Internal Revenue Bulletin 2000-35 (PDF rendition): IRS Revenue Procedures

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. 2000–40, page 208.
Fringe benefits, aircraft valuation formula.
For pur-
poses of section 1.61–21(g) of the Income Tax Regulations,
relating to the rule for valuing noncommercial flights on em-
ployer-provided aircraft, the Standard Industry Fare Level
(SIFL) cents-per-mile rates and terminal charges in effect for
the second half of 2000 are set forth.
EMPLOYEE PLANS
Announcement 2000–74, page 230.
This document contains corrections to final regulations (T.D.
8873, 2000–9 I.R.B. 713) relating to the transmission of cer-
tain notices and consents through electronic media.
EXEMPT ORGANIZATIONS
Announcement 2000–72, page 226.
This announcement requests comments on a proposed
revenue ruling regarding the notice and reporting require-
ments for political organizations described in section 527
of the Code.
ADMINISTRATIVE
Notice 2000–43, page 209.
LMSB Comprehensive Case Resolution Program.
This notice announces a pilot program under which large
business taxpayers may request accelerated and combined
resolution of all years they have open in Appeals, before the
Tax Court, and in Examination.
Rev. Proc. 2000–35, page 211.
This document provides the procedures to be followed to
obtain a withholding certificate under section 1445 of the
Code to reduce the tax withheld on the disposition of U.S.
real property interests by foreign persons. Rev. Proc. 88–23
superseded.
Announcement 2000–73, page 230.
This document contains corrections to final regulations
(T.D. 8884, 2000–24 I.R.B. 1250) relating to certain
credits of corporations that become members of a consol-
idated group.
Internal Revenue
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Bulletin No. 2000–35
August 28, 2000
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 ii.
Announcement of Disbarments and Suspensions begins on page 232.
Announcement of Declaratory Judgment Proceedings Under Section 7428 is on page 233.

August 28, 20002000–35 I.R.B.
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 are consolidated semiannually into
Cumulative Bulletins, which are sold on a single-copy basis.
It is the policy of the Service to publish in the Bulletin all 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.
This part includes notices of proposed rulemakings, disbar-
ment and suspension lists, and announcements.
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.
The IRS Mission
Provide America’s taxpayers top quality service by help-
ing them understand and meet their tax responsibilities
and by applying the tax law with integrity and fairness to
all.
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.

August 28, 20002082000–35 I.R.B.
Part I. Rulings and Decisions Under the Internal Revenue Code of 1986
Section 61.—Gross Income
Defined
26 CFR 1.61–21: Taxation of fringe benefits.
Fringe benefits, aircraft valuation for-
mula. For purposes of section 1.61–21(g)
of the Income Tax Regulations, relating to
the rules for valuing non-commercial
flights on employer-provided aircraft, the
Standard Industry Fare Level (SIFL)
cents-per-mile rates and terminal charges
in effect for the second half of 2000 are
set forth.
Rev. Rul. 2000–40
For purposes of the taxation of fringe
benefits under section 61 of the Internal
Revenue Code, section 1.61–21(g) of the
Income Tax Regulations provides a rule
for valuing noncommercial flights on em-
ployer-provided aircraft. Section
1.61–21(g)(5) provides an aircraft valua-
tion formula to determine the value of
such flights. The value of a flight is de-
termined under the base aircraft valuation
formula (also known as the Standard In-
dustry Fare Level formula or SIFL) by
multiplying the SIFL cents-per-mile rates
applicable for the period during which the
flight was taken by the appropriate air-
craft multiple provided in section
1.61–21(g)(7) and then adding the applic-
able terminal charge. The SIFL cents-per-
mile rates in the formula and the terminal
charge are calculated by the Department
of Transportation and are reviewed semi-
annually.
The following chart sets forth the ter-
minal charges and SIFL mileage rates:
Period During WhichTerminalSIFL Mileage
the Flight Is T
akenChargeRates
7/1/00 - 12/31/00$34.57Up to 500 miles
= $.1891 per mile
501-1500 miles
= $.1442 per mile
Over 1500 miles
= $.1386 per mile
DRAFTING INFORMATION
The principle author of this revenue
ruling is Kathleen Edmondson of the Of-
fice of Division Counsel/Associate Chief
Counsel (Tax Exempt and Government
Entities). For further information regard-
ing this revenue ruling, contact Ms. Ed-
mondson on (202) 622-6040 (not a toll-
free call).
Section 871.—Tax on
Nonresident Alien Individuals
26 CFR 1.871–8: Taxation of nonresident alien
individuals engaged in U.S. business or treated as
having effectively connected income.
What are the procedures to be followed to obtain
a withholding certificate under section 1445 for the
reduction of withholding tax under section 1445 on
the disposition of U.S. real property interests by for-
eign persons? See Rev. Proc. 2000–35, page 211.
Section 882.—Tax on Income of
Foreign Corporations Connected
With United States Business
26CFR 1.882–2: Income of foreign corporation
treated as effectively connected with U.S. business.
What are the procedures to be followed to obtain
a withholding certificate under section 1445 for the
reduction of withholding tax under section 1445 on
the disposition of U.S. real property interests by for-
eign persons? See Rev. Proc. 2000–35, page 211.
Section 897.—Disposition of
Investment in United States Real
Property
26 CFR 1.897–1: Taxation of foreign investment in
United States real property interests, definition of
terms.
What are the procedures to be followed to obtain
a withholding certificate under section 1445 for the
reduction of withholding tax under section 1445 on
the disposition of U.S. real property interests by for-
eign persons? See Rev. Proc. 2000–35, page 211.

Comprehensive Case Resolution
Pilot Program
Notice 2000–43
1. INTRODUCTION OF
COMPREHENSIVE CASE
RESOLUTION PILOT PROGRAM
This Notice announces a program under
which large business taxpayers may re-
quest resolution of all years they have
open under examination by the Large and
Mid-Size Business Division (LMSB), in
Appeals, and in docketed status before the
United States Tax Court (Tax Court),
through an Internal Revenue Service
(IRS) team process. The purpose of the
program is to enable taxpayers and the
IRS to work together to resolve all open
issues on all open years currently or pre-
viously under examination. The program
is intended to reduce costs, burden and
delays by expediting completion of these
cases through a cooperative effort.
The program is jointly administered by
LMSB, Appeals, and, if a taxpayer has a
docketed case for any year, the Office of
Chief Counsel (Chief Counsel). In the
pilot phase, the program is available to
large businesses that currently have at
least one open year under examination in a
Coordinated Examination and at least one
prior year in Appeals (including docketed
cases currently under Appeals’ jurisdic-
tion). Taxpayers interested in participat-
ing in the pilot program or with questions
about the program should contact their
Team Manager or the Comprehensive
Case Resolution Pilot Coordinator to dis-
cuss their suitability for the program.
During the pilot phase of the program,
LMSB, Appeals and, if there is a docketed
case, Chief Counsel, plan to select eight
to ten taxpayers from among those re-
questing participation in the program.
Applications will be solicited through
September 29, 2000, and the IRS will se-
lect participants by October 31, 2000.
Taxpayers participating in the pilot pro-
gram will be asked to assist in monitoring
and evaluating the process. After evaluat-
ing the pilot cases, the IRS may then offer
the program, with or without modifica-
tion, on a permanent basis.
The IRS believes that the Comprehensive
Case Resolution program offers signifi-
cant potential benefits for taxpayers as
well as the IRS, and invites large business
taxpayers to participate.
2. DESCRIPTION OF THE
COMPREHENSIVE CASE
RESOLUTION PROGRAM
The goal of the program is to help taxpay-
ers that have tax years under examination
by LMSB and in Appeals (including
docketed cases under Appeals jurisdic-
tion) resolve all open issues in all such
years through an IRS Comprehensive
Case Resolution (CCR) process. In some
situations it may also be appropriate to in-
clude tax years which are docketed before
the Tax Court and not under Appeals’ ju-
risdiction. The effect of this program will
be to expedite the taxpayer’s LMSB
years, where the audit is substantially
complete, into a resolution process. This
process will be the taxpayer’s formal ad-
ministrative appeal for the LMSB years.
The program’s goal is to resolve all tax
controversies, without litigation, on a
basis that is fair and impartial to both the
government and the taxpayer. The CCR
process will plan aggressive timelines for
completion, with a target of closing all
years within six to twelve months. If
agreement cannot be reached using this
process, Appeals will not again consider
the unagreed issues from the years under
examination by LMSB.
Taxpayers with an LMSB Coordinated
Examination that is substantially com-
plete may request to participate in this
program. “Substantially complete”
means: (1) audit work on all significant
issues is complete and the taxpayer has
indicated agreement or disagreement with
each proposed adjustment; and (2) all
claims and affirmative issues have been
raised by the taxpayer and audited. Inter-
ested taxpayers with questions as to
whether audit work is sufficiently com-
plete should consult with their Team
Manager.
Each affected IRS function (LMSB, Ap-
peals, and Chief Counsel) will indepen-
dently recommend whether the taxpayer
should be accepted into the program.
When a taxpayer is accepted for the pilot
program, the IRS will form a team repre-
senting LMSB, Appeals, and, if appro-
priate, Chief Counsel to work with the
taxpayer to resolve outstanding unagreed
issues.
For taxpayers accepted into the CCR pilot
program, the IRS will not issue a notice of
proposed deficiency, commonly called a
“30-day letter,” for the years currently
under examination by LMSB upon com-
mencement of the program. Accordingly,
for those years, the accrual of increased
interest on large corporate underpayments
under § 6621(c) of the Internal Revenue
Code will not begin at that time. How-
ever, if those years are not resolved within
12 months after the initial issue discus-
sion conference is held under the CCR
program, the IRS will issue a letter of pro-
posed deficiency to begin the accrual of
interest at the increased rate.
Taxpayers not accepted for the pilot pro-
gram will continue to follow existing
LMSB, Appeals, and, where relevant, Tax
Court, procedures for resolution of their
cases.
3. SUBJECT MATTER FOR THE
COMPREHENSIVE CASE
RESOLUTION PROGRAM
The CCR program is intended to expedite
resolution of all disputed issues on all
open tax years that have been or are being
examined. Generally, all issues that could
appropriately be considered by Appeals
will be suitable for the program. To en-
sure fair treatment of the taxpayer, issues
already agreed between the taxpayer and
IRS in LMSB or Appeals generally will
not be re-opened.
Certain issues may not be appropriate for
this process. The IRS and the taxpayer
may agree to exclude these issues but pro-
ceed with the program on the remaining
issues. If the Office of Chief Counsel de-
termines that it would be inappropriate to
include some or all docketed years in the
process, the IRS may proceed under the
program with the remaining years with
the taxpayer’s concurrence. Further, the
IRS may determine that certain issues will
not be part of the process. Specific issues
excluded from the program include:
(1) Issues that (for the taxpayer) in-
volve a partnership item as defined
in § 6231 of the Internal Revenue
Code, or are subject to the proce-
dures set forth in § 6221 through
§ 6233; and
2000–35 I.R.B.209August 28, 2000
Part III. Administrative, Procedural, and Miscellaneous

(2) Issues that have been designated for
litigation by Chief Counsel.
This list is not all-inclusive as situations
may arise where other issues are deter-
mined inappropriate for the process.
4. PROCEDURES FOR
REQUESTING COMPREHENSIVE
CASE RESOLUTION PROCESS
Before initiating a formal request.Tax-
payers interested in participating in the
pilot program, or with questions about the
program and its suitability for their cases,
may contact the LMSB Team Manager
for the year currently under examination.
Taxpayers also may contact Cary Russ,
the CCR Coordinator, at (202) 283-8330
(not a toll-free number), for further infor-
mation about this pilot program.
Initiating the request for the CCR pilot.
The taxpayer must submit its request to
participate in the CCR pilot program in
writing to the Team Manager on or before
September 29, 2000. The CCR Coordina-
tor and the Team Manager are available to
assist the taxpayer in preparing its pilot
request.
Contents of the request. A concise writ-
ten statement requesting the CCR process
should include:
(1) The taxpayer’s name, EIN, and ad-
dress and the name, title, address and
telephone number of a person to con-
tact.
(2) The tax years for which Comprehen-
sive Case Resolution is sought, the
IRS office considering each year, and
the name of the IRS Appeals Officer
and counsel of record handling any
matter not under the jurisdiction of
LMSB.
(3) For the years currently under LMSB
examination, a list of all unagreed
issue(s). The taxpayer should include
copies of unagreed Forms 5701, No-
tice of Proposed Adjustment, or a
short description of the unagreed is-
sues if no Form 5701 has been issued.
Although a formal protest is not re-
quired, the request must contain a
brief explanation of the taxpayer’s
position regarding each issue. (If ac-
cepted into the program, a taxpayer
will have an opportunity to present a
more complete statement of its posi-
tion at a later stage.)
(4) For the years in Appeals, the current
status of each issue, including
whether agreement (oral or written)
has been reached.
(5) If docketed year(s) under Chief
Counsel’s jurisdiction are included,
the current status of all unresolved
issues, including whether agreement
(oral or written) has been reached,
the date calendared for trial, if any,
and any other deadlines established
by the Court.
(6) An acknowledgment that the tax-
payer consents to ex partecommuni-
cations between IRS Appeals Offi-
cers and any other IRS personnel in
the context of the CCR process.
(7) An acknowledgment that participa-
tion in the CCR process constitutes
the administrative appeal for all
years under LMSB examination in-
cluded in this application.
(8) A statement that the taxpayer will not
file new claims or raise new affirma-
tive issues for any year, regardless of
jurisdiction, during the CCR process.
Claims and affirmative issues must
be raised and audit work completed
before the CCR process begins.
(9) An acknowledgment that this is an
expedited program in which the tax-
payer will work with the IRS CCR
team to establish accelerated time-
lines for completion of the process.
(10) A statement of the taxpayer’s will-
ingness to participate in a pilot pro-
gram and to assist in monitoring
and evaluating the process.
Perjury statement. A request for the
CCR process must include a declaration,
signed by a person currently authorized to
sign the taxpayer’s federal income tax re-
turn, in the following form:
Under penalties of perjury, I declare
that I have examined this request, in-
cluding accompanying documents, and,
to the best of my knowledge and belief,
the facts presented in support of the re-
quest for Comprehensive Case Resolu-
tion are true, correct and complete.
If the request is signed by an authorized
representative, a copy of Form 2848,
Power of Attorney and Declaration of
Representative, must accompany the re-
quest.
5. SELECTION OF TAXPAYERS
FOR THE PILOT PROGRAM
Team Manager’s Role: The Team Man-
ager will immediately forward a copy of
the taxpayer’s application to the CCR Co-
ordinator, Appeals and, if appropriate,
Chief Counsel. The Team Manager will
assess the readiness of the LMSB years
for the CCR process. This assessment will
include whether the years are, or will be,
substantially complete by October 31,
2000.
Appeals Management Role: Appeals
management will assess the status of each
issue and the anticipated completion
date(s) of the years before Appeals (in-
cluding docketed years in Appeals settle-
ment jurisdiction).
Chief Counsel’s Role:If years are dock-
eted before the Tax Court, Chief Counsel
will provide an assessment similar to Ap-
peals of the status of those years. Chief
Counsel may direct the CCR Pilot Coor-
dinator not to include a docketed year or
years in the CCR process.
CCR Pilot Coordinator Role: The CCR
Pilot Coordinator will provide guidance
to taxpayers and to IRS personnel on the
program, will ensure that LMSB, Appeals
and Chief Counsel timely provide infor-
mation listed above, and will keep the
CCR Pilot Executive informed of all pro-
gram activity.
CCR Pilot Executive Role:The CCR
Pilot Executive will provide general over-
sight for the program, interface with Ap-
peals and Chief Counsel, lead in the train-
ing effort, and meet with taxpayers as
appropriate. The CCR Pilot Executive
will convene an evaluation team to in-
clude LMSB, Appeals and, if appropriate,
Chief Counsel. The team will be respon-
sible for determining whether the appli-
cant meets the selection criteria.
Selection Criteria:In general, the team
will evaluate the request using criteria
that include the following:
General criteria:
(1) Application by September 29,
2000;
(2) Taxpayer under Coordinated Ex-
amination by LMSB and also in
Appeals;
(3) LMSB examination years are sub-
stantially complete; and
(4) The Appeals years will not be set-
tled before the first issue resolu-
tion conference is held.
Additional Pilot criteria:
(1) Having a cross-section of taxpay-
ers of varying sizes, representing
different industry lines, a geo-
August 28, 20002102000–35 I.R.B.

