Internal Revenue Bulletin 1998-43 (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. 98–51, page 4.
LIFO; price indexes; department stores.The August
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, August 31,
1998.
EXEMPT ORGANIZATIONS
Announcement 98–94, page 32.
A list is given of organizations now classified as private foun-
dations.
TAX CONVENTIONS
Page 6.
The bilateral agreement between the United States and the
United Arab Emirates, providing for the reciprocal tax ex-
emption of income from the international operation of
ships/aircraft, is set forth.
ADMINISTRATIVE
Rev. Proc. 98–54, page 7.
Rescission of deficiency notice.Taxpayers are provided
with instructions for entering into an agreement with the Ser-
vice to rescind a notice of deficiency. Rev. Proc. 88–17 clar-
ified, modified, and superseded.
Announcement 98–93, page 10.
Public comments are requested on proposed new Form
8865, Information Return of U.S. Persons With Respect to
Certain Foreign Partnerships, and its accompanying instruc-
tions.
Internal Revenue
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Bulletin No. 1998–43
October 26, 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 37.
Announcement of Disbarments and Suspensions begins on page 33.
IRB 1998-43 10/21/98 4:34 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 1998-43 10/21/98 4:34 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. 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.
IRB 1998-43 10/21/98 4:34 PM Page 3

Section 472.—Last-in, First-out
Inventories
26 CFR 1.472–1: Last-in, first-out inventories.
LIFO; price indexes; department
stores.The August 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, August 31, 1998.
Rev. Rul. 98–51
The following Department Store Inven-
tory Price Indexes for August 1998 were
issued 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 inventory
and last-in, first-out inventory methods
for tax years ended on, or with reference
to, August 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.
October 26, 199841998–43 I.R.B.
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
Aug.Aug.from Aug. 1997
Groups 19971998 to Aug. 1998
1
1. Piece Goods . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .509.3555.19.0
2. Domestics and Draperies . . . . . . . . . . . . . . . . . . . . . . .652.8 630.9–3.4
3. Women’s and Children’s Shoes . . . . . . . . . . . . . . . . . .644.1656.21.9
4. Men’s Shoes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .895.6910.51.7
5. Infants’ Wear . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .621.2616.2–0.8
6. Women’s Underwear . . . . . . . . . . . . . . . . . . . . . . . . . .548.8579.15.5
7. Women’s Hosiery . . . . . . . . . . . . . . . . . . . . . . . . . . . . .301.6306.51.6
8. Women’s and Girls’ Accessories . . . . . . . . . . . . . . . . .539.7548.81.7
9. Women’s Outerwear and Girls’ Wear . . . . . . . . . . . . .397.4399.00.4
10. Men’s Clothing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .621.2621.00.0
11. Men’s Furnishings . . . . . . . . . . . . . . . . . . . . . . . . . . . .584.8594.01.6
12. Boys’ Clothing and Furnishings . . . . . . . . . . . . . . . . .492.2498.81.3
13. Jewelry . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1008.6981.9–2.6
14. Notions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .793.8767.8–3.3
15. Toilet Articles and Drugs . . . . . . . . . . . . . . . . . . . . . . .904.7940.74.0
16. Furniture and Bedding . . . . . . . . . . . . . . . . . . . . . . . . .661.0679.62.8
17. Floor Coverings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .598.8601.80.5
18. Housewares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .806.1809.90.5
19. Major Appliances . . . . . . . . . . . . . . . . . . . . . . . . . . . . .242.8238.0–2.0
20. Radio and Television . . . . . . . . . . . . . . . . . . . . . . . . . .75.471.4–5.3
21. Recreation and Education
2
. . . . . . . . . . . . . . . . . . . . .110.1103.5–6.0
22. Home Improvements
2
. . . . . . . . . . . . . . . . . . . . . . . . .132.3131.1–0.9
23. Auto Accessories
2
. . . . . . . . . . . . . . . . . . . . . . . . . . . .108.4107.3–1.0
Groups 1 – 15: Soft Goods . . . . . . . . . . . . . . . . . . . . . . . .594.5598.70.7
Groups 16 – 20: Durable Goods . . . . . . . . . . . . . . . . . . . .463.1460.2–0.6
Groups 21 – 23: Misc. Goods
2
. . . . . . . . . . . . . . . . . . . . .112.6107.8–4.3
Store Total
3
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .549.3548.4–0.2
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, food, liquor, to-
bacco, and contract departments.
IRB 1998-43 10/21/98 4:34 PM Page 4

