Internal Revenue Bulletin 2000-9 (PDF rendition): IRS Revenue Procedures

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

INCOME TAX
Rev. Rul. 2000–7, page 712.
Removal costs, capital expenditures.This ruling holds
that if the retirement and removal of a depreciable asset oc-
curs in connection with the installation or production of a re-
placement asset, the costs incurred in removing the retired
asset are not required to be capitalized under section 263
or 263A of the Code as part of the cost of the replacement
asset. Rev. Proc. 99–49 modified and amplified.
EMPLOYEE PLANS
T.D. 8873, page 713.
Final regulations under sections 402(f), 411(a)(11), and
3405(e) of the Code provide applicable standards for trans-
mitting certain notices and consents through electronic
media and modify the timing requirements for providing cer-
tain distribution-related notices.
Notice 2000–2, page 727.
Weighted average interest rate update.Guidelines are set
forth for determining the weighted average interest rate for
February 2000 and the resulting permissible range of interest
rates used to calculate current liability for purposes of the full
funding limitation under section 412(c)(7) of the Code.
EMPLOYMENT TAX
Page 721.
Railroad retirement; rate determination; quarterly.The
Railroad Retirement Board has determined that the rate of
tax imposed by section 3221 of the Code shall be 26 1/2
cents for the quarter beginning January 1, 2000.
ADMINISTRATIVE
Rev. Proc. 2000–18, page 722.
Automobile owners and lessees.This procedure provides
owners and lessees of passenger automobiles (including
electric automobiles) with tables detailing the limitations on
depreciation deductions for automobiles first placed in ser-
vice during calendar year 2000 and the amounts to be in-
cluded in income for automobiles first leased during calen-
dar year 2000. In addition, this revenue procedure provides
the maximum allowable value of employer-provided automo-
biles first made available to employees for personal use in
calendar year 2000 for which the vehicle cents-per-mile valu-
ation rule provided under section 1.61–21(e) of the Income
Tax Regulations may be applicable.
Internal Revenue
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Bulletin No. 2000–9
February 28, 2000
HIGHLIGHTS
OF THIS ISSUE
These synopses are intended only as aids to the reader in
identifying the subject matter covered. They may not be
relied upon as authoritative interpretations.
Department of the Treasury
Internal Revenue Service
Actions Relating to Court Decisions is on the page following the Introduction.
Finding Lists begin on page ii.
(Continued on next page)

February 28, 20002000–9 I.R.B.
ADMINISTRATIVE—Continued
Notice 2000–12, page 727.
Pilot pre-filing agreement program.This notice announces
a pilot program for Pre-Filing Agreements (PFAs) under which
large business taxpayers may request examination and resolu-
tion of specific issues relating to tax returns they expect to file
between September and December 2000.
Notice 2000–13, page 732.
Low-income housing tax credit.Resident population fig-
ures for the states, Puerto Rico, and the insular areas (Amer-
ican Samoa, Guam, Northern Mariana Islands, and the U.S.
Virgin Islands) for determining the 2000 calendar year (1)
state housing credit ceiling under section 42(h) of the Code,
and (2) private activity bond volume cap under section 146,
are reproduced.
Announcement 2000–9, page 733.
This document contains a correction to Notice 2000–4
(2000–3 I.R.B. 313) in which an erroneous address was
given for comments to be submitted electronically.
Announcement 2000–10, page 733.
This announcement contains a change to the date and time
of a public hearing relating to proposed regulations
(REG–116733–98, 1999–36 I.R.B. 392) under section
355(e) of the Code. The original public hearing on January
26, 2000, has been rescheduled for March 2, 2000.

2000–9 I.R.B.February 28, 2000
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
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basis. Bulletin contents are consolidated semiannually into
Cumulative Bulletins, which are sold on a single-copy basis.
It is the policy of the Service to publish in the Bulletin all sub-
stantive rulings necessary to promote a uniform application
of the tax laws, including all rulings that supersede, revoke,
modify, or amend any of those previously published in the
Bulletin. All published rulings apply retroactively unless other-
wise indicated. Procedures relating solely to matters of in-
ternal management are not published; however, statements
of internal practices and procedures that affect the rights
and duties of taxpayers are published.
Revenue rulings represent the conclusions of the Service on
the application of the law to the pivotal facts stated in the
revenue ruling. In those based on positions taken in rulings
to taxpayers or technical advice to Service field offices,
identifying details and information of a confidential nature
are deleted to prevent unwarranted invasions of privacy and
to comply with statutory requirements.
Rulings and procedures reported in the Bulletin do not have
the force and effect of Treasury Department Regulations,
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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
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Part IV.—Items of General Interest.
This part includes notices of proposed rulemakings, disbar-
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annual period, respectively.
The IRS Mission
Provide America’s taxpayers top quality service by help-
ing them understand and meet their tax responsibilities
and by applying the tax law with integrity and fairness to
all.
Introduction
The contents of this publication are not copyrighted and may be reprinted freely. A citation of the Internal Revenue Bulletin as the source would be appropriate.
For sale by the Superintendent of Documents, U.S. Government Printing Office, Washington, DC 20402.

February 28, 20002000–9 I.R.B.
It is the policy of the Internal Revenue
Service to announce at an early date
whether it will follow the holdings in cer-
tain cases. An Action on Decision is the
document making such an announcement.
An Action on Decision will be issued at
the discretion of the Service only on un-
appealed issues decided adverse to the
government. Generally, an Action on De-
cision is issued where its guidance would
be helpful to Service personnel working
with the same or similar issues. Unlike a
Treasury Regulation or a Revenue Ruling,
an Action on Decision is not an affirma-
tive statement of Service position. It is not
intended to serve as public guidance and
may not be cited as precedent.
Actions on Decisions shall be relied
upon within the Service only as conclu-
sions applying the law to the facts in the
particular case at the time the Action on
Decision was issued. Caution should be
exercised in extending the recommenda-
tion of the Action on Decision to similar
cases where the facts are different. More-
over, the recommendation in the Action
on Decision may be superseded by new
legislation, regulations, rulings, cases, or
Actions on Decisions.
Prior to 1991, the Service published ac-
quiescence or nonacquiescence only in
certain regular Tax Court opinions. The
Service has expanded its acquiescence
program to include other civil tax cases
where guidance is determined to be help-
ful. Accordingly, the Service now may ac-
quiesce or nonacquiesce in the holdings
of memorandum Tax Court opinions, as
well as those of the United States District
Courts, Claims Court, and Circuit Courts
of Appeal. Regardless of the court decid-
ing the case, the recommendation of any
Action on Decision will be published in
the Internal Revenue Bulletin.
The recommendation in every Action
on Decision will be summarized as ac-
quiescence, acquiescence in result only,
or nonacquiescence. Both “acquies-
cence” and “acquiescence in result only”
mean that the Service accepts the holding
of the court in a case and that the Service
will follow it in disposing of cases with
the same controlling facts. However, “ac-
quiescence” indicates neither approval
nor disapproval of the reasons assigned
by the court for its conclusions; whereas,
“acquiescence in result only” indicates
disagreement or concern with some or all
of those reasons. “Nonacquiescence” sig-
nifies that, although no further review
was sought, the Service does not agree
with the holding of the court and, gener-
ally, will not follow the decision in dis-
posing of cases involving other taxpay-
ers. In reference to an opinion of a circuit
court of appeals, a “nonacquiescence” in-
dicates that the Service will not follow
the holding on a nationwide basis. How-
ever, the Service will recognize the
precedential impact of the opinion on
cases arising within the venue of the de-
ciding circuit.
The Actions on Decisions published in
the weekly Internal Revenue Bulletin are
consolidated semiannually and appear in
the first Bulletin for July and the Cumu-
lative Bulletin for the first half of the
year. A semiannual consolidation also ap-
pears in the first Bulletin for the follow-
ing January and in the Cumulative Bul-
letin for the last half of the year.
The Commissioner NONACQUI-
ESCES in the following decision:
Simpson v. United States,
1
183 F.3d 812 (8
th
Cir. 1999), rev’g
17 F. Supp. 2d 972 (W.D. Mo. 1998)
Actions Relating to Court Decisions
1
Nonacquiescence relating to whether a transfer of property to decedent’s grandchildren, pursuant to decedent’s exercise of a general testamentary power of appoint-
ment, was exempt from the generation-skipping transfer (GST) tax under the effective date provisions in the Tax Reform Act of 1986 (TRA 86).

February 28, 20007122000–9 I.R.B.
Section 61.—Gross Income
Defined
26 CFR 1.61–21: Taxation of fringe benefits.
This procedure provides the maximum value of em-
ployer-provided automobiles first made available to
employees for personal use in calendar year 2000 for
which the vehicle cents-per-mile valuation rule pro-
vided under §1.61–21(e) of the Income Tax Regulations
may be applicable. See Rev. Proc. 2000–18, page 722.
Section 162.—Trade or Business
Expenses
26 CFR 1.162–1: Business expenses.
If the retirement and removal of a depreciable asset
occurs in connection with the installation or production
of a replacement asset, are the costs incurred in remov-
ing the retired asset required to be capitalized under §
263(a) or 263A as part of the cost of the replacement
asset? See Rev. Rul. 2000–7, page 712.
Section 165.—Losses
26 CFR 1.165–3: Demolition of buildings.
If the retirement and removal of a depreciable
asset occurs in connection with the installation or
production of a replacement asset, are the costs in-
curred in removing the retired asset required to be
capitalized under § 263(a) or 263A as part of the
cost of the replacement asset? See Rev. Rul. 2000–7,
page 712.
Section 167.—Depreciation
26 CFR 1.167(a)–8: Retirements.
If the retirement and removal of a depreciable
asset occurs in connection with the installation or
production of a replacement asset, are the costs in-
curred in removing the retired asset required to be
capitalized under § 263(a) or 263A as part of the
cost of the replacement asset? See Rev. Rul. 2000–7,
page 712.
Section 263.—Capital
Expenditures
26 CFR 1.263(a)–1: Capital expenditures; in
general. (Also §§ 162, 165, 167, 263A; 1.165–3,
1.167(a)–8, 1.167(a)–11, 1.263A–1)
Removal costs, capital expenditures.
This ruling holds that if the retirement and
removal of a depreciable asset occurs in
connection with the installation or pro-
duction of a replacement asset, the costs
incurred in removing the retired asset are
not required to be capitalized under sec-
tion 263 or 263A of the Code as part of
the cost of the replacement asset.
Rev. Rul. 2000–7
ISSUE
If the retirement and removal of a de-
preciable asset occurs in connection with
the installation or production of a replace-
ment asset, are the costs incurred in re-
moving the retired asset required to be
capitalized under section 263(a) or 263A
as part of the cost of the replacement
asset?
FACTS
The assets of X, a telephone company,
include telephone poles Aand B. X
placed Pole Ain service in 1979 on land it
owned. X placed Pole Bin service in
1982 on land owned by Yunder the terms
of an easement permitting Xto have one
pole on Y’s land. In 2000, Xundertakes a
project to replace telephone poles in the
service area in which Pole Ais situated.
As part of that project, Xincurs costs in
2000 in removing and discarding Pole A
and installing a new telephone pole, Pole
C, in the same location. Xalso undertakes
a second project to replace telephone
poles in the service area in which Pole B
is situated. Xinstalls a new telephone
pole, Pole D, onY’s land, but not in the
same location as Pole B. As part of this
second project and to comply with the
easement, Xincurs costs in 2000 in re-
moving and discarding Pole B.
LAW AND ANALYSIS
Section 162 of the Internal Revenue
Code and § 1.162–1 of the Income Tax
Regulations generally allow a deduction
for all the ordinary and necessary ex-
penses paid or incurred during the taxable
year in carrying on any trade or business.
Section 165 allows as a deduction any
loss sustained during the taxable year and
not compensated for by insurance or oth-
erwise. For the allowance under § 165(a)
of losses arising from the permanent with-
drawal of depreciable property from use
in a trade or business or in the production
of income, § 1.165–2(c) cross references
§ 1.167(a)–8(a), which permits, in part, a
loss from physical abandonment of retired
property.
Under §§ 263(a) and 1.263(a)–1(a), no
deduction is allowed for capital expendi-
tures, such as amounts paid for new build-
ings or for permanent improvements or
betterments made to increase the value of
any property. Section 1.263(a)–2(a) pro-
vides that capital expenditures include the
costs of acquisition, construction, or erec-
tion of buildings, machinery and equip-
ment, furniture and fixtures, and similar
property having a useful life substantially
beyond the taxable year.
Section 263A generally requires tax-
payers that are producing real or tangible
personal property to capitalize direct ma-
terial costs, direct labor costs, and indirect
costs that are properly allocable to the
produced property. Section 263A(g)(1)
provides that, for purposes of § 263A, the
term “produce” includes construct, build,
install, manufacture, develop, or improve.
Under § 1.263A–1(e)(3)(i), indirect costs
are allocable to produced property under
§ 263A when the costs directly benefit or
are incurred by reason of the performance
of production activities.
The costs of removing an asset have
been historically allocable to the removed
asset and, thus, generally deductible when
the asset is retired and the costs are in-
curred. A deduction generally is allowed
whether a taxpayer accounts for the re-
tired asset in a single asset account or in a
multiple asset account (e.g., a general
asset account or a mass asset account).
See§ 1.165–3(b); § 1.167(a)–1(c); §
1.167(a)– 11(d)(3)(x); Rev. Rul. 74–455,
1974–2 C.B. 63; Rev. Rul. 75–150,
1975–1 C.B. 73. But see§ 280B, requir-
ing that the costs of demolishing build-
ings be added to the basis of the land, and
§ 1.165–3(a), requiring capitalization of
demolition costs when the taxpayer ac-
quires an asset with the intent to demolish
it. See, e.g., Wood County Telephone Co.
v. Commissioner, 51 T.C. 72 (1968); Rev.
Rul. 69–62, 1969–1 C.B. 58.
The removal costs of Poles Aand B are
not required to be capitalized under
§ 263(a). In both situations the removal
costs are properly allocable to the retired
Part I. Rulings and Decisions Under the Internal Revenue Code of 1986

