Internal Revenue Bulletin 1997-36 (PDF rendition): IRS Revenue Rulings

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

SPECIAL ANNOUNCEMENT
Announcement 97–95, page 12.
This announcement changes the location of the public hear-
ing that will be held on October 28, 1997, on proposed reg-
ulations (REG–107644–97, 1997–32 I.R.B. 24) that would
permit an amendment to a qualified plan that eliminates cer-
tain preretirement optional forms of benefit.
INCOME TAX
Rev. Rul. 97–36, page 5.
Federal rates; adjusted federal rates; adjusted feder-
al long-term rate, and the long-term exempt rate. For
purposes of sections 1274, 1288, 382, and other sections
of the Code, tables set forth the rates for September 1997.
T.D. 8724, page 4.
Final regulations under section 1059 of the Code relate to
extraordinary dividends.
Notice 97–49, page 8.
Electing Small Business Trust (ESBT) and qualification
and treatment of distributions. This notice clarifies the
definitions of beneficiary and potential current beneficiary. It
also clarifies the treatment of ESBT distributions.
EMPLOYEE PLANS
Announcement 97–89, page 10.
Beginning October 1, 1997, requests for employee plan
determination letters and applications for recognition of tax
exemption, formerly sent to the district office in Brooklyn,
New York, should be sent to the Internal Revenue Service
Center in Covington, Kentucky.
EXEMPT ORGANIZATIONS
Announcement 97–89, page 10.
Beginning October 1, 1997, requests for employee plan
determination letters and applications for recognition of tax
exemption, formerly sent to the district office in Brooklyn,
New York, should be sent to the Internal Revenue Service
Center in Covington, Kentucky.
Announcement 97–90, page 10.
A list is given of organizations now classified as private foun-
dations.
ADMINISTRATIVE
Announcement 97–93, page 11.
REG–252487–96, 1997–25 I.R.B. 9, relating to the appli-
cation of the grantor trust rules to certain trusts estab-
lished by foreign persons, is corrected.
Announcement 97–94, page 12.
This announcement contains additional corrections to the
corrected version of REG–252487–96, shown in Announce-
ment 97–93, on page 11 of this Bulletin.
Internal Revenue
bbuulllleettiinn
Bulletin No. 1997–36
September 8, 1997
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 14.

Mission of the Service
The purpose of the Internal Revenue Service is to collect
the proper amount of tax revenue at the least cost; serve
the public by continually improving the quality of our prod-
ucts and services; and perform in a manner warranting
the highest degree of public confidence in our integrity, effi-
ciency, and fairness.
2
Statement of Principles
of Internal Revenue
Tax Administration
The function of the Internal Revenue Service is to adminis-
ter the Internal Revenue Code. Tax policy for raising revenue
is determined by Congress.
With this in mind, it is the duty of the Service to carry out that
policy by correctly applying the laws enacted by Congress;
to determine the reasonable meaning of various Code provi-
sions in light of the Congressional purpose in enacting them;
and to perform this work in a fair and impartial manner, with
neither a government nor a taxpayer point of view.
At the heart of administration is interpretation of the Code. It
is the responsibility of each person in the Service, charged
with the duty of interpreting the law, to try to find the true
meaning of the statutory provision and not to adopt a
strained construction in the belief that he or she is “protect-
ing the revenue.” The revenue is properly protected only
when we ascertain and apply the true meaning of the statute.
The Service also has the responsibility of applying and
administering the law in a reasonable, practical manner.
Issues should only be raised by examining officers when
they have merit, never arbitrarily or for trading purposes.
At the same time, the examining officer should never hesi-
tate to raise a meritorious issue. It is also important that
care be exercised not to raise an issue or to ask a court to
adopt a position inconsistent with an established Service
position.
Administration should be both reasonable and vigorous. It
should be conducted with as little delay as possible and
with great courtesy and considerateness. It should never
try to overreach, and should be reasonable within the
bounds of law and sound administration. It should, howev-
er, be vigorous in requiring compliance with law and it
should be relentless in its attack on unreal tax devices and
fraud.

The Internal Revenue Bulletin is the authoritative instrument
of the Commissioner of Internal Revenue for announcing offi-
cial rulings and procedures of the Internal Revenue Service
and for publishing Treasury Decisions, Executive Orders, Tax
Conventions, legislation, court decisions, and other items of
general interest. It is published weekly and may be obtained
from the Superintendent of Documents on a subscription
basis. Bulletin contents of a permanent nature are consoli-
dated semiannually into Cumulative Bulletins, which are sold
on a single-copy basis.
It is the policy of the Service to publish in the Bulletin all sub-
stantive rulings necessary to promote a uniform application
of the tax laws, including all rulings that supersede, revoke,
modify, or amend any of those previously published in the
Bulletin. All published rulings apply retroactively unless other-
wise indicated. Procedures relating solely to matters of in-
ternal management are not published; however, statements
of internal practices and procedures that affect the rights
and duties of taxpayers are published.
Revenue rulings represent the conclusions of the Service on
the application of the law to the pivotal facts stated in the
revenue ruling. In those based on positions taken in rulings
to taxpayers or technical advice to Service field offices,
identifying details and information of a confidential nature
are deleted to prevent unwarranted invasions of privacy and
to comply with statutory requirements.
Rulings and procedures reported in the Bulletin do not have
the force and effect of Treasury Department Regulations,
but they may be used as precedents. Unpublished rulings
will not be relied on, used, or cited as precedents by Service
personnel in the disposition of other cases. In applying pub-
lished rulings and procedures, the effect of subsequent leg-
islation, regulations, court decisions, rulings, and proce-
dures must be considered, and Service personnel and oth-
ers concerned are cautioned against reaching the same con-
clusions in other cases unless the facts and circumstances
are substantially the same.
The Bulletin is divided into four parts as follows:
Part I.—1986 Code.
This part includes rulings and decisions based on provisions
of the Internal Revenue Code of 1986.
Part II.—Treaties and Tax Legislation.
This part is divided into two subparts as follows: Subpart A,
Tax Conventions, and Subpart B, Legislation and Related
Committee Reports.
Part III.—Administrative, Procedural, and Miscellaneous.
To the extent practicable, pertinent cross references to
these subjects are contained in the other Parts and Sub-
parts. Also included in this part are Bank Secrecy Act Admin-
istrative Rulings. Bank Secrecy Act Administrative Rulings
are issued by the Department of the Treasury’s Office of the
Assistant Secretary (Enforcement).
Part IV.—Items of General Interest.
With the exception of the Notice of Proposed Rulemaking
and the disbarment and suspension list included in this part,
none of these announcements are consolidated in the Cumu-
lative Bulletins.
The first Bulletin for each month includes a cumulative index
for the matters published during the preceding months.
These monthly indexes are cumulated on a quarterly and
semiannual basis, and are published in the first Bulletin of the
succeeding quarterly and semiannual period, respectively.
3
Introduction
The contents of this publication are not copyrighted and may be reprinted freely. Acitation of the Internal Revenue Bulletin as the source would be appropriate.
For sale by the Superintendent of Documents, U.S. Government Printing Office, Washington, DC 20402.

