Internal Revenue Bulletin 1996-35 (PDF rendition): IRS Revenue Rulings

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INCOME TAX
Rev. Rul. 96–42, page 4.
Mutual life insurance companies; differential earn-
ings rate.The differential earnings rate for 1995 and
the recomputed differential earnings rate for 1994 are
set forth for use by mutual life insurance companies to
compute their income tax liabilities for 1995.
Notice 96–41, page 6.
1996 section 43 inflation adjustment factor.This
notice announces the inflation adjustment factor to be
used in determining the enhanced oil recovery credit for
tax years beginning in the 1996 calendar year.
Notice 96–42, page 6.
1996 marginal production rates.This notice an-
nounces the applicable percentage to be used in deter-
mining percentage depletion for marginal properties for
the 1996 calendar year.
EXEMPT ORGANIZATIONS
Announcement 96–80, page 16.
A list is given of organizations now classified as private
foundations.
ADMINISTRATIVE
Rev. Proc. 96–43, page 6.
Section 355 ‘‘No Rule.’’This procedure amplifies the
‘‘No Rule’’ Rev. Proc. 96–3, 1996–1 I.R.B. 82, to
include certain transactions under section 355 of the
Code.
Rev. Proc. 96–44, page 7.
Insurance companies; loss reserves; discounting un-
paid losses.The loss payment patterns and discount
factors are set forth for the 1996 accident year. These
factors will be used for computing discounted unpaid
losses under section 846 of the Code.
Rev. Proc. 96–45, page 12.
Insurance companies; discounting estimated salvage
recoverable.The salvage discount factors are set forth
for the 1996 accident year. These factors will be used
for computing estimated salvage recoverable under sec-
tion 832 of the Code.
Announcement 96–77, page 15.
Backup withholding; substitute Form W–9.The effec-
tive date of Rev. Proc. 96–26, 1996–8 I.R.B. 22, is
extended for certain payors who must secure regulatory
approval of changes to their substitute Forms W–9.
Announcement 96–78, page 15.
T.D. 8670, 1996–24 I.R.B. 6, relating to qualified cost
sharing arrangements, is corrected.
Announcement 96–79, page 15.
T.D. 8671, 1996–26 I.R.B. 8, relating to requirements
for furnishing a taxpayer identifying number on returns,
statements, and other documents, is corrected.
Finding Lists begin on page 17.
Bulletin No. 1996–35
August 26, 1996
HIGHLIGHTS
OF THIS ISSUE
These synopses are intended only as aids to the reader in
identifying the subject matter covered. They may not be relied
upon as authoritative interpretations.

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

Introduction
The Internal Revenue Bulletin is the authoritative instru-
ment of the Commissioner of Internal Revenue for
announcing official rulings and procedures of the Inter-
nal Revenue Service and for publishing Treasury Deci-
sions, Executive Orders, Tax Conventions, legislation,
court decisions, and other items of general interest. It is
published weekly and may be obtained from the Superin-
tendent of Documents on a subscription basis. Bulletin
contents of a permanent nature are consolidated semi-
annually into Cumulative Bulletins, which are sold on a
single-copy basis.
It is the policy of the Service to publish in the Bulletin all
substantive rulings necessary to promote a uniform
application of the tax laws, including all rulings that
supersede, revoke, modify, or amend any of those
previously published in the Bulletin. All published rulings
apply retroactively unless otherwise indicated. Proce-
dures relating solely to matters of internal management
are not published; however, statements of internal
practices and procedures that affect the rights and
duties of taxpayers are published.
Revenue rulings represent the conclusions of the Ser-
vice 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 unwar-
ranted invasions of privacy and to comply with statutory
requirements.
Rulings and procedures reported in the Bulletin do not
have the force and effect of Treasury Department
Regulations, but they may be used as precedents.
Unpublished rulings will not be relied on, used, or cited
as precedents by Service personnel in the disposition of
other cases. In applying published rulings and proce-
dures, the effect of subsequent legislation, regulations,
court decisions, rulings, and procedures must be consid-
ered, and Service personnel and others concerned are
cautioned against reaching the same conclusions in
other cases unless the facts and circumstances are
substantially the same.
The Bulletin is divided into four parts as follows:
Part I.—1986 Code.
This part includes rulings and decisions based on
provisions of the Internal Revenue Code of 1986.
Part II.—Treaties and Tax Legislation.
This part is divided into two subparts as follows:
Subpart A, Tax Conventions, and Subpart B, Legislation
and Related Committee Reports.
Part III.—Administrative, Procedural, and Miscellaneous.
To the extent practicable, pertinent cross references to
these subjects are contained in the other Parts and
Subparts. Also included in this part are Bank Secrecy
Act Administrative Rulings. Bank Secrecy Act Administra-
tive Rulings are issued by the Department of the
Treasury’s Office of the Assistant Secretary (Enforce-
ment).
Part IV.—Items of General Interest.
With the exception of the Notice of Proposed Rulemak-
ing and the disbarment and suspension list included in
this part, none of these announcements are consoli-
dated in the Cumulative Bulletins.
The first Bulletin for each month includes an index for
the matters published during the preceding month.
These monthly indexes are cumulated on a quarterly and
semiannual basis, and are published in the first Bulletin
of the succeeding quarterly and semi-annual period,
respectively.
The contents of this publication are not copyrighted and may be reprinted freely. A citation of the Internal Revenue Bulletin as the source would be appropriate.
For sale by the Superintendent of Documents U.S. Government Printing Office, Washington, D.C. 20402.
3

