Internal Revenue Bulletin 1996-18 (PDF rendition): IRS Announcements

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.

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Bulletin No. 1996–18
April 29, 1996
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.
SPECIAL ANNOUNCEMENT
Announcement 96–33, page 12.
A public hearing will be held on June 5, 1996, on
proposed regulations which clarify certain requirements
for tax-exempt section 501(c)(5) organizations.
GIFT TAX
PS–4–96, page 5.
Proposed regulations under section 2702 of the Code
permit the reformation of a personal residence trust or
a qualified personal residence trust to comply with the
applicable requirements for such trusts. A public
hearing will be held on July 24, 1996.
ADMINISTRATIVE
Notice 96–26, page 4.
LR–115–86, 1988–2 C.B. 834, relating to tax on the
sale or removal of gasoline, and LR–77–88, 1988–2
C.B. 834, relating to gasoline excise tax bond
requirements, are withdrawn.
Notice 96–27, page 4.
T.D. 8595, 1995–1 C.B. 205, relating to payments of
Internal Revenue taxes and stamps by check or money
order, is corrected.
Announcement 96–23, page 7.
This announcement proposes procedures for a foreign
person to apply to the IRS to be a qualified
intermediary under section 1.1441–1(e)(5) of the
proposed regulations under section 1441.
Announcement 96–34, page 13.
T.D. 8653, 1996–12 I.R.B. 4, relating to the character
and timing of gain or loss from hedging transactions
entered into by member of a consolidated group, is
corrected.
Announcement 96–35, page 13.
T.D. 8638, 1996–5 I.R.B. 5, relating to certain
transfers of stock or securities of domestic corporations
by U.S. persons to foreign corporations, is corrected.
Announcement 96–36, page 13.
T.D. 8648, 1996–10 I.R.B. 23, relating to a controll-
ing corporation’s basis adjustment in its controlled
corporation’s stock following a triangular reorganization,
is corrected.
Announcement 96–37, page 14.
T.D. 8597, 1995–32 I.R.B. 6, relating to intercompany
transaction system of the consolidated return regula-
tions, is corrected.
Finding Lists begin on page 16.

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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 products and services; and perform in a
manner warranting the highest degree of public
confidence in our integrity, efficiency and fairness.
Statement of Principles
of Internal Revenue
Tax Administration
The function of the Internal Revenue Service is to
administer 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 provisions 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 ‘‘protecting the revenue.’’
The revenue is properly protected only when we as-
certain 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 hesitate
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, however, be
vigorous in requiring compliance with law and it
should be relentless in its attack on unreal tax
devices and fraud.

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Introduction
The Internal Revenue Bulletin is the authoritative
instrument of the Commissioner of Internal Revenue for
announcing official rulings and procedures of the
Internal Revenue Service and for publishing Treasury
Decisions, Executive Orders, Tax Conventions, legisla-
tion, court decisions, and other items of general
interest. It is published weekly and may be obtained
from the Superintendent of Documents on a subscrip-
tion basis. Bulletin contents of a permanent nature 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 substantive 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 otherwise indicated.
Procedures relating solely to matters of internal
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 published rulings and proce-
dures, the effect of subsequent legislation, regulations,
court decisions, rulings, and procedures must be
considered, and Service personnel and others con-
cerned are cautioned against reaching the same
conclusions 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
Subparts. Also included in this part are Bank Secrecy
Act Administrative Rulings. Bank Secrecy Act Admin-
istrative 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 Rulemak-
ing and the disbarment and suspension list included in
this part, none of these announcements are consoli-
dated in the Cumulative Bulletins.
The first Bulletin for each month includes an index for
the matters published during the preceding month.
These monthly indexes are cumulated on a quarterly
and semiannual basis, and are published in the first
Bulletin of the succeeding quarterly and semi-annual
period, respectively.
The Bulletin Index-Digest System, a research and
reference service supplementing the Bulletin, may be
obtained from the Superintendent of Documents on a
subscription basis. It consists of four Services: Service
No. 1, Income Tax; Service No. 2, Estate and Gift
Taxes; Service No. 3, Employment Taxes; Service No.
4, Excise Taxes. Each Service consists of a basic
volume and a cumulative supplement that provides (1)
finding lists of items published in the Bulletin, (2)
digests of revenue rulings, revenue procedures, and
other published items, and (3) indexes of Public Laws,
Treasury Decisions, and Tax Conventions.
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, D.C. 20402.

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Part III. Administrative, Procedural, and Miscellaneous
Gasoline
Notice 96–26
AGENCY: Internal Revenue Service
(IRS), Treasury.
ACTION: Withdrawal of notices of
proposed rulemaking.
SUMMARY: This document withdraws
the notices of proposed rulemaking
relating to gasoline that were published
in the Federal Register on November
18, 1987, and September 27, 1988,
because of amendments to sections
4081 and 4101 of the Internal Revenue
Code made by the Omnibus Budget
Reconciliation Act of 1990 and the
Omnibus Budget Reconciliation Act of
1993.
FOR FURTHER INFORMATION
CONTACT: Frank Boland, (202)
622-3130 (not a toll-free number).
SUPPLEMENTARY INFORMATION:
Background
On November 18, 1987, the IRS
issued proposed regulations (LR–115–
86 [1988–2 C.B. 834]) relating to tax
on the sale or removal of gasoline (52
FR 44141) which were later proposed
to be amended on September 27, 1988
(53 FR 37590). On September 27,
1988, the IRS issued proposed regula-
tions (LR–77–88 [1988–2 C.B. 834])
relating to gasoline excise tax bond
requirements (53 FR 37590). The Om-
nibus Budget Reconciliation Act of
1990 and the Omnibus Budget Recon-
ciliation Act of 1993 amended sections
4081 and 4101. On July 22, 1992, final
regulations (TD 8421 [1992–2 C.B.
260]) relating to gasoline tax under
section 4081 as amended were pub-
lished in the Federal Register (57 FR
32424). On November 30, 1993, tem-
porary regulations (TD 8496 [1993–2
C.B. 281]) relating to registration re-
quirements under section 4101 as
amended were published in the Federal
Register (58 FR 63069). Therefore, the
earlier proposed rules are withdrawn.
******
Withdrawal of Notices of Proposed
Rulemaking
Accordingly, under the authority of
26 U.S.C. 7805, the notices of pro-
posed rulemaking that were published
in the Federal Register on November
18, 1987 (52 FR 44141) and September
27, 1988 (53 FR 37590) are withdrawn.
Margaret Milner Richardson,
Commissioner of Internal Revenue.
(Filed by the Office of the Federal Register on
March 13, 1996, 8:45 a.m., and published in
the issue of the Federal Register for March 14,
1996, 61 F.R. 10492)
Payment of Internal Revenue Tax by
Check or Money Order and Liability
of Financial Institutions for Unpaid
Taxes; Correction
Notice 96–27
AGENCY: Internal Revenue Service,
Treasury.
A C T I O N : C o r r e c t i o n t o f i n a l
regulations.
SUMMARY: This document contains a
correction to final regulations [TD
8595 [1995–1 C.B. 205]] which were
published in the Federal Register for
Friday, April 28, 1995 (60 FR 20899).
The final regulations relate to payments
with respect to internal revenue taxes
and internal revenue stamps by check
or money order.
EFFECTIVE DATE: April 28, 1995.
FOR FURTHER INFORMATION
CONTACT: Robert A. Walker, (202)
622-3640 (not a toll-free number).
SUPPLEMENTARY INFORMATION:
Background
The final regulations that are the
subject of this correction are under
section 6311 of the Internal Revenue
Code.
Need for Correction
As published, TD 8595 contains an
error that is in need of clarification.
Correction of Publication
Accordingly, the publication of final
regulations which is the subject of FR
Doc. 95–10410, is corrected as follows:
On page 20899, column 3, in amen-
datory instruction ‘‘Par. 2.,’’ line 8, the
amendatory language ‘‘5. Adding para-
graphs (d) and (e).’’ is corrected to
read ‘‘5. Adding paragraph (d).’’
Cynthia E. Grigsby,
Chief, Regulations Unit,
Assistant Chief Counsel (Corporate).
(Filed by the Office of the Federal Register on
March 27, 1996, 8:45 a.m., and published in
the issue of the Federal Register for March 28,
1996, 61 F.R. 13762)