2000–9 I.R.B.713February 28, 2000
poles, and thus do not relate to assets hav-
ing a useful life in the taxpayer’s business
extending substantially beyond the taxable
year in which the removal costs are in-
curred. The fact that Poles Aand Bare re-
tired as part of a replacement project does
not mean that the removal costs are re-
quired to be capitalized under § 263(a).
Furthermore, the removal costs are not re-
quired to be capitalized under § 263A be-
cause the costs are incurred for the purpose
of retiring Poles Aand Band not by reason
of the installation of Poles C and D.The
analysis in this ruling does not apply to the
removal of a component of a depreciable
asset, the costs of which are either de-
ductible or capitalizable based on whether
replacement of the component constitutes a
repair or an improvement. See§1.162–4
and § 1.263(a)–1(b).
HOLDING
If the retirement and removal of a de-
preciable asset occurs in connection with
the installation or production of a replace-
ment asset, the costs incurred in removing
the retired asset are not required to be
capitalized under § 263(a) or 263A as part
of the cost of the replacement asset.
APPLICATION
Any change in a taxpayer’s method of ac-
counting to conform with this revenue ruling
is a change in method of accounting to
which the provisions of §§ 446 and 481 and
the regulations thereunder apply. Except for
assets for which depreciation is determined
in accordance with § 1.167(a)–11 (ADR),
the taxpayer’s new method of treating re-
moval costs for assets accounted for in a
multiple asset account must be consistent
with the taxpayer’s method of treating sal-
vage proceeds. SeeRev. Rul. 74– 455. (See
sections 2.01 and 2.02 of the Appendix of
Rev. Proc. 99–49, 1999–52 I.R.B. 725, for
changing a taxpayer’s present method of
treating salvage proceeds.) A taxpayer want-
ing to change its method of accounting to
conform with the holding in this revenue rul-
ing must follow the automatic change in ac-
counting method provisions of Rev. Proc.
99–49, except that the scope limitations in
section 4.02 of Rev. Proc. 99–49 do not
apply. However, if the taxpayer is under ex-
amination, before an appeals office, or be-
fore a federal court with respect to any in-
come tax issue, the taxpayer must provide a
copy of the Form 3115, Application for
Change in Accounting Method, to the exam-
ining agent(s), appeals officer, or counsel for
the government, as appropriate, at the same
time that it files the copy of the Form 3115
with the national office. The Form 3115
must contain the name(s) and telephone
number(s) of the examining agent(s), ap-
peals officer, or counsel for the government,
as appropriate. In addition, if the asset is
public utility property within the meaning of
§ 168(i)(10) or former § 167(l)(3)(A), the
taxpayer must comply with the terms and
conditions in section 2.01(3)(b)(vi) of the
Appendix of Rev. Proc. 99–49.
EFFECT ON OTHER DOCUMENTS
Rev. Proc. 99–49 is modified and am-
plified to include this change in account-
ing method in the APPENDIX.
DRAFTING INFORMATION
The principal author of this revenue
ruling is Beverly Katz of the Office of As-
sistant Chief Counsel (Income Tax and
Accounting). For further information re-
garding this revenue ruling contact Ms.
Katz on (202) 622-4950 (not a toll-free
call).
Section 263A.—Capitalization
and Inclusion in Inventory Costs
of Certain Expenses
26 CFR 1.263A–1: Uniform capitalization of costs.
If the retirement and removal of a depreciable asset
occurs in connection with the installation or produc-
tion of a replacement asset, are the costs incurred in re-
moving the retired asset required to be capitalized
under § 263(a) or 263A as part of the cost of the re-
placement asset? See Rev. Rul. 2000–7, page 712.
Section 280F.—Limitation on
Depreciation for Luxury
Automobiles; Limitation where
Certain Property Used for
Personal Purposes
26 CFR 1.280F–7: Property leased after December
31, 1986.
This procedure provides owners and lessees of pas-
senger automobiles (including electric automobiles)
with tables detailing the limitations on depreciation
deductions for automobiles first placed in service dur-
ing calendar year 2000 and the amounts to be included
in income for automobiles first leased during calendar
year 2000. See Rev. Proc. 2000–18, page 722.
Section 411.—Minimum Vesting
Standards
26 CFR 1.411(a)–11: Restriction and valuation of
distributions.
T.D. 8873
DEPARTMENT OF THE TREASURY
Internal Revenue Service
26 CFR Parts 1, 35, and 602
New Technologies in Retirement
Plans
AGENCY: Internal Revenue Service
(IRS), Treasury.
ACTION: Final regulations.
SUMMARY: This document contains
amendments to the regulations governing
certain notices and consents required in
connection with distributions from retire-
ment plans. Specifically, these regula-
tions set forth applicable standards for the
transmission of those notices and con-
sents through electronic media and mod-
ify the timing requirements for providing
certain distribution-related notices. The
regulations provide guidance to plan
sponsors and administrators by interpret-
ing the notice and consent requirements in
the context of the electronic administra-
tion of retirement plans. The regulations
affect retirement plan sponsors, adminis-
trators, and participants.
DATES: Effective Date: These regula-
tions are effective January 1, 2001.
Applicability Date: These regulations
apply to plan years beginning on or after
January 1, 2001.
FOR FURTHER INFORMATION CON-
TACT: Catherine Livingston Fernandez,
(202) 622-6030 (not a toll-free number).
SUPPLEMENTARY INFORMATION:
Paperwork Reduction Act
The collection of information con-
tained in these final regulations has been
reviewed and approved by the Office of
Management and Budget in accordance
with the Paperwork Reduction Act (44
U.S.C. 3507) under control number 1545-
1632. Responses to this collection of in-
formation are mandatory.
An agency may not conduct or sponsor,
and a person is not required to respond to,

February 28, 20007142000–9 I.R.B.
a collection of information unless the col-
lection of information displays a valid
control number.
The estimated annual burden per respon-
dent and/or recordkeeper is 76 minutes.
Comments concerning the accuracy of
this burden estimate and suggestions for
reducing this burden should be sent to the
Internal Revenue Service, Attn: IRS Re-
ports Clearance Officer, OP:FS:FP, Wash-
ington, DC 20224, and to the Office of
Management and Budget, Attn: Desk Of-
ficer for the Department of the Treasury,
Office of Information and Regulatory Af-
fairs, Washington, DC 20503.
Books or records relating to this collec-
tion of information must be retained as
long as their contents may become mater-
ial in the administration of any internal
revenue law. Generally, tax returns and
tax return information are confidential, as
required by 26 U.S.C. 6103.
Background
This document contains amendments to
the Income Tax Regulations (26 CFR parts
1 and 35) under sections 402(f), 411(a)(11)
and 3405(e)(10)(B). The regulations under
section 3405(e)(10)(B) (new Q/A d–35 and
d–36 of section 35.3405–1), like the regula-
tions under sections 402(f) and 411(a)(11)
are final regulations. These regulations fi-
nalize proposed regulations that were pub-
lished as a notice of proposed rulemaking
(REG–118662–98, 1999–13 I.R.B. 13) in
the Federal Register(63 FR 70071) on
December 18, 1998. A public hearing was
held on the proposed regulations on April
15, 1999.
In addition to the proposed regulations,
the IRS and Treasury issued Notice 99–1
(1999–2 I.R.B. 8), and Announcement
99–6 (1999–4 I.R.B. 24), concerning the
use of electronic media under retirement
plans. Notice 99–1 confirms that the “pa-
perless” administration of participant en-
rollments, contribution elections, invest-
ment elections, beneficiary designations
(other than designations requiring spousal
consent), direct rollover elections, and
certain other transactions do not cause a
qualified plan to fail to satisfy the require-
ments of section 401(a) (or the require-
ments for a qualified cash or deferred
arrangement under section 401(k)). An-
nouncement 99–6 authorizes the elec-
tronic transmission of Form W-4P.
The proposed regulations, Notice 99–1,
and Announcement 99–6 were issued pur-
suant to section 1510 of the Taxpayer Relief
Act of 1997. That section provides for the
Secretary of the Treasury to issue guidance
designed to interpret the notice, election,
consent, disclosure, time, and related
recordkeeping requirements under the Code
and the Employee Retirement Income Secu-
rity Act of 1974 (ERISA) regarding the use
of new technologies by sponsors and ad-
ministrators of retirement plans and to clar-
ify the extent to which writing requirements
under the Code relating to retirement plans
permit paperless transactions. Section 1510
provides that the guidance must protect par-
ticipant and beneficiary rights. Any final
regulations applicable to this guidance may
not be effective until the first plan year be-
ginning at least six months after issuance as
final regulations.
Explanation of Provisions
General
Commentators generally praised the ap-
proach taken in the proposed regulations of
providing broad, flexible standards for the
transmission of certain notices and consent
required for distributions through electronic
media. Commentators stated that the
guidelines set forth in the proposed regula-
tions facilitate the expanded use of new
technologies and recognize the likelihood
of future technological advances in plan ad-
ministration. Accordingly, the final regula-
tions retain this approach and:
• Permit electronic delivery of the notice
of distribution options and the right to
defer distribution under section
411(a)(11), the rollover notice under
section 402(f), and the withholding no-
tice under section 3405(e)(10)(B);
• Permit electronic transmission of par-
ticipant consent to a distribution under
section 411(a)(11); and
• Permit a plan to provide the section
411(a)(11) and section 402(f) notices
more than 90 days before a distribution,
if the plan provides a summary of the
notices within 90 days before the distri-
bution.
Notices Under Sections 402(f),
411(a)(11), and 3405(e)(10)(B)
1. Use of electronic media for delivery of
notices
The proposed regulations provide that,
in general, a plan may furnish a notice re-
quired under section 402(f), 411(a)(11),
or 3405(e)(10)(B) either on a written
paper document or through an electronic
medium reasonably accessible to the par-
ticipant to whom the notice is given. The
proposed regulations require that any
electronic notice be provided under a sys-
tem reasonably designed to give the no-
tice in a manner no less understandable to
the participant than a written paper docu-
ment and that the participant be advised
of the right to request and to receive a
copy of the notice on a written paper doc-
ument without charge. The final regula-
tions adopt these rules without change.
One commentator noted that the pro-
posed regulations do not define the term
reasonably accessibleand suggested that
the final regulations require that partici-
pants have effective access at their place
of work to any electronic medium used to
deliver the notices under sections 402(f),
411(a)(11), and 3405(e)(10)(B). The IRS
and Treasury, after further consideration,
believe that the reasonably accessible
standard protects the interests of plan par-
ticipants and, therefore, have retained the
proposed terminology.
The same commentator raised more
general concerns with the use of elec-
tronic media to transmit notices. This
commentator argued that an electronic
notice should be “actually received (not
just sent or available) and read by the par-
ticipant, be permanently accessible, and
easily converted to a printed document,
by using an available printer and/or
through a request for a paper writing.” In
response to these concerns, the IRS and
Treasury reiterate the view, expressed in
the preamble to the proposed regulations,
that the legal standards for the delivery of
distribution-related notices under sections
402(f), 411(a)(11), and 3405(e)(10)(B)
should be the same regardless of the
medium of delivery. Additionally, the
IRS and Treasury note that many of the
concerns raised by this commentator
about electronic media are adequately ad-
dressed by the requirement in the regula-
tions that participants always have the
right to request and to receive a written
paper notice without charge.
Several commentators objected to the re-
quirement that participants be able to re-
ceive the notice on a written paper docu-
ment upon request. These commentators
argued that simply making written paper

2000–9 I.R.B.715February 28, 2000
notices available through an electronic
medium (such as a printing option on an e-
mail system or a plan web site) protects the
interests of participants in having access to
written paper notices without placing the
burden of providing written paper notices
on plan sponsors and administrators. How-
ever, the IRS and Treasury believe that the
right to request and to receive a written
paper notice is an important fail-safe for pa-
perless plan administration. The require-
ment ensures that no participant is denied
ready access to a usable copy of a required
distribution notice, and it limits the need for
the IRS and Treasury to regulate the man-
ner in which written paper notices are made
available through electronic media. The
IRS and Treasury believe that the burden
for plan sponsors and administrators to
maintain a process that will generate writ-
ten paper notices upon request is out-
weighed by the important safeguards pro-
vided by the requirement. In addition, as
indicated in the preamble to the proposed
regulations, the written paper notice pro-
vided on request need not be identical to
the electronic notice. Therefore, the written
paper notice can be either a printed version
of the electronic notice or a separate notice
prepared for distribution on paper. In light
of these considerations, the requirement is
retained in the final regulations.
One commentator requested clarifica-
tion that the proposed regulations under
section 3405 would permit the electronic
delivery of the annual notice described in
section 3405(e)(10)(B)(i)(III) (which is
provided to recipients of periodic pay-
ments). The proposed regulations, as
written, apply to that annual notice; how-
ever, the final regulations make this point
expressly. One commentator asked that
the proposed regulations be amended to
provide for electronic withholding elec-
tions under section 3405 in addition to
electronic transmission of notices under
section 3405. It is unclear what, if any,
utility such a change in the regulations
would have in light of the ability to use
electronic media for transmission of Form
W-4P, as set out in Announcement 99–6.
Therefore, no change has been made to
the regulations on this point.
2. Flexibility for timing requirement in
providing notices
Commentators favored the provision in
the proposed regulations that provided
flexibility with respect to the 90-day pe-
riod under sections 402(f) and 411(a)(11)
by providing an alternative timing rule.
Under this alternative timing rule, a plan
may give the full section 402(f) and sec-
tion 411(a)(11) notices more than 90 days
before the distribution and provide the
participant a summary of the notice dur-
ing the 90/30-day period under those sec-
tions. The full notice is not required to be
provided on a regular periodic basis and
may be provided in connection with other
materials (for example, in the summary
plan description or in a brochure describ-
ing plan distribution features), but it must
be updated (and provided to the partici-
pant) as necessary to ensure accuracy as
of the time the summary is given. The
proposed regulations provide that the
summary notice must set out the principal
provisions of the full notice, must refer
the participant to the most recent occasion
on which the full notice was provided,
and must advise the participant of the
right to request and to receive a copy of
the full notice without charge.
Several commentators interpreted the
requirement in the proposed regulations
that the summary refer the participant to
the most recent occasion on which the full
notice was provided as requiring an indi-
cation of the precise date on which the
participant was given the full notice and
the precise location of the full notice if it
was provided in a document containing
other information (such as the summary
plan description). These commentators
argued that this information may vary on
a participant-by-participant basis and so
imposes a considerable administrative
burden on plan sponsors and administra-
tors.
1
The IRS and Treasury did not intend
for the proposed regulations to be con-
strued as requiring individualized infor-
mation about the full notice. Therefore,
the final regulations clarify, first, that the
summary must refer participants to the
most recent versionof the full notice.
The purpose of this rule is to minimize
confusion among participants if more
than one version of a full notice has been
provided in the past. In many of those
cases, this reference could reasonably be
made by calendar year (for example, by
referring to the 1999 version of the sec-
tion 402(f) notice). If more than one ver-
sion of a distribution notice was provided
in a single calendar year, more precise
reference should be made (for example,
by referring to the May 1999 version of
the section 402(f) notice). Reference to
the notice by month or year would not be
necessary if only one version of the notice
had been provided in the past. If the full
notice were constantly available (for ex-
ample, a notice that is available on a plan
web site and is kept up-to-date), it would
be adequate to state that fact.
Additionally, the regulations have been
modified to provide that, in the case of a
full notice provided in a document con-
taining other information, the summary
must identify that document and must
provide a reasonable indication of where
the notice may be found in the document.
This requirement could be satisfied
through a number of means, including
identification of page number, section
heading, an index reference, the title of
the notice, or any other reference that
would reasonably direct the participant to
the notice.
One commentator objected to the alter-
native timing rule set out in the proposed
regulations. This commentator argued
that distribution-related notices should be
tied to a specific event (such as a partici-
pant request for a distribution) and that “it
is inappropriate to provide a notice of the
notice when using electronic or other new
technologies when it is just as easy to pro-
vide the actual notice itself.” The IRS
and Treasury agree that the information
contained in the section 402(f) and sec-
tion 411(a)(11) notices should be pro-
vided to a participant in connection with
the participant’s contemplation of a distri-
bution, but the IRS and Treasury believe
that providing a summary of a previously
provided notice and informing the partici-
pant of the right to request and to receive
the full notice adequately protect the in-
terests of participants in this regard.
The preamble to the proposed regula-
tions includes an example of a summary
section 402(f) notice provided through an
automated telephone system. Many com-
mentators raised questions about this ex-
ample. Several commentators argued that
the sample summary is too long and com-
1
For example, many plan sponsors provide a copy
of the summary plan description to each employee
when the employee is first hired. If the full notice is
provided through the summary plan description, the
precise date on which the full notice was last pro-
vided could differ for each participant.