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 6212.—Notice of
Deficiency
26 CFR 301.6212–1. Notice of deficiency.
For instructions on how to enter into an agree-
ment with the Service to rescind a notice of defi-
ciency, see Rev. Proc. 98–54, page 7.
1998–43 I.R.B.5October 26, 1998
IRB 1998-43 10/21/98 4:34 PM Page 5

Subpart A.—Tax Conventions
UNITED ARAB EMIRATES
UNITED ARAB EMIRATES
MINISTRY OF
FOREIGN AFFAIRS
ABU DHABI
DECEMBER 1, 1997
The Government of the United Arab
Emirates agrees to exempt from tax gross
income derived from the international op-
eration of ships or aircraft by individuals
who are residents of the United States
(other than citizens of the United Arab
Emirates) and corporations which are in-
corporated in the United States, this ex-
emption is granted on the basis of equiva-
lent exemptions granted by the United
States to individual residents of the
United Arab Emirates and to corporations
organized in the United Arab Emirates.
For the purposes of exemption from the
U.S. tax, the government of the United
Arab Emirates will be treated as an indi-
vidual resident of the United Arab Emi-
rates.
In this agreement:
(A) The terms “contracting state” and
“other contracting state” mean the United
Arab Emirates or the United States of
America, the Governments of which have
concluded this agreement.
(B) Gross income includes all income
derived from the international operation
of ships or aircraft, including:
(1) Income from the rental on full
(time or voyage) basis of ships or aircraft
used in international transport.
(2) Income from the rental on a bare-
boat basis of ships or aircraft used in in-
ternational transport.
(3) Income from the rental of con-
tainers and related equipment used in in-
ternational transport that is incidental to
income from the international operation
of ships and aircraft, and
(4) Gains from the sale or other
alienation of ships or aircraft used in in-
ternational transport derived by a person
primarily engaged in the international op-
eration of ships or aircraft.
The Government of the United Arab
Emirates proposes that, if the foregoing is
acceptable to the Government of the
United States, this note and the State De-
partment’s note in reply shall constitute
an Agreement. The Agreement shall have
effect with respect to taxable years begin-
ning on or after January 1, 1994.
This Agreement shall continue in force
until the Government of either contracting
state gives written notice of termination
of the Agreement to the other Contracting
State through Diplomatic Channels.
The Embassy of the United States of
America presents its compliments to the
Ministry of Foreign Affairs of the United
Arab Emirates and has the honor to refer
to the Ministry’s Note No. 3/1/73/8742
dated October 7, 1997, covering a draft
note from the Ministry of Finance and In-
dustry, which reads as follows:
BEGIN TEXT
The Government of the United Arab
Emirates agrees to exempt from tax gross
income derived from the international op-
eration of ships or aircraft by individuals
who are residents of the United States
(other than citizens of the United Arab
Emirates) and corporations which are in-
corporated in the United States. This ex-
emption is granted on the basis of equiva-
lent exemptions granted by the United
States to individual residents of the
United Arab Emirates and to corporations
organized in the United Arab Emirates.
For the purposes of exemption from the
U.S. tax, the Government of the United
Arab Emirates will be treated as an indi-
vidual resident of the United Arab Emi-
rates.
In this agreement:
(A) The terms “contracting state” and
“other contracting state” mean the United
Arab Emirates or the United States of
America, the governments of which have
concluded this agreement.
(B) Gross income includes all income
derived from the international operation
of ships or aircraft, including:
(1) Income from the rental on full
(time or voyage) basis of ships or aircraft
used in international transport.
(2) Income from the rental on a bare-
boat basis of ships or aircraft used in in-
ternational transport.
(3) Income from the rental of con-
tainers and related equipment used in in-
ternational transport that is incidental to
income from the international operation
of ships and aircraft, and
(4) Gains from the sale or other
alienation of ships or aircraft used in in-
ternational transport derived by a person
primarily engaged in the international op-
eration of ships or aircraft.
The Government of the United Arab
Emirates proposes that, if the foregoing is
acceptable to the Government of the
United States, this note and the State De-
partment’s note in reply shall constitute
an agreement. The agreement shall have
effect with respect to taxable years begin-
ning on or after January 1, 1994.
This agreement shall continue in force
until the government of either contracting
state gives written notice of termination
of the agreement to the other contracting
state through diplomatic channels.
END TEXT
The Embassy, on behalf of the Govern-
ment of the United States of America,
confirms its acceptance of the terms of the
Ministry’s note with the understanding
that in the case of a United Arab Emirates
corporation, the exemption from U.S. tax
shall apply only if the corporation meets
the ownership or public trading require-
ments of U.S. law. Therefore, the Min-
istry’s note and this note in reply consti-
tute an agreement which shall enter into
force on December 1, 1997, and shall
have effect with respect to taxable years
beginning on or after January 1, 1994.
This agreement shall continue in force
until the government of either contracting
state gives written notice of termination
of the agreement to the other contracting
party through diplomatic channels.
The Embassy of the United States of
America avails itself of this opportunity to
renew to the Ministry of Foreign Affairs
the assurances of its highest considera-
tion.
October 26, 199861998–43 I.R.B.
Part II. Treaties and Tax Legislation
IRB 1998-43 10/21/98 4:34 PM Page 6