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Part IV. Items of General Interest
Notice of Proposed Rulemaking and
Notice of Public Hearing
Sale of Residence from Qualified
Personal Residence Trust
PS–4–96
AGENCY: Internal Revenue Service
(IRS), Treasury.
ACTION: Notice of proposed rulemak-
ing and notice of public hearing.
SUMMARY: This document contains a
proposed regulation permitting the re-
formation of a personal residence trust
or a qualified personal residence trust
in order to comply with the applicable
requirements for such trusts. The pro-
posed regulation also clarifies that the
governing instruments of such trusts
must prohibit the sale of a residence
held in the trust to the grantor of the
trust, the grantor’s spouse, or an entity
controlled by the grantor or the gran-
tor’s spouse. The proposed regulation
will affect trusts created after the pro-
posed effective date.
DATES: Written comments and out-
lines of oral comments to be presented
at the public hearing scheduled for July
24, 1996, must be received by July 15,
1996.
ADDRESSES: Send submissions to:
CC:DOM:CORP:R (PS–4–96), Room
5228, Internal Revenue Service, P.O.
Box 7604, Ben Franklin Station, Wash-
ington, DC 20044. In the alternative,
submissions may be hand delivered
between the hours of 8 a.m. and 5 p.m.
to: CC:DOM:CORP:R (PS–4–96), Cou-
rier’s Desk Internal Revenue Service,
1111 Constitution Avenue NW., Wash-
ington, DC 20224. The public hearing
will be held in the IRS auditorium,
Seventh Floor, 7400 Corridor, Internal
Revenue Building, 1111 Constitution
Avenue NW., Washington DC.
FOR FURTHER INFORMATION
CONTACT: Concerning the proposed
regulations, Dale Carlton, (202)
622-3090; concerning submissions and
the hearing, Evangelista Lee, (202)
622-7180 (not toll-free numbers).
SUPPLEMENTARY INFORMATION:
Paperwork Reduction Act
The collection of information con-
tained in this notice of proposed rule-
making has been submitted to the
Office of Management and Budget for
review in accordance with the Paper-
work Reduction Act of 1995 (44
U.S.C. 3507).
Comments on the collection of infor-
mation should be sent to the Office of
Management and Budget, Attn: Desk
Officer for the Department of the
Treasury, Office of Information and
Regulatory Affairs, Washington, DC
20503, with copies to the Internal
Revenue Service, Attn: IRS Reports
Clearance Officer, T:FP, Washington,
DC 20224. Comments on the collection
of information should be received by
June 15, 1996.
An agency may not conduct or
sponsor, and a person is not required to
respond to, a collection of information
unless the collection of information
displays a valid control number.
The collection of information is in
§25.2702–5. This information is re-
quired by the IRS to ensure compliance
with the regulatory requirements. The
likely respondents are individuals or
households. Responses to the collection
of information are required to obtain
favorable gift tax treatment.
Books or records relating to this
collection of information must be re-
tained as long as their contents may
become material 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.
Estimated total annual reporting/
recordkeeping burden: 625 hours.
The estimated annual burden per re-
spondent varies from 3 hours to 3.25
hours depending on individual circum-
stances with an estimated average of
3.1 hours.
Estimated number of respondents: 200
Estimated annual frequency of re-
sponses: 2
Background
This document proposes to amend
the Gift Tax Regulations (26 CFR
part 25) under section 2702 relating to
‘‘personal residence trusts’’ and
‘‘qualified personal residence trusts.’’
Section 2702(a) provides special
valuation rules for determining the
value of a gift when a transfer is made
in trust to or for the benefit of a
member of the donor’s family and the
donor retains an interest in the trust.
Under section 2702(a)(2)(A), the value
of any retained interest that is not a
‘‘qualified interest’’ is treated as zero.
Therefore, the value of the gift is equal
to the full value of the property at the
time of the transfer. In contrast, the
value of a retained interest that is a
qualified interest is determined under
the valuation tables prescribed pursuant
to section 7520. Section 2702(b) pro-
vides that a qualified interest means an
annuity interest, a unitrust interest, or a
remainder interest after either an an-
nuity or unitrust interest.
Congress recognized that many peo-
ple desire to maintain the family
ownership of their home and pass
ownership on to future generations,
while retaining its use for a period of
time. The annuity and unitrust require-
ments are not, however, conducive to
the transfer of a residence. Accord-
ingly, section 2702(a)(3)(A)(ii) pro-
vides an exception to the annuity and
unitrust requirements. Under this lim-
ited exception, the grantor’s retained
interest need not be in one of these
forms, but rather can take the form of a
right to the use and occupancy of the
residence. Because this is an exception
to the general rule of section 2702, a
grantor may take into account not only
the value of the retained interest, but
also any contingent reversionary inter-
est, in determining the amount of the
gift to the remainderman.
The requirements of section 2702(a)-
(3)(A)(ii) are satisfied by a personal
residence trust and a qualified personal
residence trust as set forth in the
regulations. The governing instruments
of these trusts must prohibit the trust
from holding, for the original duration
of the term interest, assets other than
one residence to be used or held for the
use as a personal residence of the term
holder. In addition, a qualified personal
residence trust can hold limited
amounts of cash for certain specified
purposes such as the payment of
operating expenses and expenses for
the improvement or replacement of the

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residence, and the trustee is permitted
to sell the residence during the original
duration of the term interest, if certain
requirements are satisfied.
If the trust does not qualify as a
personal residence trust or a qualified
personal residence trust, the grantor’s
retained interest is valued at zero under
section 2702. This is the result even
where the lack of compliance with the
requirements in the regulations is the
result of error or poor advice. As most
errors are discovered at the time the
gift tax return is prepared, the proposed
regulation permits reformation of the
trust to be commenced up to 90 days
after the gift tax return is due. A
properly reformed trust will be treated
as satisfying the regulatory require-
ments.
Questions have arisen as to whether
it is permissible for the grantor to place
a personal residence in trust, obtain all
the tax benefits of a qualified personal
residence trust and then purchase the
residence from the trust. For example,
in a transaction described by one
commentator as the ‘‘bait and switch,’’
the grantor places the residence in trust
with the intention of purchasing the
residence from the trust just prior to
the expiration of the grantor’s retained
term so that cash or other assets pass to
the remaindermen in place of the
residence.
The Treasury Department and the
IRS have previously stated the view
that Congress intended the personal
residence trust exception to enable
transferors to pass the family home to
younger members of the family. Prea-
mble to TD 8395, 1992–1 C.B. 316, at
319. Using the ‘‘bait and switch’’
technique, however, the personal re-
sidence trust exception could be used
to facilitate the transfer of the grantor’s
other assets to future generations. The
residence would merely serve as a
temporary ‘‘stand-in’’ to avoid the
annuity and unitrust requirements of
section 2702. The proposed regulations
clarify that the sale of the residence to
the grantor by the trustee of the
personal residence trust or qualified
personal residence trust is not consis-
tent with Congress’ intent in enacting
section 2702.
Explanation of Provisions
The proposed regulation provides
that a trust that does not comply with
one or more of the regulatory re-
quirements for qualification as a per-
sonal residence trust or a qualified
personal residence trust, will be treated
as satisfying those requirements if the
trust is reformed by judicial reforma-
tion (or nonjudicial reformation if
effective under state law) to comply
with the requirements. The reformation
must be commenced within 90 days of
the due date (including extensions) for
filing the gift tax return reporting the
transfer of the residence, and must be
completed within a reasonable time
after commencement. If the reformation
is not completed by the due date (in-
cluding extensions) for filing the gift
tax return, the grantor or grantor’s
spouse must attach a statement to the
gift tax return stating that the reforma-
tion has been commenced, or will be
commenced within the 90-day period.
The proposed regulation also re-
quires that, in order to qualify as a
personal residence trust or a qualified
personal residence trust, the trust’s
governing instrument must prohibit the
trust from selling or transferring the
residence, directly or indirectly, to the
grantor, the grantor’s spouse, or an
entity controlled by the grantor or the
grantor’s spouse. A sale or transfer to
another grantor trust of the grantor or
the grantor’s spouse is considered a
sale or transfer to the grantor or the
grantor’s spouse. For these purposes,
the term grantor trust is a trust
treated as owned by the grantor or the
grantor’s spouse within the meaning of
sections 671–677. The term control is
defined in §25.2701–2(b)(5)(ii) and
(iii).
Proposed Effective Date
The amendments to §§25.2702–5(b)
and (c) are proposed to be effective for
trusts created after May 16, 1996.
Thus, a trust created after this date will
not satisfy the requirements of a
personal residence trust or a qualified
personal residence trust if the trust
document does not comply with the
regulations, as amended. Such a trust
would be eligible for reformation under
the proposed regulation.
Notwithstanding the proposed effec-
tive date, if the IRS examines a pre-
effective date trust and finds it incon-
sistent with the purposes of section
2702 or the regulations thereunder, the
IRS, by using established legal doc-
trines such as the substance over form
doctrine, may treat the trust as not
qualifying under section 2702. Thus,
for example, if the grantor actually
purchases the residence from the trust
pursuant to a right or option to
purchase that is stated in the trust
instrument or a collateral document, the
IRS may not treat the trust as a
qualified personal residence trust.
Special Analyses
It has been determined that this
notice of proposed rulemaking is not a
significant regulatory action as defined
in EO 12866. Therefore, a regulatory
assessment is not required. It has also
been determined that section 553(b) of
the Administrative Procedures Act (5
U.S.C. chapter 5) and the Regulatory
Flexibility Act (5 U.S.C. chapter 6) do
not apply to these regulations and,
therefore, a Regulatory Flexibility
Analysis is not required. Pursuant to
section 7805(f) of the Internal Revenue
Code, this notice of proposed rule-
making will be submitted to the Chief
Counsel for Advocacy of the Small
Business Administration for comment
on its impact on small business.
Comments and Public Hearing
Before this proposed regulation is
adopted as a final regulation, con-
sideration will be given to any written
comments (a signed original and eight
(8) copies) that are submitted timely to
the IRS. All comments will be avail-
able for public inspection and copying.
A public hearing has been scheduled
for July 24, 1996, at 10 a.m. in the
auditorium, Internal Revenue Building,
1111 Constitution Avenue NW., Wash-
ington, DC. Because of access restric-
tions, visitors will not be admitted
beyond the building lobby more than
15 minutes before the hearing starts.
The rules of 26 CFR 601.601(a)(3)
apply to the hearing.
Persons that wish to present oral
comments at the hearing must submit
written comments by July 15, 1996 and
an outline of the topics to be discussed
and the time to be devoted to each
topic. A period of 10 minutes will be
allotted each person for making
comments.
An agenda showing the scheduling
of speakers will be prepared after the
deadline for receiving outlines has
passed. Copies of the agenda will be
available free of charge at the hearing.