February 28, 20007162000–9 I.R.B.
plex to be of use in plan administration;
others argued that it does not include ref-
erence to every potentially applicable rule
concerning the taxation of plan distribu-
tions (for example, it does not refer to the
taxation of net unrealized appreciation on
the distribution of employer securities).
Commentators also inquired about the
legal status of the example because of its
placement in the preamble. The example
was intended merely to illustrate a sum-
mary notice that, in the view of the IRS
and Treasury, satisfies the requirements of
the proposed regulations. It was not in-
tended as a model summary or as the ex-
clusive form for such a summary. Al-
though the example is not restated in
these final regulations, the IRS and Trea-
sury are considering whether to issue ad-
ditional guidance providing additional ex-
amples of summary notices. In this
regard, the IRS and Treasury will solicit
comments from interested parties regard-
ing the development of those examples
and will invite interested parties to submit
draft summary notices to assist in the de-
velopment of that guidance.
Consent Under Section 411(a)(11)
Consistent with the proposed regula-
tions, the final regulations provide that, in
general, a plan may receive a participant’s
consent either on a written paper docu-
ment or through an electronic medium
reasonably accessible to the participant.
As in the case of participant notices, the
regulations generally do not categorize
particular electronic media as either per-
missible or impermissible for this purpose
and do not prescribe detailed, media-spe-
cific rules. The standards are intended to
parallel the key attributes of participant
consent provided on written paper docu-
ments without imposing more stringent
requirements on electronic consents. The
proposed regulations provide that partici-
pant consent transmitted through an elec-
tronic medium must be given under a sys-
tem that is reasonably designed to
preclude an individual other than the par-
ticipant from giving the consent and that
provides the participant a reasonable op-
portunity to review and to confirm, mod-
ify, or rescind the terms of the distribution
before the consent to the distribution be-
comes effective. Comments on this por-
tion of the proposed regulations were gen-
erally favorable, and no change has been
made in the final regulations.
One commentator, however, objected
outright to the use of electronic media for
the transmission of participant consent and
argued that, at a minimum, such consent
“should not be effective until after a written
confirmation is received and the participant
has a specified amount of time to revoke
it.” This commentator also argued that the
final regulations should prohibit the use of
automated telephone systems to provide
distribution-related notices and to receive
participant consent unless an automatic,
mandatory written confirmation of the par-
ticipant’s election of a distribution option is
required along with a seven-day right of re-
vocation. The IRS and Treasury concluded
that it is not advisable to impose new revo-
cation rules based on the medium through
which a participant consents to a distribu-
tion. Both the proposed regulations and the
final regulations require that the terms of
any consent made through an electronic
medium be confirmed to the participant.
Additionally, the IRS and Treasury do not
believe that a right of revocation for a de-
fined period after consent is given is more
necessary or appropriate in the case of con-
sent made through an electronic medium
than it is in the case of consent made
through a written paper document. More
generally, the IRS and Treasury do not be-
lieve that the use of electronic media is im-
proper or inappropriate for the transmission
of a participant’s consent under section
411(a)(11). If the requirements of the regu-
lations are satisfied, consent provided in
that manner should reflect the considered
wishes of the participant as reliably as a
consent provided through a written paper
document.
Changes to the Examples in the
Regulations
Several commentators expressed con-
cern about details in the examples illustrat-
ing the proposed regulations for distribu-
tion notices and consent. One of the
concerns involved the statement in the ex-
amples that a participant who wished to
change a PIN electronically would be un-
able to proceed with a distribution transac-
tion until the plan sent a confirmation of the
change to the participant. Commentators
stated that the electronic systems main-
tained by plan sponsors and administrators
use an array of security features to ensure
participant identity, some of which might
permit an electronic transaction to proceed
after a PIN change. Although the prohibi-
tion on proceeding with an electronic trans-
action after a PIN change was intended
only to illustrate a commonly used system
and not as a substantive requirement, the
final regulations omit the statement from
the examples for the sake of clarity. Of
course, the examples in the final regula-
tions presuppose that plan sponsors and ad-
ministrators maintain adequate measures to
ensure participant identity when a PIN is
changed.
Notice 99–1 and Announcement 99–6
Commentators expressed support for
Notice 99–1, which indicates that a quali-
fied plan will not fail to meet the require-
ments of section 401(a) (and that a quali-
fied cash-or-deferred arrangement will
not fail to meet the requirements of sec-
tion 401(k)) merely because it permits a
participant or beneficiary to use electronic
media to effect a transaction for which no
specific provision of the Code, the regula-
tions, or other guidance of general applic-
ability sets forth rules or standards regard-
ing the media through which it may be
conducted. Announcement 99–6 permits
the electronic transmission of Form W-4P.
Commentators asked for clarification
whether Form W-4P may be transmitted
through a telephone system. The underly-
ing standards for the electronic transmis-
sion of Form W-4P are intended to be the
same as those for the electronic transmis-
sion of Form W-4, as set out in
§31.3402(f)(5)–1(c). The preamble to the
proposed regulations for the electronic
transmission of Form W-4 indicates that
“[i]f an employer chooses to establish an
electronic system, the employer will be
free to determine the type of system (such
as telephone or computer) or systems
available to its employees.” (59 FR
18508 (Apr. 15, 1994)). Therefore, the
use of a telephone system for electronic
transmission of Form W-4P, if otherwise
consistent with Announcement 99–6 and
§31.3402(f)(5)–1(c), is permissible.
Commentators also asked the IRS and
Treasury to reconsider the requirement,
stated in Announcement 99–6, that the
electronic signature on Form W-4P be the
final entry in the submission of the form.
These commentators argue that this effec-
tively requires the participant in most
cases to enter a PIN at both the beginning

2000–9 I.R.B.717February 28, 2000
and the end of a transaction that involves
the use of an electronic Form W-4P. The
IRS and Treasury are considering this
issue and anticipate issuing additional
guidance on this question.
Scope of These Regulations
These regulations do not address the ap-
plication of Title I of ERISA (except for
section 203(e)) to the use of electronic
media for any plan communication or
transaction. Several commentators re-
quested that the regulations be expanded to
include matters not covered by the pro-
posed regulations. Most notably, commen-
tators asked that the IRS and Treasury pro-
vide guidance on the use of electronic
media for plan loans under section 72(p),
nondiscrimination safe-harbor notices
under sections 401(k)(12) and 401(m)(11),
notices under section 204(h) of ERISA, and
distribution notices, elections, and spousal
consents governed by sections 401(a)(11)
and section 417.
The IRS and Treasury are actively con-
sidering comments submitted on regula-
tions proposed under section 72(p) and
expect to issue additional guidance under
that section. It is anticipated that any
guidance on the use of electronic media in
connection with plan loans would be is-
sued in connection with that additional
guidance. As the IRS and Treasury have
noted in the past, notices under sections
401(k)(12) and 401(m)(11) and ERISA
section 204(h) present legal issues distinct
from those presented by notices under
sections 402(f), 411(a)(11), and
3405(e)(10)(B). Notice 2000–3 (2000–4
I.R.B. 413) provides that, pending further
guidance, notices under sections
401(k)(12) and 401(m)(11) may be issued
through electronic media if standards set
forth in Notice 2000–3 which are similar
to those applicable to notices under these
regulations, are satisfied. Because of the
unique considerations applicable to no-
tices under ERISA section 204(h), guid-
ance with respect to the use of electronic
media in connection with section 204(h)
notices is not being issued at this time.
Finally, regarding notices, elections,
and spousal consents governed by sec-
tions 401(a)(11) and section 417, the IRS
and Treasury note that the statutory re-
quirement that spousal consent be wit-
nessed either by a notary public or a plan
representative appears to presuppose that
a spouse be in the physical presence of the
notary public or the plan representative at
the time consent is given. This appears to
place significant limitations on the utility
of electronic media in effecting spousal
consent.
2
Thus, it is unclear what guid-
ance the IRS and Treasury could issue
that would meaningfully facilitate paper-
less distributions in the case of plans sub-
ject to sections 401(a)(11) and 417.
Reliance
Plan sponsors and administrators may
rely on these final regulations for guid-
ance for distributions made prior to the ef-
fective date.
Special Analyses
It has been determined that this Treasury
decision is not a significant regulatory ac-
tion as defined in Executive Order 12866.
Therefore, a regulatory impact analysis is
not required. It is hereby certified that
these regulations will not have a significant
economic impact on a substantial number
of small entities. This certification is based
on the fact that the regulations provide pa-
perless alternatives to notices that other-
wise must be sent as written paper docu-
ments. It is anticipated that most small
businesses affected by these regulations
will be sponsors of retirement plans. Since
these notices are provided only upon distri-
butions and since, in the case of a small
plan, there will be relatively few distribu-
tions per year, small plans that implement a
paperless system for delivering these no-
tices will likely contract for them as part of
a paperless system for distributions offered
by outside vendors. The paperless delivery
of the notices will not add more than a
minor increment to the cost of these distri-
bution systems or the plan sponsor will
continue to use a paper-based system. Ac-
cordingly, a Regulatory Flexibility Analy-
sis is not required. Pursuant to section
7805(f) of the Code, the notice of proposed
rulemaking preceding these regulations
was submitted to the Chief Counsel for
Advocacy of the Small Business Adminis-
tration for comment on its impact on small
business.
Drafting Information
The principal author of these regulations
is Catherine Livingston Fernandez, Office
of the Associate Chief Counsel (Employee
Benefits and Exempt Organizations), IRS.
However, personnel from other offices of
the IRS and Treasury Department partici-
pated in their development.
* * * * *
Amendments to the Regulations
Accordingly, 26 CFR parts 1, 35, and 602
are amended as follows:
PART 1—INCOME TAXES
Paragraph 1. The authority citation for
part 1 continues to read, in part, as fol-
lows:
Authority: 26 U.S.C. 7805 * * *
Par. 2. Section 1.402(f)–1 is amended
by:
1. Revising Q&A–2.
2. Adding Q&A–5 and Q&A–6.
The revision and additions read as fol-
lows:
§1.402(f)–1 Required explanation of eli-
gible rollover distributions; questions and
answers.
* * * * *
Q-2: When must the plan administrator
provide the section 402(f) notice to a dis-
tributee?
A-2: The plan administrator must pro-
vide the section 402(f) notice to a distrib-
utee at a time that satisfies either para-
graph (a) or (b) of this Q&A-2.
(a) This paragraph (a) is satisfied if the
plan administrator provides a distributee
with the section 402(f) notice no less than
30 days and no more than 90 days before
the date of a distribution. However, if the
distributee, after having received the sec-
tion 402(f) notice, affirmatively elects a
distribution, a plan will not fail to satisfy
section 402(f) merely because the distrib-
ution is made less than 30 days after the
section 402(f) notice was provided to the
distributee, provided the plan administra-
tor clearly indicates to the distributee that
the distributee has a right to consider the
decision of whether or not to elect a direct
rollover for at least 30 days after the no-
tice is provided. The plan administrator
may use any method to inform the distrib-
utee of the relevant time period, provided
that the method is reasonably designed to
2
One commentator suggested that electronic trans-
mission of spousal consent be permitted if the plan
has Areasonable certainty that the spouse has con-
sented.@ That suggested standard appears to fall far
short of the witnessing requirement specifically set
forth in the statute.

February 28, 20007182000–9 I.R.B.
attract the attention of the distributee. For
example, this information could be either
provided in the section 402(f) notice or
stated in a separate document (e.g., at-
tached to the election form) that is pro-
vided at the same time as the notice. For
purposes of satisfying the requirement in
the first sentence of paragraph (a) of this
Q&A-2, the plan administrator may sub-
stitute the annuity starting date, within the
meaning of §1.401(a)–20, Q&A-10, for
the date of the distribution.
(b) This paragraph (b) is satisfied if the
plan administrator—
(1) Provides a distributee with the sec-
tion 402(f) notice;
(2) Provides the distributee with a sum-
mary of the section 402(f) notice within
the time period described in paragraph (a)
of this Q&A-2; and
(3) If the distributee so requests after
receiving the summary described in para-
graph (b)(2) of this Q&A-2, provides the
section 402(f) notice to the distributee
without charge and no less than 30 days
before the date of a distribution (or the an-
nuity starting date), subject to the rules
for the distributee’s waiver of that 30-day
period. The summary described in para-
graph (b)(2) of this Q&A-2 must set forth
a summary of the principal provisions of
the section 402(f) notice, must refer the
distributee to the most recent version of
the section 402(f) notice (and, in the case
of a notice provided in any document con-
taining information in addition to the no-
tice, must identify that document and
must provide a reasonable indication of
where the notice may be found in that
document, such as by index reference or
by section heading), and must advise the
distributee that, upon request, a copy of
the section 402(f) notice will be provided
without charge.
* * * * *
Q-5: Will the requirements of section
402(f) be satisfied if a plan administrator
provides a distributee with the section
402(f) notice or the summary of the notice
described in paragraph (b)(2) of Q&A-2
of this section other than through a writ-
ten paper document?
A-5: A plan administrator may provide
a distributee with the section 402(f) notice
or the summary of that notice described in
paragraph (b)(2) of Q&A-2 of this section
either on a written paper document or
through an electronic medium reasonably
accessible to the distributee. A notice or
summary provided through an electronic
medium must be provided under a system
that satisfies the following requirements:
(a) The system must be reasonably de-
signed to provide the notice or summary
in a manner no less understandable to the
distributee than a written paper document.
(b) At the time the notice or summary is
provided, the distributee must be advised
that the distributee may request and re-
ceive the notice on a written paper docu-
ment at no charge, and, upon request, that
document must be provided to the distrib-
utee at no charge.
Q-6: Are there examples that illustrate
the provisions of Q&A-2 and Q&A-5 of
this section?
A-6: The following examples illustrate
the provisions of Q&A-2 and Q&A-5 of
this section:
Example 1. (i) A qualified plan (Plan A) permits
participants to request distributions by e-mail.
Under Plan A’s system for such transactions, a par-
ticipant must enter his or her account number and
personal identification number (PIN); this informa-
tion must match that in Plan A’s records in order for
the transaction to proceed. If a participant requests a
distribution from Plan A by e-mail and the distribu-
tion is an eligible rollover distribution, the plan ad-
ministrator provides the participant with a section
402(f) notice by e-mail. The plan administrator also
advises the participant that he or she may request the
section 402(f) notice on a written paper document
and that, if the participant requests the notice on a
written paper document, it will be provided at no
charge. To proceed with the distribution by e-mail,
the participant must acknowledge receipt, review,
and comprehension of the section 402(f) notice.
(ii) In Example 1, Plan A does not fail to satisfy
the notice requirement of section 402(f) merely be-
cause the notice is provided to the participant other
than through a written paper document.
Example 2. (i) A qualified plan (Plan B) permits
participants to request distributions through the Plan
B web site (Internet or intranet). Under Plan B’s
system for such transactions, a participant must
enter his or her account number and personal identi-
fication number (PIN); this information must match
that in Plan B’s records in order for the transaction
to proceed. A participant may request a distribution
from Plan B by following the applicable instructions
on the Plan B web site. After the participant has re-
quested a distribution that is an eligible rollover dis-
tribution, the participant is automatically shown a
page on the web site containing a section 402(f) no-
tice. Although this page of the web site may be
printed, the page also advises the participant that he
or she may request the section 402(f) notice on a
written paper document by calling a telephone num-
ber indicated on the web page and that, if the partici-
pant requests the notice on a written paper docu-
ment, it will be provided at no charge. To proceed
with the distribution by e-mail, the participant must
acknowledge receipt, review, and comprehension of
the section 402(f) notice.
(ii) In this Example 2, Plan B does not fail to sat-
isfy the notice requirement of section 402(f) merely
because the notice is provided to the participant
other than through a written paper document.
Example 3. (i) A qualified plan (Plan C) permits
participants to request distributions through Plan C’s
automated telephone system. Under Plan C’s system
for such transactions, a participant must enter his or
her account number and personal identification num-
ber (PIN); this information must match that in Plan
C’s records in order for the transaction to proceed.
Plan C provides the section 402(f) notice in the sum-
mary plan description, the most recent version of
which was distributed to participants in 1997. A par-
ticipant may request a distribution from Plan C by
following the applicable instructions on the auto-
mated telephone system. In 1999, a participant,
using Plan C’s automated telephone system, requests
a distribution that is an eligible rollover distribution.
The automated telephone system refers the partici-
pant to the most recent version of the section 402(f)
notice which was provided in the summary plan de-
scription, informs the participant where the section
402(f) notice may be located in the summary plan de-
scription, and provides an oral summary of the mate-
rial provisions of the section 402(f) notice. The sys-
tem also advises the participant that the participant
may request the section 402(f) notice on a written
paper document and that, if the participant requests
the notice on a written paper document, it will be
provided at no charge. Before proceeding with the
distribution, the participant must acknowledge re-
ceipt, review, and comprehension of the summary.
Under Plan C’s system for processing such transac-
tions, the participant’s distribution will be made no
more than 90 days and no fewer than 30 days after
the participant requests the distribution and receives
the summary of the section 402(f) notice (unless the
participant waives the 30-day period).
(ii) In this Example 3, Plan C does not fail to sat-
isfy the notice requirement of section 402(f) merely
because Plan C provides a summary of the section
402(f) notice or merely because the summary is pro-
vided to the participant other than through a written
paper document.
Example 4. (i) Same facts as Example 3, except
that, pursuant to Plan C’s system for processing such
transactions, a participant who so requests is trans-
ferred to a customer service representative whose
conversation with the participant is recorded. The
customer service representative provides the sum-
mary of the section 402(f) notice by reading from a
prepared text.
(ii) In this Example 4, Plan C does not fail to sat-
isfy the notice requirement of section 402(f) merely
because Plan C provides a summary of the section
402(f) notice or merely because the summary of the
section 402(f) notice is provided to the participant
other than through a written paper document.
Example 5. (i) Same facts as Example 3, except
that Plan C does not provide the section 402(f) no-
tice in the summary plan description. Instead, the
automated telephone system reads the section 402(f)
notice to the participant.
(ii) In this Example 5, Plan C does not satisfy the
notice requirement of section 402(f) because oral
delivery alone of the section 402(f) notice through
the automated telephone system is not sufficient.
Example 6. (i) The facts are the same as in Ex-
ample 1, except that Participant D requested a distri-