September 8, 199741997–36 I.R.B.
Section 42.—Low Income
Housing Credit
The adjusted applicable federal short-term, mid-
term, and long-term rates are set forth for the month
of September 1997. See Rev. Rul. 97–36, page 5.
Section 280G.—Golden
Parachute Payments
Federal short-term, mid-term, and long-term
rates are set forth for the month of September 1997.
See Rev. Rul. 97–36, page 5.
Section 382.—Limitation on Net
Operating Loss Carryforwards
and Certain Built-In Losses
Following Ownership Change
The adjusted federal long-term rate is set forth
for the month of September 1997. See Rev. Rul.
97–36, page 5.
Section 412.—Minimum
Funding Standards
The adjusted applicable federal short-term, mid-
term, and long-term rates are set forth for the month
of September 1997. See Rev. Rul. 97–36, page 5.
Section 467.—Certain
Payments for the Use of
Property or Services
The adjusted applicable federal short-term, mid-
term, and long-term rates are set forth for the month
of September 1997. See Rev. Rul. 97–36, page 5.
Section 468.—Special Rules for
Mining and Solid Waste
Reclamation and Closing
Costs
The adjusted applicable federal short-term, mid-
term, and long-term rates are set forth for the month
of September 1997. See Rev. Rul. 97–36, page 5.
Section 483.—Interest on
Certain Deferred Payments
The adjusted applicable federal short-term, mid-
term, and long-term rates are set forth for the month
of September 1997. See Rev. Rul. 97–36, page 5.
Section 641.—Imposition of Tax
How are electing small business trust distribu-
tions treated under section 641(d)? See Notice
97–49, page 8.
Section 807.—Rules for Certain
Reserves
The adjusted applicable federal short-term, mid-
term, and long-term rates are set forth for the month
of September 1997. See Rev. Rul. 97–36, page 5.
Section 846.—Discounted
Unpaid Losses Defined
The adjusted applicable federal short-term, mid-
term, and long-term rates are set forth for the month
of September 1997. See Rev. Rul. 97–36, page 5.
Section 1059.—Corporate
Shareholder’s Basis in Stock
Reduced by Nontaxed Portion
of Extraordinary Dividends
26 CFR 1.1059(e)–1: Non-pro rata redemptions.
T.D. 8724
DEPARTMENT OF THE TREASURY
Internal Revenue Service
26 CFR Part 1
Section 1059 Extraordinary
Dividends
AGENCY: Internal Revenue Service
(IRS), Treasury.
ACTION: Final regulations.
SUMMARY: This document contains
final regulations under section 1059(e) of
the Internal Revenue Code. The final reg-
ulations clarify that certain distributions
in redemption of stock held by a corporate
shareholder are treated as extraordinary
dividends notwithstanding provisions that
otherwise might exempt the distributions
from extraordinary dividend treatment.
Corporations that receive a distribution in
redemption of stock may be affected if the
redemption is either part of a partial liqui-
dation of the redeeming corporation or is
not pro rata as to all shareholders. The
final regulations also provide that section
1059(e)(1) applies to certain exchanges
described in section 356.
DATES: This regulation is effective July
16, 1997.
For date of applicability, see
§1.1059(e)–1(c).
FOR FURTHER INFORMATION CON-
TACT: Richard K. Passales, (202) 622-
7530 (not a toll-free number).
SUPPLEMENTARYINFORMATION:
Background
On June 18, 1996, the IRS published in
the Federal Registera notice of proposed
rulemaking (CO–9–96), 61 F.R. 30845,
concerning certain distributions under
section 1059(e)(1) of the Internal Rev-
enue Code. The proposed rules were
based on the conclusion that applying the
exceptions to extraordinary dividend
treatment found in sections 1059(d)(6)
and (e)(2) to amounts treated as extraordi-
nary dividends under section 1059(e)(1)
is inconsistent with the purposes of sec-
tion 1059 and may create inappropriate
consequences, such as basis shifting that
eliminates gain or creates artificial loss.
The IRS received a few comments on
the proposed regulations. No one re-
quested to speak at the public hearing.
After consideration of all the comments,
the regulations are adopted as revised by
this Treasury decision. The revisions and
significant comments are discussed
below.
Explanation of Revisions
Section 1.1059(e)–1(b) of the proposed
regulations provides that for purposes of
section 1059(e)(1), an exchange under
section 356(a)(1) is treated as a redemp-
tion and, to the extent any amount is
treated as a dividend under section
356(a)(2), it is treated as a dividend under
section 301. One practitioner questioned
whether §1.1059(e)–1(b) applies to ex-
changes for section 306 stock that are
treated as section 301 distributions under
section 356(e). The final regulations clar-
ify that for purposes of section
1059(e)(1), all exchanges under section
Part I. Rulings and Decisions Under the Internal Revenue Code of 1986

356 are treated as redemptions and all
amounts treated as a dividend under sec-
tion 356(a)(2) are treated as dividends
under section 301. Accordingly, the final
regulations delete the reference to subsec-
tion (a)(1) of section 356.
Special Analyses
It has been determined that this Trea-
sury decision is not a significant regula-
tory action as defined in EO 12866.
Therefore, a regulatory assessment is not
required. It also has been determined that
section 553(b) of the Administrative Pro-
cedure Act (5 U.S.C. chapter 5) does not
apply to these regulations, and because
the regulation does not impose a collec-
tion of information on small entities, the
Regulatory Flexibility Act (5 U.S.C.
chapter 6) does not apply. Pursuant to
section 7805(f) of the Internal Revenue
Code, the notice of proposed rulemaking
preceding these regulations was submit-
ted to the Chief Counsel for Advocacy of
the Small Business Administration for
comment on its impact on small business.
Drafting Information
The principal author of these regula-
tions is Richard K. Passales, Office of As-
sistant Chief Counsel (Corporate), IRS.
However, other personnel from the IRS
and Treasury Department participated in
their development.
* * * * *
Adoption of Amendments to the Regulations
Accordingly, 26 CFR part 1 is amended
as follows:
PART1—INCOME TAXES
Paragraph 1. The authority citation for
part 1 is amended by adding an entry in
numerical order to read as follows:
Authority: 26 U.S.C. 7805 * * *
Section 1.1059(e)–1 also issued under 26
U.S.C. 1059(e)(1) and (e)(2). * * *
Par. 2. In §1.302–2, paragraph (c) in-
troductory text is amended by adding a
sentence immediately following the first
sentence to read as follows:
§1.302–2 Redemptions not taxable as
dividends.
* * * * *
(c) * * * (For adjustments to basis re-
quired for certain redemptions of corpo-
rate shareholders that are treated as extra-
ordinary dividends, see section 1059 and
the regulations thereunder.) * * *
* * * * *
Par. 3. Section 1.1059(e)–1 is added to
read as follows:
§1.1059(e)–1 Non-pro rata redemptions.
(a) In general. Section 1059(d)(6) (ex-
ception where stock held during entire ex-
istence of corporation) and section
1059(e)(2) (qualifying dividends) do not
apply to any distribution treated as an ex-
traordinary dividend under section
1059(e)(1). For example, if a redemption
of stock is not pro rata as to all sharehold-
ers, any amount treated as a dividend
under section 301 is treated as an extraor-
dinary dividend regardless of whether the
dividend is a qualifying dividend.
(b) Reorganizations. For purposes of
section 1059(e)(1), any exchange under
section 356 is treated as a redemption
and, to the extent any amount is treated as
a dividend under section 356(a)(2), it is
treated as a dividend under section 301.
(c) Effective date. This section applies
to distributions announced (within the
meaning of section 1059(d)(5)) on or after
June 17, 1996.
Michael P. Dolan,
Acting Commissioner of
Internal Revenue.
Approved June 27, 1997.
Donald C. Lubick,
Acting Assistant Secretary of
the Treasury.
(Filed by the Office of the Federal Register on July
15, 1997, 8:45 a.m., and published in the issue of the
Federal Register for July 16, 1997, 62 F.R. 38027)
Section 1274.—Determination
of Issue Price in the Case of
Certain Debt Instruments Issued
for Property
(Also Sections 42, 280G, 382, 412, 467, 468, 482,
483, 642, 807, 846, 1288, 7520, 7872.)
Federal rates; adjusted federal rates;
adjusted federal long-term rate, and
the long-term exempt rate. For purposes
of section 1274, 1288, 382, and other sec-
tions of the Code, tables set forth the rates
for September 1997.
Rev. Rul. 97–36
This revenue ruling provides various
prescribed rates for federal income tax
purposes for September 1997 (the current
month.) Table 1 contains the short-term,
mid-term, and long-term applicable fed-
eral rates (AFR) for the current month for
purposes of section 1274(d) of the Inter-
nal Revenue Code. Table 2 contains the
short-term, mid-term, and long-term ad-
justed applicable federal rates (adjusted
AFR) for the current month for purposes
of section 1288(b). Table 3 sets forth the
adjusted federal long-term rate and the
long-term tax-exempt rate described in
section 382(f). Table 4 contains the ap-
propriate percentages for determining the
low-income housing credit described in
section 42(b)(2) for buildings placed in
service during the current month. Finally,
Table 5 contains the federal rate for deter-
mining the present value of an annuity, an
interest for life or for a term of years, or a
remainder or a reversionary interest for
purposes of section 7520.
1997–36 I.R.B.5September 8, 1997

