Internal Revenue Bulletin 1998-26 (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.

INCOME TAX
REG–106031–98, page 38.
Proposed regulations under section 864 of the Code relate
to the treatment of foreign taxpayers trading in derivative fi-
nancial instruments. A public hearing will be held on Septem-
ber 9, 1998.
EXEMPT ORGANIZATIONS
Announcement 98–56, page 44.
A list is given of organizations now classified as private foun-
dations.
ADMINISTRATIVE
Rev. Proc. 98–37, page 6.
Reproduction of forms; Forms 1096, 1098, 1099,
5498, and W–2G.Requirements are set forth for reproduc-
ing paper substitutes for Forms 1096, 1098, 1099, 5498,
and W–2G, and for furnishing substitute statements to form
recipients. Rev. Proc. 97–32 superseded.
Rev. Proc. 98–39, page 36.
This procedure modifies Rev. Proc. 97–35, 1997–33 I.R.B.
11, to clarify that capitalization under section 263 of the
Code applies to certain package design costs, and that Rev.
Proc. 97–35 does not apply to costs of a package design
that is “an amortizable section 197 intangible.” Rev. Proc.
97–35 modified.
Announcement 98–55, page 41.
The Service announces proposed changes to the 1999
Forms W–2, Wage and Tax Statement, and W–3, Transmittal
of Wage and Tax Statements.
Internal Revenue
bbuulllleettiinn
Bulletin No. 1998–26
June 29, 1998
HIGHLIGHTS
OF THIS ISSUE
These synopses are intended only as aids to the reader in
identifying the subject matter covered. They may not be
relied upon as authoritative interpretations.
Department of the Treasury
Internal Revenue Service
Finding Lists begin on page 50.
Announcement of the Expedited Suspension of Attorneys, Certified Public Accountants, Enrolled Agents, and Enrolled
Actuaries From Practice Before the Internal Revenue Service begins on page 47.

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

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

June 29, 199841998–26 I.R.B.
Section 197.—Amortization of
Goodwill and Certain Other
Intangibles
Rev. Proc. 97–35 is modified to make clear that
capitalization under section 263 applies to certain
package design costs, and that the revenue proce-
dure does not apply to costs of a package design that
is an amortizable section 197 intangible. See Rev.
Proc. 98–39, page 36.
Section 220.—Medical Savings
Accounts
Specifications for paper substitutes for Forms
1096, 1098, 1099, 5498, and W–2G. See Rev. Proc.
98–37, page 6.
Section 263.—Capital
Expenditures
Rev. Proc. 97–35 is modified to make clear that
capitalization under section 263 applies to certain
package design costs, and that the revenue proce-
dure does not apply to costs of a package design that
is an amortizable section 197 intangible. See Rev.
Proc. 98–39, page 36.
Section 263A.—Capitalization
and Inclusion in Inventory Costs
of Certain Expenses
26 CFR 1.263A–2: Rules relating to property
produced by the taxpayer.
Rev. Proc. 97–35 is modified to make clear that
capitalization under section 263 applies to certain
package design costs, and that the revenue proce-
dure does not apply to costs of a package design that
is an amortizable section 197 intangible. See Rev.
Proc. 98–39, page 36.
Section 408.—Individual
Retirement Accounts
26 CFR 1.408–5: Annual reports by trustees or
issuers.
Specifications for paper substitutes for Form
1096, 1098, 1099, 5498, and W–2G. See Rev. Proc.
98–37, page 6.
26 CFR 1.408–7: Reports on distributions from
individual retirement plans.
Specifications for paper substitutes for Forms
1096, 1098, 1099, 5498, and W–2G. See Rev. Proc.
98–37, page 6.
Section 408A.—Roth IRAs
Specifications for paper substitutes for Form
1096, 1098, 1099, 5498, and W–2G. See Rev. Proc.
98–37, page 6.
Section 6041.—Information at
Source
26 CFR 1.6041–1: Return of information as to
payments of $600 or more.
Specifications for paper substitutes for Forms
1096, 1098, 1099, 5498, and W–2G. See Rev. Proc.
98–37, page 6.
26 CFR 7.6041–1: Return of information as to
payments of winnings from bingo, keno, and slot
machines (Temporary).
Specifications for paper substitutes for Forms
1096, 1098, 1099, 5498, and W–2G. See Rev. Proc.
98–37, page 6.
Section 6041A.—`Returns
Regarding Payments of
Remuneration for Services
and Direct Sales
Specifications for paper substitutes for Forms
1096, 1098, 1099, 5498, and W–2G. See Rev. Proc.
98–37, page 6.
Section 6042.—Returns
Regarding Payments of
Dividends and Corporate
Earnings and Profits
26 CFR 1.6042–2: Returns of information as to
dividends paid in calendar years after 1962.
Specifications for paper substitutes for Forms
1096, 1098, 1099, 5498, and W–2G. See Rev. Proc.
98–37, page 6.
26 CFR 1.6042–4: Statements to recipients of
dividend payments.
Specifications for paper substitutes for Forms
1096, 1098, 1099, 5498, and W–2G. See Rev. Proc.
98–37, page 6.
Section 6043.—Liquidating,
Etc., Transactions
Specifications for paper substitutes for Forms
1096, 1098, 1099, 5498, and W–2G. See Rev. Proc.
98–37, page 6.
Section 6044.—Returns
Regarding Payments of
Patronage Dividends
26 CFR 1.6044–2: Returns of information as to
payments of patronage dividends with respect to
patronage occurring in taxable years beginning
after 1962.
Specifications for paper substitutes for Forms
1096, 1098, 1099, 5498, and W–2G. See Rev. Proc.
98–37, page 6.
26 CFR 1.6044–5: Statements to recipients of
patronage dividends.
Specifications for paper substitutes for Forms
1096, 1098, 1099, 5498, and W–2G. See Rev. Proc.
98–37, page 6.
Section 6045.—Returns of
Brokers
26 CFR 1.6045–1: Returns of information of
brokers and barter exchanges.
Specifications for paper substitutes for Forms
1096, 1098, 1099, 5498, and W–2G. See Rev. Proc.
98–37, page 6.
26 CFR 5f.6045–1: Returns of information for
brokers and barter exchanges (Temporary).
Specifications for paper substitutes for Forms
1096, 1098, 1099, 5498, and W–2G. See Rev. Proc.
98–37, page 6.
26 CFR 1.6045–2: Furnishing statement required
with respect to certain substitute payments.
Specifications for paper substitutes for Forms
1096, 1098, 1099, 5498, and W–2G. See Rev. Proc.
98–37, page 6.
26 CFR 1.6045–4: Information reporting on real
estate transactions with dates of closing on or after
January 1, 1991.
Specifications for paper substitutes for Forms
1096, 1098, 1099, 5498, and W–2G. See Rev. Proc.
98–37, page 6.
Section 6047.—Information
Relating to Certain Trusts and
Annuity Plans
26 CFR 1.6047–1: Information to be furnished with
regard to employee retirement plan covering an
owner-employee.
Part I. Rulings and Decisions Under the Internal Revenue Code of 1986

Specifications for paper substitutes for Forms
1096, 1098, 1099, 5498, and W–2G. See Rev. Proc.
98–37, page 6.
Section 6049.—Returns
Regarding Payments of Interest
26 CFR 1.6049–4: Return of information as to
interest paid and original issue discount includible
in gross income after December 31, 1982.
Specifications for paper substitutes for Forms
1096, 1098, 1099, 5498, and W–2G. See Rev. Proc.
98–37, page 6.
26 CFR 1.6049–6: Statements to recipients of
interest payments and holders of obligations for
attributed original issue discount.
Specifications for paper substitutes for Forms
1096, 1098, 1099, 5498, and W–2G. See Rev. Proc.
98–37, page 6.
29 CFR 1.6049–7: Returns of information with
respect to REMIC regular interests and
collateralized debt obligations.
Specifications for paper substitutes for Forms
1096, 1098, 1099, 5498, and W–2G. See Rev. Proc.
98–37, page 6.
Section 6050A.—Reporting
Requirements of Certain Fishing
Boat Operators
26 CFR 1.6050A–1: Reporting requirements of
certain fishing boat operators.
Specifications for paper substitutes for Form
1096, 1098, 1099, 5498, and W–2G. See Rev. Proc.
98–37, page 6.
Section 6050B.—Returns
Relating to Unemployment
Compensation
26 CFR 1.6050B–1: Information returns by person
making unemployment compensation payments.
Specifications for paper substitutes for Forms
1096, 1098, 1099, 5498, and W–2G. See Rev. Proc.
98–37, page 6.
Section 6050D.—Returns
Relating to Energy Grants and
Financing
26 CFR 1.6050D–1: Information returns relating to
energy grants and financing.
Specifications for paper substitutes for Forms
1096, 1098, 1099, 5498, and W–2G. See Rev Proc.
98–37, page 6.
Section 6050E.—State and
Local Income Tax Refunds
26 CFR 1.6050E–1: Reporting of State and local
income tax refunds.
Specifications for paper substitutes for Forms
1096, 1098, 1099, 5498 and W–2G. See Rev. Proc.
98–37, page 6.
Section 6050H.—Returns
Relating to Mortgage Interest
Received in Trade or Business
From Individuals
26 CFR 1.6050H–1: Information reporting of
mortgage interest received in a trade or business
from an individual.
Specifications for paper substitutes for Forms
1096, 1098, 1099, 5498, and W–2G. See Rev. Proc.
98–37, page 6.
26 CFR 1.6050H-2: Time, form, and manner of
reporting interest received on qualified mortgage.
Specifications for paper substitutes for Forms
1096, 1098, 1099, 5498, and W–2G. See Rev. Proc.
98–37, page 6.
Section 6050J.—Returns
Relating to Foreclosures and
Abandonments of Security
26 CFR 1.6050J–1T: Questions and answers
concerning information returns relating to
foreclosures and abandonments of security
(Temporary).
Specifications for paper substitutes for Forms
1096, 1098, 1099, 5498, and W–2G. See Rev. Proc.
98–37, page 6.
Section 6050N.—Returns
Regarding Payments of
Royalties
26 CFR 1.6050N–1: Statements to recipients of
royalties.
Specifications for paper substitutes for Forms
1096, 1098, 1099, 5498, and W–2G. See Rev. Proc.
98–37, page 6.
Section 6050P.—Returns
Relating to the Cancellation of
Indebtedness by Certain Entities
26 CFR 1.6050P–1: Information reporting for
discharges of indebtedness by certain financial
entities.
Specifications for paper substitutes for Forms
1096, 1098, 1099, 5498, and W–2G. See Rev. Proc.
98–37, page 6.
Section 6050Q.—Certain
Long-Term Care Benefits
Specifications for paper substitutes for Forms
1096, 1098, 5498, and W–2G. See Rev. Proc.
98–37, page 6.
Section 6050R.—Returns
Relating to Certain Purchases
of Fish
Specifications for paper substitutes for Forms
1096, 1098, 5498, and W–2G. See Rev. Proc.
98–37, page 6.
Section 6050S.—Returns
Relating to Higher Education
Tuition and Related Expenses
Specifications for paper substitutes for Forms
1096, 1098, 5498, and W–2G. See Rev. Proc.
98–37, page 6.
1998–26 I.R.B.5June 29, 1998

June 29, 199861998–26 I.R.B.
26 CFR 601.602: Forms and instructions.
(Also Part I, Sections 220, 408, 408A, 6041, 6041A,
6042, 6043, 6044, 6045, 6047, 6049, 6050A, 6050B,
6050D, 6050E, 6050H, 6050J, 6050N, 6050P,
6050Q, 6050R, 6050S, 1.408–5, 1.408–7,
1.6041–1, 7.6041–1, 1.6042–2, 1.6042–4, 1.6044–2,
1.6044–5, 1.6045–1, 5f.6045–1, 1.6045–2,
1.6045–4, 1.6047–1, 1.6049–4, 1.6049–6,
1.6049–7, 1.6050A–1, 1.6050B–1, 1.6050D–1,
1.6050E–1, 1.6050H–1, 1.6050H–2, 1.6050J–1T,
1.6050N–1, 1.6050P–1).
Rev. Proc. 98–37
CONTENTS
PART A. GENERAL
SECTION 1. PURPOSE
SECTION 2. NATURE OF
CHANGES
SECTION 3. REQUIREMENTS
FOR ACCEPTABLE
SUBSTITUTE FORMS
1096, 1098, 1099, 5498,
AND W–2G
SECTION 4. DEFINITIONS
SECTION 5. INSTRUCTIONS FOR
PREPARING PAPER
FORMS THAT WILL
BE FILED WITH THE
IRS (COPY A)
SECTION 6. RESERVED
SECTION 7. SUBSTITUTE STATE-
MENTS TO FORM
RECIPIENTS AND
FORM RECIPIENT
COPIES
PART B. SPECIFICATIONS FOR
SUBSTITUTE FORMS TO BE FILED
WITH IRS (EXCEPT Form W–2G)
SECTION 1. GENERAL
SECTION 2. SPECIFICATIONS
FOR FORM 1096 AND
COPY A OF FORMS
1098, 1099, AND 5498
PART C. SPECIFICATIONS FOR
SUBSTITUTE FORMS W–2G TO BE
FILED WITH IRS
SECTION 1. GENERAL
SECTION 2. SPECIFICATIONS
FOR COPY A OF
FORMS W–2G
PART D. ADDITIONAL
INSTRUCTIONS FOR FORMS 1098,
1099, 5498, AND W–2G
SECTION 1. OTHER COPIES
SECTION 2. OMB REQUIRE-
MENTS
SECTION 3. REPRODUCIBLE
COPIES
SECTION 4. EFFECT ON OTHER
REVENUE PROCE-
DURES
PART E. EXHIBITS
EXHIBIT A. Form 1098
EXHIBIT B. Form 1098–E
EXHIBIT C. Form 1098–T
EXHIBIT D. Form 1099–A
EXHIBIT E. Form 1099–B
EXHIBIT F.Form 1099–C
EXHIBIT G. Form 1099–DIV
EXHIBIT H. Form 1099–G
EXHIBIT I.Form 1099–INT
EXHIBIT J.Form 1099–LTC
EXHIBIT K. Form 1099–MISC
EXHIBIT L. Form 1099–MSA
EXHIBIT M. Form 1099–OID
EXHIBIT N. Form 1099–PATR
EXHIBIT O. Form 1099–R
EXHIBIT P.Form 1099–S
EXHIBIT Q. Form W–2G
EXHIBIT R. Form 5498
EXHIBIT S. Form 5498–MSA
EXHIBIT T. Form 1096
PART A. GENERAL
SECTION 1. PURPOSE
.01 The purpose of this revenue proce-
dure is to set forth the requirements for:
1. Using official Internal Revenue Ser-
vice (IRS) forms to file information re-
turns with the IRS,
2. Preparing acceptable substitutes of
the official IRS forms to file information
returns with the IRS, and
3. Using official or acceptable substi-
tute forms to furnish information to a re-
cipient.
This revenue procedure contains speci-
fications for the following information re-
turns:
Part III. Administrative, Procedural, and Miscellaneous
(a) Form 1098Mortgage Interest Statement;
(b) Form 1098–E Student Loan Interest Statement;
(c) Form 1098–TTuition Payments Statement;
(d) Form 1099–AAcquisition or Abandonment of Secured Property;
(e) Form 1099–BProceeds From Broker and Barter Exchange Transactions;
(f) Form 1099–CCancellation of Debt;
(g) Form 1099–DIVDividends and Distributions;
(h) Form 1099–GCertain Government Payments;
(I) Form 1099–INTInterest Income;
(j) Form 1099–LTCLong-Term Care and Accelerated Death Benefits;
(k) Form 1099–MISC Miscellaneous Income;
(l) Form 1099–MSADistributions From Medical Savings Accounts;
(m) Form 1099–OIDOriginal Issue Discount;
(n) Form 1099–PATR Taxable Distributions Received FromCooperatives;
(o) Form 1099–RDistributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts,
etc.;
(p) Form 1099–SProceeds From Real Estate Transactions;
(q) Form W–2GCertain Gambling Winnings;
(r) Form 5498IRA Contribution Information;
(s) Form 5498–MSAMedical Savings Account Information; and
(t) Form 1096Annual Summary and Transmittal of U.S. Information Returns.