2000–9 I.R.B.719February 28, 2000
bution by e-mail, then terminated employment, and,
following the termination, no longer has reasonable
access to Plan A e-mail.
(ii) In this Example 6, Plan A does not satisfy the
notice requirement of section 402(f) because the
electronic medium through which the notice is pro-
vided is not reasonably accessible to Participant D.
Plan A must provide the section 402(f) notice to Par-
ticipant D in a written paper document or by an elec-
tronic means that is reasonably accessible to Partici-
pant D.
Par. 3. Section 1.411(a)–11 is amended
by:
1. Revising paragraphs (c)(2)(i) and
(iii).
2. Removing the language “Written
consent” in paragraph (c)(2)(ii) and (c)(3)
and adding “Consent” in its place.
3. Adding paragraphs (f) and (g).
The revisions and additions read as fol-
lows:
§1.411(a)–11 Restriction and valuation of
distributions.
* * * * *
(c) * * *
(2) Consent. (i) No consent is valid
unless the participant has received a gen-
eral description of the material features of
the optional forms of benefit available
under the plan. In addition, so long as a
benefit is immediately distributable, a
participant must be informed of the right,
if any, to defer receipt of the distribution.
Furthermore, consent is not valid if a sig-
nificant detriment is imposed under the
plan on any participant who does not con-
sent to a distribution. Whether or not a
significant detriment is imposed shall be
determined by the Commissioner by ex-
amining the particular facts and circum-
stances.
* * * * *
(iii) A plan must provide a participant
with notice of the rights specified in this
paragraph (c)(2) at a time that satisfies ei-
ther paragraph (c)(2)(iii)(A) or (B) of this
section:
(A) This paragraph (c)(2)(iii)(A) is sat-
isfied if the plan provides a participant
with notice of the rights specified in this
paragraph (c)(2) no less than 30 days and
no more than 90 days before the date the
distribution commences. However, if the
participant, after having received this no-
tice, affirmatively elects a distribution, a
plan will not fail to satisfy the consent re-
quirement of section 411(a)(11) merely
because the distribution commences less
than 30 days after the notice was provided
to the participant, provided the plan ad-
ministrator clearly indicates to the partici-
pant that the participant has a right to at
least 30 days to consider whether to con-
sent to the distribution.
(B) This paragraph (c)(2)(iii)(B) is sat-
isfied if the plan—
(1) Provides the participant with notice
of the rights specified in this paragraph
(c)(2);
(2) Provides the participant with a sum-
mary of the notice within the time period
described in paragraph (c)(2)(iii)(A) of
this section; and
(3) If the participant so requests after
receiving the summary described in para-
graph (c)(2)(iii)(B)(2) of this section, pro-
vides the notice to the participant without
charge and no less than 30 days before the
date the distribution commences, subject
to the rules for the participant’s waiver of
that 30-day period. The summary de-
scribed in paragraph (c)(2)(iii)(B)(2) of
this section must advise the participant of
the right, if any, to defer receipt of the dis-
tribution, must set forth a summary of the
distribution options under the plan, must
refer the participant to the most recent
version of the notice (and, in the case of a
notice provided in any document contain-
ing information in addition to the notice,
must identify that document and must
provide a reasonable indication of where
the notice may be found in that document,
such as by index reference or by section
heading), and must advise the participant
that, upon request, a copy of the notice
will be provided without charge.
* * * * *
(f) Medium for notice and consent—
(1) Notice. The notice of a participant’s
rights described in paragraph (c)(2) of this
section or the summary of that notice de-
scribed in paragraph (c)(2)(iii)(B)(2) of
this section may be provided either on a
written paper document or through an
electronic medium reasonably accessible
to the participant. A notice or summary
provided through an electronic medium
must be provided under a system that sat-
isfies the following requirements:
(i) The system must be reasonably de-
signed to provide the notice or summary
in a manner no less understandable to the
participant than a written paper docu-
ment.
(ii) At the time the notice or summary
is provided, the participant must be ad-
vised that he or she may request and re-
ceive the notice on a written paper docu-
ment at no charge, and, upon request, that
document must be provided to the partici-
pant at no charge.
(2) Consent. The consent described in
paragraphs (c)(2) and (3) of this section
may be given either on a written paper
document or through an electronic
medium reasonably accessible to the par-
ticipant. A consent given through an elec-
tronic medium must be given under a sys-
tem that satisfies the following
requirements:
(i) The system must be reasonably de-
signed to preclude any individual other
than the participant from giving the con-
sent.
(ii) The system must provide the partic-
ipant with a reasonable opportunity to re-
view and to confirm, modify, or rescind
the terms of the distribution before the
consent to the distribution becomes effec-
tive.
(iii) The system must provide the par-
ticipant, within a reasonable time after the
consent is given, a confirmation of the
terms (including the form) of the distribu-
tion either on a written paper document or
through an electronic medium under a
system that satisfies the requirements of
paragraph (f)(1) of this section.
(g) Examples. The provisions of para-
graph (f) of this section are illustrated by
the following examples:
Example 1. (i) A qualified plan (Plan A) permits
participants to request distributions by e-mail. Under
Plan A’s system for such transactions, a participant
must enter his or her account number and personal
identification number (PIN); this information must
match that in Plan A’s records in order for the transac-
tion to proceed. If a participant requests a distribution
from Plan A by e-mail, the plan administrator provides
the participant with a section 411(a)(11) notice by e-
mail. The plan administrator also advises the partici-
pant by e-mail that he or she may request the section
411(a)(11) notice on a written paper document and
that, if the participant requests the notice on a written
paper document, it will be provided at no charge. To
proceed with the distribution by e-mail, the participant
must acknowledge receipt, review, and comprehen-
sion of the section 411(a)(11) notice and must consent
to the distribution within the time required under sec-
tion 411(a)(11). Within a reasonable time after the
participant’s consent by e-mail, the plan administrator,
by e-mail, sends confirmation of the terms (including
the form) of the distribution to the participant and ad-
vises the participant that he or she may request the
confirmation on a written paper document that will be
provided at no charge.
(ii) In this Example 1, Plan A does not fail to satisfy
the notice or consent requirement of section
411(a)(11) merely because the notice and consent are
provided other than through written paper documents.

February 28, 20007202000–9 I.R.B.
Example 2. (i) Same facts as Example 1, except
that, instead of sending a confirmation of the distribu-
tion by e-mail, the plan administrator, within a reason-
able time after the participant’s consent, sends the par-
ticipant an account statement for the period that
includes information reflecting the terms of the distri-
bution.
(ii) In this Example 2, Plan A does not fail to satisfy
the consent requirement of section 411(a)(11) merely
because the consent is provided other than through a
written paper document.
Example 3. (i) A qualified plan (Plan B) permits
participants to request distributions through the Plan B
web site (Internet or intranet). Under Plan B’s system
for such transactions, a participant must enter his or
her account number and personal identification num-
ber (PIN); this information must match that in Plan B’s
records in order for the transaction to proceed. A par-
ticipant may request a distribution from Plan B by fol-
lowing the applicable instructions on the Plan B web
site. After the participant has requested a distribution,
the participant is automatically shown a page on the
web site containing a section 411(a)(11) notice. Al-
though this page of the web site may be printed, the
page also advises the participant that he or she may re-
quest the section 411(a)(11) notice on a written paper
document by calling a telephone number indicated on
the web page and that, if the participant requests the
notice on a written paper document, it will be provided
at no charge. To proceed with the distribution by e-
mail, the participant must acknowledge receipt, re-
view, and comprehension of the section 411(a)(11) no-
tice and must consent to the distribution within the
time required under section 411(a)(11). The web site
requires the participant to review and confirm the
terms (including the form) of the distribution before
the transaction is completed. After the participant has
given consent via e-mail, the Plan B web site confirms
the distribution to the participant and advises the par-
ticipant that he or she may request the confirmation on
a written paper document that will be provided at no
charge.
(ii) In this Example 3, Plan B does not fail to satisfy
the notice or consent requirement of section
411(a)(11) merely because the notice and consent are
provided other than through written paper documents.
Example 4.(i) A qualified plan (Plan C) permits
participants to request distributions through Plan C’s
automated telephone system. Under Plan C’s system
for such transactions, a participant must enter his or
her account number and personal identification num-
ber (PIN); this information must match that in Plan C’s
records in order for the transaction to proceed. Plan C
provides only the following distribution options: a
lump sum and annual installments over 5, 10, or 20
years. A participant may request a distribution from
Plan C by following the applicable instructions on the
automated telephone system. After the participant has
requested a distribution, the automated telephone sys-
tem reads the section 411(a)(11) notice to the partici-
pant. The automated telephone system also advises
the participant that he or she may request the notice on
a written paper document and that, if the participant
requests the notice on a written paper document, it will
be provided at no charge. Before proceeding with the
distribution transaction, the participant must acknowl-
edge receipt, review, and comprehension of the section
411(a)(11) notice and must consent to the distribution
within the time required under section 411(a)(11). The
automated telephone system requires the participant to
review and confirm the terms (including the form) of
the distribution before the transaction is completed.
After the participant has given consent, the automated
telephone system confirms the distribution to the par-
ticipant and advises the participant that he or she may
request the confirmation on a written paper document
that will be provided at no charge. Because Plan C has
relatively few and simple distribution options, the pro-
vision of the section 411(a)(11) notice over the auto-
mated telephone system is no less understandable to
the participant than a written paper notice.
(ii) In this Example 4, Plan C does not fail to satisfy
the notice or consent requirement of section
411(a)(11) merely because the notice and consent are
provided other than through written paper documents.
Example 5. (i) Same facts as Example 4, except
that, pursuant to Plan C’s system for processing such
transactions, a participant who so requests is trans-
ferred to a customer service representative whose con-
versation with the participant is recorded. The cus-
tomer service representative provides the section
411(a)(11) notice from a prepared text and processes
the participant’s distribution in accordance with prede-
termined instructions of the plan administrator.
(ii) In this Example 5, Plan C does not fail to satisfy
the notice or consent requirement of section
411(a)(11) merely because the notice and consent are
provided other than through written paper documents.
Example 6. (i) Same facts as Example 1, except
that Participant D requested a distribution by e-mail,
then terminated employment and, following the termi-
nation, no longer has access to e-mail.
(ii) In this Example 6, Plan A does not satisfy the
notice or consent requirement of section 411(a)(11)
because the electronic medium through which the no-
tice is provided is not reasonably accessible to Partici-
pant D. Plan A must provide Participant D the section
411(a)(11) notice in a written paper document or by an
electronic means that is reasonably accessible to Par-
ticipant D.
Par. 4. The heading for part 35 is re-
vised to read as follows:
PART 35—EMPLOYMENT TAX AND
COLLECTION OF INCOME TAX AT
SOURCE REGULATIONS UNDER
THE TAX EQUITY AND FISCAL
RESPONSIBILITY ACT OF 1982
Par. 5. The authority citation for part
35 is revised to read as follows:
Authority: 26 U.S.C. 6047(e), 7805;
68A Stat. 917; 96 Stat. 625; Public Law
97–248 (96 Stat. 623).
Section 35.3405–1 also issued under 26
U.S.C. 3405(e)(10)(B)(iii).
Section 35.3405–1T also issued under
26 U.S.C. 3405(e)(10)(B)(iii).
Par. 6. Redesignate §35.3405–1 as
§35.3405–1T and revise the heading to
read as follows:
§35.3405–1T Questions and answers re-
lating to withholding on pensions, annu-
ities, and certain other deferred income
(temporary regulations).
* * * * *
Par. 7. A new §35.3405–1 is added to
read as follows:
§35.3405–1 Questions and answers re-
lating to withholding on pensions, annu-
ities, and certain other deferred income.
The following questions and answers
relate to withholding on pensions, annu-
ities, and other deferred income under
section 3405 of the Internal Revenue
Code of 1986, as added by section 334 of
the Tax Equity and Fiscal Responsibility
Tax Act of 1982 (Pub. L. 97–248)
(TEFRA).
a-1 through d-34 [Reserved] For fur-
ther guidance, see §35.3405–1T.
* * * * *
d-35. Q. Through what medium may
a payor provide the notice required under
section 3405 to a payee?
A. A payor may provide the notice re-
quired under section 3405 (including the
abbreviated notice described in d-27 of
§35.3405–1T and the annual notice de-
scribed in d-31 of §35.3405–1T) to a
payee either on a written paper document
or through an electronic medium reason-
ably accessible to the payee. A notice
provided through an electronic medium
must be provided under a system that sat-
isfies the following requirements:
(a) The system must be reasonably de-
signed to provide the notice in a manner
no less understandable to the payee than a
written paper document.
(b) At the time the notice is provided,
the payee must be advised that the payee
may request and receive the notice on a
written paper document at no charge, and,
upon request, that document must be pro-
vided to the payee at no charge.
d-36. Q. Are there examples that il-
lustrate the provisions of d-35 of this sec-
tion?
A. The provisions of d-35 of this section
are illustrated by the following examples:
Example 1. (i) An employer deferred compensa-
tion plan (Plan A) permits participants to request dis-
tributions by e-mail. Under Plan A’s system for such
transactions, a participant must enter his or her ac-
count number and personal identification number
(PIN); this information must match that in Plan A’s
records in order for the transaction to proceed. The
plan administrator is the payor. If a participant re-
quests a distribution from Plan A by e-mail, the plan
administrator provides the participant with the notice
required under section 3405 by e-mail. The plan ad-
ministrator also advises the participant by e-mail that
he or she may request the notice on a written paper
document and that, if the participant requests the no-
tice on a written paper document, it will be provided at
no charge. To proceed with the distribution by e-mail,

the participant must acknowledge receipt, review, and
comprehension of the notice.
(ii) In this Example 1, the plan administrator does
not fail to satisfy the notice requirement of section
3405 merely because the notice is provided to the par-
ticipant other than through a written paper document.
Example 2. (i) An employer deferred compensa-
tion plan (Plan B) permits participants to request dis-
tributions through the Plan B web site (Internet or in-
tranet). Under Plan B’s system for such transactions, a
participant must enter his or her account number and
personal identification number (PIN); this information
must match that in Plan B’s records in order for the
transaction to proceed. The plan administrator is the
payor. A participant may request a distribution from
Plan B by following the applicable instructions on the
Plan B web site. After the participant has requested a
distribution, the participant is automatically shown a
page on the web site containing the notice required by
section 3405. Although this page of the web site may
be printed, the page also advises the participant that he
or she may request the notice on a written paper docu-
ment and that, if the participant requests the notice on
a written paper document, it will be provided at no
charge. To proceed with the distribution through the
web site, the participant must acknowledge receipt, re-
view, and comprehension of the notice.
(ii) In this Example 2, the plan administrator does
not fail to satisfy the notice requirement of section
3405 merely because the notice is provided to the par-
ticipant other than through a written paper document.
Example 3. (i) An employer deferred compensa-
tion plan (Plan C) permits participants to request dis-
tributions through Plan C’s automated telephone sys-
tem. Under Plan C’s system for such transactions, a
participant must enter his or her account number and
personal identification number (PIN); this information
must match that in Plan C’s records in order for the
transaction to proceed. The plan administrator is the
payor. A participant may request a distribution from
Plan C by following the applicable instructions on the
automated telephone system. After the participant has
requested a distribution, the automated telephone sys-
tem reads the notice required by section 3405 to the
participant. The automated telephone system also ad-
vises the participant that he or she may request the no-
tice on a written paper document and that, if the partic-
ipant requests the notice on a written paper document,
it will be provided at no charge. Before proceeding
with the distribution transaction, the participant must
acknowledge receipt, review, and comprehension of
the notice.
(ii) In this Example 3, the plan administrator does
not fail to satisfy the notice requirement of section
3405 merely because the notice is provided to the par-
ticipant other than through a written paper document.
Example 4. (i) Same facts as Example 3, except
that, pursuant to the system for processing such trans-
actions, a participant who so requests is transferred to
a customer service representative whose conversation
with the participant is recorded. The customer service
representative provides the notice required by section
3405 by reading from a prepared text.
(ii) Conclusion. In this Example 4, the plan admin-
istrator does not fail to satisfy the notice requirement
of section 3405 merely because the notice is provided
to the participant other than through a written paper
document.
Example 5. (I) Same facts as Example 1, except
that Participant D requested a distribution by e-mail
and then terminated employment. Participant D no
longer has access to e-mail.
(ii) In this Example 5, Plan A does not satisfy the
notice requirement of section 3405 because the elec-
tronic medium through which the notice is provided is
not reasonably accessible to Participant D. Plan A
must provide the notice required by section 3405 to
Participant D in a written paper document or by an
electronic medium that is reasonably accessible to Par-
ticipant D.
PART 602—OMB CONTROL
NUMBERS UNDER THE
PAPERWORK REDUCTION ACT
Par. 6. The authority citation for part
602 continues to read as follows:
Authority: 26 U.S.C. 7805.
Par. 7. In §602.101, paragraph (b) is
amended by adding the following entry in
the table in numerical order to read as fol-
lows:
§602.101 OMB Control numbers.
* * * * *
(b) * * *
Robert E. Wenzel,
Deputy Commissioner
of Internal Revenue.
Approved January 20, 2000.
Jonathan Talisman,
Acting Assistant Secretary
of the Treasury.
(Filed by the Office of the Federal Register on Feb-
ruary 7, 2000, 8:45 a.m., and published in the issue
of the Federal Register for February 8, 2000, 65 F.R.
6001)
2000–9 I.R.B.721February 28, 2000
CFR Part or Section WhereCurrent OMB
Identified and DescribedControl No.
* * * * *
1.402(f)–1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1545–1632
* * * * *
1.411(a)–11 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1545–1632
* * * * *
Section 3221.—Rate of Tax
Determination of Quarterly Rate
of Excise Tax for Railroad
Retirement Supplemental
Annuity Program
In accordance with directions in Section
3221(c) of the Railroad Retirement Tax Act
(26 U.S.C., Section 3221(c)), the Railroad
Retirement Board has determined that the
excise tax imposed by such Section 3221(c)
on every employer, with respect to having
individuals in his employ, for each work-
hour for which compensation is paid by
such employer for services rendered to him
during the quarter beginning January 1,
2000, shall be at the rate of 26 1/2 cents.
In accordance with directions in Section
15(a) of the Railroad Retirement Act of
1974, the Railroad Retirement Board has de-
termined that for the quarter beginning Janu-
ary 1, 2000, 38.7 percent of the taxes col-
lected under Sections 3211(b) and 3221(c)
of the Railroad Retirement Tax Act shall be
credited to the Railroad Retirement Account
and 61.3 percent of the taxes collected under
such Sections 3211(b) and 3221(c) plus 100
percent of the taxes collected under Section
3221(d) of the Railroad Retirement Tax Act
shall be credited to the Railroad Retirement
Supplemental Account.
Dated December 2, 1999.
By Authority of the Board.
Beatrice Ezerski,
Secretary of the Board.
(Filed by the Office of the Federal Register on De-
cember 12, 1999, 8:45 a.m., and published in the
issue of the Federal Register for December 13, 1999,
64 F.R. 69575)