1998–43 I.R.B.7October 26, 1998
26 CFR 601.105: Examination of returns and
claims for refund, credit, or abatement;
determination of correct tax liability.
(Also Part I, sections 6212; 301.6212–1)
Rev. Proc. 98–54
SECTION 1. PURPOSE
This revenue procedure provides tax-
payers with instructions for entering into
an agreement with the Internal Revenue
Service under § 6212(d) of the Internal
Revenue Code to rescind a notice of defi-
ciency. This revenue procedure clarifies,
modifies, and supersedes Rev. Proc. 88–
17, 1988–1 C.B. 692.
SECTION 2. BACKGROUND
.01 Section 6212(a) provides that if the
Secretary determines that there is a defi-
ciency in respect of any tax imposed by
subtitle A of title 26 (relating to income
taxes), subtitle B (relating to estate, gift,
and generation-skipping taxes), or chap-
ters 41, 42, 43, or 44 (relating to certain
excise taxes), the Secretary is authorized
to send a notice of the deficiency to the
taxpayer by certified mail or registered
mail.
.02 Section 6212(c)(1) provides, in
general, that if the Secretary has mailed to
the taxpayer a notice of deficiency as pro-
vided in § 6212(a), and the taxpayer files
a petition with the Tax Court within the
time prescribed in § 6213(a), the Secre-
tary has no right to determine any addi-
tional deficiency, except in the case of
fraud, and except as provided in § 6214(a)
(relating to assertion of greater deficien-
cies before the Tax Court), in
§ 6213(b)(1) (relating to mathematical or
clerical errors), in § 6851 or 6852 (relat-
ing to termination assessments), or in
§ 6861(c) (relating to jeopardy assess-
ments).
.03 Section 6213(a) states that within
90 days, or 150 days if the notice is ad-
dressed to a person outside the United
States, after the notice of deficiency au-
thorized in § 6212 is mailed, the taxpayer
may file a petition with the Tax Court for
a redetermination of the deficiency. Ex-
cept as provided in § 6851, 6852, or 6861,
no assessment of a deficiency and no levy
or proceeding in court for its collection
can be made, begun, or prosecuted until
the notice has been mailed to the tax-
payer, nor until the expiration of the 90-
day or 150-day restriction period, as the
case may be, nor, if a petition has been
filed with the Tax Court, until the decision
of the Tax Court has become final. Under
§ 6213(d), a taxpayer may waive these re-
strictions at any time.
.04 Section 6501 provides generally
that the amount of any tax imposed by
title 26 must be assessed within 3 years
after the return was filed. Section 6503(a)
provides that the running of the period of
limitations in § 6501 is suspended (after
the mailing of a notice under § 6212(a))
for the period during which the Secretary
is prohibited from making the assessment
or from collecting by levy or a proceeding
in court, and for 60 days thereafter.
.05(1) Section 6212(d) provides that
the Secretary may, with the consent of the
taxpayer, rescind any notice of deficiency
mailed to the taxpayer. Any notice so
rescinded is not treated as a notice of
deficiency for purposes of § 6212(c)(1)
(relating to further deficiency letters re-
stricted), § 6213(a) (relating to restric-
