Internal Revenue Bulletin 1997-27 (PDF rendition): IRS Revenue Rulings

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INCOME TAX
Rev. Rul. 97–27, page 4.
Federal rates; adjusted federal rates, adjusted fed-
eral long-term rate; and the long-term exempt rate.
For purposes of sections 1274, 1288, 382, and other
sections of the Code, tables set forth the rates for July
1997.
Notice 97–37, page 8.
Elections into mark-to-market accounting.The Ser-
vice will issue additional guidance on elections under
section 1.475(c)–1 of the regulations. This notice also
extends the deadline to make a customer paper election
on a retroactive basis.
Notice 97–38, page 8.
1997 marginal production rates.This notice an-
nounces the applicable percentage to be used in deter-
mining percentage depletion on marginal production in
tax years beginning in the 1997 calendar year.
Notice 97–39, page 8.
1997 enhanced oil recovery credit.The enhanced oil
recover y credit for taxable years beginning in the 1997
calendar year is determined without regard to the
phase-out for crude oil price increases provided in
section 43(b) of the Code.
EXEMPT ORGANIZATIONS
Announcement 97–67, page 37.
A list is given of organizations now classified as private
foundations.
ADMINISTRATIVE
Rev. Proc. 97–32, page 9.
Reproduction of forms; Forms 1096, 1098, 1099
series, 5498, and W–2G.Requirements are set forth
for reproducing paper substitutes for Forms 1096,
1098, 1099 series, 5498, and W–2G, and for furnishing
substitute statements to form recipients. Rev. Proc.
96–42 superseded.
Finding Lists begin on page 40.
Announcement of Disbarments and Suspensions begins on page 38.
Index for January—June begins on page 43.
Bulletin No. 1997–27
July 7, 1997
HIGHLIGHTS
OF THIS ISSUE
These synopses are intended only as aids to the reader in
identifying the subject matter covered. They may not be relied
upon as authoritative interpretations.

Mission of the Service
The purpose of the Internal Revenue Ser vice is to
collect the proper amount of tax revenue at the least
cost; ser ve the public by continually improving the
quality of our products and ser vices; and per form 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 Ser vice 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 Ser vice to
carr y 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
per form 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
Ser vice, charged with the duty of interpreting the
law, to tr y to find the true meaning of the statutor y
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 Ser vice also has the responsibility of applying
andadministeringthelawinareasonable,
practical manner. Issues should only be raised by
examining of ficers 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 Ser vice position.
Administration should be both reasonable and
vigorous. It should be conducted with as little
delay as possible and with great cour tesy and
considerateness. It should never tr y 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 Ser vice and for publishing Treasur y 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 Ser vice to publish in the Bulletin all
substantive rulings necessar y 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. 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
Ser vice field offices, identifying details and information
of a confidential nature are deleted to prevent unwar-
ranted invasions of privacy and to comply with statutor y
requirements.
Rulings and procedures reported in the Bulletin do not
have the force and effect of Treasur y Department
Regulations, but they may be used as precedents.
Unpublished rulings will not be relied on, used, or cited
as precedents by Ser vice 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 Ser vice 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
Treasur y’s Office of the Assistant Secretar y (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 a cumulative
index for the matters published during the preceding
months. These monthly indexes are cumulated on a
quarterly and semiannual basis, and are published in
the first Bulletin of the succeeding quarterly and 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 42.—Low-Income Housing
Credit
The adjusted applicable federal short-term, mid-
term, and long-term rates are set forth for the
month of July 1997. See Rev. Rul. 97–27,
this page.
Section 220.—Medical Savings
Accounts
Specifications for paper substitutes for Forms
1096, 1098, 1099, 5498, and W–2G. See Rev.
Proc. 97–32, page 9.
Section 280G.—Golden Parachute
Payments
Federal short-term, mid-term, and long-term
rates are set forth for the month of July 1997. See
Rev. Rul. 97–27, this page.
Section 382.—Limitation on Net
Operating Loss Carryforwards and
Certain Built-In Losses Following
Ownership Change
The adjusted federal long-term rate is set forth
for the month of July 1997. See Rev. Rul. 97–27,
this page.
Section 408.—Individual
Retirement Accounts
26 CFR 1.408–5: Annual reports by trustees or
issuers.
Specifications for paper substitutes for Form
1096, 1098, 1099, 5498, and W–2G. See Rev.
Proc. 97–32, page 9.
26 CFR 1.408–7: Reports on distributions from
individual retirement plans.
Specifications for paper substitutes for Forms
1096, 1098, 1099, 5498, and W–2G. See Rev.
Proc. 97–32, page 9.
Section 412.—Minimum Funding
Standards
The adjusted applicable federal short-term, mid-
term, and long-term rates are set forth for the
month of July 1997. See Rev. Rul. 97–27,
this page.
Section 467.—Certain Payments
for the Use of Property or Services
The adjusted applicable federal short-term, mid-
term, and long-term rates are set forth for the
month of July 1997. See Rev. Rul. 97–27,
this page.
Section 468.—Special Rules for
Mining and Solid Waste
Reclamation and Closing Costs
The adjusted applicable federal short-term, mid-
term, and long-term rates are set forth for the
month of July 1997. See Rev. Rul. 97–27,
this page.
Section 483.—Interest on Certain
Deferred Payments
The adjusted applicable federal short-term, mid-
term, and long-term rates are set forth for the
month of July 1997. See Rev. Rul. 97–27,
this page.
Section 807.—Rules for Certain
Reserves
The adjusted applicable federal short-term, mid-
term, and long-term rates are set forth for the
month of July 1997. See Rev. Rul. 97–27,
this page.
Section 846.—Discounted Unpaid
Losses Defined
The adjusted applicable federal short-term, mid-
term, and long-term rates are set forth for the
month of July 1997. See Rev. Rul. 97–27,
this page.
Section 1274.—Determination of
Issue Price in the Case of Certain
Debt Instruments Issued for
Property
(Also Sections 42, 280G, 382, 412, 467, 468, 482,
483, 642, 807, 846, 1288, 7520, 7872.)
Rev. Rul. 97–27
This revenue ruling provides various
prescribed rates for federal income tax
purposes for July 1997 (the current
month.) Table 1 contains the short-term,
mid-term, and long-term applicable fed-
eral rates (AFR) for the current month
for purposes of section 1274(d) of the
Internal Revenue Code. Table 2 contains
the short-term, mid-term, and long-term
adjusted applicable federal rates (ad-
justed AFR) for the current month for
purposes of section 1288(b). Table 3 sets
forth the adjusted federal long-term rate
and the long-term tax-exempt rate de-
scribed in section 382(f). Table 4 con-
tains the appropriate percentages for de-
termining the low-income housing credit
described in section 42(b)(2) for build-
ings placed in service during the current
month. Table 5 contains the federal rate
for determining the present value of an
annuity, an interest for life or for a term
of years, or a remainder or a reversion-
ary interest for purposes of section 7520.
Finally, Table 6 contains the blended
annual rate for purposes of section 7872.
REV. RUL. 97–27 TABLE 1
Applicable Federal Rates (AFR) for July 1997
Period for Compounding
AnnualSemiannualQuarterlyMonthly
Short-Term
AFR6.07%5.98%5.94%5.91%
110% AFR6.69%6.58%6.53%6.49%
120% AFR7.31%7.18%7.12%7.07%
130% AFR7.92%7.77%7.70%7.65%
Mid-Term
AFR6.65%6.54%6.49%6.45%
110% AFR7.32%7.19%7.13%7.08%
120% AFR8.00%7.85%7.77%7.72%
July 7, 1997
41997–27 I.R.B.

REV. RUL. 97–27 TABLE 1—Continued
Applicable Federal Rates (AFR) for July 1997
Period for Compounding
AnnualSemiannualQuarterlyMonthly
Mid-Term (continued)
130% AFR8.68%8.50%8.41%8.35%
150% AFR10.05%9.81%9.69%9.62%
175% AFR11.78%11.45%11.29%11.19%
Long-Term
AFR6.99%6.87%6.81%6.77%
110% AFR7.70%7.56%7.49%7.44%
120% AFR8.41%8.24%8.16%8.10%
130% AFR9.13%8.93%8.83%8.77%
REV. RUL. 97–27 TABLE 2
Adjusted AFR for July 1997
Period for Compounding
AnnualSemiannualQuarterlyMonthly
Short-term
adjusted AFR3.99%3.95%3.93%3.92%
Mid-term
adjusted AFR4.71%4.66%4.63%4.62%
Long-term
adjusted AFR5.45%5.38%5.34%5.32%
REV. RUL. 97–27 TABLE 3
Rates Under Section 382 for July 1997
Adjusted federal long-term rate for the current month5.45%
Long-term tax-exempt rate for ownership changes during the current month (the highest of the
adjusted federal long-term rates for the current month and the prior two months.)5.64%
REV. RUL. 97–27 TABLE 4
Appropriate Percentages Under Section 42(b)(2) for July 1997
Appropriate percentage for the 70% present value low-income housing credit8.60%
Appropriate percentage for the 30% present value low-income housing credit3.69%
REV. RUL. 97–27 TABLE 5
Rate Under Section 7520 for July 1997
Applicable federal rate for determining the present value of an annuity, an interest for life or a
term of years, or a remainder or reversionary interest8.0%
REV. RUL. 97–27 TABLE 6
Blended Annual Rate for 1997
Section 7872(e)(2) blended annual rate for 19975.85%
1997–27 I.R.B.5July 7, 1997