2000–35 I.R.B.211August 28, 2000
graphical dispersion of cases, and
a variety of issues;
(2) IRS resource availability in
LMSB, Appeals and Chief Coun-
sel;
(3) The likelihood of the case being
resolved through this process;
and
(4) In the case of a docketed year, the
ability to comply with the Tax
Court’s procedures and deadlines.
Communication with taxpayer.The
CCR Pilot Executive will advise taxpay-
ers in writing on or about October 31,
2000, whether they will be included in the
pilot program. A taxpayer may not appeal
the decision that it not be included in the
pilot program.
6. CONDUCTING THE
COMPREHENSIVE CASE
RESOLUTION PROCESS
Initial 60 days. Once a case is accepted
into the pilot program, the IRS will form a
resolution team composed of members
from LMSB and Appeals (and Chief
Counsel, if there is a docketed case).
Within the first 30 days, the CCR team
will contact the taxpayer to schedule an
initial planning meeting. At the planning
meeting, the parties will confirm the is-
sues to be resolved, identify who will be
involved in the process and their respec-
tive authorities, answer any questions
about the process, and establish a timeline
for resolution of all issues. Additionally,
the team and the taxpayer will schedule
the first issue resolution conference no
later that 60 days after the case is ac-
cepted into the pilot.
Resolution process. Comprehensive
Case Resolution constitutes the tax-
payer’s formal exercise of its appeal
rights for the years under examination by
LMSB. Therefore, conferences between
the taxpayer and the IRS CCR team will
follow existing Appeals procedures. If
the IRS and taxpayer reach agreement,
years will be closed using Appeals
processes and closing documents. If the
parties are unable to reach agreement on
any issue(s), Appeals will issue a statu-
tory notice of deficiency on the unagreed
issue(s). Should any case be subject to re-
view by U. S. Competent Authority or the
Joint Committee on Taxation, the case
will be closed after those approvals are
obtained.
7. WITHDRAWAL FROM THE
COMPREHENSIVE CASE
RESOLUTION PROCESS
Taxpayers may withdraw from the CCR
pilot by submitting a written request, but
only within 30 days after acceptance into
the program or 20 days after the initial
planning meeting, whichever is later.
Thereafter, with respect to the years under
LMSB jurisdiction at the time of applica-
tion for CCR, the process will be com-
pleted with a total or partial agreement or
issuance of a statutory notice of defi-
ciency.
A taxpayer’s withdrawal from the CCR
pilot returns each open year to the juris-
diction of the IRS function it was under
prior acceptance into the program. Tax-
payers will be afforded administrative ap-
peal on the years under LMSB jurisdic-
tion as if the taxpayer had not applied for
CCR.
8. MISCELLANEOUS
Record keeping requirements. No as-
pect of the CCR process will affect the
record keeping requirements imposed by
any section of the Internal Revenue Code.
No user fee.There is no user fee for par-
ticipating in the CCR program.
9. COMMENTS
The IRS invites interested persons to
comment on this program. Send submis-
sions to:
Internal Revenue Service
Att’n Cary Russ
Large and Mid-Size Business Division
LM:PFTG
Mint Building, 3rd Floor, M-3-312
1111 Constitution Avenue, NW
Washington, DC 20224
Submissions also may be hand delivered
Monday through Friday between the
hours of 8 a.m. and 5 p.m. to the Courier’s
Desk, Internal Revenue Service, 1111
Constitution Avenue, NW, Washington,
DC. Such submissions should be marked:
Att’n Cary Russ, Large and Mid-Size
Business Division LM:PFTG, Mint
Building, 3rd Floor, M-3-312.
Alternatively, interested persons may sub-
mit comments via e-mail to:
PFTG1@irs.gov
These addresses are for comments on the
pilot program. Requests by eligible tax-
payers to participate in the pilot program
should be submitted as describe in section
4 above.
10. FURTHER INFORMATION
For further information regarding this No-
tice, contact Cary Russ, the CCR Pilot
Coordinator, at (202) 283-8330 (not a
toll-free number), or the Team Manager
for your current examination.
26 CFR 601.602: Tax forms and instructions.
Rev. Proc. 2000-35
SECTION 1. PURPOSE
This revenue procedure supersedes
Rev. Proc. 88-23, 1988-1 C.B. 787, which
provided the procedures to be followed to
obtain a withholding certificate under sec-
tions 1.1445-3 and 1.1445-6 of the In-
come Tax Regulations.
SEC. 2. BACKGROUND
The Tax Reform Act of 1984, section
129, 1984-3 (Vol. 1) C.B. 163, added sec-
tion 1445 to the Internal Revenue Code as
a means of enforcing the tax imposed pur-
suant to section 897 on dispositions by
foreign persons of investments in U.S.
real property. Section 1445(a) provides
that a transferee of a U.S. real property in-
terest from a foreign person must deduct
and withhold a tax equal to 10 percent of
the amount realized by the foreign person
on the disposition.
Section 1445(b) and the regulations
thereunder provide several exceptions to
this requirement, including an exemption
from withholding for persons who pur-
chase property for use as a residence for
$300,000 or less. Other exemptions in-
clude cases where the transferor furnishes
an affidavit of nonforeign status, where
the property transferred is stock that is
regularly traded on an established securi-
ties market, where the transferor is not re-
quired to recognize any gain or loss with
respect to the transfer and the require-
ments of section 1.1445-2(d)(2) are met,
and where a statement is obtained from
the Internal Revenue Service that excuses
withholding. Similarly, section 1445(c)
provides that the amount required to be
withheld can be reduced pursuant to a de-
termination by the Service of the trans-
feror’s maximum tax liability upon the

disposition. Sections 1.1445-3 and
1.1445-6 of the regulations provide rules
concerning the issuance by the Service of
a withholding certificate that reduces or
eliminates withholding.
Rev. Proc. 88-23 provided additional
guidance concerning applications for
withholding certificates. This revenue
procedure supersedes Rev. Proc. 88-23,
and provides additional guidance by way
of modifications and clarifications to the
provisions of former Rev. Proc. 88-23
concerning applications for withholding
certificates.
SEC. 3. WITHHOLDING
CERTIFICATES—IN GENERAL
.01 Purpose of Withholding Certificate.
Withholding under section 1445 of the
Code may be reduced or eliminated pur-
suant to a withholding certificate issued
by the Service in accordance with the
rules set forth in this revenue procedure.
A withholding certificate may be issued
by the Service in cases where reduced
withholding is appropriate, where the
transferor is exempt from U.S. tax, or
where an agreement for the payment of
tax is entered into with the Service. A
withholding certificate that is obtained
prior to a transfer notifies the transferee
that no withholding is required or that re-
duced withholding is required. A with-
holding certificate that is obtained after a
transfer has been made may authorize a
normal refund or an early refund. See
section 1.1445-3(g) of the regulations. A
withholding certificate issued pursuant to
the provisions of this revenue procedure
serves to fulfill the requirements, as ap-
plicable, of section 1445(b)(4) concerning
qualifying statements, section 1445(c)(1)
concerning the transferor’s maximum tax
liability, or section 1445(c)(2) concerning
the Secretary’s authority to prescribe re-
duced withholding.
.02 Limited Effect of a Withholding
Certificate. A withholding certificate
serves only to adjust withholding obliga-
tions to correspond as closely as possible
to the probable tax liability arising out of
a transfer. Therefore, all determinations
that are made by the Service in connec-
tion with the issuance of a withholding
certificate apply solely for the limited
purpose of determining withholding
obligations under section 1445 of the
Code, and do not necessarily represent the
Service’s final view with respect to any
substantive issue that may arise in con-
nection with a transfer. Similarly, the Ser-
vice’s acceptance in connection with the
issuance of a withholding certificate of
any evidence provided or any representa-
tion made by a taxpayer is made only for
that purpose, is not binding for any other
purpose, and does not constitute a final
determination of the truth or accuracy of
any such evidence or representation.
.03 Types of Withholding Certificates
Available. Pursuant to section 1.1445-3
of the regulations, a withholding certifi-
cate may be issued on the basis of any of
the following:
1. A determination by the Service
that reduced withholding is appropriate
because either:
(a) The amount otherwise required
to be withheld would exceed
the transferor’s maximum tax
liability; or
(b) Withholding of a reduced
amount would not jeopardize
collection of the tax.
2. The exemption from U.S. tax of
all gain realized by the transferor; or
3. An agreement entered into by the
transferee or transferor for the payment of
tax providing security for the tax liability.
SEC. 4. APPLICATIONS FOR
WITHHOLDING CERTIFICATES
.01 General rules. An application for a
withholding certificate must be submitted
to the Internal Revenue Service Center,
P.O. Box 21086, Drop Point 8731
FIRPTA Unit, Philadelphia, PA 19114-
0586. Either a transferee or a transferor
may apply for a withholding certificate,
but only a transferor may apply for a blan-
ket withholding certificate. The Service
ordinarily will act upon an application not
later than the 90th day after all informa-
tion necessary for the Service to make a
determination is received. However, in
the case of an application for a certificate
described in section 4.03(6) below, or in
unusually complicated cases, the Service
may be unable to provide a withholding
certificate by the 90th day. In such a case,
the Service will notify the applicant by
the 45th day after all information neces-
sary for the Service to make a determina-
tion is received that additional processing
time will be necessary. The Service’s no-
tice may request additional information or
explanation concerning particular aspects
of the application and will provide a tar-
get date for final action (contingent upon
the applicant’s timely submission of any
requested information).
If an application for a withholding cer-
tificate is submitted before or on the date
of a transfer and on the date of the transfer
the application remains pending with the
Service, the amount required to be with-
held by the transferee is not required to be
reported and paid over immediately. Simi-
larly, if an application for a blanket with-
holding certificate is submitted before or
on the date of the first transfer covered by
the application, and on the date of the first
transfer the application remains pending
with the Service, the amount required to be
withheld by the transferee is not required
to be reported and paid over immediately.
Instead, that amount (or such other amount
as is appropriate) must be reported and
paid over by the 20th day following the
day upon which a copy of the withholding
certificate or notice of denial is mailed by
the Service. If the application is not sub-
mitted before or on the date of the transfer,
or in the case of a blanket withholding cer-
tificate application, before or on the date of
the first transfer, the transferee must report
and pay over any tax withheld by the 20th
day after the date of the transfer. Treas.
Reg. § 1.1445-1(c)(1).
.02 Required signatures. An applica-
tion for a withholding certificate must be
signed by a responsible officer in the case
of a corporation, by a general partner in
the case of a partnership, by a trustee, ex-
ecutor, or equivalent fiduciary in the case
of a trust or estate, and, in the case of an
individual, by that individual. In addi-
tion, an application may be signed by an
agent authorized to do so by a power of
attorney. Form 2848 may be used for this
purpose. The person signing the applica-
tion must verify under penalties of perjury
that all representations made in connec-
tion with the application are true, correct,
and complete to the best of that person’s
knowledge and belief. To the extent that
an application is premised in whole or in
part on information provided by another
party to the transaction, this information
is to be supported by a written verification
attached to that application signed under
penalties of perjury by the party to whom
it pertains. The application must follow
the format set forth in section 4.04 below.
August 28, 20002122000–35 I.R.B.