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Drafting Information
The principal author of this regu-
lation is Dale Carlton, Office of the
Assistant Chief Counsel (Passthroughs
and Special Industries). However, per-
sonnel from other offices of the IRS
and Treasury Department participated
in their development.
******
Proposed Amendment to the
Regulations
Accordingly, 26 CFR part 25 is
proposed to be amended as follows:
PART 25—GIFT TAX; GIFTS
MADE AFTER DECEMBER 31,
1954
Paragraph 1. The authority citation
for part 25 continues to read in part as
follows:
Authority: 26 U.S.C. 7805 ** *
Par. 2. Section 25.2702–5 is
amended as follows:
1.Paragraph (a) is redesignated as
paragraph (a)(1) and paragraph (a)(2) is
added.
2.In paragraph (b)(1), four new
sentences are added after the third
sentence.
3.Paragraph (c)(5)(ii)(C) is revised.
4.Paragraph (c)(9) is added.
The additions and revisions read as
follows:
§25.2702–5. Personal residence trusts.
(a)(1) In general. ** *
(2)Modification of trust. A trust that
does not comply with one or more of
the regulatory requirements under para-
graph (b) or (c) of this section will,
nonetheless, be treated as satisfying
these requirements if the trust is
modified, by judicial reformation (or
nonjudicial reformation if effective un-
der state law), to comply with the
requirements. The reformation must be
commenced within 90 days after the
due date (including extensions) for the
filing of the gift tax return reporting
the transfer of the residence under
section 6075 and must be completed
within a reasonable time after com-
mencement. If the reformation is not
completed by the due date (including
extensions) for filing the gift tax return,
the grantor or grantor’s spouse must
attach a statement to the gift tax return
stating that the reformation has been
commenced or will be commenced
within the 90-day period.
(b) * ** (1) ** * In addition, the
trust does not meet the requirements of
this section unless the governing instru-
ment prohibits the trust from selling or
transferring the residence, directly or
indirectly, to the grantor, the grantor’s
spouse, or an entity controlled by the
grantor or the grantor’s spouse, at any
time after the original term interest
during which the trust is a grantor
trust. For purposes of the preceding
sentence, a sale or transfer to another
grantor trust of the grantor or the
grantor’s spouse is considered a sale or
transfer to the grantor or the grantor’s
spouse. For purposes of this section, a
grantor trust is a trust treated as owned
by the grantor or the grantor’s spouse
within the meaning of sections 671–
677. The term control is defined in
§25.2701–2(b)(5)(ii) and (iii). ** *
******
(c) * * *
(5) * * *
(ii) * * *
(C)Sale proceeds. The governing
instrument may permit the sale of the
residence (except as set forth in para-
graph (c)(9) of this section) and may
permit the trust to hold proceeds from
the sale of the residence, in a separate
account.
******
(9)Sale of residence to grantor,
grantor’s spouse, or entity controlled
by grantor or grantor’s spouse. The
governing instrument must prohibit the
trust from selling or transferring the
residence, directly or indirectly, to the
grantor, the grantor’s spouse, or an
entity controlled by the grantor or the
grantor’s spouse during the original
term interest of the trust, or at any time
after the original term interest that the
trust is a grantor trust. For purposes of
the preceding sentence, a sale or trans-
fer to another grantor trust of the
grantor or the grantor’s spouse is
considered a sale or transfer to the
grantor or the grantor’s spouse. For
purposes of this section, a grantor trust
is a trust treated as owned by the
grantor or the grantor’s spouse within
the meaning of sections 671–677. The
term control is defined in §25.2701–
2(b)(5)(ii) and (iii).
******
Par. 3. Section 25.2702–7 is
amended as follows:
1.The first sentence of this section
is revised; and
2.A new sentence is added at the
end of the section, to read as follows:
§25.2702–7 Effective dates.
Except as provided in this section,
§§25.2702–1 through 25.2702–6 are
effective as of January 28, 1992. ** *
The fourth through seventh sentences
of §25.2702–5(b)(1) and §25.2702–
5(c)(9) are effective with respect to
trusts created after May 16, 1996.
Margaret Milner Richardson,
Commissioner of Internal Revenue.
(Filed by the Office of the Federal Register on
April 15, 1996, 8:45 a.m., and published in the
issue of the Federal Register for April 16,
1996, 61 F.R. 16623)
Announcement 96–23
The following text of a revenue
procedure is proposed in conjunction
with the publication of proposed reg-
ulations under chapter 3 of the Code
and related Code provisions, relating to
the withholding and reporting of certain
income paid to foreign persons. This
announcement proposes procedures for
a foreign person to apply to the
Internal Revenue Service for an agree-
ment in order for that foreign person to
be a qualified intermediary under
§ 1.1441–1(e)(5) of the proposed reg-
ulations under section 1441. Comments
regarding this announcement should be
submitted in the same manner and
within the same time period as are
prescribed for comments submitted un-
der the proposed regulations under
chapter 3 of the Code.
Rev. Proc. #
SECTION 1. PURPOSE
This revenue procedure provides
guidance to persons that consider enter-
ing into a withholding agreement with
the Internal Revenue Service (‘‘Serv-
ice’’) in order to be treated as a
Qualified Intermediary (‘‘QI’’) for pur-

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poses of section 1.1441–1 (e)(5) of the
Income Tax Regulations. The withhold-
ing agreements described in this reve-
nue procedure are relevant to payments
of interest, dividends, and gross pro-
ceeds on portfolio investments held
through one or more intermediaries.
This revenue procedure describes the
application procedures for a withhold-
ing agreement and the terms that the
Service will ordinarily require to be
incorporated into the agreement.
SEC. 2. BACKGROUND
.01Withholding and reporting on
payments to foreign persons. Payors of
certain types of income, which include
dividends, interest, and gross proceeds
described in sections 6042, 6049, and
6045, respectively, are generally re-
quired to determine whether the payee
or beneficial owner is a U.S. or a
foreign person for several purposes
under the Internal Revenue Code (the
‘‘Code’’). Under sections 1441(a) and
1442(a) of the Code, payments of U.S.
source interest and dividends (but not
gross proceeds from portfolio invest-
ments) are subject to a 30 percent tax
withheld at source by the withholding
agent if the income is paid to a non-
resident alien or a foreign corporation.
A foreign beneficial owner may benefit
from an exemption or reduced rate
under the Code, the regulations, or an
income tax treaty. Under section 3406
of the Code, a payor of dividends,
interest, and gross proceeds must ob-
tain a Form W–9 from the payee or
backup withhold at a 31 percent rate
unless an exception applies or the
payee furnishes a certificate of foreign
status on Form W–8.
.02Proof of payee’s or beneficial
owner’s status. The regulations under
section 1441, 6042, 6049, and 6045
prescribe the manner in which a
beneficial owner or payee may, with
respect to these types of payments,
certify to a withholding agent or payor
that it is a foreign person and, if
applicable, that a reduced rate of
withholding at source should apply. For
this purpose, a withholding agent may
generally rely on a certificate of
foreign status (Form W–8) or documen-
tary evidence (see procedures described
in §1.1441–1(e)(2)(ii) and §1.6049–5-
(c)(1) and (2)). Alternative certification
procedures may be used in the case of
payments made outside the United
States with respect to an offshore
account.
03.Certification through nominees
or agents—intermediary withholding
certificate. A QI may provide an
intermediary withholding certificate on
behalf of its account holders or part-
ners, including intermediaries or other
QI’s. See §1.1441–1(e)(5).
SEC. 3. APPLICATION FOR
WITHHOLDING AGREEMENT
01.Eligible person and eligible fi-
nancial institution. An eligible person
is a person described in §1.1441–1(e)-
(5)(ii) that may apply for a withholding
agreement under this revenue proce-
dure. An eligible financial institution
is an eligible person described in
§1.1441–1(e)(5)(ii)(A) (a clearing orga-
nization defined in section 1.163–5(c)-
(2)(i)(D)(8) or a financial institution
defined in §1.165–12(c)(1)(iv)).
02.Pre-application conference. An
eligible person interested in a with-
holding agreement under this revenue
procedure may request one or more
pre-application conferences with the
Assistant Commissioner (International),
Foreign Payments Division, to explore
informally the benefits and burdens
associated with such an agreement. The
conference provides an opportunity to
address such matters as the scope of
the agreement, available alternatives,
special issues regarding the institution’s
ability to comply with the terms of the
agreement, the legal status of the
agreement under local law, and the
nature of documentation, record-
keeping, reporting, verification, with-
holding and remittances of tax that may
be required under the agreement.
03.Where to Apply. An eligible
person may apply for a withholding
agreement by submitting a written
request to the Assistant Commissioner
(International), Foreign Payments Divi-
sion CP:IN:I:WT, 950 L’Enfant Plaza,
Washington D.C. 20024.
04.Content of Application—Eligible
Financial Institution. The application
shall indicate that the applicant is an
eligible financial institution and that it
requests a withholding agreement with
the Service pursuant to this revenue
procedure. In the case of an eligible
financial institution, the application
shall include the information described
in this section 3.04(i) through (viii).
Upon review of the application, the
Service may request additional infor-
mation and documentation.
(i)The applicant’s name, address,
and employer identification number. If
the applicant does not have an em-
ployer identification number, a com-
pleted Form SS–4 must be included to
obtain such number.
(ii)A description of the applicant
including the country under whose laws
the applicant is created or organized
and status of the applicant (corporation,
partnership, trust, pool, etc.) under such
country’s laws.
(iii)A list of the applicant’s officers
and directors, and a list of the em-
ployees who are responsible parties for
performance under the agreement.
(iv)An explanation of the branches,
if any, intended to be covered by the
agreement and a description of their
location.
(v)An explanation of the applicant’s
‘‘know-your-customer’’ practices and
procedures for opening accounts, iden-
tifying customers, and communication
with customers, and the extent to which
they are mandated and verified under
local law and regulations applicable at
each location intended to be covered by
the agreement, and the penalties or
sanctions that may apply under local
law in the event of a failure to comply
with such procedures. Supporting docu-
mentation must be included.
(vi)An explanation of the account
agreements and other account docu-
ments used by the applicant in its
account relationships with its customers
(or partners) at each location intended
to be covered by the agreement.
(vii)Information regarding the num-
ber of account holders (or partners)
likely to be covered by an intermediary
certificate and the aggregate value of
estimated U.S. investments associated
with the account holders (or partners).
(viii)Information regarding govern-
mental or other supervision to which
the applicant is subject at each location
intended to be covered by the
agreement.
.05Content of Application—Eligible
Persons Other than Financial Institu-
tions. The application shall indicate
that the applicant is an eligible person,
other than an eligible financial institu-
tion, and that it requests a withholding
agreement with the Service pursuant to
this revenue procedure. In the case of
an applicant other than an eligible
financial institution, the application
shall include the information described
in this section 3.05 (i) through (viii).
Upon review of the application, the
Service may request additional infor-
mation and documentation.