Part I. Rulings and Decisions Under the Internal Revenue Code of 1986
Section 355.—Distribution of Stock
and Securities of a Controlled
Corporation
26 CFR 1.355–3: Active conduct of a trade or
business.
The revenue procedure amplifies the ‘‘No Rule’’
revenue procedure, Rev. Proc. 96–3, 1996–1 I.R.B.
82, to include certain transactions under § 355 of
the Code. See Rev. Proc. 96–43, page 6.
Section 809.—Reduction in Certain
Deductions of Mutual Life
Insurance Companies
26 CFR 1.809–9: Computation of the differential
earnings rate and the recomputed differential
earnings rate.
Mutual life insurance companies;
differential earnings rate.The differen-
tial earnings rate for 1995 and the
recomputed differential earnings rate for
1994 are set forth for use by mutual life
insurance companies to compute their
income tax liabilities for 1995.
Rev. Rul. 96–42
This revenue ruling contains the dif-
ferential earnings rate for 1995 and the
recomputed differential earnings rate for
1994. Under § 809 of the Internal Rev-
enue Code, mutual life insurance com-
panies use these rates in computing their
Federal income tax liability for taxable
years beginning in 1995. This revenue
ruling also contains the figures on which
the determinations of these rates are
based. Notice 96–15, 1996–13 I.R.B. 19,
contained tentative determinations of
these rates.
Section 809(a) provides that, in the
case of any mutual life insurance com-
pany, the amount of the deduction al-
lowable under § 808 for policyholder
dividends is reduced (but not below
zero) by the ‘‘differential earnings
amount.’’ Any excess of the differential
earnings amount over the amount of the
deduction allowable under § 808 is
taken into account as a reduction in the
closing balance of reserves under sub-
sections (a) and (b) of § 807. The
‘‘differential earnings amount’’ for any
taxable year is the amount equal to the
product of (a) the life insurance compa-
ny’s average equity base for the taxable
year multiplied by (b) the ‘‘differential
earnings rate’’ for that taxable year. The
‘‘differential earnings rate’’ for the tax-
able year is the excess of (a) the
‘‘imputed earnings rate’’ for the taxable
year over (b) the ‘‘average mutual earn-
ings rate’’ for the second calendar year
preceding the calendar year in which the
taxable year begins. The ‘‘imputed earn-
ings rate’’ for any taxable year is the
amount that bears the same ratio to 16.5
percent as the ‘‘current stock earnings
rate’’ for the taxable year bears to the
‘‘base period stock earnings rate.’’
Section 809(f) provides that, in the
case of any mutual life insurance com-
pany, if the ‘‘recomputed differential
earnings amount’’ for any taxable year
exceeds the differential earnings amount
for that taxable year, the excess is
included in life insurance gross income
for the succeeding taxable year. If the
differential earnings amount for any tax-
able year exceeds the recomputed differ-
ential earnings amount for that taxable
year, the excess is allowed as a life
insurance deduction for the succeeding
taxable year. The ‘‘recomputed differen-
tial earnings amount’’ for any taxable
year is an amount calculated in the same
manner as the differential earnings
amount for that taxable year, except that
the average mutual earnings rate for the
calendar year in which the taxable year
begins is substituted for the average
mutual earnings rate for the second
calendar year preceding the calendar
year in which the taxable year begins.
The stock earnings rates and mutual
earnings rates taken into account under
§ 809 generally are determined by di-
viding statement gain from operations
by the average equity base. For this
purpose, the term ‘‘statement gain from
operations’’ means ‘‘the net gain or loss
from operations required to be set forth
in the annual statement, determined
without regard to Federal income taxes,
and . . . properly adjusted for realized
capital gains and losses. . . .’’ See
§ 809(g)(1). The term ‘‘equity base’’ is
defined as an amount determined in the
manner prescribed by regulations equal
to surplus and capital increased by the
amount of nonadmitted financial assets,
the excess of statutory reserves over the
amount of tax reserves, the sum of
certain other reserves, and 50 percent of
any policyholder dividends (or other
similar liability) payable in the follow-
ing taxable year. See § 809(b)(2), (3),
(4), (5) and (6). Section 1.809–10 of the
Income Tax Regulations provides that
the equity base includes both the asset
valuation reserve and the interest main-
tenance reserve for taxable years ending
after December 31, 1991.
Section 1.809–9(a) of the regulations
provides that neither the differential
earnings rate under § 809(c) nor the
recomputed differential earnings rate
that is used in computing the recom-
puted differential earnings amount under
§ 809(f)(3) may be less than zero.
For purposes of § 809, the differen-
tial earnings rate for 1995 and the rate
used to calculate the recomputed differ-
ential earnings amount for 1994 (the
recomputed differential earnings rate for
1994), and the figures on which these
two rates are based are set forth in
Table 1.
Rev. Rul. 96–42 TABLE 1
Determination of Rates To Be Used
For Taxable Years Beginning in 1995
Differential earnings rate for
1995. . . . . . . . . . . . . . . . . . . 0
Recomputed differential earn-
ings rate for 1994 . . . . . . . . 5.887
Imputed earnings rate for
1994. . . . . . . . . . . . . . . . . . . 15.109
Imputed earnings rate for
1995. . . . . . . . . . . . . . . . . . . 12.625
Base period stock earnings
rate. . . . . . . . . . . . . . . . . . . . 18.221
Current stock earnings rate
for 1995. . . . . . . . . . . . . . . . 13.942
Stock earnings rate for 1992 . 7.004
Stock earnings rate for 1993 . 23.385
Stock earnings rate for 1994 . 11.437
Average mutual earnings rate
for 1993. . . . . . . . . . . . . . . . 18.406
Average mutual earnings rate
for 1994. . . . . . . . . . . . . . . . 9.222
DRAFTING INFORMATION
The principal author of this revenue
ruling is Katherine A. Hossofsky of the
Assistant Chief Counsel (Financial Insti-
tutions and Products). For further infor-
mation regarding this revenue ruling
contact Ms. Hossofsky on (202) 622-
3477 (not a toll-free number).
Section 832.—Insurance Company
Taxable Income
26 CFR 1.832–4: Gross Income.
The salvage discount factors are set forth for the
1996 accident year. These factors will be used for
computing estimated salvage recoverable for pur-
poses of section 832 of the Code. See Rev. Proc.
96–45, page 12.
4

Section 846.—Discounted Unpaid
Losses Defined
26 CFR 1.846–1: Application of discount factors.
The loss payment patterns and discount factors
are set forth for the 1996 accident year. These
factors will be used for computing discounted
unpaid losses under section 846 of the Code. See
Rev. Proc. 96–44, page 7.
The salvage discount factors are set forth for the
1996 accident year. These factors will be used for
computing estimated salvage recoverable for pur-
poses of section 832 of the Code. See Rev. Proc.
96–45, page 12.
5

Part III. Administrative, Procedural, and Miscellaneous
1996 Section 43 Inflation
Adjustment
Notice 96–41
Section 43(b)(3)(B) of the Internal
Revenue Code requires the Secretary to
publish an inflation adjustment factor.
The enhanced oil recovery credit under
§ 43 for any taxable year is reduced if
the ‘‘reference price,’’ determined under
§ 29(d)(2)(C), for the calendar year pre-
ceding the calendar year in which the
taxable year begins is greater than $28
multiplied by the inflation adjustment
factor for that year.
The term ‘‘inflation adjustment fac-
tor’’ means, with respect to any calendar
year, a fraction the numerator of which
is the GNP implicit price deflator for the
preceding calendar year and the denomi-
nator of which is the GNP implicit price
deflator for 1990.
Because the reference price for the
1995 calendar year ($14.26) does not
exceed $28 multiplied by the inflation
adjustment factor for the 1996 calendar
year, the enhanced oil recovery credit
for qualified costs paid or incurred in
1996 is determined without regard to the
phase-out for crude oil price increases.
Table 1 contains the GNP implicit
price deflator used for the 1996 calendar
year, as well the previously published
GNP implicit price deflators used for the
1991 through 1995 calendar years.
Notice 96–41 TABLE 1
GNP IMPLICIT PRICE DEFLATORS
Calendar
Year
GNP Implicit
Price Deflator
1990112.9 (used for 1991)
1991117.0 (used for 1992)
1992120.9 (used for 1993)
1993124.1 (used for 1994)
1994126.0 (used for 1995)
1995107.5 (used for 1996)*
*Beginning in 1995, the GNP im-
plict price deflator was rebased rela-
tive to 1992. The 1990 GNP implicit
price deflator used to compute the
1996 § 43 inflation adjustment fac-
tor is 93.6
Table 2 contains the inflation adjust-
ment factor and the phase-out amount
for taxable years beginning in the 1996
calendar year as well as the previously
published inflation adjustment factors
and phase-out amounts for the 1991
through 1995 calendar years.
Notice 96–41 TABLE 2
INFLATION ADJUSTMENT
FACTORS AND
PHASE-OUT AMOUNTS
Calendar
Year
Inflation
Adjustment
Factor
Phase-out
Amount
19911.00000
19921.03630
19931.07080
19941.09920
19951.11600
19961.14850
DRAFTING INFORMATION
The principal author of this notice is
Brenda M. Stewart of the Office of
Assistant Chief Counsel (Passthroughs
and Special Industries). For further in-
formation regarding this notice contact
Ms. Stewart on (202) 622–3120 (not a
toll-free call).
1996 Marginal Production Rates
Notice 96–42
Section 613A(c)(6)(C) of the Internal
Revenue Code defines the term ‘‘appli-
cable percentage’’ for purposes of deter-
mining percentage depletion for oil and
gas produced from marginal properties.
The applicable percentage is the per-
centage (not greater than 25 percent)
equal to the sum of 15 percent, plus one
percentage point for each whole dollar
by which $20 exceeds the reference
price (determined under § 29(d)(2)(C))
for crude oil for the calendar year
preceding the calendar year in which the
taxable year begins. The reference price
determined under § 29(d)(2)(C) for the
1995 calendar year is $14.26.
Table 1 contains the applicable per-
centages for marginal production for
taxable years beginning in calendar
years 1991 through 1996.
Notice 96–42 TABLE 1
APPLICABLE PERCENTAGE FOR
MARGINAL PRODUCTION
Calendar Year
Applicable
Percentage
199115 percent
199218 percent
199319 percent
199420 percent
199521 percent
199620 percent
DRAFTING INFORMATION
The principal author of this notice is
Brenda M. Stewart of the Office of
Assistant Chief Counsel (Passthroughs
and Special Industries). For further in-
formation regarding this notice contact
Ms. Stewart on (202) 622–3120 (not a
toll-free call).
26 CFR 601.201: Rulings and determination let-
ters.
(Also §§ 355; 1.355–3.)
Rev. Proc. 96–43
SECTION 1. PURPOSE
This revenue procedure amplifies Rev.
Proc. 96–3, 1996–1 I.R.B. 82, which
sets forth the areas of the Internal
Revenue Code under the jurisdiction of
the Associate Chief Counsel (Domestic)
and the Associate Chief Counsel (Em-
ployee Benefits and Exempt Organiza-
tions) relating to issues on which the
Internal Revenue Service will not issue
advance rulings or determination letters.
SECTION 2. BACKGROUND
Section 4 of Rev. Proc. 96–3 sets
forth those areas in which rulings or
determination letters will not ordinarily
be issued. Section 355(a) of the Internal
Revenue Code applies to distributions of
stock or securities of a corporation con-
trolled by the distributing corporation if
each of the corporations is engaged in
the active conduct of a trade or busi-
ness. Section 355(b) provides that a
corporation is engaged in such conduct
if, among other things, it is directly
engaged in the active conduct of a trade
or business, or substantially all of its
assets consist of stock and securities of
a corporation controlled by it (immedi-
ately after the transaction) which is so
engaged.
SECTION 3. PROCEDURE
Rev. Proc. 96–3 is amplified by add-
ing to section 4 the following:
Section 355.—Distribution of Stock
and Securities of a Controlled Corpora-
tion.—Whether a distribution of stock or
securities is described in § 355(a)(1)
when the gross assets of the trades or
businesses relied on to satisfy the active
trade or business requirement of
§ 355(b) will have a fair market value
that is less than 5 percent of the total
fair market value of the gross assets of
the corporation directly conducting the
6