Section 1288.—Treatment of
Original Issue Discount on
Tax-Exempt Obligations
The adjusted applicable federal short-term, mid-
term, and long-term rates are set forth for the
month of July 1997. See Rev. Rul. 97–27,
page 4.
Section 6041.—Information at
Source
26 CFR 1.6041–1: Return of information as to
payments of $600 or more.
Specifications for paper substitutes for Forms
1096, 1098, 1099, 5498, and W–2G. See Rev.
Proc. 97–32, page 9.
26 CFR 7.6041–1: Return of information as to
payments of winnings from bingo, keno, and slot
machines (Temporary).
Specifications for paper substitutes for Forms
1096, 1098, 1099, 5498, and W–2G. See Rev.
Proc. 97–32, page 9.
Section 6041A.—Returns
Regarding Payments of
Remuneration for Services and
Direct Sales
Specifications for paper substitutes for Forms
1096, 1098, 1099, 5498, and W–2G. See Rev.
Proc. 97–32, page 9.
Section 6042.—Returns Regarding
Payments of Dividends and
Corporate Earnings and Profits
26 CFR 1.6042–2: Returns of information as to
dividends paid in calendar years after 1962.
Specifications for paper substitutes for Forms
1096, 1098, 1099, 5498, and W–2G. See Rev.
Proc. 97–32, page 9.
26 CFR 1.6042–4: Statements to recipients of
dividend payments.
Specifications for paper substitutes for Forms
1096, 1098, 1099, 5498, and W–2G. See Rev.
Proc. 97–32, page 9.
Section 6043.—Liquidating, Etc.,
Transactions
Specifications for paper substitutes for Forms
1096, 1098, 1099, 5498, and W–2G. See Rev.
Proc. 97–32, page 9.
Section 6044.—Returns Regarding
Payments of Patronage Dividends
26 CFR 1.6044–2: Returns of information as to
payments of patronage dividends with respect to
patronage occurring in taxable years beginning
after 1962.
Specifications for paper substitutes for Forms
1096, 1098, 1099, 5498, and W–2G. See Rev.
Proc. 97–32, page 9.
26 CFR 1.6044–5: Statements to recipients of
patronage dividends.
Specifications for paper substitutes for Forms
1096, 1098, 1099, 5498, and W–2G. See Rev.
Proc. 97–32, page 9.
Section 6045.—Returns of Brokers
26 CFR 1.6045–1: Returns of information of
brokers and barter exchanges.
Specifications for paper substitutes for Forms
1096, 1098, 1099, 5498, and W–2G. See Rev.
Proc. 97–32, page 9.
26 CFR 5f.6045–1: Returns of information for
brokers and barter exchanges (Temporary).
Specifications for paper substitutes for Forms
1096, 1098, 1099, 5498, and W–2G. See Rev.
Proc. 97–32, page 9.
26 CFR 1.6045–2: Furnishing statement required
with respect to certain substitute payments.
Specifications for paper substitutes for Forms
1096, 1098, 1099, 5498, and W–2G. See Rev.
Proc. 97–32, page 9.
26 CFR 1.6045–4: Information reporting on real
estate transactions with dates of closing on or
after January 1, 1991.
Specifications for paper substitutes for Forms
1096, 1098, 1099, 5498, and W–2G. See Rev.
Proc. 97–32, page 9.
Section 6047.—Information
Relating to Certain Trusts and
Annuity Plans
26 CFR 1.6047–1: Information to be furnished
with regard to employee retirement plan covering
an owner-employee.
Specifications for paper substitutes for Forms
1096, 1098, 1099, 5498, and W–2G. See Rev.
Proc. 97–32, page 9.
Section 6049.—Returns Regarding
Payments of Interest
26 CFR 1.6049–4: Return of information as to
interest paid and original issue discount includible
in gross income after December 31, 1982.
Specifications for paper substitutes for Forms
1096, 1098, 1099, 5498, and W–2G. See Rev.
Proc. 97–32, page 9.
26 CFR 1.6049–6: Statements to recipients of
interest payments and holders of obligations for
attributed original issue discount.
Specifications for paper substitutes for Forms
1096, 1098, 1099, 5498, and W–2G. See Rev.
Proc. 97–32, page 9.
26 CFR 1.6049–7: Returns of information with
respect to REMIC regular interests and collateral-
ized debt obligations.
Specifications for paper substitutes for Forms
1096, 1098, 1099, 5498, and W–2G. See Rev.
Proc. 97–32, page 9.
Section 6050A.—Reporting
Requirements of Certain Fishing
Boat Operators
26 CFR 1.6050A–1: Reporting requirements of
certain fishing boat operators.
Specifications for paper substitutes for Form
1096, 1098, 1099, 5498, and W–2G. See Rev.
Proc. 97–32, page 9.
Section 6050B.—Returns Relating
to Unemployment Compensation
26 CFR 1.6050B–1: Information returns by person
making unemployment compensation payments.
Specifications for paper substitutes for Forms
1096, 1098, 1099, 5498, and W–2G. See Rev.
Proc. 97–32, page 9.
Section 6050D.—Returns Relating
to Energy Grants and Financing
26 CFR 1.6050D–1: Information returns relating
to energy grants and financing.
Specifications for paper substitutes for Forms
1096, 1098, 1099, 5498, and W–2G. See Rev.
Proc. 97–32, page 9.
Section 6050E.—State and Local
Income Tax Refunds
26 CFR 1.6050E–1: Reporting of State and local
income tax refunds.
Specifications for paper substitutes for Forms
1096, 1098, 1099, 5498, and W–2G. See Rev.
Proc. 97–32, page 9.
Section 6050H.—Returns Relating
to Mortgage Interest Received in
Trade or Business From Individuals
26 CFR 1.6050H–1: Information reporting of
mortgage interest received in a trade or business
from an individual.
Specifications for paper substitutes for Forms
1096, 1098, 1099, 5498, and W–2G. See Rev.
Proc. 97–32, page 9.
26 CFR 1.6050H–2: Time, form, and manner of
reporting interest received on qualified mortgage.
Specifications for paper substitutes for Forms
1096, 1098, 1099, 5498, and W–2G. See Rev.
Proc. 97–32, page 9.
Section 6050J.—Returns Relating
to Foreclosures and Abandonments
of Security
26 CFR 1.6050J–1T: Questions and answers con-
cerning information returns relating to foreclo-
sures and abandonments of security (Temporary).
Specifications for paper substitutes for Forms
1096, 1098, 1099, 5498, and W–2G. See Rev.
Proc. 97–32, page 9.
July 7, 199761997–27 I.R.B.

Section 6050N.—Returns
Regarding Payments of Royalties
26 CFR 1.6050N–1: Statements to recipients of
royalties.
Specifications for paper substitutes for Forms
1096, 1098, 1099, 5498, and W–2G. See Rev.
Proc. 97–32, page 9.
Section 6050P.—Returns Relating
to the Cancellation of Indebtedness
by Certain Entities
26 CFR 1.6050P–1: Information reporting for
discharges of indebtedness by certain financial
entities.
Specifications for paper substitutes for Forms
1096, 1098, 1099, 5498, and W–2G. See Rev.
Proc. 97–32, page 9.
Section 6050Q.—Certain
Long-Term Care Benefits
Specifications for paper substitutes for Forms
1096, 1098, 5498, and W–2G. See Rev. Proc.
97–32, page 9.
Section 7520.—Valuation Tables
The adjusted applicable federal short-term, mid-
term, and long-term rates are set forth for the
month of July 1997. See Rev. Rul. 97–27,
page 4.
Section 7872.—Treatment of Loans
With Below-Market Interest Rates
The adjusted applicable federal short-term, mid-
term, and long-term rates are set forth for the
month of July 1997. See Rev. Rul. 97–27,
page 4.
1997–27 I.R.B.7July 7, 1997