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(i)The applicant’s name, address,
and employer identification number. If
the applicant does not have an em-
ployer identification number, a com-
pleted Form SS–4 must be included to
obtain such number.
(ii)The reason that the applicant
wishes to conclude a withholding
agreement.
(iii)A description of the applicant
including the country under whose laws
the applicant is created or organized
and status of the applicant (corporation,
partnership, trust, pool, etc.) under such
country’s laws.
(iv)A list of the applicant’s officers
and directors, and a list of the em-
ployees who are responsible parties for
performance under the agreement.
(v)An explanation of the branches,
if any, intended to be covered by the
agreement and a description of their
location.
(vi)Information regarding the num-
ber of account holders (or partners)
likely to be covered by an intermediary
certificate and the aggregate value of
estimated U.S. investments associated
with the account holders (or partners).
(vii)An explanation of the appli-
cant’s ‘‘know-your-customer’’ practices
and procedures, if any, and the extent
to which they are mandated and ver-
ified under local law and regulations
applicable at each location intended to
be covered by the agreement, and the
penalties or sanctions that may apply
under local law in the event of a failure
to comply with such procedures. Sup-
p o r t i n g d o c u m e n t a t i o n m u s t b e
included.
(viii)Information regarding govern-
mental or other supervision to which
the applicant is subject at each location
intended to be covered by the
agreement.
SEC. 4. WITHHOLDING
AGREEMENT
01.In general. The withholding
agreement described under §1.1441–
1(e)(5)(iii) is an agreement between the
Service and an eligible person pursuant
to this revenue procedure, by which the
Service agrees to consider the entity as
a QI in consideration for the entity’s
agreement to undertake specified re-
sponsibilities. These responsibilities are
assumed under the authority of chapter
3, chapter 61, and section 3406 of the
Code. The purpose of a withholding
agreement is to specify the extent to
which, and the manner in which, the
responsibilities imposed under these
statutory provisions (and the regula-
tions under these provisions) shall
apply to a QI. The agreement will
generally include procedures designed
to document the identity of beneficial
owners, maintain records, and report
information to the Service. Withholding
agreements will also address proce-
dures to insure compliance with the
terms of the agreement. The terms of a
withholding agreement may vary from
case to case depending upon such
factors as local laws and practices
dealing with bank secrecy, know-your-
customer procedures, supervisory con-
trols, tax reporting requirements, infor-
mation exchange under an income tax
treaty, the financial stature of the
applicant, and the types of internal
controls and record keeping procedures
which the entity has in effect.
02.Procedures regarding intermedi-
ary withholding certificate.
(a)In general. The withholding
agreement will specify that a QI may
furnish an intermediary certificate with
respect to interest, dividends and bro-
ker proceeds for which a Form W-8 or
Form W–9 would otherwise be required
to be furnished to the U.S. withholding
agent or payor under section 1441,
1442, 3406, 6042, 6045, or 6049.
(b)Tiered intermediary certificates.
Under the agreement, a QI may agree
to accept an intermediary certificate
from another QI and base its own
certification on the intermediary certifi-
cate received from another QI. For
example, where a U.S. withholding
agent makes a payment to QI1, that, in
turn, makes a payment to QI2, the
agent may rely upon the intermediary
certificate furnished by QI1; QI1 may
rely on the intermediary certificate that
QI2 furnishes to QI1. QI2’s certificate
is not required to be furnished to the
withholding agent.
(c)Designation of primary withhold-
ing responsibilities. A QI is a with-
holding agent for purposes of chapter 3
of the Code and a payor for purposes
of section 3406 and chapter 61 of the
Code. Therefore, in order to clarify
whether the U.S. withholding agent or
the QI must actually withhold any
amount of tax due, the withholding
agreement must provide whether the QI
will undertake primary responsibility
with respect to the withholding of tax
on payments to beneficial owners or
U.S. payees. The QI may agree to
assume primary withholding respon-
sibility only in part. For example, the
QI may be willing to assume informa-
tion reporting and backup withholding
responsibilities for its U.S. customers
and thus would assume primary with-
holding responsibility, but not agree to
assume primary withholding respon-
sibility on payments to its foreign
customers.
(i)Applicable procedures if QI as-
sumes primary withholding respon-
sibility. A QI that assumes primary
withholding responsibility under a
withholding agreement must satisfy the
requirements described in this section
(i) in connection with the relevant
payments. For purposes of determining
its withholding and reporting respon-
sibilities, a QI may rely upon the
presumptions of a payee’s status de-
scribed in §1.1441–1(f).
(A)Provide to the withholding agent
or other QI an intermediary withhold-
ing certificate indicating the extent to
which the QI assumes primary with-
holding responsibility.
(B)Withhold the amount of tax
required under sections 1441, 1442, or
3406, except to the extent of payments
made to another QI that has provided
an intermediary withholding certificate
indicating that it has assumed primary
withholding responsibility.
(C)Deposit tax and make returns
under the Code and the regulations
pertaining to payments made by the QI,
except as may be otherwise specified in
the agreement with the Service.
(ii)Applicable procedures if QI does
not assume primary withholding re-
sponsibility. A QI that does not assume
primary withholding responsibility un-
der the agreement must satisfy the
requirements described in this section
(ii) in connection with the relevant
payments.
(A)Provide to a withholding agent
or other QI an intermediary certificate
indicating that the QI does not assume
primary withholding responsibility.
(B)Identify the relevant classes of
assets covered by the intermediary
withholding certificate (including the
class of assets covered by another
intermediary certificate for which the
issuing QI agrees to assume primary
withholding responsibility).
(C)Certify the status of each class
(i.e. whether the assets are held by U.S.
or foreign persons) and the applicable
rate of withholding tax.