1998–26 I.R.B.7June 29, 1998
.02 For the purpose of this revenue
procedure, a substitute form or statement
is one that is not printed by the IRS. For a
substitute form or statement to be accept-
able to the IRS, it must conform to the of-
ficial form or the specifications outlined
in this revenue procedure. DO NOT
SUBMIT ANY SUBSTITUTE FORMS
OR STATEMENTS TO IRS FOR AP-
PROVAL.Private printers may not state
“This is an IRS approved form.” Further,
only those forms that conform to the offi-
cial form or comply with the specifica-
tions set forth herein are acceptable. See
Part A, Section 7, for the specifications
that apply to form recipient statements
(generally Copy B).
.03 Filers who make payments to cer-
tain persons (payees) (or in some cases re-
ceive payments) during a calendar year
are required by the Internal Revenue Code
(IRC) to file information returns with the
IRS reflecting these payments. Further, as
discussed below, these filers must provide
this information to their payees.
.04 In general, the manner in which a
filer must file an information return is
governed by section 6011 of the IRC. A
filer must file information returns on
magnetic media (including electronic fil-
ing) or on paper. Under section 6011 of
the IRC, a filer who is required to file 250
or more information returns (of any one
type except Form 1098–T) during a calen-
dar year must file those returns on mag-
netic media. Filers required to file less
than 250 returns during a calendar year
may, but are not required to, file such in-
formation returns on magnetic media
(small volume filers). The IRS explains
these legal requirements for filing infor-
mation returns (and providing a copy to a
payee) in the annual publication of In-
structions for Forms 1099, 1098, 5498,
and W–2G. In addition, procedures are
contained in Publication 1220, “Specifi-
cations for Filing Forms 1098, 1099,
5498, and W–2G Electronically.”
.05 Copies of the official forms for the
reporting year and the instruction booklet
may be obtained by calling our toll-free
number 1-800-TAX-FORM (1-800-829-
3676).
.06 The IRS prints and provides the
forms on which various payments must be
reported. Alternatively, filers may pre-
pare substitute copies of these IRS forms
and use such forms to report payments to
the IRS.
.07 IRS operates a centralized call site,
in Martinsburg, West Virginia, to answer
questions related to information returns,
penalties, and backup withholding. The
call site phone number is 304-263-8700.
The number for Telecommunications De-
vice for the Deaf (TDD) is 304-267-3367.
These are not toll-free numbers.
.08 IRS has established a personal
computer-based Information Reporting
Program Bulletin Board System (IRP-
BBS). This system provides information
about forms and publications, including
this revenue procedure, news of the latest
changes, answers to questions, and other
features. The IRP-BBS is available for
public use and can be reached by dialing
304-264-7070.The IRP-BBS is compati-
ble with most modems. For more infor-
mation concerning this system, call 304-
263-8700 Monday through Friday 8:30
A.M. to 4:30 P.M. eastern time.
SEC. 2. NATURE OF CHANGES
.01 The title of this publication has
been changed by eliminating the word
“Series”. The new title is “Rules and
Specifications for Private Printing of Sub-
stitute Forms 1096, 1098, 1099, 5498 and
W–2G”.
.02 Two new forms were developed for
tax year 1998. They are Form 1098–E,
Student Loan Interest Statement (Exhibit
B); and Form 1098–T, Tuition Payments
Statement (Exhibit C).
.03 Form 1099–DIV, Dividends and
Distributions, has been completely re-
vised. Box 1a, Gross dividends and other
distributions on stock, was eliminated.
The heading “Liquidation Distributions”
above boxes 5 and 6 was eliminated. The
new boxes and their titles are as follows:
– Box 1, Ordinary dividends
– Box 2a, Total capital gain distr.
– Box 2b, 28% rate gain
– Box 2c, Unrecap. sec. 1250 gain
– Box 2d, Section 1202 gain
– Box 3, Nontaxable distributions
– Box 4, Federal income tax withheld
– Box 5, Investment expenses
– Box 6, Foreign tax paid
– Box 7, Foreign country or U.S. pos-
session
– Box 8, Cash liquidation distr.
– Box 9, Noncash liquidation distr.
.04 Form 5498 was retitled “IRA Con-
tribution Information”; several box titles
were changed; and several new boxes
were added. The box numbers and titles
are as follows:
– Box 1, IRA contributions (other than
amounts in boxes 2,3 and 7-10)
– Box 2, Rollover contributions
– Box 3, Roth conversion amount
– Box 4, Fair market value of account
– Box 5, Life insurance cost included
in box 1
– Box 6, Check boxes for: IRA, SEP,
SIMPLE, Roth IRA, Roth conver-
sion, Ed IRA
– Box 7, SEP contributions
– Box 8, SIMPLE contributions
– Box 9, Roth IRA contributions
– Box 10, Ed IRA contributions
.05 Forms 1098–E, 1098–T and
1099–LTC have been added to the list of
forms in Part A, Section 7.03(3) that re-
quire a telephone number on recipients’
statements.
.06 The IRS mailing address in Part A,
Sec. 3.01 has changed as follows:
Internal Revenue Service
Attn: IRP Coordinator, T:FS:S:P:S
5000 Ellin Road
Lanham, MD 20706
.07 A procedure was added which al-
lows you to reverse the location of the
policyholder’s and insured’s name, street
address, city, state, and ZIP code for ease
of mailing on Copy C of Form 1099–
LTC. See Part A Section 3.02 and Section
7.03 (10).
.08 Procedures were added in Part A
Section 7.03(9) which allows states to in-
clude an additional box(es) on substitute
recipient statements for use by the state.
.09 The exhibits at the end of this pub-
lication have been realigned to include
new Forms 1098–E and 1098–T.
SEC. 3 REQUIREMENTS FOR
ACCEPTABLE SUBSTITUTE
FORMS 1096, 1098, 1099,
5498, and W–2G
.01 Paper substitutes for Form 1096
and Copy A of Forms 1098, 1099, 5498,
and W–2G that totally conform to the
specifications contained in this revenue
procedure may be privately printed and
filed as returns with the IRS. The refer-
ence to the Department of the Treasury -
Internal Revenue Service should be in-
cluded on all such forms. If you are un-
certain of any specification set forth
herein and want that specification clari-
fied, you may submit a letter citing the

June 29, 199881998–26 I.R.B.
specification in question, giving your un-
derstanding and interpretation of the spec-
ification, and enclosing an example of the
form (if appropriate) to:
Internal Revenue Service
ATTN: IRP Coordinator – T:FS:S:P:S
5000 Ellin Road
Lanham, MD 20706
NOTE:Allow at least 45 days for the IRS
to respond.
.02 Copy B (Form 1098 – For Payer,
Form 1098–E – For Borrower, Form
1098–T – For Student, Form 1099–A –
For Borrower, Form 1099–C – For
Debtor, Form 1099–LTC – For Policy-
holder, Form 1099–S – For Transferor,
Other Forms 1099 – For Recipient, Forms
5498 and 5498–MSA – For Participant,
and Forms W–2G and 1099–R – To Be
Attached To the Federal Income Tax Re-
turn); and Copy C- (Form 1099–R – For
Recipient’s Records, Form W–2G – For
Winner’s Records and, Form 1099–LTC –
For Insured) must contain the information
specified in Part A, Section 7 in order to
constitute a “statement” or “official form”
under the applicable provisions of the In-
ternal Revenue Code. The format of this
information is at the discretion of the filer
with the exception of the location of the
tax year, form number and form name
specified in Part A, Section 7.01(6) and
7.03(1) and composite Form 1099 state-
ments specified in PART A, Section 7.02.
Note:On Copy C, Form 1099–LTC, you
may reverse the location of the policy-
holder’s name, street address, city, state,
and ZIP code with the location of the in-
sured’s name, street address, city, state,
and ZIP code for ease in mailing.
.03 Forms 1096, 1098, 1099, 5498,
and W–2G are subject to annual review
and possible change. Therefore, filers are
cautioned against overstocking supplies
of privately printed substitutes. THE
SPECIFICATIONS CONTAINED IN
THIS REVENUE PROCEDURE APPLY
TO 1998 FORMS ONLY.
.04 Proposed substitutes for Copy A
that do not conform to the specifications
in this revenue procedure are not accept-
able. Further, if you file such forms with
IRS, you may be subject to a penalty for
failure to file an information return under
section 6721 of the Internal Revenue
Code (IRC). Generally, the penalty is $50
for each failure to file a form (up to
$250,000) that the IRS cannot accept as a
return because it does not meet the provi-
sions in this revenue procedure. No IRS
office is authorized to allow deviations
from this revenue procedure.
SEC. 4. DEFINITIONS
.01 The term “form recipient” means
the person to whom you are required by
law to furnish a copy of the official form
or information statement: i.e.,for Form
1098, the recipient is the “payer/bor-
rower”; Form 1098–E, the “borrower”;
Form 1098–T, the “student”; Form
1099–A, the “borrower”; Form 1099–C,
the “debtor”; Form 1099–LTC, “the poli-
cyholder” and the insured”; Form
1099–S, the “transferor”; other Forms
1099, the payment recipient; Forms 5498
and 5498–MSA, the “participant”; and
Form W–2G, the “winner.”
.02 The term “filer” means the person
or organization required by law to file a
form listed in Part A, Section 1.01 with
the IRS. Thus, a filer may be a payer, a
creditor, a recipient of mortgage or stu-
dent loan interest payments, an educa-
tional institution, a broker, a barter ex-
change, a person reporting real estate
transactions, a trustee or issuer of any in-
dividual retirement arrangement or med-
ical savings account, or a lender who ac-
quires an interest in secured property or
who has reason to know that the property
has been abandoned.
.03 The term “substitute form” means
a paper substitute of Copy A of an official
form listed in Part A, Section 1.01 that to-
tally conforms to the provisions in this
revenue procedure.
.04 The term “substitute form recipient
statement” means a paper statement of the
information reported on a form listed in
PART A, Section 1.01 that must be fur-
nished to a person (form recipient), as so
defined under the applicable provisions of
the Internal Revenue Code and the applic-
able regulations.
.05 A composite substitute statement is
one in which two or more required state-
ments (e.g., Forms 1099–INT and
1099–DIV) are furnished to the recipient
on one document. However, each state-
ment must be separately designated and
must contain all the requisite Form 1099
information except as provided in Part A,
Section 7. A composite statement MAY
NOT be filed with the IRS. See Part A,
Section 7.02 and 7.04 for more informa-
tion on composite statements.
SEC. 5. INSTRUCTIONS FOR
PREPARING PAPER FORMS
THAT WILL BE FILED WITH THE
IRS (Copy A)
.01 The form recipient’s name, street
address, city, state, and ZIP code informa-
tion should be TYPED OR MACHINE
PRINTED IN BLACK INK in the same
format as shown on the official IRS form.
Although handwritten forms will be ac-
cepted, in order for IRS to process the
submitted forms in the most economical
manner, the IRS prefers that filers TYPE
OR MACHINE PRINT data entries. In
addition, filers should insert data in the
middle of blockswell separated from
other printing and guidelines, and take
other measures to guarantee a clear, dark
black, sharp image. Carbon copies and
photocopies are not acceptable. The city,
state, and ZIP code must be on the same
line.
.02 The name of the appropriate form
recipient must be shown on the first or
second name line in the area on the form
provided for the form recipient’s name.
No descriptive information or other name
may precede the form recipient’s name.
Only ONEform recipient’s name may ap-
pear on the first name line of the form. If
the names of multiple recipients must be
set forth on the form, on the first name
line insert the recipient name that corre-
sponds to the recipient taxpayer identifi-
cation number (TIN) shown on the form.
Place the other form recipients’ names on
the succeeding name line (up to 2 name
lines are allowable). Because certain
states require that trust accounts be pro-
vided in a different format, generallyfil-
ers should provide information returns re-
flecting payments to trust accounts with
(1) the trust’s employer identification
number (EIN) in the recipient’s TIN area,
(2) the trust’s name on the recipient’s first
name line, and (3) the name of the trustee
on the recipient’s second name line.
.03 You should use the account num-
berbox for an account number designa-
tion. This number must not appear any-
where else on the form, and this box may
not be used for any other item. Showing
the account number is optional. How-
ever, it may be to your benefit to include
the recipient’s account number or desig-
nation on paper documents if your system
of records uses the account number or

1998–26 I.R.B.9June 29, 1998
designation in conjunction with, or rather
than, the name, social security number, or
employer identification number for iden-
tification purposes. If you furnish the ac-
count number, the IRS will include it in
future notices to you about backup with-
holding. If you use window envelopes
and reduced rate mail to mail statements
to recipients, be sure the account number
does not appear in the window. Other-
wise the Postal Service may not accept
them for mailing.
.04 Machine printed forms should be
printed using a 6 lines/inch option, and
should be printed in 10 pitch pica (i.e.,10
print positions per inch) or 12 pitch elite
(i.e.,12 print positions per inch). Propor-
tional spaced fonts are unacceptable.
.05 DO NOT use a felt tip marker. The
machine used to “read” paper forms gen-
erally cannot “read” this ink type.
.06 Substitute forms prepared in con-
tinuous or strip form must be burst and
stripped to conform to the size specified
for a single sheet before they are filed
with IRS. The size specified does not in-
clude pinfeed holes.Pinfeed holes MUST
NOT be present on forms filed with the
IRS.
.07 Use decimal points to indicate dol-
lars and cents. DO NOTuse dollar signs
($), ampersands (&), asterisks (*), com-
mas (,), or other special characters in the
numbered money boxes. Example:
2000.00 is acceptable.
.08 DO NOT FOLDForms 1096,
1098, 1099, or 5498 being mailed to IRS.
Mail these forms flat in an appropriately
sized envelope or box. Folded documents
cannot be readily moved through the
scanner transport used in IRS processing.
.09 DO NOT STAPLEForms 1096 to
the returns being transmitted. Staple
holes in the vicinity of the return code
number reduce the IRS’s ability to ma-
chine scan the type of documents.
.10 DO NOTtype other information
on Copy A. DO NOTcut or separate the
individual forms on the sheet of forms of
Copy A (except Forms W–2G).
.11 Mail completed paper forms to the
IRS service center specified on the back
of Form 1096 and in the 1998 “Instruc-
tions for Forms 1099, 1098, 5498, and
W–2G.” Specific information needed to
complete the forms in this revenue proce-
dure is given in those instructions. A
chart is included in those instructions giv-
ing a quick guide to which form must be
filed to report a particular payment.
SEC. 6. RESERVED
SEC. 7. SUBSTITUTE STATE-
MENTS TO FORM RECIPIENTS
AND FORM RECIPIENT COPIES
If you do not use the official IRS form
to furnish statements to recipients, you
must furnish an acceptable substitute
statement. To be acceptable, your substi-
tute statement must comply with the rules
in this section. In general, see Regula-
tions sections 1.6042–4, 1.6044–5,
1.6049–6, and 1.6050N–1 on the manner
in which certain statements must be pro-
vided to recipients (statement mailing re-
quirements for most Forms 1099–DIV
and 1099–INT, all Forms 1099–OID and
1099–PATR, and Form 1099–MISC or
1099–S for royalties). Note: A trustee of
a grantor-type trust may choose to file
Forms 1099 and furnish a statement to the
grantor under Regulations section 1.671–
4(b)(2)(iii) and (b)(3)(ii). The statement
required by those regulations is not sub-
ject to the requirements in this Section 7.
.01 SUBSTITUTE STATEMENTS TO
RECIPIENTS – Forms 1099–INT (except
for interest reportable under section
6041), 1099–DIV (except for section
404(k) dividends), 1099–OID, and 1099–
PATR ONLY. You may furnish form re-
cipients with Copy B of the official Form
1099–INT, DIV, OID, or PATR or a sub-
stitute Form 1099 (form recipient state-
ment) if it contains the same language as
that of the official IRS form (such as ag-
gregate amounts paid to the form recipi-
ent, any backup withholding, the name,
address, and TIN of the person making
the return, and any other information re-
quired by the official form). Information
not required by the official form should
not be included on the substitute form ex-
cept state tax withholding information.
You may enter a total of the individual ac-
counts listed on the form only if they have
been paid by the same payer. For exam-
ple, if you are listing interest paid on sev-
eral accounts by one financial institution
on Form 1099–INT, you may also enter
the total interest amount. You may also
enter a date next to the corrected box if
that box is checked.
A substitute form recipient statement
for Forms 1099–INT, 1099–DIV,
1099–OID, or 1099–PATRmust comply
with the following requirements.
(1) Box captions and numbers that are
applicable must be clearly identified,
using the same wording and numbering as
on the official form. However on Form
1099–INT,if box 3 is not on your substi-
tute form, you may drop “not included in
box 3” from the box 1 caption.
(2) The form recipient statement must
contain all applicable form recipient in-
structions provided on the front and back
of the official IRS form. Those instruc-
tions may be provided on a separate sheet
of paper.
(3) The form recipient statement must
contain the following statement in bold
and conspicuous type, “This is impor-
tant tax information and is being fur-
nished to the Internal Revenue Service.
If you are required to file a return, a
negligence penalty or other sanction
may be imposed on you if this income is
taxable and the IRS determines that it
has not been reported.”
(4) The box caption “Federal income
tax withheld”must be in bold face type
on the form recipient statement.
(5) The form recipient statement must
contain the Office of Management and
Budget (OMB) number as shown on the
official IRS form. See Part D, Section 2.
(6) The form recipient statement must
contain the tax year 1998, form number
(e.g., Form 1099–INT), and form name
(e.g., Interest Income) of the official IRS
Form 1099 for which it substitutes promi-
nently displayed together in one area of
the statement. For example, the tax year,
form number, and form name could be
shown in the upper right part of the state-
ment. Each copy must be appropriately
labeled (such as Copy B, For Recipient)
(see Part D, Section 1.02 for applicable
labels and arrangement of assembly of
forms). NOTE:DO NOT include the
words “Substitute for” or “In lieu of” on
the form recipient statement.
(7) Layout and format of the form is at
the discretion of the filer. However, IRS
encourages the use of statements with
boxes so that the statement has the ap-
pearance of a form and can be easily dis-
tinguished from other nontax statements.
(8) Each Form 1099–DIV; 1099–INT;
1099–OID; and 1099–PATR recipient
statement must include the telephone
number of a person to contact: The tele-