Part III. Administrative, Procedural, and Miscellaneous
Elections Into Mark-to-Market
Accounting Under Section
1.475(c)–1 of the Regulations
Notice 97–37
On December 24, 1996, final regula-
tions (T.D. 8700, [1997–7 I.R.B. 5] 61
F.R. 67715) were published to furnish
guidance under § 475 of the Internal
Revenue Code, including the scope of
exemptions from the mark-to-market re-
quirements. These regulations contain
elections out of certain exemptions, in-
cluding the intragroup-customer election
(§ 1.475(c)–1(a)(3)(iii)(B) of the In-
come Tax Regulations), the customer
paper election (§ 1.475(c)–1(b)(4)(i)),
andthenegligiblesaleselection
(§ 1.475(c)–1(c)(1)(ii)).Section
1.475(c)–1(b)(4)(i)(B) provides a June
23, 1997, deadline to make the customer
paper election on an amended return.
The Internal Revenue Service recog-
nizes that taxpayers need further guid-
ance concerning these elections. The
Service intends to issue guidance that
will address the interplay of the elec-
tions under § 1.475(c)–1, the extent to
which these elections are available on a
retroactive basis, and the application of
the § 475(b)(2) identification require-
ments to taxpayers making these elec-
tions. Because taxpayers need additional
guidance to evaluate whether to make
an election, and because the elections
cannot be revoked without the consent
of the Commissioner, the additional
guidance will extend the filing deadline
from June 23, 1997, to at least 45 days
after that guidance is released. It should
be noted, however, that an amended
return making an election must be filed
within the statute of limitations on as-
sessment under § 6501(a).
The principal drafter of this notice is
Alan B. Munro of the Office of Assis-
tant Chief Counsel (Financial Institu-
tions and Products). For further informa-
tion regarding this notice contact Mr.
Munro on (202) 622–3920 (not a toll-
free call).
1997 Marginal Production Rates
Notice 97–38
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
1996 calendar year is $18.46.
Table 1 contains the applicable per-
centages for marginal production for
taxable years beginning in calendar
years 1991 through 1997.
Notice 97–38 Table 1
APPLICABLE PERCENTAGE FOR
MARGINAL PRODUCTION
Calendar Year
Applicable
Percentage
199115 percent
199218 percent
199319 percent
199420 percent
199521 percent
199620 percent
199716 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).
1997 Section 43 Inflation
Adjustment
Notice 97–39
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
1996 calendar year ($18.46) does not
exceed $28 multiplied by the inflation
adjustment factor for the 1997 calendar
year, the enhanced oil recovery credit
for qualified costs paid or incurred in
1997 is determined without regard to the
phase-out for crude oil price increases.
Table 1 contains the GNP implicit
price deflator used for the 1997 calendar
year, as well the previously published
GNP implicit price deflators used for the
1991 through 1996 calendar years.
Notice 97–39 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)*
1996109.7 (used for 1997)
*Beginning in 1995, the GNP im-
plicit price deflator was rebased rela-
tive to 1992. The 1990 GNP implicit
price deflator used to compute the
1996 § 43 inflation adjustment factor
is 93.6.
Table 2 contains the inflation adjust-
ment factor and the phase-out amount
for taxable years beginning in the 1997
calendar year as well as the previously
published inflation adjustment factors
and phase-out amounts for the 1991
through 1996 calendar years.
Notice 97–39 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
19971.17200
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
July 7, 1997
81997-27 I.R.B.

Ms. Stewart on (202) 622–3120 (not a
toll-free call).
26 CFR 601.602: Forms and instructions.
(Also Part I, Sections 220, 408, 6041, 6041A,
6042, 6043, 6044, 6045, 6047, 6049, 6050A,
6050B, 6050D, 6050E, 6050H, 6050J, 6050N,
6050P, 6050Q, 1.408–5, 1.408–7, 1.6041–1,
7.6041–1,1.6042–2,1.6042–4,1.6044–2,
1.6044–5,1.6045–1,5f.6045–1,1.6045–2,
1.6045–4,1.6047–1,1.6049–4,1.6049–6,
1.6049–7, 1.6050A–1, 1.6050B–1, 1.6050D–1,
1.6050E–1, 1.6050H–1, 1.6050H–2, 1.6050J–1T,
1.6050N–1, 1.6050P–1)
Rev. Proc. 97–32
CONTENTS
PART A. GENERAL
SECTION 1. PURPOSE
SECTION2.NATUREOF
CHANGES
SECTION 3. REQUIREMENTS FOR
ACCEPTABLESUBSTITUTE
FORMS 1096, 1098, 1099, 5498,
AND W–2G
SECTION 4. DEFINITIONS
SECTION 5. INSTRUCTIONS FOR
PREPARINGPAPERFORMS
THAT WILL BE FILED WITH
THE IRS (COPY A)
SECTION 6. MAGNETIC MEDIA
AND ELECTRONIC FILING
SECTION 7. SUBSTITUTE STATE-
MENTS TO FORM RECIPIENTS
AND FORM RECIPIENT COPIES
PART B. SPECIFICATIONS FOR
SUBSTITUTE FORMS TO BE FILED
WITH IRS (EXCEPT Form W–2G)
SECTION 1. GENERAL
SECTION2. SPECIFICATIONS
FOR FORM 1096 AND COPY A
OF FORMS 1098, 1099, AND
5498
PART C. PECIFICATIONS FOR
SUBSTITUTE FORMS W–2G TO BE
FILED WITH IRS
SECTION 1. GENERAL
SECTION2. SPECIFICATIONS
FOR COPY A OF FORMS W–2G
PART D. DDITIONAL INSTRUCTIONS
FOR FORMS 1098, 1099, 5498,
AND W–2G
SECTION 1. OTHER COPIES
SECTION2. OMBREQUIRE-
MENTS
SECTION3. REPRODUCIBLE
COPIES
SECTION 4. EFFECT ON OTHER
REVENUE PROCEDURES
PART E. EXHIBITS
EXHIBIT A. Form 1098
EXHIBIT B. Form 1099–A
EXHIBIT C. Form 1099–B
EXHIBIT D. Form 1099–C
EXHIBIT E. Form 1099–DIV
EXHIBIT F. Form 1099–G
EXHIBIT G. Form 1099–INT
EXHIBIT H. Form 1099–LTC
EXHIBIT I. Form 1099–MISC
EXHIBIT J. Form 1099–MSA
EXHIBIT K. Form 1099–OID
EXHIBIT L. Form 1099–PATR
EXHIBIT M. Form 1099–R
EXHIBIT N. Form 1099–S
EXHIBIT O. Form W–2G
EXHIBIT P. Form 5498
EXHIBIT Q. Form 5498–MSA
EXHIBIT R. Form 1096
PART A. GENERAL
SECTION 1. PURPOSE
.01 The purpose of this revenue pro-
cedure is to set forth the requirements
for:
1. Using official Internal Revenue
Service (IRS) forms to file information
returns with the IRS,
2. Preparing acceptable substitutes of
the official IRS forms to file informa-
tion returns with the IRS, and
3. Using official or acceptable substi-
tute forms to furnish information to a
recipient.
This revenue procedure contains specifi-
cations for the following information
returns:
(a)Form 1098Mortgage Interest Statement;
(b)Form 1099–AAcquisition or Abandonment of Secured Property;
(c)Form 1099–BProceeds From Broker and Barter Exchange Transactions;
(d)Form 1099–CCancellation of Debt;
(e)Form 1099–DIVDividends and Distributions;
(f)Form 1099–GCertain Government Payments;
(g)Form 1099–INTInterest Income;
(h)Form 1099–LTCLong-Term Care and Accelerated Death Benefits;
(i)Form 1099–MISCMiscellaneous Income;
(j)Form 1099–MSADistributions From Medical Savings Accounts;
(k)Form 1099–OIDOriginal Issue Discount;
(l)Form 1099–PATRTaxable Distributions Received From Cooperatives;
(m) Form 1099–RDistributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance
Contracts, etc.;
(n)Form 1099–SProceeds From Real Estate Transactions;
(o)Form W–2GCertain Gambling Winnings;
(p)Form 5498IRA, SEP, or SIMPLE Retirement Plan Information;
(q)Form 5498–MSAMedical Savings Account Information; and
(r)Form 1096Annual Summary and Transmittal of U.S. Information Returns.
.02 For the purpose of this revenue
procedure, a substitute form or statement
is one that is not printed by the IRS. For
a substitute form or statement to be
acceptable to the IRS, it must conform
to the official form or the specifications
outlined in this revenue procedure.DO
NOT SUBMIT ANY SUBSTITUTE
FORMS OR STATEMENTS TO IRS
FOR APPROVAL.Private printers may
not state ‘‘This is an IRS approved
form.’’ Further, only those forms that
conform to the official form or comply
with the specifications set forth herein
are acceptable. See Part A, Section 7,
for the specifications that apply to form
recipient statements (generally Copy B).
.03 Filers who make payments to
certain persons (payees) (or in some
cases receive payments) during a calen-
dar year are required by the Internal
1997-27 I.R.B.
9July 7, 1997