tions applicable to deficiencies and peti-
tion to Tax Court), and § 6512(a) (relating
to limitations in case of petition to Tax
Court), and the taxpayer has no right to
file a petition with the Tax Court based on
the notice.
(2) The Technical and Miscella-
neous Revenue Act of 1988 (Act),
§ 1015(m), 1988–3 C.B. 232, amended
§ 6212(d) by adding the following sen-
tence: “Nothing in this subsection shall
affect any suspension of the running of
any period of limitations during any pe-
riod during which the rescinded notice
was outstanding.” This amendment is ef-
fective for notices of deficiency issued on
or after January 1, 1986.
(3) The House Report accompany-
ing the Act provides the following exam-
ple to illustrate the operation of the final
sentence of § 6212(d):
[A]ssume that six months remain to
run on the statute of limitations with
respect to a return when the IRS is-
sues a statutory notice of deficiency.
Issuance of this notice suspends the
statute of limitations. If the IRS and
the taxpayer agree to rescind the
statutory notice, then as of the date
the notice is rescinded, the statute of
limitations again begins to run and
(in this example) six months remains
[sic] until the statute expires.
H.R. Rep. No. 795, 100th Cong., 2d Sess.
364 (1988).
SECTION 3. SIGNIFICANT CHANGES
AND CLARIFICATIONS TO REV.
PROC. 88–17
.01 Section 3.05(1) of Rev. Proc.
88–17 provides, in part, that the Service
will not rescind a notice of deficiency if,
on the date of rescission, the period of
limitations on assessment would have ex-
pired but for the issuance of the notice of
deficiency. This provision is deleted as a
result of the 1988 amendment to
§ 6212(d), which clarifies that a notice of
deficiency that is subsequently rescinded
suspends the period of limitations until
the date of its rescission. See section
4.05(1) of this revenue procedure.
.02 Section 3.05(4) of Rev. Proc. 88–
17 provides that the Service will not re-
scind a notice of deficiency if, prior to the
issuance of the notice of deficiency, the
taxpayer and the Service have executed a
Form 872–A, Special Consent to Extend
the Time to Assess Tax, covering any of
the tax years in the notice of deficiency.
This provision is modified to permit
rescission, provided the taxpayer and the
Service execute another Form 872–A
prior to rescission). See section 4.05(4)
of this revenue procedure.
.03 Section 4.03 of Rev. Proc. 88–17 is
clarified to provide that the Service may
initiate rescission of a notice of defi-
ciency). See section 5.03 of this revenue
procedure.
.04 In lieu of using a Form 8626,
Agreement to Rescind Notice of Defi-
ciency, the use of an alternative document
is authorized for rescission of a notice of
deficiency). See section 5.06 of this rev-
enue procedure.
SECTION 4. SCOPE AND OBJECTIVE
.01 This revenue procedure applies to
agreements to rescind a notice of defi-
ciency mailed to a taxpayer pursuant to §
6212(a). This procedure does not apply
to a Notice of Final Partnership Adminis-
trative Adjustment (FPAA) or to a Notice
Part III. Administrative, Procedural, and Miscellaneous
IRB 1998-43 10/21/98 4:34 PM Page 7