REV. RUL. 97–36 TABLE 1
Applicable Federal Rates (AFR) for September 1997
Period for Compounding
AnnualSemiannualQuarterlyMonthly
Short-Term
AFR5.81%5.73%5.69%5.66%
110% AFR6.40%6.30%6.25%6.22%
120% AFR7.00%6.88%6.82%6.78%
130% AFR7.59%7.45%7.38%7.34%
Mid-Term
AFR6.23%6.14%6.09%6.06%
110% AFR6.86%6.75%6.69%6.66%
120% AFR7.51%7.37%7.30%7.26%
130% AFR8.14%7.98%7.90%7.85%
150% AFR9.42%9.21%9.11%9.04%
175% AFR11.04%10.75%10.61%10.52%
Long-Term
AFR6.55%6.45%6.40%6.36%
110% AFR7.23%7.10%7.04%7.00%
120% AFR7.89%7.74%7.67%7.62%
130% AFR8.57%8.39%8.30%8.25%
September 8, 199761997–36 I.R.B.
REV. RUL. 97–36 TABLE 2
Adjusted AFR for September 1997
Period for Compounding
AnnualSemiannualQuarterlyMonthly
Short-term
adjusted AFR3.94%3.90%3.88%3.87%
Mid-term
adjusted AFR4.28%4.24%4.22%4.20%
Long-term
adjusted AFR5.09%5.03%5.00%4.98%
REV. RUL. 97–36 TABLE 3
Rates Under Section 382 for September 1997
Adjusted federal long-term rate for the current month5.09%
Long-term tax-exempt rate for ownership changes during the current month (the highest of the
adjusted federal long-term rates for the current month and the prior two months.)5.45%

1997–36 I.R.B.7September 8, 1997
REV. RUL. 97–36 TABLE 5
Rate Under Section 7520 for September 1997
Applicable federal rate for determining the present value of an annuity, an interest for life or a
term of years, or a remainder or reversionary interest7.6%
REV. RUL. 97–36 TABLE 4
Appropriate Percentages Under Section 42(b)(2) for September 1997
Appropriate percentage for the 70% present value low-income housing credit8.50%
Appropriate percentage for the 30% present value low-income housing credit3.64%
Section 1288.—Treatment of
Original Issue Discount on Tax-
Exempt Obligations
The adjusted applicable federal short-term, mid-
term, and long-term rates are set forth for the month
of September 1997. See Rev. Rul. 97–36, page 5.
Section 7520.—Valuation
Tables
The adjusted applicable federal short-term,
mid-term, and long-term rates are set forth for the
month of September 1997. See Rev. Rul. 97–36,
page 5.
Section 7872.—Treatment of
Loans With Below-Market
Interest Rates
The adjusted applicable federal short-term, mid-
term, and long-term rates are set forth for the month
of September 1997. See Rev. Rul. 97–36, page 5.