Revenue Code (IRC) to file information
returns with the IRS reflecting these
payments. Further, as discussed below,
these filers must provide this informa-
tion to their payees.
.04 In general, the manner in which a
filer must file an information return is
governed by section 6011 of the IRC. A
filer must file information returns on
magnetic media (including electronic fil-
ing) or on paper. Under section 6011 of
the IRC, a filer who is required to file
250 or more information returns (of any
one type) during a calendar year must
file those returns on magnetic media.
Filers required to file less than 250
returns during a calendar year may, but
are not required to, file such information
returns on magnetic media (small vol-
ume filers). The IRS explains these legal
requirements for filing information re-
turns (and providing a copy to a payee)
in the annual publication of Instructions
for Forms 1099, 1098, 5498, and W–2G.
.05 Copies of the official forms for
the reporting year and the instruction
booklet may be obtained by calling our
toll-free number1–800–TAX–FORM
(1–800–829–3676).
.06 The IRS prints and provides the
forms on which various payments must
be reported. Alternatively, filers may
prepare substitute copies of these IRS
forms and use such forms to report
payments to the IRS.
.07 IRS operates a centralized call
site, located at the Martinsburg Comput-
ing Center (MCC), to answer questions
related to information returns, penalties,
and backup withholding. The call site
phone number is304–263–8700.The
number for Telecommunications Device
for the Deaf (TDD) is304–267–3367.
These are not toll-free numbers.
.08 IRS has established a personal
computer based Information Reporting
Program Bulletin Board System (IRP-
BBS) at MCC. This system provides
information about forms and publica-
tions, including this revenue procedure,
news of the latest changes, answers to
questions, and other features. The IRP-
BBS is available for public use and can
be reached by dialing 304–264–7070.
The IRP–BBS is compatible with most
modems. For more information concern-
ing this system, call MCC at 304–263–
8700 Monday through Friday 8:30 A.M.
to 4:30 P.M. eastern time.
SEC. 2. NATURE OF CHANGES
.01 The text and exhibits were up-
dated for tax year 1997.
.02 Three new forms were developed
for tax year 1997. They are: Form
1099–LTC, Long-Term Care and Accel-
erated Death Benefits (Exhibit H); Form
1099–MSA, Distributions From Medical
Savings Accounts (Exhibit J); and Form
5498–MSA, Medical Savings Account
Information (Exhibit Q).
.03 Information about including tele-
phone numbers on recipient statements
was added to Part A, Sections 7.01(8)
and 7.03(3).
.04 Several existing forms were
changed as follows: Form 1099–C (Ex-
hibit D) was changed by eliminating box
4, previously titled ‘‘Penalties, fines,
admin. costs included in box 2’’; Form
1099–MISC (Exhibit I) was changed by
deleting the reporting of Excess Golden
Parachute Payments (EPP) in box 7 and
moving it the reporting to a new box 13;
Form 1099–PATR (Exhibit L) was
changed by retitling box 7 from ‘‘Energy
investment credit’’ to ‘‘Investment
credit’’, and retitling box 8 from ‘‘Jobs
credit’’ to ‘‘Work opportunity credit’’;
Form 1099–R (Exhibit M) was changed
by adding ‘‘SIMPLE’’ to the check box
in box 7 to designate a distribution from
a SIMPLE retirement account; The title
of Form 5498 (Exhibit P) was changed
to ‘‘IRA, SEP or SIMPLE Retirement
Plan Information’’, the title of box 2 was
changed from ‘‘Rollover IRA contribu-
tions’’ to ‘‘IRA, SEP, or SIMPLE
rollovercontributions,’’IRAand
SIMPLE check boxes were added to box
5 to designate the type of account, box 6,
titled ‘‘SEP contributions,’’ was added to
report SEP contributions, box 7, titled
‘‘SIMPLE contributions,’’ was added to
report SIMPLE contributions; and Form
1096 (Exhibit R) was changed to include
three new checkboxes for new Forms
1099–LTC, 1099–MSA and 5498–MSA.
NOTE:REFER TO THE 1997 IN-
STRUCTIONS FOR FORMS 1099,
1098, 5498, AND W–2G FOR ADDI-
TIONAL INFORMATION REGARDING
THESE FORM CHANGES.
.05 The IRS mailing address in Part
A, Sec. 3.01 has changed.
.06 A statement regarding the use of
logos on substitute statements to recipi-
ents was added to Part A, Sec. 7.01 (9).
SEC. 3 REQUIREMENTS FOR
ACCEPTABLE SUBSTITUTE FORMS
1096, 1098, 1099, 5498, and
W–2G
.01 Paper substitutes for Form 1096
and Copy A of Forms 1098, 1099, 5498,
and W–2G that totally conform to the
specifications contained in this revenue
procedure may be privately printed and
filed as returns with the IRS. The refer-
ence to the Department of the Treasury -
Internal Revenue Service should be in-
cluded on all such forms. If you are
uncertain of any specification set forth
herein and want that specification clari-
fied, you may submit a letter citing the
specification in question, giving your
understanding and interpretation of the
specification, and enclosing an example
of the form (if appropriate) to:
Internal Revenue Service
ATTN: IRP Coordinator - T:S:P:S
1111 Constitution Avenue, NW
Washington, DC 20224
NOTE:Allow at least 45 days for the
IRS to respond.
.02 Copy B (Form 1098 - For Payer,
Form 1099–A - For Borrower, Form
1099–C - For Debtor, Form 1099–LTC -
For Policyholder, Form 1099–S - For
Transferor, Other Forms 1099 - For Re-
cipient, Forms 5498 and 5498–MSA -
For Participant, and Forms W–2G and
1099–R - To Be Attached To the Federal
Tax Return), and Copy C - (Form
1099–R - For Recipient’s Records, Form
W–2G - For Winner’s Records and,
Form 1099–LTC - For Insured) must
contain the information specified in Part
A, Section 7 in order to constitute a
‘‘statement’’ or ‘‘official form’’ under the
applicable provisions of the Internal Rev-
enue Code. The format of this informa-
tion is at the discretion of the filer with
the exception of the location of the tax
year, form number and form name speci-
fied in Part A, Section 7.01(6) and
7.03(1) and composite Form 1099 state-
ments specified in PART A, Section 7.02.
.03 Forms 1096, 1098, 1099, 5498,
and W–2G are subject to annual review
and possible change. Therefore, filers
are cautioned against overstocking sup-
plies of privately printed substitutes.
THE SPECIFICATIONS CONTAINED
IN THIS REVENUE PROCEDURE AP-
PLY TO 1997 FORMS ONLY.
.04 Proposed substitutes for Copy A
that do not conform to the specifications
in this revenue procedure are not accept-
able. Further, if you file such forms with
IRS, you may be subject to a penalty for
failure to file an information return
under section 6721 of the Internal Rev-
enue Code (IRC). Generally, the penalty
is $50 for each failure to file a form (up
to $250,000) that the IRS cannot accept
as a return because it does not meet the
provisions in this revenue procedure. No
IRS office is authorized to allow devia-
tions from this revenue procedure.
July 7, 1997
101997-27 I.R.B.

SEC. 4. DEFINITIONS
.01 The term ‘‘form recipient’’ means
the person to whom you are required by
law to furnish a copy of the official
form or information statement:i.e., for
Form 1098, the recipient is the ‘‘payer/
borrower’’; Form 1099–A, the ‘‘bor-
rower’’; Form 1099–C, the ‘‘debtor’’;
Form 1099–LTC, ‘‘the policyholder and
insured’’;Form1099–S,the
‘‘transferor’’; other Forms 1099, the
payment recipient; Forms 5498 and
5498–MSA, the ‘‘participant’’; and
Form W–2G, the ‘‘winner.’’
.02 The term ‘‘filer’’ means the per-
son or organization required by law to
file a form listed in Part A, Section 1.01
with the IRS. Thus, a filer may be a
payer, a creditor, a recipient of mortgage
interest payments, a broker, a barter
exchange, a person reporting real estate
transactions, a trustee or issuer of an
individual retirement arrangement (in-
cluding an IRA, SEP, or SIMPLE), a
trustee of a medical savings account, or
a lender who acquires an interest in
secured property or who has reason to
know that the property has been aban-
doned.
.03 The term ‘‘substitute form’’
means a paper substitute of Copy A of
an official form listed in Part A, Section
1.01 that totally conforms to the provi-
sions in this revenue procedure.
.04 The term ‘‘substitute form recipi-
ent statement’’ means a paper statement
of the information reported on a form
listed in PART A, Section 1.01 that must
be furnished to a person (form recipi-
ent), as so defined under the applicable
provisions of the Internal Revenue Code
and the applicable regulations.
.05 A composite substitute statement
is one in which two or more required
statements (e.g., Forms 1099–INT and
1099–DIV) are furnished to the recipient
on one document. However, each state-
ment must be separately designated and
must contain all the requisite Form 1099
information except as provided in Part
A, Section 7. A composite statement
MAY NOT be filed with the IRS. See
Part A, Section 7.02 and 7.04 for more
information on composite statements.
SEC. 5. INSTRUCTIONS FOR
PREPARING PAPER FORMS THAT
WILL BE FILED WITH THE IRS
(Copy A)
.01 The form recipient’s name, street
address, city, state, and Zip Code infor-
mation should be TYPED OR MA-
CHINE PRINTED IN BLACK INK on
separate lines. Although handwritten
forms will be accepted, in order for IRS
to process the submitted forms in the
most economical manner, the IRS pre-
fers that filers TYPE OR MACHINE
PRINT data entries. In addition, filers
should insert data in themiddle of
blockswell separated from other print-
ing and guidelines, and take other mea-
sures to guarantee a clear, dark black,
sharp image. Carbon copies and photo-
copies are not acceptable. The city,
state, and Zip Code must be on the
same line.
.02 The name of the appropriate form
recipient must be shown on the first or
second name line in the area on the
form provided for the form recipient’s
name and address. No descriptive infor-
mation or other name may precede the
form recipient’s name. OnlyONEform
recipient’s name may appear on the first
name line of the form. If the names of
multiple recipients must be set forth on
the form, on the first name line insert
the recipient name that corresponds to
the recipient taxpayer identification
number (TIN) shown on the form. Place
the other form recipients’ names, on the
succeeding name line (up to 2 name
lines are allowable). Because certain
states require that trust accounts be
provided in a different format,generally
filers should provide information returns
reflecting payments to trust accounts
with (1) the trust’s employer identifica-
tion number (EIN) in the recipient’s TIN
area, (2) the trust’s name on the recipi-
ent’s first name line, and (3) the name
of the trustee on the recipient’s second
name line.
.03 You should use theaccount
numberbox for an account number
designation. This number must not ap-
pear anywhere else on the form, and this
box may not be used for any other item.
Showing the account number is optional.
However, it may be to your benefit to
include the recipient’s account number
or designation on paper documents if
your system of records uses the account
number or designation in conjunction
with, or rather than, the name, social
security number, or employer identifica-
tion number for identification purposes.
If you furnish the account number, the
IRS will include it in future notices to
you about backup withholding. If you
use window envelopes and reduced rate
mail to mail statements to recipients, be
sure the account number does not ap-
pear in the window. Otherwise the
Postal Service may not accept them for
mailing.
.04 Machine printed forms should be
printed using a 6 lines/inch option, and
should be printed in 10 pitch pica (i.e.,
10 print positions per inch) or 12 pitch
elite (i.e., 12 print positions per inch).
Proportional spaced fonts are unaccept-
able.
.05 DO NOT use a felt tip marker.
The machine used to ‘‘read’’ paper
forms generally cannot ‘‘read’’ this ink
type.
.06 Substitute forms prepared in con-
tinuous or strip form must be burst and
stripped to conform to the size specified
for a single sheet before they are filed
with IRS. The size specifieddoes not
include pinfeed holes.Pinfeed holes
MUST NOT be present on forms filed
with the IRS.
.07 Use decimal points to indicate
dollars and cents.DO NOTuse dollar
signs ($), ampersands (&), asterisks (*),
commas (,), or other special characters
in the numbered money boxes. Example:
2000.00 is acceptable.
.08 DO NOT FOLD Forms 1096,
1098, 1099, or 5498 being mailed to
IRS. Mail these forms flat in an appro-
priately sized envelope or box. Folded
documents cannot be readily moved
through the scanner transport used in
IRS processing.
.09DO NOT STAPLEForms 1096
to the returns being transmitted. Staple
holes in the vicinity of the return code
number reduce the IRS’s ability to ma-
chine scan the type of documents.
.10DO NOTtype other information
on Copy A.DO NOTcut or separate
the individual forms on the sheet of
forms of Copy A (except Forms W–2G).
.11 MAIL completed paper forms to
the IRS service center specified on the
back of Form 1096 and in the 1997
‘‘Instructions for Forms 1099, 1098,
5498, and W–2G.’’ Specific information
needed to complete the forms in this
revenue procedure is given in those
instructions. A chart is included in those
instructions giving a quick guide to
which form must be filed to report a
particular payment.
SEC. 6. MAGNETIC MEDIA AND
ELECTRONIC FILING
.01 All forms listed in Section 1.01
(except Form 1096) may be filed mag-
netically or electronically. The IRS en-
courages all filers including nominees
(hereafter collectively referred to as fil-
ers) to file information returns on mag-
netic media or electronically instead of
on paper forms.
1997-27 I.R.B.
11July 7, 1997