October 26, 199881998–43 I.R.B.
of Final S Corporation Administrative
Adjustment (FSAA).
.02 Whether a notice of deficiency will
be rescinded is discretionary on the part
of the Secretary. A notice of deficiency
may only be rescinded with the consent of
the taxpayer.
.03 If a notice of deficiency is re-
scinded, it is generally treated as if it
never existed. Limitations regarding
credits, refunds, and assessments relating
to the rescinded notice are void and the
rights and obligations of the parties that
existed prior to the issuance of the notice
of deficiency are reinstated. The re-
scinded notice does, however, suspend the
running of the period of limitations under
§ 6503 for the period during which the
notice is outstanding. The Commissioner
or the Commissioner’s delegate may issue
a later notice of deficiency in an amount
that exceeds, is the same as, or is less than
the amount in the rescinded notice of defi-
ciency. The taxpayer may exercise all ad-
ministrative and statutory appeal rights
from a reissued notice of deficiency, but
cannot petition the Tax Court from a re-
scinded notice of deficiency.
.04 Except as provided in section 4.05
of this revenue procedure, a notice of de-
ficiency may be rescinded for the follow-
ing reasons:
(1) The notice was issued as a result
of an administrative error: for example,
the notice was issued (a) to the wrong tax-
payer, (b) for the wrong tax period, or (c)
without considering a properly executed
Form 872, Consent to Extend the Time to
Assess Tax, or Form 872–A;
(2) The taxpayer submits informa-
tion establishing the actual tax due is less
than the amount shown in the notice; or
(3) The taxpayer specifically re-
quests a conference with the appropriate
Appeals office for the purpose of entering
into settlement negotiations. However,
the notice may be rescinded only if the
appropriate Appeals office first decides
that the case is susceptible to agreement.
.05 The Service will not rescind a no-
tice of deficiency under the following cir-
cumstances:
(1) On the date of the rescission, 90
days or less would remain before the ex-
piration date of the period of limitations
on assessment. However, a notice of defi-
ciency may be rescinded in these circum-
stances if, before the rescission, the tax-
payer and the Service execute a consent to
extend the period of limitations on Form
872 or Form 872–A;
(2) The 90-day or 150-day restriction
period under § 6213(a) has expired with-
out the taxpayer filing a petition with the
Tax Court;
(3) The taxpayer has filed a petition
with the Tax Court; or
(4) The taxpayer and the Service,
prior to the issuance of the notice of defi-
ciency, have executed a Form 872–A cov-
ering any of the tax years in the notice of
deficiency. A notice of deficiency may be
rescinded in this situation, however, if
prior to rescinding the notice of defi-
ciency the taxpayer and the Service exe-
cute a new Form 872–A covering the
same tax years as the earlier Form 872–A.
SECTION 5. PROCEDURE
.01 Taxpayers that wish to have a no-
tice of deficiency rescinded should con-
tact the person/office listed on the notice
and request Form 8626. Taxpayers that
wish an Appeals conference (see section
4.04(3) of this revenue procedure) should
contact the person/office listed on the no-
tice to find out how to contact the appro-