26 CFR 601.105: Examination of returns and
claims for refund, credit, or abatement;
determination of correct tax liability.
(Also Part I, sections 61, 280F; 1.61.21, 1.280F–7)
Rev. Proc. 2000-18
SECTION 1. PURPOSE
This revenue procedure provides: (1)
limitations on depreciation deductions for
owners of passenger automobiles first
placed in service during calendar year
2000, including separate limitations on
passenger automobiles designed to be
propelled primarily by electricity and
built by an original equipment manufac-
turer (electric automobiles); (2) the
amounts to be included in income by
lessees of passenger automobiles first
leased during calendar year 2000, includ-
ing separate inclusion amounts for elec-
tric automobiles; and (3) the maximum
allowable value of employer-provided au-
tomobiles first made available to employ-
ees for personal use in calendar year 2000
for which the vehicle cents-per-mile valu-
ation rule provided under § 1.61-21(e) of
the Income Tax Regulations may be ap-
plicable. The tables detailing these depre-
ciation limitations and lessee inclusion
amounts reflect the automobile price in-
flation adjustments required by §
280F(d)(7) of the Internal Revenue Code.
The maximum allowable automobile
value for applying the vehicle cents-per-
mile valuation rule reflects the automo-
bile price inflation adjustment of §
280F(d)(7) as required by § 1.61-
21(e)(1)(iii)(A).
SECTION 2. BACKGROUND
For owners of automobiles, § 280F(a)
imposes dollar limitations on the depreci-
ation deduction for the year that the auto-
mobile is placed in service and each suc-
ceeding year. In the case of electric
automobiles placed in service after Au-
gust 5, 1997, and before January 1, 2005,
§ 280F(a)(1)(C) requires tripling of these
limitation amounts. Section 280F(d)(7)
requires the amounts allowable as depre-
ciation deductions to be increased by a
price inflation adjustment amount for pas-
senger automobiles placed in service after
1988.
For leased automobiles, § 280F(c) re-
quires a reduction in the deduction al-
lowed to the lessee of the automobile.
The reduction must be substantially
equivalent to the limitations on the depre-
ciation deductions imposed on owners of
automobiles. Under § 1.280F-7(a), this
reduction requires the lessees to include
in gross income an inclusion amount de-
termined by applying a formula to the
amount obtained from a table. There is a
table for lessees of electric automobiles
and a table for all other passenger auto-
mobiles. Each table shows inclusion
amounts for a range of fair market values
for each tax year after the automobile is
first leased.
For automobiles first provided by em-
ployers to employees that meet the re-
quirements of § 1.61-21(e)(1), the value
to the employee of the use of the automo-
bile may be determined under the vehicle
cents-per-mile valuation rule of § 1.61-
21(e). Section 1.61-21(e)(1)(iii)(A) pro-
vides that for an automobile first made
available after 1988 to any employee of
the employer for personal use, the value
of the use of the automobile may not be
determined under the vehicle cents-per-
mile valuation rule for a calendar year if
the fair market value of the automobile
(determined pursuant to § 1.61-
21(d)(5)(i) through (iv)) on the first date
the automobile is made available to the
employee exceeds $12,800 as adjusted by
§ 280F(d)(7).
SECTION 3. SCOPE AND OBJECTIVE
01. The limitations on depreciation de-
ductions in section 4.02 of this revenue
procedure apply to automobiles (other
than leased automobiles) that are placed
in service in calendar year 2000 and con-
tinue to apply for each tax year that the
automobile remains in service.
02. The tables in section 4.03 of this
revenue procedure apply to leased auto-
mobiles for which the lease term begins in
calendar year 2000. Lessees of such auto-
mobiles must use these tables to deter-
mine the inclusion amount for each tax
year during which the automobile is
leased.
03. SeeRev. Proc. 96-25, 1996-1 C.B.
681, for information on determining in-
clusion amounts for automobiles first
leased before January 1, 1997; Rev. Proc.
97-20, 1997-1 C.B. 647, for automobiles
first leased during calendar year 1997, in-
cluding electric automobiles first leased
on or after January 1, 1997, and before
August 6, 1997; Rev. Proc. 98-24, 1998-1
C.B. 663, for electric automobiles first
leased after August 5, 1997, and before
January 1, 1998; Rev. Proc. 98-30, 1998-1
C.B. 930, for all automobiles first leased
in calendar year 1998; and Rev. Proc. 99-
14, 1999-5 I.R.B. 56, for all automobiles
first leased in calendar year 1999.
04. The maximum fair market value
figure in section 4.04(2) of this revenue
procedure applies to employer-provided
automobiles first made available to any
employee for personal use in calendar
year 2000. SeeRev. Proc. 97-20, for the
maximum fair market value figure for au-
tomobiles first made available in calendar
year 1997; Rev. Proc. 98-30, for the maxi-
mum fair market value figure for automo-
biles first made available in calendar year
1998; and Rev. Proc. 99-14, for the maxi-
mum fair market value figure for automo-
biles first made available in calendar year
1999.
SECTION 4. APPLICATION
01. A taxpayer placing an automobile
in service for the first time during calen-
dar year 2000 is limited to the deprecia-
tion deduction shown in Table 1 of sec-
tion 4.02(2) of this revenue procedure or,
in the case of an electric automobile,
Table 2 of this revenue procedure. A tax-
payer first leasing an automobile in calen-
dar year 2000 must determine the inclu-
sion amount that is added to gross income
using Table 3 of section 4.03 of this rev-
enue procedure or, in the case of an elec-
tric automobile, Table 4 of this revenue
procedure. In addition, the procedures of
§ 1.280F-7(a) must be followed. An em-
ployer providing an automobile for the
first time in calendar year 2000 for the
personal use of any employee may deter-
mine the value of the use of the automo-
bile by using the cents-per-mile valuation
rule in § 1.61-21(e) if the fair market
value of the automobile does not exceed
the amount specified in section 4.04(2) of
this revenue procedure. If the fair market
February 28, 20007222000–9 I.R.B.
Part III. Administrative, Procedural, and Miscellaneous

value of the automobile exceeds the
amount specified in section 4.04(2) of this
revenue procedure, the employer may de-
termine the value of the use of the auto-
mobile under the general valuation rules
of § 1.61-21(b) or under the special valua-
tion rules of § 1.61-21(d) (Automobile
lease valuation) or § 1.61-21(f) (Commut-
ing valuation) if the applicable require-
ments are met.
02. Limitations on Depreciation De-
ductions for Certain Automobiles.
(1) Amount of the Inflation Adjust-
ment. Under § 280F(d)(7)(B)(i), the auto-
mobile price inflation adjustment for any
calendar year is the percentage (if any) by
which the CPI automobile component for
October of the preceding calendar year
exceeds the CPI automobile component
for October 1987. The term “CPI auto-
mobile component” is defined in §
280F(d)(7)(B)(ii) as the “automobile
component” of the Consumer Price Index
for all Urban Consumers published by the
Department of Labor (the CPI). The new
car component of the CPI was 115.2 for
October 1987 and 138.8 for October
1999. The October 1999 index exceeded
the October 1987 index by 23.6. The In-
ternal Revenue Service has, therefore, de-
termined that the automobile price infla-
tion adjustment for 2000 is 20.49 percent
(23.6/115.2 x 100%). This adjustment is
applicable to all automobiles that are first
placed in service in calendar year 2000.
The dollar limitations in § 280F(a) must
therefore be multiplied by a factor of
0.2049, and the resulting increases, after
rounding to the nearest $100, are added to
the 1988 limitations to give the deprecia-
tion limitations applicable to passenger
automobiles (other than electric automo-
biles) for calendar year 2000. To deter-
mine the dollar limitations applicable to
an electric automobile first placed in ser-
vice during calendar year 2000, the dollar
limitations in § 280F(a) are tripled in ac-
cordance with § 280F(a)(1)(C) and are
then multiplied by a factor of 0.2049; the
resulting increases, after rounding to the
nearest $100, are added to the tripled
1988 limitations to give the depreciation
limitations for calendar year 2000.
(2) Amount of the Limitation. For
automobiles (other than electric automo-
biles) placed in service in calendar year
2000, Table 1 of this revenue procedure
contains the dollar amount of the depreci-
ation limitations for each tax year. For
electric automobiles placed in service in
calendar year 2000, Table 2 of this rev-
enue procedure contains these amounts.
2000–9 I.R.B.723February 28, 2000
REV. PROC. 2000-18, TABLE 1
DEPRECIATION LIMITATIONS FOR AUTOMOBILES
(OTHER THAN ELECTRIC AUTOMOBILES)
FIRST PLACED IN SERVICE IN CALENDAR YEAR 2000
Tax YearAmount
1st Tax Year$3,060
2nd Tax Year$4,900
3rd Tax Year$2,950
Each Succeeding Year$1,775
REV. PROC. 2000-18, TABLE 2
DEPRECIATION LIMITATIONS FOR ELECTRIC AUTOMOBILES
FIRST PLACED IN SERVICE IN CALENDAR YEAR 2000
Tax YearAmount
1st Tax Year$9,280
2nd Tax Year$14,800
3rd Tax Year$8,850
Each Succeeding Year$5,325
03. Inclusions in Income of Lessees of
Automobiles.
The inclusion amounts for automobiles
first leased in calendar year 2000 are cal-
culated under the procedures described in
§ 1.280F-7(a). Lessees of automobiles
other than electric automobiles should use
Table 3 of this revenue procedure in ap-
plying these procedures, while lessees of
electric automobiles should use Table 4 of
this revenue procedure.

REV. PROC. 2000-18, TABLE 3
DOLLAR AMOUNTS FOR AUTOMOBILES (OTHER THAN ELECTRIC AUTOMOBILES)
WITH A LEASE TERM BEGINNING IN CALENDAR YEAR 2000
Fair Market ValueTax Year During Lease
of Automobile
1st2nd3rd4th5th and
OverNot OverLater
February 28, 20007242000–9 I.R.B.
$ 15,500 15,800 3 6 9 10 12
15,800 16,100 5 12 17 20 23
16,100 16,400 8 17 25 30 34
16,400 16,700 10 23 33 40 45
16,700 17,000 13 28 42 49 57
17,000 17,500 16 36 52 62 72
17,500 18,000 20 45 66 78 91
18,000 18,500 25 54 79 95 109
18,500 19,000 29 63 93 111 128
19,000 19,500 33 72 107 127 147
19,500 20,000 37 81 121 143 166
20,000 20,500 41 91 133 160 185
20,500 21,000 45 100 147 176 204
21,000 21,500 50 109 160 193 222
21,500 22,000 54 118 174 209 241
22,000 23,000 60 132 194 234 269
23,000 24,000 68 150 222 266 306
24,000 25,000 77 168 249 298 345
25,000 26,000 85 187 276 331 381
26,000 27,000 93 205 303 364 419
27,000 28,000 102 223 330 396 457
28,000 29,000 110 241 358 429 494
29,000 30,000 119 259 385 461 532
30,000 31,000 127 278 412 493 570
31,000 32,000 135 296 439 527 607
32,000 33,000 144 314 467 558 645
33,000 34,000 152 333 493 591 683
34,000 35,000 160 351 521 623 720
35,000 36,000 169 369 548 656 757
36,000 37,000 177 388 574 689 795
37,000 38,000 185 406 602 721 833
38,000 39,000 194 424 629 754 870
39,000 40,000 202 443 656 786 908
40,000 41,000 210 461 683 819 946
41,000 42,000 219 479 710 852 983
42,000 43,000 227 497 738 884 1,021
43,000 44,000 235 516 765 916 1,058
44,000 45,000 244 534 792 949 1,095
45,000 46,000 252 552 819 982 1,133
46,000 47,000 260 571 846 1,014 1,171
47,000 48,000 269 589 873 1,047 1,208
48,000 49,000 277 607 901 1,079 1,246
49,000 50,000 285 626 927 1,112 1,284
50,000 51,000 294 644 954 1,145 1,321
51,000 52,000 302 662 982 1,177 1,359
52,000 53,000 311 680 1,009 1,210 1,396
53,000 54,000 319 699 1,036 1,242 1,433

54,000 55,000 327 717 1,063 1,275 1,471
55,000 56,000 336 735 1,090 1,308 1,508
56,000 57,000 344 754 1,117 1,340 1,546
57,000 58,000 352 772 1,145 1,372 1,584
58,000 59,000 361 790 1,172 1,405 1,621
59,000 60,000 369 808 1,199 1,438 1,659
60,000 62,000 381 836 1,240 1,486 1,715
62,000 64,000 398 873 1,294 1,551 1,790
64,000 66,000 415 909 1,348 1,617 1,865
66,000 68,000 432 945 1,403 1,681 1,941
68,000 70,000 448 982 1,457 1,747 2,016
70,000 72,000 465 1,019 1,511 1,811 2,092
72,000 74,000 482 1,055 1,566 1,876 2,166
74,000 76,000 498 1,092 1,620 1,942 2,241
76,000 78,000 515 1,129 1,673 2,007 2,317
78,000 80,000 532 1,165 1,728 2,072 2,392
80,000 85,000 561 1,229 1,823 2,186 2,523
85,000 90,000 603 1,320 1,959 2,349 2,711
90,000 95,000 644 1,412 2,095 2,511 2,899
95,000 100,000 686 1,504 2,230 2,674 3,087
100,000 110,000 749 1,641 2,433 2,918 3,369
110,000 120,000 832 1,824 2,705 3,243 3,745
120,000 130,000 916 2,006 2,977 3,569 4,120
130,000 140,000 999 2,190 3,248 3,894 4,496
140,000 150,000 1,083 2,372 3,520 4,219 4,872
150,000 160,000 1,166 2,556 3,790 4,545 5,248
160,000 170,000 1,250 2,738 4,062 4,871 5,623
170,000 180,000 1,333 2,921 4,334 5,196 5,998
180,000 190,000 1,416 3,105 4,605 5,521 6,374
190,000 200,000 1,500 3,287 4,877 5,846 6,750
200,000 210,000 1,583 3,470 5,148 6,172 7,126
210,000 220,000 1,667 3,653 5,419 6,498 7,501
220,000 230,000 1,750 3,836 5,691 6,823 7,877
230,000 240,000 1,834 4,019 5,962 7,148 8,253
240,000 250,000 1,917 4,202 6,233 7,474 8,629
2000–9 I.R.B.725February 28, 2000
REV. PROC. 2000-18, TABLE 3 (Cont’d.)
DOLLAR AMOUNTS FOR AUTOMOBILES (OTHER THAN ELECTRIC AUTOMOBILES)
WITH A LEASE TERM BEGINNING IN CALENDAR YEAR 2000
Fair Market ValueTax Year During Lease
of Automobile
1st2nd3rd4th5th and
OverNot OverLater