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(D)Provide to the withholding agent
or other QI W–9s for U.S. owners that
are not exempt recipients and names
and addresses of U.S. owners that are
exempt recipients.
(iii)Definition of class of asset. A
class of assets is any group of assets
that produces the same type of income
(e.g. interest or dividends), that is
subject to withholding at the same rate,
that is held either by foreign persons or
the same U.S. person, and for which
the QI giving the intermediary certifi-
cate has not assumed primary withhold-
ing responsibility. For example, an
eligible financial institution has foreign
customers residing in two treaty coun-
tries (the rate of tax permitted on
dividend income is 15% under both
treaties) and U.S. customers. All
customers earn U.S. source dividend
and portfolio interest. The institution, if
a QI that did not assume primary
withholding responsibility for all of its
payments, would furnish one intermedi-
ary certificate identifying the different
classes of assets: assets producing
portfolio interest earned by foreign
customers claiming the portfolio inter-
est exemption at source; assets produc-
ing dividend income earned by foreign
customers claiming the 15% reduced
rate at source; assets producing interest
income earned by each U.S. customer;
and assets producing dividends earned
by each U.S customer. Assets may be
identified by account. That is, the QI’s
intermediary certificate may indicate
that all assets held in a particular
account represent assets that produce
portfolio interest for foreign persons.
Any beneficial owner or payee for
whom the QI does not hold all of the
required documentation as specified
under the withholding agreement must
be identified as a separate class and
treated, under the presumptions de-
scribed in §1.1441–1(f)(2)(i)(A) as a
U.S. payee that is not an exempt
recipient.
(iv)Disclosure of identify of benefi-
cial owner or payee by QI that does
not assume primary withholding re-
sponsibility. Generally, an intermediary
certificate provided by a QI that does
not assume primary withholding re-
sponsibility does not disclose the iden-
tity of the beneficial owners. The
documentation supporting the claim of
foreign status and entitlement to treaty
benefits need not be attached to the
intermediary withholding certificate.
However, if the QI does not assume
primary withholding responsibility for
payments made to U.S. persons and,
therefore, has not agreed to report U.S.
source payments made to U.S. persons,
the documentation supporting the
claims of U.S. status must be attached
to the intermediary certificate so that
the withholding agent/payor may report
or backup withhold with respect to
such payments.
03.Certification and documentation
requirements.
(a)In general. The withholding
agreement will provide that an account
holder is appropriately accounted for in
an intermediary withholding certificate
only if the QI has obtained the type of
certification or documentation for the
account holder as the agreement will
specify. Generally, for account holders
that are beneficial owners, the QI must
agree to be subject to the same
certification or documentation require-
ments as apply to withholding agents
under section 1441 and the regulations
thereunder and to payors under sections
6042, 6045, and 6049 and the regula-
tions thereunder. For this purpose, a
withholding agreement will specify the
extent to which a QI may rely upon
Form W–8 that does not state a tax-
payer identification number. The QI
may use such substitute form as the
Service may approve under the agree-
ment (including certifications incorpo-
rated into a form in use by the QI for
the opening of new accounts). How-
ever, the agreement may provide for
other types of acceptable documenta-
tion. The ability to use documentation
different from that required under
regulations will depend upon existing
documentation procedures used by the
QI to document the identity, na-
tionality, and residence of beneficial
owners and the nature of supervisory
controls and reporting procedures to
which it is subject under local laws.
Substitute documentation must approxi-
mate the evidentiary value of the
documentation required under the
regulations.
(b)Standards of reliability. The re-
liability of any documentation will be
evaluated on the basis of the type of
information stated on the document, the
source document, if any, used to sub-
stantiate the information on the docu-
ment, the issuance procedures used,
and the ease with which it can be
counterfeited. Copies of documents will
generally be acceptable if the QI
certifies that the documents are correct
copies of the original documents.
(c)Account holders that are nomi-
nees. If an account holder is not acting
for its own account (e.g., is a nominee
or agent for the beneficial owner) and
is not a QI, the QI must obtain
certification or documentation regard-
ing the beneficial owner in the manner
specified in the agreement. It must then
either transmit such certification or
documentation to the next intermediary
in the chain or include the beneficial
owner in its intermediary certificate. In
the latter situation, the QI is respon-
sible for the correctness and complete-
ness of the certification or documenta-
tion relied upon in the same manner
and to the same extent as if the
beneficial owner were a direct account
holder with the QI.
04.Certification with respect to
claim of tax treaty benefits. A QI may
also agree to certify the residence of an
account holder for purposes of claiming
benefits under an income tax treaty. If
the account holder does not have a
TIN, the QI may either accept a
certificate of tax residence from the
appropriate tax authority in the country
with which the United States has an
income tax treaty or agree to maintain
appropriate documentary evidence re-
garding residence of the account holder
in the treaty country.
05.Acceptance agents. Under a
withholding agreement, the QI may
agree to act as an acceptance agent for
purposes of section 6109 of the Code
and the regulations thereunder. [See
Rev. Proc. xx-xx for the duties and
obligations of an acceptance agent.]
(a)Assistance with obtaining a tax-
payer identification number. A QI that
acts as an acceptance agent with
respect to obtaining identification num-
bers from the Service for its account
holders shall agree to provide a TIN
application form to the account holder
(i.e., a Form W–7, Application for IRS
Individual Taxpayer Identification
Number, or a Form SS–4, Application
for Employer Identification Number)
and to assist in the preparation and
submission of the TIN application
forms to the Service. The QI may use
such substitute form as the Service may
approve under the agreement (including
the terms of forms SS–4 and W–7 into
a form in use by the QI for the opening
of new accounts). The forms or sub-
stitute form, together with required
documentation, may be forwarded to
the Service by the QI. The QI may act
as agent for the applicant regarding any

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additional correspondence necessary in
connection with the application. The
Service will release the TIN to the QI
on behalf of the applicant and the QI
will acknowledge receipt on behalf of
the applicant.
(b)Certification on behalf of the
applicant. A QI that is an acceptance
agent may, instead of forwarding the
required documentation to the Service,
certify that it has reviewed the required
documentation and that it complies
with the Service requirements. In such
a case, only the TIN application form
(or a substitute form) must be submit-
ted to the Service. Further, in appropri-
ate cases, the QI may execute the TIN
application form on behalf of the
applicant.
(c)Certification of residence in a
treaty country. In the case of an
applicant claiming residence in a coun-
try with which the United States has an
income tax treaty, the application and
subsequent issuance of a TIN will
serve as certification of residence in
that country pursuant to §1.1441–6(c)-
(2)(iii). If the TIN is issued on the
basis of a QI’s certification, the QI will
agree to notify the Service when the
account holder’s address changes to
another country (based on information
obtained by the QI in the ordinary
course of business or as otherwise
specified under the agreement) and
when the account holder terminates its
relationship with the QI.
06.Record-keeping obligations. The
QI will agree that, for purposes of
determining its compliance with the
withholding agreement, it will maintain
a record of the documentation obtained
and reviewed pursuant to the documen-
tation obligations set forth in the
agreement. The documentation with
respect to any account holder shall be
maintained for as long as the account
holder maintains an account relation-
ship with the QI to which the agree-
ment applies and for a period of no less
than 3 years from the date such account
relationship ceases or for such other
reasonable period as the Service will
prescribe in the agreement.
07.Reporting obligations. Generally,
a QI that assumes primary withholding
responsibility for payments relating to a
class of assets will be required to make
returns and provide information to the
Service and beneficial owners or
payees as is required under the Code
and regulations on an annual basis with
respect to payments on such class of
assets. However, in the case of a QI
that is an eligible financial institution,
these requirements may be modified
under the withholding agreement. The
withholding agreement may modify or
waive the obligation to report benefi-
cial owner information to the Service if
access to this information is otherwise
available to the Service under other
procedures. For example, the obligation
to report to the Service may be waived
to the extent the QI otherwise reports
the similar information to its own tax
authorities and such information is
accessible to the Service under the
exchange of information provisions of
an applicable income tax treaty. Sim-
ilarly, certain reports may be unneces-
sary where the QI agrees to verification
procedures as described in section 4.08,
below. The withholding agreement may
modify or waive the obligation to
furnish a statement to a beneficial
owner. The beneficial owner must,
however, be able to obtain such a
statement on request. A QI that as-
sumes primary withholding respon-
sibility for payments made to a U.S.
payee shall agree to report on Form
1099 on U.S. source amounts paid to a
U.S. payee.
08.Verification procedures.
(i)In general. The withholding
agreement may specify the records and
account information which the QI
agrees to make available to the Service
for inspection and the procedures for
carrying out such inspection. In all
cases, the Service must be able to
verify that the QI has adequate proce-
dures in effect to identify its account
holders (or partners) and determine
their nationality and country of re-
sidence. In addition, the Service may
require procedures enabling it to verify
compliance by the QI with the agree-
ment with respect to specific accounts.
(ii)Special procedures for eligible
financial institutions. (A) Approved
external auditors. In appropriate cases,
the Service may rely on audits of an
eligible financial institution performed
by the institution’s approved external
auditors. If, for example, under an
income tax treaty or local laws, the
Service would be given access to ap-
propriate auditor’s records to verify
compliance, the Service may audit such
records in lieu of auditing the institu-
tion’s records. For this purpose, records
may include workpapers, reports pre-
pared by, and the methodology
employed by, the approved external
auditors. In order for such an arrange-
ment to be approved by the Service, an
auditor must be subject to regulatory
supervision under the laws of the
country in which a significant part of
the intermediary activities under the
agreement are expected to occur, its
internal procedures must require it to
verify that the financial institution
complies with the terms of the with-
holding agreement and to report non-
compliance findings under the agree-
ment in the same manner as it is
required to report other findings of
non-compliance with applicable local
laws and regulatory requirements, and
its the relevant records (i.e., work-
papers and reports) must be available
to the Service upon request.
(B)Verification of specific account
information for eligible financial insti-
tutions. If an eligible financial institu-
tion is not subject to audit under the
approved external auditor procedure,
then the withholding agreement shall
contain procedures for auditing infor-
mation pertaining to specific accounts.
Generally, an eligible financial institu-
tion that complies with the filing
requirements on Forms 1042 and 1042S
(or otherwise makes account holder
information available to the Service)
may be exempted from normal audit
procedures or subject to abbreviated
audits. Where a QI has agreed to
certify to the Service in connection
with a TIN application based upon
documentation it has obtained and
reviewed, it must also agree to furnish
the documentation to the Service upon
written request in such manner as the
Service and the QI will mutually agree.
In order to conduct periodic com-
pliance checks, the Service may rely on
sampling techniques to assure re-
liability of the examination while en-
suring the least amount of disruption to
the financial institution. The withhold-
ing agreement will specify the manner
in which Service compliance checks
will take place. In appropriate cases,
assistance may be obtained from the
tax authorities of the country where the
QI resides.
09.Guarantee of payment. The QI
must, if required by the Service, obtain
a letter of credit, bond, or other surety
in such amount as the QI and the
Service may agree upon, in order to
secure any withholding liability of the
QI. The amount of the bond or letter of
credit must approximate the risk of
underwithholding. Factors to be consid-