June 29, 1998101998–26 I.R.B.
phone number must be conspicuous
but may appear anywhere on the recip-
ient statement.
(9) Until new regulations are issued,
the IRS will not assess penalties for the
use of a logo (including the name of the
payer in any typeface, font, or stylized
fashion and/or a symbolic icon) or slogan
on a statement to a recipient if the logo or
slogan is used by the payer in the ordinary
course of its trade or business. In addi-
tion, use of the logo or slogan must not
make it less likely that a reasonable payee
will recognize the importance of the state-
ment for tax reporting purposes.
(10) A mutual fund family may sepa-
rately state on one document (e.g.,one
piece of paper) the dividend income
earned by a recipient from each fund
within the family of funds as required by
Form 1099–DIV.However, each fund
and its earnings must be separately stated.
The form must contain an instruction to
the recipient that each fund’s dividends
and name, not the name of the mutual
fund family, must be reported on the re-
cipient’s tax return. The form cannot
contain an aggregate total of all funds.
In addition, a mutual fund family may
furnish a single statement (as a single
filer) for Forms 1099–INT, DIV, and OID
information. Each fund and its earnings
must be separately stated. The form must
contain an instruction to the recipient that
each fund’s earnings and name, not the
name of the mutual fund family, must be
reported on the recipient’s tax return.
The form cannot contain an aggregate
total of all funds.
.02 COMPOSITE SUBSTITUTE
STATEMENTS – FORMS 1099–INT
(except for interest reportable under
section 6041), 1099–DIV (except for
section 404(k) dividends)), 1099–OID,
1099–PATR, FORM 1099–MISC (FOR
ROYALTIES ONLY), AND FORM
1099–S (FOR ROYALTIES ONLY).–
A composite form recipient statement is
permitted for reportable payments of in-
terest, dividends, original issue discount,
patronage dividends, and royalties (Forms
1099–INT, DIV, MISC (for royalties
only) OID, PATR or S (for royalties only)
when one payer is reporting more than
one of these payments during a calendar
year to the same form recipient. Gener-
ally, do not include any other Form 1099
information (e.g.,1098 or 1099–A) on a
composite statement with the information
required on the forms listed in the preced-
ing sentence. Exception:A filer may in-
clude Form 1099–Binformation on a
composite form with the forms listed
above. Although the composite form re-
cipient statement may be on one sheet, the
format of the composite form recipient
statement must satisfy the following re-
quirements in addition to the require-
ments listed in Section 7.01 above.
(1) All information pertaining to a par-
ticular type of payment must be located
and blocked together on the form and
must be separate from any information
covering other types of payments in-
cluded on the form. For example, if you
are reporting interest and dividends, the
Form 1099–INTinformation must be
presented separately from the Form
1099–DIVinformation.
(2) The tax year, form number, and
form name of the official IRS form for
which the composite form recipient state-
ment substitutes must be prominently dis-
played together in one area at the begin-
ning of each appropriate block of
information.
(3) Any information required by the
official IRS forms that would otherwise
be repeated in each information block is
only required to be listed once in the first
information block on the composite form.
For example, there is no requirement to
report the name of the filer in each infor-
mation block. This rule does not apply to
any money amounts, e.g.,Federal income
tax withheld, or to any other information
that applies to money amounts.
(4) A composite statement shall be
considered an acceptable substitute only
if the type of payment and the recipient’s
tax obligation with respect to the payment
are no less clear than if each required
statement were furnished separately on an
official form.
.03 SUBSTITUTE STATEMENTS TO
RECIPIENTS – FORMS 1098, 1098–E,
1098–T, 1099–A, 1099–B, 1099–C,
1099–G, 1099–LTC, 1099–MISC,
1099–MSA, 1099–R, 1099–S, 5498,
5498–MSA, W–2G, AND CERTAIN
FORMS 1099–INT AND 1099–DIV.
Statements to form recipients for Forms
1098, 1098–E, 1098-T, 1099–A, 1099–B,
1099–C, 1099–G, 1099–LTC, 1099–
MISC, 1099–MSA, 1099–R, 1099–S,
5498, 5498–MSA, 1099–DIV only for
section 404(k) dividends reportable
under section 6047, and 1099–INT only
for interest of $600 or more made in the
course of a trade or business reportable
under section 6041can be copies of the
official forms or an acceptable substitute.
If you do not use the official form as the
form recipient statement, to be accept-
able, the substitute recipient statement
must meet the following requirements:
(1) The tax year, form number, and
form name must be the same as the offi-
cial form, and must be prominently dis-
played together in one area of the state-
ment. For example, they may be shown
in the upper right part of the statement.
(2) The filer’s and the form recipient’s
identifying information required on the
official IRS form must be included.
(3) Each substitute recipient statement
for Forms W–2G; 1098; 1098–E; 1098–T;
1099–A; 1099–B; 1099–DIV; 1099–G
(excluding state and local income tax re-
funds); 1099–INT; 1099–LTC; 1099–
MISC (excluding fishing boat proceeds);
1099–0ID; 1099–PATR; and 1099–S
must include the telephone number of a
person to contact. The telephone num-
ber must be conspicuous but may ap-
pear anywhere on the recipient state-
ment.Although not required, payers
reporting on Forms 1099–C, 1099–MSA,
1099–R, 5498 and 5498-MSA are encour-
aged to furnish telephone numbers.
(4) All applicable money amounts and
information, including box numbers, re-
quired to be reported to the form recipient
must be titled on the form recipient state-
ment in substantially the same manner as
those on the official IRS form. The box
caption “Federal income tax withheld”
must be in bold face type on the form re-
cipient statement. Exception: If you are
reporting a payment as “Other income” in
box 3 of Form 1099–MISC,you may
substitute appropriate explanatory lan-
guage for the box title. For example, for
payments of accrued wages and leave to a
beneficiary of a deceased employee, you
might change the title of box 3 to “Bene-
ficiary payments” or something similar.
(You cannot make this change on Copy
A.)
(5) Appropriate instructions to the
form recipient, similar to those on the of-
ficial IRS form, must be provided to aid
in the proper reporting of the items on the
form recipient’s income tax return. For

1998–26 I.R.B.11June 29, 1998
payments reported on Form 1099–B,the
requirement to include instructions that
are substantially similar to those on the
official IRS form may be satisfied by pro-
viding form recipients with a single set of
instructions with respect to all forms
1099–B statements required to be fur-
nished in a calendar year. NOTE:If
Federal income tax is withheld and shown
on Form 1099–R or W–2G,Copy B (to
be attached to the tax return) and Copy C
(for recipient’s/winner’s records) mustbe
furnished to the recipient. If Federal in-
come tax is not withheld, only Copy C of
Forms 1099–R and W–2G is required to
be furnished. However, for Form
1099–R, instructions similar to those con-
tained on the back of the official Copy B
and Copy C of Form 1099–Rmust be
furnished to the recipient. For conve-
nience, you may choose to provide both
Copies B and C of Form 1099–R to the
recipient.
(6) The quality of carbon used to pro-
duce statements to recipients must meet
the following standards:
(a) all copies must be CLEARLY
LEGIBLE;
(b) all copies must have the capabil-
ity to be photocopied;
(c) fading must not be of such a de-
gree as to preclude legibility and the abil-
ity to photocopy. In general, black chem-
ical transfer inks are preferred; other
colors are permitted only if the above
standards are met. Hot wax and cold car-
bon spots are NOTpermitted on any of
the internal form plies. These spots are
permitted on the back of a mailer top en-
velope ply.
(7) A mutual fund family may sepa-
rately state on one document (e.g.,one
piece of paper) the Form 1099–Binfor-
mation for a recipient from each fund as
required by Form 1099–B.However, the
gross proceeds, etc.,from each transac-
tion within a fund must be separately
stated. The form must contain an instruc-
tion to the recipient that each fund’s
amount and name, not the name of the
mutual fund family, must be reported on
the recipient’s tax return. The form can-
not contain an aggregate total of all funds.
(8) For Form 1099–S,you may use a
Uniform Settlement Statement under the
Real Estate Settlement Procedures Act of
1974 (RESPA) as the written statement to
the transferor if it is conformed by includ-
ing on the statement the legend described
in (12)(i) below and by designating which
information on the Uniform Settlement
Statement is being reported to IRS on
Form 1099–S.
(9) For reporting state income tax
withholding and state payments, states
may add an additional box(es) to their re-
cipient copies as appropriate (You cannot
make this change on Copy A.)
(10) On Copy C, Form 1099–LTC, you
may reverse the location of the policy-
holder’s name, street address, city, state,
and ZIP code with the location of the in-
sured’s name, street address, city, state,
and ZIP code for ease in mailing.
(11) Logos are permitted on substitute
recipient statements for the forms listed in
Section 7.03.
(12) Form recipient statements must
contain the following legends:
(a) Form 1098—(i) “The informa-
tion in boxes 1, 2 and 3 is important tax
information and is being furnished to the
Internal Revenue Service. If you are re-
quired to file a return, a negligence
penalty or other sanction may be imposed
on you if the IRS determines that an un-
derpayment of tax results because you
overstated a deduction for this mortgage
interest or for these points or because you
did not report this refund of interest on
your return.” (ii) “The amount shown
may not be fully deductible by you on
your Federal income tax return. Limita-
tions based on the cost and value of the
secured property may apply. In addition,
you may only deduct an amount of mort-
gage interest to the extent it was incurred
by you, actually paid by you, and not re-
imbursed by another person.”
(b) Form 1098–E—“This is impor-
tant tax information and is being fur-
nished to the Internal Revenue Service. If
you are required to file a return, a negli-
gence penalty or other sanction may be
imposed on you if the IRS determines that
an underpayment of tax results because
you overstated a deduction for student
loan interest.”
(c) Form 1098–T—“This is impor-
tant tax information and is being fur-
nished to the Internal Revenue Service.”
(d) Forms 1099–A and 1099–C—
“This is important tax information and is
being furnished to the Internal Revenue
Service. If you are required to file a re-
turn, a negligence penalty or other sanc-
tion may be imposed on you if taxable in-
come results from this transaction and the
IRS determines that it has not been re-
ported.”
(e) Forms 1099–B, 1099–DIV,
1099–G, 1099–INT, 1099–MISC,
1099–OID, 1099–PATR, and W–2G
(Copy C)—“This is important tax infor-
mation and is being furnished to the Inter-
nal Revenue Service. If you are required
to file a return, a negligence penalty or
other sanction may be imposed on you if
this income is taxable and the IRS deter-
mines that it has not been reported.”
Copy B of Form W–2Gmust state “This
information is being furnished to the In-
ternal Revenue Service. Report this in-
come on your Federal tax return. If this
form shows Federal income tax withheld
in box 2, attach this copy to your return.”
(f) Form 1099–LTC, Copy B—
“This is important tax information and is
being furnished to the Internal Revenue
Service. If you are required to file a re-
turn, a negligence penalty or other sanc-
tion may be imposed on you if this item is
required to be reported and the IRS deter-
mines that it has not been reported.”
Copy C—“Copy C is provided to you for
information only. Only the policyholder
is required to report this information on a
tax return.”
(g) Form 1099–MSA—“This infor-
mation is being furnished to the Internal
Revenue Service.”
(h) Form 1099–R, Copy B—“Re-
port this income on your Federal tax re-
turn. If this form shows Federal income
tax withheld in box 4, attach this copy to
your return.” “This information is being
furnished to the Internal Revenue Ser-
vice.” Copy C—“This information is
being furnished to the Internal Revenue
Service.”
(i) Form 1099–S—“This is impor-
tant tax information and is being fur-
nished to the Internal Revenue Service. If
you are required to file a return, a negli-
gence penalty or other sanction may be
imposed on you if this item is required to
be reported and the IRS determines that it
has not been reported.”
(j) Form 5498—“This information
is being furnished to the Internal Revenue
Service.” Note:If you do not furnish an-
other statement to the participant because
no contributions were made for the year,
the statement of the fair market value of

June 29, 1998121998–26 I.R.B.
the account must contain this legend and
a designation of which information is
being furnished to the Internal Revenue
Service.
(k) Form 5498–MSA—“The infor-
mation in boxes 1 through 5 is being fur-
nished to the Internal Revenue Service.”
.04 COMPOSITE SUBSTITUTE
STATEMENT – FORMS SPECIFIED
IN 7.03 ONLY.—A composite form re-
cipient statement for forms specified in
7.03 is permitted when one filer is report-
ing more than one type of payment during
a calendar year to the same form recipi-
ent. A composite statement is not allow-
able for a combination of forms listed in
7.01 and forms listed in 7.03 except that a
filer may report Form 1099–Binforma-
tion on a composite form with the forms
listed in 7.01 as described in 7.02. In ad-
dition, royalties reported on Form
1099–MISC or 1099–S may be reported
on a composite form only with forms
listed in 7.01. Although the composite
form recipient statement may be on one
sheet, the format of the composite form
recipient statement must satisfy the re-
quirements listed in 7.02 above in addi-
tion to the requirements specified in 7.03.
A composite statement of Forms 1098
and 1099–INT(for interest reportable
under section 6049) IS NOT ALLOW-
ABLE.
PART B—SPECIFICATIONS FOR
SUBSTITUTE FORMS TO BE
FILED WITH IRS (EXCEPT
Form W–2G)
SEC. 1. GENERAL
.01 The following specifications pre-
scribe the format requirements for Forms
1096 and Copy A of Forms 1098, 1099,
and 5498. (See Part C for Form W–2G
specifications.)
.02 The form identifying number (e.g.,
9191 for Form 1099–DIV) must be
printed in nonreflective black carbon-
based ink in print positions 15 through 19
using an OCR A font. The check boxes
located to the right of the form identifying
number must be 10-point boxes, the void
check box is in print position 25 and the
corrected check box in position 33. These
measurements are from the left edge of
the paper, not including the perforated
strip.
SEC. 2. SPECIFICATIONS FOR
FORM 1096 AND COPY A OF
FORMS 1098, 1099 AND 5498
.01 The substitute form must be an
exact replica of the official IRS form with
respect to layout and content. NOTE:To
determine the correct form measure-
ments, see Exhibits A through T at the end
of this publication. Hot wax and cold car-
bon spots are not permitted on any of the
internal form plies. These spots are per-
mitted on the back of a mailer top enve-
lope ply. Use of chemical transfer paper
for Copy A is acceptable. The Govern-
ment Printing Office (GPO) symbol must
be deleted.
.02 Color and quality of paper for
Copy A (cut sheets and continuous pin-
feed forms) as specified by JCP Code 0-
25, dated November 29, 1978, must be
white 100% bleached chemical wood, op-
tical character recognition (OCR) bond
produced in accordance with the follow-
ing specifications:
NOTE:Reclaimed fiber in any per-
centage is permitted provided the require-
ments of this standard are met.
(1) Acidity: Ph value, average,
not less than . . . . . . . . . . . . . . 4.5
(2) Basis Weight 17 322 500
cut sheets . . . . . . . . . . . . . . 18–20
Metric equivalent—g/m
2
. . . . . 75
A Tolerance of ±5 pct. shall
be allowed.
(3) Stiffness: Average, each
direction, not less than—
milligrams . . . . . . . . . . . . . . . . 50
(4) Tearing strength: Average,
each direction, not less than—
grams . . . . . . . . . . . . . . . . . . . . .40
(5) Opacity: Average, not less
than—percent . . . . . . . . . . . . . . 82
(6) Thickness: Average—inch—
0.0038
Metric equivalent—mm—0.097
A tolerance of +0.0005 inch
(0.0127 mm) shall be allowed.
Paper shall not vary more than
0.0004 inch (0.0102 mm) from
one edge to the other.
(7) Porosity: Average, not less
than—seconds . . . . . . . . . . . . . 10
(8) Finish (smoothness): Average,
each side—seconds . . . . . . 20–55
For information only, the
Sheffield equivalent—
units . . . . . . . . . . . . . . . . 170–100
(9) Dirt: Average, each side,
not to exceed—parts per
million . . . . . . . . . . . . . . . . . . . . 8
.03 All printing on Copy A of Forms
1098, 1099, 5498 and the printing on
Form 1096 above the statement: “Please
return this entire page to the Internal
Revenue Service. Photocopies are NOT
acceptable.”must be in red OCR dropout
ink, Flint J–6983 (formerly Sinclair-
Valentine) or an exact match, except for
the 4-digit form identifying numbers,
which must be printed in non-reflective
carbon-based black ink. The shaded areas
of any substitute form should generally
correspond to that present on the official
form. All printing including and below
the Form 1096 statement may be in any
shade or tone of black ink. Black ink
should only appear on the lower portion
of the reverse side of Form 1096where it
would not bleed through and interfere
with scanning. NOTE:The instructions
on the back of Form 1096, which include
filing addresses, must be printed.The
instructions to filers printed on the back
of the copy designated for the Payer, Re-
cipient for Form 1098 and 1098–E,
Lender for Form 1099–A, Creditor for
Form 1099–C, Filer for Form 1098–T and
1099–S, or Trustee or Issuer for Forms
5498 and Form 5498–MSA, may be
printed in any ink color or tone. Separa-
tion between fields must be 0.1 inch.
Other than the Form 1099–R, the num-
bered captions are printed as a solid with
no shaded background. Other printing re-
quirements are discussed below.
OCR Specifications
The contractor must have or initiate a
quality control program to assure OCR
ink density. In addition, the contractor
must have access to either a MacBeth
PCM-II tester or a Kidder 082A tester to
evaluate the ink at regular intervals
throughout a shift.
Paper and Ink
Readings will be made when printed on
approved 20 lb. white OCR bond with a
reflectance of not less than 80%. Black
ink used must not have a reflectance
greater than 15%. These readings are
based on requirements of the ”Scan-
Optics Series 9000” Optical Scanner
using Flint Ink (Formerly known as Sin-
clair – Valentine J–6983 red ink) or equal.