.03 Categorizing of applications. To
facilitate the processing of applications
for withholding certificates, this revenue
procedure divides all applications into six
basic categories as follows:
1. Applications for withholding cer-
tificates based on a claim that the trans-
feror is entitled to nonrecognition treat-
ment or is exempt from tax;
2. Applications for withholding cer-
tificates based solely on a calculation of
the transferor’s maximum tax liability;
3. Applications for withholding cer-
tificates under the special installment
sales rules of section 7 of this revenue
procedure;
4. Applications for withholding cer-
tificates based on an agreement for the
payment of tax with conforming security;
5. Applications for blanket withhold-
ing certificates under section 9 of this rev-
enue procedure; and
6. Applications for withholding cer-
tificates on any other basis.
.04 Format for application. All appli-
cations for withholding certificates must
provide the following information in
paragraphs labeled to correspond with the
numbers and letters set forth below. Place
“N/A” in the relevant space if the infor-
mation requested is not applicable to the
application being submitted.
1. (a) State which category of sec-
tion 4.03, above, describes the
application;
(b) In the case of category 4 appli-
cations (agreement for the
payment of tax with conform-
ing security):
(1) State whether the proposed
agreement secures (A) the
transferor’s maximum tax
liability, or (B) the amount
that would otherwise be
required to be withheld; and
(2) State whether the proposed
agreement and security
instrument conform to the
standard formats set forth in
this revenue procedure.
2. (a) Provide the name, taxpayer
identification number (to the
extent required in regulations),
and home address (for an indi-
vidual) or office address (for
an entity) of the person apply-
ing for the withholding certifi-
cate. A mailing address should
also be included if different.
(b) State whether the applicant is
the transferee or transferor.
(c) Provide the name, address, and
taxpayer identification number
(to the extent required in regula-
tions) of all other transferees
and transferors (specifying
whether such party is a trans-
feree or transferor) of the U.S.
real property interest with re-
spect to which the withholding
certificate is sought. The appli-
cant must determine if a tax-
payer identification number ex-
ists for each party concerned
and if none exists for a particu-
lar party the application must so
state. Any application that is
combined with the transferor’s
request for an early refund must
include the transferor’s taxpayer
identification number.
3. Provide the following information
concerning the U.S. real property interest
with respect to which the withholding cer-
tificate is sought:
(a) Type of interest (that is, inter-
est in real property, in associ-
ated personal property, or in a
domestic U.S. real property
holding corporation);
(b) The contract price;
(c) Date of transfer;
(d) In the case of an interest in real
property, its location and a
general description of the
property (for example, “10-
story, 100 unit luxury apart-
ment building”); and
(e) In the case of an interest in a
U.S. real property holding cor-
poration, the class or type and
amount of the interest.
(f) Whether in the three preceding
taxable years: (1) U.S. income
tax returns were filed relating to
the U.S. real property interest,
and if so, when and where those
returns were filed, and if not,
why returns were not filed; and
(2) whether U.S. income taxes
were paid relating to the U.S.
real property interest, and if so,
the amount of the tax paid.
4. Provide full information concern-
ing the basis for the issuance of the with-
holding certificate, in accordance with the
rules of sections 4.05 through 4.11 below.
Although the information to be included
in this section of the application will nec-
essarily vary from case to case, the rules
set forth below provide general guidelines
for the inclusion of appropriate informa-
tion with respect to each category of ap-
plication.
5. The use of Form 8288-B to apply
for a withholding certificate under cate-
gories 1 through 3 will expedite the appli-
cation process. An application that is not
substantially complete when submitted
will be rejected. For example, an applica-
tion without a specific or estimated date
of transfer will not be considered to be
substantially complete.
.05 Information concerning category 1
applications (nonrecognition or exempt
transfer). If a withholding certificate is
sought on the basis of a claim that the
transaction is entitled to nonrecognition
treatment or is exempt from U.S. taxation,
provide the following:
1. A brief description of the transfer;
2. A brief summary of the law and
facts supporting the claim of nonrecogni-
tion or exemption;
3. Evidence that the transferor has no
unsatisfied withholding liability, as de-
scribed in section 4.06(3); and
4. The contract price (if any), or if no
contract price is available, the most recent
assessed value, for state or local property
tax purposes, of the U.S. real property in-
terest to be transferred, or, if such as-
sessed value is not available, then the
good faith estimate of its fair market
value (no supporting evidence concerning
the value of the property need be sup-
plied).
.06 Information concerning category 2
applications (determination of maximum
tax liability).
1. In general. If a withholding cer-
tificate is sought on the basis of a determi-
nation of the transferor’s maximum tax li-
ability, information must be provided to
establish the two elements of that liabil-
ity: (a) the maximum tax that may be im-
posed on the disposition, and (b) the
transferor’s unsatisfied withholding lia-
bility. Paragraphs 4.06(2) and .06(3),
below, provide guidelines for the furnish-
ing of such information. For further in-
formation concerning the determination
of the transferor’s maximum tax liability,
see section 1.1445-3(c) of the regulations.
2000–35 I.R.B.213August 28, 2000

2. Maximum tax on disposition. (a)
The applicant must provide a calculation
of the maximum tax that may be imposed
on the disposition, including the follow-
ing information:
(1) The amount to be realized by
the transferor plus evidence
confirming this amount, such
as a copy of the signed con-
tract relating to the transfer;
(2) Adjusted basis of the prop-
erty plus evidence confirm-
ing the basis claimed, such
as schedules of depreciation
for tax purposes (if no
depreciation schedules are
provided, the application
must state the nature of the
use of the property and why
depreciation was not
allowed);
(3) Amounts to be recaptured
with respect to depreciation,
investment tax credit, or
other items subject to recap-
ture;
(4) Maximum capital gain
and/or ordinary income tax
rates applicable to the trans-
fer;
(5) Tentative tax owed;
(6) Amount of any increase or
reduction of tax to which the
transferor is subject, includ-
ing any reduction to which
the transferor is entitled
under a provision of a U.S.
income tax treaty as well as
evidence supporting the
adjustment claimed. See
section 1.1445-3(c)(2) of
the regulations.
(b) For purposes of calculating the
maximum tax that may be imposed upon
a disposition, unused credit carryovers
shall not be taken into account, and net
operating loss carry-overs (NOLs) (see
section 172 of the Code) may be taken
into account only if:
(1) The transferor claiming the
NOL has been engaged in a
trade or business in the U.S.
during the three preceding
tax years and has timely
filed an income tax return
for each of those years
(copies of which should be
attached);
(2) The claimed NOL has been
reflected on previously-filed
returns (no anticipated loss
with respect to current year
operations may be consid-
ered);
(3) The claimed NOL is not cur-
rently the subject of an
examination by or a dispute
with the Service;
(4) The transferor agrees that, if
the amount of gain that the
transferor claimed would be
offset by the NOL exceeds
the amount of the gain actu-
ally recognized and offset
by the claimed NOL when
the transferor files its tax
return for the current tax
year, the transferor will pay
interest upon the excess of
the amount that should have
been subject to withholding
over the amount, if any,
actually withheld, which
interest will be computed:
(A) At the rates and in the
manner prescribed by
sections 6621 and
6622 of the Code; and
(B) With respect to the pe-
riod between the date
on which withholding
would otherwise have
been required and the
date on which pay-
ment is made (for pur-
poses of determining
whether gain recog-
nized on the disposi-
tion was in fact offset
by the claimed NOL,
the NOL is deemed
first to offset income
from sources other
than the disposition of
U.S. real property in-
terests, and then to
offset gain from such
dispositions with re-
spect to which a with-
holding certificate
was issued in the
order to which such
dispositions oc-
curred);
(5) The claimed NOL has not
previously been used to
reduce withholding upon
other dispositions of U.S.
real property interests or to
reduce the amount of any
other obligation or liability
under U.S. internal revenue
laws; and
(6) As part of the application,
the transferor represents
that:
(A) At least 80 percent of
its gross income sub-
ject to U.S. taxation in
the taxable year of
disposition will be de-
rived from U.S. real
property interests; and
(B) In calculating the
maximum tax that
may be imposed on
the disposition, the
application calculates
the NOL in the man-
ner prescribed by the
provisions of this sec-
tion 4.06(2)(b), and
the NOL is taken into
account only to the
extent permitted by
such provisions.
3. Transferor’s unsatisfied withhold-
ing liability. The applicant must provide a
calculation of the transferor’s unsatisfied
withholding liability or evidence that it
does not exist. That liability is the amount
of any tax that the transferor was required
to but did not withhold and pay over under
section 1445 of the Code upon the acquisi-
tion of the subject U.S. real property inter-
est or a predecessor interest. The trans-
feror’s unsatisfied withholding liability is
included in the calculation of maximum
tax liability so that such prior withholding
liability may be satisfied by the trans-
feree’s withholding upon the current trans-
fer. For purposes of this paragraph 3, a
predecessor interest is one that was ex-
changed for the subject U.S. real property
interest in a transaction in which the trans-
feror was not required to recognize the full
amount of the gain or loss realized upon
the transfer. For further information, see
section 1.1445-3(c)(3) of the regulations.
Evidence that the transferor has no unsat-
isfied withholding liability includes any
one of the following items:
(a) Evidence that the transferor ac-
quired the subject or predecessor
August 28, 20002142000–35 I.R.B.

U.S. real property interest before
January 1, 1985;
(b) Acopy of the Form 8288 that
was filed by the transferor, and
proof of payment of the amount
shown due thereon, with respect
to the transferor’s acquisition of
the subject or predecessor U.S.
real property interest;
(c) A copy of a withholding certifi-
cate issued with respect to the
transferor’s acquisition of the
subject or predecessor U.S. real
property interest, plus a copy of
Form 8288 and proof of payment
with respect to any withholding
required under that certificate;
(d) A copy of the nonforeign certifi-
cate (see Treas. Reg. §1.1445-
2(b)(2))furnished by the person
from whom the subject U.S. real
property interest was acquired,
executed at the time of that ac-
quisition;
(e) Evidence that the transferor pur-
chased the subject or predecessor
U.S. real property interest for
$300,000 or less and a statement,
signed by the transferor under
penalties of perjury, that the trans-
feror purchased the property for
use as a residence within the mean-
ing of section 1.1445-2(d)(1);
(f) Evidence that the person from
whom the transferor acquired the
subject or predecessor U.S. real
property interest fully paid any
tax imposed on that transaction
pursuant to section 897;
(g) A copy of a notice of nonrecogni-
tion treatment provided to the
transferor pursuant to section
1.1445-2(d)(2) by the person
from whom the transferor ac-
quired the subject or predecessor
U.S. real property interest; and
(h) A statement, signed by the trans-
feror under penalties of perjury,
setting forth the facts and cir-
cumstances that support the
transferor’s conclusion that no
withholding was required under
section 1445(a) with respect to
the transferor’s acquisition of the
subject or predecessor U.S. real
property interest.
.07 Information concerning category 3
applications (installment sales). See sec-
tion 7 of this revenue procedure.
.08 Information concerning category 4
applications (agreement for the payment
of tax with conforming security). If a
withholding certificate is sought on the
basis of an agreement for the payment of
tax, the application must include:
1. Information establishing:
(a) The transferor’s maximum tax
liability, in accordance with
section 4.06; or
(b) The amount otherwise re-
quired to be withheld pursuant
to section 1445(a) of the Code;
2. A signed copy of the agreement
proposed by the applicant; and
3. A copy of the security instrument
proposed by the applicant. For further in-
formation concerning agreements for the
payment of tax and security instruments,
see sections 5 and 6 of this revenue proce-
dure and section 1.1445-3 of the regula-
tions.
.09 Information concerning category 5
applications (blanket withholding certifi-
cate). See section 9 of this revenue pro-
cedure.
.10 Information concerning Category 6
applications (non-standard applications).
1. Agreement for payment of tax with
nonconforming security. If the applicant
seeks to enter into an agreement for the
payment of tax, but wishes to provide a
nonconforming type of security, the appli-
cation must include:
(a) The information required by
section 4.08 concerning cate-
gory 4 applications;
(b) Adescription of the noncon-
forming security proposed by
the applicant; and
(c) Amemorandum of law and
facts establishing that the pro-
posed security is valid and en-
forceable and that it adequately
protects the government’s in-
terest.
2. Other non-standard applications.
An application for a withholding certifi-
cate not otherwise described in this rev-
enue procedure must explain in detail the
proposed basis for the issuance of the cer-
tificate and set forth the reasons justifying
the issuance of a certificate on that basis.
.11 Information submitted by foreign
governments. In addition to the informa-
tion required in Sec. 4.04 and Sec. 4.05, a
foreign government submitting an appli-
cation on the basis that the subject U.S.
real property is used by the foreign gov-
ernment for a diplomatic mission should
submit the following information:
1. Information identifying the diplo-
matic property;
2. Information establishing that the
property is used by the foreign govern-
ment for a diplomatic mission; and
3. Information describing whether
the property has been recognized by the
State Department as being diplomatic
property subject to the Foreign Missions
Act, § 202, 22 U.S.C. § 4305 (1982).
.12 Availability of records. The appli-
cant shall make available to the Commis-
sioner, within the time prescribed by the
Commissioner, all information that may
be required by the Commissioner in order
to verify that representations relied upon
by the Commissioner in accepting the
agreement are accurate, and that the
obligations assumed by the applicant will
be performed pursuant to the agreement.
Failure to provide requested information
promptly will usually result in rejection of
the application. Instead of such rejection,
the Commissioner, in his discretion, may
also consider extension of an established
target date for issuing a withholding cer-
tificate. The parties shall agree that the
review of books and records pursuant to
the agreement shall not constitute an ex-
amination for purposes of section 7605(b)
of the Code.
SEC. 5. AGREEMENT FOR THE
PAYMENT OF TAX
.01 In general. The Service will issue a
withholding certificate that excuses with-
holding or that permits a transferee to
withhold a reduced amount if either the
transferor or the transferee enters into an
agreement for the payment of tax. An
agreement for the payment of tax is a con-
tract between the Service and any other
person that consists of two necessary ele-
ments. Those elements are:
1. A detailed description of the rights
and obligations of each; and
2. A security instrument or other
form of security acceptable to the Com-
missioner.
.02 Contents of agreement—In general.
An agreement for the payment of tax must
either provide adequate security for the
payment of the tax in accordance with sec-
tion 6 of this revenue procedure or provide
2000–35 I.R.B.215August 28, 2000