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ered in this regard include the amount
of U.S. investments made through the
QI, the number of beneficial owners
making U.S. investments, the type of
investment and the characteristics of
the beneficial owners, and the degree
of reporting by the QI to the Service.
10.Approval and Execution. A with-
holding agreement shall be signed by
the authorized representative of the
eligible person and the Service. The
Assistant Commissioner (International)
shall sign on behalf of the Service
upon approval by the Associate Chief
Counsel (International).
11.Expiration, Termination and De-
fault.
(a)Term and events of termination.
Ordinarily, the period of the withhold-
ing agreement shall be six years, and
the agreement may be renewed for
further six year periods as specified in
section 12. The withholding agreement
may otherwise terminate earlier, i.e., 30
days after delivery of notice of termi-
nation by the QI to the Service. The
Service may also terminate the agree-
ment prior to its term, i.e., 30 days
after delivery to the QI of a notice of
termination. The Service cannot give
notice of termination until thirty days
after it has delivered a notice of
default. The Service may deliver a
notice of default at any time after an
event of default under the withholding
agreement has occurred.
(b)Events of default. Events of
default include the determination upon
audit by the Service that significant
underwithholding has occurred, that
incorrect reporting or a failure to report
with respect to a significant number of
accounts has occurred, that the QI has
failed to comply with the procedures
required by the agreement and the
failure raises a significant risk that
significant underwithholding or under-
reporting may have occurred. The
withholding agreement will define
when underwithholding or underreport-
ing is deemed to be significant. An
event of default shall also be deemed
to occur if the QI has failed to perform
any other duty or obligation required of
it under the withholding agreement, the
QI has misrepresented information on
an intermediary withholding certificate,
or the QI had actual knowledge at the
time a payment was made that informa-
tion (otherwise required to be provided
on withholding certificates described in
§1.1441–1(e)(1), as may be modified
under the agreement) regarding the
beneficial owner or the payee was
lacking, incorrect, or unreliable. The QI
may respond to the notice of default by
making an offer to cure within thirty
days. The Service shall accept or reject
the offer to cure, or make a counter-
proposal within ten days.
12.Renewal. A QI that wishes to
renew a withholding agreement must
submit an application for renewal to
the Service at least six months prior to
the expiration of the withholding agree-
ment. The application for renewal shall
contain the same information required
in the application and shall note any
changes that have occurred in the
information since the previous applica-
tion. Before approval of any renewal of
the withholding agreement, the Service
may conduct an audit of the QI by
correspondence making use of statisti-
cal sampling techniques or on the basis
of spot checking.
SEC. 5. LISTING OF QI’s
The Service may periodically publish
in the Internal Revenue Bulletin a list
of the QI’s that have a withholding
agreement in effect with the Service
and of those whose withholding agree-
ment has been terminated or suspended.
SEC. 6. EFFECTIVE DATE
This revenue procedure is effective
on the date of its publication in the
Internal Revenue Bulletin.
DRAFTING INFORMATION
The principal author of this revenue
procedure is Carl Cooper of the Office
of the Associate Chief Counsel (Inter-
national). For further information re-
garding this revenue procedure, please
contact either Carl Cooper on (202)
622-3840 or John Manton of the
Foreign Payments Division on (202)
874-1800.
Requirements for Tax Exempt Section
501(c)(5) Organizations; Hearing
Announcement 96–33
AGENCY: Internal Revenue Service
(IRS), Treasury.
ACTION: Notice of public hearing on
proposed rulemaking.
SUMMARY: This document announces
a hearing on proposed regulations
published on December 21, 1995;
which clarify requirements of section
501(c)(5) to provide needed guidance
to organizations as to the requirements
an organization must meet in order to
be exempt from tax.
DATES: The public hearing will be
held on Wednesday, June 5, 1996,
beginning at 10:00 a.m. Requests to
speak and outlines of oral comments
must be received by Wednesday, May
15, 1996.
ADDRESSES: The public hearing will
be held in the Internal Revenue Service
Commissioner’s Conference Room,
Room 3313, Internal Revenue Building,
1111 Constitution Avenue, N.W.,
Washington, D.C. 20044. Requests to
speak and outlines of oral comments
should be mailed to the Internal Reve-
nue Service, P.O. Box 7604, Ben
Franklin Station, Attn: CC:DOM:
CORP:R [EE–53–95], Room 5228,
Washington, D.C., 20044.
FOR FURTHER INFORMATION
CONTACT: Evangelista Lee of the
Regulations Unit, Assistant Chief
Counsel (Corporate), (202) 622-8452
(not a toll-free number).
SUPPLEMENTARY INFORMATION:
The subject of the public hearing is
proposed amendments to the Income
T a x R e g u l a t i o n s u n d e r s e c t i o n
501(c)(5) of the Internal Revenue
Code. The proposed regulations ap-
peared in the Federal Register for
Thursday, December 21, 1995 (60 FR
66228 [EE–53–95, 1996–5 I.R.B. 23]).
The rules of §601.601(a)(3) of the
‘‘Statement of Procedural Rules’’ (26
CFR Part 601) shall apply with respect
to the public hearing. Persons who
have submitted written comments
within the time prescribed in the notice
of proposed rulemaking and who also
desire to present oral comments at the
hearing on the proposed regulations
should submit not later than Wednes-
day, May 15, 1996, an outline of the
oral comments/testimony to be pre-
sented at the hearing and the time they
wish to devote to each subject.
Each speaker (or group of speakers
representing a single entity) will be
limited to 10 minutes for an oral

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presentation exclusive of the time
consumed by the questions from the
panel for the government and answer
thereto.
Because of controlled access restric-
tions, attenders cannot be admitted
beyond the lobby of the Internal
Revenue Building until 9:45 a.m.
An agenda showing the scheduling
of the speakers will be made after
outlines are received from the persons
testifying. Copies of the agenda will be
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
April 4, 1996, 8:45 a.m., and published in the
issue of the Federal Register for April 5, 1996,
61 F.R. 15204)
Hedging Transaction by Members of a
Consolidated Group; Correction
Announcement 96–34
AGENCY: Internal Revenue Service,
Treasury.
A C T I O N : C o r r e c t i o n o f f i n a l
regulations.
SUMMARY: This document contains a
correction to the final regulations [TD
8653 [1996–12 I.R.B. 4]] which were
published in the Federal Register for
Monday, January 8, 1996 (61 FR 517).
The final regulations relate to the
character and timing of gain or loss
from certain hedging transactions en-
tered into by members of a consoli-
dated group.
EFFECTIVE DATE: February 7, 1996.
FOR FURTHER INFORMATION
CONTACT: Jo Lynn Ricks of the
Office of the Assistant Chief Counsel
(Financial Institutions and Products),
(202) 622-3920 (not a toll-free
number).
SUPPLEMENTARY INFORMATION:
Background
The final regulations which are the
subject of this correction are under
sections 446 and 1221 of the Internal
Revenue Code.
Need for Correction
As published, TD 8653 contains an
error that is in need of correction.
Correction of Publication
Accordingly, the publication of the
final regulations which is the subject of
FR Doc. 96–178, is corrected as
follows:
§1.1221–2 [Corrected]
On page 520, column 2, §1.1221–2,
paragraph (d)(2)(iv), last line, the lan-
guage ‘‘after the date so indicated.’’ is
corrected to read ‘‘after the date so
indicated. The election may be revoked
o n l y w i t h t h e c o n s e n t o f t h e
Commissioner.’’
Cynthia E. Grigsby,
Chief, Regulations Unit,
Assistant Chief Counsel (Corporate).
(Filed by the Office of the Federal Register on
March 20, 1996, 8:45 a.m., and published in
the issue of the Federal Register for March 21,
1996, 61 F.R. 11547)
Certain Transfers of Domestic Stock
or Securities by U.S. Persons to
Foreign Corporations; Correction
Announcement 96–35
AGENCY: Internal Revenue Service,
Treasury.
ACTION: Correction to temporary
regulations.
SUMMARY: This document contains a
correction to temporary regulations (TD
8638 [1996–5 I.R.B. 5]), which were
published in the Federal Register Tues-
day, December 26, 1995 (60 FR
66739), that amend the Income Tax
Regulations with respect to certain
transfers of stock or securities of
domestic corporations by United States
persons to foreign corporations pur-
suant to the corporate organization,
reorganization, or liquidation provisions
of the Internal Revenue Code. The
temporary regulations also remove cer-
tain parts of the existing temporary
regulations regarding transfers by U.S.
persons of stock or securities of both
domestic and foreign corporations.
EFFECTIVE DATE: December 26,
1995.
FOR FURTHER INFORMATION
CONTACT: Philip L. Tretiak, (202)
622-3860 (not a toll-free number).
SUPPLEMENTARY INFORMATION:
Background
The temporary regulations that are
the subject of this correction is under
section 367 Internal Revenue Code.
Need for Correction
As published, the temporary regula-
tions (TD 8638) contains an error
which may prove to be misleading and
is in need of clarification.
Correction of Publication
Accordingly, the publication of the
final regulations (TD 8638), which
were the subject of FR Doc. 95-30829,
is corrected as follows:
On page 66739, column 2, in the
preamble under the paragraph heading
‘‘Applicability and Effective Dates’’,
line 9, the language ‘‘for transfers
occurring January 25, 1996.’’ is cor-
rected to read ‘‘for transfers occurring
after January 25, 1996.’’
Cynthia E. Grigsby,
Chief, Regulations Unit,
Assistant Chief Counsel (Corporate).
(Filed by the Office of the Federal Register on
March 20, 1996, 8:45 a.m., and published in
the issue of the Federal Register for March 21,
1996, 61 F.R. 11550)
Controlling Corporation’s Basis
Adjustment in its Controlled
Corporation’s Stock Following a
Triangular Reorganization; Correction
Announcement 96–36
AGENCY: Internal Revenue Service
(IRS), Treasury.
A C T I O N : C o r r e c t i o n t o f i n a l
regulations.
SUMMARY: This document contains a
correction to final regulations [TD
8648 [1996–10 I.R.B. 23]] which were
published in the Federal Register for
Thursday, December 21, 1995 (60 FR
66077). The final regulations relate to
the rules for adjusting the basis of a