1998–26 I.R.B.13June 29, 1998
MacBeth PCM II Tester
The tested Print Contrast Signal (PCS)
values when using the MacBeth PCM-II
tester on the “C” scale must range from
.01 minimum to .06 maximum.
Kidder 082A Tester
The tested Print Contrast Signal (PCS)
values when using the Kidder 082A tester
on the Infra Red (IR) scale must range
from .12 minimum to .21 maximum.
White calibration disc must be 100%,
sensitivity must be set at one (1).
Alternative Tester
If an alternative tester is used it must be
approved by the Government so that
tested (PCS) values can be established
with this equipment. Approval may be
obtained by writing to the following ad-
dress:
Commissioner of Internal Revenue
Attn: HR:F:P:P Room 1237
Tax Forms Procurement Analyst
1111 Constitution Avenue, NW
Washington, DC 20224
.04 Typography – Type must be sub-
stantially identical in size and shape with
corresponding type on the official form.
All rules are either
1
⁄
2
-point or
3
⁄
4
-point.
Rules must be identical to that on the offi-
cial IRS form. NOTE: The form identi-
fying number must be nonreflective car-
bon-based black ink in OCR A Font.
.05 Dimension – Three Forms 1098,
1099, or 5498 (Copy A) are contained on
a single page, except Form 1099–R,
which contains two documents per page,
which is 8 inches wide (exclusive of any
snap-stubs and/or pinfeed holes) by 11
inches deep. There is a .33 inch top mar-
gin from the top of the corrected box, and
there is a .25 inch right margin. There is a
1/32” (0.0313”) tolerance for the right
margin. These measurements are con-
stant for all Forms 1098, 1099 and 5498.
The measurements will be shown only
once in the exhibit section of this publica-
tion, on the Form 1098.Exceptions to
these measurements will be shown on the
remainder of exhibits. If the right and top
margins are properly aligned, the left mar-
gin for all forms will be correct. All mar-
gins must be free of all printing. See Ex-
hibits A through T in this publication for
the correct form measurements.
.06 The depth of the individual trim
size of each form on a page must be the
same as that of the official form (3
2
⁄
3
inches, except 5
1
⁄
2
inches for Form
1099–R).
.07 The words “For Paperwork Reduc-
tion Act Notice and instructions for com-
pleting this form, see the 1998 Instruc-
tions for Forms 1099, 1098, 5498, and
W–2G” mustbe printed on Copy A. The
words “For more information and the Pa-
perwork Reduction Act Notice, see the
1998 Instructions for Forms 1099, 1098,
5498, and W–2G” mustbe printed on
Form 1096.
.08 The OMB Number mustbe printed
on Copies A and Form 1096 in the same
location as that on the official form.
.09 Privately printed continuous sub-
stitute forms (Copy A) must be perforated
at each 11” (3 per page, or 2 per page for
1099–R) page depth. No perforations are
allowed between the 3-
2
⁄
3
” forms (or 5-
1
⁄
2
”
for Form 1099–R) on a single copy page
of Copy A.
.10 The words “Do NOT Cut or Sepa-
rate Forms on This Page”must be
printed in red dropout ink (as required by
form specifications) between the three
forms, or two forms for Forms 1099–R.
NOTE: Perforations are required between
all the other individual copies (Copies B
and C, and Copies 1 and 2 for Form
1099–R and Form 1099–MISC,and
Copy D for Form 1099–R) included in
the set.
.11 Chemical transfer paper is permit-
ted for Copy A only if the following stan-
dards are met:
(1) Only chemically backed paper is
acceptable for Copy A.
(2) Carbon coated forms are not per-
mitted. Front and back chemically treated
paper cannot be processed properly by
machine.
(3) Chemically transferred images
must be black in color.
.12 Hot wax and cold carbon spots are
NOT permitted for Copy A. Interleaved
carbon should be black and must be of
good quality to assure legibility of infor-
mation on all copies to preclude smudg-
ing. All copies must be CLEARLY LEG-
IBLE. Fading must not be of such a
degree as to preclude legibility.
.13 Printer’s symbol—The GPO sym-
bol must not be printed on substitute
Copy A. Instead, the employer identifica-
tion number (EIN) of the forms printer
must be entered in the bottom margin on
the face of each individual form of Copy
A, or the bottom margin on the reverse
side of each Form 1096. THE FORM
MUST NOT CONTAIN THE STATE-
MENT “IRS APPROVED.”
.14 A postal indicia may be used if it
meets the following criteria: a) it is
printed in the OCR ink color prescribed
for the form; and b) no part of the indicia
is within 1 print position of the scannable
area.
.15 The Catalog Number (Cat. No.)
shown on the 1998 forms is used for IRS
distribution purposes and need not be
printed on any substitute forms.
PART C. SPECIFICATIONS FOR
SUBSTITUTE FORMS W–2G TO
BE FILED WITH IRS
SEC. 1. GENERAL
.01 The following specifications pre-
scribe the format requirements for Form
W–2G—COPY A ONLY.
.02 A filer may file a substitute Form
W–2Gwith the IRS (hereinafter referred
to as “substitute Copy A”). The substitute
form (filed with the IRS) must be an exact
replica of the official form with respect to
layout and contents.
SEC. 2. SPECIFICATIONS FOR
COPY A OF FORMS W–2G
.01 Color and Quality of Paper—Paper
for Copy A must be white chemical wood
bond, or equivalent, 20 pound (basis 17 3
22–500), plus or minus 5 percent. The
paper must consist substantially of
bleached chemical wood pulp and be free
from unbleached or ground wood pulp or
recycled printed paper. It also must be
suitably sized to accept ink without feath-
ering.
.02 Color and Quality of Ink—All
printing must be in a high quality non-
gloss black ink. Bar codes should be free
from picks and voids.
.03 Typography—The type must be
substantially identical in size and shape
with that on the official form. All rules on
the document are either
1
⁄
2
point (.007
inch), 1 point (0.015 inch), or 3 point
(0.045). Vertical rules must be parallel to
the left edge of the document; horizontal
rules, to the top edge.

June 29, 1998141998–26 I.R.B.
.04 Dimensions—The official form is
8 inches wide x 3-
2
⁄
3
inches deep, exclu-
sive of a
2
⁄
3
inch snap stub on the left side
of the form. The snap feature is not re-
quired on substitutes. The top and right
margins must be
1
⁄
4
inch plus or minus
.0313. If the top and right margins are
properly aligned, the left margin for all
forms will be correct. All margins must
be free of any printing. If the substitute
forms are in continuous or strip form,
they must be burst and stripped to con-
form to the size specified for a single
form.
(1) The width of a substitute Copy A
must be 8 inches. The left margin must be
free of all printing other than that shown
on the official form.
(2) The depth of a substitute Copy A
must be 3-
2
⁄
3
inches.
.05 Hot wax and cold carbon spots are
not permitted on any of the internal form
plies. These spots are permitted on the
back of a mailer top envelope ply. Inter-
leaved carbons, if used, should be black
and of good quality to preclude smudging.
.06 Printer’s Symbol—The Govern-
ment Printing Office (GPO) symbol must
not be printed on substitute Forms W–2G.
Instead the employer identification num-
ber (EIN) of the forms printer must be
printed in the bottom margin on the face
of each individual form of Copy A of such
substitute forms. The form must not con-
tain the statement “IRS approved.”
.07 The Catalog Number (Cat. No.)
shown on the 1998 Form W–2G is used
for IRS distribution purposes and need
not be printed on any substitute forms.
PART D. ADDITIONAL INSTRUC-
TIONS FOR FORMS 1098, 1099,
5498, AND W–2G
SEC. 1. OTHER COPIES
.01 Copies B, C, and in some cases D,
1, and 2, are included in the official as-
sembly for the convenience of the filer.
There is no legal requirement that pri-
vately printed substitute forms include all
these copies. Copies B, and in some cases
Copies C, will satisfy the requirement of
the law and regulations concerning the
statement of information that is required
to be furnished to the form recipient.
NOTE:If an amount of Federal income
tax withheld is shown on Form W–2G or
1099–R,Copy B (to be attached to the tax
return) and Copy C mustbe furnished to
the recipient. Copy D (Forms 1099–R
and W–2G) may be desired as a filer
record copy. Only Copy A should be filed
with the IRS.
.02 Arrangement of Assembly- The
parts of the assembly must be arranged,
from top to bottom, as follows: (a) All
forms-Copy A “For Internal Revenue Ser-
vice Center.” (b) Form 1098 – Copy B
“For Payer”; Copy C “For Recipient.” (c)
Form 1098-E – Copy B “For Borrower”;
Copy C “For Recipient.” (d) Form 1098–
T – Copy B “For Student”; Copy C “For
Filer.” (e) Form 1099–A – Copy B “For
Borrower”; Copy C “For Lender.”(f)
Forms 1099–B, 1099–DIV, 1099–G,
1099–INT, 1099–MSA, 1099–OID, and
1099–PATR - Copy B “For Recipient”;
Copy C “For Payer.” (g) Form 1099–C –
Copy B “For Debtor”; Copy C “For Cred-
itor.” (h) Form 1099–LTC – Copy B “For
Policyholder”; Copy C “For Insured” and
Copy D “For Payer.” (i) Form
1099–MISC – Copy 1 “For State Tax De-
partment”; Copy B “For Recipient”; Copy
2 “To be filed with recipient’s state in-
come tax return, when required.”; Copy C
“For Payer.” (j) Form 1099–R – Copy 1
“For State, City, or Local Tax Depart-
ment”; Copy B “Report this income on
your Federal tax return. If this form
shows Federal income tax withheld in box
4, attach this copy to your return.”; Copy
C “For Recipient’s Records”; Copy 2
“File this copy with your state, city, or
local income tax return, when required.”;
Copy D “For Payer.” (k) Form 1099–S –
copy B “For Transferor”; Copy C “For
Filer.”(l) Form 5498 - Copy B “For Par-
ticipant”; Copy C “For Trustee or Is-
suer.”(m) Form 5498-MSA – Copy B
“For Participant”; Copy C “For Trustee.”
(n) Form W–2G – Copy 1 “For State Tax
Department”; Copy B “Report this in-
come on your Federal tax return. If this
form shows Federal income tax withheld
in box 2, attach this copy to your return.”
Copy C “For Winner’s Records”; Copy 2
“Attach this copy to your state income tax
return, if required.”; Copy D “For Payer.”
.03 Perforations are required between
forms on all copies except Copy A to en-
able the separation of individual forms.
Copy A of Form W–2G may be perfo-
rated.
SEC. 2. OMB REQUIREMENTS
.01 Office of Management and Budget
(OMB) Requirements for Substitute
Forms—Public Law 96-511 requires that
: (1) OMB approve Internal Revenue Ser-
vice tax forms, (2) each form show (in the
upper right corner) the OMB approval
number, and (3) the form (or its instruc-
tions) state why IRS is collecting the in-
formation, how it will be used and
whether it must be given to IRS. The offi-
cial IRS forms or instructions contain this
information and any substitute must con-
tain it also.
.02 The OMB requirements for substi-
tute IRS forms are:
(1) All substitute forms, including
substitute statements to recipients,must
show the OMB number as it appears on
the official IRS form;
(2) For Copy A, the OMB number
must appear exactly as shown on the offi-
cial IRS form;
(3) For any copy other than Copy A,
the OMB number must use one of the fol-
lowing formats:
(a) OMB No. XXXX–XXXX
(preferred) or;
(b) OMB # XXXX–XXXX.
(4) All substitute forms (Copy A
only) must state “For Paperwork Reduc-
tion Act Notice, see the 1998 Instructions
for Forms 1099, 1098, 5498, and W–2G.”
.03 The official OMB numbers may be
obtained from the official IRS printed
forms, and are also shown on the forms in
the exhibits.
SEC 3. REPRODUCIBLE COPIES
.01 As of April 30, 1996, IRS discon-
tinued taking orders for reproducible and
information copies of federal tax materi-
als. However, there are several new op-
tions available to obtain federal tax mater-
ial. The new options are:
(1) Internal Revenue Information
Services (IRIS)—IRIS is housed within
FedWorld, known also as the Electronic
Marketplace of U.S. Government Infor-
mation. IRIS at FedWorld can be reached
by:
(a) Modem (dial up) at 703-321-
8020,
(b) by Internet – Telnet to
iris.irs.ustreas.gov
(c) by File Transfer Protocol
(FTP) connect to – ftp.irs.ustreas.gov

1998–26 I.R.B.15June 29, 1998
(d) or by World Wide Web –
http://www.irs.ustreas.gov
(2) IRS Federal Tax Forms CD-
ROM—The IRS also offers an alternative
to downloading electronic files from IRIS
and provides current and prior-year access
to tax forms and instructions through it’s
Federal Tax Forms CD-ROM. First of-
fered during 1994, the CD will again be
available for the upcoming filing season.
For system requirements and to order the
1998 Federal Tax Forms CD-ROM contact
the Government Printing Office’s (GPO’s)
Superintendent of Documents either:
(a) by telephone 202-512-1800;
or
(b) electronically through GPO’s
Web Site at http://www.access.gpo.gov/
su_docs
(3) Government Printing Office
Superintendent of Documents Book-
stores—The Government Printing Office
Superintendent of Documents Bookstores
also sell individual copies of tax forms,
instructions and publications. Call 202-
512-1800 to find the bookstore nearest to
you.
.02 Forms 1096, 1098, 1099 series,
and 5498 series are provided electroni-
cally on the IRS home page, IRIS bulletin
board system, and on the Federal Tax
Forms CD-ROM, but CANNOTbe used
for filing with IRS when printed from a
conventional printer. These forms contain
drop-out ink requirements as described in
Part B, Section 2 of this publication.
SEC. 4. EFFECT ON OTHER
REVENUE PROCEDURES
Revenue Procedure 97–32, 1997–27
I.R.B. 9, covering paper returns and state-
ments for payments made during the 1997
calendar year is hereby superseded. Rev-
enue Procedure 97–32A, Addendum to
Revenue Procedure 97–32, 1997–27
I.R.B. 9 which provides the Rules and
Specifications for Private Printing of
Forms 1096, 1099 Series, 5498 and
W–2G is hereby superseded.