for the payment of the tax through a com-
bination of security and withholding of tax
by the transferee. The agreement must
cover an amount described in subdivision
(a) or (b) of this paragraph.
(a) Tax that would otherwise be with-
held. An agreement for the payment of
tax may cover the tax that would other-
wise be required to be withheld pursuant
to section 1445(a) of the Code. In addi-
tion to securing the amount computed
pursuant to section 1445(a), the agree-
ment must provide that the applicant will
pay interest upon that amount, at the rates
and in the manner prescribed by section
6621 and 6622, with respect to the period
between the date on which the tax im-
posed by section 1445(a) would otherwise
be due (i.e., the 20th day after the date of
transfer) and the date on which the trans-
feror’s payment of tax with respect to the
disposition will be due. Interest and addi-
tions with respect to the tax also must be
secured. In most instances, payments of
interest and additions to tax may be se-
cured by the same agreement that secures
payment of taxes. At the discretion of the
Commissioner, however, separate secu-
rity agreements may be required.
(b) Maximum tax liability. An agree-
ment for the payment of tax may provide
for the payment of the transferor’s maxi-
mum tax liability, determined in accor-
dance with section 4.06(2) of this revenue
procedure. The agreement must also pro-
vide for the payment of an additional
amount equal to 25 percent of the amount
determined under section 4.06(2). This
additional amount secures the interest and
additions to tax that would accrue be-
tween the date of a failure to file a return
and pay tax with respect to the disposition
and the date on which the Service collects
the tax pursuant to the agreement.
.03 Parties to the agreement. All
agreements for the payment of tax will be
between the Commissioner and the appli-
cant furnishing the security or personally
guaranteeing payment of any tax later de-
termined to be due. In addition, the Com-
missioner may require as a signatory any
other party deemed to be appropriate.
The Commissioner may require such
other terms and conditions, or vary the
format as appropriate in the particular
case, to provide adequate security.
.04 Contents of agreement—Stated pur-
pose and warranties. The agreement for
the payment of tax should state the pur-
pose and basis of the agreement. It
should also recite any warranties or repre-
sentations upon which the Commissioner
will be required to place material reliance
in accepting the agreement.
.05 Contents of agreement—Identifica-
tion of security. The agreement for the
payment of tax must set forth in detail the
obligations to be assumed and identify the
nature of the security that is being offered.
To the extent that the security is embodied
in an instrument or document collateral to
the agreement, such instrument or docu-
ment must be incorporated by reference in
the agreement.
.06 Sample agreement. The following
example sets forth the language of an
agreement for the payment of tax that in
most circumstances will be acceptable to
the Service:
1. This agreement is entered into
pursuant to the provisions of section 1445
of the Internal Revenue Code (the
“Code”) and the regulations thereunder.
The signatories warrant that they are
authorized under applicable law to enter
into the agreement and undertake the ac-
tions and obligations specified herein.
2.
(name)
warrants that (s)he/it will make timely
payment of any liability (including tax,
penalties, interest, and additions to tax)
that may become lawfully due and owing
under the Code as a result of the disposi-
tion or distribution by of
the interest, or any part thereof, described
in Exhibit(s) [the
“subject interest(s)”] giving rise to tax lia-
bility by reason of the operation of sec-
tions 871(b), 882, and/or 897 of the Code.
The related security secures payment of
such amounts. Security for the payment
of such liability is provided in the amount
of
, in
accordance with the requirements of sec-
tion 1.1445-3(e)(2) of the Income Tax
Regulations. The computation of the
proper amount of security to be provided
is set forth in Exhibit and
such computation is hereby incorporated
by reference.
3. The provisions of this agreement
shall be construed as binding upon all sig-
natories to this agreement, unless the in-
tent to exclude any one or more signato-
ries is clearly set forth in the provisions or
is clearly implicit in the terms hereof.
4. The amount of each deposit of es-
timated tax that will be required with re-
spect to the amount recognized on the
subject disposition may be collected by
levy upon or recourse to the security as of
the date following the date on which each
such deposit is due (unless such deposit is
timely made).
5. The entire amount of the liability
may be collected by levy upon or recourse
to the security at any time during the nine
months following the date on which the
payment of tax with respect to the subject
disposition is due, subject to release of the
security upon the full payment of the tax
and any interest and penalties due. If the
transferor requests an extension of time to
file a return with respect to the disposi-
tion, the Commissioner may require that
the term of the security instrument be ex-
tended until the date that is nine months
after the filing deadline as extended.
6. The applicant shall make available
to the Commissioner within 30 days of a
request from the Commissioner all infor-
mation that may be required by the Com-
missioner in order to verify that represen-
tations relied upon by the Commissioner
in accepting the agreement are accurate,
and that the obligations assumed by the
applicant are performed pursuant to this
agreement.
7. The parties agree that the review
of books and records pursuant to this
agreement shall not constitute an exami-
nation for purposes of section 7605(b) of
the Code.
8. Nothing in this agreement shall
limit the Commissioner from performing
the obligations imposed upon or dele-
gated to him under the law.
9. Upon the occurrence of any default
by the applicant under the applicable provi-
sions of this agreement, in addition to any
and all other rights and remedies which the
Commissioner may have hereunder, or
under any other applicable law, or other-
wise, the Commissioner may reduce the
claim to judgment, otherwise enforce the
security interests by any available judicial
procedure, and exercise any other rights
and remedies the Commissioner may have
at law, or in equity, or otherwise, including,
but not limited to the right to apply toward
payment of the obligations hereunder, with-
out notice to the applicant, any sums which
may then be held by the Commissioner for
said applicant.
August 28, 20002162000–35 I.R.B.

10. For purposes of this agreement,
the term “default” means a material mis-
representation of material fact or a failure
to honor an obligation or warranty agreed
to herein.
11. Except as otherwise provided in
this agreement, no provision of this agree-
ment shall be deemed to constitute a
waiver of any right that any party may
have to recover any amount in accordance
with the laws, statutes, and regulations of
the United States, nor shall any provision
of the agreement be deemed to be an ad-
mission by any person, whether or not a
party hereto, that such person is liable for
any federal income tax, or, if a foreign
corporation or nonresident alien, that such
person is subject to the taxing jurisdiction
of the United States, or if the Commis-
sioner, that the facts upon which this
agreement is based are true and accurate.
12. This agreement and all of its
terms and conditions shall inure to the
benefit of, and be binding upon, the Com-
missioner and the applicant, and their re-
spective successors.
13. All notices, instructions and other
communications (“Notices”) required or
permitted to be given, forwarded, or trans-
mitted hereunder or necessary or conve-
nient in connection herewith shall be in
writing and addressed to:
Internal Revenue Service Center
P.O. Box 21086
DP 8731 FIRPTA Unit
Philadelphia, PA 19144-0586
or
To [the applicant: the applicant’s ad-
dress etc]. and shall be deemed to have
been given only when delivered person-
ally or by private delivery service as
designated by the Internal Revenue Ser-
vice under I.R.C. §7502(f) (see Notice
99-41, 1999-35 I.R.B. 325, or its succes-
sor for a listing of private delivery ser-
vices); or sent by first class U.S. mail
(postage pre-paid, by registered or certi-
fied mail, return receipt requested); or
sent by cable, telex, telegram or facsim-
ile transmission (for example, tele-
copier) and confirmed by letter mailed
the same day to the party receiving the
notice. Any notice sent by mail to or
from a place outside the continental
United States shall be sent by air mail.
Any notice sent by cable, telegram, or
telex may be addressed to any published
cable, telegram, or telex address that the
addressee may have specified by notice
to all the signatories. Any signatory
may change the address or addresses to
which communications are to be di-
rected to it by giving written notice of
such change to the persons above speci-
fied in the manner provided above, pro-
vided, however, that [the applicant] may
establish or change an address to which
notices are to be directed only if the new
address is the address of [the applicant]
itself or the address of a person with
power of attorney to act for [the appli-
cant] with respect to the disposition or
distribution described in paragraph 2.
14. This agreement may not be
amended, modified, superseded, or can-
celed and none of the terms hereof may be
waived, except by a written instrument
executed by the Commissioner and the
other party or parties hereto sought to be
charged thereby. In the case of a waiver
of the breach of any term contained in this
agreement in any one or more instances,
the waiver shall be neither deemed to be
nor construed as a further or continuing
waiver of any such breach or term or any
other term contained in this agreement.
15. This agreement may be in any
number of counterparts with all the coun-
terparts together constituting one and the
same agreement.
16. The term “Commissioner” as
used herein also shall include any succes-
sors in office, and any and all agents or
employees thereof duty authorized for the
purpose.
17. This agreement shall not be bind-
ing upon any signatory hereto until it has
been signed by the Commissioner and the
Commissioner has received counterparts
thereof duly executed by each of the sig-
natories whose names appear at the end of
this agreement.
18. No provision of this agreement
shall relieve any party or person of any
obligation or liability under the internal
revenue laws of the United States, except
as specifically provided in this agreement.
19. This agreement is made without
prejudice to the assertion and/or collec-
tion of tax liabilities other than for any tax
imposed by section 871(b)(1) or 882(a)(1)
of the Code on any gain realized by the
transferor on the disposition of the subject
United States real property interest.
20. This agreement shall be gov-
erned, construed, and enforced in accor-
dance with the laws of the United States
of America and, where applicable, the
laws of the State of [insert applicable
local jurisdiction.]
21. It is agreed that nothing herein
shall be construed to increase, decrease,
or otherwise affect in any way the sub-
stantive tax liability of the taxpayer under
any other provision of the Code.
22. The Commissioner will not, in
part or in full, release, subordinate, or re-
turn the security held with respect to this
agreement except upon the payment of
any liability determined to be due or upon
the deposit of an acceptable amount of es-
timated tax or upon a showing to the satis-
faction of the Commissioner that the lia-
bility is zero.
2000–35 I.R.B.217August 28, 2000
I accept this Agreement Under penalties of perjury, I declare that I have examined this Agreement, related exhibits, sched-
ules and statements and to the best of my knowledge and belief it is true, correct and complete.
SignatureSignature of Signatory/Power of Attorney
Title
[Commissioner or person acting on behalf of the Commissioner]

SEC. 6. SECURITY
.01 Major types of security. There are
four major types of security acceptable to
the Service. These are:
1. Bond with surety or guarantor.
The Service may accept as security
with respect to a transferor’s tax liability a
bond that is executed with a satisfactory
surety or guarantor. Only the following
persons may act as surety or guarantor for
this purpose:
(a) Asurety company holding a
certificate of authority from
the Secretary as an acceptable
surety on Federal bonds, as
listed in Treasury Department
Circular No. 570, published
annually in the Federal Regis-
ter on the first working day in
July and as supplemented from
time to time thereafter;
(b) Aperson who is engaged within
or without the United States in
the conduct of a banking, fi-
nancing, or similar business
under the principles of section
1.864-4(c)(5) of the regulations,
and who is subject to U.S. or
foreign (local or national) regu-
lation of such business, if that
person is otherwise acceptable
to the Service; and
(c) Aperson who is engaged within
or without the United States in
the conduct of an insurance
business that is subject to U.S. or
foreign (local or national) regu-
lation, if that person is otherwise
acceptable to the Service.
2. Bond with collateral. The Service
may accept as security with respect to a
transferor’s tax liability a bond that is se-
cured by acceptable collateral. All collat-
eral must be deposited with a responsible
financial institution acting as escrow
agent, or in the Service’s discretion, with
the Service. Only the following types of
collateral are acceptable:
(a) Bonds, notes, or other public
debt obligations of the United
States, in accordance with the
rules of 31 CFR Part 225; and
(b) A certified, cashier’s, or trea-
surer’s check, drawn on an en-
tity acceptable to the Service
that is engaged within or with-
out the United States in the
conduct of a banking, financ-
ing, or similar business under
the principles of section 1.864-
4(c)(5) of the regulations and
that is subject to U.S. or for-
eign (local or national) regula-
tion of such business.
3. Letter of credit. The Service may
accept as security with respect to a trans-
feror’s tax liability an irrevocable letter or
credit issued by an entity acceptable to the
Service that is engaged within or without
the United States in the conduct of a
banking, financing, or similar business
under the principles of section 1.864-
4(c)(5) of the regulations and that is sub-
ject to U.S. or foreign (local or national)
regulation of such business. The Service
will accept a letter of credit from an entity
that is not engaged in a trade or business
in the United States only if such letter
may be drawn on an advising bank within
the United States.
4. Guarantee. The Service may ac-
cept as security with respect to a corpo-
rate transferor’s tax liability a guarantee
of the payment of such liability. The Ser-
vice will accept such a guarantee only if
(a) the corporation providing the guaran-
tee is a corporation, foreign or domestic,
any class of the stock of which is regu-
larly traded on an established securities
market on the date of the transfer; (b) the
corporation providing the guarantee (1) is
the transferor or holds, directly or indi-
rectly, more than 80 percent of the voting
stock of the transferor and (2) is engaged
in a trade or business within the United
States; and (c) the corporation providing
the guarantee has net assets in the United
States at least $25 million in excess of the
value of the U.S. real property interest
which is being disposed of.
5. Other forms of security. The Ser-
vice, at its discretion, may in unusual cir-
cumstances accept any additional form of
security that it finds to be adequate.
.02 Sample Forms. Listed below are
sample forms of security instruments that
in most circumstances are acceptable to
the Service, to be used when requesting a
withholding certificate pursuant to section
1.1445-3 of the regulations.
August 28, 20002182000–35 I.R.B.
1. BOND WITH SURETY/GUARANTOR
OBLIGATION. The undersigned, , the Guarantor(s), is (or if more than one, jointly and severally
are) irrevocably held and firmly bound to pay the Internal Revenue Service the following portion of any tax (including any penalties,
interest, and additions to tax) lawfully due and owing by any person listed below as a specified taxpayer as a result of the disposition
or distribution of all or part of the subject interest in U.S. real property listed below as the subject interest(s):
* * *
CONDITIONS OF THIS OBLIGATION. The Internal Revenue Service may demand payment of the secured liability or any portion
thereof at any time and for any reason. If the secured liability or requested portion is paid when requested by the Internal Revenue
Service, this Guarantee shall be released to the extent so paid; otherwise, it shall remain in full force and effect until released in writ-
ing by the Internal Revenue Service.
SUBJECT INTEREST(S):
SPECIFIED TAXPAYER(S):
SIGNED, SEALED, AND DATED THIS
day of 20,
Guarantor [Seal]
Guarantor [Seal]

2000–35 I.R.B.219August 28, 2000
Corporate Guarantor
(Corporate Seal)
Attest:
By:
[Corporate Seal]
Surety/Guarantor
By:[Corporate Seal]
Secretary
Title
2. BOND WITH COLLATERAL
OBLIGATION: The undersigned,
the Guarantor(s) (or if more than one, jointly and severally are) irrev-
ocably held and firmly bound to pay the Internal Revenue Service the following portion of any tax (including any penalties, interest,
and additions to tax) lawfully due and owing by any person listed below as a specified taxpayer as a result of the disposition or dis-
tribution of all or part of the subject interest in U.S. real property listed below as the subject interest(s):
SECURITY: The above-bound Guarantor(s), in order to more fully secure the Internal Revenue Service in the payment of this oblig-
ation, hereby pledge(s) as security therefor the following collateral:
* * *
CONDITIONS OF THE OBLIGATION. The Internal Revenue Service may demand payment of the secured liability or any portion
thereof at any time and for any reason. If the Guarantor(s) fail(s) to pay the amount requested by the Internal Revenue Service. The
Commissioner and his designates are authorized and empowered, in their sole discretion, in whole or in part, to exercise the power of
attorney, contemporaneously executed and delivered to collect, sell, transfer, or assign the above described security and apply the
funds so received in full or partial satisfaction of any liability for taxes, interest, penalties, or additions to tax secured hereby. If the
secured liability or portion requested is paid by the Guarantor(s) when requested by the Internal Revenue Service, this security shall
be released to the extent so paid; otherwise, this obligation shall remain in full force and effect until released in writing by the Inter-
nal Revenue Service.
SUBJECT INTEREST(S):
SPECIFIED TAXPAYER(S):
SIGNED, SEALED, AND DATED THIS
day of 20,
Guarantor [Seal]
Guarantor [Seal]
Corporate Guarantor
By:
Title [Corporate Seal]
(Corporate Seal)
Attest:
Secretary
Individual’s power of attorney
3. POWER OF ATTORNEY
I (we)... do hereby constitute and appoint the Commissioner (and his/her designate) as attorney for me (us) and in my (our) name to
collect, sell, assign, and transfer the following:
* * *
which has been deposited by me (us) as security for the faithful performance of my (our) bond, which is attached and incorporated
by reference, and I (we) agree that, in case of any default in the performance of any of the conditions and stipulations of the bond,
my (our) said attorney shall have full power to collect said security or any part thereof, or to sell, assign to another for the purposes

of effecting either public or private sale, free from any equity of redemption and without appraisal or valuation notice and right to
redeem being waived, and the proceeds of such sale for collection, in whole or in part, to be applied to the satisfaction of the liability
secured by the bond in such manner as may be deemed in the best interest of the United States. I (We) further agree that the author-
ity herein granted is irrevocable.
And for myself (ourselves), my (our several) administrators, executors, and assigns, I (we) hereby ratify and confirm whatever my
(our) said attorney shall do by virtue of this power of attorney.
In witness whereof, I (we), herein above named, have executed this instrument and affixed my (our) seal this
day of
, 20.
[SEAL]
State of )
ss
County of )
Before me, the undersigned, a notary public within and for the said county and State, personally appeared... [name(s) of Guaran-
tor(s)], and acknowledged the execution of the foregoing power of attorney.
Witness my hand and notarial seal this
day of , 20.
Notary Public
My Commission expires
Corporation’s power of attorney
4. POWER OF ATTORNEY
, a corporation duly incorporated under the laws of the State of and having its principal office in the city of
, State of in pursuance of a resolution of the Board of Directors, of said corporation passed on the day
of , 20 , a duly certified copy of which resolution is attached hereto, does hereby constitute and appoint the Com-
missioner (and his designates) as attorney for said corporation, for and in the name of said corporation, to collect or to sell, assign,
and transfer the following:
* * *
which has been deposited by it as security for the faithful performance of the bond, a copy of which is attached, and which is incor-
porated by reference, and the undersigned agrees that, in case of any default in the performance of any of the conditions and stipula-
tions of the bond, its said attorney shall have full power to collect said security or any part thereof, or to sell, assign, and transfer said
security or any part thereof without notice, at public or private sale, or to transfer or assign to another for the purpose of effecting ei-
ther public or private sale, free from any equity of redemption and without appraisal or valuation, notice and right to redeem being
waived, and the proceeds of such sale for collection, in whole or in part, to be applied to the satisfaction of the liability secured by
the bond, in such manner as may be deemed in the best interests of the United States. The undersigned further agrees that the au-
thority granted is irrevocable.
And said corporation, hereby for itself, its successors and assigns, ratifies and confirms whatever its said attorney shall do by
virtue of this power of attorney.
In witness whereof, , the corporation above named, by (Name and title of officer), duly au-
thorized to execute this instrument has caused the seal of the corporation to be affixed hereto this day of 20 .
Attest:
(Corporate seal) Secretary
By:
Title
State of )
ss
County of )
Before me, the undersigned, a notary public within and for the said county and State, personally appeared (name
and title of officer), and for and in behalf of said corporation, acknowledged the execution of the foregoing
power of attorney.
Witness my hand and notarial seal this day of , 20.
[Notarial seal]
August 28, 20002202000–35 I.R.B.