trades or businesses. The Service may
rule that the trades or businesses satisfy
the active trade or business requirement
of § 355(b) if it can be established that,
based upon all relevant facts and cir-
cumstances, the trades or businesses are
not de minimis compared with the other
assets or activities of the corporation
and its subsidiaries.
SECTION 4. EFFECTIVE DATE
This revenue procedure will apply to
all ruling requests postmarked or, if not
mailed, received on or after August 8,
1996.
FURTHER INFORMATION
For further information regarding this
revenue procedure contact Robert
Hawkes of the Office of Assistant Chief
Counsel (Corporate) at (202) 622–7530
(not a toll-free call).
26 CFR 601.201: Rulings and determination let-
ters
(Also Part I, Sections 846; 1.846–1.)
Rev. Proc. 96–44
SECTION 1. PURPOSE
This revenue procedure prescribes the
loss payment patterns and discount fac-
tors for the 1996 accident year. These
factors will be used for computing dis-
counted unpaid losses under § 846 of
the Internal Revenue Code. See Rev.
Proc. 92–47, 1992–1 C.B. 980, for back-
ground concerning the loss payment
patterns and application of the discount
factors.
SEC. 2. SCOPE
This revenue procedure applies to any
taxpayer that is required to discount its
unpaid losses under § 846 for a line of
business using discount factors pub-
lished by the Secretary.
SEC. 3. TABLES OF DISCOUNT
FACTORS
.01 The following tables present
separately for each line of business the
discount factors under § 846 for acci-
dent year 1996. All the discount factors
presented in this section were deter-
mined using the applicable interest rate
under § 846(c) for 1996, which is 6.63
percent, and by assuming all loss pay-
ments occur in the middle of the calen-
dar year.
.02 If the groupings of individual
lines of business on the annual state-
ment changes, taxpayers must discount
the unpaid losses on the resulting lines
of business in accordance with the dis-
counting patterns that would have ap-
plied to those unpaid losses based on
their classification on the 1990 annual
statement.
.03 Tables
Tables of Discount Factors
Section 846
- 1996 -
Interest rate: 6.63 percent
Homeowners/Farmowners
Tax Year
Cumulative
Losses Paid
(%)
Estimated Losses
Paid Each Year
(%)
Discounted
Unpaid Losses at
Year End
(%)
Unpaid Losses
at Year End
(%)
Discount
Factor
(%)
AY+ 066.875366.875330.632533.124792.4763
AY+ 190.463323.58808.30609.536787.0955
AY+ 293.39142.92815.83316.608688.2656
AY+ 395.70812.31673.82764.291989.1817
AY+ 497.40811.70002.32592.591989.7376
AY+ 598.62711.21901.22141.372988.9620
AY+ 699.15280.52570.75950.847289.6468
AY+ 799.54250.38970.40740.457589.0559
AY+ 899.73180.18930.23900.268289.1020
AY+ 999.80630.07450.17790.193791.8346
AY+10N/A0.07450.11270.119294.5850
AY+11N/A0.07450.04320.044796.8412
AY+12N/A0.04470.00000.0000N/A
Private Passenger Auto Liability/Medical
Tax Year
Cumulative
Losses Paid
(%)
Estimated Losses
Paid Each Year
(%)
Discounted
Unpaid Losses at
Year End
(%)
Unpaid Losses
at Year End
(%)
Discount
Factor
(%)
AY+ 034.761734.761758.901665.238390.2868
AY+ 166.296331.534630.243533.703789.7336
AY+ 281.214014.917716.844418.786089.6646
AY+ 389.82728.61329.067110.172889.1303
AY+ 494.45494.62774.88955.545188.1776
AY+ 596.87882.42392.71073.121286.8495
Continued on next page
7