$ 47,000 48,000 7 17 26 32 36
48,000 49,000 14 31 47 57 66
49,000 50,000 20 45 69 82 95
50,000 51,000 27 59 90 107 124
51,000 52,000 33 74 110 133 153
52,000 53,000 39 88 132 157 183
53,000 54,000 46 102 153 183 211
54,000 55,000 52 116 174 209 240
55,000 56,000 59 130 195 234 270
56,000 57,000 65 145 216 259 299
57,000 58,000 72 159 237 284 328
58,000 59,000 78 173 258 310 357
59,000 60,000 85 187 279 335 387
60,000 62,000 95 208 311 373 430
62,000 64,000 107 237 353 423 489
64,000 66,000 120 266 394 474 547
66,000 68,000 133 294 437 524 606
68,000 70,000 146 322 480 574 664
70,000 72,000 159 351 521 625 723
72,000 74,000 172 379 564 675 781
74,000 76,000 185 407 606 727 838
76,000 78,000 198 436 648 777 897
78,000 80,000 211 464 690 828 955
80,000 85,000 234 514 763 916 1,058
85,000 90,000 266 585 869 1,042 1,204
90,000 95,000 298 656 975 1,168 1,350
95,000 100,000 331 727 1,080 1,295 1,495
100,000 110,000 379 834 1,237 1,485 1,714
110,000 120,000 444 975 1,449 1,737 2,006
120,000 130,000 509 1,117 1,660 1,990 2,297
130,000 140,000 574 1,259 1,870 2,243 2,589
140,000 150,000 638 1,402 2,080 2,496 2,881
150,000 160,000 703 1,543 2,292 2,748 3,173
160,000 170,000 768 1,685 2,503 3,000 3,465
170,000 180,000 833 1,827 2,713 3,254 3,756
180,000 190,000 897 1,970 2,923 3,506 4,049
190,000 200,000 962 2,112 3,134 3,759 4,340
200,000 210,000 1,027 2,253 3,346 4,011 4,632
210,000 220,000 1,092 2,395 3,556 4,264 4,924
220,000 230,000 1,156 2,538 3,766 4,517 5,215
230,000 240,000 1,221 2,680 3,977 4,769 5,507
240,000 250,000 1,286 2,821 4,189 5,022 5,798
February 28, 20007262000–9 I.R.B.
REV. PROC. 2000-18, TABLE 4
DOLLAR AMOUNTS FOR ELECTRIC AUTOMOBILES
WITH A LEASE TERM BEGINNING IN CALENDAR YEAR 2000
Fair Market ValueTax Year During Lease
of Automobile
1st2nd3rd4th5th and
OverNot OverLater

04. Maximum Automobile Value for
Using the Cents-per- mile Valuation Rule.
(1) Amount of Adjustment. Under §
1.61-21(e)(1)(iii)(A), the limitation on the
fair market value of an employer-provided
automobile first made available to any em-
ployee for personal use after 1988 is to be
adjusted in accordance with § 280F(d)(7).
Accordingly, the adjustment for any calen-
dar year is the percentage (if any) by which
the CPI automobile component for October
of the preceding calendar year exceeds the
CPI automobile component for October
1987. See, section 4.02(1) of this revenue
procedure. The new car component of the
CPI was 115.2 for October 1987 and 138.8
for October 1999. The October 1999 index
exceeded the October 1987 index by 23.6.
The Internal Revenue Service has, there-
fore, determined that the adjustment for
2000 is 20.49 percent (23.6/115.2 x 100%).
This adjustment is applicable to all em-
ployer-provided automobiles first made
available to any employee for personal use
in calendar year 2000. The maximum fair
market value specified in § 1.61-
21(e)(1)(iii)(A) must therefore be multi-
plied by a factor of 0.2049, and the result-
ing increase, after rounding to the nearest
$100, is added to $12,800 to give the maxi-
mum value for calendar year 2000.
(2) The Maximum Automobile Value.
For automobiles first made available in
calendar year 2000 to any employee of
the employer for personal use, the vehicle
cents-per-mile valuation rule may be ap-
plicable if the fair market value of the au-
tomobile on the date it is first made avail-
able does not exceed $15,400.
SECTION 5. EFFECTIVE DATE
This revenue procedure applies to auto-
mobiles (other than leased automobiles)
that are first placed in service during cal-
endar year 2000, to leased automobiles
that are first leased during calendar year
2000, and to employer-provided automo-
biles first made available to employees
for personal use in calendar year 2000.
DRAFTING INFORMATION
The principal author of this revenue pro-
cedure is Bernard P. Harvey of the Office
of the Assistant Chief Counsel
(Passthroughs and Special Industries). For
further information regarding the deprecia-
tion limitations and lessee inclusion
amounts in this revenue procedure, contact
Mr. Harvey at (202) 622-3110; for further
information regarding the maximum auto-
mobile value for applying the vehicle
cents-per-mile valuation rule, contact Ms.
Lynne Camillo of the Office of the Associ-
ate Chief Counsel (Employee Benefits and
Exempt Organizations) at (202) 622-6040
(not toll-free calls).
Weighted Average Interest Rate
Update
Notice 2000-2
Notice 88-73 provides guidelines for
determining the weighted average interest
rate and the resulting permissible range of
interest rates used to calculate current lia-
bility for the purpose of the full funding
limitation of § 412(c)(7) of the Internal
Revenue Code as amended by the Om-
nibus Budget Reconciliation Act of 1987
and as further amended by the Uruguay
Round Agreements Act, Pub. L. 103-465
(GATT).
The average yield on the 30-year Trea-
sury Constant Maturities for January 2000
is 6.63 percent.
The following rates were determined
for the plan years beginning in the month
shown below.
2000–9 I.R.B.727February 28, 2000
90% to 105%90% to 110%
WeightedPermissiblePermissible
MonthYearAverageRangeRange
February20006.035.43 to 6.345.43 to 6.64
Drafting Information
The principal author of this notice is
Todd Newman of Employee Plans, Tax Ex-
empt and Government Entities Division.
For further information regarding this no-
tice, call the Employee Plans Actuarial hot-
line, (202) 622-6076 between 2:30 and
3:30 p.m. Eastern time (not a toll-free num-
ber). Mr. Newman’s number is (202) 622-
8458 (also not a toll-free number).
Pre-Filing Agreements Pilot
Program
Notice 2000-12
1. INTRODUCTION OF PILOT
PROGRAM
This Notice announces a pilot program
for Pre-Filing Agreements (PFAs), under
which large business taxpayers may re-
quest examination and resolution of spe-
cific issues relating to tax returns they ex-
pect to file between September and
December, 2000. The purpose of the pro-
gram is to enable both taxpayers and the
Internal Revenue Service (IRS) to resolve
before filing the treatment of issues other-
wise likely to be disputed in post-filing
audits. Through a cooperative effort, the
program is intended to reduce the costs,
burden and delays encountered in post-fil-
ing examinations.
The program is administered by the Large
and Mid-size Business Division (LMSB)
of the IRS. In its pilot phase, the program
is open to large businesses that currently
have a Coordinated Examination Team on
site. Taxpayers interested in participating
in the pilot program, or with questions
about the program and its suitability to
their situation, should contact their on site
Case Manager as soon as possible, and
are encouraged to apply on or before
March 15, 2000, to ensure their applica-
tion will be given full consideration.
LMSB is willing to meet with taxpayers
considering participation in the program
to answer questions and explore the desir-
ability of their participation.
During the pilot phase of the program,
LMSB plans to select approximately five
to ten taxpayers from among those re-
questing participation in the program.
LMSB will select participants as soon as
possible after March 15, 2000, and pro-
vide taxpayers and audit teams an orienta-
tion about the program. The team will
work with the selected taxpayer with the
expectation of resolving the designated

issue by the taxpayer’s filing deadline.
Taxpayers participating in the pilot pro-
gram will be asked to assist in monitoring
and evaluating the process. After com-
pleting the pilot cases, the IRS will evalu-
ate the program, and may then offer the
program, after further modification, on a
permanent basis.
The IRS believes that the PFA program
offers significant potential benefits for
taxpayers as well as the IRS, and invites
large business taxpayers to participate in
this program.
2. DESCRIPTION OF A PRE-FILING
AGREEMENT
A PFA is a closing agreement under § 7121
of the Internal Revenue Code between the
IRS and taxpayer relating to one or more
specific issues arising from transactions en-
tered into by the taxpayer during a taxable
period ending prior to the date of the agree-
ment. The agreement specifies the treat-
ment of the transaction(s) on a tax return to
be filed by the taxpayer subsequent to the
date of the agreement. A PFA may also re-
solve related specific items affecting other
taxable periods. See Rev. Proc. 68-16,
1968-1 C.B. 770, which describes the
preparation of closing agreements under §
7121.
The PFA’s application of the law to the
taxpayer’s facts may result in treating an
item differently from earlier treatments of
similar items in prior taxable years (e.g.,
deducting items that previously were cap-
italized, such as certain ISO 9000 costs).
If so, the differing treatment may consti-
tute a change in the method of accounting
for that item. The PFA will resolve only
the factual characterization of the items at
issue, but will not constitute the Commis-
sioner’s consent to make any accounting
method change that may be required to
conform the agreed upon treatment of the
item with identical items in earlier years.
Permission to make any accounting
method changes required by the PFA’s
resolution of the factual and legal issues
must be obtained using the applicable ad-
ministrative procedures. SeeRev. Proc.
99-49, 1999-52 I.R.B. 725 (automatic
consent to change certain accounting
methods); Rev. Proc. 97-27, 1997-1 C.B.
680.
3. SUBJECT MATTER OF AN LMSB
PRE-FILING AGREEMENT
In general. The PFA program is intended
to advance the resolution of issues that are
otherwise likely to be disputed in post-fil-
ing audits. The program is intended to
reach agreement on factual issues and
apply settled legal principles to those facts.
In such cases, the presence of an LMSB
audit team on site shortly after the comple-
tion of the transaction is most likely to en-
hance the prospects for an agreed resolu-
tion of the issue. Questions concerning the
correct interpretation of legal rules the in-
terpretation of which is not well settled are
more properly presented in requests for pri-
vate letter rulings. SeeRev. Proc. 2000-1,
2000-1 I.R.B. 4. Moreover, the program is
not available to settle disagreements be-
tween a taxpayer and the IRS over the cor-
rect interpretation of the tax laws (except as
authorized under Delegation Order No. 236
or 247 regarding settlement guidelines).
The IRS will consider entering into a PFA
on any issue involving the application of
settled legal principles requested by the tax-
payer, except as noted below. Issuance of a
PFA is discretionary with the LMSB Indus-
try Director. A PFA cannot resolve issues
for taxpayers or years outside the jurisdic-
tion of LMSB. In evaluating whether to
proceed with the PFA process and to enter
into a PFA, the IRS will determine that the
issue presented is consistent with the over-
all goals of the program stated above.
Examples.The following are examples
of issues likely to be suitable for resolu-
tion through the PFA program:
(1)The valuation of assets (except in
the context of transfer pricing), and
the allocation of the purchase or
sale price of a business among the
assets acquired or sold;
(2)The identification and documenta-
tion of hedging transactions;
(3)Issues relating to in-house research
expenses under section 41;
(4)The allocation of costs among dif-
ferent categories of deductible and
capitalizable items in contexts in
which there is a published revenue
ruling, e.g., repairs (Rev. Rul. 94-
12, 1994-1 C.B. 36), advertising
(Rev. Rul. 92-80, 1992-2 C.B. 57),
and Y2K costs (Rev. Proc. 97-50,
1997-2 C.B. 525);
(5)The determination of which costs
are investigatory costs incurred to
determine whether to enter a new
business and which business to
enter for purposes of qualifying as
start-up costs under § 195 (seeRev.
Rul. 99-23, 1999-20 I.R.B. 3);
(6)The determination of ‘market’ for
taxpayers using the lower of cost or
market method of inventory valua-
tion in situations involving inactive
markets. See§ 1.471-4(b);
(7)Whether a taxpayer’s financial
statement preparation of its last-in,
first-out (LIFO) inventory is consis-
tent with the LIFO conformity re-
quirement under § 1.472-2(e);
(8)Whether a taxpayer’s inventory
contains ‘sub-normal’ goods within
the meaning of § 1.471-2(c) and the
valuation placed thereon;
(9)Whether a taxpayer is considered
the tax owner of the property being
produced under § 1.263A-
2(a)(1)(ii)(A);
(10) Whether a manufacturing contract
newly entered into by a taxpayer is
required to be accounted for as a
long-term contract under § 460; and
(11) The determination of appropriate
asset classes for depreciable prop-
erty placed in service during the
taxable period.
Excluded subjects. A PFA will not be
entered into with respect to the following
issues:
(1)Issues that can be included in an
Advance Pricing Agreement under
Rev. Proc. 96-53, 1996-2 C.B. 375,
(e.g., transfer pricing);
(2)Issues that can be resolved by re-
questing a change in accounting
method on Form 3115;
(3)Issues under the jurisdiction of the
Commissioner, Tax Exempt and
Government Entities Division (e.g.,
employee plans);
(4)Issues regarding transactions that
lack a bona fide business purpose or
have as their principal purpose the
reduction of federal taxes;
(5)The satisfaction, for purposes of
Subtitle F (Procedure and Adminis-
tration), of reasonable cause, due
diligence, good faith, clear and con-
vincing evidence, or any similar
standard; and
(6)The applicability of any penalty or
criminal sanction.
Excluded circumstances. In addition,
the IRS will not entertain a request for a
PFA in the following circumstances:
February 28, 20007282000–9 I.R.B.

(1)The issue (for the taxpayer) in-
volves a partnership item as defined
in § 6231, or is subject to the proce-
dures set forth in § 6221 through §
6233.
(2)The issue is or will be the subject of
a pending or contemporaneous re-
quest for a private letter ruling or a
change in accounting method by the
taxpayer;
(3)The taxpayer’s proposed resolution
of the issue is contrary to a private
letter ruling, technical advice mem-
orandum, or closing agreement pre-
viously issued to or regarding the
taxpayer;
(4)The taxpayer’s proposed resolution
of the issue is contrary to a position
adverse to the taxpayer proposed by
the IRS in response to a private let-
ter ruling (or accounting method
change) request that was withdrawn
by the taxpayer; or
(4)The issue is the subject of litigation
(or has been designated for litiga-
tion by the Office of Chief Counsel)
between the IRS and the taxpayer
with respect to an earlier taxable
period.
For the purposes of these excluded circum-
stances, any reference to the taxpayer also
includes a related taxpayer and any prede-
cessor of the taxpayer or a related taxpayer.
A related taxpayer is one related within the
meaning of § 267 or a member of an affili-
ated group within the meaning of § 1504
that includes the taxpayer. A predecessor is
an entity the tax liability of which the tax-
payer or a related taxpayer is or was pri-
marily or secondarily liable.
4. PROCEDURES FOR
REQUESTING AN LMSB PRE-
FILING AGREEMENT
Before initiating a formal request. Tax-
payers interested in participating in the
pilot program, or with questions about the
program and its suitability to their situa-
tion, should contact the LMSB Case Man-
ager supervising the audit of the return
currently under examination as soon as
possible. Taxpayers also may contact
John Petrella, the PFA Program Manager,
at (202) 283-8390 (not a toll-free num-
ber), for further information about the
PFA program.
Initiating the request. After discussing
the proposed request with their Case
Manager, the taxpayer must submit a re-
quest for a PFA in writing through the
Case Manager to the LMSB Industry Di-
rector. Taxpayers are encouraged to sub-
mit the request on or before March 15,
2000, to ensure their application will be
given full consideration. The PFA Pro-
gram Manager and the Case Manager are
available to assist in the preparation of the
submission.
Contents of the request. The written
statement requesting a PFA should con-
cisely:
(1)Provide the taxpayer’s name, EIN,
and address and the name, title, ad-
dress and telephone number of a
person to contact;
(2)Provide the Case Manager’s name
and telephone number;
(3)Identify the taxable period for
which the PFA is sought, the last
date on which the taxpayer may file
(with extensions) a timely return for
that period, and (if earlier) the date
on which the taxpayer intends to
file that return;
(4)Describe the issue(s) for which the
PFA is sought. Summarize the ma-
terial facts and state the legal
issue(s) involved. For the purpose
of ascertaining that the issue in-
volves the application of settled
law, discuss the taxpayer’s interpre-
tation of these legal rules and their
proposed application to the facts in
question;
(5)Discuss the suitability of the issue
for the PFA program in light of the
purposes and criteria set forth in
section 3, above;
(6)Represent that the issue is not de-
scribed in any of the “Excluded Cir-
cumstances” listed in section 3,
above;
(7)Discuss whether the resolution of
this issue will have any effect in
taxable periods either before or
after the taxable period for which
the PFA is sought;
(8)State whether the taxpayer has ever
applied, or intends to apply, for
Competent Authority assistance
with respect to the issue for the year
in question or any prior year;
(9)Discuss whether the issue identified
can be resolved through a PFA by
the date on which the taxpayer in-
tends to file its return for the tax-
able period in question;
(10) Describe the organization and loca-
tion of the records and other evi-
dence that substantiate the tax-
payer’s proposed position on the
issue;
(11) State that the taxpayer agrees that
the inspection of records and testi-
mony under the PFA procedures
will not preclude or impede (under
§ 7605(b) or any administrative
provisions adopted by the IRS) a
later examination of a return or in-
spection of records with respect to
any tax year needed to resolve the
issue(s) in the request for a PFA,
and that the IRS need not comply
with any applicable procedural re-
strictions (such as providing notice
under § 7605(b)) before beginning
such examination or inspection; and
(12) Indicate the taxpayer’s willingness
to participate in a pilot program and
to assist in monitoring and evaluat-
ing the process.
Perjury statement. A request for a PFA,
and any supplemental submission (includ-
ing additional documents), must include a
declaration, signed by a person currently
authorized to sign the taxpayer’s federal
income tax return, in the following form:
Under penalties of perjury, I declare
that I have examined this request, in-
cluding accompanying documents,
and, to the best of my knowledge and
belief, the facts presented in support of
the request for the Pre-Filing Agree-
ment are true, correct and complete.
Signature. The request for a PFA must
be signed by the taxpayer or the tax-
payer’s authorized representative. If the
request is signed by an authorized repre-
sentative, a copy of Form 2848, Power of
Attorney and Declaration of Representa-
tive, must accompany the request.
No user fee.During the pilot phase of
this program, no user fee is required to re-
quest a PFA.
5. PROCEDURES FOR SELECTING
TAXPAYERS FOR THE PILOT
PROGRAM
Case Manager’s role.Case Managers will
inform the PFA Program Manager of all in-
stances in which taxpayers express interest
in participation in the program, and will
forward a copy of any written request to the
LMSB Industry Director and the PFA Pro-
2000–9 I.R.B.729February 28, 2000