June 29, 1998161998–26 I.R.B.

1998–26 I.R.B.17June 29, 1998

June 29, 1998181998–26 I.R.B.

1998–26 I.R.B.19June 29, 1998

June 29, 1998201998–26 I.R.B.

1998–26 I.R.B.21June 29, 1998

June 29, 1998221998–26 I.R.B.

1998–26 I.R.B.23June 29, 1998

June 29, 1998241998–26 I.R.B.

1998–26 I.R.B.25June 29, 1998

June 29, 1998261998–26 I.R.B.

1998–26 I.R.B.27June 29, 1998

June 29, 1998281998–26 I.R.B.

1998–26 I.R.B.29June 29, 1998

June 29, 1998301998–26 I.R.B.

1998–26 I.R.B.31June 29, 1998

June 29, 1998321998–26 I.R.B.

1998–26 I.R.B.33June 29, 1998

June 29, 1998341998–26 I.R.B.

1998–26 I.R.B.35June 29, 1998

June 29, 1998361998–26 I.R.B.
26 CFR 601.204: Changes in accounting periods
and in methods of accounting.
(Also Part I, sections 197, 263, 263A; 1.263A-2.)
Rev. Proc. 98–39
SECTION 1. PURPOSE
.01 This revenue procedure modifies
Rev. Proc. 97–35, 1997–33 I.R.B. 11,
which describes three alternative methods
of accounting for package design costs:
(1) the capitalization method, (2) the de-
sign-by-design capitalization and 60-
month amortization method, and (3) the
pool-of-cost capitalization and 48-month
amortization method. A taxpayer with
package design costs within the scope of
Rev. Proc. 97–35 may change to or adopt
any one of these three methods. The pro-
cedures for a taxpayer to change to one of
these three methods are provided in Rev.
Proc. 97–37, 1997–33 I.R.B. 18, which
provides simplified and uniform proce-
dures to obtain automatic consent to make
this and other changes in methods of ac-
counting.
.02 Rev. Proc. 97–35 is modified to
make clear that capitalization under § 263
(and not § 263A) of the Internal Revenue
Code is applicable for package design
costs incurred in taxable years beginning
after December 31, 1993, pursuant to
§ 1.263A–2(a)(2)(ii) of the Income Tax
Regulations. In addition, Rev. Proc. 97–
35 is further modified to make clear that it
does not apply to the costs of a package
design that is an “amortizable § 197 intan-
gible” as defined in § 197(c). Rev. Proc.
97–35 will appear in 1997–2 C.B. as
modified by this revenue procedure.
SECTION 2. MODIFICATIONS
.01 Section 1 of Rev. Proc. 97–35 is
modified by deleting section 1.02.
.02 Section 2 of Rev. Proc. 97–35 is
modified by adding the word “design”
after the word “package” in the next to
last sentence.
.03 Section 3.03 of Rev. Proc. 97–35 is
modified by changing the regulation cite,
deleting the last sentence and a cite, and
adding a new last sentence and a cite to
read as follows:
Seeformer § 1.263A–1T(a)(5)(iii) of
the temporary regulations. Section
263A and the temporary regulations
thereunder required that costs in-
curred after December 31, 1986, in
taxable years beginning before Janu-
ary 1, 1994, must be capitalized to
the extent that they were attributable
to the development and design of
product packages. SeeRev. Rul.
89–23.
.04 Sections 3.04 and 3.05 of Rev.
Proc. 97–35 are renumbered as sections
3.07 and 3.08, respectively, and new sec-
tions 3.04, 3.05, and 3.06 are added to
read as follows:
.04 Section 1.263A–2(a)(2)(ii) of the
final regulations, which, in the case of
property that is not inventory, applies to
costs incurred in taxable years beginning
after December 31, 1993, modified the
definition of tangible personal property to
exclude from “other similar property” any
intellectual or creative property that is
embodied in a tangible medium that is
mass distributed merely incident to the
distribution of a principal product or good
of the creator. Thus, package design costs
incurred in taxable years beginning after
December 31, 1993, are not treated as
costs of tangible personal property under
§ 263A.
.05 Accordingly, taxpayers are re-
quired to: (1) capitalize under § 263 pack-
age design costs incurred prior to January
1, 1987, or in taxable years beginning
after December 31, 1993; and (2) capital-
ize under § 263A package design costs in-
curred after December 31, 1986, in tax-
able years beginning before January 1,
1994.
.06 Section 197(a), which is gener-
ally applicable to property acquired after
August 10, 1993, provides that a taxpayer
is entitled to an amortization deduction
with respect to any “amortizable § 197 in-
tangible” (as defined in § 197(c)), which
may include the costs of certain package
designs. Section 197(b) provides that,
other than the amortization provided in
§ 197(a), no other depreciation or amorti-
zation is allowable for an amortizable
§ 197 intangible.
.05 Section 3.05 of Rev. Proc. 97–35
(new section 3.08) is modified by insert-
ing in the first sentence after “Thus,” the
following: “except for the costs of a pack-
age design that is an amortizable § 197 in-
tangible,”.
.06 Section 4 of Rev. Proc. 97–35 is
modified to read as follows:
.01 Applicability.Except as pro-
vided in section 4.02 of this revenue pro-
cedure, this revenue procedure applies to
the costs of a package design as defined in
section 2 of this revenue procedure.
.02 Inapplicability.This revenue
procedure does not apply to the costs of a
package design that is an amortizable
§ 197 intangible as defined in § 197(c).
.07 Sections 5.01(2)(the capitalization
method), 5.02(2)(the design-by-design
capitalization and 60-month amortization
method), and 5.03(2)(the pool-of-cost
capitalization and 48-month amortization
method) of Rev. Proc. 97–35 are modified
to read as follows:
.01(2) Computation of basis.The
basis of each package design (or modifica-
tion to the design) subject to capitalization
is determined by applying the provisions
of § 263 and the regulations thereunder to
costs incurred prior to January 1, 1987, or
in taxable years beginning after December
31, 1993, and by applying the provisions
of § 263A and the regulations thereunder
to costs incurred after December 31, 1986,
in taxable years beginning before January
1, 1994 (regardless of the tax year the de-
sign (or modification to the design) is
placed in service). The costs required to
be capitalized are described in section 2 of
this revenue procedure.
.02(2) Computation of basis.Under
the design-by-design capitalization and
60-month amortization method, the basis
of each package design (or modification
of the design) subject to capitalization
must be determined by applying the pro-
visions of § 263 and the regulations there-
under to costs incurred prior to January 1,
1987, or in taxable years beginning after
December 31, 1993, and by applying the
provisions of § 263A and the regulations
thereunder to costs incurred after Decem-
ber 31, 1986, in taxable years beginning
before January 1, 1994 (regardless of the
tax year the design (or modification to the
design) is placed in service). The costs
required to be capitalized are described in
section 2 of this revenue procedure.
.03(2) Costs subject to capitaliza-
tion. All package design costs are subject
to capitalization without regard to
whether the costs create a package design
(or modification to the design) having an
ascertainable useful life that extends sub-
stantially beyond the end of the tax year
in which the costs are incurred. Thus, all
package design costs incurred prior to
January 1, 1987, or in taxable years be-

1998–26 I.R.B.37June 29, 1998
ginning after December 31, 1993, that are
capitalized under § 263 and the regula-
tions thereunder or that would be capital-
ized under § 263 and the regulations
thereunder but for the fact that the costs
create a package design (or modification
to the design) having an ascertainable
useful life that does not extend substan-
tially beyond the end of the tax year in
which the costs are incurred must be capi-
talized. All package design costs incurred
after December 31, 1986, in taxable years
beginning before January 1, 1994, that are
capitalized under § 263A and the regula-
tions thereunder or that would be capital-
ized under § 263A and the regulations
thereunder but for the fact that the costs
create a package design (or modification
to the design) having an ascertainable
useful life that does not extend substan-
tially beyond the end of the tax year in
which the costs are incurred must be capi-
talized. The costs required to be capital-
ized are described in section 2 of this rev-
enue procedure.
.08 Section 5 (CHANGING PACK-
AGE DESIGN COSTS METHOD) of
Rev. Proc. 97–35 is renumbered as new
section 6.
.09 Sections 6 (INQUIRIES), 7 (EF-
FECT ON OTHER DOCUMENTS), and
8 (EFFECTIVE DATE), of Rev. Proc.
97–35 are renumbered as new sections 7,
8, and 9, respectively.
.10 Section 7 (EFFECT ON OTHER
DOCUMENTS) of Rev. Proc. 97–35 (new
section 8) is modified to read as follows:
Rev. Rul. 89–23, 1989–1 C.B. 85, is
modified. Rev. Proc. 90–63, 1990–2
C.B. 664, is modified, and as modi-
fied, is superseded. However, see
the transition rules in section 13.02
of Rev. Proc. 97–37.
SECTION 3. EFFECTIVE DATE
This revenue procedure is effective on
August 18, 1997.
DRAFTING INFORMATION
The principal author of this revenue
procedure is Dwight N. Mersereau of the
Office of Assistant Chief Counsel (In-
come Tax and Accounting). For further
information regarding this revenue proce-
dure, contact Mr. Mersereau on (202)
622-4970 (not a toll free call).

June 29, 1998381998–26 I.R.B.
Part IV. Items of General Interest
Notice of Proposed Rulemaking
and Notice of Public Hearing
Trading Safe Harbors
REG–106031–98
AGENCY: Internal Revenue Service
(IRS), Treasury.
ACTION: Notice of proposed rulemaking
and notice of public hearing.
SUMMARY: This document contains
proposed rules for the treatment of for-
eign taxpayers trading in derivative finan-
cial instruments for their own account.
These proposed rules provide that foreign
taxpayers who effect transactions in de-
rivative financial instruments for their
own accounts are not thereby engaged in
a trade or business in the United States if
they are not dealers in stocks, securities,
commodities or derivatives. These pro-
posed rules affect foreign persons that
conduct such trading for their own ac-
count either directly through U.S. offices
or indirectly through partnerships or other
agents. This document also provides no-
tice of a public hearing on these proposed
regulations.
DATES: Written comments must be re-
ceived by September 10, 1998. Outlines
of oral comments to be discussed at the
public hearing scheduled for September
9, 1998, must be received by August 19,
1998.
ADDRESSES: Send submissions to:
CC:DOM:CORP:R (REG–106031–98),
room 5226, Internal Revenue Service,
POB 7604, Ben Franklin Station, Wash-
ington, DC 20044. Submissions may be
hand delivered between the hours of 8
a.m. and 5 p.m. to: CC:DOM:CORP:R
(REG–106031–98), Courier’s Desk, In-
ternal Revenue Service, 1111 Constitution
Avenue NW, Washington, DC. Alterna-
tively, taxpayers may submit comments
electronically via the Internet by selecting
the “Tax Regs” option on the IRS Home
Page, or by submitting comments directly
to the IRS Internet site at http://www.irs.
ustreas.gov/prod/tax_regs/comments.html.
The public hearing will be held in room
2615, Internal Revenue Building, 1111
Constitution Avenue NW., Washington,
DC.
FOR FURTHER INFORMATION CON-
TACT: Milton Cahn of the Office of As-
sociate Chief Counsel (International),
(202) 622-3870; concerning submissions
and the hearing, LaNita Van Dyke, (202)
622-7190 (not toll-free numbers).
SUPPLEMENTARY INFORMATION:
Background
Section 864(b) of the Code provides
that the phrase “trade or business within
the United States” generally includes the
performance of personal services within
the United States at any time during the
taxable year but, under certain circum-
stances, does not include trading in
stocks, securities, or commodities through
an independent agent or for a taxpayer’s
own account (the “trading safe harbors”).
Regulations regarding certain aspects of
the trading safe harbors were promulgated
in 1972. Since the promulgation of these
regulations, the use of derivative financial
instruments has increased significantly.
This is due in large measure to the overall
expansion and growing sophistication of
global capital markets. Although guid-
ance concerning the tax treatment of de-
rivatives and notional principal contracts
has been issued under other provisions of
the Code (see, e.g., §§1.446–3, 1.863–
7(b)), the section 864(b) regulations have
not been modernized to take into account
the manner in which taxpayers customar-
ily use derivative transactions.
Explanation of Provisions
1. In General
These proposed regulations provide
that foreign taxpayers who are not dealers
with respect to any derivative transac-
tions, who are not otherwise dealers in
stocks, securities, or commodities, and
who enter into derivative transactions for
their own accounts are not engaged in
trade or business within the United States
solely by reason of those transactions.
The term “derivative” is defined as an in-
terest rate, currency, equity or commodity
notional principal contract or an evidence
of an interest in, or derivative financial in-
strument in, any commodity, currency, or
any of the items described in Code section
475(c)(2)(A)–(D).
For purposes of these proposed regula-
tions, the term “currency” is limited to
those currencies that are of a kind custom-
arily dealt in on an organized commodity
exchange. No inference is intended, how-
ever, as to whether currencies that are not
traded on an organized commodity ex-
change are “of a kind” customarily dealt
in on an organized commodity exchange.
Comments are solicited on this issue.
Under the statutory safe harbors, tax-
payers who are dealers in stocks and secu-
rities but not commodities may avail
themselves of the commodities trading
safe harbor of section 864(b)(2)(B)(ii),
and likewise, dealers in commodities but
not stocks and securities may avail them-
selves of the stocks and securities trading
safe harbor of section 864(b)(2)(A)(ii).
The proposed regulations, however, do
not specify into which statutory safe har-
bor any particular derivative transaction
falls. Accordingly, dealers in stocks, se-
curities, commodities, or derivatives may
not avail themselves of the benefits of
these proposed regulations.
Treasury and the IRS are considering
the appropriate application of both the
stocks and securities safe harbor of sec-
tion 864(b)(2)(A)(ii) and the commodities
safe harbor of section 864(b)(2)(B)(ii)
with respect to a dealer in a derivative
which arguably might be classified as
both a security and a commodity. Trea-
sury and the IRS are also considering the
appropriate application of the section
864(b)(2)(A)(ii) and (B)(ii) safe harbors
to dealers in either stocks and securities or
commodities who enter into a derivative
transaction which arguably might be clas-
sified within both sections. Comments
are solicited on these points including the
classification of specific derivatives for
purposes of the safe harbors.
Comments are also solicited regarding
whether the final regulations should in-
clude derivative transactions in either the
stocks and securities, or commodities
trading safe harbors under sections
864(b)(2)(A)(i) and (B)(i). In particular,
the IRS solicits comments as to whether
certain dealers could inappropriately
avoid the limitations of section
864(b)(2)(C) with respect to derivative