Tax Year
Cumulative
Losses Paid
(%)
Estimated Losses
Paid Each Year
(%)
Discounted
Unpaid Losses at
Year End
(%)
Unpaid Losses
at Year End
(%)
Discount
Factor
(%)
AY+ 698.15261.27381.57511.847485.2614
AY+ 798.69620.54361.11821.303885.7661
AY+ 899.04850.35230.82860.951587.0805
AY+ 999.26670.21820.65820.733389.7569
AY+10N/A0.21820.47650.515192.5079
AY+11N/A0.21820.28280.296995.2452
AY+12N/A0.21820.07620.078796.8412
AY+13N/A0.07870.00000.0000N/A
Commercial Auto/Truck Liability/Medical
Tax Year
Cumulative
Losses Paid
(%)
Estimated Losses
Paid Each Year
(%)
Discounted
Unpaid Losses at
Year End
(%)
Unpaid Losses
at Year End
(%)
Discount
Factor
(%)
AY+ 020.843920.843969.000479.156187.1701
AY+ 147.313626.469746.242152.686487.7685
AY+ 265.647518.334030.376034.352588.4244
AY+ 379.048113.400518.552220.951988.5467
AY+ 486.89457.846511.679813.105589.1220
AY+ 592.45035.55586.71727.549788.9736
AY+ 695.57513.12473.93594.424988.9483
AY+ 797.30521.73022.41032.694889.4420
AY+ 898.14690.84171.70091.853191.7885
AY+ 998.85490.70801.08261.145194.5428
AY+10N/A0.70800.42330.437196.8412
AY+11N/A0.43710.00000.0000N/A
Workers’ Compensation
Tax Year
Cumulative
Losses Paid
(%)
Estimated Losses
Paid Each Year
(%)
Discounted
Unpaid Losses at
Year End
(%)
Unpaid Losses
at Year End
(%)
Discount
Factor
(%)
AY+ 022.336622.336664.248477.663482.7268
AY+ 150.694128.357539.225649.305979.5557
AY+ 266.188615.494525.826433.811476.3837
AY+ 374.42288.234219.035925.577274.4253
AY+ 479.56635.143414.986720.433773.3432
AY+ 583.72274.156411.688316.277371.8077
AY+ 686.13162.40899.975813.868471.9321
AY+ 788.44522.31368.248211.554871.3830
AY+ 888.96250.51738.260811.037574.8434
AY+ 989.92660.96417.813010.073477.5606
AY+10N/A0.96417.33559.109380.5270
AY+11N/A0.96416.82638.145383.8070
AY+12N/A0.96416.28337.181287.4975
AY+13N/A0.96415.70446.217191.7536
AY+14N/A0.96415.08715.253096.8412
AY+15N/A5.25300.00000.0000N/A
Commercial Multiple Peril
Tax Year
Cumulative
Losses Paid
(%)
Estimated Losses
Paid Each Year
(%)
Discounted
Unpaid Losses at
Year End
(%)
Unpaid Losses
at Year End
(%)
Discount
Factor
(%)
AY+ 033.419333.419356.761366.580785.2519
AY+ 159.129625.710333.975740.870483.1303
AY+ 267.40808.278427.679932.592084.9284
Continued on next page
8

Tax Year
Cumulative
Losses Paid
(%)
Estimated Losses
Paid Each Year
(%)
Discounted
Unpaid Losses at
Year End
(%)
Unpaid Losses
at Year End
(%)
Discount
Factor
(%)
AY+ 375.75718.349120.893624.242986.1844
AY+ 483.86738.110213.904116.132786.1858
AY+ 589.57995.71268.927010.420185.6710
AY+ 693.41243.83255.56146.587684.4217
AY+ 795.64552.23313.62424.354583.2276
AY+ 896.95711.31162.51013.042982.4887
AY+ 997.44970.49262.16782.550385.0017
AY+10N/A0.49261.80292.057787.6150
AY+11N/A0.49261.41371.565190.3275
AY+12N/A0.49260.99881.072593.1260
AY+13N/A0.49260.55630.579995.9349
AY+14N/A0.49260.08450.087396.8412
AY+15N/A0.08730.00000.0000N/A
Medical Malpractice
Tax Year
Cumulative
Losses Paid
(%)
Estimated Losses
Paid Each Year
(%)
Discounted
Unpaid Losses at
Year End
(%)
Unpaid Losses
at Year End
(%)
Discount
Factor
(%)
AY+ 03.70263.702669.623196.297472.3001
AY+ 111.55357.851066.132188.446574.7708
AY+ 221.929610.376159.802278.070476.6003
AY+ 332.855510.925952.484867.144578.1669
AY+ 446.616413.760941.754853.383678.2165
AY+ 560.909214.292829.764139.090876.1409
AY+ 669.23498.325723.140230.765175.2157
AY+ 771.65742.422522.172828.342678.2316
AY+ 873.76102.103621.470726.239081.8275
AY+ 977.83954.078618.682622.160584.3062
AY+10N/A4.078615.709718.081986.8808
AY+11N/A4.078612.539614.003389.5476
AY+12N/A4.07869.15949.924892.2886
AY+13N/A4.07865.55515.846295.0206
AY+14N/A4.07861.71181.767696.8412
AY+15N/A1.76760.00000.0000N/A
Special Liability (Ocean Marine, Aircraft (all Perils), Boiler and Machinery)
Tax Year
Cumulative
Losses Paid
(%)
Estimated Losses
Paid Each Year
(%)
Discounted
Unpaid Losses at
Year End
(%)
Unpaid Losses
at Year End
(%)
Discount
Factor
(%)
AY+ 031.223131.223161.162668.776988.9290
AY+ 168.224737.001627.009131.775385.0004
AY+ 280.285812.061116.345319.714282.9115
AY+ 385.41665.130812.130814.583483.1827
AY+ 489.40283.98628.818910.597283.2194
AY+ 593.24933.84655.43166.750780.4607
AY+ 694.05150.80224.96345.948583.4397
AY+ 795.89011.83863.39394.109982.5788
AY+ 897.79951.90931.64732.200574.8580
AY+ 997.99200.19251.55772.008077.5737
AY+10N/A0.19251.46211.815580.5381
AY+11N/A0.19251.36031.623083.8157
AY+12N/A0.19251.25171.430487.5033
AY+13N/A0.19251.13591.237991.7563
AY+14N/A0.19251.01241.045496.8412
AY+15N/A1.04540.00000.0000N/A
9

Other Liability
Tax Year
Cumulative
Losses Paid
(%)
Estimated Losses
Paid Each Year
(%)
Discounted
Unpaid Losses at
Year End
(%)
Unpaid Losses
at Year End
(%)
Discount
Factor
(%)
AY+ 09.97379.973768.408690.026375.9874
AY+ 121.881911.908260.647578.118177.6356
AY+ 232.558310.676453.643867.441779.5409
AY+ 341.45438.896048.014258.545782.0115
AY+ 456.358314.904035.807443.641782.0485
AY+ 571.676315.318022.363828.323778.9578
AY+ 678.03976.363517.275521.960378.6670
AY+ 782.25664.216814.066517.743479.2771
AY+ 885.27543.018811.881814.724680.6934
AY+ 987.40142.126010.474212.598683.1378
AY+10N/A2.12608.973410.472785.6836
AY+11N/A2.12607.37308.346788.3341
AY+12N/A2.12605.66656.220791.0905
AY+13N/A2.12603.84694.094893.9461
AY+14N/A2.12601.90661.968896.8412
AY+15N/A1.96880.00000.0000N/A
Special Property (Fire, Allied Lines, Inland Marine, Earthquake, Glass, Burglary, and Theft)
Tax Year
Cumulative
Losses Paid
(%)
Estimated Losses
Paid Each Year
(%)
Discounted
Unpaid Losses at
Year End
(%)
Unpaid Losses
at Year End
(%)
Discount
Factor
(%)
AY+ 057.781757.781739.853342.218394.3982
AY+ 188.339030.557310.941511.661093.8306
AY+ 2N/A5.83055.64635.830596.8412
AY+ 3N/A5.83050.00000.0000N/A
Auto Physical Damage
Tax Year
Cumulative
Losses Paid
(%)
Estimated Losses
Paid Each Year
(%)
Discounted
Unpaid Losses at
Year End
(%)
Unpaid Losses
at Year End
(%)
Discount
Factor
(%)
AY+ 084.182784.182715.217715.817396.2092
AY+ 198.869714.68701.06061.130393.8306
AY+ 2N/A0.56510.54730.565196.8412
AY+ 3N/A0.56510.00000.0000N/A
Fidelity, Surety, Financial Guaranty, Mortgage Guaranty
Tax Year
Cumulative
Losses Paid
(%)
Estimated Losses
Paid Each Year
(%)
Discounted
Unpaid Losses at
Year End
(%)
Unpaid Losses
at Year End
(%)
Discount
Factor
(%)
AY+ 025.172825.172868.715874.827291.8327
AY+ 157.628132.455339.757842.371993.8306
AY+ 2N/A21.185920.516721.185996.8412
AY+ 3N/A21.18590.00000.0000N/A
Other (including Credit, Accident and Health)
Tax Year
Cumulative
Losses Paid
(%)
Estimated Losses
Paid Each Year
(%)
Discounted
Unpaid Losses at
Year End
(%)
Unpaid Losses
at Year End
(%)
Discount
Factor
(%)
AY+ 063.672563.672534.197636.327594.1369
AY+ 188.892725.220210.422011.107393.8306
AY+ 2N/A5.55365.37825.553696.8412
AY+ 3N/A5.55360.00000.0000N/A
10