Notary Public
My Commission expires
5. LETTER OF CREDIT
Place:Cable Address:
Date:
IRREVOCABLE All drafts must be marked:Advising bank
STANDBYDrawn under credit no.reference to
LETTER OF
CREDIT
Advising bankFor account of
To beneficiary
Internal Revenue Service
950 L’Enfant Plaza South, S.W.
Washington, DC 20224
Attention: Collection
Expiration
date
This refers to
preliminary
cable advice
of this credit
Gentlemen:
We hereby establish our irrevocable letter of credit in your favor available by your drafts drawn at SIGHT and accompanied by doc-
uments specified below: NONE
We hereby engage with you thatAdvising bank’s notification
all drafts drawn under and in
compliance with the terms of
this credit will be duly honored
if drawn and presented for payment
at this office on or before the
expiration date of this credit. Place, date, name, and
The advising bank is requested tosignature of the
notify the beneficiary withoutadvising bank
adding their confirmation.
Sincerely yours,
Authorized counter signature
Authorized signature
6. GUARANTEE
OBLIGATION: The undersigned,
, the Guarantor(s), is (or if more than one, jointly
and severally are) irrevocably held and firmly bound to pay the Internal Revenue Service the following portion of any tax (including
any penalties, interest, and additions to tax) lawfully due and owing by any person listed below as a specified taxpayer as a result of
any disposition or distribution taxable by reason of sections 871(b)(1), 882(a)(1), and/or 897 of the Code as to all or part of the sub-
ject interest in U.S. real property listed below as the subject interest:
CONDITIONS OF THIS OBLIGATION: The Internal Revenue Service may demand payment of the secured liability or any portion
thereof at any time and for any reason. If the secured liability or requested portion is paid when requested by the Internal Revenue
Service, this Guarantee shall be released to the extent so paid; otherwise, it shall remain in full force and effect until released in writ-
ing by the Internal Revenue Service.
SUBJECT INTEREST(S):
2000–35 I.R.B.221August 28, 2000

SPECIFIED TAXPAYER(S):
SIGNED, SEALED, AND DATED THIS
day of 20,
Guarantor [Seal]
Corporate Guarantor
By:
[Corporate Seal]
Attest:
Secretary
August 28, 20002222000–35 I.R.B.
SEC. 7. INSTALLMENT SALES
01. In general. A transferee as a result
of a disposition of a U.S. real property in-
terest occurring after December 31, 1984,
is required to satisfy its withholding
obligation based on the amount realized
regardless of the amount of the payment
by the transferee. If the transferor is a
person other than a dealer and will report
gain from the disposition under section
453 of the Code, a withholding certificate
that permits the transferee to withhold at a
reduced rate may be obtained under the
rules of this section. Any withholding
certificate must provide for payment of
the interest on the deferred tax liability
under section 453A(c) of the Code when
applicable. No refund of the amount
withheld will be made unless such a with-
holding certificate is obtained.
.02 Withholding certificate requests.
With respect to installment sales subject
to withholding under section 1445(a) of
the Code, the Service will entertain re-
quests for certificates based on the trans-
feree’s agreement to do the following:
1. Withhold and pay over 10 percent,
or such lesser amount as determined by
the Commissioner, of any down payment,
including any liabilities of the transferor
assumed by the transferee or liabilities to
which the subject U.S. real property inter-
est was subject immediately before and
after the transfer;
2. Withhold 10 percent, or such
lesser amount as may be determined by
the Commissioner, of each subsequent
payment and the interest on the deferred
tax liability under section 453A(c) of the
Code (these amount are in addition to any
other amount required to be withheld
under section 1441 or 1442);
3. Pay over all amounts withheld
using Forms 8288 and 8288-A, including
thereon the taxpayer identification num-
ber of the transferor; and
4. Notify the Commissioner prior to
the disposition or encumbrance of the
subject U.S. real property interest, and
upon such disposition or encumbrance
pay over to the Service the amount re-
maining to be withheld pursuant to sec-
tion 1445(a).
5. If the transferor pledges the in-
stallment obligation in exchange for all or
a portion of the proceeds due on the in-
stallment obligation and includes in gross
income under section 453A(d) of the
Code the net proceeds of the secured in-
debtedness, the transferee’s obligation to
withhold under a reduced withholding
certificate nevertheless continues until an
amended withholding certificate is issued
even though the transferor includes the
proceeds in gross income.
SEC. 8. APPLICATION FOR
WITHHOLDING CERTIFICATES
FOR AMOUNTS REQUIRED TO BE
WITHHELD UNDER SECTION
1445(e)
.01 In general. Pursuant to the provi-
sions of sections 1.1445-5(c), (d), and (e)
of the regulations, withholding under sec-
tion 1445(e) of the Code may be reduced
or eliminated pursuant to a withholding
certificate issued by the Service in accor-
dance with the rules of section 1.1445-6.
A withholding certificate may be issued in
cases where adjusted withholding is ap-
propriate, where the relevant taxpayers
are exempt from U.S. tax, or where an
agreement for the payment of tax is en-
tered into with the Service. If a domestic
partnership’s transfer of a U.S. real prop-
erty interest is subject to both section
1445(e)(1) and section 1446, a withhold-
ing certificate will not be issued. See Rev.
Proc. 89-31, 1989-1 C.B. 899. The term
“relevant taxpayer” shall mean any for-
eign person that will bear substantive in-
come tax liability by reason of a transac-
tion upon which withholding is required
under section 1445(e).
.02 Applications. An application for a
withholding certificate pursuant to section
1.1445-6 of the regulations must follow
the format set forth in section 4.04 of this
revenue procedure and provide the infor-
mation described in sections 4.05 through
4.10, with the following adjustments:
1. The application must include a
preliminary item stating that it relates to
withholding under section 1445(e) of the
Code and specifying the applicable provi-
sions of that section;
2. Item 2(b) of section 4.04 must
state whether the applicant is a relevant
taxpayer or a person required to withhold
(and in what capacity that person is re-
quired to withhold; for example, as
trustee);
3. Item 2(c) of section 4.04 must pro-
vide the required information with respect
to each relevant taxpayer with respect to
which adjusted withholding is sought; and
4. Information concerning the basis
for the issuance of the certificate must be
provided with respect to each relevant
taxpayer.
.03 Installment sales. With respect to
installment sales subject to withholding
under section 1445(e) of the Code, the
Service will entertain requests for with-
holding certificates based on the entity’s
or the fiduciary’s agreement to do the fol-
lowing:
1. Withhold and pay over a portion,
in an amount determined appropriate
under section 1445(e) by the Commis-
sioner, of any down payment received, in-

cluding any liabilities of the entity as-
sumed by the transferee or liabilities to
which the subject U.S. real property inter-
est was subject immediately before and
after the transfer;
2. Withhold a portion, in an amount
determined appropriate under section
1445(e) by the Commissioner, of each
subsequent payment received (this
amount is in addition to any other amount
required to be withheld under sections
1441 or 1442);
3. Pay over all amounts withheld
using Forms 8288 and 8288-A, including
thereon the taxpayer identification num-
ber of the interest holder subject to with-
holding; and
4. Notify the Commissioner, prior to
the disposition or encumbrance of the
subject installment obligation, and upon
such disposition or encumbrance pay over
to the Service the amount remaining to be
withheld under section 1445(e).
SEC. 9. BLANKET WITHHOLDING
CERTIFICATE
.01 In general. The Commissioner
may issue a withholding certificate (blan-
ket withholding certificate) that excuses
withholding with respect to multiple dis-
positions of U.S. real property interests by
the transferor or the transferor’s legal rep-
resentative during a period of no more
than 12 months. A blanket withholding
certificate may be issued if the transferor
holding the U.S. real property interests
provides a letter of credit as specified in
paragraph 1 of this subsection .01 or a
guarantee as specified in paragraph 2 of
this subsection .01 and enters into an
agreement with the Service that meets the
requirements of paragraphs 3 and 4 of this
subsection .01.
1. For dispositions not subject to sec-
tion 1445(e) of the Code, the transferor
must provide an irrevocable letter of
credit in an amount equal to the greater of
(i) $100,000 or (ii) 10 percent of the
amount to be realized on the projected
dispositions covered by the certificate.
For dispositions subject to section
1445(e), the transferor must provide an ir-
revocable letter of credit in an amount
equal to the greater of (i) $100,000 or (ii)
the tax that section 1445(e) would require
to be withheld. The letter of credit must
meet the requirements of paragraph 3 of
subsection 6.01 of this revenue procedure
and otherwise must be acceptable to the
Commissioner. In addition, the letter of
credit by its terms must be valid until at
least the last day of the ninth month fol-
lowing the date (including extensions of
time) on which a return will be required to
be filed with respect to the tax year in
which the 12th month covered by the
withholding certificate falls. A letter of
credit in the form specified in subsection
6.02(5) in most circumstances will be ac-
ceptable to the Service when requesting a
blanket withholding certificate.
2. Alternatively, the Service may ac-
cept as security for a blanket withholding
certificate with respect to a corporate
transferor’s tax liability a guarantee of the
payment of such liability. The Service
will accept such a guarantee only if (a) the
corporation providing the guarantee is a
corporation, foreign or domestic, any class
of the stock of which is regularly traded
on an established securities market on the
date of the transfer; (b) the corporation
providing the guarantee (1) is the trans-
feror or holds, directly or indirectly, more
than 80 percent of the voting stock of the
transferor and (2) is engaged in a trade or
business within the United States; and (c)
has gross assets in the United States at
least $25 million in excess of the U.S. real
property interest being disposed of.
Additionally, the transferor corporation
must have filed United States corporate
income tax returns for the prior consecu-
tive three years and the guarantee other-
wise must be acceptable to the Commis-
sioner. The guarantee by its terms must
be valid until at least the last day of the
ninth month following the date (including
extensions of time) on which a return will
be required to be filed with respect to the
tax year in which the 12th month covered
by the withholding certificate falls. A
guarantee in the form specified in subsec-
tion 6.02(6) will be acceptable to the Ser-
vice in most circumstances when request-
ing a blanket withholding certificate.
3. The transferor must provide with
the letter of credit described in paragraph
1 of this subsection or the guarantee de-
scribed in paragraph 2 of this subsection
an executed tax payment and security
agreement securing the payment of tax
with respect to the projected dispositions
covered by the blanket withholding cer-
tificate. The agreement must generally
meet the requirements of subsections 5.02
through 5.05 of this revenue procedure as
modified to take account of this subsec-
tion 9.01 and otherwise must be accept-
able to the Commissioner. The agreement
must also list all the U.S. real property in-
terests covered by the agreement and give
a brief description of each interest. In ad-
dition, the agreement must contain the
terms as to notification of specific dispo-
sitions required by paragraph 4 of this
subsection 9.01 and must provide that, in
the event of a failure by the transferor to
provide such notification or to file a re-
turn in a timely manner, deposit estimated
tax in a timely manner, or to pay tax in a
timely manner, with respect to the gain on
one or more of the dispositions covered
by the certificate, the Commissioner may
draw upon the letter of credit or demand
payment under the guarantee to satisfy the
transferor’s liability for any tax imposed
by 871(b)(1) or 882(a)(1) of the Code,
plus interest and penalties, if any, on any
one or more dispositions covered by the
certificate.
4. The agreement required by para-
graph 3 of this subsection must state that
the transferor agrees to notify the Com-
missioner before or on the date of any dis-
position of a U.S. real property interest
covered by the blanket certificate. The
notice shall include the following infor-
mation:
(a) The name, legal address, and
taxpayer identification number
(to the extent required in regu-
lations) of the transferor or the
name and legal address of a
legal representative of the
transferor with the power to
bind the transferor with respect
to the disposition;
(b) The name, legal address, and
taxpayer identification number
(to the extent required in regu-
lations) of the transferee or the
name and legal address of a
legal representative of the
transferee with the power to
bind the transferee with re-
spect to the disposition:
(c) A description of the U.S. real
property interest to be trans-
ferred and the anticipated date
of the transfer;
(d) The amount that would other-
wise have been required to be
withheld on the transfer (10
2000–35 I.R.B.223August 28, 2000