gram Manager. The Case Manager will
also submit to the LMSB Industry Director
a recommendation as to whether LMSB
should proceed with the PFA request. The
Case Manager should discuss, in particular,
the IRS resources required (including any
specialists or outside consultants), the abil-
ity to coordinate the PFA process with the
examination of the taxpayer’s previously
filed returns, the availability of taxpayer
records and personnel, and the probability
of completing examination of the issue in a
timely manner. If the Case Manager plans
to recommend against proceeding with
consideration of the PFA request, the Case
Manager will discuss the proposed recom-
mendation with the taxpayer before submit-
ting the recommendation.
LMSB Industry Director’s decision.The
LMSB Industry Director with jurisdiction
over the taxpayer will make the final deci-
sion as to whether to proceed with the tax-
payer’s request towards resolution through
the PFA program. Criteria for selecting
taxpayers to participate in the pilot phase of
the PFA program include:
(1)The suitability of the issue pre-
sented for the program;
(2)The direct or indirect impact of a
PFA upon other years, issues, tax-
payers, or related cases;
(3)Providing a cross-section of issues
and industries for the pilot; and
(4)The probability of completing the
examination of the issue and enter-
ing into a PFA by the target date.
Communication with taxpayer.The
LMSB Industry Director or Field Opera-
tions Director will contact the taxpayer
within 14 days of receipt of the request to
discuss the potential suitability of the re-
quested issue for inclusion in the pilot
program. Thereafter, LMSB will inform
the taxpayer in writing of LMSB Industry
Director’s decision to accept or reject the
issue(s) for consideration in the PFA pilot
program. A taxpayer is not entitled to a
conference to appeal an LMSB Industry
Director’s decision not to go forward with
the PFA process. A taxpayer not selected
for the pilot program remains eligible for
other procedures for early issue resolu-
tion, including the Accelerated Issue Res-
olution (AIR) program (seeRev. Proc. 94-
67, 1994-2 C.B. 800).
6. PROCESSING A REQUEST FOR
AN LMSB PRE-FILING
AGREEMENT
Consultation with taxpayer. If the IRS
accepts the request for consideration, the
LMSB Industry Director or Field Opera-
tions Director, will contact the taxpayer to
discuss scheduling an orientation program
about the PFA process with the taxpayer
and the audit team. This will initiate a
planning process for factual development
and issue resolution with respect to the
issue(s) accepted for consideration. In
this planning process, the IRS and the tax-
payer will seek to agree on a proposed
time-frame, the identification of relevant
records and testimony, IRS access to
records and testimony, and, ultimately, the
potential scope and nature of the proposed
agreement(s),
Factual and issue development.After
acceptance by the LMSB Industry Direc-
tor, the Case Manager will contact the
taxpayer to discuss any questions that the
IRS may have, to ask for any additional
information needed to process the re-
quest, to verify data supplied, or to re-
quest additional supporting data. True
copies of all contracts, agreements, instru-
ments and other documents, as well as
testimony pertaining to a request for a
PFA must be submitted by the taxpayer
upon request. The issues will be devel-
oped and facts confirmed consistent with
auditing standards and all other applicable
rules and regulations in effect regarding
proper auditing techniques. The audit
team will work closely with the taxpayer
to resolve the issue.
Audit Team recommendation.After de-
veloping the facts and issues, the Case
Manager will prepare a recommendation
for the LMSB Industry Director about en-
tering into a PFA with the taxpayer. Be-
fore submitting the recommendation to
the LMSB Industry Director, the Case
Manager will provide the proposed rec-
ommendation to the taxpayer. If the tax-
payer disagrees with the Case Manager’s
proposed recommendation, the Case
Manager will offer the taxpayer an oppor-
tunity for a conference before submitting
the recommendation to the LMSB Indus-
try Director.
Coordination with other functions. In
considering the request for a PFA, the
LMSB Industry Director will obtain ap-
proval from, or coordinate with, all appro-
priate IRS functions as necessary or, in
his judgment, desirable.
Program Manager and Chief Counsel
review. The LMSB Industry Director
will submit any proposed PFA to the PFA
Program Manager, and through the PFA
Program Manager to the Office of Chief
Counsel, for review before it is executed.
Conference with LMSB Industry Di-
rector.If the Case Manager recommends
entering into a PFA on terms agreed to by
the taxpayer, but the LMSB Industry Di-
rector is tentatively unwilling to enter into
such a agreement, the LMSB Industry Di-
rector will offer the taxpayer an opportu-
nity for a conference before rejecting all
or part of a proposed PFA. In all other
cases, the LMSB Industry Director is not
obligated to offer the taxpayer such a con-
ference, although the taxpayer may re-
quest one.
Executing the PFA. The LMSB Industry
Director may execute a PFA if the LMSB
Industry Director determines:
(1)That entering into the PFA is con-
sistent with the goals of the PFA
program as stated in this Notice;
(2)That the tax results provided for in
the PFA reflect settled legal princi-
ples and correctly apply those prin-
ciples (or positions authorized
under Delegation Order No. 236 or
247) to the facts found by the Audit
Team; and
(3)That there appears to be an advan-
tage in having the issue(s) perma-
nently and conclusively closed for
the taxable period covered by the
PFA, or that the taxpayer shows
good and sufficient reasons for de-
siring a closing agreement and that
the United States will sustain no
disadvantage through consumma-
tion of such an agreement (see§
301.7121-1(a) of the Regulations
on Procedure and Administration).
Return filing requirements not af-
fected. The IRS’ acceptance of a tax-
payer’s request to attempt to reach a PFA
on specified issue(s) does not suspend or
waive the normal filing requirements for
any tax returns that are affected by the
proposed PFA. In the event that a PFA is
reached prior to the filing of the return,
the taxpayer will report the transaction(s)
addressed in the PFA in accordance with
the terms of the PFA.
Continuation of process after filing, co-
ordination with Accelerated Issue Res-
olution procedure, and Appeals. If a
PFA is not executed prior to the filing of
February 28, 20007302000–9 I.R.B.

the return(s), the IRS and the taxpayer
may continue to attempt to resolve the
issue and enter into a PFA under these
procedures until July 31, 2001. If, as of
July 31, 2001, the IRS and taxpayer have
not entered into a PFA and the IRS dis-
agrees with the taxpayer’s claimed tax
treatment of the transaction(s), the tax-
payer and the IRS can continue the effort
to reach an agreement using AIR proce-
dures under Rev. Proc. 94-67, 1994-2
C.B. 800. This continuation of the issue
resolution process does not require a new
application. In addition to the AIR proce-
dures, the taxpayer retains the right to
pursue administrative appeal either by re-
questing an Early Referral to Appeals, or
by protesting any proposed deficiency re-
lated to the issue.
7. WITHDRAWAL FROM THE PFA
PROCESS
Withdrawal by the taxpayer or the
LMSB Industry Director. At any time
prior to the execution of the PFA by the
LMSB Industry Director, either the tax-
payer or the LMSB Industry Director may
withdraw all or part of the request for a
PFA from consideration. The withdrawal
must be communicated in writing.
Effect of withdrawal.Notwithstanding
the withdrawal by either the taxpayer or
the LMSB Industry Director of any or all
of the issues in the request for a PFA, the
taxpayer’s agreement that the inspection
of records and testimony under the PFA
procedures will not preclude or impede
(under § 7605(b) or any administrative
provisions adopted by the IRS) a later ex-
amination of a return or inspection of
records with respect to any tax year
needed to resolve the issue(s) in the re-
quest for a PFA, and that the IRS need not
comply with any applicable procedural
restrictions (such as providing notice
under § 7605(b)) before beginning such
examination or inspection, will remain ef-
fective.
Availability of Early Referral to Ap-
peals. If the taxpayer and the IRS are un-
able to reach either a PFA or an AIR
agreement, the possibility of forwarding
the disputed issues to Appeals may be
available under the Early Referral to Ap-
peals procedures set forth in Rev. Proc.
99-28, 1999-29 I.R.B. 109.
8. FORM AND CONTENT OF A PRE-
FILING AGREEMENT
A PFA between the taxpayer and the IRS
is a closing agreement under § 7121. See
Rev. Proc. 68-16, 1968-1 C.B. 770, for
further information on the form and con-
tent of a closing agreement. A PFA must
comply with the requirements of Rev.
Proc. 68-16. The PFA will be prepared by
the taxpayer and the examination team
with assistance, as necessary, from the
PFA Program Manager, the Office of
Chief Counsel, or other IRS personnel.
9. DISCLOSURE
PFAs are closing agreements entered into
pursuant to I.R.C. § 7121. As such, it is
the position of the IRS that both PFAs and
the information generated or received by
the IRS during the PFA process constitute
confidential return information as defined
by I.R.C. § 6103(b)(2)(A), that PFAs are
not written determinations under I.R.C. §
6110, and, accordingly, are exempt from
disclosure to the public under the Free-
dom of Information Act (FOIA). How-
ever, the issue of whether certain closing
agreements must be disclosed under the
FOIA has been the subject of recent litiga-
tion; thus far, courts addressing this issue
have agreed with the IRS position. See
Tax Analysts v. IRS, 53 F.Supp. 2d 449
(D.D.C. 1999); Tax Analysts v. IRS, 1999
U.S. Dist. LEXIS 16733 (D.D.C. Aug. 6,
1999), appeal docketed, No. 5284 (D.C.
Cir. Aug. 13, 1999).
10. MISCELLANEOUS
Record keeping requirements. No as-
pect of the PFA process will affect the
record keeping requirements imposed by
any section of the Internal Revenue Code.
Record retention. The taxpayer must
maintain a copy of the PFA and support-
ing documents, and books of account and
records sufficient to enable the IRS to ex-
amine the taxpayer’s compliance with the
PFA. These records may be specified in
the PFA itself or in separate agreements.
11. PAPERWORK REDUCTION ACT
The collection of information contained
in this notice has been reviewed and ap-
proved by the Office of Management and
Budget in accordance with the Paperwork
Reduction Act of 1995 (44 U.S.C. 3507)
under the control number 1545-1684.
An agency may not conduct or sponsor,
and a person is not required to respond to,
a collection of information unless it dis-
plays a valid OMB control number. The
collections of information in this notice
are in sections 4, 6, and 10. The informa-
tion collected under section 4 (applica-
tion) is required to provide the IRS with
the information necessary to determine
which taxpayers should be included in the
PFA pilot program. The information col-
lected under section 6 will be used to re-
solve the taxpayer’s issue and to support
any PFA entered into between the tax-
payer and the IRS. The recordkeeping re-
quirement under section 10 will be used
for tax administration. The collections of
information under sections 4 and 6 are
voluntary. Once a PFA is entered into, the
recordkeeping requirements under section
10 are mandatory. The likely respondents
are businesses or other for-profit institu-
tions.
The estimated total annual reporting
and/or recordkeeping burden is 967
hours.
The estimated annual burden per respon-
dent/recordkeeper varies from 5 hours to
126 hours, depending on whether a tax-
payer applying to the PFA pilot program
is accepted into the program. The esti-
mated annual burden for taxpayers who
apply to the PFA pilot program and are
accepted is 126 hours. The estimated an-
nual burden for taxpayers that apply to the
PFA pilot program and are not accepted is
5 hours. The estimated number of tax-
payers who apply to the PFA pilot pro-
gram and are accepted is 7. The esti-
mated number of taxpayers who apply to
the PFA pilot program and are not ac-
cepted is 17. The estimated total number
of respondents and/or recordkeepers is
24.
The estimated annual frequency of re-
sponses is on occasion.
Books or records relating to a collection
of information must be retained so long as
their contents may become material in the
administration of any internal revenue
law. Generally, tax returns and tax return
information are confidential, as required
by 26 U.S.C. 6103.
12. COMMENTS
The IRS invites interested persons to
comment on this program. Send submis-
sions to CC:DOM:CORP:R (Notice
2000-12), room 5226, Internal Revenue
2000–9 I.R.B.731February 28, 2000

Service, POB 7604, Ben Franklin Station,
Washington, DC 20044. Submissions
also may be hand delivered Monday
through Friday between the hours of 8
a.m. and 5 p.m. to CC:DOM:CORP:R
(Notice 2000-12), Courier’s Desk, Inter-
nal Revenue Service, 1111 Constitution
Avenue, NW., Washington, DC. Alterna-
tively, interested persons may submit
comments via e-mail to:
sharon.y.horn@m1.irscounsel.treas.gov
These addresses are for comments on the
pilot program. Requests by eligible tax-
payers to participate in the pilot program
should be submitted through their Case
Manager.
13. FURTHER INFORMATION
For further information regarding this No-
tice, contact John Petrella on (202) 283-
8390 (not a toll-free number).
Low-Income Housing Tax
Credit–2000 Calendar Year
Resident Population Estimates
Notice 2000-13
This notice informs (1) state and local
housing credit agencies that allocate low-
income housing tax credits under § 42 of
the Internal Revenue Code and (2) states
and other issuers of tax-exempt private
activity bonds under § 141, of the proper
population figures to be used for calculat-
ing the 2000 calendar year population-
based component of the state housing
credit ceiling (Credit Ceiling) under §
42(h)(3)(C)(i) and the 2000 calendar year
volume cap (Volume Cap) under § 146.
The population figures both for the
population-based component of the Credit
Ceiling and for the Volume Cap are deter-
mined by reference to § 146(j). That sec-
tion provides generally that determina-
tions of population for any calendar year
are made on the basis of the most recent
census estimate of the resident population
of a state (or issuing authority) released
by the Bureau of the Census before the
beginning of such calendar year.
The proper population figures for cal-
culating the Credit Ceiling and the Vol-
ume Cap for the 2000 calendar year are
the estimates of the resident population of
the states, Puerto Rico, and the insular
areas (American Samoa, Guam, Northern
Mariana Islands, and U.S. Virgin Islands)
of the United States for July 1, 1999, re-
leased by the Bureau of the Census on
December 29, 1999, in press releases
CB99-251, CB99-253, and CB99-254.
For convenience, these estimates are
reprinted below.
Resident Population Estimates
for July 1, 1999.
Alabama4,369,862
Alaska619,500
American Samoa63,781
Arizona4,778,332
Arkansas2,551,373
California33,145,121
Colorado4,056,133
Connecticut 3,282,031
Delaware753,538
D.C.519,000
Florida15,111,244
Georgia 7,788,240
Guam151,968
Hawaii1,185,497
Idaho1,251,700
Illinois 12,128,370
Indiana5,942,901
Iowa2,869,413
Kansas2,654,052
Kentucky3,960,825
Louisiana4,372,035
Maine1,253,040
Maryland5,171,634
Massachusetts6,175,169
Michigan9,863,775
Minnesota4,775,508
Mississippi2,768,619
Missouri5,468,338
Montana882,779
Nebraska1,666,028
Nevada1,809,253
New Hampshire1,201,134
New Jersey8,143,412
New Mexico1,739,844
New York18,196,601
North Carolina7,650,789
North Dakota633,666
Northern Mariana Islands69,216
Ohio11,256,654
Oklahoma3,358,044
Oregon3,316,154
Pennsylvania11,994,016
Puerto Rico3,889,507
Rhode Island990,819
South Carolina3,885,736
South Dakota733,133
Tennessee5,483,535
Texas20,044,141
U.S. Virgin Islands119,615
Utah2,129,836
Vermont593,740
Virginia6,872,912
Washington5,756,361
West Virginia1,806,928
Wisconsin5,250,446
Wyoming479,602
The principal authors of this notice are
Christopher J. Wilson of the Office of As-
sistant Chief Counsel (Passthroughs and
Special Industries) and Timothy L. Jones
of the Office of Assistant Chief Counsel
(Financial Institutions and Products). For
further information regarding this notice
contact Mr. Wilson on (202) 622-3040
(not a toll-free call).
February 28, 20007322000–9 I.R.B.