International (Composite)
Tax Year
Cumulative
Losses Paid
(%)
Estimated Losses
Paid Each Year
(%)
Discounted
Unpaid Losses at
Year End
(%)
Unpaid Losses
at Year End
(%)
Discount
Factor
(%)
AY+ 030.800630.800658.621369.199484.7137
AY+ 156.923526.122935.533043.076582.4881
AY+ 268.690611.767125.737931.309482.2050
AY+ 376.76978.079119.101723.230382.2275
AY+ 483.53366.763913.383716.466481.2783
AY+ 588.97255.43908.654611.027578.4822
AY+ 691.62182.64936.49278.378277.4953
AY+ 793.43051.80875.05546.569576.9538
AY+ 894.36380.93334.42695.636278.5443
AY+ 995.05950.69574.00204.940581.0046
AY+10N/A0.69573.54904.244883.6078
AY+11N/A0.69573.06593.549286.3851
AY+12N/A0.69572.55092.853589.3943
AY+13N/A0.69572.00162.157892.7611
AY+14N/A0.69571.41601.462296.8412
AY+15N/A1.46220.00000.0000N/A
Reinsurance A
Tax Year
Cumulative
Losses Paid
(%)
Estimated Losses
Paid Each Year
(%)
Discounted
Unpaid Losses at
Year End
(%)
Unpaid Losses
at Year End
(%)
Discount
Factor
(%)
AY+ 035.804435.804458.766864.195691.5432
AY+ 172.267136.462825.010927.732990.1850
AY+ 279.12946.862219.583020.870693.8306
AY+ 3N/A10.435310.105710.435396.8412
AY+ 4N/A10.43530.00000.0000N/A
Reinsurance B (Composite)
Tax Year
Cumulative
Losses Paid
(%)
Estimated Losses
Paid Each Year
(%)
Discounted
Unpaid Losses at
Year End
(%)
Unpaid Losses
at Year End
(%)
Discount
Factor
(%)
AY+ 030.800630.800658.621369.199484.7137
AY+ 156.923526.122935.533043.076582.4881
AY+ 268.690611.767125.737931.309482.2050
AY+ 376.76978.079119.101723.230382.2275
AY+ 483.53366.763913.383716.466481.2783
AY+ 588.97255.43908.654611.027578.4822
AY+ 691.62182.64936.49278.378277.4953
AY+ 793.43051.80875.05546.569576.9538
AY+ 894.36380.93334.42695.636278.5443
AY+ 995.05950.69574.00204.940581.0046
AY+10N/A0.69573.54904.244883.6078
AY+11N/A0.69573.06593.549286.3851
AY+12N/A0.69572.55092.853589.3943
AY+13N/A0.69572.00162.157892.7611
AY+14N/A0.69571.41601.462296.8412
AY+15N/A1.46220.00000.0000N/A
Reinsurance C
Tax Year
Cumulative
Losses Paid
(%)
Estimated Losses
Paid Each Year
(%)
Discounted
Unpaid Losses at
Year End
(%)
Unpaid Losses
at Year End
(%)
Discount
Factor
(%)
AY+ 023.051323.051369.111076.948789.8144
AY+ 147.156524.105148.801652.843592.3512
Continued on next page
11

Tax Year
Cumulative
Losses Paid
(%)
Estimated Losses
Paid Each Year
(%)
Discounted
Unpaid Losses at
Year End
(%)
Unpaid Losses
at Year End
(%)
Discount
Factor
(%)
AY+ 273.174226.017725.170826.825893.8306
AY+ 3N/A13.412912.989213.412996.8412
AY+ 4N/A13.41290.00000.0000N/A
Miscellaneous Casualty (Composite)
Tax Year
Cumulative
Losses Paid
(%)
Estimated Losses
Paid Each Year
(%)
Discounted
Unpaid Losses at
Year End
(%)
Unpaid Losses
at Year End
(%)
Discount
Factor
(%)
AY+ 073.950373.950324.675026.049794.7226
AY+ 193.760119.80995.85496.239993.8306
AY+ 2N/A3.11993.02143.119996.8412
AY+ 3N/A3.11990.00000.0000N/A
Long Lines (Composite)
Tax Year
Cumulative
Losses Paid
(%)
Estimated Losses
Paid Each Year
(%)
Discounted
Unpaid Losses at
Year End
(%)
Unpaid Losses
at Year End
(%)
Discount
Factor
(%)
AY+ 030.800630.800658.621369.199484.7137
AY+ 156.923526.122935.533043.076582.4881
AY+ 268.690611.767125.737931.309482.2050
AY+ 376.76978.079119.101723.230382.2275
AY+ 483.53366.763913.383716.466481.2783
AY+ 588.97255.43908.654611.027578.4822
AY+ 691.62182.64936.49278.378277.4953
AY+ 793.43051.80875.05546.569576.9538
AY+ 894.36380.93334.42695.636278.5443
AY+ 995.05950.69574.00204.940581.0046
AY+10N/A0.69573.54904.244883.6078
AY+11N/A0.69573.06593.549286.3851
AY+12N/A0.69572.55092.853589.3943
AY+13N/A0.69572.00162.157892.7611
AY+14N/A0.69571.41601.462296.8412
AY+15N/A1.46220.00000.0000N/A
DRAFTING INFORMATION
The principal author of this revenue
procedure is Katherine A. Hossofsky of
the Office of the Assistant Chief Coun-
sel (Financial Institutions and Products).
For further information regarding this
revenue procedure, contact Ms. Hos-
sofsky on (202) 622–3477 (not a toll-
free number).
26 CFR 601.201: Rulings and determination let-
ters
(Also Part I, Sections 832, 846; 1.832–4, 1.846–
1.)
Rev. Proc. 96–45
SECTION 1. PURPOSE
This revenue procedure prescribes the
salvage discount factors for the 1996
accident year. These factors will be used
for computing discounted estimated sal-
vage recoverable under § 832 of the
Internal Revenue Code.
SEC. 2. BACKGROUND
Section 832(b)(5)(A) requires that all
estimated salvage recoverable (including
that which cannot be treated as an asset
for state accounting purposes) be taken
into account in computing the deduction
for losses incurred. Under § 832(b)-
(5)(A), paid losses are to be reduced by
salvage and reinsurance recovered dur-
ing the taxable year. This amount is
adjusted to reflect changes in discounted
unpaid losses on nonlife insurance con-
tracts and in unpaid losses on life
insurance contracts. An adjustment is
then made to reflect any changes in
discounted estimated salvage recover-
able and in reinsurance recoverable.
Pursuant to § 832(b), the amount of
estimated salvage is determined on a
discounted basis in accordance with pro-
cedures established by the Secretary.
SEC. 3. SCOPE
This revenue procedure applies to any
taxpayer that is required to discount
estimated salvage recoverable under
§ 832.
SEC. 4. APPLICATION
.01 The following tables present
separately for each line of business the
discount factors under § 832 for the
1995 accident year. All the discount
factors presented in this section were
determined using the applicable interest
rate under § 846(c) for 1996, which is
6.63 percent, and by assuming all esti-
mated salvage is recovered in the
12

