1032(g) of the Taxpayer Relief Act of
1997 does not apply to kerosene that sat-
isfies the dyeing requirements of
§48.4082-1(b) by the earlier of—
(a) September 30, 1998; or
(b) The time the kerosene is sold by the
person otherwise liable for the floor
stocks tax.
Par. 4. Section 48.4091-3T is added to
read as follows:
§48.4091–3T Aviation fuel; conditions to
allowance of refunds of aviation fuel tax
under section 4091(d) (temporary).
(a) Overview.This section provides the
conditions under which a refund of tax
imposed by section 4091 is allowable
with respect to taxed aviation fuel that is
held by a registered aviation fuel pro-
ducer. No credit against any tax imposed
by the Internal Revenue Code is allowed
under section 4091(d).
(b) Conditions to allowance of refund.
A claim for refund of tax imposed by sec-
tion 4091 with respect to aviation fuel is
allowed under section 4091(d) and this
section only if—
(1) A tax imposed by section 4091 with
respect to the aviation fuel was paid to the
government by an importer or producer
(the first producer) and the tax has not
been otherwise credited or refunded;
(2) After imposition of the tax, the avi-
ation fuel is acquired by a person that is a
registered aviation fuel producer (the sec-
ond producer);
(3) The second producer has filed a
timely claim for refund that contains the
information required under paragraph (d)
of this section; and
(4) The first producer and any person
that owns the fuel after its sale by the first
producer and before its purchase by the
second producer (a subsequent seller)
have met the reporting requirements of
paragraph (c) of this section.
(c) Reporting requirements—(1) In
general.The reporting requirements of
this paragraph (c)(1) are met if the first
producer files a report (the first pro-
ducer’s report) that—
(i) Is in substantially the same form as
the model report provided in paragraph
(c)(2) of this section (or such other model
report as the Commissioner may pre-
scribe);
(ii) Contains all information necessary
to complete such model report; and
(iii) Is filed at the time and in the man-
ner prescribed by the Commissioner.
(2) Model first producer’s report.
1998–30 I.R.B.9July 27, 1998
FIRST PRODUCER’S REPORT
First Producer’s name, address, and employer identification number
Buyer’s name, address, and employer identification number
Date and location of taxable sale
Volume and type of aviation fuel sold
Amount of federal excise tax paid on account of the sale
Under penalties of perjury, First Producer declares that First Producer has examined this statement, including any accompanying
schedules and statements, and, to the best of First Producer’s knowledge and belief, it is true, correct and complete.
Printed or typed name of the person signing
Title of person signing
Signature and date signed

(3) Information provided to buyers.
The reporting requirements of this para-
graph (c)(3) are met if a first producer that
filed a first producer’s report under para-
graph (c)(1) of this section gives a copy of
the report to the person to whom the first
producer sells the aviation fuel.
(4) Statement of subsequent seller—(i)
In general.The reporting requirements of
this paragraph (c)(4) are met if—
(ii)(A) Each subsequent seller gives to
its buyer a copy of a statement that pro-
vides all information (whether or not in
the same format) necessary to complete
the model statement prescribed in para-
graph (c)(4)(ii) of this section (or such
other model statement as the Commis-
sioner may prescribe); and
(B) The statement is provided at the
bottom or on the back of the copy of the
first producer’s report (or in an attached
document).
(iii) Model statement describing subse-
quent sale.
July 27, 1998101998–30 I.R.B.
STATEMENT OF SUBSEQUENT SELLER (AVIATION FUEL)
Name, address, and employer identification number of seller in subsequent sale
Name, address, and employer identification number of buyer in subsequent sale
Date and location of subsequent sale
Volume and type of aviation fuel sold
The undersigned seller (the Seller) has received the copy of the first producer’s report provided with this statement in connection
with Seller’s purchase of the aviation fuel described in this statement.
Under penalties of perjury, Seller declares that Seller has examined this statement, including any accompanying schedules and
statements, and, to the best of Seller’s knowledge and belief, it is true, correct and complete.
Printed or typed name of person signing
Title of person signing
Signature and date signed
(5) Sale to multiple buyers.If a first pro-
ducer’s report relates to aviation fuel that is
divided among more than one buyer, mul-
tiple copies of the first producer’s report
should be made at the stage that the avia-
tion fuel is divided and a copy given to
each buyer. The reporting requirements of
this paragraph (c) will be met only with re-
spect to the fuel purchased by buyers that
are given a copy of the report including
any statement required under paragraph
(c)(4) of this section.
(d) Form and content of claim—(1) In
general.The following rules apply to
claims for refund under section 4091(d):
(i) The claim must be made by the sec-
ond producer and must include all the in-
formation described in paragraph (d)(2)
of this section.
(ii) The claim must be made on Form
8849 (or such other form as the Commis-
sioner may designate) in accordance with
the instructions on the form. The form
should be marked Section 4091(d) Claim
at the top. Section 4091(d) claims must
not be included with a claim for a refund
under any other provision of the Internal
Revenue Code.
(2) Information to be included in the
claim. Each claim for a refund under sec-
tion 4091(d) must contain the following
information with respect to the aviation
fuel covered by the claim:
(i) Volume and type of aviation fuel.
(ii) Date on which the second producer
acquired the aviation fuel to which the
claim relates.
(iii) Amount of tax that the first pro-
ducer paid to the government and a state-
ment that the second producer has not in-
cluded the amount of that tax in the sales
price of the aviation fuel to which the
claim relates and has not collected that
amount from the person that bought the
aviation fuel from the second producer, if
any.
(iv) Name, address, and employer iden-
tification number of the first producer that
paid the tax to the government.
(v) A copy of the first producer’s report
that relates to the aviation fuel covered by
the claim.
(vi) A copy of any statement of a subse-
quent seller that the second producer re-
ceived with respect to that aviation fuel.
(e) Time for filing claim.A claim for
refund under section 4091(d) may be filed
any time after the first producer has filed
the return of the tax to which the claim re-
lates and before the end of the period pre-
scribed by section 6511 for the filing of a
claim for refund of that tax.