.02 Any person who is required to
file 250 or more information returns (of
any one type of form) for one calendar
year MUST file on magnetic media
unless a hardship waiver is requested
and received. To request a one year
waiver of the magnetic media filing
requirements, for the current tax year
only, submit Form 8508, Request for
Waiver From Filing Information Returns
on Magnetic Media. See Publication
1220 Part A, Section 5, for more infor-
mation. Specifications for filing infor-
mation returns on magnetic media (or
electronically) are contained in Publica-
tion 1220, ‘‘Specifications for Filing
Forms 1098, 1099 Series, 5498, and
W–2G Magnetically or Electronically.’’
Copies of this publication may be ob-
tained by calling1–800–TAX–FORM
(1–800–829–3676).Payers who do not
comply with the magnetic media filing
requirements and who are not granted a
waiver may be subject to penalties.
Note:Filing electronically will satisfy
the magnetic media filing requirements.
Refer to Publication 1220, Part C,
Bisynchronous (Mainframe) Electronic
Filing Specifications and Part D, Asyn-
chronous (IRB–BBS) Electronic Filing
Specifications.
SEC. 7. SUBSTITUTE STATEMENTS
TO FORM RECIPIENTS AND FORM
RECIPIENT COPIES
If you are not using the official IRS
form to furnish statements to recipients,
your substitute statements must comply
with the rules in this section. In general,
see Regulations sections 1.6042–4,
1.6044–5, 1.6049–6, and 1.6050N–1 on
the manner in which certain statements
must be provided to recipients (state-
ment mailing requirements for most
Forms 1099–DIV and 1099–INT, all
Forms 1099–OID and 1099–PATR, and
Form 1099–MISC or 1099–S for royal-
ties). Note: A trustee of a grantor-type
trust may choose to file Forms 1099 and
furnish a statement to the grantor under
Regulations section 1.671–4(b)(2)(iii)
and (b)(3)(ii). The statement required by
those regulations is not subject to the
requirements in this Section 7.
.01 SUBSTITUTE STATEMENTS
TO RECIPIENTS - Forms 1099–INT
(except for interest reportable under sec-
tion 6041), 1099–DIV (except for sec-
tion 404(k) dividends), 1099–OID, and
1099–PATR ONLY. The requirement to
furnish Form recipients with an official
Form1099–INT, DIV, OID, or PATR
may be met by furnishing Copy B of
the official form or by furnishing a
substitute Form 1099 (form recipient
statement) if it contains the same lan-
guage as that of the official IRS form
(such as aggregate amounts paid to the
form recipient, any backup withholding,
the name, address, and TIN of the
person making the return, and any other
information required by the official
form). Information not required by the
official form should not be included on
the substitute form except state tax
withholding information. You may enter
a total of the individual accounts listed
on the form only if they have been paid
by the same payer. For example, if you
are listing interest paid on several ac-
counts by one financial institution on
Form 1099–INT, you may also enter
the total interest amount. You may also
enter a date next to the corrected box if
that box is checked.
The form recipient statement,i.e.,
Copy B of a substitute form forForms
1099–INT, 1099–DIV, 1099–OID, or
1099–PATR,must comply with the fol-
lowing requirements.
(1) Box captions and numbers that
are applicable must be clearly
identified, using the same word-
ing and numbering as on the
official form. However onForm
1099–INT, if box 3 is not on
your substitute form, you may
drop ‘‘not included in box 3’’
from the box 1 caption.
(2) The form recipient statement must
contain all applicable form recipi-
ent instructions provided on the
front and back of the official IRS
form. Those instructions may be
provided on a separate sheet of
paper.
(3) The form recipient statement must
contain the following statement in
bold and conspicuous type,‘‘This
is important tax information
and is being furnished to the
Internal Revenue Service. If you
are required to file a return, a
negligence penalty or other
sanction may be imposed on
you if this income is taxable
and the IRS determines that it
has not been reported.’’
(4) The box caption‘‘Federal in-
come tax withheld’’must be in
bold face type on the form recipi-
ent statement.
(5) The form recipient statement must
contain the Office of Management
and Budget (OMB) number as
shown on the official IRS form.
See Part D, Section 2.
(6) The form recipient statement must
contain the tax year (e.g., 1997),
form number (e.g., Form 1099–
INT), and form name (e.g., Inter-
est Income) of the official IRS
Form 1099 for which it substi-
tutes prominently displayed to-
gether in one area of the state-
ment. For example, the tax year,
form number, and form name
could be shown in the upper right
part of the statement. Each copy
must be appropriately labeled
(such as Copy B, For Recipient)
(see Part D, Section 1.02 for
applicablelabelsofforms).
NOTE:DO NOT include the
words ‘‘Substitute for’’ or ‘‘In
lieu of’’ on the form recipient
statement.
(7) Layout and format of the form is
at the discretion of the filer. How-
ever, IRS encourages the use of
statements with boxes so that the
statement has the appearance of a
form and can be easily distin-
guished from other nontax state-
ments.
(8) Because of new tax law enacted
in 1996, 1099–DIV; 1099–INT;
1099–OID; and 1099–PATR re-
cipient statements must include
the telephone number of a person
to contact:The telephone num-
ber must be conspicuous but
may appear anywhere on the
recipient statement.
(9) No additional enclosures, such as
advertising, promotional material,
or a quarterly or annual report,
are permitted with Forms 1099–
DIV,1099–INT,1099–OID,
1099–PATR, and forms reporting
royalties only (Forms 1099–MISC
or 1099–S).NOTE:The IRS in-
tends to amend the regulations to
allow the use of certain logos and
identifying slogans on substitute
statements to recipients that are
subject to the statement mailing
requirements. Until the new regu-
lations are issued, the IRS will
not assess penalties for the use of
a logo (including the name of the
payer in any typeface, font, or
stylized fashion and/or a symbolic
icon) or slogan on a statement to
a recipient if the logo or slogan is
used by the payer in the ordinary
course of its trade or business. In
addition, use of the logo or slogan
must not make it less likely that a
reasonable payee will recognize
July 7, 1997
121997-27 I.R.B.