percent of the amount realized
unreduced by the maximum
tax calculation or for any other
reason);
(e) The cumulative total of
amounts that would otherwise
have been required to be with-
held with respect to disposi-
tions (i) which have already
taken place or are scheduled to
take place prior to the disposi-
tion with respect to which no-
tice is being given and (ii) with
respect to which the Commis-
sioner has not sent the notice
described in subsection .02(l)
below;
(f) The amount of the original let-
ter of credit provided or the
amount the guarantor is bound
to pay the Service under the
guarantee; and
(g) Acopy of the transferor’s
withholding certificate, or if
the application is pending, a
copy of the withholding cer-
tificate application.
An agreement in the form prescribed
by subsection 5.06 of this revenue proce-
dure in most cases will be acceptable to
the Service for purposes of paragraphs 3
and 4 of this subsection 9.01, with the
following modifications: (i) The form
should reflect and describe, as the “sub-
ject interests,” the projected dispositions
to be covered by the blanket withholding
certificate to which the agreement will
relate, (ii) paragraph 2 of the form
should be modified to state that the
agreement is entered into in connection
with an application for a blanket with-
holding certificate and will extend to all
dispositions covered by the blanket with-
holding certificate, (iii) the third sen-
tence of paragraph 2 should be revised to
read “Security for the payment of such
liability is provided by an irrevocable
letter of credit in the amount of
in ac-
cordance with the requirements of sub-
section 9.01(1) of Rev. Proc. 2000–35 or
by a guarantee in accordance with the re-
quirements of subsection 9.01(2) of Rev.
Proc. 2000–35,” (iv) a new paragraph
should be added to the form (designated
as paragraph 3, with the other paragraphs
being renumbered accordingly), contain-
ing the terms of paragraph 4 of this sub-
section 9.01, and (v) paragraph 5 of the
form (paragraph 6 as renumbered)
should be revised to read:
“6. In the event of any failure by the
transferor or the transferor’s legal repre-
sentative (i) to notify the Commissioner
properly, in accordance with paragraph
4, of a disposition of a U.S. real property
interest covered by this agreement and
the blanket withholding certificate to
which it relates, or (ii) to file a return in a
timely manner, to deposit estimated tax
in a timely manner, or to pay tax in a
timely manner, with respect to the gain
on one or more dispositions covered by
this agreement and such certificate, the
Commissioner may draw upon the letter
of credit provided or the guarantee as re-
lated security under this agreement in
full to the extent of the tax imposed by
section 871(b)(1) or section 882(a)(1) of
the Code on any one or more disposi-
tions covered by this agreement and such
certificate, plus interest and additions to
tax, if any. This amount shall be in addi-
tion to any other civil or criminal penal-
ties that may apply with respect to the
applicant’s use of the withholding cer-
tificate in violation of the terms thereof.”
.02 Withholding certificates—Provi-
sions. A withholding certificate issued by
the Commissioner under this section will
state that no withholding is required with
respect to any disposition of a U.S. real
property interest by the applicant pro-
vided that (1) before the date of the trans-
fer, the Commissioner does not provide
notice to the person who would otherwise
be required to withhold (discussed in
paragraph 1 below) that such withholding
is required, and (2) the person who would
otherwise be required to withhold timely
provides the information and material de-
scribed in paragraph 2 below and the dis-
position as consummated does not materi-
ally fail to correspond to the information
so provided.
1. If one of the following conditions
occurs, the Commissioner will provide
notice to the applicant, and to the person
required to withhold, that withholding is
required despite the prior issuance of a
withholding certificate:
(a) The applicant’s letter of credit
or amount under the guarantee,
in light of prior dispositions, is
not sufficient to cover the
amount otherwise required to
be withheld on the transfer, or
(b) The applicant has otherwise
violated the provisions of this
section.
2. To be exempt from withholding
tax liability, the person that would other-
wise be required to withhold must, before
or on the day of the closing of a transac-
tion, provide a statement to the Commis-
sioner containing the following informa-
tion and material:
(a) The name, legal address, and
taxpayer identification number
(to the extent required in regu-
lations) of the transferee or the
name and legal address of a
legal representative of the
transferee with the power to
bind the transferee with respect
to the acquisition;
(b) The name, legal address, and
taxpayer identification number
(to the extent required in regu-
lations) of the transferor or the
name and legal address of a
legal representative of the
transferor with the power to
bind the transferor with re-
spect to the acquisition;
(c) Adescription of the acquired
U.S. real property interest and
the anticipated date of the ac-
quisition;
(d) The total contract price of the
acquired U.S. real property in-
terest; the amount of liabilities,
if any, to be assumed by the
transferee; and the amount of
liabilities, if any, to which the
property is to be acquired is
subject; and
(e) Acopy of the transferor’s
withholding certificate.
.03 Copy of security agreement. The
Commissioner will, upon request, provide
the transferor with a copy of a security
agreement submitted pursuant to para-
graph 9.01(2) executed by the Commis-
sioner, but such an executed copy is not
needed to establish the validity of the
blanket withholding certificate for pur-
poses of the subject disposition. Provided
that notice is not given by the Commis-
sioner under section 9.02(1), and pro-
vided that the transferee timely provides
the required information and materials,
the withholding certificate remains valid.
.04 Consequences of failure to notify.
In the event of any failure by the trans-
August 28, 20002242000–35 I.R.B.

feror or the transferor’s legal representa-
tive to notify the Commissioner properly,
in accordance with section 9.01(3), of a
disposition of a U.S. real property inter-
est, or to file a return in a timely manner,
to deposit estimated tax in a timely man-
ner, or to pay tax in a timely manner, with
respect to the gain on one or more dispo-
sitions covered by the blanket withhold-
ing certificate, the letter of credit pro-
vided under section 9.01(l) or the
guarantee provided under section 9.01(2)
may be drawn upon in full to the extent of
the tax imposed by section 871(b)(1) or
section 882(a)(1) of the Code, plus inter-
est and additions to tax, if any, on any one
or more dispositions covered by the blan-
ket withholding certificate. This amount
shall be in addition to any other civil or
criminal penalties that may apply with re-
spect to the applicant’s use of the with-
holding certificate in violation of the
terms thereof.
SEC. 10. AUTHORIZED
REPRESENTATIVE
In any situation covered by this rev-
enue procedure in which a person acts for
or is designated as a legal representative
of either a transferor or a transferee, such
person must be authorized to so act by a
power of attorney on file with the Com-
missioner. Form 2848 may be used for
this purpose.
SEC. 11. INQUIRIES
Address all inquiries to:
Internal Revenue Service Center
P.O. Box 21086
Drop Point 8731 FIRPTA Unit
Philadelphia, PA 19114-0586
SEC. 12. EFFECTIVE DATE
This revenue procedure is effective for
all applications for withholding certifi-
cates submitted after September 27, 2000.
SEC. 13. EFFECT ON OTHER
DOCUMENTS
Rev. Proc. 88-23, 1988-1 C.B. 787, is
superseded as of the date Rev. Proc. 2000-
35 is effective.
SEC. 14. PAPERWORK
REDUCTION ACT
The collections of information con-
tained in this revenue procedure have
been reviewed and approved by the Of-
fice of Management and Budget in accor-
dance with the Paperwork Reduction Act
(44 U.S.C. 3507) under control number
1545-1697.
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.
The collections of information are con-
tained in sections 4 through 9 of this rev-
enue procedure. This information will be
used to enable the Commissioner to deter-
mine whether to issue a withholding cer-
tificate to an applicant which reduces or
eliminates withholding under section
1445 of the Code. The likely respondents
are individuals, corporations, partner-
ships, and foreign governments.
The estimated total annual reporting
and/or recordkeeping burden is 60,000
hours.
The estimated average annual burden
per applicant is 10 hours. The estimated
number of applicants is 6,000.
The estimated number of responses is
on occasion.
Books and 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.
DRAFTING INFORMATION
The principal authors of this revenue
procedure are Sharon J. Bomgardner, for-
merly of the Office of Associate Chief
Counsel (International), and Robert W.
Lorence, of the Office of Associate Chief
Counsel (International). For further infor-
mation, contact Tom Logan of Foreign Pay-
ments, Pre-filing and Technical Guidance
at (202) 283-8410 (not a toll-free number).
2000–35 I.R.B.225August 28, 2000

August 28, 20002262000–35 I.R.B.
Reporting Requirements for
Section 527 Organizations
Announcement 2000–72
The Internal Revenue Service is con-
sidering the issuance of a revenue ruling
addressing questions concerning the re-
porting requirements for political organi-
zations described in § 527 of the Internal
Revenue Code.
BACKGROUND
On July 1, 2000, Pub. L. 106–230 was
enacted, amending § 527 of the Code.
The new law imposes three reporting and
disclosure requirements on political orga-
nizations described in § 527: (1) an initial
notice of status, (2) periodic reports of
contributions and expenditures, and
(3) annual returns.
The following proposed revenue ruling
provides questions and answers relating
to the reporting and disclosure require-
ments for political organizations de-
scribed in § 527. Because the new law
was effective upon enactment, § 527 or-
ganizations may rely upon this proposed
revenue ruling until the revenue ruling is
finalized and issued.
The Service is soliciting public com-
ment on the proposed revenue ruling.
The Service asks for comments not only
on the questions and answers posed in the
proposed revenue ruling, but also on other
questions concerning the reporting re-
quirements for § 527 organizations.
Public comments should be submitted
in writing on or before September 8,
2000. The Service plans to finalize the
revenue ruling as soon as possible after
this date. Comments should be sent to the
following address:
Internal Revenue Service
1111 Constitution Ave, NW
Washington, DC 20224
Attn: Judith E. Kindell
T:EO:RA:T:P, Room 6033
Comments may also be sent electronically
via the Internet to *TE/GE-Exempt-
1@irs.gov.
DRAFTING INFORMATION
The principal author of this announce-
ment is Judith E. Kindell of the Exempt
Organizations Technical Division. For
further information regarding this an-
nouncement contact Judith E. Kindell on
(202) 622-6494 (not a toll-free call).
PROPOSED REVENUE RULING
ISSUES
On July 1, 2000, Pub. L. 106-230 was
enacted, amending § 527 of the Code.
The new law imposes three reporting and
disclosure requirements on political orga-
nizations described in § 527: (1) an initial
notice of status, (2) periodic reports of
contributions and expenditures, and
(3) annual returns. This revenue ruling
provides questions and answers relating
to the reporting and disclosure require-
ments for political organizations de-
scribed in § 527.
QUESTIONS AND ANSWERS
I. Notice of Status
1. Q. What is the notice of status require-
ment for an organization described in
§ 527?
A. Under § 527(i)(1)(A), a political or-
ganization is required to give notice both
electronically and in writing to the Ser-
vice that it is a political organization de-
scribed in § 527.
2. Q. What is the required notice form?
A. The required notice form is
Form 8871, Political Organization Notice
of Section 527 Status.
3. Q. Are all political organizations re-
quired to file the Form 8871 notice?
A. No. Under § 527(i)(5) and
§ 527(i)(6), three types of organizations
are not required to file the Form 8871 no-
tice:
(a) Persons required to report under
the Federal Election Campaign Act
of 1971 (FECA) as a political com-
mittee (see 2 U.S.C. § 431(4));
(b) Organizations that reasonably an-
ticipate that their annual gross re-
ceipts will always be less than
$25,000; and
(c) Organizations described in
§ 501(c) that are subject to
§ 527(f)(1) because they have
made an “exempt function” expen-
diture.
All other political organizations, includ-
ing state and local candidate committees,
are required to file the notice.
4. Q. Is an organization that finances
both federal and non-federal election
activity required to file the Form 8871
notice?
A. As a general rule, any political orga-
nization (whether or not separately incor-
porated) that is organized and operated for
an exempt function under § 527(e)(2) (see
Q&A-15) must file Form 8871 unless it
meets one of the exceptions discussed
above (see Q&A-3), one of which is being
required to report under FECA as a politi-
cal committee. An organization that fi-
nances election activity (within the mean-
ing of FECA) for both federal and
non-federal elections may establish a polit-
ical committee to receive contributions and
make expenditures for both federal and
non-federal election activity. In that case,
the organization must register as a political
committee and comply with the FECA
contribution limitations and reporting re-
quirements. 11 C.F.R. 102.5(a)(1)(ii).
Such an organization is, therefore, not re-
quired to file Form 8871.
If, however, the organization sets up
separate accounts to conduct its federal
election activity and its non-federal elec-
tion activity, the federal account is treated
as a separate political committee that is
required to register and report under
FECA. 11 C.F.R. 102.5(a)(1)(i). The
treatment of the federal account as a sepa-
rate committee is consistent with the or-
ganizational requirements for political or-
ganizations under § 527, as discussed
below in Q&A-10. Accordingly, the sep-
arate federal account is not required to file
Form 8871. However, a separate non-
federal account is not required to register
and report under FECA as a political com-
mittee. Therefore, a separate non-federal
account that is described in § 527(e)(1) is
required to file Form 8871.
5. Q. Are political organizations that are
required to report to state or local elec-
tion agencies excepted from the notice
requirement?
A. Section 527(i) does not except po-
litical organizations that file reports with
state or local election agencies from the
notice of status requirement. Therefore,
unless the political organization meets
one of the exceptions discussed above in
Q&A-3, it must file Form 8871 with the
Service.
Part IV. Items of General Interest