priate Appeals Office.
.02 A request to rescind a notice of de-
ficiency should be made by the taxpayer
as soon as possible after receipt of the no-
tice because a notice will not be rescinded
after the 90-day or 150-day restriction pe-
riod under § 6213(a) has expired.
.03 If the Service determines that a no-
tice of deficiency should be rescinded, the
Service will send Form 8626 to the tax-
payer requesting the taxpayer’s written
consent to rescind. If appropriate, Form
872 or Form 872–A will also be sent for
the taxpayer’s signature. If the taxpayer
agrees to the rescission of the notice of
deficiency, the signed Form 8626 (and
Form 872 or Form 872–A if appropriate)
must be returned to the office that sent the
Form 8626 as soon as possible, prior to
the expiration of the applicable 90-day or
150-day restriction period. After the
Form 8626 is returned by the taxpayer
and signed on behalf of the Commis-
sioner, a copy will be sent to the taxpayer
(and/or the taxpayer’s authorized repre-
sentative(s)). The effective date of the
rescission agreement is the date on which
the Commissioner’s delegate signs Form
8626.
.04 If the notice of deficiency was is-
sued to a husband and wife jointly, Form
8626 and, if appropriate, Form 872 or
Form 872-A, must be signed by both the
husband and wife, or their authorized rep-
resentative(s). If Form 8626 and/or Form
872 or Form 872–A is signed by a repre-
sentative, and a power of attorney has not
previously been filed, the power of attor-
ney must be included with Form 8626.
.05 Form 8626 must cover the same
tax period(s) as the notice of deficiency to
which it relates and must reflect the same
tax deficiency and penalties as the notice
of deficiency.
.06 Although use of Form 8626 is pre-
ferred, a document that reflects agreement
by the taxpayer and the Service to rescind
the notice of deficiency, pursuant to
§ 6212(d), may be used in lieu of Form
8626. Such a document will not be effec-
tive unless it contains the following:
(1) a statement that the taxpayer and
the Commissioner’s delegate agree to re-
scind the notice of deficiency;
(2) identification of the notice of de-
ficiency, including the date it was issued,
the type of tax, the tax period(s), and the
amount(s) of the deficiency or deficien-
cies and any penalties;
(3) representations that the period of
limitations on assessment has not expired
and that the taxpayers have not petitioned
the Tax Court;
(4) an agreement that the effect of
the rescission is to return the parties to the
rights and obligations existing immedi-
ately prior to the issuance of the rescinded
notice of deficiency, including the right of
the Service to issue a later notice of defi-
ciency, for any amount, and the right of
the taxpayer then to appeal to the Tax
Court; and
(5) the signatures (on the same docu-
ment) of both the Commissioner’s dele-
gate and the taxpayer (or the taxpayer’s
representative). If the document is signed
by the taxpayer’s representative, and a
power of attorney has not previously been
filed, the power of attorney must be in-
cluded with the document.
.07 A properly executed Form 8626 (or
a document as provided in section 5.06 of
this revenue procedure) is the only way
that a notice of deficiency may be re-
scinded.
IRB 1998-43 10/21/98 4:34 PM Page 8