Electing Small Business Trusts
Notice 97–49
BACKGROUND
Section 1302 of the Small Business Job
Protection Act of 1996, Pub. L. No.
104–188, 110 Stat. 1755 (1996), amended
§ 1361 of the Internal Revenue Code to
permit an electing small business trust
(ESBT) to be a shareholder of an S corpo-
ration. This notice provides guidance re-
garding the definitions of beneficiary and
potential current beneficiary under §§
1361(e)(1)(A)(i) and 1361(e)(2) respec-
tively, and the ordering of ESBTdistribu-
tions under § 641(d).
Only a corporation that meets the defi-
nition of a small business corporation
may be an S corporation. To be a small
business corporation, the corporation may
have as shareholders only those persons
permitted by § 1361(b)(1), including
trusts described in § 1361(c)(2). Section
1361(c)(2) contains two separate provi-
sions. The first provision is a requirement
that the trust holding stock in the corpora-
tion must be a trust listed in §
1361(c)(2)(A) (e.g., ESBT, qualified sub-
chapter S trust, etc.). Under the second
provision, the respective persons listed in
§ 1361(c)(2)(B) are treated as sharehold-
ers of the S corporation for purposes of
the shareholder restrictions under §
1361(b)(1). To qualify as an ESBT(an el-
igible trust under § 1361(c)(2)(A)(v)), a
trust must meet the requirements set forth
in § 1361(e)(1) (including the limitation
on the types of beneficiaries). Pursuant to
§ 1361(c)(2)(B)(v), the ESBT’s potential
current beneficiaries (as defined in §
1361(e)(2)) must be qualifying sharehold-
ers of the S corporation for purposes of §
1361(b)(1).
As used in this notice, the term “dis-
tributee trust” means a trust that is receiv-
ing or may receive a distribution from an
intended ESBT, whether the rights to re-
ceive the distribution are fixed or contin-
gent, or immediate or deferred.
ESBTBENEFICIARIES
Section 1361(e)(1)(A)(i) provides that an
ESBTmay not have as a beneficiary any
person other than (I) an individual, (II) an
estate, or (III) an organization described
in paragraph (2), (3), (4), or (5) of section
170(c), which holds a contingent interest
and is not a potential current beneficiary.
For tax years beginning after December
31, 1997, the clause “which holds a con-
tingent interest and is not a potential cur-
rent beneficiary” is deleted. Section
1361(e) does not provide a specific defin-
ition of the term “beneficiary”.
Solely for purposes of section
1361(e)(1)(A)(i), the following rules
apply in defining the term “beneficiary”:
1. The term “beneficiary” does not in-
clude a distributee trust (other than a trust
described in paragraphs (2) or (3) of §
170(c)), but does include those persons
who have a beneficial interest in the prop-
erty held by the distributee trust. For ex-
ample, an intended ESBT’s governing in-
strument provides for discretionary
distributions of income or principal to A
for life, and upon A’s death the division of
the remainder into separate trusts for the
benefit of A’s children. For purposes of §
1361(e)(1)(A)(i), the beneficiaries of the
intended ESBTare Aand A’s children,
and not the separate trusts for the benefit
of A’s children. Therefore, because all the
beneficiaries of the intended ESBTare in-
dividuals, the intended ESBTmeets the
requirements of § 1361(e)(1)(A)(i).
2. The term “beneficiary” does not in-
clude a person in whose favor a power of
appointment could be exercised. Such a
person becomes a beneficiary only when
the holder of the power of appointment
actually exercises the power of appoint-
ment in such person’s favor.
3. The term “beneficiary” does not in-
clude a person whose contingent interest
is so remote as to be negligible. For ex-
ample, except in unusual circumstances,
the contingent interest a State has under
its laws pertaining to escheat would be
considered negligible, and the State
would not be considered a beneficiary of
the intended ESBT.
ESBTPOTENTIALCURRENT
BENEFICIARIES
Section 1361(c)(2)(B)(v) provides that
each potential current beneficiary of an
ESBTshall be treated as a shareholder for
purposes of determining whether a corpo-
ration qualifies as a small business corpo-
ration, except that the trust is treated as
the shareholder for any period in which
there is no potential current beneficiary.
Section 1361(e)(2) provides that, for
purposes of § 1361, the term “potential
current beneficiary” means, with respect
to any period, any person who at any time
during such period is entitled to, or at the
discretion of any person may receive, a
distribution from the principal or income
of the trust. Section 7701(a)(1) defines
person to include a trust for all purposes
of the Code where not otherwise dis-
tinctly expressed or manifestly incompati-
ble with the intent of the specific provi-
sion.
For purposes of § 1361, the following
rules apply in defining the term “potential
current beneficiary”:
1. If a distributee trust becomes entitled
to, or at the discretion of any person may
receive, a distribution from principal or
income of the intended ESBT, then the S
corporation election will terminate unless
the distributee trust is a trust described in
§ 1361(c)(2)(A) (e.g., ESBT, qualified
subchapter S trust, etc.). In addition, if
the distributee trust is a trust described in
§ 1361(c)(2)(A), the persons described in
§ 1361(c)(2)(B) are treated as sharehold-
ers of the corporation for purposes of de-
termining whether the shareholder restric-
tions under § 1361(b)(1) are met. In the
above example involving the distributee
trusts for A’s children, the distributee
trusts for A’s children will become enti-
tled to receive distributions from the
ESBTupon A’s death. At such time, the S
corporation election will terminate unless
(i) the distributee trusts are trusts de-
scribed in § 1361(c)(2)(A), and (ii) the
persons described in § 1361(c)(2)(B),
with respect to the distributee trusts, sat-
isfy the shareholder restrictions in §
1361(b)(1). If, for example, the distribu-
tee trusts are qualified subchapter S trusts,
and A’s children are the current income
beneficiaries, A’s children are treated as
shareholders of the corporation for pur-
poses of satisfying the shareholder restric-
tions under § 1361(b)(1).
2. Aperson who is entitled to receive a
distribution only after a specified time or
upon the occurrence of a specified event
September 8, 199781997–36 I.R.B.
Part III. Administrative, Procedural, and Miscellaneous

(such as the death of the holder of the
power of appointment) is not a potential
current beneficiary until such time or the
occurrence of such event. Whether a per-
son to whom a distribution is or may be
made during a period pursuant to a power
of appointment is a potential current ben-
eficiary is currently under study.
ESBTDISTRIBUTIONS
Section 641(d)(1) provides that the por-
tion of an ESBTthat consists of stock in
one or more S corporations (“S portion”)
is taxed as a separate trust. Section
641(d)(2)(C) specifies that the only items
of income, loss, deduction, or credit to be
taken into account by the S portion (“S
portion items”) are (i) the items required
to be taken into account under § 1366; (ii)
any gain or loss from the disposition of
stock in an S corporation; and (iii) to the
extent provided in regulations, State or
local income taxes or administrative ex-
penses to the extent allocable to items de-
scribed in clauses (i) and (ii).
Section 641(d)(3) provides that the S
portion items are excluded for purposes of
determining the amount of tax on the por-
tion of the trust that is not treated as a sep-
arate trust under § 641(d)(1) (“non-S por-
tion”) and are excluded in determining the
distributable net income (DNI) of the en-
tire trust. Section 641(d)(3) also provides
that, except as otherwise provided, §
641(d) does not affect the taxation of any
distribution from the trust.
Guidance has been requested on the
treatment of distributions from an ESBT
when the trust has fiduciary accounting
income in both the S portion and the non-
S portion of the trust. Section 641(d)(3)
specifically provides that, except as other-
wise specified, § 641(d) does not change
the taxation of any distribution from the
trust. Because the S portion items are not
included in the computation of the
ESBT’s DNI, they are treated for pur-
poses of determining the treatment of
trust distributions in the same manner as
any other item that does not enter into the
DNI computation (e.g., capital gains and
losses allocated to corpus). For example,
for the tax year an ESBThas $40 of DNI
from the non-S portion and $70 of net
fiduciary accounting income from the S
portion. If the ESBTmakes a distribution
of $100, the distribution includes $40 of
DNI.
DRAFTING INFORMATION
The principal author of this notice is
Steven R. Schneider of the Office of As-
sistant Chief Counsel (Passthroughs and
Special Industries). For further informa-
tion regarding this notice contact Steven
R. Schneider at (202) 622-3060 (not a
toll-free call).
1997–36 I.R.B.9September 8, 1997