(f) Effective date.This section is ap-
plicable with respect to refunds of tax im-
posed by section 4091 after December 31,
1998.
Par. 5. Section 48.4101–2T is added to
read as follows:

§48.4101–2T Information reporting
(temporary).
(a)(1) through (a)(3). [Reserved]
(a)(4) Registered aviation fuel produc-
ers.After June 30, 1999, each person that
is registered under section 4101 as a pro-
ducer of aviation fuel must make a return
showing—
(i) The name and employer identifica-
tion number of each unregistered person
to whom it sold aviation fuel for resale;
(ii) The volume of the aviation fuel
sold to such persons;
(iii) The date and location of such
sales; and
(iv) Any other information required by
the Commissioner.
(b) through (d). [Reserved]
Par. 6. Section 48.4101-3T is added to
read as follows:
§48.4101–3T Registration; special rules
for kerosene (temporary).
(a) Application of §48.4101–1.The
references to diesel fuel in §§48.4101–
1(a)(1) and (f)(1)(ii) are treated as refer-
ences to either diesel fuel or kerosene,
and the references in §§48.4101–
1(b)(5)(i) and (f)(2) to paragraphs (c)(1)
or (d) of §48.4101–1 are treated as refer-
ences also to paragraph (c) of this section.
(b) Transitional registration rule—(1)
In general.A person is treated as a tax-
able fuel registrant if, on June 30, 1998,
the person—
(i) Is an enterer, refiner, terminal opera-
tor, or throughputter of kerosene and is
registered under section 4101 as a pro-
ducer or importer of aviation fuel; or
(ii) Operates one or more terminals that
store kerosene (and no other type of tax-
able fuel) and each position holder at each
of its terminals is a taxable fuel registrant.
(2) Termination.A person treated as
registered under this paragraph (b) is
treated as registered until the earlier of—
(i) The effective date of a registration
issued under §48.4101–1(g)(3) with re-
spect to kerosene;
(ii) The effective date of a revocation
or suspension of registration under
§48.4101–1(i); or
(iii) April 1, 1999.
(c) Persons that may, but are not re-
quired to, be registered. A person may,
but is not required to, be registered under
section 4101 with respect to the tax im-
posed by section 4081 if the person is a
kerosene feedstock user (defined in
§48.4082–9T).
(d) Additional terms and conditions of
registration for certain terminal opera-
tors. A legible and conspicuous notice
stating: “DYED KEROSENE, NONTAX-
ABLE USE ONLY, PENALTY FOR TAX-
ABLE USE”must be provided by each
terminal operator to any person that re-
ceives dyed kerosene at a terminal rack of
that operator. This notice must be pro-
vided by the time of the removal and must
appear on all shipping papers, bills of lad-
ing, and similar documents that are pro-
vided by the terminal operator to accom-
pany the removal of the fuel.
(e) Effective date.This section is ap-
plicable after June 30, 1998.
Par. 7. Sections 48.6427–10T and
48.6427–11T are added to read as fol-
lows:
§48.6427–10T Claims with respect to
kerosene (temporary).
(a) Claims under §48.6427–8—(1) In
general.For purposes of §48.6427–8,
diesel fuelincludes kerosene.
(2) Blocked pumps.Kerosene is treated
as satisfying the conditions of §48.6427–
8(b)(1) only if it was not sold from a
blocked pump (as described in §48.6427–
11T(b)).
(b) Claims under §48.6427–9.For pur-
poses of §48.6427-9, diesel fuel includes
kerosene.
(c) Effective date.This section is ap-
plicable to kerosene taxed after June 30,
1998.
§48.6427–11T Special rules for claims by
registered ultimate vendors of kerosene
(blocked pump)(temporary).
(a) Overview. This section provides
rules relating to claims by registered ulti-
mate vendors for payments and income
tax credits with respect to kerosene that is
sold from a blocked pump. For rules re-
lating to claims by registered ultimate
vendors for kerosene that is sold for farm-
ing use or use by a State, see §§48.6427–9
and 48.6427–10T.
(b) Definition; blocked pump.A
blocked pumpis a fuel pump that meets
the following conditions:
(1) It is used to dispense undyed
kerosene that is sold at retail for use by
the buyer in a nontaxable use.
(2) It is at a fixed location and cannot
(because, for example, of its distance
from a road surface or train track or the
length of its delivery hose) be used to dis-
pense fuel directly into the fuel supply
tank of a diesel-powered highway vehicle
or train.
(3) It is identified with a legible and
conspicuous notice stating: “UNDYED
UNTAXED KEROSENE, NONTAXABLE
USE ONLY”.
(c) Conditions to allowance of credit or
payment.Notwithstanding §48.6427-
9(c), a claim for a credit or payment with
respect to undyed kerosene is allowable
under section 6427(l)(5)(B)(i) if—
(1) Tax was imposed by section 4081
on the kerosene to which the claim re-
lates;
(2) The claimant sold the kerosene
from a blocked pump;
(3) The claimant is a registered ulti-
mate vendor of kerosene; and
(4) The claimant has filed a timely
claim for a credit or payment that contains
the information required under paragraph
(e) of this section.
(d) Form of claim.The rules of
§48.6427–9(d) apply to claims filed under
this section.
(e) Content of claim.Each claim for
credit or payment under this section must
contain the following information with re-
spect to all the kerosene covered by the
claim:
(1) The total number of gallons covered
by the claim.
(2) A statement by the claimant that tax
has been imposed on the kerosene cov-
ered by the claim.
(3) The claimant’s registration number.
(4) A statement that the claimant has
not included the amount of the tax in its
sales price of the kerosene and has not
collected the amount of tax from its
buyer.
(f) Time and place for filing claim.The
rules of §48.6427–9(f) apply to claims
filed under this section.
(g) Effective date.This section is ap-
plicable June 30, 1998.
PART 145—TEMPORARY EXCISE
TAX REGULATIONS UNDER THE
HIGHWAY REVENUE ACT OF 1982
(PUB. L. 97–424)
Par. 8. The authority citation for part
145 continues to read in part as follows:
1998–30 I.R.B.11July 27, 1998

Authority: 26 U.S.C. 7805 * * *
Par. 9. Section 145.4052–1 is amended
as follows:
1. Paragraph (a)(2)(ii) is redesignated
as paragraph (a)(2)(ii)(A).