1998–26 I.R.B.39June 29, 1998
transactions effected through independent
agents in the United States.
2. Eligible Nondealer
Until Treasury and the IRS determine
whether particular derivative transactions
should be classified under the stocks and
securities or commodities safe harbors,
the proposed regulations provide that de-
rivative transactions (including hedging
transactions) do not constitute a U.S.
trade or business if the taxpayer meets the
newly proposed definition of an “eligible
nondealer.”
An eligible nondealer is defined as a
foreign resident taxpayer who is not a
dealer in stocks, securities, commodities
or derivatives at any time during the tax-
able year. Dealer status is determined on
a worldwide basis and disqualifies a tax-
payer from the safe harbor of the pro-
posed regulations even if no dealing ac-
tivities are conducted in the United States.
For example, if a taxpayer is a dealer in
commodities through its home country of-
fice and conducts no dealing activities
through its U.S. office, but enters into de-
rivative transactions for its own account
through the U.S. office, the taxpayer fails
to be an eligible nondealer.
Under the proposed regulations, the de-
finition of dealer in stocks or securities
refers to §1.864–2(c)(2)(iv) and the defin-
ition of dealer in commodities refers to
the use of that term in §1.864–2(d). The
definition of eligible nondealer contains
language based on the definition of dealer
in securities in 475(c)(1)(B), including
regularly holding oneself out, in the ordi-
nary course of one’s trade or business, as
being willing and able to enter into either
side of a derivative transaction. See
§1.475(c)–1(a)(2).
Treasury and the IRS are considering
issuing additional guidance with respect
to the definition of a dealer for purposes
of applying the trading safe harbors gen-
erally. Comments are solicited regarding
the definition of a dealer, including the
adequacy of the present rules in §1.864–
2(c)(2)(iv) and §1.864–2(d), possible
rules for identifying derivative transac-
tions entered into with customers in the
“ordinary course,” and the appropriate-
ness of adopting a definition similar to
that provided in section 475(c)(1).
3. Swaps on U.S. Equities
Treasury and the IRS are aware that in
order to avoid the tax imposed on U.S.
source dividends under sections 871 and
881 and Chapter 3 of the Code, some for-
eign investors use notional principal con-
tract transactions based on U.S. equities
(“U.S. based equity swaps”). Accord-
ingly, Treasury and the IRS are consider-
ing whether rules should be developed to
preserve the withholding tax with respect
to such transactions. Specifically, Trea-
sury and the IRS are evaluating whether
conduit (e.g., section 7701(l)) or other
principles should be invoked in regula-
tions, to characterize payments made with
respect to U.S. based equity swaps as sub-
ject to U.S. withholding tax.
Treasury and the IRS are considering
whether or not finalization of the proposed
regulations as they relate to U.S. based eq-
uity swaps should await guidance con-
cerning the application of the withholding
rules to such transactions. Broadening the
section 864(b)(2)(A)(ii) and (B)(ii) safe
harbors to include derivatives could im-
pair the ability of the United States to tax
U.S. source dividend payments.
Congress enacted the stocks and securi-
ties trading safe harbor in 1936 to provide
certainty that foreign persons who merely
trade stocks and securities would not be
subject to the net income tax regime.
Section 211(b), Revenue Act of 1936,
Pub. L. 74–740, 49 Stat. 1648, 1714–15
(1936); S. Rep. No. 2156, 74th Cong., 2d
Sess. 21 (1936). Congress’ decision to in-
clude the safe harbor was premised on the
fundamental assumption that ordinary in-
come from U.S. stocks and securities
would be appropriately subject to U.S.
taxation through the withholding tax on
fixed and determinable or annual and pe-
riodic income (“FDAP”), and that activi-
ties beyond the scope of the safe harbor
would remain subject to net tax if the tax-
payer was engaged in a trade or business
or had an office in the United States. Id.
The Foreign Investors Tax Act of 1966,
which expanded the trading safe harbors
to include trading activities conducted by
or on behalf of a non-U.S. resident tax-
payer through a U.S. office for the foreign
taxpayer’s own account, built upon the
same principles reflected in the Revenue
Act of 1936. See Section 102(d), Foreign
Investors Tax Act of 1966, Pub. L.
89–809, 80 Stat. 1539, 1544 (1966); S.
Rep. No. 1701, 99th Cong., 2d Sess. 16-
17, 22–23, 32–33 (1966).
Treasury and the IRS request com-
ments regarding the U.S. taxation of non-
U.S. persons investing in derivatives gen-
erally in addition to the treatment of de-
rivatives under the trading safe harbors.
Comments are also solicited concerning
the appropriate source of payments made
pursuant to U.S. based equity swaps and
whether conduit or other principles
should be invoked for purposes of sec-
tions 871, 881 and Chapter 3 of the Code,
including the circumstances under which
such payments between non-U.S. resident
counterparties (i.e., foreign-to-foreign
payments) may be included in such regu-
lations. In addition, comments are also
solicited concerning the appropriate treat-
ment of swaps or other derivative transac-
tions on property (other than stocks and
securities) that produce FDAP income,
e.g., rents and royalties.
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 impact analysis is
not required. It also has been determined
that section 553(b) of the Administrative
Procedure Act (5 U.S.C. chapter 5) does
not apply to these regulations, and because
the regulation does not impose a collection
of information on small entities, the Regu-
latory Flexibility Act (5 U.S.C. chapter 6)
does not apply. Therefore, a Regulatory
Flexibility Analysis under the Regulatory
Flexibility Act (5 U.S.C. Chapter 6) is not
required. Pursuant to section 7805(f) of
the Code, this notice of proposed rulemak-
ing will be submitted to the Chief Counsel
for Advocacy of the Small Business Ad-
ministration for comment on their impact
on small business.
Comments and Public Hearing
Before these proposed regulations are
adopted as final regulations, considera-
tion will be given to any written com-
ments that are submitted timely to the IRS
(a signed original and eight (8) copies).
All comments will be available for public
inspection and copying.
A public hearing has been scheduled
for September 9, 1998, at 10:00 A.M.,in
room 2615, Internal Revenue Building,
1111 Constitution Avenue NW, Washing-
ton, DC. Because of access restrictions,
visitors will not be admitted beyond the
Internal Revenue Building lobby more
than 15 minutes before the hearing starts.

June 29, 1998401998–26 I.R.B.
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 September
10, 1998, and submit an outline of the
topics to be discussed and the time to be
devoted to each topic by August 19, 1998.
A period of 10 minutes will be allotted
to each person for making comments.
An agenda showing the scheduling of
the speakers will be prepared after the
deadline for receiving outlines has
passed. Copies of the agenda will be
available free of charge at the hearing.
Proposed Effective Date
These regulations are proposed to be
effective for taxable years beginning 30
days after the date final regulations are
published in the Federal Register.Tax-
payers may elect to apply the provisions
of the final regulations to taxable years
beginning before the date which is 30
days after these regulations are published
as final in the Federal Register.No in-
ference is intended regarding the treat-
ment of derivative transactions under sec-
tions 864(b)(2)(A)(ii) and (B)(ii) and the
current regulations. For periods prior to
the effective date, taxpayers engaged in
derivative transactions may take any rea-
sonable position with regard to the section
864(b)(2)(A)(ii) and (B)(ii) safe harbors.
Positions consistent with these proposed
regulations will be considered reasonable.
Drafting Information
The principal author of these regula-
tions is Milton Cahn of the Office of As-
sociate Chief Counsel (International).
However, other personnel from the IRS
and Treasury Department participated in
their development.
*****
Proposed Amendments to the Regulations
Accordingly, 26 CFR part 1 is pro-
posed to be amended as follows:
PART 1—INCOME TAXES
Paragraph 1. The authority citation for
part 1 continues to read in part as follows:
Authority: 26 U.S.C. 7805 * * *
Par. 2. Section 1.864(b)–1 is added to
read as follows:
§1.864(b)–1 Trading in derivatives.
(a) Trading for taxpayer’s own account.
As used in part I (section 861 and follow-
ing) and part II (section 871 and follow-
ing), subchapter N, chapter 1 of the Inter-
nal Revenue Code (Code), and chapter 3
(section 1441 and following) of the Code,
and the regulations thereunder, if a tax-
payer is an eligible nondealer, the term
engaged in trade or business within the
United Statesdoes not include effecting
transactions in derivatives for the tax-
payer’s own account, including hedging
transactions within the meaning of
§1.1221–2.
(b) Definitions—(1) Eligible non-
dealer. For purposes of this section, an el-
igible nondealeris a person that is not a
resident of the United States and is not, at
any place (domestic or foreign), nor at
any time during that person’s taxable
year, any of the following—
(i) A dealer in stocks or securities as de-
fined in §1.864–2(c)(2)(iv)(a);
(ii) A dealer in commodities as that
term is used in §1.864–2(d); or
(iii) A person that regularly offers to
enter into, assume, offset, assign or other-
wise terminate positions in derivatives
with customers in the ordinary course of a
trade or business, including regularly
holding oneself out, in the ordinary
course of one’s trade or business, as being
willing and able to enter into either side of
a derivative transaction.
(2) Derivative.For purposes of this
section, the term derivativeincludes—
(i) An interest rate, currency (as de-
fined in paragraph (b)(3) of this section),
equity, or commodity (as the term is used
in section 864(b)(2)(B) and §1.864–2(d))
notional principal contract (as the term is
used in section 475(c)(2)); or
(ii) An evidence of an interest, or a de-
rivative financial instrument (including
any option, forward contract, short posi-
tion and any similar financial instrument),
in any—
(A) Commodity (as the term is used in
section 864(b)(2)(B) and §1.864–2(d));
(B) Currency (as defined in paragraph
(b)(3) of this section);
(C) Share of stock (as the term is used
in §1.864–2(c)(2));
(D) Partnership or beneficial ownership
interest in a widely held or publicly traded
partnership or trust;
(E) Note, bond, debenture, or other evi-
dence of indebtedness; or
(F) Notional principal contract de-
scribed in paragraph (b)(2)(i) of this sec-
tion.
(3) Limitation.For purposes of this
section, the term currencyis limited to
currencies of a kind customarily dealt in
on an organized commodity exchange.
Michael P. Dolan,
Deputy Commissioner of
Internal Revenue.
(Filed by the Office of the Federal Register on June
11, 1998, 8:45 a.m., and published in the issue of the
Federal Register for June 12, 1998, 63 F.R. 32164)

1998–26 I.R.B.41June 29, 1998
Announcement 98–55
Proposed Changes to 1999 Forms W–2 and W–3
BackgroundBased on recommendations from the Information Reporting Program Advisory Committee (IRPAC), the
Social Security Administration (SSA), and others, the Internal Revenue Service (IRS) plans to revise Form
W-2, Wage and Tax Statement, and Form W-3, Transmittal of Wage and Tax Statements. Some revisions
will reduce reporting burden and some will enable the SSA to more accurately capture the data reported on
the forms. The revisions are proposed for the 1999 Forms W–2 and W–3 to be filed in 2000.
PurposeThe purpose of this announcement is to request comments on the proposed 1999 Forms W-2 and W-3.
Note: Forms W–2 and W–3 as shown are subject to change and OMB approval before final release.
Changes to The overall size of Form W–2 will remain the same, as shown in the draft of Copy A of the 1999 version.
Form W–2A summary of the proposed changes follows:
•The document code “22222” is relocated to the upper right corner of the form.
• A shaded box separates box a and the “Void” box, which is enlarged and repositioned.
• The “For Official Use Only” area has no top rule and is reformatted.
• The widths of boxes b through e are narrower and boxes 1 through 17 are wider.
• Box e is expanded into four distinct entry areas for employee information:
1) First name and middle initial,
2) Last name,
3) Street address, and
4) City, state, and ZIP code.
• Box f is eliminated.
• Dollar signs ($) are added to boxes 1 through 12c, 16, and 17.
• Shading is added at the end of boxes 1 through 12c.
• Box 12, “Benefits included in box 1,” is eliminated. Employers may continue to report the lease value of
an automobile provided to an employee using a separate statement or by using redesignated box 13.
• Box 13 is redesignated as box 12 and reformatted to boxes 12a, 12b, and 12c to provide three distinct
entry spaces for codes and amounts.
• Box 14 is redesignated as box 13 and repositioned.
• Box 15 is redesignated as box 14 and the checkboxes in box 14 are enlarged.
• Boxes 16 through 21 are redesignated as boxes 15 through 17 and are combined and enlarged to allow
employers to report eitherstate and/orlocal wages and withholdings.
Changes to The overall size of Form W–3 will remain the same, as shown in the draft of the 1999 version. A summary
Form W-3of the proposed changes follows:
• The document code “33333” is relocated to the upper right corner of the form.
• The “For Official Use Only” area has no top rule and is reformatted.
• A shaded horizontal box separates the top of the form from boxes b and 1 and 2.
• Dollar signs ($) are added to boxes 1 through 12 and 15.
• Form W–3 will be a single copy with separate instructions. “YOUR COPY” is eliminated.
Comments The IRS would like to receive comments on the proposed changes to Forms W–2 and W–3 from employ-
Requesteders, payers, payees, and other interested parties by July 31, 1998. Substitute forms will be required to fol-
low the same format for Copy A of Form W–2 and Form W–3. Please send comments to:

June 29, 1998421998–26 I.R.B.
Comments Chairman, Tax Forms Coordinating Committee
RequestedInternal Revenue Service, OP:FS:FP, Room 5577
(continued)1111 Constitution Avenue, NW
Washington, DC 20224
After the end of the comment period, the IRS will evaluate the comments received and announce the changes
to the 1999 Forms W-2 and W-3. Although we will not be able to respond to each comment, we will care-
fully consider all of them.

1998–26 I.R.B.43June 29, 1998

June 29, 1998441998–26 I.R.B.
Foundations Status of Certain
Organizations
Announcement 98–56
The following organizations have
failed to establish or have been unable to
maintain their status as public charities or
as operating foundations. Accordingly,
grantors and contributors may not, after
this date, rely on previous rulings or des-
ignations in the Cumulative List of Orga-
nizations (Publication 78), or on the pre-
sumption arising from the filing of notices
under section 508(b) of the Code. This
listing does notindicate that the organiza-
tions have lost their status as organiza-
tions described in section 501(c)(3), eligi-
ble to receive deductible contributions.
Former Public Charities.The following
organizations (which have been treated as
organizations that are not private founda-
tions described in section 509(a) of the
Code) are now classified as private foun-
dations:
Achieve the Dream Productions Inc.,
Chicago, IL
Affordable Housing of Schenectady, Inc.,
Schenectady, NY
Ark Intergenerational Day Care and
Activity Center, Inc., Covington, KY
AFYA Bora Mobile Medical Unit,
San Jose, CA
Airfest Foundation Inc., Branford, CT
Alabama Council of Teachers of English,
Birmingham, AL
Allardt School Trust, Jamestown, TN
Alliance of Black Churches Inc., Louisa,
VA
Ambrosene Personal Care Facility,
Houston, TX
Arid Club of Portage Michigan Inc.,
Portage, MI
Ark Christian Ministries, Traverse City,
MI
Badger Union High School Endowment
Fund, Inc., Lake Geneva, WI
Bailey Smith Evangelistic Association,
Inc., Atlanta, GA
Baseball USA, San Antonio, TX
BeBop and Beyond, Novato, CA
Bijela Foundation, Westfield, NJ
Black Cinematheque Dallas Inc., Dallas,
TX
Blue Moon Mountain Ranch-An
Environmental and Educational Ctr.,
Fort Collins, CO
Build-Up Ste Genevieve, Ste Genevieve,
MO
Boston Youth Soccer Partnership Inc.,
Rosalindale, MA
Brockton Library Foundation, Inc.,
Brockton, MA
CAL Foundation, Inc., New Orleans, LA
Calmeadow 1993, Toronto, Canada
Carl Albert Take-Down Club Inc.,
Midwest City, OK
Carousel Infant and Childcare Center,
Inc., Lima, OH
Center for Attitudinal Healing in the Twin
Cities, White Bear Lake, MN
Central States Troopers Coalition
Association, Oklahoma City, OK
Charles S. Meyer Family Fund, Chicago,
IL
Childrens Charities, Armonk, NY
Chinese Historical Society of Greater San
Diego and Baja, San Diego, CA
Childrens Food Services, Jefferson City,
MO
COBH Heritage Foundation, New York,
NY
Community Rehabilitative Services of
Florida Inc., Lake Alfred, FL
Conceptual International Agency,
Anchorage, AK
Crippled Children’s Trust of Lincoln
Lodge 914 BPOE, Lincoln, IL
Cure Aids of Wilmington Inc.,
Wilmington, NC
DCN Props, Gurnee, IL
District One B’nai B’rith Foundation
Inc., New York, NY
Eminence Inc., San Jose, CA
Education and Training Institute,
Alexandria, VA
Emergency Medical Transportation, Inc.,
Crookston, MN
Family Health Care Center, Fargo, ND
Field Day America, Inc., Notre Dame, IN
Ford-Iroquois Farm Bureau, Gilman, IL
Foristell Area Historical Society,
Foristen, MO
Foundation for Habitat and Children,
Houston, TX
Friends of North East Florida State
Hospital, MacClenny, FL
Grand Rapids Blaze, Grand Rapids, MI
Green China, Boston, MA
Gretna Economic Development
Association Limited, Gretna, LA
Hamsa Inc., Sedona, AZ
Harvest the Lost Souls Ministries,
Minneapolis, MN
Headspeth Inc., Atlanta, GA
Hospice Choice Inc., Memphis, TN
I Can Inc., Lonoke, AR
Initiative for Better Learning Inc., Austin,
TX
Jefferson County Juniors-United States
Volleyball Association, Ft. Neches, TX
Jesus Way, Inc., Stanten Island, NY
Keehi Memorial Organization, Honolulu,
HI
Kentucky Association of Collegiate
Registrars and Admissions Officers,
Somerset, KY
Las Americas Inc., Hyattsville, MD
Latino Health Organization Inc.,
Milwaukee, WI
Le Cercle Francais, Inc., N. Billerica,
MA
Local 666 I A T S E Disaster Relief Fund,
Chicago, IL
Lord’s Kitchen, Connorsville, IN
Mainstay Boarding Inc., Battle Creek, MI
Mechling Historical Association,
Watseka, IL
Midwest Poultry Consortium Inc.,
Litchfield, MN
Minnechaduza Creek Basin Foundation,
Valentine, NE
Mira Loma High School Booster Club
Inc., Sacramento, CA
Mobile Harvest, Saraland, AL
Much Has Been Given Inc., Provo, UT
National Academy of Law Ethics &
Management Inc., Las Vegas, NV
New Beginnings Day Care Inc.,
Tomahawk, WI
New York Hysterical Society Inc., New
York, NY
North Communities Improvements
Association Inc., Pittsburgh, PA
Northwest Striders Track Club, Olympia,
WA
Osmania University Alumni Foundation
of the United States, Whitefish Bay,
WI
P R I D E for Our Children Inc.,
Lansdale, PA
Parents Forum, Cambridge, MA
Pebbles of Faith, Inc., Bolivar, MO
Phoenix Resident Council Incorporated,
Seminole, OK
Photographic Arts Center of Philadelphia
Inc., Philadelphia, PA
Playground Project Inc., Oceanville, NJ
Point Comfort Volunteer Fire Department
of Point Comfort Texas, Point
Comfort, TX
Presidential Inaugural Foundation-1993,
Washington, DC