Employee Plans and Exempt
Organizations; Requests for
Certain Determination Letters
and Applications for Recognition
of Exemption
Announcement 97–89
Purpose
This is to announce new “Where to
File” instructions for applications for em-
ployee plan determination and other let-
ters, as well as exempt organization appli-
cations for recognition of exemption from
federal income tax, previously submitted
to the Brooklyn Key District Office of In-
ternal Revenue.
Background
The Internal Revenue Service is in the
process of centralizing the filing of re-
quests for determination and other letters
and applications for recognition of tax ex-
emption. Announcement 95–51, pub-
lished in Internal Revenue Bulletin 1995-
25 at page 132, announced that
centralization will be phased in by dis-
trict. We previously announced the cen-
tralization of determination requests for-
merly sent to the key district offices in
Atlanta, Georgia; Baltimore, Maryland;
Chicago, Illinois; Dallas, Texas; and Los
Angeles, California. With the addition of
the Brooklyn Key District, centralization
of the initial processing of all employee
plan determination letter requests and ex-
empt organization applications for recog-
nition of exemption is complete.
In addition, the Service is consolidating
the employee plan volume submitter and
regional prototype programs that are
presently maintained by each individual
key district office. Plans previously ap-
proved by a key district office, whose de-
termination letter processing program is
being transferred to Cincinnati, will be re-
viewed using the same criteria and proce-
dures used by the original district office.
New guidelines are being developed that
will combine the best features and proce-
dures currently in use by the districts.
Guidelines for the revised volume submit-
ter and regional prototype programs will
be explained in a future announcement.
Instructions
Beginning October 1, 1997, letter re-
quests and applications previously sub-
mitted to the Key District Office in
Brooklyn, New York, should be sent to
the Internal Revenue Service Center in
Covington, Kentucky, at the address
shown below. (For a period of time, re-
quests and applications mistakenly sent to
the Brooklyn Key District Office will be
forwarded.) The new address applies to
requests for determination letters, re-
gional prototype notification letters and
volume submitter advisory letters, on the
qualified status of employee plans under
sections 401, 403(a), and 409, and the ex-
empt status of any related trust under sec-
tion 501 of the Internal Revenue Code,
applications for recognition of tax exemp-
tion on Form 1023, Form 1024, and Form
1028, and other applications for recogni-
tion of qualification or exemption. The
affected plan sponsors and organizations
are those whose principal office or place
of business is located in Connecticut,
Maine, Massachusetts, New Hampshire,
New York, Rhode Island, and Vermont.
These requests and applications as well as
those formerly submitted to the Atlanta,
Baltimore, Cincinnati, Chicago, Dallas,
and Los Angeles Key Districts, should be
sent to:
Internal Revenue Service
P.O. Box 192
Covington, KY41012-0192
Applications shipped by Express Mail
or a delivery service should be sent to:
Internal Revenue Service
201 West Rivercenter Blvd.
Attn: Extracting Stop 312
Covington, KY41011
Comments or concerns regarding the
centralization of the determination
process or applications submitted to the
Covington address, may be directed to the
EP/EO Customer Service Unit in Cincin-
nati at (513) 241-5199 (not a toll-free
number).
Foundations Status of Certain
Organizations
Announcement 97–90
The following organizations have
failed to establish or have been unable to
maintain their status as public charities or
as operating foundations. Accordingly,
grantors and contributors may not, after
this date, rely on previous rulings or des-
ignations in the Cumulative List of Orga-
nizations (Publication 78), or on the pre-
sumption arising from the filing of notices
under section 508(b) of the Code. This
listing does notindicate that the organiza-
tions have lost their status as organiza-
tions described in section 501(c)(3), eligi-
ble to receive deductible contributions.
Former Public Charities.The following
organizations (which have been treated as
organizations that are not private founda-
tions described in section 509(a) of the
Code) are now classified as private founda-
tions:
Advanced Management Institute,
Bethesda, MD
Alliance for Community Entry, Inc.,
Cambridge, MA
The Alterra Connection, Downey, CA
American Disability Fund, Inc.,
Uniondale, NY
American Friends of Ashod Community
Center, Brooklyn, NY
Art & Knowledge Workshop, Inc., New
York, NY
The Associate Artists Opera Company of
New England, Inc. Newtonville, MA
Associated Family Developers, Inc., La
Porte, TX
Association for Multicultural Education
Development, Oklahoma City, OK
AssociationofPhilippineOphthalmologists
in America, Inc., Rochester, MI
AssociationofPhilippineOphthalmologists
in America Auxiliary, Rochester, MI
Association of State and Territorial
Chronic Disease Program Directors,
Topeka, KS
Atlantic Cancer Research Foundation,
Inc., Westhampton Beach, NY
Atlantic Coast Chapter of the League of
World War I Aero History, Fair Lawn,
NJ
Auburn-Opelika Sports Corporation,
Auburn, AL
September 8, 1997101997–36 I.R.B.
Part IV. Items of General Interest

Aya, Inc., Bronx, NY
Bergen Girls Recreational Softball
League, Inc., Montvale, NJ
Cambridge Theatre Company, Inc.,
Cambridge, MA
Capital Philharmonic, Inc., Albany, NY
Carousel Theater Company, Incorporated,
New York, NY
Centre for Liberian Assistance Inc.,
Rancho Dominquez, CA
Christian Outreach and Service Inc.,
Atlanta, GA
Chula Vista Housing Corporation, Santa
Ana, CA
Classical Productions, Peekskill, NY
Clear and Present Productions, Inc., New
York, NY
Common Ground Stage and Film
Company, Inc., New York, NY
Connecticut Yankees Youth Hockey, Inc.,
Stamford, CT
Consumer Budget Counseling, Inc., Great
Neck, NY
Danbury Band Aids, Inc., Danbury, CT
David Layne Ministries Inc., Farmville,
VA
Dayton Prison Ministries, Dayton, TX
Delight Nutrition, Spring, TX
Eledra Fund, Inc., Bronx, NY
Emerson Lights Inc., Emerson, NJ
Exchange Club Center for the Prevention
of Child Abuse of Montgomery County,
Montgomery, AL
Family Worship Center Church Inc.,
Penns Grove, NJ
First Night Manassas Inc., Manassas, VA
Geri-Games Inc., New Braunfels, TX
Green River Senior Babe Ruth League
Inc., Green River, WY
Hamaayan-The Torah Spring Inc., Silver
Spring, MD
Health for All Inc. DBAUlster Project,
Tucson, AZ
Jacobs Athletic Association, Chesterfield,
VA
Jow Lung Fund, Washington, DC
Juniper Tenth Street Resident
Management Corporation, Atlanta, GA
LCH Inc., Ripley, MS
Leadville Community Broadcast
Association, Inc., Leadville, CO
Mount Lemmon Volunteer Interpreters,
Tucson, AZ
New Jersey Activity Professionals
Association, Ringwood, NJ
Northwest Ohio Prison Ministries Inc.,
Lima, OH
Paw-People for Animal Welfare,
Washington, PA
Pennsylvania Rep Company Inc.,
Stroudsburg, PA
Plymouth Downtown Development
Association, Plymouth, NC
Potters House Inc., Washington, DC
Rapides DARE Inc., Alexandria, LA
Return-A-Gift Inc., Greencastle, IN
Rose Tree Colts Inc., Media, PA
Salisbury Club, St. Louis, MO
Sierra Leone National Council Inc.,
Washington, DC
Spearfish Youth Baseball Assoc. Inc.,
Spearfish, SD
South Memphis Child Development
Center, Memphis, TN
Tennessee Association of Housing &
Redevelopment Authorities, Nashville,
TN
Visions Entertainment Concepts Inc.,
Washington, DC
Way Station, Parker, CO
Whitefish Bay Public Education
Foundation, Inc., Milwaukee, WI
World Peace Foundation Inc., Tampa, FL
Wyoming Lighthouse Inc., Laramie, WY
Youth Panorama Inc., Tucumari, NM
If an organization listed above submits
information that warrants the renewal of its
classification as a public charity or as a pri-
vate operating foundation, the Internal
Revenue Service will issue a ruling or de-
termination letter with the revised classifi-
cation as to foundation status. Grantors and
contributors may thereafter rely upon such
ruling or determination letter as provided
in section 1.509(a)–7 of the Income Tax
Regulations. It is not the practice of the
Service to announce such revised classifi-
cation of foundation status in the Internal
Revenue Bulletin.
Inbound Grantor Trusts With
Foreign Grantors; Correction
Announcement 97–93
AGENCY: Internal Revenue Service,
Treasury
ACTION: Correction to a notice of pro-
posed rulemaking and notice of public
hearing
SUMMARY: This document contains
corrections to the notice of proposed rule-
making and notice of public hearing
(REG–252487–96 [1997–25 I.R.B. 9]),
which was published in the Federal Reg-
isterThursday, June 5, 1997 (62 F.R.
30785), relating to the application of the
grantor trust rules to certain trusts estab-
lished by foreign persons.
FOR FURTHER INFORMATION CON-
TACT: James Quinn, (202) 622-3060
(not a toll-free number).
SUPPLEMENTARYINFORMATION:
Background
The notice of proposed rulemaking and
notice of public hearing that is the subject
of these corrections is under sections 643,
671 and 672 of the Internal Revenue
Code.
Need for Correction
As published, REG-252487–96 contain
errors which may prove to be misleading
and are in need of clarification.
Correction of Publication
Accordingly, the publication of the no-
tice of proposed rulemaking and notice of
public hearing (REG-252487–96), which
was the subject of F.R. Doc. 97–14735, is
corrected as follows:
1. On page 30786, column 1, in the
preamble under the paragraph heading
“1. Prior Law”, paragraph 2, line 5, the
language “the grantor, a distribution of in-
come” is corrected to read “the owner, a
distribution of income”.
2. On page 30787, column 2, in the
preamble under the paragraph heading
“3. Section 1.672(f)–1: Foreign Persons
Not Treated as Owners”, fourth full para-
graph in the column, line 7, the language
“basic grantor trust rules from treating a”
is corrected to read “basic grantor trust
rules from treating a foreign”.
§ 1.672(f)–2 [Corrected]
3. On page 30793, column 1, §
1.672(f)–2 (d), Example 3, second line
from the bottom of the column, the lan-
guage “no deductions or losses for 199X.
Under” is corrected to read “no deduc-
tions or losses for 1999. Under”.
4. On page 30793, column 2, §
1.672(f)–2, paragraph (d) is correctly des-
ignated as paragraph (e).
1997–36 I.R.B.11September 8, 1997