2. Paragraph (a)(2)(ii)(A), as redesig-
nated, is amended by removing the lan-
guage “Both” and adding “For a sale be-
fore July 1, 1998, both” in its place and
removing the language “or” at the end.
3. Paragraph (a)(2)(ii)(B) is added to
read as follows:
§145.4052–1 Special rules and
definitions.
(a) * * *
(2) * * *
(ii) * * *
(B) For a sale after June 30, 1998, and
regardless of the registration status of the
seller or the purchaser, the seller has in
good faith accepted from the purchaser a
statement that the purchaser executed in
good faith and that is in substantially the
same form as the certificate described in
paragraph (a)(6) of this section, except
that the statement must be signed under
penalties of perjury and need not contain
a registration number, or
* * * * *
PART 602—OMB CONTROL
NUMBERS UNDER THE
PAPERWORK REDUCTION ACT
Par. 10. The authority citation for part
602 continues to read as follows:
Authority: 26 U.S.C. 7805.
Par. 11. In §602.101, paragraph (c) is
amended by:
1. Removing the following entry from
the table:
§602.101 OMB Control numbers.
* * * * *
(c) * * *
CFR part or section Current OMB
where identifiedcontrol number
and described
* * * * *
145.4052–1 . . . . . . . . . . . . . .1545–0120
1545–0745
1545–1076
* * * * *
2. Adding entries in numerical order to
the table to read as follows:
§602.101 OMB Control numbers.
* * * * *
(c) * * *
CFR part or section Current OMB
where identifiedcontrol number
and described
* * * * *
48.4082–7T . . . . . . . . . . . . . .1545–1608
48.4082–8T . . . . . . . . . . . . . .1545–1608
48.4091–3T . . . . . . . . . . . . . .1545–1608
* * * * *
48.4101–2T . . . . . . . . . . . . . .1545–1608
48.4101–3T . . . . . . . . . . . . . .1545–1608
* * * * *
48.6427–11T . . . . . . . . . . . . .1545–1608
* * * * *
145.4052–1 . . . . . . . . . . . . . .1545–1608
1545–0120
1545–0745
1545–1076
* * * * *
Michael P. Dolan,
Deputy Commissioner of
Internal Revenue.
Approved June 17, 1998.
Donald C. Lubick,
Assistant Secretary of
the Treasury.
(Filed by the Office of the Federal Register on June
26, 1998, 2:02 p.m., and published in the issue of the
Federal Register for July 1, 1998, 63 F.R. 35799)
July 27, 1998121998–30 I.R.B.

1998–30 I.R.B.13July 27, 1998
Weighted Average Interest Rate
Update
Notice 98–37
Notice 88–73 provides guidelines for
determining the weighted average interest
rate and the resulting permissible range of
interest rates used to calculate current lia-
bility for the purpose of the full funding
limitation of § 412(c)(7) of the Internal
Revenue Code as amended by the Om-
nibus Budget Reconciliation Act of 1987
and as further amended by the Uruguay
Round Agreements Act, Pub. L. 103–465
(GATT).
The average yield on the 30-year Trea-
sury Constant Maturities for June 1998 is
5.70 percent.
The following rates were determined
for the plan years beginning in the month
shown below.
Part III. Administrative, Procedural, and Miscellaneous
90% to 106%90% to 110%
WeightedPermissiblePermissible
MonthYearAverageRangeRange
July19986.555.90 to 6.955.90 to 7.21
Drafting Information
The principal author of this notice is
Donna Prestia of the Employee Plans Di-
vision. For further information regarding
this notice, call (202) 622-6076 between
2:30 and 3:30 p.m. Eastern time (not a
toll-free number). Ms. Prestia’s number
is (202) 622-7473 (also not a toll-free
number).
Notice of Proposed Rulemaking
and Notice of Public Hearing
Kerosene Tax; Aviation Fuel Tax;
Tax on Heavy Trucks and
Trailers
REG–119227–97
DEPARTMENT OF THE TREASURY
Internal Revenue Service
26 CFR Part 48
AGENCY: Internal Revenue Service
(IRS), Treasury.
ACTION: Proposed rule, notice of pro-
posed rulemaking by cross-reference to
temporary regulations and notice of pub-
lic hearing.
SUMMARY: In T.D. 8774, page 5 of this
Bulletin, the IRS is issuing temporary
regulations relating to the kerosene and
aviation fuel excise taxes and the tax on
the first retail sale of certain tractors,
truck, trailer, and semitrailer chassis and
bodies. The text of those temporary regu-
lations also serves as the text of these pro-
posed regulations.
DATES: Written comments must be re-
ceived by September 29, 1998. Requests
to speak and outlines of oral comments to
be discussed at the public hearing sched-
uled for Wednesday, November 4, 1998,
must be received by September 29, 1998.
ADDRESSES: Send submissions to:
CC:DOM:CORP:R (REG–119227–97),
room 5226, Internal Revenue Service,
POB 7604, Ben Franklin Station, Wash-
ington, DC 20044. Submissions may be
hand delivered between the hours of 8:00
a.m. and 5 p.m. to: CC:DOM:CORP:R
(REG–119227–97), 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.
The public hearing will be held in the IRS
Auditorium, Seventh Floor, 7400 Corri-
dor, Internal Revenue Building, 1111
Constitution Avenue, NW, Washington,
DC.
FOR FURTHER INFORMATION CON-
TACT: Concerning the regulations, Frank
Boland (202) 622-3130; concerning sub-
missions and the hearing, LaNita
VanDyke (202) 622-7180 (not toll-free
numbers).