1998–43 I.R.B.9October 26, 1998
.08 If the Service does not agree that
the notice of deficiency should be re-
scinded, the taxpayer will be so notified in
writing, and the notice of deficiency will
remain in effect. If the taxpayer wishes to
file a petition with the Tax Court, the tax-
payer must file the petition within the ap-
plicable 90-day or 150-day restriction pe-
riod,which may not be
extended.
SECTION 6. EFFECT ON OTHER
REVENUE PROCEDURES
Rev. Proc. 88–17, 1988–1 C.B. 692, is
clarified, modified, and superseded.
SECTION 7. EFFECTIVE DATE
This revenue procedure is effective
with respect to notices of deficiency is-
sued on or after January 1, 1986.
DRAFTING INFORMATION
The principal author of this revenue
procedure is Catherine A. Prohofsky of
the Office of Assistant Chief Counsel (In-
come Tax and Accounting). For further
information regarding this revenue proce-
dure, contact Andrew Irving on (202)
622-4930 (not a toll-free call).
IRB 1998-43 10/21/98 4:34 PM Page 9

October 26, 1998101998–43 I.R.B.
Information Reporting with
Respect to Certain Foreign
Partnerships
Announcement 98–93
The Internal Revenue Service an-
nounces that it is requesting comments
from the public on proposed new Form
8865 and its accompanying instructions.
The form is to be used to satisfy the re-
porting requirements with respect to cer-
tain foreign partnerships under sections
6038, 6038B, and 6046A. Attached to
this announcement is a copy of the pro-
posed form and instructions.
BACKGROUND
The Taxpayer Relief Act of 1997 (TRA
97), Pub. L. No. 105–34, 111 Stat. 983
(1997), significantly modified the infor-
mation reporting requirements with re-
spect to foreign partnerships under sec-
tions 6038, 6038B, and 6046A. On
September 9, 1998, the Service published
in the Federal Register proposed regula-
tions §§ 1.6038–3, 1.6038B–2, and
1.6046A–1. These regulations would im-
plement the new foreign partnership re-
porting regime put in place by TRA 97.
The proposed regulations provide that the
information required to be reported pur-
suant to sections 6038, 6038B, and 6046A
must be reported on Form 8865, Informa-
tion Return of U.S. Persons with Respect
to Certain Foreign Partnerships. Treasury
and the Service have requested comments
regarding the proposed regulations and
have scheduled a public hearing on the
proposed regulations for November 10,
1998. The hearing will be held in room
2615, Internal Revenue Building, 1111
Constitution Avenue, NW, Washington,
DC.
REQUEST FOR COMMENTS ON THE
FORM
Comments about proposed Form 8865
and its instructions may be made in writ-
ing and at the November 10, 1998 hear-
ing. Treasury and the Service are particu-
larly interested in receiving comments on
whether the form’s requirements are bur-
densome, and, if they are, how the burden
might be ameliorated while still protect-
ing the interests of the government and
carrying out the purposes of the statute.
Treasury and the Service also are inter-
ested in receiving comments on whether
any of the information required by the
form is duplicative of information re-
ported elsewhere and whether any of the
information required by the form is un-
necessary. Outlines of comments regard-
ing the proposed form that will be made at
the hearing must be received by Novem-
ber 6, 1998.
Written comments about the form and
instructions should be sent to: Chairman,
Tax Forms Coordinating Committee, In-
ternal Revenue Service, OP:FS:FP, Room
5577, 1111 Constitution Avenue, NW,
Washington, DC 20224. Alternatively,
you may e-mail your comments to tfp-
mail@publish.no.irs.gov.
Part IV. Items of General Interest
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1998–43 I.R.B.11October 26, 1998
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October 26, 1998121998–43 I.R.B.
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1998–43 I.R.B.13October 26, 1998
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October 26, 1998141998–43 I.R.B.
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1998–43 I.R.B.15October 26, 1998
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October 26, 1998161998–43 I.R.B.
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1998–43 I.R.B.17October 26, 1998
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October 26, 1998181998–43 I.R.B.
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1998–43 I.R.B.19October 26, 1998
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October 26, 1998201998–43 I.R.B.
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1998–43 I.R.B.21October 26, 1998
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October 26, 1998221998–43 I.R.B.
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1998–43 I.R.B.23October 26, 1998
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October 26, 1998241998–43 I.R.B.
IRB 1998-43 10/21/98 4:41 PM Page 24