§ 1.672(f)–3 [Corrected]
5. On page 30793, column 3, §
1.672(f)–3 (a)(3), Example 1, line 1, the
paragraph heading “Owner is grantor.”is
corrected to read “Death of Grantor.”
6. On page 30793, column 3, §
1.672(f)–3 (a)(3), Example 2, line 1, the
paragraph heading “Owner not grantor.”
is corrected to read “Death of grantor”.
§ 1.672(f)–4 [Corrected]
7. On page 30795, column 3, §
1.672(f)–4 (d), line 6, the language
“value) to a person who is not a partner”
is corrected to read “value, within the
meaning of § 1.671-2 (e)(4)(i)(A)) to a
person who is not a partner”.
Cynthia E. Grigsby,
Chief, Regulations Unit
Assistant Chief Counsel (Corporate).
(Filed by the Office of the Federal Register on July
14, 1997, 8:45 a.m., and published in the issue of the
Federal Register for July 15, 1997, 62 F.R. 37819)
Inbound Grantor Trusts With
Foreign Grantors; Correction to
Correction
Announcement 97–94
AGENCY: Internal Revenue Service,
Treasury.
ACTION: Correction to correction of a
notice of proposed rulemaking and notice
of public hearing.
SUMMARY: This document contains
corrections to the correction of the pro-
posed rulemaking and notice of public
hearing (REG-252487–96), which was
published in the Federal RegisterTues-
day, July 15, 1997 (62 F.R. 37819), relat-
ing to the application of the grantor trust
rules to certain trusts established by for-
eign persons.
FOR FURTHER INFORMATION CON-
TACT: M. Grace Fleeman (202) 622-
3850 (not a toll-free number).
SUPPLEMENTARYINFORMATION:
Background
The correction notice that is the subject
of this correction contains corrections to
the notice of proposed rulemaking and
notice of public hearing under sections
643, 671 and 672 of the Internal Revenue
Code.
Need for Correction
As published, the correction notice for
REG-252487–96 contains errors which
may prove to be misleading and are in
need of clarification.
Correction of Publication
Accordingly, the publication of the cor-
rection to notice of proposed rulemaking
and notice of public hearing (REG-
252487–96), which was the subject of F.R.
Doc. 97–18444, is corrected as follows:
1. On page 37819, column 1 in the pre-
amble under the caption FOR FURTHER
INFORMATION CONTACT:the lan-
guage “James Quinn, (202) 622-3060 (not
a toll-free number).” is corrected to read
“M. Grace Fleeman (202) 622-3850 (not a
toll-free number).”
§ 1.672(f)–3 [Corrected]
2. On page 37819, column 2, §
1.672(f)–3, amendatory instruction, last
two lines, the language “paragraph head-
ing ‘Owner is grantor.’is corrected to
read ‘Death of grantor.’” is corrected to
read “paragraph heading ‘Owner is
grantor.’” is corrected to read ‘Grantor is
owner.’”.
Cynthia E. Grigsby,
Chief, Regulations Unit
Assistant Chief Counsel
(Corporate).
(Filed by the Office of the Federal Register on July
25, 1997, 8:45 a.m., and published in the issue of the
Federal Register for July 28, 1997, 62 F.R. 40316)
Permitted Elimination of
Preretirement Optional Forms of
Benefits; Hearing
Announcement 97–95
AGENCY: Internal Revenue Service,
Treasury.
ACTION: Change of location of public
hearing.
SUMMARY: This document changes the
location of the public hearing on proposed
regulations that would permit an amend-
ment to a qualified plan that eliminates cer-
tain Preretirement optional forms of benefit.
DATES:The public hearing is being held
on Tuesday, October 28, 1997, beginning
at 10:00 a.m.
ADDRESSES:The public hearing origi-
nally scheduled in the IRS Auditorium,
7400 Corridor, Internal Revenue Building,
1111 Constitution Avenue, NW, Washing-
ton, DC is changed to room 2615, Internal
Revenue Building, 1111 Constitution Av-
enue, NW, Washington, DC.
FOR FURTHER INFORMATION CON-
TACT: Mike Slaughter of the Regulations
Unit, Assistant Chief Counsel (Corporate),
(202) 622-7190 (not a toll-free number).
SUPPLEMENTARYINFORMATION:
Anotice of proposed rulemaking and no-
tice of public hearing appearing in the
Federal Registeron Wednesday, July 2,
1997 (62 F.R. 35752 [REG–107644–97,
1997–32 I.R.B. 24]), announced that a
public hearing relating to proposed regu-
lations under section 411 (d) of the Inter-
nal Revenue Code will be held Tuesday,
October 28, 1997, beginning at 10:00 a.m.
in the IRS Auditorium, 7400 Corridor, In-
ternal Revenue Building, 111 Constitution
Avenue NW, Washington, DC and that re-
quests to speak and outlines of oral com-
ments should be received by Tuesday,
September 30, 1997.
The location of the public hearing has
changed. The hearing is being held in
room 2615 on Tuesday, October 28, 1997,
beginning at 10:00 a.m. The requests to
speak and outlines of oral comments
should have been received by Tuesday,
September 30, 1997. Because of con-
trolled access restrictions, attenders can-
not be admitted beyond the lobby of the
Internal Revenue Building until 9:45 a.m.
Copies of the agenda are available free
of charge at the hearing.
Cynthia E. Grigsby,
Chief, Regulations Unit
Assistant Chief Counsel
(Corporate).
(Filed by the Office of the Federal Register on July
14, 1997, 8:45 a.m., and published in the issue of the
Federal Register for July 15, 1997, 62 F.R. 37818)
September 8, 1997121997–36 I.R.B.