SUPPLEMENTARY INFORMATION:
Paperwork Reduction Act
The collection of information con-
tained in this notice of proposed rulemak-
ing has been submitted to the Office of
Management and Budget for review in ac-
cordance with the Paperwork Reduction
Act of 1995 (44 U.S.C. 3507(d)). Com-
ments on the collection of information
should be sent to the Office of Manage-
ment and Budget, Attn: Desk Officer
for the Department of the Treasury, Office
of Information and Regulatory Affairs,
Washington, DC 20503, with copies to
the Internal Revenue Service,Attn: IRS
Reports Clearance Officer, OP:FS:FP,
Washington, DC 20224. Comments on
the collection of information should be re-
ceived by August 31, 1998. Comments
are specifically requested concerning:
Whether the proposed collection of in-
formation is necessary for the proper per-
formance of the functions of the Internal
Revenue Service, including whether the
information will have practical utility;
The accuracy of the estimated burden
associated with the proposed collection of
information (see below);
How the quality, utility, and clarity of
the information to be collected may be en-
hanced;
How the burden of complying with the
proposed collection of information may
be minimized, including through the ap-
plication of automated collection tech-
niques or other forms of information tech-
nology; and

Estimates of capital or start-up costs of
operation, maintenance, and purchase of
services to provide information.
The collection of information in this
notice of proposed rulemaking is in
§§48.4052–1, 48.4082–7(a), 48.4082–
8(e), 48.4091–3(c), 48.4101–2(a)(4),
48.4101–3(d), and 48.6427–11. This in-
formation is required to support exempt
transactions and to inform consumers of
the type of fuel that is being purchased.
The likely respondents are businesses and
other for-profit organizations.
Estimated total annual reporting bur-
den: 3,340 hours.
The estimated annual burden per re-
spondent varies from .20 hours to 1 hour,
depending on individual circumstances,
with an estimated average of .29 hour.
Estimated number of respondents:
11,600.
Estimated annual frequency of re-
sponses: On occasion.
An agency may not conduct or sponsor,
and a person is not required to respond to,
a collection of information unless the col-
lection of information displays a valid
control number assigned by the Office of
Management and Budget.
Books or records relating to a collec-
tion of information must be retained as
long as their contents may become mater-
ial in the administration of any internal
revenue law. Generally, tax returns and
tax return information are confidential, as
required by 26 U.S.C. 6103.
Background
Temporary regulations published in
T.D. 8774 provide rules relating to the
kerosene tax, certain aviation fuel tax re-
funds allowed by section 4091(d), and
registration requirements for certain
heavy vehicle manufacturers and retail-
ers. The text of those regulations also
serves as the text of these proposed regu-
lations relating to kerosene. The pream-
ble to the temporary 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. It is hereby certified that the collec-
tion of information in these regulations
will not have a significant economic im-
pact on a substantial number of small en-
tities. This certification is based upon the
fact that the time required to prepare and
submit the exemption certificates de-
scribed in these regulations (many of
which are similar to certificates that are
already in use) is minimal and will not
have a significant impact on those small
entities that choose to provide the certifi-
cates. Therefore, a Regulatory Flexibility
Analysis under the Regulatory Flexibility
Act (5 U.S.C. chapter 6) is not required.
Pursuant to section 7805(f) of the Internal
Revenue Code, 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 Public Hearing
Before these proposed regulations are
adopted as final regulations, considera-
tion will be given to any comments that
are submitted (in the manner described in
the ADDRESSES caption) timely to the
IRS. All comments will be available for
public inspection and copying.
A public hearing has been scheduled
for Wednesday, November 4, 1998, at 10
a.m. in the IRS Auditorium, Internal Rev-
enue Building, 1111 Constitution Avenue,
NW, Washington DC. Because of access
restrictions, visitors will not be admitted
beyond the Internal Revenue Building
lobby more than 15 minutes before the
hearing starts.
The rules of 26 CFR 601.601(a)(3)
apply to the hearing.
Persons that wish to present oral com-
ments at the hearing must submit com-
ments by September 29, 1998, and submit
an outline of the topics to be discussed
and the time to be devoted to each topic
by September 29, 1998.
A period of 10 minutes will be allotted
to each person for making comments.
An agenda showing the scheduling of
the speakers will be prepared after the
deadline for receiving outlines has
passed. Copies of the agenda will be
available free of charge at the hearing.
Drafting Information
The principal author of these regulations
is Frank Boland, Office of the Assistant
Chief Counsel (Passthroughs and Special
Industries), IRS. However, other person-
nel from the IRS and the Treasury Depart-
ment participated in their development.
*****
Proposed Amendments to the Regulations
Accordingly, 26 CFR part 48 is pro-
posed to be amended as follows:
PART 48—MANUFACTURERS AND
RETAILERS EXCISE TAXES
Paragraph 1. The authority citation for
part 48 is amended by adding entries in
numerical order to read in part as follows:
Authority: 26 U.S.C. 7805 * * *
Section 48.4052–1 also issued under 26
U.S.C. 4052 * * *
Sections 48.4082–6, 48.4082–7, and
48.4082–8 also issued under 26 U.S.C.
4082 * * *
Section 48.4101–3 also issued under 26
U.S.C. 4101(a) * * *
Sections 48.6427–10 and 48.6427–11
also issued under 26 U.S.C. 6427(n) * * *
Par. 2. In subpart H, §48.4052–1 is
added to read as follows:
§48.4052–1 Special rule.
After June 30, 1998, the sale of an arti-
cle is a taxable sale unless the seller has in
good faith accepted from the purchaser a
statement that the purchaser executed in
good faith and that is in substantially the
same form as the certificate described in
§145.4052–1(a)(6) of this chapter, except
that the statement must be signed under
penalties of perjury and need not include
a registration number.
Par. 3. Section 48.4081–1 is amended
as follows:
1. Paragraph (b) is amended by adding
the definition of kerosene.
2. Paragraph (d) is revised.
The addition and revision read as fol-
lows:
§48.4081–1 Taxable fuel; definitions.
* * * * *
(b) * * *
Kerosenemeans—
(1) The two grades of kerosene (No.
1–K and No. 2–K) described in ASTM
Specification D 3699; and
(2) Kerosene-type jet fuel described in
ASTM Specification D 1655 and military
July 27, 1998141998–30 I.R.B.