middle of each calendar year. See Rev.
Proc. 91–48, 1991–2 C.B. 760, for back-
ground regarding the tables.
.02 These tables must be used by
taxpayers irrespective of whether they
elected to discount unpaid losses using
their own historical experience under
§ 846.
.03 Tables.
Tables of Discount Factors
Salvage Recoverable
- 1996 -
Interest rate: 6.63 percent
Homeowners/Farmowners
Tax Year
Discount
Factor
(%)
AY+ 092.4763
AY+ 187.0955
AY+ 288.2656
AY+ 389.1817
AY+ 489.7376
AY+ 588.9620
AY+ 689.6468
AY+ 789.0559
AY+ 889.1020
AY+ 991.8346
AY+1094.5850
AY+1196.8412
Private Passenger Auto Liability/Medical
Tax Year
Discount
Factor
(%)
AY+ 090.2868
AY+ 189.7336
AY+ 289.6646
AY+ 389.1303
AY+ 488.1776
AY+ 586.8495
AY+ 685.2614
AY+ 785.7661
AY+ 887.0805
AY+ 989.7569
AY+1092.5079
AY+1195.2452
AY+1296.8412
Commercial Auto/Truck Liability/
Medical
Tax Year
Discount
Factor
(%)
AY+ 087.1701
AY+ 187.7685
AY+ 288.4244
AY+ 388.5467
AY+ 489.1220
AY+ 588.9736
AY+ 688.9483
Tax Year
Discount
Factor
(%)
AY+ 789.4420
AY+ 891.7885
AY+ 994.5428
AY+1096.8412
Workers’ Compensation
Tax Year
Discount
Factor
(%)
AY+ 082.7268
AY+ 179.5557
AY+ 276.3837
AY+ 374.4253
AY+ 473.3432
AY+ 571.8077
AY+ 671.9321
AY+ 771.3830
AY+ 874.8434
AY+ 977.5606
AY+1080.5270
AY+1183.8070
AY+1287.4975
AY+1391.7536
AY+1496.8412
Commercial Multiple Peril
Tax Year
Discount
Factor
(%)
AY+ 085.2519
AY+ 183.1303
AY+ 284.9284
AY+ 386.1844
AY+ 486.1858
AY+ 585.6710
AY+ 684.4217
AY+ 783.2276
AY+ 882.4887
AY+ 985.0017
AY+1087.6150
AY+1190.3275
AY+1293.1260
AY+1395.9349
AY+1496.8412
Medical Malpractice
Tax Year
Discount
Factor
(%)
AY+ 072.3001
AY+ 174.7708
AY+ 276.6003
AY+ 378.1669
AY+ 478.2165
AY+ 576.1409
AY+ 675.2157
AY+ 778.2316
AY+ 881.8275
Tax Year
Discount
Factor
(%)
AY+ 984.3062
AY+1086.8808
AY+1189.5476
AY+1292.2886
AY+1395.0206
AY+1496.8412
Special Liability (Ocean Marine,
Aircraft (all Perils), Boiler and
Machinery)
Tax Year
Discount
Factor
(%)
AY+ 088.9290
AY+ 185.0004
AY+ 282.9115
AY+ 383.1827
AY+ 483.2194
AY+ 580.4607
AY+ 683.4397
AY+ 782.5788
AY+ 874.8580
AY+ 977.5737
AY+1080.5381
AY+1183.8157
AY+1287.5033
AY+1391.7563
AY+1496.8412
Other Liability
Tax Year
Discount
Factor
(%)
AY+ 075.9874
AY+ 177.6356
AY+ 279.5409
AY+ 382.0115
AY+ 482.0485
AY+ 578.9578
AY+ 678.6670
AY+ 779.2771
AY+ 880.6934
AY+ 983.1378
AY+1085.6836
AY+1188.3341
AY+1291.0905
AY+1393.9461
AY+1496.8412
Special Property (Fire, Allied Lines,
Inland Marine, Earthquake, Glass,
Burglary, and Theft)
Tax Year
Discount
Factor
(%)
AY+ 089.4016
AY+ 191.1418
AY+ 292.1391
Continued on next page
13

Tax Year
Discount
Factor
(%)
AY+ 393.5634
AY+ 494.5558
AY+ 596.2074
AY+ 696.8412
Auto Physical Damage
Tax Year
Discount
Factor
(%)
AY+ 095.1966
AY+ 195.6676
AY+ 296.8412
Fidelity, Surety, Financial Guaranty,
Mortgage Guaranty
Tax Year
Discount
Factor
(%)
AY+ 084.0469
AY+ 186.4207
AY+ 287.7821
AY+ 389.4142
AY+ 491.0835
AY+ 592.7170
AY+ 693.9699
AY+ 795.0086
AY+ 896.8412
Other (including Credit, Accident and
Health)
Tax Year
Discount
Factor
(%)
AY+ 089.9648
AY+ 191.7311
AY+ 292.9067
AY+ 394.5018
AY+ 495.8377
AY+ 596.8412
International (Composite)
Tax Year
Discount
Factor
(%)
AY+ 084.7137
AY+ 182.4881
AY+ 282.2050
AY+ 382.2275
AY+ 481.2783
AY+ 578.4822
AY+ 677.4953
Tax Year
Discount
Factor
(%)
AY+ 776.9538
AY+ 878.5443
AY+ 981.0046
AY+1083.6078
AY+1186.3851
AY+1289.3943
AY+1392.7611
AY+1496.8412
Reinsurance A
Tax Year
Discount
Factor
(%)
AY+ 077.0244
AY+ 180.3308
AY+ 282.0405
AY+ 383.8941
AY+ 486.0620
AY+ 588.4270
AY+ 691.0715
AY+ 793.8805
AY+ 896.8412
Reinsurance B (Composite)
Tax Year
Discount
Factor
(%)
AY+ 084.7137
AY+ 182.4881
AY+ 282.2050
AY+ 382.2275
AY+ 481.2783
AY+ 578.4822
AY+ 677.4953
AY+ 776.9538
AY+ 878.5443
AY+ 981.0046
AY+1083.6078
AY+1186.3851
AY+1289.3943
AY+1392.7611
AY+1496.8412
Reinsurance C
Tax Year
Discount
Factor
(%)
AY+ 077.0244
AY+ 180.3308
AY+ 282.0405
AY+ 383.8941
Tax Year
Discount
Factor
(%)
AY+ 486.0620
AY+ 588.4270
AY+ 691.0715
AY+ 793.8805
AY+ 896.8412
Miscellaneous Casualty (Composite)
Tax Year
Discount
Factor
(%)
AY+ 085.0124
AY+ 186.9026
AY+ 287.8050
AY+ 389.0382
AY+ 490.2502
AY+ 591.6718
AY+ 692.9603
AY+ 794.5573
AY+ 896.8412
Long Lines (Composite)
Tax Year
Discount
Factor
(%)
AY+ 084.7137
AY+ 182.4881
AY+ 282.2050
AY+ 382.2275
AY+ 481.2783
AY+ 578.4822
AY+ 677.4953
AY+ 776.9538
AY+ 878.5443
AY+ 981.0046
AY+1083.6078
AY+1186.3851
AY+1289.3943
AY+1392.7611
AY+1496.8412
DRAFTING INFORMATION
The principal author of this revenue
procedure is Katherine A. Hossofsky of
the Office of the Assistant Chief Coun-
sel (Financial Institutions and Products).
For further information regarding this
revenue procedure, contact Ms. Hos-
sofsky on (202) 622–3477 (not a toll-
free number).
14