1997–36 I.R.B.13September 8, 1997
Revenue rulings and revenue procedures
(hereinafter referred to as “rulings”) that
have an effect on previous rulings use the
following defined terms to describe the
effect:
Amplified describes a situation where
no change is being made in a prior pub-
lished position, but the prior position is
being extended to apply to a variation of
the fact situation set forth therein. Thus,
if an earlier ruling held that a principle
applied to A, and the new ruling holds
that the same principle also applies to B,
the earlier ruling is amplified. (Compare
with modified, below).
Clarified is used in those instances
where the language in a prior ruling is
being made clear because the language
has caused, or may cause, some confu-
sion. It is not used where a position in a
prior ruling is being changed.
Distinguisheddescribes a situation
where a ruling mentions a previously
published ruling and points out an essen-
tial difference between them.
Modified is used where the substance
of a previously published position is
being changed. Thus, if a prior ruling
held that a principle applied to Abut not
to B, and the new ruling holds that it ap-
plies to both Aand B, the prior ruling is
modified because it corrects a published
position. (Compare with amplified and
clarified, above).
Obsoleted describes a previously pub-
lished ruling that is not considered deter-
minative with respect to future transac-
tions. This term is most commonly used
in a ruling that lists previously published
rulings that are obsoleted because of
changes in law or regulations. Aruling
may also be obsoleted because the sub-
stance has been included in regulations
subsequently adopted.
Revoked describes situations where the
position in the previously published rul-
ing is not correct and the correct position
is being stated in the new ruling.
Superseded describes a situation where
the new ruling does nothing more than
restate the substance and situation of a
previously published ruling (or rulings).
Thus, the term is used to republish under
the 1986 Code and regulations the same
position published under the 1939 Code
and regulations. The term is also used
when it is desired to republish in a single
ruling a series of situations, names, etc.,
that were previously published over a pe-
riod of time in separate rulings. If the
new ruling does more than restate the
substance of a prior ruling, a combination
of terms is used. For example, modified
and superseded describes a situation
where the substance of a previously pub-
lished ruling is being changed in part and
is continued without change in part and it
is desired to restate the valid portion of
the previously published ruling in a new
ruling that is self contained. In this case
the previously published ruling is first
modified and then, as modified, is super-
seded.
Supplemented is used in situations in
which a list, such as a list of the names of
countries, is published in a ruling and
that list is expanded by adding further
names in subsequent rulings. After the
original ruling has been supplemented
several times, a new ruling may be pub-
lished that includes the list in the original
ruling and the additions, and supersedes
all prior rulings in the series.
Suspended is used in rare situations to
show that the previous published rulings
will not be applied pending some future
action such as the issuance of new or
amended regulations, the outcome of
cases in litigation, or the outcome of a
Service study.
Abbreviations
The following abbreviations in current use and for-
merly used will appear in material published in the
Bulletin.
A—Individual.
Acq.—Acquiescence.
B—Individual.
BE—Beneficiary.
BK—Bank.
B.T.A.—Board of Tax Appeals.
C.—Individual.
C.B.—Cumulative Bulletin.
CFR—Code of Federal Regulations.
CI—City.
COOP—Cooperative.
Ct.D.—Court Decision.
CY—County.
D—Decedent.
DC—Dummy Corporation.
DE—Donee.
Del. Order—Delegation Order.
DISC—Domestic International Sales Corporation.
DR—Donor.
E—Estate.
EE—Employee.
E.O.—Executive Order.
ER—Employer.
ERISA—Employee Retirement Income Security Act.
EX—Executor.
F—Fiduciary.
FC—Foreign Country.
FICA—Federal Insurance Contribution Act.
FISC—Foreign International Sales Company.
FPH—Foreign Personal Holding Company.
F.R.—Federal Register.
FUTA—Federal Unemployment Tax Act.
FX—Foreign Corporation.
G.C.M.—Chief Counsel’s Memorandum.
GE—Grantee.
GP—General Partner.
GR—Grantor.
IC—Insurance Company.
I.R.B.—Internal Revenue Bulletin.
LE—Lessee.
LP—Limited Partner.
LR—Lessor.
M—Minor.
Nonacq.—Nonacquiescence.
O—Organization.
P—Parent Corporation.
PHC—Personal Holding Company.
PO—Possession of the U.S.
PR—Partner.
PRS—Partnership.
PTE—Prohibited Transaction Exemption.
Pub. L.—Public Law.
REIT—Real Estate Investment Trust.
Rev. Proc.—Revenue Procedure.
Rev. Rul.—Revenue Ruling.
S—Subsidiary.
S.P.R.—Statements of Procedral Rules.
Stat.—Statutes at Large.
T—Target Corporation.
T.C.—Tax Court.
T.D.—Treasury Decision.
TFE—Transferee.
TFR—Transferor.
T.I.R.—Technical Information Release.
TP—Taxpayer.
TR—Trust.
TT—Trustee.
U.S.C.—United States Code.
X—Corporation.
Y—Corporation.
Z—Corporation.
Definition of Terms