specifications MIL–T–5624R and MIL–
T–83133D (Grades JP–5 and JP–8). For
availability of ASTM and military specifi-
cation material, see §48.4081–1(c)(2)(i).
* * * * *
(d) Effective date.
(1) Except as provided in paragraph
(d)(2) of this section, this section is ap-
plicable January 1, 1994.
(2) In paragraph (b) of this section—
(i) The definition of aviation gasoline
and the third sentence in the definition of
terminal are applicable January 2, 1998;
and
(ii) The definition of kerosene is ap-
plicable July 1, 1998.
Par. 4. Sections 48.4082–6, 48.4082–7,
48.4082–8, 48.4082–9 and 48.4082–10
are added to read as follows:
§48.4082–6 Kerosene; treatment as
diesel fuel in certain cases.
[The text of this proposed section is the
same as the text of §48.4082–6T pub-
lished in T.D. 8774.]
§48.4082–7 Kerosene; notice required
with respect to dyed kerosene.
[The text of this proposed section is the
same as the text of §48.4082–7T pub-
lished in T.D. 8774.]
§48.4082–8 Kerosene; exemption for
aviation-grade kerosene.
[The text of this proposed section is the
same as the text of §48.4082–8T pub-
lished in T.D. 8774.]
§48.4082–9 Kerosene; exemption from
non-fuel feedstock purposes.
[The text of this proposed section is the
same as the text of §48.4082–9T pub-
lished in T.D. 8774.]
§48.4082–10 Kerosene; additional
exemption from floor stocks tax.
[The text of this proposed section is the
same as the text of §48.4082–10T pub-
lished in T.D. 8774.]
Par. 5. Section 48.4091-3 is added to
read as follows:
§48.4091–3 Aviation fuel; conditions to
allowance of refunds of aviation fuel tax
under section 4091(d).
[The text of this proposed section is the
same as the text of §48.4091–3T pub-
lished in T.D. 8774.]
Par. 6. Section 48.4101–2 is amended by
adding paragraph (a)(4) to read as follows:
§48.4101–2 Information reporting.
(a) * * *
(4) Registered aviation fuel producers.
[The text of this proposed paragraph is
the same as the text of §48.4101–2T(a)(4)
published in T.D. 8774.]
Par. 7. Section 48.4101–3 is added to
read as follows:
§48.4101–3 Registration; special rules
for kerosene.
[The text of this proposed section is the
same as the text of §48.4101–3T pub-
lished in T.D. 8774.]
Par. 8. Sections 48.6427–10 and
48.6427–11 are added to read as follows:
§48.6427–10 Claims with respect to
kerosene.
[The text of this proposed section is the
same as the text of §48.6427–10T pub-
lished in T.D. 8774.]
§48.6427–11 Special rules for claims by
registered ultimate vendors of kerosene
(blocked pump).
[The text of this proposed section is the
same as the text of §48.6427-11T pub-
lished in T.D. 8774.]
Michael P. Dolan,
Deputy Commissioner of
Internal Revenue.
(Filed by the Office of the Federal Register on June
26, 1998, 2:02 p.m., and published in the issue of the
Federal Register for July 1, 1998, 63 F.R. 35893)
1998–30 I.R.B.15July 27, 1998

July 27, 1998161998–30 I.R.B.
Part IV. Items of General Interest
Foreign Liquidations and
Reorganizations; Amendment
Announcement 98–69
AGENCY: Internal Revenue Service
(IRS), Treasury
ACTION: Amendment to notice of pro-
posed rulemaking.
SUMMARY: This document removes
from an existing (1991) notice of pro-
posed rulemaking [INTL–54–91;
INTL–178–86, 1991–2 C.B. 1070] the
special (August 26, 1991) effective date
rule for the definition of the all earnings
and profits amount. The IRS and the
Treasury Department believe that issues
regarding the all earnings and profits
amount should be studied; thus, when
final regulations under section 367(b) are
issued with respect to the all earnings and
profits amount, such regulations will have
a prospective effective date. This modifi-
cation may affect domestic corporations
in connection with an acquisition of a for-
eign corporation in a liquidation de-
scribed in section 332 or in an asset acqui-
sition described in section 368(a)(1)).
DATES: Written comments must be re-
ceived by September 17, 1998.
ADDRESSES: Send submissions to:
CC:DOM:CORP:R (REG–209035–86),
Room 5228, Internal Revenue Service,
POB 7604, Ben Franklin Station, Wash-
ington, DC 20044. In the alternative, sub-
missions may be hand delivered between
the hours of 8 a.m. and 5 p.m. to:
CC:DOM:CORP:R (REG–209035–86),
Courier’s Desk, Internal Revenue Ser-
vice, 1111 Constitution Ave., NW, Wash-
ington, DC.
FOR FURTHER INFORMATION CON-
TACT: Philip L. Tretiak at (202) 622-
3860 (not a toll-free call).
SUPPLEMENTARY INFORMATION:
Background
Section 367(b) was enacted in its cur-
rent form by the Tax Reform Act of 1976.
On December 27, 1977, proposed and
temporary regulations §§7.367(b)–1
through 7.367(b)–12 were adopted (T.D.
7530, 1978–1 C.B. 92). Prior to the is-
suance of a notice of proposed rulemak-
ing in 1991 (the 1991 proposed regula-
tions), discussed below, the regulations
under section 367(b) were amended on
several occasions. The 1991 proposed
regulations, which were published in the
Federal Registeron August 26, 1991 (56
F.R. 41993), propose to completely revise
the regulations under section 367(b), as
well as the rules under section 367(a) with
respect to certain transfers of stock or se-
curities by U.S. persons to foreign corpo-
rations.
Section 1.367(b)–6(a) of the proposed
regulations provides that the rules con-
tained in the section 367(b) proposed reg-
ulations will be effective for exchanges
that occur on or after the date that is 30
days after final regulations are published.
However, an exception to the general ef-
fective date provides that §1.367(b)–2(d)
(relating to the definition and computa-
tion of the “all earnings and profits
amount”) is effective for exchanges that
occur on or after August 26, 1991. T.D.