1998–26 I.R.B.45June 29, 1998
Project 40, Brooklyn, NY
Project Peer Foundation, Phoenix, AZ
Providing Accessible Living Limited,
New Orleans, LA
Public Advocates Together for Health,
Inc., Hartsdale, NY
R S I Court of the Texas Riveria Empire
Inc., Corpus Christi, TX
Rose Garden Centre, Inc., St. Louis,
MO
Rotary Club of Albuquerque Del Norte
Charity Golf Foundation,
Albuquerque, NM
Ruth Martin Little Theatre of Dauphin
Island, Dauphin Island, AL
San Antonio Urban Network,
San Antonio, TX
Servlife International Inc., Houston, TX
Shawn Allyce White Foundation,
Washington, DC
Shelter Plus Inc., N. Miami Beach, FL
Southwest Florida Library Network,
Ft. Myers, FL
Stop the Madness Movement Committee,
Inc., Grand Rapids, MI
Tejanos Unidos Association of Dallas
Fort Worth, Grand Prairie, TX
Tennessee Soybean Festival Inc., Martin,
TN
Thank You Research Inc., Washington,
DC
Tigard Aquatic Club of Oregon Inc.,
Tualatin, OR
Tim Freudenberg Scholarship Fund, Cold
Spring, KY
Timeless Tales Inc., Denver, CO
Timeweave a Nonprofit Corporation,
Boulder, CO
Timothys House of Hope in Sioux, Sioux
Falls, SD
Tippecanoe Youth Chorus Inc., Lafayette,
IN
Toba Foundation Inc., Tampa, FL
Toivola-Meadowlands Development Inc.,
Meadowlands, MN
Toledo Insectarium Society, Toledo, OH
Tomorrow’s Visions Incorporated, West
Hyattsville, MD
Tomorrows Youth Today Inc., Worcester,
MA
Too Cool Foundation Inc., Houston, TX
Toombs County Foster Parent
Association, Lyons, GA
Top Ten Scholarship Foundation, Los
Angeles, CA
Tortorell Charity Fund Inc., Chicago, IL
Touch of God Ministry Inc., Miami, FL
Touch Somebodys Life, Youngstown, OH
Touch the Earth Foundation, Solana
Beach, CA
Touching All Persons Inc., Detroit, MI
Tower Homes Development Corporation,
Compton, CA
Town and Country Competitive Soccer
Inc., Tampa, FL
Trade Schools, Inc., Rockville, VA
Trails End Riding Association for the
Disabled, Fountain, CO
Train Up a Child Foundation, Carrollton,
TX
Transitional Family Turning Point,
Columbia, MO
Transplant Events Fund, Wauwatosa, WI
Transportation and Technology Museum,
Pittsburgh, PA
Trauma Recovery Foundation, Salt Lake
City, UT
Trauma Research Center Inc., Tampa, FL
Travelers Aid Services of Santa Clara
County, San Jose, CA
Trek for Life Inc., New Brunswick, NJ
Tremont Education Foundation, Tremont,
IL
Trends Training Resources Education and
Networking on Down Syndrome,
Holland, MI
Trenton New Jersey Police Bicentennial
and Museum Committee, Inc.,
Hamilton TWP, NJ
Tres Foundation, San Antonio, TX
Tri-Central Youth Soccer Club, Kempton,
IN
Tri-City Council for Dietetic Education,
Saginaw, MI
Tri County Community Partnership,
Peoria, IL
Tri-County Medical Emergency
Response Team Inc., Midland, IN
Tri-State Amateur Radio Society
Incorporated, Evansville, IN
Triad Arts Ensemble, Morristown, NJ
Triangle Blues Society, Cary, NC
Triangle Recovery Foundation Inc.,
Beaumont, TX
Trinity Adoption Services International
Inc., Houston, TX
Trinity Hospice Inc., Runnemede, NJ
Trinity House Inc., Hamilton, OH
Trinity Development Corporation,
Oakland, CA
Triple Cross Ranch Inc., Okeechobee, FL
Tripp Civic Group, Chicago, IL
True-Holiness Outreach Ministries Inc.,
Memphis, TN
Truevine Community Outreach,
Lynwood, CA
Truth Light & Life Ministries,
Mt. Crawford, VA
Tucson Electric Vehicle Association,
Tucson, AZ
Tucumcari Central Parent-Teacher,
Tucumcari, NM
Tuebingen Placid Way Development
LTD., Ann Arbor, MI
Tulsa Area Wheelchair Sports
Association, Broken Arrow, OK
Tulsa Boys Ranch Inc., Tulsa, OK
Tulsa Memorial High School Foundation
Inc., Tulsa, OK
Tuscaloosa Christian United Appeal
Fund, Tuscaloosa, AL
Tuslaw Jr. Baseball Association, North
Lawrence, OH
Twenty London Road Inc., Cranford, NJ
Twin Drug Rehab and Poly-Ti-Cians
Home Inc., Fort Worth, TX
Twin Elms Writers Center Inc.,
Princeton, NJ
Two Virginias Crusade With Billy
Graham, Princeton, WV
Tyler Place Community Development
Incorporation, Atlanta, GA
Tyrrell Action Group Inc., Columbia, NC
UCA Childrens Charities Foundation
Inc., Memphis, TN
U S A Amateur Baseball Hall of Fame,
Millington, TN
Unified Upliftment, Inc., Brandon, FL
Union Kids Baseball Inc., Tulsa, OK
Union-Tippah Rebel Club Inc., New
Albany, MS
United States Veterans Shelter, Phoenix,
AZ
Unity Housing Corporation, Manvel, TX
Universal Mercy Foundation of Islam,
Livonia, MI
Up Front Film Society, Redding, CA
Up-High Parenting for Prevention
Services, Flint, MI
Upper Valley Youth Association,
Concrete, WA
Upstream Incorporated, Canoga Park, CA
Vallejo Youth Football & Cheerleading
Association, Vallejo, CA
Valley Community Care Productions Inc.,
Arleta, CA
Vamos A La Pena Del Bronx, Inc.,
Bronx, NY
Vanguard Communications, St. Louis, MO
Vermont Womens Foundation, Shelburne,
VT
Versin House Inc. Community Living
Facility, Dolton, IL
Vics House, Stockton, CA

June 29, 1998461998–26 I.R.B.
Victims of Crime Project, Los Angeles,
CA
Victory Ohana Prison Fellowship,
Honolulu, HI
Vietnamese Association of Charlotte,
Charlotte, NC
Vietnamese Scholarship Foundation,
Portland, OR
Village Associates, Inc., Bridgeport, CT
Vintage BMW House, McKinleyville,
CA
W G Barber Scholarship Fund, El Paso,
TX
WDIY, Washington, DC
Waconia Horizons a Minnesota Main
Street Program, Waconia, MN
Wall Biker Memorial Inc., Wisconsin
Dells, WI
Warren Public Library, Inc., Warren, CT
Watertown Athletic Booster Club,
Watertown, WI
Waupaca Area Public Radio
Incorporated, Waupaca, WI
We Care of Franklin County Inc., Rocky
Mount, VA
Weikali Ninja Do Self Protection Agency,
Inc., Nedrow, NY
Wellness 3000, Occidential, CA
Wellpinit Indian Student Scholarship
Fund, Wellpinit, WA
West Central Booster Club Inc., Fayette,
IA
West Mesa High School Boosters,
Albuquerque, NM
West Parent Teacher Organization, New
Philadelphia, OH
West Texas Performing Arts Society,
Lubbock, TX
Westchester Center for Training &
Development, Inc., White Plains, NY
Wethersfield Elderly Housing
Corporation, E. Hartford, CT
If an organization listed above submits
information that warrants the renewal of
its classification as a public charity or as a
private operating foundation, the Internal
Revenue Service will issue a ruling or de-
termination letter with the revised classi-
fication as to foundation status. Grantors
and contributors may thereafter rely upon
such ruling or determination letter as pro-
vided in section 1.509(a)–7 of the Income
Tax Regulations. It is not the practice of
the Service to announce such revised clas-
sification of foundation status in the Inter-
nal Revenue Bulletin.

1998–26 I.R.B.47June 29, 1998
Announcement of the Expedited Suspension of Attorneys, Certified Public
Accountants, Enrolled Agents, and Enrolled Actuaries From Practice
Before the Internal Revenue Service
Under title 31 of the Code of Federal
Regulations, section 10.76, the Director
of Practice is authorized to immediately
suspend from practice before the Internal
Revenue Service any practitioner who,
within five years from the date the expe-
dited proceeding is instituted, (1) has had
a license to practice as an attorney, certi-
fied public accountant, or actuary sus-
pended or revoked for cause; or (2) has
been convicted of any crime under title 26
of the United States Code or, of a felony
under title 18 of the United States Code
involving dishonesty or breach of trust.
Attorneys, certified public accountants,
enrolled agents, and enrolled actuaries are
prohibited in any Internal Revenue Service
matter from directly or indirectly employ-
ing, accepting assistance from, being em-
ployed by, or sharing fees with, any practi-
tioner disbarred or suspended from practice
before the Internal Revenue Service.
To enable attorneys, certified public ac-
countants, enrolled agents, and enrolled ac-
tuaries to identify practitioners under expe-
dited suspension from practice before the
Internal Revenue Service, the Director of
Practice will announce in the Internal Rev-
enue Bulletin the names and addresses of
practitioners who have been suspended
from such practice, their designation as at-
torney, certified public accountant, en-
rolled agent, or enrolled actuary, and date
or period of suspension. This announce-
ment will appear in the weekly Bulletin at
the earliest practicable date after such ac-
tion and will continue to appear in the
weekly Bulletins for five successive weeks
or for as many weeks as is practicable for
each attorney, certified public accountant,
enrolled agent, or enrolled actuary so sus-
pended and will be consolidated and pub-
lished in the Cumulative Bulletin.
The following individual has been
placed under suspension from practice be-
fore the Internal Revenue Service by virtue
of the expedited proceeding provisions of
the applicable regulations:
NameAddressDesignationDate of Suspension
McDonald, MiltonStone Mountain, GAAttorneyIndefinite from February 24, 1998
Parsons, Gary D.Chattanooga, TNCPAIndefinite from February 24, 1998
Buchanan, StevenPhoenix, AZAttorneyIndefinite from February 24, 1998
Caplan, AlanSan Francisco, CAAttorneyIndefinite from February 24, 1998
Delany, R. EmmetRidgefield, CTAttorneyIndefinite from February 24, 1998
Hirsch, SheldonBrooklyn, NYCPAIndefinite from February 24, 1998
Newman, Peter R.Syossett, NYAttorneyIndefinite from February 24, 1998
Land, GaryFayetteville, AREnrolled AgentIndefinite from February 24, 1998
Hunt, William D.Tulsa, OKAttorneyIndefinite from February 24, 1998
Hamilton, RobertCorpus Christie, TXAttorneyIndefinite from February 24, 1998
Rabinowitz, EmileMinnetonka, MNEnrolled AgentIndefinite from February 24, 1998
McCaffrey, MichaelWheaton, ILCPAIndefinite from February 24, 1998
Eisenstein, JoelSt. Charles, MOAttorneyIndefinite from February 24, 1998
Cannavo Jr., Joseph S.St. Louis, MOAttorneyIndefinite from February 24, 1998
Tilker, Robert M.Fairfax, VACPAIndefinite from February 24, 1998
Toms, James H.Hendersonville, NCAttorneyIndefinite from February 24, 1998
Everett, KennethNew York, NYAttorneyIndefinite from February 24, 1998
Frederick, CharlesElk GroveEnrolled AgentIndefinite from March 13, 1998
Artho, DavidLubbock, TXCPAIndefinite from March 18, 1998
Seale, Forrest I.San Antonio, TXCPAIndefinite from March 18, 1998
Yancey, Quinton E.Stephens City, VACPAIndefinite from March 18, 1998
Hunnicut, BenjaminReseda, CACPAIndefinite from March 18, 1998
Finkel, MerleBeverly Hills, CACPAIndefinite from March 18, 1998
Mullay, Carl P.Swoyersville, PACPAIndefinite from March 18, 1998

June 29, 1998481998–26 I.R.B.
Cunning, Dennis A.Molalla, ORCPAIndefinite from March 18, 1998
Adamson, Steven A.Nampa, IDAttorneyIndefinite from April 14, 1998
Bowman, David W.Colorado Springs, COAttorneyIndefinite from April 21, 1998
Beezley, Jack L.Dallas, TXAttorneyIndefinite from April 21, 1998
Cunningham, AndrewHatfield, PACPAIndefinite from April 28, 1998
Palmquist, Craig S.Seattle, WAAttorneyIndefinite from April 21, 1998
Ross, Mark J.Columbus, OHAttorneyIndefinite from April 21, 1998
Madoch, LawrenceElgin, ILCPAIndefinite from April 21, 1998
Taylor, George M.Springfield, ILAttorneyIndefinite from April 21, 1998
Casey, Kenneth J.Corte Madera, CACPAIndefinite from April 21, 1998
Akolt III, John P.Denver, COAttorneyIndefinite from April 21, 1998
Dowdy, FrankHuntsville, ALCPAIndefinite from April 28, 1998
Eckert, Bruce G.Cleveland, OHCPAMay 2, 1998 to May 1, 1999
Rozanski, Lawrence J.Pittsburgh, PACPAJune 1, 1998 to May 30, 2000
Mangum, Carl E.Morris Plains, NJCPAJuly 1, 1998 to December 31, 1999
Reeser, Richard M. Thornton, COCPAJuly 1, 1998 to September 30, 1999
Bailey, Thomas O.Dallas, TXCPAJuly 1, 1998 to June 30, 2001
Johnson, Kenneth E.Forest Lake, MNCPAJuly 1, 1998 to November 30, 1999
Deren, JosephLackawanna, NYAttorneyJuly 1, 1998 to June 30, 2001
NameAddressDesignationDate of Suspension