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controlling corporation in the stock of a
controlled corporation as the result of
certain triangular reorganizations in-
volving the stock of the controlling
corporation.
EFFECTIVE DATE: December 21,
1995.
FOR FURTHER INFORMATION
CONTACT: Curt Cutting, (202)
622-7550 (not a toll-free number).
SUPPLEMENTARY INFORMATION:
Background
The final regulations that are the
subject of this correction are under
sections 358, 1032, and 1502 of the
Internal Revenue Code.
Need for Correction
As published, TD 8648 contains a
typographical error that is in need of
clarification.
Correction of Publication
Accordingly, the publication of the
final regulations which are the subject
of FR Doc. 95–30875, is corrected as
follows:
§ 1.358–6 [Corrected]
On page 66080, column 3, §1.358–6
(c)(4), in paragraph (d) of Example 2.,
line 9, the language ‘‘Under 1.358–6
(c)(2)(i)(A), P’s basis in its T’’ is
corrected to read ‘‘Under §1.358–6
(c)(2)(i)(A), P’s basis in its T.’’
Cynthia E. Grigsby,
Chief, Regulations Unit,
Assistant Chief Counsel (Corporate).
(Filed by the Office of the Federal Register on
March 20, 1996, 8:45 a.m., and published in
the issue of the Federal Register for March 21,
1996, 61 F.R. 11547)
Consolidated Groups and Controlled
Groups—Intercompany Transactions
and Related Rules; Correction
Announcement 96–37
AGENCY: Internal Revenue Service,
Treasury.
A C T I O N : C o r r e c t i o n t o f i n a l
regulations.
SUMMARY: This document contains
corrections to final regulations [TD
8597 [1995–32 I.R.B. 6]] which were
published in the Federal Register for
Tuesday, July 18, 1995 (60 FR 36671).
The final regulations amend the inter-
company transaction system of the
consolidated return regulations.
EFFECTIVE DATE: July 18, 1995.
FOR FURTHER INFORMATION
CONTACT: Roy Hirschhorn of the
Office of Assistant Chief Counsel
(Corporate), (202) 622-7770 (not a toll-
free number).
SUPPLEMENTARY INFORMATION:
Background
The final regulations that are the
subject of these corrections are under
sections 1502 and 267 of the Internal
Revenue Code.
Need for Correction
As published, TD 8597 contains
errors that are in need of correction.
Correction of Publication
Accordingly, the publication of the
final regulations which is the subject of
FR Doc. 95–16973, is corrected as
follows:
On page 36679, under amendatory
instruction ‘‘Par. 2.,’’ the first column
in the table is corrected by removing
the reference to ‘‘1.263A–1T(b)(2)-
(vi)(B)’’ and in the seven entries for
‘‘1.263A–1T’’ correct the number
‘‘1.263A–1T’’ to read ‘‘1.263A–7T.’’
Cynthia E. Grigsby,
Chief, Regulations Unit,
Assistant Chief Counsel (Corporate).
(Filed by the Office of the Federal Register on
March 27, 1996, 8:45 a.m., and published in
the issue of the Federal Register for March 28,
1996, 61 F.R. 13762)

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Definition of Terms
Revenue rulings and revenue proce-
dures (hereinafter referred to as ‘‘rul-
ings’’) 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
published position, but the prior posi-
tion 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 princi-
ple 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.
Distinguished describes a situation
where a ruling mentions a previously
published ruling and points out an
essential 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 applies to both A and B, the prior
ruling is modified because it corrects a
published position. (Compare with am-
plified and clarified, above).
Obsoleted describes a previously
published ruling that is not considered
determinative with respect to future
transactions. This term is most com-
monly 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 substance has
been included in regulations subse-
quently adopted.
Revoked describes situations where
the position in the previously published
ruling 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 pub-
lished under the 1939 Code and regula-
tions. 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
period 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 de-
scribes a situation where the substance
of a previously published 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
superseded.
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 published 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
formerly 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.