the importance of the statement
for tax reporting purposes.
(10) With respect to dividend income,
a mutual fund family may sepa-
rately state on one document
(e.g., one piece of paper) the
dividend income earned by a
recipient from each fund within
the family of funds as required
by Form1099–DIV. However,
each fund and its earnings must
be separately stated. The form
must contain an instruction to
the recipient that each fund’s
dividends and name, not the
name of the mutual fund family,
must be reported on the recipi-
ent’s tax return.The form can-
not contain an aggregate total
of all funds.Moreover, a mutual
fund family may furnish a single
statement (as a single filer) for
Forms 1099–INT, DIV, and OID
information. Each fund and its
earnings must be separately
stated. The form must contain an
instruction to the recipient that
each fund’s earnings and name,
not the name of the mutual fund
family, must be reported on the
recipient’s tax return. The form
cannot contain an aggregate total
of all funds.
.02 COMPOSITESUBSTITUTE
STATEMENTS -FORMS 1099–INT
(except for interest reportable under
section 6041), 1099–DIV (except for
section 404(k) dividends)), 1099–OID,
AND 1099–PATR ONLY. -A compos-
ite form recipient statement is permitted
for reportable payments of interest, divi-
dends, original issue discount, and/or
patronage dividends (Forms 1099–INT,
DIV, OID or PATR) when one payer is
reporting more than one of these pay-
ments during a calendar year to the
same form recipient. Generally, do not
include any other Form 1099 informa-
tion (e.g., 1098 or 1099–A) on a com-
posite statement with the information
required on the forms listed in the
preceding sentence.Exception:A filer
may include Form 1099–B information
on a composite form with the forms
listed above. Although the composite
form recipient statement may be on one
sheet, the format of the composite form
recipient statement must satisfy the fol-
lowing requirements in addition to the
requirements listed in Section 7.01
above.
(1) All information pertaining to a
particular type of payment must
be located and blocked together
on the form and must be separate
from any information covering
other types of payments included
on the form. For example, if you
are reporting interest and divi-
dends, theForm 1099–INTinfor-
mation must be presented sepa-
rately from theForm 1099–DIV
information.
(2) The tax year, form number, and
form name of the official IRS
forms for which the composite
form recipient statement substi-
tutes must be prominently dis-
played together in one area at the
beginning of each appropriate
block of information.
(3) Any information required by the
official IRS forms that would oth-
erwise be repeated in each infor-
mation block is only required to
be listed once in the first informa-
tion block on the composite form.
For example, there is no require-
ment to report the name of the
filer in each information block.
This rule does not apply to any
money amounts,e.g., Federal in-
come tax withheld, or to any
other information that applies to
money amounts.
(4) A composite statement shall be
considered an acceptable substi-
tute only if the type of payment
and the recipient’s tax obligation
with respect to the payment are
no less clear than if each required
statement were furnished sepa-
rately on an official form.
.03 SUBSTITUTE STATEMENTS
TO RECIPIENTS - FORMS 1098,
1099–A, 1099–B, 1099–C, 1099–G,
1099–LTC, 1099–MISC, 1099–MSA,
1099–R, 1099–S, 5498, 5498–MSA,
W–2G, AND CERTAIN FORMS 1099–
INT AND 1099–DIV. Statements to
form recipients of payments reportable
onForms 1098, 1099–A, 1099–B,
1099–C, 1099–G, 1099–LTC, 1099–
MISC, 1099–MSA, 1099–R, 1099–S,
5498, 5498–MSA 1099–DIV only for
section 404(k) dividends reportable
under section 6047, and 1099–INT
only for interest of $600 or more
made in the course of a trade or
business reportable under section
6041can be, but are not required to be,
copies of the official forms. If you do
not use the official form as the form
recipient statement, the substitute recipi-
ent statement must meet the following
requirements:
(1) The tax year, form number, and
form name must be the same as
the official form, and must be
prominently displayed together in
one area of the statement. For
example, they may be shown in
the upper right part of the state-
ment.
(2) The filer’s and the form recipi-
ent’s identifying information re-
quired on the official IRS form
must be included.
(3) Because of new tax law enacted
in 1996, the following statements
must include the telephone num-
ber of a person to contact: W–2G;
1098; 1099–A; 1099–B; 1099–
DIV; 1099–G (excluding state and
local income tax returns); 1098–
INT; 1099–MISC (excluding fish-
ing boat proceeds); 1099–0ID;
1099–PATR; and 1099–S.The
telephone number must be con-
spicuous but may appear any-
where on the recipient state-
ment.Although not required,
payers reporting on other Forms
1099 and 5498 are encouraged to
furnish telephone numbers.
(4) All applicable money amounts
and information, including box
numbers, required to be reported
to the form recipient must be
titled on the form recipient state-
ment in substantially the same
manner as those on the official
IRS form. The box caption‘‘Fed-
eral income tax withheld’’must
be in bold face type on the form
recipient statement.Exception:If
you are reporting a payment as
‘‘Other income’’ in box 3 of
Form 1099–MISC,you may sub-
stitute appropriate explanatory
language for the box title. For
example, for payments of accrued
wages and leave to a beneficiary
of a deceased employee, you
might change the title of box 3 to
‘‘Beneficiary payments’’ or some-
thing similar. (You cannot make
this change on Copy A.)
(5) Appropriate instructions to the
form recipient, similar to those on
the official IRS form, must be
provided to aid in the proper
reporting of the items on the form
recipient’s income tax return. For
payments reported onForm
1099–B,the requirement to in-
clude instructions that are sub-
stantially similar to those on the
official IRS form may be satisfied
by providing form recipients with
a single set of instructions with
respect to all forms 1099–B state-
1997-27 I.R.B.
13July 7, 1997

ments required to be furnished in
a calendar year.NOTE:If Fed-
eral income tax withheld is shown
onForm 1099–R or W–2G,
Copy B (to be attached to the tax
return)andCopyC(for
recipient’s/winner’s records)must
be furnished to the recipient. If
Federal income tax withheld is
not shown onForm 1099–R or
W–2G,only Copy C is required
to be furnished. However, instruc-
tions similar to those contained
on the back of the official Copy
B and Copy C ofForm 1099–R
must be furnished to the recipient.
For convenience, you may choose
to provide both Copies B and C
of Form 1099–R to the recipient.
(6) The quality of carbon used to
produce statements to recipients
must meet the following stan-
dards:
(a) all copies must beCLEARLY
LEGIBLE;
(b) all copies must have the capa-
bility to be photocopied;
(c) fading must not be of such a
degree as to preclude legibility
and the ability to photocopy. In
general, black chemical transfer
inks are preferred; other colors
are permitted only if the above
standards are met. Hot wax and
cold carbon spots areNOTper-
mitted on any of the internal
form plies. These spots are per-
mitted on the back of a mailer
top envelope ply.
(7) A mutual fund family may sepa-
rately state on one document
(e.g., one piece of paper) the
Form1099–Binformation for a
recipient from each fund as re-
quired byForm 1099–B.How-
ever, the gross proceeds,etc.,
from each transaction within a
fund must be separately stated.
The form must contain an instruc-
tion to the recipient that each
fund’s amount and name, not the
name of the mutual fund family,
must be reported on the recipi-
ent’s tax return. The form cannot
contain an aggregate total of all
funds.
(8) ForForm 1099–S,you may use a
Uniform Settlement Statement un-
der the Real Estate Settlement
Procedures Act of 1974 (RESPA)
as the written statement to the
transferor if it is conformed by
including on the statement the
legend described in (8)(g) below
and by designating which infor-
mation on the Uniform Settlement
Statement is being reported to
IRS onForm 1099–S.
(9) Form recipient statements must
contain the following legends:
(a)Form 1098—(i) ‘‘The informa-
tion in boxes 1, 2 and 3 is
important tax information and
is being furnished to the Inter-
nal Revenue Service. If you are
required to file a return, a neg-
ligence penalty or other sanc-
tion may be imposed on you if
the IRS determines that an un-
derpayment of tax results be-
cause you overstated a deduc-
tion for this mortgage interest
or for these points or because
you did not report this refund
of interest on your return.’’
(ii) ‘‘The amount shown may
not be fully deductible by you
on your Federal income tax
return. Limitations based on the
cost and value of the secured
property may apply. In addi-
tion, you may only deduct an
amount of mortgage interest to
the extent it was incurred by
you, actually paid by you, and
not reimbursed by another per-
son.’’
(b)Forms 1099–A and 1099–C—
‘‘This is important tax informa-
tion and is being furnished to
the Internal Revenue Service. If
you are required to file a re-
turn, a negligence penalty or
other sanction may be imposed
on you if taxable income re-
sults from this transaction and
the IRS determines that it has
not been reported.’’
(c)Forms 1099–B, 1099–DIV,
1099–G, 1099–INT, 1099–
MISC,1099–OID,1099–
PATR, and W–2G, Copy
B—‘‘This is important tax in-
formation and is being fur-
nished to the Internal Revenue
Service. If you are required to
file a return, a negligence pen-
alty or other sanction may be
imposed on you if this income
is taxable and the IRS deter-
mines that it has not been re-
ported.’’ Copy B ofForm
W–2Gmust state ‘‘This infor-
mation is being furnished to the
Internal Revenue Service. Re-
port this income on your Fed-
eral tax return. If this form
shows Federal income tax with-
held in box 2, attach this copy
to your return.’’
(d)Form 1099–R, Copy B—‘‘Re-
port this income on your Fed-
eral tax return. If this form
shows Federal income tax with-
held in box 4, attach this copy
to your return. This information
is being furnished to the Inter-
nal Revenue Service.’’Form
1099–R, Copy C—‘‘This infor-
mation is being furnished to the
Internal Revenue Service.’’
(e)Form1099–LTC,Copy
B—‘‘This is important tax in-
formation and is being fur-
nished to the Internal Revenue
Service. If you are required to
file a return, a negligence pen-
alty or other sanction may be
imposed on you if this item is
required to be reported and the
IRS determines that it has not
beenreported.’’Copy
C—‘‘Copy C is provided to
you for information only. Only
the policyholder is required to
report this information on a tax
return.’’
(f)Form 1099–MSA— ‘‘This in-
formation is being furnished to
the Internal Revenue Service.’’
(g)Form 1099–S—‘‘This is im-
portant tax information and is
being furnished to the Internal
Revenue Service. If you are
required to file a return, a neg-
ligence penalty or other sanc-
tion may be imposed on you if
this item is required to be re-
ported and the IRS determines
that it has not been reported.’’
(h)Form 5498—‘‘The information
in boxes 1 through 7 is being
furnished to the Internal Rev-
enue Service.’’ ‘‘Note:If you
do not furnish another state-
ment to the participant because
no contributions were made for
the year, the statement of the
fair market value of the ac-
count must contain a legend
designating which information
is being furnished to the Inter-
nal Revenue Service.’’
(i)Form 5498–MSA—‘‘The infor-
mation in boxes 1 through 5 is
being furnished to the Internal
Revenue Service.’’
.04 COMPOSITESUBSTITUTE
STATEMENT - FORMS SPECIFIED IN
7.03 ONLY. - A composite form recipi-
ent statement for forms specified in 7.03
July 7, 1997
141997-27 I.R.B.