8770, a package of final regulations, pub-
lished in 1998–27 I.R.B. 4, contains final
rules with respect to the section 367(a)
portion of the 1991 proposed regulations
(to the extent that such rules were not pre-
viously finalized) and final rules with re-
spect to the section 367(b) portion of the
1991 proposed regulations, but generally
only to the extent that a particular transac-
tion is subject to both sections 367(a) and
(b). The final regulations do not address
the all earnings and profits amount.
The IRS and the Treasury Department
believe that issues regarding the all earn-
ings and profits amount should be studied
before final regulations are promulgated.
Moreover, the IRS and the Treasury De-
partment believe that the final regulations
concerning the all earnings and profits
amount should not be subject to a special
effective date. Thus, this notice of pro-
posed rulemaking removes from the 1991
proposed regulations the special (August
26, 1991) effective date rule for the defin-
ition of the all earnings and profits
amount. When final regulations under
section 367(b) are issued with respect to
the all earnings and profits amount, such
regulations will have a prospective effec-
tive date.
Special Analysis
It has been determined that this notice
of proposed rulemaking is not a signifi-
cant regulatory action as defined in Exec-
utive Order 12866. Therefore, a regula-
tory assessment is not required. It has
also been determined that this regulation
does not have a significant impact on
small entities because this regulation,
which only contains a limited effective
date rule, impacts only U.S. corporations
with investments in foreign corporations.
Thus, the Regulatory Flexibility Act (5
U.S.C. chapter 6) does not apply to these
regulations, and therefore, a Regulatory
Flexibility Analysis is not required. Pur-
suant 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
Before these proposed regulations are
adopted as final regulations, consideration
will be given to any written comments (a
signed original and eight (8) copies) that
are submitted timely to the Internal Rev-
enue Service. All comments will be avail-
able for public inspection and copying.
Drafting Information
The principal author of these proposed
regulations is Philip L. Tretiak of the Of-
fice of Associate Chief Counsel (Interna-
tional), IRS. However, other personnel
from the IRS and the Treasury Depart-
ment participated in their development.
*****
Proposed Amendments to the Regulations
Accordingly, 26 CFR part 1 is pro-
posed to be amended as follows:
PART 1—INCOME TAXES
Paragraph 1. The authority citation for
part 1 continues to read in part as follows:
Authority: 26 U.S.C. 7805. * * *
§1.367(b)–6 [Amended]
Par. 2. Section 1.367(b)–6, as proposed
to be added on Monday, August 26, 1991

1998–30 I.R.B.17July 27, 1998
(56 F.R. 42015), is amended by removing
the last sentence of paragraph (a).
Michael P. Dolan,
Deputy Commissioner of
Internal Revenue.
(Filed by the Office of the Federal Register on June
18, 1998, 8:45 a.m., and published in the issue of the
Federal Register for June 19, 1998, 63 F.R. 33595)
Deletions from Cumulative List
of Organizations Contributions
to Which Are Deductible Under
Section 170 of the Code
Announcement 98–70
The names of organizations that no
longer qualify as organizations described
in section 170(c)(2) of the Internal Rev-
enue Code of 1986 are listed below.
Generally, the Service will not disallow
deductions for contributions made to a
listed organization on or before the date
of announcement in the Internal Revenue
Bulletin that an organization no longer
qualifies. However, the Service is not
precluded from disallowing a deduction
for any contributions made after an orga-
nization ceases to qualify under section
170(c)(2) if the organization has not
timely filed a suit for declaratory judg-
ment under section 7428 and if the con-
tributor (1) had knowledge of the revoca-
tion of the ruling or determination letter,
(2) was aware that such revocation was
imminent, or (3) was in part responsible
for or was aware of the activities or omis-
sions of the organization that brought
about this revocation.
If on the other hand a suit for declara-
tory judgment has been timely filed, con-
tributions from individuals and organiza-
tions described in section 170(c)(2) that
are otherwise allowable will continue to
be deductible. Protection under section
7428(c) would begin on July 27, 1998,
and would end on the date the court first
determines that the organization is not de-
scribed in section 170(c)(2) as more par-
ticularly set forth in section 7428(c)(1).
For individual contributors, the maxi-
mum deduction protected is $1,000, with
a husband and wife treated as one con-
tributor. This benefit is not extended to
any individual who was responsible, in
whole or in part, for the acts or omissions
of the organization that were the basis for
revocation.
Larry Lee Ministries
Rowlett, TX
Share, Inc.
Chicago, IL
Foundations Status of Certain
Organizations
Announcement 98–71
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:
Oconee Greenway Organization Inc.,
Athens, GA
Ohio Emergency Response Center,
London, OH
Oklahoma Coalition for Victims Rights
Inc., Tulsa, OK
Old Erie Community Development
Corporation, Evansville, IN
On the Daddy Track Inc., New
Berlinville, PA
Open Hands Ministry Inc., Buford,
GA
Operation Save the Children Inc.,
San Antonio, TX
Operation STREETS Inc.,
Jacksonville, FL
Orangedale Parent-Teacher-Student
Organization, Phoenix, AZ
Orchid Association, Middletown, OH
Orland Park Pioneer Wrestling Boosters
Association, Orland Park, IL
Orleans Community Housing
Development Corporation, Metairie,
LA
Oromo Community in San Diego, San
Diego, CA
Owensboro Rotary Club Foundation Inc.,
Owensboro, KY
Pak Impak, Doylestown, PA
Pan African Federation Organization Inc.,
Philadelphia, PA
Parent Teacher Organization of Benvenue
Elementary School, Rocky Mount, NC
Parents Reaching Out of Davidson
County, Lexington, NC
Parents Teach Parents English as a
Second Language Inc., Saddle River,
NJ
Park City Youth Coalition I Incorporated,
Park City, UT
Park Falls Area Community Foundation
Inc., Park Falls, WI
Partners for Independence Inc., Piney
Flats, TN
Partnerships in Building Illinois, Peoria,
IL
Pathways Inc., Reidsville, NC
Patricia Stevens College Foundation Inc.,
St. Louis, MO
P A W Safety Charities, Dallas, TX
Peachtree City Concert Band Inc.,
Peachtree City, GA
Pebbles of Faith, Inc., Bolivar, MO
Pennsylvania Advisory Committee on
Alcohol Drugs and Disabilities,
Philadelphia, PA
People Reaching Out Center, Chicago, IL
Perrine Baseball and Softball
Association, Miami, FL
Personal Development Institute Inc.,
Tucson, AZ
Phoenix Center Association, Phoenix,
AZ
Physicians for a Violence-Free Society,
Dallas, TX
Pikes Peak Festival of Learning Inc.,
Colorado Springs, CO
Pines of McCormick, McCormick, SC
Pioneering Black America Foundation,
Wentzville, MO
Pittsburgh Community Reinvestment
Group, Pittsburgh, PA
Plexus, Richmond, VA
Plymouth Housing Alliance, Plymouth,
MN
Ponte Vedra-Palm Valley Athletic
Association Inc., Ponte Verda Beach,
FL
Posey International Center for the Study
of Traditional Knowledge, Henderson,
KY

July 27, 1998181998–30 I.R.B.