1998–26 I.R.B.49June 29, 1998
Revenue rulings and revenue procedures
(hereinafter referred to as “rulings”) that
have an effect on previous rulings use the
following defined terms to describe the
effect:
Amplified describes a situation where
no change is being made in a prior pub-
lished position, but the prior position is
being extended to apply to a variation of
the fact situation set forth therein. Thus,
if an earlier ruling held that a principle
applied to A, and the new ruling holds
that the same principle also applies to B,
the earlier ruling is amplified. (Compare
with modified, below).
Clarified is used in those instances
where the language in a prior ruling is
being made clear because the language
has caused, or may cause, some confu-
sion. It is not used where a position in a
prior ruling is being changed.
Distinguisheddescribes a situation
where a ruling mentions a previously
published ruling and points out an essen-
tial difference between them.
Modified is used where the substance
of a previously published position is
being changed. Thus, if a prior ruling
held that a principle applied to A but not
to B, and the new ruling holds that it ap-
plies to both A and B, the prior ruling is
modified because it corrects a published
position. (Compare with amplified and
clarified, above).
Obsoleted describes a previously pub-
lished ruling that is not considered deter-
minative with respect to future transac-
tions. This term is most commonly used
in a ruling that lists previously published
rulings that are obsoleted because of
changes in law or regulations. A ruling
may also be obsoleted because the sub-
stance has been included in regulations
subsequently adopted.
Revoked describes situations where the
position in the previously published rul-
ing is not correct and the correct position
is being stated in the new ruling.
Superseded describes a situation where
the new ruling does nothing more than
restate the substance and situation of a
previously published ruling (or rulings).
Thus, the term is used to republish under
the 1986 Code and regulations the same
position published under the 1939 Code
and regulations. The term is also used
when it is desired to republish in a single
ruling a series of situations, names, etc.,
that were previously published over a pe-
riod of time in separate rulings. If the
new ruling does more than restate the
substance of a prior ruling, a combination
of terms is used. For example, modified
and superseded describes a situation
where the substance of a previously pub-
lished ruling is being changed in part and
is continued without change in part and it
is desired to restate the valid portion of
the previously published ruling in a new
ruling that is self contained. In this case
the previously published ruling is first
modified and then, as modified, is super-
seded.
Supplemented is used in situations in
which a list, such as a list of the names of
countries, is published in a ruling and
that list is expanded by adding further
names in subsequent rulings. After the
original ruling has been supplemented
several times, a new ruling may be pub-
lished that includes the list in the original
ruling and the additions, and supersedes
all prior rulings in the series.
Suspended is used in rare situations to
show that the previous published rulings
will not be applied pending some future
action such as the issuance of new or
amended regulations, the outcome of
cases in litigation, or the outcome of a
Service study.
Abbreviations
The following abbreviations in current use and for-
merly used will appear in material published in the
Bulletin.
A—Individual.
Acq.—Acquiescence.
B—Individual.
BE—Beneficiary.
BK—Bank.
B.T.A.—Board of Tax Appeals.
C.—Individual.
C.B.—Cumulative Bulletin.
CFR—Code of Federal Regulations.
CI—City.
COOP—Cooperative.
Ct.D.—Court Decision.
CY—County.
D—Decedent.
DC—Dummy Corporation.
DE—Donee.
Del. Order—Delegation Order.
DISC—Domestic International Sales Corporation.
DR—Donor.
E—Estate.
EE—Employee.
E.O.—Executive Order.
ER—Employer.
ERISA—Employee Retirement Income Security Act.
EX—Executor.
F—Fiduciary.
FC—Foreign Country.
FICA—Federal Insurance Contribution Act.
FISC—Foreign International Sales Company.
FPH—Foreign Personal Holding Company.
F.R.—Federal Register.
FUTA—Federal Unemployment Tax Act.
FX—Foreign Corporation.
G.C.M.—Chief Counsel’s Memorandum.
GE—Grantee.
GP—General Partner.
GR—Grantor.
IC—Insurance Company.
I.R.B.—Internal Revenue Bulletin.
LE—Lessee.
LP—Limited Partner.
LR—Lessor.
M—Minor.
Nonacq.—Nonacquiescence.
O—Organization.
P—Parent Corporation.
PHC—Personal Holding Company.
PO—Possession of the U.S.
PR—Partner.
PRS—Partnership.
PTE—Prohibited Transaction Exemption.
Pub. L.—Public Law.
REIT—Real Estate Investment Trust.
Rev. Proc.—Revenue Procedure.
Rev. Rul.—Revenue Ruling.
S—Subsidiary.
S.P.R.—Statements of Procedral Rules.
Stat.—Statutes at Large.
T—Target Corporation.
T.C.—Tax Court.
T.D.—Treasury Decision.
TFE—Transferee.
TFR—Transferor.
T.I.R.—Technical Information Release.
TP—Taxpayer.
TR—Trust.
TT—Trustee.
U.S.C.—United States Code.
X—Corporation.
Y—Corporation.
Z—Corporation.
Definition of Terms

June 29, 1998501998–26 I.R.B.
1
See footnote at end of list.
Numerical Finding List
1
Bulletins 1998–1 through 1998–25
Announcements:
98–1, 1998–2 I.R.B. 38
98–2, 1998–2 I.R.B.38
98–3, 1998–2 I.R.B.38
98–4, 1998–4 I.R.B.31
98–5, 1998–5 I.R.B. 25
98–6, 1998–5 I.R.B. 25
98–7, 1998–5 I.R.B. 26
98–8, 1998–6 I.R.B. 96
98–9, 1998–7 I.R.B. 35
98–10, 1998–7 I.R.B. 35
98–11, 1998–8 I.R.B. 42
98–12, 1998–8 I.R.B. 43
98–13, 1998–8 I.R.B. 43
98–14, 1998–8 I.R.B. 44
98–15, 1998–10 I.R.B.36
98–16, 1998–9 I.R.B. 17
98–17, 1998–9 I.R.B. 16
98–18, 1998–10 I.R.B.44
98–19, 1998–10 I.R.B.44
98–20, 1998–11 I.R.B. 25
98–21, 1998–11 I.R.B. 26
98–22, 1998–12 I.R.B. 33
98–23, 1998–12 I.R.B. 34
98–24, 1998–12 I.R.B. 35
98–25, 1998–13 I.R.B.43
98–26, 1998–14 I.R.B. 28
98–27, 1998–15 I.R.B. 30
98–28, 1998–15 I.R.B. 30
98–29, 1998–16 I.R.B. 48
98–30, 1998–17 I.R.B. 38
98–32, 1998–17 I.R.B. 39
98–33, 1998–17 I.R.B. 39
98–34, 1998–17 I.R.B. 39
98–35, 1998–17 I.R.B. 40
98–36, 1998–18 I.R.B. 18
98–37, 1998–19 I.R.B. 24
98–38, 1998–19 I.R.B. 26
98–39, 1998–20 I.R.B.24
98–40, 1998–20 I.R.B. 24
98–41, 1998–20 I.R.B. 25
98–42, 1998–21 I.R.B. 26
98–43, 1998–21 I.R.B. 26
98–44, 1998–22 I.R.B. 24
98–45, 1998–23 I.R.B. 18
98–46, 1998–25 I.R.B. 11
98–47, 1998–23 I.R.B. 5
98–48, 1998–24 I.R.B. 6
98–49, 1998–23 I.R.B. 19
98–50, 1998–23 I.R.B. 20
98–51, 1998–24 I.R.B.7
98–52, 1998–24 I.R.B. 37
98–53, 1998–24 I.R.B. 37
98–54, 1998–25 I.R.B.11
Notices:
98–1, 1998–3 I.R.B. 42
98–2, 1998–2 I.R.B. 22
98–3, 1998–3 I.R.B. 48
98–4, 1998–2 I.R.B. 25
98–5, 1998–3 I.B.R.49
98–6, 1998–3 I.R.B. 52
98–7, 1998–3 I.R.B. 54
98–8, 1998–4 I.R.B. 6
98–9, 1998–4 I.R.B. 8
98–10, 1998–6 I.R.B.9
98–11, 1998–6 I.R.B. 18
98–12, 1998–5 I.R.B.12
Notices—Continued
98–13, 1998–6 I.R.B.19
98–14, 1998–8 I.R.B. 27
98–15, 1998–9 I.R.B. 8
98–16, 1998–15 I.R.B. 12
98–17, 1998–11 I.R.B. 6
98–18, 1998–12 I.R.B. 11
98–19, 1998–13 I.R.B.24
98–20, 1998–13 I.R.B.25
98–21, 1998–15 I.R.B. 14
98–22, 1998–17 I.R.B. 5
98–23, 1998–18 I.R.B. 9
98–24, 1998–17 I.R.B. 5
98–25, 1998–18 I.R.B. 11
98–26, 1998–18 I.R.B. 14
98–27, 1998–18 I.R.B. 14
98–28, 1998–19 I.R.B.7
98–29, 1998–22 I.R.B.8
98–30, 1998–22 I.R.B. 9
98–31, 1998–22 I.R.B. 10
98–32, 1998–22 I.R.B. 23
98–33, 1998–25 I.R.B. 10
Proposed Regulations:
PS–158–86, 1998–11 I.R.B. 13
REG–100841–97, 1998–8 I.R.B. 30
REG–102144–98, 1998–15 I.R.B.25
REG–102894–97, 1998–3 I.R.B. 59
REG–104062–97, 1998–10 I.R.B. 34
REG–104537–97, 1998–16 I.R.B. 21
REG–104691–97, 1998–11 I.R.B. 13
REG–105163–97, 1998–8 I.R.B. 31
REG–109333–97, 1998–9 I.R.B. 9
REG–109704–97, 1998–3 I.R.B. 60
REG–110965–97, 1998–13 I.R.B. 42
REG–115795–97, 1998–8 I.R.B.33
REG–119449–97, 1998–10 I.R.B. 35
REG–120200–97, 1998–12 I.R.B. 32
REG–120882–97, 1998–14 I.R.B. 25
REG–121268–97, 1998–20 I.R.B. 12
REG–121755–97, 1998–9 I.R.B. 13
REG–208299–90, 1998–16 I.R.B. 26
REG–209276–87, 1998–11 I.R.B. 18
REG–209322–82, 1998–15 I.R.B. 26
REG–209373–81, 1998–14 I.R.B. 26
REG–209463–82, 1998–4 I.R.B. 27
REG–209476–82, 1998–8 I.R.B. 36
REG–209484–87, 1998–8 I.R.B.40
REG–209485–86, 1998–11 I.R.B. 21
REG–209682–94, 1998–17 I.R.B. 20
REG–209807–95, 1998–8 I.R.B. 40
REG–243025–96, 1998–18 I.R.B. 18
REG–251502–96, 1998–9 I.R.B. 14
REG–251698–96, 1998–20 I.R.B. 14
Revenue Procedures:
98–1, 1998–1 I.R.B. 7
98–2, 1998–1 I.R.B. 74
98–3, 1998–1 I.R.B. 100
98–4, 1998–1 I.R.B. 113
98–5, 1998–1 I.R.B. 155
98–6, 1998–1 I.R.B. 183
98–7, 1998–1 I.R.B. 222
98–8, 1998–1 I.R.B. 225
98–9, 1998–3 I.R.B. 56
98–10, 1998–2 I.R.B. 35
98–11, 1998–4 I.R.B.9
98–12, 1998–4 I.R.B. 18
98–13, 1998–4 I.R.B. 21
98–14, 1998–4 I.R.B. 22
98–15, 1998–4 I.R.B. 25
Revenue Procedures—Continued
98–16, 1998–5 I.R.B. 19
98–17, 1998–5 I.R.B. 21
98–18, 1998–6 I.R.B. 20
98–19, 1998–7 I.R.B. 30
98–20, 1998–7 I.R.B. 32
98–21, 1998–8 I.R.B. 27
98–22, 1998–12 I.R.B. 11
98–23, 1998–10 I.R.B. 30
98–24, 1998–10 I.R.B. 31
98–25, 1998–11 I.R.B. 7
98–26, 1998–13 I.R.B.26
98–27, 1998–15 I.R.B.15
98–28, 1998–15 I.R.B.14
98–29, 1998–15 I.R.B. 22
98–30, 1998–17 I.R.B. 6
98–31, 1998–23 I.R.B. 9
98–32, 1998–17 I.R.B. 11
98–33, 1998–19 I.R.B. 7
98–34, 1998–18 I.R.B. 15
98–35, 1998–21 I.R.B. 6
98–36, 1998–23 I.R.B. 10
Revenue Rulings:
98–1, 1998–2 I.R.B. 5
98–2, 1998–2 I.R.B. 15
98–3, 1998–2 I.R.B. 4
98–4, 1998–2 I.R.B. 18
98–5, 1998–2 I.R.B. 20
98–6, 1998–4 I.R.B. 4
98–7, 1998–6 I.R.B.6
98–8, 1998–7 I.R.B. 24
98–9, 1998–6 I.R.B. 5
98–10, 1998–10 I.R.B. 11
98–11, 1998–10 I.R.B. 13
98–12, 1998–10 I.R.B. 5
98–13, 1998–11 I.R.B. 4
98–14, 1998–11 I.R.B. 4
98–15, 1998–12 I.R.B. 6
98–16, 1998–13 I.R.B. 18
98–17, 1998–13 I.R.B. 21
98–18, 1998–14 I.R.B. 22
98–19, 1998–15 I.R.B. 5
98–20, 1998–15 I.R.B. 8
98–21, 1998–18 I.R.B. 7
98–22, 1998–19 I.R.B.5
98–23, 1998–18 I.R.B. 5
98–24, 1998–19 I.R.B. 6
98–25, 1998–19 I.R.B.4
98–26, 1998–21 I.R.B. 4
98–27, 1998–22 I.R.B. 4
98–28, 1998–22 I.R.B. 5
98–29, 1998–24 I.R.B.4
98–30, 1998–25 I.R.B.8
98–31, 1998–25 I.R.B. 4
98–32, 1998–25 I.R.B. 4
Treasury Decisions:
8740, 1998–3 I.R.B. 4
8741, 1998–3 I.R.B. 6
8742, 1998–5 I.R.B.4
8743, 1998–7 I.R.B. 26
8744, 1998–7 I.R.B. 20
8745, 1998–7 I.R.B. 15
8746, 1998–7 I.R.B. 4
8747, 1998–7 I.R.B. 18
8748, 1998–8 I.R.B. 24
8749, 1998–7 I.R.B. 16
8750, 1998–8 I.R.B. 4
8751, 1998–10 I.R.B. 23
8752, 1998–9 I.R.B. 4

1998–26 I.R.B.51June 29, 1998
Numerical Finding List—Continued
Bulletins 1998–1 through 1998–25
Treasury Decisions—Continued
8753, 1998–9 I.R.B. 6
8754, 1998–10 I.R.B. 15
8755, 1998–10 I.R.B. 21
8756, 1998–12 I.R.B.4
8757, 1998–13 I.R.B.4
8758, 1998–13 I.R.B. 15
8759, 1998–13 I.R.B. 19
8760, 1998–14 I.R.B. 4
8761, 1998–14 I.R.B. 13
8762, 1998–14 I.R.B. 15
8763, 1998–15 I.R.B. 5
8764, 1998–15 I.R.B. 9
8765, 1998–16 I.R.B. 11
8766, 1998–16 I.R.B. 17
8767, 1998–16 I.R.B. 4
8768, 1998–20 I.R.B.4
1
A cumulative list of all revenue rulings, revenue
procedures, Treasury decisions, etc., published in
Internal Revenue Bulletins 1997–27 through
1997–52 will be found in Internal Revenue Bulletin
1998–1, dated January 5, 1998.

June 29, 1998521998–26 I.R.B.
Finding List of Current Action on
Previously Published Items
1
Bulletins 1998–1 through 1998–25
Revenue Procedures:
91–59
Updated and superseded by
98–25, 1998–11 I.R.B. 7
94–16
Modified and superseded by
98–22, 1998–12 I.R.B. 11
93–62
Modified and superseded by
98–22, 1998–12 I.R.B. 11
95–35
95–35A
Superseded by
98–19, 1998–7 I.R.B. 30
96–29
Modified and superseded by
98–22, 1998–12 I.R.B. 11
97–1
Superseded by
98–1, 1998–1 I.R.B. 7
97–2
Superseded by
98–2, 1998–1 I.R.B. 74
97–3
Superseded by
98–3, 1998–1 I.R.B. 100
97–4
Superseded by
98–4, 1998–1 I.R.B. 113
97–5
Superseded by
98–5, 1998–1 I.R.B. 155
97–6
Superseded by
98–6, 1998–1 I.R.B. 183
97–7
Superseded by
98–7, 1998–1 I.R.B. 222
97–8
Superseded by
98–8, 1998–1 I.R.B. 225
97–21
Superseded by
98–2, 1998–1 I.R.B. 74
97–24
97–24A
Superseded by
98–33, 1998–19 I.R.B. 7
97–26
Obsoleted by
98–28, 1998–15 I.R.B. 14
97–28
Superseded by
98–36, 1998–23 I.R.B. 10
97–34
Superseded by
98–35, 1998–21 I.R.B. 6
Revenue Procedures—Continued
97–53
Superseded by
98–3, 1998–1 I.R.B. 100
Revenue Rulings:
68–352
Obsoleted by
98–24, 1998–19 I.R.B. 6
70–225
Modified by
98–27, 1998–22 I.R.B. 4
73–198
Modified by
98–24, 1998–19 I.R.B. 6
75–17
Supplemented and superseded by
98–5, 1998–2 I.R.B. 20
75–406
Obsoleted by
98–27, 1998–22 I.R.B. 4
92–19
Supplemented in part by
98–2, 1998–2 I.R.B. 15
96–30
Obsoleted by
98–27, 1998–22 I.R.B. 4
1
A cumulative finding list for previously published
items mentioned in Internal Revenue Bulletins
1997–27 through 1997–52 will be found in Internal
Revenue Bulletin 1998–1, dated January 5, 1998.

1998–26 I.R.B.53June 29, 1998
Notes

June 29, 1998541998–26 I.R.B.
Notes

1998–26 I.R.B.55June 29, 1998

June 29, 1998561998–26 I.R.B.
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