is permitted when one filer is reporting
more than one of the related payments
during a calendar year to the same form
recipient. A composite statement is not
allowable for a combination of forms
listed in 7.01 and forms listed in 7.03
except that a filer may reportForm
1099–Binformation on a composite
form with the forms listed in 7.01 as
described in 7.02. Although the compos-
ite form recipient statement may be on
one sheet, the format of the composite
form recipient statement must satisfy the
requirements listed in 7.02 above in
addition to the requirements specified in
7.03. A composite statement ofForms
1098 and 1099–INT(for interest report-
able under section 6049) IS NOT AL-
LOWABLE.
PART B - SPECIFICATIONS FOR
SUBSTITUTE FORMS TO BE FILED
WITH IRS (EXCEPT Form W–2G)
SEC. 1. GENERAL
.01 The following specifications pre-
scribe the format requirements for
Forms 1096and Copy A ofForms
1098, 1099, and 5498. (See Part C for
Form W–2G specifications.)
.02 The form identifying number
(e.g., 9191 forForm 1099–DIV) must
be printed in nonreflective black carbon-
based ink in print positions 15 through
19usinganOCR A font.The
checkboxes located to the right of the
form identifying number must be 10–
point boxes, the void checkbox is in
print position 25 and the corrected
checkbox in position 33. These measure-
ments are from the left edge of the
paper, not including the perforated strip.
SEC. 2. SPECIFICATIONS FOR
FORM 1096 AND COPY A OF
FORMS 1098, 1099 AND 5498
.01 The substitute form must be an
exact replica of the official IRS form
with respect to layout and content.
NOTE:To determine the correct form
measurements, see Exhibits A through R
at the end of this publication. Hot wax
and cold carbon spots are not permitted
on any of the internal form plies. These
spots are permitted on the back of a
mailer top envelope ply. Use of chemi-
cal transfer paper for Copy A is accept-
able. The Government Printing Office
(GPO) symbol must be deleted.
.02 Color and quality of paper for
Copy A (cut sheets and continuous
pinfeed forms) as specified by JCP Code
0–25, dated November 29, 1978, must
be white 100% bleached chemical wood,
optical character recognition (OCR)
bond produced in accordance with the
following specifications:
NOTE:Reclaimed fiber in any per-
centage is permitted provided the re-
quirements of this standard are met.
(1)
Acidity: Ph value, average,
not less than . . . . . . . . . . . . 4.5
(2) Basis Weight 17 x 22 500
cut sheets . . . . . . . . . . . . . . 18–20
Metric equivalent—2g/m2 75
A Tolerance of ±5 pct.
shall be allowed.
(3) Stiffness: Average, each
direction, not less than—
milligrams . . . . . . . . . . . . . . 50
(4) Tearing strength: Average,
each direction, not less
than—grams . . . . . . . . . . . . 40
(5) Opacity: Average, not less
than—percent . . . . . . . . . . . 82
(6) Thickness: Average—
inch—0.0038
Metric equivalent—
mm—0.097
A tolerance of +0.0005
inch (0.0127 mm) shall
be allowed.
Paper shall not vary more
than 0.0004 inch (0.0102
mm) from one edge to
the other.
(7) Porosity: Average, not less
than—seconds . . . . . . . . . . . 10
(8) Finish (smoothness): Aver-
age, each side—seconds. . . 20–55
For information only, the
Sheffield equivalent—units 170–100
(9) Dirt: Average, each side,
not to exceed—parts per
million . . . . . . . . . . . . . . . . . 8
.03 All printing on Copy A of Forms
1098, 1099, and 5498 must be in red
OCR dropout ink, Flint J–6983 (for-
merly Sinclair-Valentine) or an exact
match, except for the 4–digit form iden-
tifying numbers, which must be printed
in non-reflective carbon-based black ink.
The shaded areas of any substitute form
should generally correspond to that
present on the official form. Printing on
Form 1096above the statement:
‘‘Please return this entire page to the
Internal Revenue Service. Photocopies
are NOT acceptable.’’must be in red
OCR dropout ink (except for the 4-digit
form identifying number 6969). All
printing including and below the Form
1096 statement may be in any shade or
tone of black ink. Black ink should only
appear on the lower portion of the
reverse side ofForm 1096where it
would not bleed through and interfere
with scanning.NOTE:The instructions
on the back of Form 1096, which in-
clude filing addresses, must be printed.
The instructions to filers are printed on
the back of the copy designated for the
Payer, Recipient for Form 1098, Lender
for Form 1099–A, Creditor for Form
1099–C, Filer for Form 1099–S, or
Trustee or Issuer for Forms 5498 and
Form 5498–MSA, in any ink color or
tone. Separation between fields must be
0.1 inch. Other than the Form 1099–R,
the numbered captions are printed as a
solid with no shaded background. Other
printing requirements are discussed be-
low.
OCR Specifications
The contractor must have or initiate a
quality control program to assure OCR
ink density. In addition, the contractor
must have access to either a MacBeth
PCM–II tester or a Kidder 082A tester
to evaluate the ink at regular intervals
throughout a shift.
Paper and Ink
Readings will be made when printed
on approved 20 lb. white OCR bond
with a reflectance of not less than 80%.
Black ink used must not have a reflec-
tance greater than 15%. These readings
are based on requirements of the ‘‘REI
Input 80 Model C1 & D’’ Optical
Scanner using Flint Ink (Formerly
known as Sinclair - Valentine J–6983
red ink) or equal.
MacBeth PCM II Tester
The tested Print Contrast Signal
(PCS) values when using the MacBeth
PCM–II tester on the ‘‘C’’ scale must
range from .01 minimum to .06 maxi-
mum.
Kidder 082A Tester
The tested Print Contrast Signal
(PCS) values when using the Kidder
082A tester on the Infra Red (IR) scale
must range from .12 minimum to .21
maximum. White calibration disc must
be 100%, sensitivity must be set at one
(1).
1997-27 I.R.B.
15July 7, 1997