Part IV. Items of General Interest
Effective Date Extension for Certain
Payors Revising Their Substitute
Forms W–9
Announcement 96–77
This announcement extends the Janu-
ary 1, 1997, effective date of certain
provisions of Rev. Proc. 96–26, 1996–8
I.R.B. 22, for certain payors. That rev-
enue procedure provides requirements
for payors of interest, dividends, and
patronage dividends, and brokers that
want to design and provide their own
substitute Form W–9, Request for Tax-
payer Identification Number and Certifi-
cation, to obtain the required taxpayer
identification number and ‘‘no backup
withholding’’ certifications from their
payees.
The effective date of Rev. Proc.
96–26 (other than for section 5 relating
to certain impermissible uses of the
required certifications) is extended to
July 1, 1997, if a payor (1) is required
to obtain the approval of a governmental
authority for changes to the format of its
substitute Form W–9 required by Rev.
Proc. 96–26, (2) applies, on or before
September 30, 1996, for that approval,
and (3) thereafter actively pursues that
approval.
The principal author of this announce-
ment is John Coulter of the Office of
Assistant Chief Counsel (Income Tax
and Accounting). For further information
regarding this announcement contact Mr.
Coulter at (202) 622–4910 (not a toll-
free call).
Revision of Section 482 Cost
Sharing Regulations; Correction
Announcement 96–78
AGENCY: Internal Revenue Service,
Treasury.
ACTION: Correction to final regula-
tions.
SUMMARY: This document contains
corrections to final regulations (TD
8670 [1996–24 I.R.B. 6]), which were
published in theFederal Registeron
Monday, May 13, 1996 (61 FR 21955)
relating to qualified cost sharing ar-
rangements.
EFFECTIVE DATE: May 13, 1996.
FOR FURTHER INFORMATION CON-
TACT: Lisa Sams (202) 622–3840, (not
a toll-free number).
SUPPLEMENTARY
INFORMATION:
Background
The final regulations that are the
subject of these corrections are under
section 482 of the Internal Revenue
Code.
Need for Correction
As published, the final regulations
contain errors which may prove to be
misleading and are in need of clarifica-
tion.
Correction of Publication
Accordingly, the publication of the
final regulations (TD 8670), which are
the subject of FR Doc. 96–11781, is
corrected as follows:
§ 1.482–7 [Corrected]
On page 21956, column 2, instruc-
tional ‘‘Par. 3.’’, is corrected by revising
item g. to read as follows: g. By
redesignating the introductory text of
paragraph (j)(2) following the heading
and paragraphs (j)(2)(i) through (j)(2)(v)
as the introductory text of paragraph
(j)(2)(i) and paragraphs (j)(2)(i)(A)
through (j)(2)(i)(E), respectively; and,
by adding a heading to newly desig-
nated paragraph (j)(2)(i).
Cynthia E. Grigsby,
Chief, Regulations Unit,
Assistant Chief Counsel (Corporate).
(Filed by the Office of the Federal Register on
June 27, 1996, 8:45 a.m., and published in the
issue of the Federal Register for June 28, 1996, 61
F.R. 33656)
Taxpayer Identifying Numbers
(TINs); Correction
Announcement 96–79
AGENCY: Internal Revenue Service,
Treasury.
ACTION: Correction to final regula-
tions.
SUMMARY: This document contains
corrections to final regulations (TD
8671 [1996–26 I.R.B. 8]) which were
published in theFederal Registeron
Wednesday, May 29, 1996 (61 FR
26788). The final regulations relate to
requirements for furnishing a taxpayer
identifying number on returns, state-
ments or other documents.
EFFECTIVE DATE: May 29, 1996.
FOR FURTHER INFORMATION CON-
TACT: Lilo A. Hester, (202) 874–1490
(not a toll-free number).
SUPPLEMENTARY
INFORMATION:
Background
The final regulations that are the
subject of these corrections are under
section 6109 of the Internal Revenue
Code.
Need for Correction
As published, TD 8671 contains er-
rors that are in need of correction.
Correction of Publication
Accordingly, the publication of final
regulations which are the subject of FR
Doc. 96–13397 is corrected as follows:
1. On page 26790, column 1, in
amendatory instruction ‘‘Par 2.’’, line 1,
the language ‘‘Section § 301.6109–1 is’’
is corrected to read ‘‘Section
301.6109–1 is’’.
§ 301.6109–1 [Corrected]
2. On page 26791, columns 1 and 2,
§ 301.6109–1(d)(3)(iv)(A)(1) is cor-
rected to read as follows:
§ 301.6109–1 Identifying numbers.
* * * * *
(d) * * *
(3) * * *
(iv) * * *
(A) * * *
(1) Procedures for providing Form
SS–4 and Form W–7, or such other
necessary form to applicants for obtain-
ing a taxpayer identifying number;
* * * * *
3. On page 26792, column 2,
§ 301.6109–1(h)(1), line 8, the language
‘‘identification numbers apply after
151996–35 I.R.B.