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Numerical Finding List
1
Bulletins 1996–1 through 1996–17
Announcements:
96–1, 1996–2 I.R.B. 57
96–2, 1996–2 I.R.B. 57
96–3, 1996–2 I.R.B. 57
96–4, 1996–3 I.R.B. 50
96–5, 1996–4 I.R.B. 99
96–6, 1996–5 I.R.B. 43
96–7, 1996–5 I.R.B. 44
96–8, 1996–7 I.R.B. 56
96–9, 1996–8 I.R.B. 30
96–10, 1996–8 I.R.B. 30
96–11, 1996–9 I.R.B. 11
96–12, 1996–11 I.R.B. 30
96–13, 1996–12 I.R.B. 33
96–14, 1996–12 I.R.B. 35
96–15, 1996–11 I.R.B. 9
96–16, 1996–13 I.R.B. 22
96–17, 1996–13 I.R.B. 22
96–18, 1996–15 I.R.B. 15
96–19, 1996–15 I.R.B. 15
96–20, 1996–15 I.R.B. 15
96–21, 1996–15 I.R.B. 15
96–22, 1996–15 I.R.B. 16
96–23, 1996–16 I.R.B. 30
96–24, 1996–16 I.R.B. 35
96–25, 1996–17 I.R.B. 13
96–26, 1996–17 I.R.B. 13
96–27, 1996–17 I.R.B. 16
96–28, 1996–17 I.R.B. 16
96–29, 1996–17 I.R.B. 17
96–30, 1996–17 I.R.B. 17
96–31, 1996–17 I.R.B. 18
96–32, 1996–17 I.R.B. 18
Delegations Orders:
232 (Rev. 2), 1996–7 I.R.B. 49
239 (Rev. 1), 1996–7 I.R.B. 49
Notices:
96–2, 1996–2 I.R.B. 15
96–1, 1996–3 I.R.B. 30
96–4, 1996–4 I.R.B. 69
96–5, 1996–6 I.R.B. 22
96–6, 1996–5 I.R.B. 27
96–7, 1996–6 I.R.B. 22
96–8, 1996–6 I.R.B. 23
96–9, 1996–6 I.R.B. 26
96–10, 1996–7 I.R.B. 47
96–11, 1996–8 I.R.B. 19
96–12, 1996–10 I.R.B. 29
96–13, 1996–10 I.R.B. 29
96–14, 1996–12 I.R.B. 11
96–15, 1996–13 I.R.B. 19
96–16, 1996–13 I.R.B. 20
See footnote at the end of list.
Notices—Continued
96–17, 1996–13 I.R.B. 20
96–18, 1996–14 I.R.B. 27
96–19, 1996–14 I.R.B. 28
96–20, 1996–14 I.R.B. 30
96–21, 1996–14 I.R.B. 30
96–22, 1996–14 I.R.B. 30
96–23, 1996–16 I.R.B. 23
96–24, 1996–16 I.R.B. 23
96–25, 1996–17 I.R.B. 11
Proposed Regulations:
DL–1–95, 1996–6 I.R.B. 28
EE–20–95, 1996–5 I.R.B. 15
EE–34–95, 1996–3 I.R.B. 49
EE–35–95, 1996–5 I.R.B. 19
EE–53–95, 1996–5 I.R.B. 23
EE–55–95, 1996–12 I.R.B. 12
EE–106–82, 1996–10 I.R.B. 31
EE–142–87, 1996–12 I.R.B. 13
EE–148–81, 1996–11 I.R.B. 29
IA–3–94, 1996–17 I.R.B. 12
IA–33–95, 1996–4 I.R.B. 99
IA–41–93, 1996–11 I.R.B. 29
INTL–3–95, 1996–6 I.R.B. 29
INTL–9–95, 1996–5 I.R.B. 25
INTL–54–95, 1996–14 I.R.B. 39
PS–2–95, 1996–7 I.R.B. 50
PS–6–95, 1996–16 I.R.B. 27
Revenue Procedures:
96–1, 1996–1 I.R.B. 8
96–2, 1996–1 I.R.B. 60
96–3, 1996–1 I.R.B. 82
96–4, 1996–1 I.R.B. 94
96–5, 1996–1 I.R.B. 129
96–6, 1996–1 I.R.B. 151
96–7, 1996–1 I.R.B. 185
96–8, 1996–1 I.R.B. 187
96–8A, 1996–9 I.R.B. 10
96–9, 1996–2 I.R.B. 15
96–10, 1996–2 I.R.B. 17
96–11, 1996–2 I.R.B. 18
96–12, 1996–3 I.R.B. 30
96–13, 1996–3 I.R.B. 31
96–14, 1996–3 I.R.B. 41
96–15, 1996–3 I.R.B. 41
96–16, 1996–3 I.R.B. 45
96–17, 1996–4 I.R.B. 69
96–18, 1996–4 I.R.B. 73
96–19, 1996–4 I.R.B. 80
96–20, 1996–4 I.R.B. 88
96–21, 1996–4 I.R.B. 96
96–22, 1996–5 I.R.B. 27
96–23, 1996–5 I.R.B. 27
96–24, 1996–5 I.R.B. 28
96–24A, 1996–15 I.R.B. 12
96–25, 1996–8 I.R.B. 19
Revenue Procedures—Continued
96–26, 1996–8 I.R.B. 22
96–27, 1996–11 I.R.B. 27
96–28, 1996–14 I.R.B. 31
96–29, 1996–16 I.R.B. 24
Revenue Rulings:
96–1, 1996–1 I.R.B. 7
96–2, 1996–2 I.R.B. 5
96–3, 1996–2 I.R.B. 14
96–6, 1996–2 I.R.B. 8
96–4, 1996–3 I.R.B. 16
96–5, 1996–3 I.R.B. 29
96–7, 1996–3 I.R.B. 12
96–8, 1996–4 I.R.B. 62
96–9, 1996–4 I.R.B. 5
96–10, 1996–4 I.R.B. 27
96–11, 1996–4 I.R.B. 28
96–12, 1996–9 I.R.B. 4
96–13, 1996–10 I.R.B. 19
96–14, 1996–6 I.R.B. 20
96–15, 1996–11 I.R.B. 9
96–16, 1996–11 I.R.B. 4
96–17, 1996–13 I.R.B. 5
96–18, 1996–13 I.R.B. 4
96–19, 1996–14 I.R.B. 24
96–20, 1996–15 I.R.B. 5
96–21, 1996–15 I.R.B. 7
96–22, 1996–15 I.R.B. 9
96–23, 1996–15 I.R.B. 11
Treasury Decisions:
8630, 1996–3 I.R.B. 19
8631, 1996–3 I.R.B. 7
8632, 1996–4 I.R.B. 6
8633, 1996–4 I.R.B. 20
8634, 1996–3 I.R.B. 17
8635, 1996–3 I.R.B. 5
8636, 1996–4 I.R.B. 64
8637, 1996–4 I.R.B. 29
8638, 1996–5 I.R.B. 5
8639, 1996–5 I.R.B. 12
8640, 1996–2 I.R.B. 10
8641, 1996–6 I.R.B. 4
8642, 1996–7 I.R.B. 4
8643, 1996–11 I.R.B. 4
8644, 1996–7 I.R.B. 16
8645, 1996–8 I.R.B. 4
8646, 1996–8 I.R.B. 10
8647, 1996–9 I.R.B. 7
8648, 1996–10 I.R.B. 23
8649, 1996–9 I.R.B. 5
8650, 1996–10 I.R.B. 5
8651, 1996–11 I.R.B. 24
8652, 1996–11 I.R.B. 11
8653, 1996–12 I.R.B. 4
8654, 1996–11 I.R.B. 14
8655, 1996–12 I.R.B. 9

SEQ 0045 JOB D28-053-003 PAGE-0017 FINDING LIST
REVISED 01JUL96 AT 01:37 BY LR DEPTH: 65.01 PICAS WIDTH 32.08 PICAS
COMPOSITE COLOR
778/20052/1JUL96/D28-053
17
Numerical Finding List
1
—Continued
Bulletins 1996–1 through 1996–17
Treasury Decisions—Continued
8656, 1996–13 I.R.B. 9
8657, 1996–14 I.R.B. 4
8658, 1996–14 I.R.B. 13
8659, 1996–16 I.R.B. 4
8660, 1996–17 I.R.B. 4
8661, 1996–17 I.R.B. 7
1
A cumulative list of all Revenue Rulings,
Revenue Procedures, Treasury Decisions, etc.,
published in Internal Revenue Bulletins 1995–
27 through 1995–52 will be found in Internal
Revenue Bulletin 1996–1, dated January 2,
1996.

SEQ 0046 JOB D28-053-003 PAGE-0018 FINDING LIST
REVISED 01JUL96 AT 01:37 BY LR DEPTH: 65.01 PICAS WIDTH 41.11 PICAS
COMPOSITE COLOR
778/20052/1JUL96/D28-053
18
Finding List of Current Action on
Previously Published Items
1
Bulletins 1996–1 through 1996–17
*Denotes entry since last publication
Delegation Orders:
232 (Rev. 1)
Superseded by
232 (Rev. 2), 1996–7 I.R.B. 49
239
Amended by
239 (Rev. 1), 1996–7 I.R.B. 49
Revenue Procedures:
65–17
Modified by
96–14, 1996–3 I.R.B. 41
66–49
Modified by
96–15, 1996–3 I.R.B. 41
88–32
Obsoleted by
96–15, 1996–3 I.R.B. 41
88–33
Obsoleted by
96–15, 1996–3 I.R.B. 41
89–19
Superseded by
96–17, 1996–4 I.R.B. 69
89–48
Superseded in part by
96–17, 1996–4 I.R.B. 69
91–22
Modified by
96–1, 1996–1 I.R.B. 8
91–22
Amplified by
96–13, 1996–3 I.R.B. 31
91–23
Superseded by
96–13, 1996–3 I.R.B. 31
91–24
Superseded by
96–14, 1996–3 I.R.B. 41
91–26
Superseded by
96–13, 1996–3 I.R.B. 31
92–20
Modified by
96–1, 1996–1 I.R.B. 8
1
A cumulative finding list for previously
published items mentioned in Internal Revenue
Bulletins 1995–27 through 1995–52 will be
found in Internal Revenue Bulletin 1996–1, dated
January 2, 1996.
Revenue Procedures—Continued
92–85
Modified by
96–1, 1996–1 I.R.B. 8
93–16
Superseded by
96–11, 1996–2 I.R.B. 18
93–46
Superseded in part by
96–17, 1996–4 I.R.B. 69
Superseded by
96–18, 1996–4 I.R.B. 73
94–16
Modified by
96–29, 1996–16 I.R.B. 24
94–18
Superseded in part by
96–17, 1996–4 I.R.B. 69
Superseded by
96–18, 1996–4 I.R.B. 73
94–59
Superseded in part by
96–17, 1996–4 I.R.B. 69
Superseded by
96–18, 1996–4 I.R.B. 73
94–62
Modified by
96–29, 1996–16 I.R.B. 24
94–77
Superseded by
96–28, 1996–14 I.R.B. 31
95–1
Superseded by
96–1, 1996–1 I.R.B. 8
95–2
Superseded by
96–2, 1996–1 I.R.B. 60
95–3
Superseded by
96–3, 1996–1 I.R.B. 82
95–4
Superseded by
96–4, 1996–1 I.R.B. 94
95–5
Superseded by
96–5, 1996–1 I.R.B. 129
95–6
Superseded by
96–6, 1996–1 I.R.B. 151
Revenue Procedures—Continued
95–7
Superseded by
96–7, 1996–1 I.R.B. 185
95–8
Superseded by
96–8, 1996–1 I.R.B. 187
95–13
Superseded by
96–20, 1996–4 I.R.B. 88
95–20
Superseded by
96–24, 1996–5 I.R.B. 28
95–50
Superseded by
96–3, 1996–1 I.R.B. 82
96–3
Amplified by
96–12, 1996–3 I.R.B. 30
Revenue Rulings:
66–307
Obsoleted by
96–3, 1996–2 I.R.B. 14
72–437
Modified by
96–13, 1996–3 I.R.B. 31
80–80
Obsoleted by
96–3, 1996–2 I.R.B. 14
82–80
Modified by
96–14, 1996–3 I.R.B. 41
92–19
Supplemented in part
96–2, 1996–2 I.R.B. 5
92–75
Clarified by
96–13, 1996–3 I.R.B. 31
95–10
Supplemented and superseded by
96–4, 1996–3 I.R.B. 16
95–11
Supplemented and superseded by
96–5, 1996–3 I.R.B. 29
96–24
Modified and amplified by
96–24A, 1996–15 I.R.B. 12