2000–9 I.R.B.733February 28, 2000
Like-kind Exchange and
Involuntary Conversion of
MACRS Property; Correction
Announcement 2000-9
This document contains a correction to
Notice 2000-4 (2000-3 I.R.B. 313), in
which an erroneous address was given for
comments to be submitted electronically.
Notice 2000-4 provides that the Internal
Revenue Service and the Treasury De-
partment intend to issue regulations under
§ 168 of the Internal Revenue Code
(MACRS property) to address the depre-
ciation of MACRS property acquired in a
§ 1031 like-kind exchange or § 1033 in-
voluntary conversion.
The corrected provision reads as fol-
lows:
Alternatively, comments may be submit-
ted electronically via:
sharon.y.horn@m1.irscounsel.treas.gov
Guidance Under Section 355(e);
Recognition of Gain on Certain
Distributions of Stock or
Securities in Connection With an
Acquisition; Hearing
Announcement 2000-10
AGENCY: Internal Revenue Service
(IRS), Treasury.
ACTION: Change of date and time of
public hearing.
SUMMARY: This document contains a no-
tice of date and time change of a public
hearing on proposed regulations relating to
recognition of gain on certain distributions
of stock or securities of a controlled corpo-
ration in connection with an acquisition.
DATES: The public hearing originally
scheduled for Wednesday, January 26,
2000, is rescheduled for Thursday, March
2, 2000, at 10 a.m. The due date for out-
lines of topics to be discussed at the hear-
ing was January 5, 2000.
ADDRESSES: The public hearing is
being held in room 2615, Internal Rev-
enue Building, 1111 Constitution Avenue,
NW., Washington, DC. Due to building
security procedures, visitors must enter at
the 10th Street entrance, located between
Constitution and Pennsylvania Avenues,
NW. In addition, all visitors must present
photo identification to enter the building.
FOR FURTHER INFORMATION CON-
TACT: Concerning the hearing, and/or to
be placed on the building access list to at-
tend the hearing LaNita VanDyke, (202)
622-7190 (not a toll-free number).
SUPPLEMENTARY INFORMATION:
The subject of the public hearing is
proposed regulations (REG-116733-98,
1999-36 I.R.B. 392) that was published in
the Federal Registeron Thursday, Au-
gust 24, 1999 (64 FR 46155).
The rules of 26 CFR 601.601(a)(3)
apply to the hearing.
A period of 10 minutes is allotted to
each person for presenting oral com-
ments.
After the deadline for receiving out-
lines has passed, the IRS will prepare an
agenda containing the schedule of speak-
ers. Copies of the agenda will be made
available, free of charge, at the hearing.
Because of access restrictions, the IRS
will not admit visitors beyond the immedi-
ate entrance area more than 15 minutes be-
fore the hearing starts. For information
about having your name placed on the
building access list to attend the hearing,
see the “FOR FURTHER INFORMATION
CONTACT” section of this document.
Cynthia E. Grigsby,
Chief, Regulations Unit
Assistant Chief Counsel (Corporate).
Part IV. Items of General Interest

February 28, 2000i2000–9 I.R.B.
Revenue rulings and revenue procedures
(hereinafter referred to as “rulings”) that
have an effect on previous rulings use the
following defined terms to describe the
effect:
Amplified describes a situation where
no change is being made in a prior pub-
lished position, but the prior position is
being extended to apply to a variation of
the fact situation set forth therein. Thus,
if an earlier ruling held that a principle
applied to A, and the new ruling holds
that the same principle also applies to B,
the earlier ruling is amplified. (Compare
with modified, below).
Clarified is used in those instances
where the language in a prior ruling is
being made clear because the language
has caused, or may cause, some confu-
sion. It is not used where a position in a
prior ruling is being changed.
Distinguisheddescribes a situation
where a ruling mentions a previously
published ruling and points out an essen-
tial difference between them.
Modified is used where the substance
of a previously published position is
being changed. Thus, if a prior ruling
held that a principle applied to A but not
to B, and the new ruling holds that it ap-
plies to both A and B, the prior ruling is
modified because it corrects a published
position. (Compare with amplified and
clarified, above).
Obsoleted describes a previously pub-
lished ruling that is not considered deter-
minative with respect to future transac-
tions. This term is most commonly used
in a ruling that lists previously published
rulings that are obsoleted because of
changes in law or regulations. A ruling
may also be obsoleted because the sub-
stance has been included in regulations
subsequently adopted.
Revoked describes situations where the
position in the previously published rul-
ing is not correct and the correct position
is being stated in the new ruling.
Superseded describes a situation where
the new ruling does nothing more than
restate the substance and situation of a
previously published ruling (or rulings).
Thus, the term is used to republish under
the 1986 Code and regulations the same
position published under the 1939 Code
and regulations. The term is also used
when it is desired to republish in a single
ruling a series of situations, names, etc.,
that were previously published over a pe-
riod of time in separate rulings. If the
new ruling does more than restate the
substance of a prior ruling, a combination
of terms is used. For example, modified
and superseded describes a situation
where the substance of a previously pub-
lished ruling is being changed in part and
is continued without change in part and it
is desired to restate the valid portion of
the previously published ruling in a new
ruling that is self contained. In this case
the previously published ruling is first
modified and then, as modified, is super-
seded.
Supplemented is used in situations in
which a list, such as a list of the names of
countries, is published in a ruling and
that list is expanded by adding further
names in subsequent rulings. After the
original ruling has been supplemented
several times, a new ruling may be pub-
lished that includes the list in the original
ruling and the additions, and supersedes
all prior rulings in the series.
Suspended is used in rare situations to
show that the previous published rulings
will not be applied pending some future
action such as the issuance of new or
amended regulations, the outcome of
cases in litigation, or the outcome of a
Service study.
Abbreviations
The following abbreviations in current use and for-
merly used will appear in material published in the
Bulletin.
A—Individual.
Acq.—Acquiescence.
B—Individual.
BE—Beneficiary.
BK—Bank.
B.T.A.—Board of Tax Appeals.
C.—Individual.
C.B.—Cumulative Bulletin.
CFR—Code of Federal Regulations.
CI—City.
COOP—Cooperative.
Ct.D.—Court Decision.
CY—County.
D—Decedent.
DC—Dummy Corporation.
DE—Donee.
Del. Order—Delegation Order.
DISC—Domestic International Sales Corporation.
DR—Donor.
E—Estate.
EE—Employee.
E.O.—Executive Order.
ER—Employer.
ERISA—Employee Retirement Income Security Act.
EX—Executor.
F—Fiduciary.
FC—Foreign Country.
FICA—Federal Insurance Contribution Act.
FISC—Foreign International Sales Company.
FPH—Foreign Personal Holding Company.
F.R.—Federal Register.
FUTA—Federal Unemployment Tax Act.
FX—Foreign Corporation.
G.C.M.—Chief Counsel’s Memorandum.
GE—Grantee.
GP—General Partner.
GR—Grantor.
IC—Insurance Company.
I.R.B.—Internal Revenue Bulletin.
LE—Lessee.
LP—Limited Partner.
LR—Lessor.
M—Minor.
Nonacq.—Nonacquiescence.
O—Organization.
P—Parent Corporation.
PHC—Personal Holding Company.
PO—Possession of the U.S.
PR—Partner.
PRS—Partnership.
PTE—Prohibited Transaction Exemption.
Pub. L.—Public Law.
REIT—Real Estate Investment Trust.
Rev. Proc.—Revenue Procedure.
Rev. Rul.—Revenue Ruling.
S—Subsidiary.
S.P.R.—Statements of 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

2000–9 I.R.B.iiFebruary 28, 2000
Numerical Finding List
1
Bulletins 2000–1 through 2000–8
Announcements:
2000–1, 2000–2 I.R.B. 294
2000–2, 2000–2 I.R.B. 295
2000–3, 2000–2 I.R.B. 296
2000–4, 2000–3 I.R.B. 317
2000–5, 2000–4 I.R.B. 427
2000–6, 2000–4 I.R.B. 428
2000–7, 2000–6 I.R.B. 586
2000–8, 2000–6 I.R.B. 586
Notices:
2000–1, 2000–2 I.R.B. 288
2000–3, 2000–4 I.R.B. 413
2000–4, 2000–3 I.R.B. 313
2000–5, 2000–3 I.R.B. 314
2000–6, 2000–3 I.R.B. 315
2000–7, 2000–4 I.R.B. 419
2000–8, 2000–4 I.R.B. 420
2000–9, 2000–5 I.R.B. 449
2000–10, 2000–5 I.R.B. 451
2000–11, 2000–6 I.R.B. 572
Proposed Regulations:
REG–208280–86, 2000–8 I.R.B. 654
REG–209135–88, 2000–8 I.R.B. 681
REG–208254–90, 2000–6 I.R.B. 577
REG–100276–97, 2000–8 I.R.B. 682
REG–101492–98, 2000–3 I.R.B. 326
REG–106012–98, 2000–2 I.R.B. 290
REG–103831–99, 2000–5 I.R.B. 452
REG–103882–99, 2000–8 I.R.B. 706
REG–105089–99, 2000–6 I.R.B. 580
REG–105279–99, 2000–8 I.R.B. 707
REG–105606–99, 2000–4 I.R.B. 421
REG–111119–99, 2000–5 I.R.B. 455
REG–113572–99, 2000–7 I.R.B. 624
REG–116048–99, 2000–6 I.R.B. 584
REG–116567–99, 2000–5 I.R.B. 463
REG–116704–99, 2000–3 I.R.B. 325
REG–100163–00, 2000–7 I.R.B. 633
Revenue Procedures:
2000–1, 2000–1 I.R.B. 4
2000–2, 2000–1 I.R.B. 73
2000–3, 2000–1 I.R.B. 103
2000–4, 2000–1 I.R.B. 115
2000–5, 2000–1 I.R.B. 158
2000–6, 2000–1 I.R.B. 187
2000–7, 2000–1 I.R.B. 227
2000–8, 2000–1 I.R.B. 230
2000–9, 2000–2 I.R.B. 280
2000–10, 2000–2 I.R.B. 287
2000–11, 2000–3 I.R.B. 309
2000–12, 2000–4 I.R.B. 387
2000–13, 2000–6 I.R.B. 515
2000–15, 2000–5 I.R.B. 447
2000–16, 2000–6 I.R.B. 518
2000–20, 2000–6 I.R.B. 553
Revenue Rulings:
2000–1, 2000–2 I.R.B. 250
2000–2, 2000–3 I.R.B. 305
2000–3, 2000–3 I.R.B. 297
Revenue Rulings continued:
2000–4, 2000–4 I.R.B. 331
2000–5, 2000–5 I.R.B. 436
2000–6, 2000–6 I.R.B. 512
2000–8, 2000–7 I.R.B. 617
2000–9, 2000–6 I.R.B. 497
2000–10, 2000–8 I.R.B. 643
Treasury Decisions:
8849, 2000–2 I.R.B. 245
8850, 2000–2 I.R.B. 265
8851, 2000–2 I.R.B. 275
8852, 2000–2 I.R.B.253
8853, 2000–4 I.R.B.377
8854, 2000–3 I.R.B.306
8855, 2000–4 I.R.B.374
8856, 2000–3 I.R.B.298
8857, 2000–4 I.R.B.365
8858, 2000–4 I.R.B.332
8859, 2000–5 I.R.B.429
8860, 2000–5 I.R.B.437
8861, 2000–5 I.R.B.441
8862, 2000–6 I.R.B.466
8863, 2000–6 I.R.B.488
8864, 2000–7 I.R.B.614
8865, 2000–7 I.R.B.589
8866, 2000–6 I.R.B.495
8867, 2000–7 I.R.B.620
8868, 2000–6 I.R.B.491
8869, 2000–6 I.R.B.498
8870, 2000–8 I.R.B.647
8871, 2000–8 I.R.B.641
8872, 2000–8 I.R.B.639
8874, 2000–8 I.R.B.644
1
A cumulative list of all revenue rulings, revenue
procedures, Treasury decisions, etc., published in
Internal Revenue Bulletins 1999–27 through
1999–52 is in Internal Revenue Bulletin 2000–1,
dated January 3, 2000.

February 28, 2000iii2000–9 I.R.B.
Finding List of Current Actions
on Previously Published Items
1
Bulletins 2000–1 through 2000–8
Announcements:
99–50
Modified by
Rev. Proc. 2000–20, 2000–6 I.R.B. 553
Notices:
88–125
Obsoleted by
T.D. 8870, 2000–8 I.R.B. 647
92–48
Obsoleted by
Notice 2000–11, 2000–6 I.R.B. 572
97–19
Modified by
Rev. Proc. 2000–1, 2000–1 I.R.B. 4
98–22
Obsoleted by
T.D. 8870, 2000–8 I.R.B. 647
98–52
Modified by
Notice 2000–3, 2000–4 I.R.B. 413
98–61
Modified and superseded by
Rev. Proc. 2000–15, 2000–5 I.R.B. 447
99–8
Obsoleted by
Rev. Proc. 2000–12, 2000–4 I.R.B. 387
Revenue Procedures:
80–18
Modified by
Rev. Proc. 2000–13, 2000–6 I.R.B. 515
89–9
Superseded by
Rev. Proc. 2000–20, 2000–6 I.R.B. 553
89–13
Superseded by
Rev. Proc. 2000–20, 2000–6 I.R.B. 553
90–21
Superseded by
Rev. Proc. 2000–20, 2000–6 I.R.B. 553
91–66
Superseded by
Rev. Proc. 2000–20, 2000–6 I.R.B. 553
92–13
Modified, amplified, and superseded by
Rev. Proc. 2000–11, 2000–3 I.R.B. 309
92–13A
Modified, amplified, and superseded by
Rev. Proc. 2000–11, 2000–3 I.R.B. 309
92–41
Superseded by
Rev. Proc. 2000–20, 2000–6 I.R.B. 553
93–9
Superseded by
Rev. Proc. 2000–20, 2000–6 I.R.B. 553
Revenue Procedures—Continued:
93–10
Superseded by
Rev. Proc. 2000–20, 2000–6 I.R.B. 553
94–12
Modified, amplified, and superseded by
Rev. Proc. 2000–11, 2000–3 I.R.B. 309
94–42
Superseded by
Rev. Proc. 2000–20, 2000–6 I.R.B. 553
96–13
Modified by
Rev. Proc. 2000–1, 2000–1 I.R.B. 4
98–22
Modified and superseded by
Rev. Proc. 2000–16, 2000–6 I.R.B. 518
98–27
Superseded by
Rev. Proc. 2000–12, 2000–4 I.R.B. 387
98–64
Superseded by
Rev. Proc. 2000–9, 2000–2 I.R.B. 280
99–1
Superseded by
Rev. Proc. 2000–1, 2000–1 I.R.B. 4
99–2
Superseded by
Rev. Proc. 2000–2, 2000–1 I.R.B. 73
99–3
Superseded by
Rev. Proc. 2000–3, 2000–1 I.R.B. 103
99–4
Superseded by
Rev. Proc. 2000–4, 2000–1 I.R.B. 115
99–5
Superseded by
Rev. Proc. 2000–5, 2000–1 I.R.B. 158
99–6
Superseded by
Rev. Proc. 2000–6, 2000–1 I.R.B. 187
99–7
Superseded by
Rev. Proc. 2000–7, 2000–1 I.R.B. 227
99–8
Superseded by
Rev. Proc. 2000–8, 2000–1 I.R.B. 230
99–13
Modified and superseded by
Rev. Proc. 2000–16, 2000–6 I.R.B. 518
99–31
Modified and superseded by
Rev. Proc. 2000–16, 2000–6 I.R.B. 518
99–49
Modified and amplified by both
Rev. Rul. 2000–4, 2000–4 I.R.B. 331 and
Notice 2000–4, 2000–3 I.R.B. 313
99–51
Superseded by
Rev. Proc. 2000–3, 2000–1 I.R.B. 103
Revenue Procedures—Continued:
2000–6
Modified by
Rev. Proc. 2000–20, 2000–6 I.R.B. 553
2000–8
Modified by both
Rev. Proc. 2000–16, 2000–6 I.R.B. 518 and
Rev. Proc. 2000–20, 2000–6 I.R.B. 553
Revenue Rulings:
88–36
Modified by
Rev. Proc. 2000–6, 2000–6 I.R.B. 512
98–30
Amplified and superseded by
Rev. Rul. 2000–8, 2000–7, I.R.B. 617
Treasury Decisions:
8734
Modified by
T.D. 8856, 2000–3, I.R.B. 298
8804
Modified by
T.D. 8856, 2000–3, I.R.B. 298
1
A cumulative list of current actions on previously
published items in Internal Revenue Bulletins
1999–27 through 1999–52 is in Internal Revenue
Bulletin 2000–1, dated January 3, 2000.

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