2000–35 I.R.B.227August 28, 2000
6. Q. When must the organization file
Form 8871?
A. Form 8871 must be filed within 24
hours after the date on which the organiza-
tion was established. See Notice 2000–36,
2000–33 I.R.B. 173, for information about
filing requirements for organizations in ex-
istence before July 30, 2000.
7. Q. What are the methods of filing
Form 8871?
A. Section 527(i)(1)(A) requires that
the organization file Form 8871 both elec-
tronically and in writing. Therefore, the
methods for filing Form 8871 are as fol-
lows:
(a) Electronically via the Internal Rev-
enue Service Internet Web Site
(IRS Web Site) at www.irs.gov./
bus_info/eo/pol-file.html, and
(b) In writing by sending a signed
copy of Form 8871 to the Internal
Revenue Service Center, Ogden,
UT 84201. An organization can
fill in and print out the form from
the IRS Web Site.
8. Q. Must an organization take any addi-
tional steps before filing Form 8871?
A. Before filing Form 8871, the politi-
cal organization must have its own em-
ployer identification number (EIN) even
if it has no employees. To obtain an EIN,
an organization must file Form SS-4, Ap-
plication for Employer Identification
Number, with the Service. The organiza-
tion may obtain the EIN either by tele-
phone or by mail. If the organization ap-
plies by telephone, it can obtain the EIN
immediately.
9. Q. What information must be provided
in the Form 8871 notice?
A. Under § 527(i)(3), an organization
must provide in its Form 8871 notice its
name and address (including any business
address, if different) and electronic mail-
ing address; its purpose; the names and
addresses of its officers, highly compen-
sated employees, contact person, custo-
dian of records, and members of its Board
of Directors; and the name and address of,
and relationship to, any related entities
(within the meaning of § 168(h)(4)).
10. Q. Does § 527(i) change the organi-
zational requirements for § 527 orga-
nizations?
A. No. Section 527 does not require an
organization to have formal organizational
documents, such as articles of incorpora-
tion. Under § 1.527–2(a)(2) of the Income
Tax Regulations, a political organization
meets the organizational test if it is orga-
nized for the primary purpose of carrying
on exempt function activities as defined in
§ 527. The regulation specifically states
that the organization need not be formally
chartered or established as a corporation,
trust, or association. For example, a sepa-
rate bank account in which political cam-
paign funds are deposited and disbursed
only for political campaign expenses can
qualify as a political organization. See
Rev. Rul. 79–11, 1979–1 C.B. 207.
The requirement that a § 527 organiza-
tion include the names and addresses of
its officers, highly compensated employ-
ees, and members of its Board of Direc-
tors does not change the organizational
test for § 527. Section 527(i) does not re-
quire political organizations to be orga-
nized with Boards of Directors, officers
and highly compensated employees. It
merely requires the organization to pro-
vide their names and addresses if it is so
organized.
11. Q. What is a “related entity” for this
purpose?
A. An entity is a “related entity” with-
in the meaning of § 168(h)(4), which pro-
vides that an organization is related to an-
other entity as follows:
(a) The two entities have (i) significant
common purposes and substantial
common membership or (ii) di-
rectly or indirectly substantial com-
mon direction or control; or
(b) Either entity owns (directly or
through one or more entities) a 50
percent or greater interest in the
capital or profits of the other. For
this purpose, entities treated as re-
lated entities under (a) above shall
be treated as one entity.
12. Q. What are “highly compensated
employees” for this purpose?
A. Highly compensated employees for
this purpose are the five employees (other
than officers and directors) who are ex-
pected to have the highest annual com-
pensation over $50,000. Compensation
includes both cash and noncash amounts,
whether paid currently or deferred, for the
12-month period that began with the date
the organization was formed (if the orga-
nization was formed after June 30, 2000).
If the organization was already in exis-
tence on June 30, 2000, it must use the ac-
counting period that includes July 1,
2000.
13. Q. What if an organization described
in § 527(e)(1) does not file the
Form 8871 notice?
A. An organization described in
§ 527(e)(1) must file Form 8871 unless it
is an organization described in § 527(i)(5)
or § 527(i)(6) (see Q&A-3). If the organi-
zation fails to file Form 8871 on a timely
basis, § 527(i)(4) provides that, for any
period during which the organization fails
to satisfy the notice requirement, the tax-
able income of the organization includes
its exempt function income (including
contributions received, membership dues,
and political fundraising receipts), minus
any deductions directly connected with
the production of that income. For pur-
poses of computing its taxable income,
the organization may not deduct its ex-
empt function expenditures because
§ 162(e) denies a deduction for political
campaign expenditures.
Under § 527(b), the tax is computed by
multiplying the organization’s taxable in-
come (including its net investment in-
come) by the highest corporate tax rate,
currently 35 percent. The organization
must file a Form 1120-POL to report the
income and pay the tax.
14. Q. When is an organization described
in § 527(e)(1)?
A. An organization is described in
§ 527(e)(1) if it meets both the organiza-
tional and operational tests, that is, it must
be organized and operated primarily for
the purpose of accepting contributions or
making expenditures for an exempt func-
tion under § 527(e)(2). See § 1.527–2(a).
15. Q. What is an “exempt function”
under § 527(e)(2)?
A. “Exempt function” means, under
§ 527(e)(2), influencing or attempting to
influence the selection, nomination, elec-
tion, or appointment of any individual to
any federal, state, or local public office or
office in a political organization, or the
election of Presidential or Vice-Presiden-
tial electors, whether or not such individ-
ual or electors are selected, nominated,
elected, or appointed.
16. Q. Is the Form 8871 notice publicly
available?
A. Yes. Under § 6104(d), Form 8871
(including any supporting papers), and
any letter or other document the Service
issues with regard to Form 8871, will be
open to public inspection. Copies of

August 28, 20002282000–35 I.R.B.
Form 8871 that have been filed are cur-
rently available at the IRS Web Site. In
addition, the organization is required to
make a copy of these materials available
for public inspection during regular busi-
ness hours at the organization’s principal
office and at each of its regional or district
offices having at least three paid employ-
ees in the same manner as applications for
exemption of § 501(c) organizations are
made available.
17. Q. What is the penalty on the organi-
zation for failure to comply with the
public inspection requirement?
A. Under § 6652(c)(1)(D), a penalty of
$20 per day will be imposed on any per-
son with a duty to comply with the public
inspection requirement for each day a
failure to comply continues.
II. Periodic Reporting Requirements
18. Q. What are the periodic reporting re-
quirements imposed upon political or-
ganizations?
A. Under § 527(j), a political organiza-
tion is required to periodically report con-
tributions to the organization and expen-
ditures made by the organization.
19. Q. What is the required periodic re-
porting form?
A. The required periodic reporting
form is Form 8872, Political Organization
Report of Contributions and Expendi-
tures.
20. Q. When are political organizations
required to file periodic reports on
Form 8872?
A. Under § 527(j)(2), political organi-
zations that accept contributions or make
expenditures for an exempt function
under § 527 (see Q&A-15) during a cal-
endar year are required to file periodic re-
ports on Form 8872, beginning with the
first month or quarter in which they ac-
cept contributions or make expenditures.
In addition, organizations that make con-
tributions or expenditures with respect to
an election for federal office (as defined
in § 527(j)(6)) may be required to file pre-
election reports for that election.
21. Q. Are all political organizations re-
quired to file periodic reports on
Form 8872?
A. No, § 527(j)(5) provides that some
organizations are not subject to this re-
quirement. The organizations excepted
from the filing requirements are as fol-
lows:
a) Organizations excepted from the re-
quirement to file a Form 8871 (see
Q&A-3);
b) Political committees of a state or
local candidate; and
c) State and local committees of politi-
cal parties.
All other political organizations, in-
cluding other state and local political or-
ganizations, are subject to the reporting
requirements of § 527(j), even if they file
reports with state or local election agen-
cies.
22. Q. How often must the Form 8872 be
filed?
A. Political organizations subject to
the periodic reporting requirement may
choose to file Form 8872 on a monthly
basis or on a quarterly/semi-annual basis,
but it must file on the same basis for the
entire calendar year.
23. Q. When is Form 8872 due in a non-
election year when organizations elect
to file on a monthly basis?
A. Pursuant to § 527(j)(2)(B), political
organizations that choose to file monthly
must file Form 8872 reports not later than
the 20th day after the end of the month,
which must be complete as of the last day
of the month. The monthly report for the
December activity is included in the year-
end report due not later than January 31 of
the following year. If any due date falls
on a Saturday, Sunday or legal holiday,
the organization may file the report on the
next business day.
24. Q. When is Form 8872 due during an
election year when organizations elect
to file on a monthly basis?
A. Pursuant to § 527(j)(2)(B), in any
year in which a regularly scheduled gen-
eral election is held, the organization shall
not file the reports regularly due in No-
vember and December (i.e., the monthly
reports for activity in October and No-
vember). Instead, the organization must
file a Form 8872 report not later than 12
days before the general election (or 15
days before the general election if posted
by registered or certified mail) that con-
tains information through the 20th day be-
fore the general election. The organiza-
tion must also file a report no more than
30 days after the general election which
shall contain information through the 20th
day after the election. The monthly report
for the December activity is included in
the year-end report due not later than Jan-
uary 31 of the following year. If any due
date falls on a Saturday, Sunday or legal
holiday, the organization may file the re-
port on the next business day.
25. Q. When is Form 8872 due in a non-
election year when organizations elect
to file on a quarterly/semi-annual
basis?
A. Pursuant to § 527(j)(2)(A), political
organizations that choose not to file
monthly must file semi-annual reports in
non-election years. These reports are due
not later than July 31 for the first half of
the year and, for the second half of the
year, not later than January 31 of the fol-
lowing year. If any due date falls on a
Saturday, Sunday or legal holiday, the or-
ganization may file the report on the next
business day.
26. Q. When is Form 8872 due during an
election year when organizations elect
to file on a quarterly/semi-annual
basis?
A. Pursuant to § 527(j)(2)(A), in an
election year, these organizations must
file quarterly reports due not later than the
15th day after the last day of the quarter,
except that the return for the final quarter
shall be due not later than January 31 of
the following year. In addition, the orga-
nization must file pre-election reports for
any election for federal office with re-
spect to which the organization makes a
contribution or expenditure. These re-
ports shall be filed not later than 12 days
before the election (15 days before if
posted by registered or certified mail) and
must contain information through the
20th day before the election. The organi-
zations must also file a post-general elec-
tion report due not later than 30 days after
the general election and containing infor-
mation through the 20th day after the
election. If any due date falls on a Satur-
day, Sunday or legal holiday, the organi-
zation may file the report on the next
business day.
27. Q. What is an election for purposes of
the reporting deadlines under
§ 527(j)?
A. For purposes of determining what
is an election year and what elections trig-
ger the pre-election and post-general elec-
tion reports, § 527(j)(6) provides that an
“election” is a general, special, primary,
or runoff election for a federal office; a
convention or caucus of a political party
with authority to nominate a candidate for

2000–35 I.R.B.229August 28, 2000
federal office; a primary election to select
delegates to a national nominating con-
vention of a political party; or a primary
election to express a preference for the
nomination of individuals for election to
the office of President. Thus, an election
for purpose of these reporting deadlines
does not include elections that are purely
state or local elections. When an election
involves both candidates for federal office
and candidates for state or local offices, it
is an election for purposes of the reporting
deadlines, but only those organizations
that make contributions or expenditures
with respect to the candidates for federal
office are required to file the pre-election
reports for those elections under
§ 527(j)(2)(A)(i)(II). However, all reports
filed under § 527(j) must contain informa-
tion about the contributions and expendi-
tures within the reporting period, regard-
less of whether they were accepted or
made with respect to candidates for fed-
eral, state or local office.
28. Q. What is a general election?
A. A general election is either one of
the following:
a) an election for federal office held in
even numbered years on the Tuesday
following the first Monday in No-
vember or
b) an election held to fill a vacancy in
a federal office (i.e., a special elec-
tion) that is intended to result in the
final selection of a single individual
to the office at stake. See 11 C.F.R.
100.2(b).
29. Q. How will “election” under
§ 527(j)(6) be interpreted?
A. The definition of “election” under
§ 527(j)(6) is virtually identical to the defi-
nition of “election” under FECA (2 U.S.C.
§ 431(1)). Organizations may rely on FEC
interpretation of the FECA definition in the
absence of further guidance from the Ser-
vice. The FEC publishes reporting dates
for pre-election reports on its Web Site at
http://www.fec.gov/pages/refer.htm.
30. Q. What must the Form 8872 reports
contain?
A. The reports must include the name,
address, and (if an individual) the occupa-
tion and employer, of any person to whom
expenditures are made that aggregate
$500 or more in a calendar year and the
amount of such expenditure. The reports
must also include the name, address, and
(if an individual) the occupation and em-
ployer, of any person that contributes in
the aggregate $200 or more in a calendar
year and the amount of such contribution.
However, organizations are not required
to report independent expenditures as de-
fined in § 301 of FECA. Only expendi-
tures made or contributions received after
July 1, 2000, that are not made or re-
ceived pursuant to binding contracts en-
tered into before July 2, 2000, must be re-
ported.
31. Q. What is an independent expendi-
ture under § 301 of FECA?
A. An independent expenditure is an
expenditure by a person expressly advo-
cating the election or defeat of a clearly
identified candidate for federal office
which is made without cooperation or
consultation with any candidate for fed-
eral office, or any authorized committee
or agent of such candidate, and which is
not made in concert with, or at the request
or suggestion of, any candidate for federal
office, or authorized committee or agent
of such candidate. See 2 U.S.C.
§ 431(17).
32. Q. Where is the Form 8872 filed?
A. The report is filed by sending a
signed copy of Form 8872 to the Internal
Revenue Service Center, Ogden, UT
84201. The form must be signed by an
official authorized by the organization to
sign the report.
33. Q. What if a political organization
does not file the required Form 8872?
A. Under § 527(j)(1), a political orga-
nization that does not file the required
Form 8872 or which fails to include the
information required on the Form 8872 is
subject to a tax equal to the amount not
disclosed multiplied by the highest corpo-
rate tax rate, currently 35 percent.
34. A. Is the Form 8872 filed by political
organizations publicly available?
A. Yes. Under § 6104(b) and
§ 6104(d)(6), Form 8872 will be made
available for public inspection by the Ser-
vice. In addition, under § 6104(d)(1)(A),
the organization is required to make a
copy of these reports available for public
inspection during regular business hours
at the organization’s principal office and
at each of its regional or district offices
having at least three paid employees in
the same manner as applications for ex-
emption of § 501(c) organizations are
made available. Pursuant to § 6104(b)
and § 6104(d)(3)(A), contributor informa-
tion must be disclosed to the public.
35. Q. What if the political organization
does not make its Form 8872 publicly
available?
A. Under § 6652(c)(1)(C), a penalty of
$20 per day will be imposed on any per-
son with a duty to comply with the public
inspection requirement for each day a
failure to comply continues. The maxi-
mum penalty that may be incurred for any
failure to disclose any one report is
$10,000.
III.Annual Return Requirements
36. Q. What political organizations are
required to file annual income tax re-
turns?
A. Political organizations that have
taxable income in excess of the $100 spe-
cific deduction allowed under § 527 are
required to file an annual income tax re-
turn, the Form 1120-POL. In addition, for
taxable years beginning after June 30,
2000, political organizations that have
$25,000 or more in gross receipts for the
taxable year are also required to file the
Form 1120-POL, without regard to
whether they have taxable income.
37. Q. When is the Form 1120-POL due?
A. The Form 1120-POL is due on or
before the 15th day of the third month
after the close of the organization’s tax-
able year. § 6072(b). Thus, for a calendar
year taxpayer, Form 1120-POL is due on
March 15 of the following year. If any
due date falls on a Saturday, Sunday or
legal holiday, the organization may file
the return on the next business day.
38. Q. What political organizations are
required to file an annual information
return?
A. Political organizations that are re-
quired under § 6012(a)(6) to file an in-
come tax return are also required to file
Form 990 for taxable years beginning
after June 30, 2000. § 6033(g). Organi-
zations with gross receipts less than
$100,000 and assets of less than $250,000
may file Form 990-EZ. Organizations
with gross receipts of less than $25,000
are not required to file Form 990 or
Form 990-EZ.
39. Q. When is the Form 990 due?
A. The Form 990 (or Form 990-EZ) is
due on or before the 15th day of the fifth
month after the close of the organization’s
taxable year. Thus, for a calendar year