Present Time Dream Factory, Santa Fe,
NM
Presentation Catholic Church
Community in Action Inc., Chicago, IL
Prestonburg-Floyd County Public
Properties Corporation, Prestonburg,
KY
Prevention Place Inc., Forest City, NC
Probationers Educational Growth
Advisory Council Inc., New Port
Richey, FL
Professional Ski Instructors of America-
Intermountain Division, Salt Lake
City, UT
Project Goodwill Inc., Columbus, OH
Project Help of West Orlando, Orlando,
FL
Project STARS, Baytown, TX
Project Training Education and
Motivation Inc., Beavercreek, OH
Pyramid Recovery Center, Memphis, TN
Quakertown Community Hospital
Medical Foundation, Bethlehem, PA
Quantum Testing and Research Institute,
Park Forest, IL
Raphael Heights Homes Inc., Phila, PA
Reality Theatre Company, Albuquerque,
NM
Red Path Inc., Flagstaff, AZ
Renaissance Economic Development
Project of Park Heights Inc.,
Baltimore, MD
Resource Reutilization Network Inc.,
Leonia, NJ
Resourcemobile Inc., Miami, FL
Resurrection Catholic School
Endowment Fund, Lakeland, FL
Rev. Willie L. Jordan Community Service
Center Inc., Harvey, IL
Rio Vista Equipo Medico Inc.,
Shrewsbury, NJ
River Cities Boy Choir, Parkersburg, WV
Riverfront Musical Festival Inc., Tampa,
FL
Riverside Development Corporation Inc.,
Minneapolis, MN
River View Health Systems Inc.,
Erdenheim, PA
Robert Abbott Middle School PTO,
Waukegan, IL
Robert E. Willis Sr. Gift Book Program
Inc., Murfreesboro, TN
Ros Inc., Birmingham, AL
Rotary Club of Niles Morton Grove
Charitable Foundation, Niles, IL
R-USA, Evergreen, CO
Safe Campuses Now Inc., Athens, GA
Safe Talk Inc., Littlestown, PA
Salvation Army Reno Residences Inc.,
Rancho Palos Verdes, CA
Satellite Touch Down Club Inc., Satellite
Beach, FL
Scat Association, Middletown, OH
Scenic Associates, Wilmington, NC
Scholastic Art Awards of Central Indiana
Inc., Indianapolis, IN
Science Exposures Inc., Rochester, MN
Seneca Falls, Chicago, IL
Senior Citizen Housing Alliance,
Longmont, CO
Share Arkansas, Little Rock, AR
Sids Alliance of Illinois Inc., Glenview,
IL
Singing Americans of Stanley County
North Carolina Inc., Badin, NC
Singles Helping Others Inc., Princeton,
NJ
Sluggers Forever Inc., New Ulm, MN
Smith College Class of 1988,
San Antonio, TX
Snyder Educational Enrichment
Foundation, Snyder, OK
Society for Chronic Diseases,
Minneapolis, MN
South Beach Film Festival Inc., North
Miami Beach, FL
South George Street Community
Partnership, York, PA
South Gulf Basketball Officials
Association Inc., Lehigh Acres, FL
Southeast Asian American Community
Organization LTD, Des Moines, IA
Southeastern Minnesota High School
Honors Choir, Byron, MN
Southern Nursing Research Society,
Columbia, SC
Southern Orthodox Radio
Communications Enterprises Source,
Miami, FL
Southwest Museum Foundation Inc.,
Mesa, AZ
Sparta White County Citizens for the
Arts, Sparta, TN
Sprague High School Choir Boosters
Foundation Inc., Salem, OR
Springview Substance Abuse & Outreach
Program, Chat, TN
St. Landry High School Rodeo
Association, Opelousas, LA
St. Marthas Housing II Inc., Sarasota, FL
St. Paul Midway Lions Club Foundation
Inc., W. St. Paul, MN
St. Thomas All Stars Steel Band,
St. Thomas, VI
Stapleton Coyote Booster Club,
Rio Rancho, NM
Stephens Evangelistic Association, Inc.,
Seagoville, TX
Stop Sudden Infant Death Syndrome
Minnesota, Cottage Grove, MN
Stoughton Rotary Special Projects
Foundation Inc., Stoughton, WI
Summit County Rotary Foundation,
Beckenridge, CO
Summit Educational Ass. Inc., New
Berlin, WI
Super Leaders Incorporated, Washington,
DC
Sussex County Foundation for Special
Needs Inc., Sparta, NJ
Teacher Education Foundation, Baton
Rouge, LA
Teamster Disaster Relief Fund,
Washington, DC
Teen Reach Corporation, Crestwood, IL
Teens Educators Moms Pops
Organization Tempo of Lakeland,
Lakeland, FL
Tendu Inc., Houston, TX
Tennessee Art Education Association,
Waverly, TN
Tennessee Early Intervention Network
for Children with Disabilities,
Nashville, TN
Terrapin Theatre, Chicago, IL
Tewsbury Athletic Association Inc.,
Califon, NJ
Thacker Avenue Elementary PTO,
Kissimmee, FL
The D. Association for Youth, Seattle,
WA
Thirty One Cuozzo St. Inc., Belleville,
NJ
3-Dimensional Recovery Services Inc.,
Oklahoma City, OK
311 Main Street, Carnegie, PA
Thunderbird Clubhouse Board Inc.,
Norman, OK
Tight & Shiny Theater Productions,
Chicago, IL
Top of Florida Soccer Club Inc.,
Tallahessee, FL
Topeka Teens Making a Difference Inc.,
Topeka, KS
Tow Operators Working to Eliminate
Drunk Driving Inc., Greencastle, IN
Towncreek Vision Corp., Leland, NC
Transistional Units Assisting Mankind,
Houston, TX