May’’ is corrected to read ‘‘identifica-
tion numbers apply on and after May’’.
Cynthia E. Grigsby,
Chief, Regulations Unit,
Assistant Chief Counsel (Corporate).
(Filed by the Office of the Federal Register on
June 27, 1996, 8:45 a.m., and published in the
issue of the Federal Register for June 28, 1996, 61
F.R. 33657)
Foundations Status of Certain
Organizations
Announcement 96–80
The following organizations have
failed to establish or have been unable
to maintain their status as public chari-
ties or as operating foundations. Accord-
ingly, grantors and contributors may not,
after this date, rely on previous rulings
or designations in the Cumulative List
of Organizations (Publication 78), or on
the presumption arising from the filing
of notices under section 508(b) of the
Code. This listing doesnotindicate that
the organizations have lost their status
as organizations described in section
501(c)(3), eligible to receive deductible
contributions.
Former Public Charities.The follow-
ing organizations (which have been
treated as organizations that are not
private foundations described in section
509(a) of the Code) are now classified
as private foundations:
AFTL Ambassadors for the Lord
Ministries, Garland, TX
American Laryngeal Papilloma
Foundation, Lake Hiawatha, NJ
American Values, Washington, DC
Apostolic Christian Village Inc.,
Francesville, IN
Applewick Sports Fitness Club, East
Chicago, IN
Aspens Celebration of Indigenous
Cultures, Aspen, CO
Balloon Project, Inc., Port Chester, NY
Beatrice K. Compten Memorial Trust,
Beaver Falls, PA
Bicycle Service Racing Team, Wichita,
KS
Bogota Resque Squad, Bogota, NJ
Books for Democracy Incorporated,
Alexandria, VA
Breakthrough Breast Cancer, Bloomfield
Hills, MI
Breast Cancer Resource Committee Inc.,
Washington, DC
Center for Family Resources Inc.,
Metuchen, NJ
Center for Industrial Preservation Inc.,
Petersburg, VA
Center for Justice and International Law,
Washington, DC
Center for Language Development Inc.,
East Orange, NJ
Center for Public Information on
Electromagnetic Radiation Inc.,
Milltown, NJ
Central Roxborough Civic Assoc.,
Philadelphia, PA
Centre County Columbus Celebration,
State College, PA
Charitable Foundation of the Rotary
Club of Roanoke Valley Inc.,
Roanoke, VA
Charles County Dive Rescue Inc.,
Waldorf, MD
Chinese Academic Link USA Inc.,
Hyattsville, MD
Christe Inc., Cincinnati, OH
Citizens Information Inc., Chester, NJ
College Bound Inc., Washington, DC
College of Exploration, Vienna, VA
Committee of 100 Dorchester Inc.,
Cambridge, MD
Common Concerns Broadcasting Inc.,
Trenton, NJ
Community Council for the Homeless,
Washington, DC
Concerned African American Parents of
Westfield, Westfield, NJ
Conservative Christian Action Group
Inc., Elkhart, WI
Corrigan Ministries, Inc., Cincinnati,
OH
Creative Playgrounds of Nutley a New
Jersey Non-Profit Corporation,
Nutley, NJ
Cumberland-Goodwill Fire & Rescue,
Carlisle, PA
Cure (Citizens Urge Rescue of the
Environment), Hanover, PA
Curwensville Development Corp.,
Curwensville, PA
Daffodil West Hermitage, Cimarron,
NM
Dallas Contemporary Art Museum,
Dallas, TX
Damocles Inc., Arlington, VA
Dancers Unlimited Performing
Ensemble, Wilmington, DE
Dawson Bucs Little League Teams,
Rawlings, MD
Debate America, Washington, DC
Delaware Valley Alliance for RIF,
Norristown, PA
Desert Shield-Storm Family Foundation
Inc., Wall, NJ
De Unique Incorporated, Cheverly, MD
Elizabeth Williams Group Home, Akron,
OH
Environmental Awareness Group, Inc.,
Boston, MA
Holiday House II, Philadelphia, PA
Indian Head Literacy Coalition, New
Richmond, WI
International Human Rights Consulting
Group, Washington, DC
Lommen Nelson Cole & Stageberg
Foundation, Minneapolis, MN
Manchester Supportive Housing Inc.,
Oakmont, PA
Mathieu Mategot Foundation for
Contemporary Tapestry Inc.,
Bethesda, MD
Medical Foundation of Cincinnati,
Cincinnati, OH
Paul Morgan Academy, Fort Worth, TX
Networking for Jesus, Houston, TX
Northeast Scattered Site Resident
Management Corp., Chicago, IL
Northwest Perry Township
Revitalization Group, Lima, OH
Out of Bondage Ministries, Inc., La
Salle, CO
Prime Life Foundation, Reston, VA
Recreational Boating Industries
Educational Foundation, Romeo, MI
Remote Sensing Research Incorporated,
Fort Collins, CO
Reverend Charles Brink Scholarship
Trust, Inc., Kansas City, KS
Shelter Company, Lebanon, VA
Tri-County Recreational Center Inc.,
Chestertown, NY
Virginia Beach Lifeguard Association
Inc., Virginia Beach, VA
Wings to Needs Incorporated, LaGrange,
KY
If an organization listed above sub-
mits information that warrants the re-
newal of its classification as a public
charity or as a private operating founda-
tion, the Internal Revenue Service will
issue a ruling or determination letter
with the revised classification as to
foundation status. Grantors and contribu-
tors may thereafter rely upon such rul-
ing or determination letter as provided
in section 1.509(a)–7 of the Income Tax
Regulations. It is not the practice of the
Service to announce such revised classi-
fication of foundation status in the Inter-
nal Revenue Bulletin.
161996–35 I.R.B.

Numerical Finding List
1
Bulletins 1996–27 through 1996–34
Announcements:
96–61, 1996–27 I.R.B.72
96–62, 1996–28 I.R.B.55
96–63, 1996–29 I.R.B.18
96–64, 1996–29 I.R.B.18
96–65, 1996–29 I.R.B.18
96–66, 1996–29 I.R.B.19
96–67, 1996–30 I.R.B.27
96–68, 1996–31 I.R.B.45
96–69, 1996–32 I.R.B.38
96–70, 1996–32 I.R.B.40
96–71, 1996–33 I.R.B.16
96–72, 1996–33 I.R.B.16
96–73, 1996–33 I.R.B.18
96–74, 1996–33 I.R.B.19
96–75, 1996–34 I.R.B.29
96–76, 1996–34 I.R.B.29
Court Decisions:
2058, 1996–34 I.R.B.13
2059, 1996–34 I.R.B.10
2060, 1996–34 I.R.B.5
Notices:
96–36, 1996–27 I.R.B.11
96–37, 1996–31 I.R.B.29
96–38, 1996–31 I.R.B.29
96–39, 1996–32 I.R.B.8
96–40, 1996–33 I.R.B.11
Proposed Regulations:
CO–9–96, 1996–34 I.R.B.20
CO–24–96, 1996–30 I.R.B.22
CO–25–96, 1996–31 I.R.B.30
CO–26–96, 1996–31 I.R.B.31
FI–28–96, 1996–31, I.R.B.33
FI–32–95, 1996–34 I.R.B.21
FI–48–95, 1996–31 I.R.B.36
FI–59–94, 1996–30 I.R.B.23
GL–7–96, 1996–33 I.R.B.13
IA–26–94, 1996–30 I.R.B.24
IA–29–96, 1996–33 I.R.B.14
IA-292-84, 1996–28 I.R.B.38
PS–22–96, 1996–33 I.R.B.15
PS–39–93, 1996–34 I.R.B.27
Public Laws:
104–117, 1996–34 I.R.B.19
Railroad Retirement Quarterly Rate
1996–29 I.R.B.14
Revenue Procedures:
96–36, 1996–27 I.R.B.11
96–37, 1996–29 I.R.B.16
96–39, 1996–33 I.R.B.11
96–40, 1996–32 I.R.B.8
96–41, 1996–32 I.R.B.9
96–42, 1996–32 I.R.B.14
Revenue Rulings:
96–33, 1996–27 I.R.B.4
96–34, 1996–28 I.R.B.4
96–35, 1996–31 I.R.B.4
96–36, 1996–30 I.R.B.6
96–37, 1996–32 I.R.B.4
96–38, 1996–33 I.R.B.4
96–39, 1996–34 I.R.B.4
Tax Conventions:
1996–28 I.R.B. 36
Treasury Decisions:
8673, 1996–27 I.R.B.4
8674, 1996–28 I.R.B.7
8675, 1996–29 I.R.B.5
8676, 1996–30 I.R.B.4
8677, 1996–30 I.R.B.7
8678, 1996–31 I.R.B.11
8679, 1996–31 I.R.B.4
8680, 1996–33 I.R.B.5
1
A cumulative list of all Revenue Rulings, Rev-
enue Procedures, Treasury Decisions, etc., pub-
lished in Internal Revenue Bulletins 1996–1
through 1996–26 will be found in Internal Rev-
enue Bulletin 1996–27, dated July 1, 1996.
17

Finding List of Current Action on
Previously Published Items
1
Bulletins 1996–27 through 1996–34
*Denotes entry since last publication
Revenue Procedures:
80–27
Modified by
96–40, 1996–32 I.R.B.8
87–32
Modified by
TD 8680, 1996–33 I.R.B.5
92–20
Modified by
TD 8680, 1996–33 I.R.B.5
95–29
Superseded by
96–36, 1996–27 I.R.B.11
95–29A
Superseded by
96–36, 1996–27 I.R.B.11
95–30
Superseded by
96–42, 1996–32 I.R.B.14
1
A cumulative finding list for previously published
items mentioned in Internal Revenue Bulletins
1996–1 through 1996–26 will be found in Internal
Revenue Bulletin 1996–27, dated July 1, 1996.
18