taxpayer, Form 990 is due on May 15 of
the following year. If any due date falls
on a Saturday, Sunday or legal holiday,
the organization may file the return on the
next business day.
40. Q. What if the political organization
fails to file Form 1120-POL or
Form 990?
A. A political organization that fails to
file a required Form 1120-POL or
Form 900 or fails to include required in-
formation on those returns is subject to a
penalty of $20 per day for every day such
failure continues. The maximum penalty
imposed regarding any one return is the
lesser of $10,000 or 5 percent of the gross
receipts of the organization for the year.
In the case of an organization having
gross receipts exceeding $1,000,000 for
any year, the penalty is increased to $100
per day with a maximum penalty of
$50,000. § 6652(c)(1)(A).
41. Q . Are the Form 1120-POL and
Form 990 filed by political organiza-
tions publicly available?
A. Yes, the Form 1120-POL and the
Form 990 filed for taxable years begin-
ning after June 30, 2000 will be made
available for public inspection by the Ser-
vice. § 6104(b). The political organiza-
tion must make a copy of its returns avail-
able for public inspection during regular
business hours at its principal office and
any regional or district offices having
three employees or more in the same
manner as annual information returns of
§ 501(c) organizations are made avail-
able. It must also provide a copy of the
returns to any person requesting a copy in
person or in writing without charge other
than a reasonable charge for reproduction
and postage in the same manner that
§ 501(c) organizations provide copies of
their annual returns. § 6104(d)(1). If an
organization’s returns are widely avail-
able under § 301.6104(d)–3 of the Proce-
dure and Administration Regulations
(such as on the Internet), the organization
need not respond to requests for copies.
Returns only need to be made available
for three years after filing. § 6104(d)(2).
Contributor information must be dis-
closed to the public. § 6104(d)(3)(A).
42. Q. What if the political organization
does not make its Form 1120-POL
and Form 990 publicly available?
A. A penalty of $20 per day will be
imposed on any person with a duty to
comply with the public inspection re-
quirement for each day a failure to com-
ply continues. The maximum penalty that
may be incurred for any failure to disclose
any one report is $10,000. § 6652(c)-
(1)(C).
IV. General
43. Q. Where can organizations get
copies of the various forms?
A. The various forms (Form 8871,
Form 8872, Form 1120-POL, and
Form 990) and their instructions are avail-
able by calling 1-800-TAX-FORM (1-
800-829-3676) or via the Internet at the
IRS Web Site at www.irs.gov in the
“Forms and Publications” section. For
more information, organizations may call
the Customer Service Center at 1-877-
829-5500.
Consolidated Returns—
Limitations on the Use of Certain
Credits; Correction
Announcement 2000–73
AGENCY: Internal Revenue Service
(IRS), Treasury.
ACTION: Correction to final regula-
tions.
SUMMARY: This document contains a
correction to final regulations (T.D. 8884,
2000–24 I.R.B. 1250) that were published
in the Federal Register on Thursday, May
25, 2000 (65 F.R. 33753) relating to con-
solidated returns-limitations on the use of
certain credits.
DATES: This correction is effective May
25, 2000.
FOR FURTHER INFORMATION CON-
TACT: Marie C. Milnes-Vasquez (202)
622-7770 (not a toll-free number).
SUPPLEMENTARY INFORMATION:
Background
The final regulations that are the sub-
ject of this correction are under section
1502 of the Internal Revenue Code.
Need for Correction
As published, the final regulations con-
tain an error that may prove to be mis-
leading and are in need of clarification.
Correction of Publication
Accordingly, the publication of the
final regulations (T.D. 8884), that were
the subject of F.R. Doc. 00-11901, is cor-
rected as follows:
§1.1502–3 [Corrected]
On page 33758, column 1,
§1.1502–3(d)(5), paragraph (iv) of the
Example,line 6 from the bottom of the
paragraph, the language “contributions to
the consolidated section” is corrected to
read “contribution to the consolidated
section”.
LaNita Van Dyke,
Acting Chief, Regulations Unit
Office of Special Counsel
(Modernization and Strategic Planning).
(Filed by the Office of the Federal Register on Au-
gust 7, 2000, 8:45 a.m., and published in the issue
of the Federal Register for August 8, 2000, 65 F.R.
48379)
New Technologies in Retirement
Plans; Correction
Announcement 2000–74
AGENCY: Internal Revenue Service
(IRS), Treasury.
ACTION: Correction to final regulations.
SUMMARY: This document contains
corrections to final regulations, (T.D.
8873, 2000–9 I.R.B. 713) which were
published in the Federal Register Tues-
day, February 8, 2000 (65 F.R. 6001), re-
lating to amendments to the regulations
governing certain notices and consents re-
quired in connection with distributions
from retirement plans.
DATES: This correction is effective Feb-
ruary 8, 2000.
FOR FURTHER INFORMATION CON-
TACT: Catherine Livingston Fernandez
at (202) 622-6030 (not a toll-free num-
ber).
SUPPLEMENTARY INFORMATION:
Background
The final regulations that are subject to
these corrections are under sections
402(f), 411(a)(11) and 3405(e)(10)(B) of
the Internal Revenue Code.
August 28, 20002302000–35 I.R.B.

2000–35 I.R.B.231August 28, 2000
Need for Correction
As published, the final regulations (T.D.
8873) contain errors that may prove to be
misleading and are in need of clarification.
Correction of Publication
Accordingly, the publication of the
final regulations (T.D. 8873), which were
the subject of F.R. Doc. 00-1897, is cor-
rected as follows:
1. On page 6004, column 2, line 24
from the top of the column, the language
“I.R.B.) provides that, pending” is cor-
rected to read “I.R.B. 413) provides that,
pending”.
Sec. 35.3405–1 [Corrected]
2. On page 6008, column 1, Sec.
35.3405–1 d-35, lines 4 and 5 of A, the
language, “and the annual notice de-
scribed in d-31) to a payee either on a
written paper” is corrected to read “of
Sec. 35.3405–1T and the annual notice
described in d-31 of Sec. 35.3405–1T) to
a payee either on a written paper”.
3. On page 6008, column 2, Sec.
35.3405–1 d-36 A., the first line of Example
5, the language, “Example 5. (I) Same facts
as Example 1,” is corrected to read “Exam-
ple 5. (i) Same facts as Example 1,’’.
4. On page 6008, column 2, Sec.
35.3405–1 d-36A., the first line of Exam-
ple 5 (ii), the language, “(ii) In this Exam-
ple 5, Plan A does not” is corrected to
read “(ii) In this Example 5, the plan ad-
ministrator does not”.
Sec. 602.101 [Corrected]
5. On page 6008, column 3, instruc-
tional Par. 7. and the table in Sec.
602.101(b) are corrected to read as fol-
lows:
Par. 7. In Sec. 602.101, paragraph (b) is
amended by revising the entries for
1.402(f)–1 and 1.411(a)–11 in the table to
read as follows:
Sec. 602.101 OMB Control numbers.
* * * * *
(b) * * *
Dale D. Goode,
Federal Register Liaison,
Assistant Chief Counsel (Corporate).
(Filed by the Office of the Federal Register on March
30, 2000, 8:45 a.m., and published in the issue of the
Federal Register for March 31, 2000, 65 F.R. 17148)
CFR part or section where Current OMB
identified and describedcontrol No.
* * * * *
1.402(f)–1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1545-1341
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1545-1632
* * * * *
1.411(a)–11 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1545-1471
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1545-1632
* * * * *

August 28, 20002322000–35 I.R.B.
Under 31 Code of Federal Regulations,
Part 10, an attorney, certified public ac-
countant, enrolled agent or enrolled actu-
ary, 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
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 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:
Announcement of the Consent Voluntary Suspension of Attorneys,
Certified Public Accountants, Enrolled Agents, and Enrolled Actuaries
From Practice Before the Internal Revenue Service
Date of
NameAddressDesignationSuspension
Stoppenhagen, Larry Ft. Wayne, INCPAApril 14, 2000
to
April 13, 2001
Chon, James N. Hollywood, CACPAMay 22, 2000
to
May 21, 2003
Bleyer, Stephen A.Bala Cynwyd, PACPAJune 26, 2000
to
December 25, 2000
Knutson, OwenOuray, COCPAJuly 3, 2000
to
January 2, 2003
Silverman, Richard E.Fayetteville, NYCPAAugust 1, 2000
to
March 31, 2004
Holt, JeffreyLittle Rock, AREnrolledOctober 1, 2000
Agentto
March 31, 2003
Barbagallo, JosephNewton, PACPAOctober 15, 2000
to
October 14, 2004

2000–35 I.R.B.233August 28, 2000
Under Section 330, Title 31 of the
United States Code, the Secretary of the
Treasury, after due notice and opportunity
for hearing, is authorized to suspend or
disbar from practice before the Internal
Revenue Service any person who has vio-
lated the rules and regulations governing
the recognition of attorneys, certified
public accountants, enrolled agents or en-
rolled actuaries to practice before the In-
ternal Revenue Service.
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 under suspension
from practice 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 Prac-
tice will announce in the Internal Revenue
Bulletin the names and addresses of prac-
titioners who have been suspended from
such practice, their designation as attor-
ney, certified public accountant, enrolled
agent or enrolled actuary, and the date of
disbarment or period of suspension. This
announcement will appear in the weekly
Bulletin for five successive weeks or as
long as it is practicable for each attorney,
certified public accountant, enrolled agent
or enrolled actuary so suspended or dis-
barred and will be consolidated and pub-
lished in the Cumulative Bulletin.
After due notice and opportunity for
hearing before an administrative law
judge, the following individuals has been
disbarred from further practice before the
Internal Revenue Service:
Announcement of the Disbarment and Suspension of Attorneys,
Certified Public Accountants, Enrolled Agents, and Enrolled Actuaries
From Practice Before the Internal Revenue Service
NameAddressDesignation Effective Date
Luebben, WilliamHot Springs, AR CPAFebruary 11, 2000
Section 7428(c) Validation of
Certain Contributions Made
During Pendency of Declaratory
Judgment Proceedings
This announcement serves notice to po-
tential donors that the organization listed
below has recently filed a timely declara-
tory judgment suit under section 7428 of
the Code, challenging revocation of its
status as an eligible donee under section
170(c)(2).
Protection under section 7428(c) of the
Code begins on the date that the notice of
revocation is published in the Internal
Revenue Bulletin and ends on the date on
which a court first determines that an or-
ganization is not described in section
170(c)(2), as more particularly set forth in
section 7428(c)(1). In the case of individ-
ual contributors, the maximum amount of
contributions protected during this period
is limited to $1,000.00, with a husband
and wife being treated as one contributor.
This protection is not extended to any in-
dividual who was responsible, in whole or
in part, for the acts or omissions of the or-
ganization that were the basis for the re-
vocation. This protection also applies
(but without limitation as to amount) to
organizations described in section
170(c)(2) which are exempt from tax
under section 501(a). If the organization
ultimately prevails in its declaratory judg-
ment suit, deductibility of contributions
would be subject to the normal limitations
set forth under section 170.
Living Truth Ministries
Austin, TX

August 28, 2000i2000–35 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 Procedural Rules.
Stat.—Statutes at Large.
T—Target Corporation.
T.C.—Tax Court.
T.D.—Treasury Decision.
TFE—Transferee.
TFR—Transferor.
T.I.R.—Technical Information Release.
TP—Taxpayer.
TR—Trust.
TT—Trustee.
U.S.C.—United States Code.
X—Corporation.
Y—Corporation.
Z—Corporation.
Definition of Terms

2000–35 I.R.B.iiAugust 28, 2000
Numerical Finding List
1
Bulletins 2000–27 through 2000–34
Announcements:
2000–57, 2000–28 I.R.B. 115
2000–58, 2000–30 I.R.B. 135
2000–59, 2000–29 I.R.B. 120
2000–60, 2000–31 I.R.B. 149
2000–61, 2000–30 I.R.B. 136
2000–62, 2000–30 I.R.B. 137
2000–63, 2000–31 I.R.B. 149
2000–64, 2000–31 I.R.B. 149
2000–65, 2000–31 I.R.B. 150
2000–66, 2000–32 I.R.B. 160
2000–67, 2000–32 I.R.B. 160
2000–68, 2000–32 I.R.B. 161
2000–69, 2000–33 I.R.B. 183
2000–70, 2000–34 I.R.B. 204
Court Decisions:
2068, 2000–28 I.R.B. 109
Notices:
2000–33, 2000–27 I.R.B. 97
2000–34, 2000–33 I.R.B. 172
2000–35, 2000–29 I.R.B. 118
2000–36, 2000–33 I.R.B. 173
2000–37, 2000–29 I.R.B. 118
2000–38, 2000–33 I.R.B. 174
2000–39, 2000–30 I.R.B. 132
2000–40, 2000–30 I.R.B. 134
2000–41, 2000–33 I.R.B. 177
Proposed Regulations:
REG–209038–89, 2000–34 I.R.B. 191
REG–105316–98, 2000–27 I.R.B. 98
REG–116495–99, 2000–33 I.R.B. 179
REG–108522–00, 2000–34 I.R.B. 187
Railroad Retirement Quarterly Rate:
2000–28, I.R.B. 112
2000–29, I.R.B. 117
Revenue Procedures:
2000–28, 2000–27 I.R.B. 60
2000–29, 2000–28 I.R.B. 113
2000–30, 2000–28 I.R.B. 113
2000–31, 2000–31 I.R.B. 146
2000–32, 2000–33 I.R.B. 172
2000–34, 2000–34 I.R.B. 186
Revenue Rulings:
2000–32, 2000–27 I.R.B. 1
2000–33, 2000–31 I.R.B. 142
2000–34, 2000–29 I.R.B. 116
2000–35, 2000–31 I.R.B. 138
2000–36, 2000–31 I.R.B. 140
2000–37, 2000–32 I.R.B. 156
2000–38, 2000–32 I.R.B. 157
2000–39, 2000–34 I.R.B. 184
Treasury Decisions:
8886, 2000–27 I.R.B. 3
8888, 2000–27 I.R.B. 3
8889, 2000–30 I.R.B. 124
8890, 2000–30 I.R.B. 122
8891, 2000–32 I.R.B. 152
8892, 2000–32 I.R.B. 158
8893, 2000–31 I.R.B. 143
8894, 2000–33 I.R.B. 162
1
A cumulative list of all revenue rulings, revenue
procedures, Treasury decisions, etc., published in
Internal Revenue Bulletins 2000–1 through 2000–26
is in Internal Revenue Bulletin 2000–27, dated July
3, 2000.

August 28, 2000iii2000–35 I.R.B.
Finding List of Current Actions on
Previously Published Items
1
Bulletins 2000–27 through 2000–34
Proposed Regulations:
FI–42–90
Withdrawn by
Announcement 2000–63, 2000–31 I.R.B. 149
IA–38–93
Withdrawn by
Announcement 2000–68, 2000–32 I.R.B. 161
REG–107644–98
Corrected by
Announcement 2000–66, 2000–32 I.R.B. 160
Revenue Procedures:
98–50
Modified and superseded by
Rev. Proc. 2000–31, 2000–31 I.R.B. 146
98–51
Modified and superseded by
Rev. Proc. 2000–31, 2000–31 I.R.B. 146
99–18
Modified by
Rev. Proc. 2000–29, 2000–28 I.R.B. 113
99–34
Superseded by
Rev. Proc. 2000–28, 2000–27 I.R.B. 60
Treasury Decisions:
8883
Corrected by
Announcement 2000–57, 2000–28 I.R.B. 115
1
A cumulative list of current actions on previously
published items in Internal Revenue Bulletins
2000–1 through 2000–26 is in Internal Revenue
Bulletin 2000–27, dated July 3, 2000.

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