Trautwein School Mothers Club of the
Mehlville School District, St. Louis,
MO
Trees for Memphis Incorporated,
Germantown, TN

1998–30 I.R.B.19July 27, 1998
Trenton Park Neighborhood Corporation,
Washington, DC
Trinity Family Center, Lancaster, PA
Tulsa Youth Hockey Association, Tulsa,
OK
Turner Jackson Memorial Fund Inc.,
Trenton, NJ
Tyler Home Health Services,
Tunkhannock, PA
U-Care Inc., Milwaukee, WI
United Black Fund of Prince Georges
County Maryland Inc., Hyattsville,
MD
United Sponsors Society, Sicklerville, NJ
United States Driving Foundation, Inc.,
Annapolis, MD
Unity Hospice Care Inc., Morgantown,
WV
Unitversity of Minnesota M. Club
Foundation, St. Louis, MN
Up on the Mountain Inc., Signal
Mountain, TN
Up With Down Syndrome Inc.,
Columbus, GA
Uplift Recovery Home Inc., Chicago, IL
Upper Valley Association for the
Education of Young Children, Piqua,
OH
Uptown Lenoir Heritage Association Inc.,
Lenoir, NC
Utah Chamber Artists, Midvale, UT
Veterans & Community Outreach
Foundation, Flowery Branch, GA
Veterans Memorial Park Monument
Foundation Inc., Pensacola, FL
Veterans Self Help Group Foundation,
Flint, MI
Vetter Foundation, Omaha, NE
Vicki Popdan Foundation, Gaithersburg,
MD
Victim Sensitive Intervention Program,
Chicago, IL
Victory Through LOVEInc., Deland,
FL
Village Conservancy Inc., Cashiers, NC
Virginia Gay Hospital, Vinton, IA
Visually Impaired-Blind Support Training
and Assistance Group, Blythe, CA
VJS Inc., Seneca, PA
Volunteer Action Center of Indian River
County Inc., Vero Beach, FL
Volunteer Council for the Arizona Dept.
of Youth Treatment and Rehabilitation,
Phoenix, AZ
Walk Worthy Inc., Altamonte Springs, FL
Wall St. Danceworks Inc., Asheville, NC
War Casualties Memorial Association
Inc., Phenix City, AL
Ward Family Foundation Inc., Chicago,
IL
Warren Police Drug Abuse Resistance
Education DAREInc., Warren, MI
Washington Action Line, New Orleans,
LA
Wayzata Womens Choir, Wayzata, MN
Weber Human Services, Ogden, UT
Well-Spring, Allentown, PA
Wellspring Ministries, Whitehall, PA
Wesley Agape House Inc., Alexandria,
VA
West Cecil B. Moore Community
Corporation, Philadelphia, PA
West Central Illinois Center for
Independent Living, Quincy, IL
West Mesa High School Mustang
Football Boosters, Albuquerque, NM
West Orange High School Foundation
Inc., Windermere, FL
West Tallahatchie Day Care Inc., Webb,
MS
West Tennessee Cares, Jackson, TN
Western States Conference for Pharmacy
Residents Fellowships, Stockton, CA
Westmoreland Chodo Inc., Latrobe, PA
Westmoreland Human Services Inc.,
Greensburg, PA
Westpine Middle School Parent Teacher
Organization, Sunrise, FL
Whitestone Corporation, Lumberton, NJ
Wilson County Transportation Service
Inc., Wilson, NC
Windsor Freer Parents Association,
Imperial, MO
Winstanley-Industry Park Neighborhood
Organization, East St. Louis, IL
With Love Foundation Inc., Houston, TX
Wives Clubs Thrift Shop, Great Falls, MT
World Medical Relief, Geneva, IL
Wyoming Agricultural Leadership
Council, Cheyenne, WY
Yacai Inc., Baltimore, MD
Yale Hospital Properites Inc., Yale, MI
Young Virtuosos International, Dallas,
TX
Youth Sports Association, Long Beach,
CA
If an organization listed above submits
information that warrants the renewal of
its classification as a public charity or as a
private operating foundation, the Internal
Revenue Service will issue a ruling or 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.

July 27, 1998201998–30 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 A but not
to B, and the new ruling holds that it ap-
plies to both A and B, the prior ruling is
modified because it corrects a published
position. (Compare with amplified and
clarified, above).
Obsoleted describes a previously 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. A ruling
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

1998–30 I.R.B.21July 27, 1998
Numerical Finding List
1
Bulletin 1998–29
Announcements:
98–62, 1998–29 I.R.B. 13
98–68, 1998–29 I.R.B. 14
Notices:
98–36, 1998–29 I.R.B. 8
Proposed Regulations:
REG–104641–97, 1998–29 I.R.B. 9
REG–110403–98, 1998–29 I.R.B.11
REG–116608–97, 1998–29 I.R.B. 12
Revenue Procedures:
98–43, 1998–29 I.R.B. 8
Treasury Decisions:
8771, 1998–29 I.R.B. 6
8773, 1998–29 I.R.B. 4
1
A cumulative 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.

July 27, 1998221998–30 I.R.B.
Finding List of Current Action on
Previously Published Items
1
Bulletin 1998–29
*Denotes entry since last publication
1
A cumulative 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.

INTERNAL REVENUE BULLETIN
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