September 8, 1997141997–36 I.R.B.
Numerical Finding List
1
Bulletins 1997–27 through 1997–35
Announcements:
97–61, 1997–29 I.R.B. 13
97–67, 1997–27 I.R.B. 37
97–68, 1997–28 I.R.B. 13
97–69, 1997–28 I.R.B. 13
97–70, 1997–29 I.R.B. 14
97–71, 1997–29 I.R.B. 15
97–72, 1997–29 I.R.B. 15
97–73, 1997–30 I.R.B. 86
97–74, 1997–31 I.R.B.16
97–75, 1997–32 I.R.B. 28
97–76, 1997–32 I.R.B. 28
97–77, 1997–33 I.R.B. 58
97–78, 1997–34 I.R.B. 11
97–79, 1997–35 I.R.B. 8
97–80, 1997–34 I.R.B. 12
97–81, 1997–34 I.R.B. 12
97–82, 1997–34 I.R.B. 12
97–83, 1997–34 I.R.B. 13
97–84, 1997–34 I.R.B. 13
97–85, 1997–35 I.R.B. 8
97–86, 1997–35 I.R.B. 9
97–87, 1997–35 I.R.B. 9
97–88, 1997–35 I.R.B. 9
Court Decisions:
2061, 1997–31 I.R.B. 5
2062, 1997–32 I.R.B. 8
Delegation Orders:
172 (Rev. 5), 1997–28 I.R.B. 6
Notices:
97–37, 1997–27 I.R.B. 4
97–38, 1997–27 I.R.B. 8
97–39, 1997–27 I.R.B. 8
97–40, 1997–28 I.R.B. 6
97–41, 1997–28 I.R.B. 6
97–42, 1997–29 I.R.B. 12
97–43, 1997–30 I.R.B. 9
97–44, 1997–31 I.R.B. 15
97–45, 1997–33 I.R.B. 7
97–46, 1997–34 I.R.B. 10
97–47, 1997–35 I.R.B. 5
97–48, 1997–35 I.R.B. 5
Railroad Retirement Quarterly Rate:
1997–28 I.R.B. 5
Proposed Regulations:
REG–104893–97, 1997–29 I.R.B. 13
REG–107644–97, 1997–32 I.R.B. 24
Revenue Procedures:
97–32, 1997–27 I.R.B. 9
97–32A, 1997–34 I.R.B. 10
97–33, 1997–30 I.R.B. 10
97–34, 1997–30 I.R.B.14
97–35, 1997–33 I.R.B. 11
97–36, 1997–33 I.R.B. 14
97–37, 1997–33 I.R.B. 18
97–38, 1997–33 I.R.B. 43
97–39, 1997–33 I.R.B. 48
97–40, 1997–33 I.R.B. 50
97–41, 1997–33 I.R.B. 5
97–42, 1997–33 I.R.B. 57
Revenue Rulings:
97–27, 1997–27 I.R.B. 4
97–28, 1997–28 I.R.B. 4
97–29, 1997–28 I.R.B. 4
97–30, 1997–31 I.R.B.12
97–31, 1997–32 I.R.B.4
97–32, 1997–33 I.R.B. 4
97–33, 1997–34 I.R.B. 4
97–34, 1997–34 I.R.B. 14
97–35, 1997–35 I.R.B. 4
Treasury Decisions:
8722, 1997–29 I.R.B. 4
8723, 1997–30 I.R.B. 4
8726, 1997–34 I.R.B. 7
8727, 1997–34 I.R.B. 5
1
Acumulative list of all revenue rulings, revenue
procedures, Treasury decisions, etc., published in
Internal Revenue Bulletins 1997–1 through 1997–26
will be found in Internal Revenue Bulletin 1997–27,
dated July 7, 1997.

1997–36 I.R.B.15September 8, 1997
Finding List of Current Action on
Previously Published Items
1
Bulletins 1997–27 through 1997–35
*Denotes entry since last publication
Revenue Procedures:
96–36
Superseded by
97–34, 1997–30 I.R.B. 14
96–42
Superseded by
97–27, 1997–27 I.R.B. 9
97–32
Modified and amplified by
97–32A, 1997–34 I.R.B. 10
Revenue Rulings:
89–42
Supplemented by
97–31, 1997–32 I.R.B. 4
1
Acumulative finding list for previously published
items mentioned in Internal Revenue Bulletins
1997–1 through 1997–26 will be found in Internal
Revenue Bulletin 1997–27, dated July 7, 1997.

Notes
September 8, 1997161997–36 I.R.B.

Notes
1997–36 I.R.B.17September 8, 1997

Notes
September 8, 1997181997–36 I.R.B.

INTERNAL REVENUE BULLETIN
The Introduction on page 3 describes the purpose and content of this publication. The weekly Internal Revenue Bulletin is sold
on a yearly subscription basis by the Superintendent of Documents. Current subscribers are notified by the Superintendent of
Documents when their subscriptions must be renewed.
CUMULATIVE BULLETINS
The contents of this weekly Bulletin are consolidated semiannually into a permanent, indexed, Cumulative Bulletin. These are
sold on a single copy basis and are not included as part of the subscription to the Internal Revenue Bulletin. Subscribers to the week-
ly Bulletin are notified when copies of the Cumulative Bulletin are available. Certain issues of Cumulative Bulletins are out of print
and are not available. Persons desiring available Cumulative Bulletins, which are listed on the reverse, may purchase them from the
Superintendent of Documents.
HOW TO ORDER
Check the publications and/or subscription(s) desired on the reverse, complete the order blank, enclose the proper remittance,
detach entire page, and mail to the Superintendent of Documents, U.S. Government Printing Office, Washington, DC 20402. Please
allow two to six weeks, plus mailing time, for delivery.
WE WELCOME COMMENTS ABOUT THE
INTERNAL REVENUE BULLETIN
If you have comments concerning the format or production of the Internal Revenue Bulletin or suggestions for improving it, we
would be pleased to hear from you. You can e-mail us your suggestions or comments through the IRS Internet Home Page
(www.irs.ustreas.gov) or write to the IRS Bulletin Unit, T:FP:F:CD, Room 5560, 1111 Constitution Avenue NW, Washington, DC
20224. You can also leave a recorded message 24 hours a day, 7 days a week at 1–800–829–9043.
Superintendent of Documents
U.S. Government Printing Office
Washington, DC 20402
Official Business
Penalty for Private Use, $300
First Class Mail
Postage and Fees Paid
GPO
Permit No. G–26

INTERNAL REVENUE BULLETIN
The Introduction on page 3 describes the purpose and content of this publication. The weekly Internal Revenue Bulletin is sold
on a yearly subscription basis by the Superintendent of Documents. Current subscribers are notified by the Superintendent of
Documents when their subscriptions must be renewed.
CUMULATIVE BULLETINS
The contents of this weekly Bulletin are consolidated semiannually into a permanent, indexed, Cumulative Bulletin. These are
sold on a single copy basis and are not included as part of the subscription to the Internal Revenue Bulletin. Subscribers to the week-
ly Bulletin are notified when copies of the Cumulative Bulletin are available. Certain issues of Cumulative Bulletins are out of print
and are not available. Persons desiring available Cumulative Bulletins, which are listed on the reverse, may purchase them from the
Superintendent of Documents.
HOW TO ORDER
Check the publications and/or subscription(s) desired on the reverse, complete the order blank, enclose the proper remittance,
detach entire page, and mail to the Superintendent of Documents, U.S. Government Printing Office, Washington, DC 20402. Please
allow two to six weeks, plus mailing time, for delivery.
WE WELCOME COMMENTS ABOUT THE
INTERNAL REVENUE BULLETIN
If you have comments concerning the format or production of the Internal Revenue Bulletin or suggestions for improving it, we
would be pleased to hear from you. You can e-mail us your suggestions or comments through the IRS Internet Home Page
(www.irs.ustreas.gov) or write to the IRS Bulletin Unit, T:FP:F:CD, Room 5560, 1111 Constitution Avenue NW, Washington, DC
20224. You can also leave a recorded message 24 hours a day, 7 days a week at 1–800–829–9043.
Internal Revenue Service
Washington, DC 20224
Official Business
Penalty for Private Use, $300
First Class Mail
Postage and Fees Paid
IRS
Permit No. G–48