1998–43 I.R.B.25October 26, 1998
IRB 1998-43 10/21/98 4:41 PM Page 25

October 26, 1998261998–43 I.R.B.
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1998–43 I.R.B.27October 26, 1998
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October 26, 1998281998–43 I.R.B.
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1998–43 I.R.B.29October 26, 1998
IRB 1998-43 10/21/98 4:43 PM Page 29

October 26, 1998301998–43 I.R.B.
IRB 1998-43 10/21/98 4:44 PM Page 30

1998–43 I.R.B.31October 26, 1998
IRB 1998-43 10/21/98 4:44 PM Page 31

Foundations Status of Certain
Organizations
Announcement 98–94
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 or-
ganizations have lost their status as orga-
nizations described in section 501(c)(3),
eligible to receive deductible contribu-
tions.
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 founda-
tions:
Asociacion de Salud Rural, Chicago, IL
Brookline Housing Corporation,
Brookline, MA
Chicago Law Foundation, The,
Chicago, IL
Dominican Family Institute, Inc., New
York, NY
Domov Corporation, The, Ganado, TX
Film Project for Womens History and
Future, The, Chicago, IL
Inner Strength Ministry, Jackson, MI
Kind Foundation Inc., Sterling, NJ
Pacific Asia Council of Indigenous
Peoples – Hawaii, Waianae, HI
Pathfinders for Positive Parenting and
Nurturing of the Black Family,
Birmingham, AL
Pro SE Today, Inc., Oshkosh, WI
Runestone Museum Foundation,
Alexandria, MN
Tuesday Morning Inc., Brookfield, IL
Utah Quilt Heritage Corporation, Draper,
UT
Victims Have Rights Too, Inc., Atlanta,
GA
West Shore Gymnastics Parents Assoc.,
Holland, MI
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 classifi-
cation 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.
October 26, 1998321998–43 I.R.B.
IRB 1998-43 10/21/98 4:44 PM Page 32

1998–43 I.R.B.33October 26, 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 1998-43 10/21/98 4:44 PM Page 33

October 26, 1998341998–43 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
Before the 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 1998-43 10/21/98 4:44 PM Page 34

1998–43 I.R.B.35October 26, 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 Before the 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 1998-43 10/21/98 4:44 PM Page 35

October 26, 1998361998–43 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 re-
state the substance and situation of a pre-
viously 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 1998-43 10/21/98 4:44 PM Page 36

1998–43 I.R.B.37October 26, 1998
Numerical Finding List
1
Bulletins 1998–29 through 42
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
98–87, 1998–40 I.R.B.11
98–88, 1998–41 I.R.B. 14
98–89, 1998–40 I.R.B.11
98–90, 1998–42 I.R.B.22
98–91, 1998–40 I.R.B.12
98–92, 1998–41 I.R.B.15
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–209769–95, 1998–41 I.R.B.8
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
Proposed Regulations—Continued
REG–119227–97, 1998–30 I.R.B. 13
REG–122488–97, 1998–42 I.R.B. 19
REG–101363–98, 1998–40 I.R.B.10
REG–106221–98, 1998–41 I.R.B.10
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
98–53, 1998–40 I.R.B.9
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
98–49, 1998–40 I.R.B.4
98–50, 1998–40 I.R.B.7
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
8781, 1998–40 I.R.B. 4
8782, 1998–41 I.R.B.5
8783, 1998–41 I.R.B.4
8784, 1998–42 I.R.B.4
8785, 1998–42 I.R.B.5
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.
IRB 1998-43 10/21/98 4:44 PM Page 37

October 26, 1998381998–43 I.R.B.
Finding List of Current Action on
Previously Published Items
1
Bulletins 1998–29 through 42
*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
98–14
Modified by
98–53, 1998–40 I.R.B. 9
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
Revenue Rulings—Continued
76–562
Obsoleted by
98–37, 1998–32 I.R.B. 5
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
Revenue Rulings—Continued
94–5
Obsoleted by
98–37, 1998–32 I.R.B. 5
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
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.
IRB 1998-43 10/21/98 4:44 PM Page 38

IRB 1998-43 10/21/98 4:45 PM Page 39

INTERNAL REVENUE BULLETIN
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IRB 1998-43 10/21/98 4:45 PM Page 40