Alternative Tester
If an alternative tester is used it must
be approved by the Government so that
tested (PCS) values can be established
with this equipment. Approval may be
obtained by writing to the following
address:
Commissioner of Internal Revenue
Attn: HR:F:P:P Room 1237
Tax Forms Procurement Analyst
1111 Constitution Avenue, NW
Washington, DC 20224
.04 Typography - Type must be sub-
stantially identical in size and shape
with corresponding type on the official
form. All rules are either 1/2–point or
3/4–point. Rules must be identical to
that on the official IRS form. NOTE:
The form identifying number must be
nonreflective carbon-based black ink in
OCR A Font.
.05 Dimension - Three Forms 1098,
1099, or 5498 (Copy A) are contained
on a single page, except Form 1099–R,
which contains two documents per page,
which is 8 inches wide (exclusive of
any snap-stubs and/or pinfeed holes) by
11 inches deep. There is a .33 inch top
margin from the top of the corrected
box, and there is a .25 inch right
margin. There is a 1/329(0.03139) toler-
ance for the right margin. These mea-
surements are constant for allForms
1098, 1099 and 5498.The measure-
ments will be shown only once in the
exhibit section of this publication, on
theForm 1098.Exceptions to these
measurements will be shown on the
remainder of exhibits. If the right and
top margins are properly aligned, the
left margin for all forms will be correct.
All margins must be free of all printing.
See Exhibits A through R in this publi-
cation for the correct form measure-
ments.
.06 The depth of the individual trim
size of each form on a page must be the
same as that of the official form (3 2/3
inches, except 5 1/2 inches for Form
1099–R).
.07 The words ‘‘For Paperwork Re-
duction Act Notice and instructions for
completing this form, see theInstruc-
tions for Forms 1099, 1098, 5498, and
W–2G’’mustbe printed on Copy A. The
words ‘‘For more information and the
Paperwork Reduction Act Notice, see
the 1997 Instructions for Forms 1099,
1098, 5498, and W–2G’’mustbe
printed on Form 1096.
.08 The OMB Numbermustbe
printed on Copies A and Form 1096 in
the same location as that on the official
form.
.09Privately printed continuous sub-
stitute forms (Copy A) must be perfo-
rated at each 119(3 per page, or 2 per
page for 1099–R) page depth. No perfo-
rations are allowed between the 3–2/39
forms (or 5–1/29for Form 1099–R) on a
single copy page of Copy A.
.10 The words ‘‘Do NOT Cut or
Separate Forms on This Page’’ must be
printed in red dropout ink (as required
by form specifications) between the
three forms, or two forms forForms
1099–R.NOTE: Perforations are re-
quired between all the other individual
copies (Copies B and C, and Copies 1
and 2 forForm 1099–R and Form
1099–MISC,and Copy D forForm
1099–R) included in the set.
.11 Chemical transfer paper is permit-
ted for Copy A only if the following
standards are met:
(1) Only chemically backed paper
is acceptable for Copy A.
(2) Carbon coated forms are not
permitted. Front and back chemically
treated paper cannot be processed prop-
erly by machine.
(3) Chemically transferred images
must be black in color.
.12 Hot wax and cold carbon spots
are NOT permitted for Copy A. Inter-
leaved carbon should be black and must
be of good quality to assure legibility of
information on all copies to preclude
smudging.Allcopiesmustbe
CLEARLY LEGIBLE. Fading must not
be of such a degree as to preclude
legibility.
.13 Printer’s symbol—The GPO sym-
bol must not be printed on substitute
Copy A. Instead, the employer identifi-
cation number (EIN) of the forms
printer must be entered in the bottom
margin on the face of each individual
form of Copy A, or the bottom margin
on the reverse side of each Form 1096.
THE FORM MUST NOT CONTAIN
THESTATEMENT‘‘IRSAP-
PROVED.’’
.14 A postal indicia may be used if it
meets the following criteria: a) it is
printed in the OCR ink color prescribed
for the form; and b) no part of the
indicia is within 1 print position of the
scannable area.
.15 The Catalog Number (Cat. No.)
shown on the 1997 forms is used for
IRS distribution purposes and need not
be printed on any substitute forms.
PART C. SPECIFICATIONS FOR
SUBSTITUTE FORMS W–2G TO BE
FILED WITH IRS
SEC. 1. GENERAL
.01 The following specifications pre-
scribe the format requirements forForm
W–2G—COPY A ONLY.
.02 A filer may file a substituteForm
W–2Gwith the IRS (hereinafter re-
ferred to as ‘‘substitute Copy A’’). The
substitute form (filed with the IRS) must
be an exact replica of the official form
with respect to layout and contents.
SEC. 2. SPECIFICATIONS FOR
COPY A OF FORMS W–2G
.01 Color and Quality of Paper—
Paper for Copy A must be white chemi-
cal wood bond, or equivalent, 20 pound
(basis 17 X 22–500), plus or minus 5
percent. The paper must consist substan-
tially of bleached chemical wood pulp
and be free from unbleached or ground
wood pulp or recycled printed paper. It
also must be suitably sized to accept ink
without feathering.
.02 Color and Quality of Ink—All
printing must be in a high quality
non-gloss black ink. Bar codes should
be free from picks and voids.
.03 Typography—The type must be
substantially identical in size and shape
with that on the official form. All rules
on the document are either 1/2 point
(.007 inch), 1 point (0.015 inch), or 3
point (0.045). Vertical rules must be
parallel to the left edge of the docu-
ment; horizontal rules, to the top edge.
.04 Dimensions—The official form is
8 inches wide x 3–2/3 inches deep,
exclusive of a 2/3 inch snap stub on the
left side of the form. The snap feature is
not required on substitutes. The top and
right margins must be 1/4 inch plus or
minus .0313. If the top and right mar-
gins are properly aligned, the left mar-
gin for all forms will be correct. All
margins must be free of any printing. If
the substitute forms are in continuous or
strip form, they must be burst and
stripped to conform to the size specified
for a single form.
(1) The width of a substitute Copy
A must be 8 inches. The left margin
must be free of all printing other than
that shown on the official form.
(2) The depth of a substitute Copy
A must be 3–2/3 inches.
.05 Hot wax and cold carbon spots
are not permitted on any of the internal
form plies. These spots are permitted on
July 7, 1997
161997-27 I.R.B.

the back of a mailer top envelope ply.
Interleaved carbons, if used, should be
black and of good quality to preclude
smudging.
.06 Printer’s Symbol—The Govern-
ment Printing Office (GPO) symbol
must not be printed on substitute Forms
W–2G. Instead the employer identifica-
tion number (EIN) of the forms printer
must be printed in the bottom margin on
the face of each individual form of
Copy A of such substitute forms. The
form must not contain the statement
‘‘IRS approved.’’
.07 The Catalog Number (Cat. No.)
shown on the 1997 Form W–2G is used
for IRS distribution purposes and need
not be printed on any substitute forms.
PART D. ADDITIONAL
INSTRUCTIONS FOR FORMS 1098,
1099, 5498, AND W–2G
SEC. 1. OTHER COPIES
.01 Copies B, C, and in some cases
D, 1, and 2, are included in the official
assembly for the convenience of the
filer. There is no legal requirement that
privately printed substitute forms in-
clude all these copies. Copies B, and in
some cases Copies C, will satisfy the
requirement of the law and regulations
concerning the statement of information
that is required to be furnished to the
form recipient.NOTE:If Federal in-
come tax withheld is shown onForm
W–2G or 1099–R,Copy B (to be
attached to the tax return) and Copy C
mustbe furnished to the recipient. Copy
D (Forms 1099–R and W–2G) may be
desired as a filer record copy. Only
Copy A should be filed with the IRS.
.02 Arrangement of Assembly - The
parts of the assembly must be arranged,
from top to bottom, as follows: (a) All
forms-Copy A ‘‘For Internal Revenue
Service Center.’’ (b) Form 1098 - Copy
B ‘‘For Payer’’; Copy C ‘‘For Recipi-
ent.’’ (c) Form 1099–A - Copy B ‘‘For
Borrower’’; Copy C ‘‘For Lender.’’ (d)
Form 1099–C Copy B ‘‘For Debtor’’;
Copy C ‘‘For Creditor’’; (e) Form
1099–LTC Copy B ‘‘For Policyholder’’;
Copy C ‘‘For Insured’’ and Copy D
‘‘For Payer.’’ (f) Forms 1099–B, 1099–
DIV, 1099–G, 1099–INT, 1099–MSA,
1099–OID, and 1099–PATR - Copy B
‘‘For Recipient’’; Copy C ‘‘For Payer.’’
(g) Form 1099–MISC — Copy 1 ‘‘For
State Tax Department’’; Copy B ‘‘For
Recipient’’; Copy 2 ‘‘To be filed with
recipient’s state income tax return, when
required.’’; Copy C ‘‘For Payer.’’ (h)
Form 1099–R - Copy 1 ‘‘For State, City,
or Local Tax Department’’; Copy B
‘‘Report this income on your Federal tax
return. If this form shows Federal in-
come tax withheld in box 4, attach this
copy to your return.’’; Copy C ‘‘For
Recipient’s Records’’; Copy 2 ‘‘File this
copy with your state, city, or local
income tax return, when required.’’;
Copy D ‘‘For Payer.’’ (i) Form 1099–S -
Copy B ‘‘For Transferor’’; Copy C ‘‘For
Filer.’’ (j) Form 5498 - Copy B ‘‘For
Participant’’; Copy C ‘‘For Trustee or
Issuer.’’ (k) Form 5498–MSA — Copy
B ‘‘For Participant’’; Copy C ‘‘For
Trustee.’’ (l) Form W–2G — Copy 1
‘‘For State Tax Department’’; Copy B
‘‘Report this income on your Federal tax
return. If this form shows Federal in-
come tax withheld in box 2, attach this
copy to your return.’’ Copy C ‘‘For
Winner’s Records’’; Copy 2 ‘‘Attach
this copy to your state income tax
return, if required.’’; Copy D ‘‘For
Payer.’’
.03 Perforations are required between
forms on all copies except Copy A to
enable the separation of individual
forms. Copy A of Form W–2G may be
perforated.
SEC. 2. OMB REQUIREMENTS
.01 Office of Management and Bud-
get (OMB) Requirements for Substitute
Forms—Public Law 96–511 requires
that: (1) OMB approve Internal Revenue
Service tax forms, (2) each form show
(in the upper right corner) the OMB
approval number, and (3) the form (or
its instructions) state why IRS is collect-
ing the information, how it will be used
and whether it must be given to IRS.
The official IRS forms or instructions
contain this information and any substi-
tute must contain it also.
.02 The OMB requirements for sub-
stitute IRS forms are:
(1) All substitute forms,including
substitute statements to recipients,
must show the OMB number as it
appears on the official IRS form;
(2) For Copy A, the OMB number
must appear exactly as shown on the
official IRS form;
(3) For any copy other than Copy
A, the OMB number must use one of
the following formats:
(a) OMB No. XXXX–XXXX
(preferred) or;
(b) OMB # XXXX–XXXX.
(4) All substitute forms (Copy A
only) must state ‘‘For Paperwork Reduc-
tion Act Notice, see the 1997 Instruc-
tions for Forms 1099, 1098, 5498, and
W–2G.’’
.03 The official OMB numbers may
be obtained from the official IRS
printed forms, and are also shown on
the forms in the exhibits.
SEC 3. REPRODUCIBLE COPIES
.01 As of April 30, 1996, IRS discon-
tinued taking orders for reproducible
and information copies of federal tax
materials. However, there are several
new options available to obtain federal
tax material. The new options are:
(1)Internal Revenue Information
Services(IRIS)—IRISis
housedwithinFedWorld,
known also as the Electronic
Marketplace of U.S. Govern-
ment Information. IRIS at
FedWorld can be reached by:
(a) Modem (dial up) at 703–
321–8020,
(b) by Internet - Telnet to
iris.irs.ustreas.gov
(c) by File Transfer Protocol
(FTP)connectto-
ftp.irs.ustreas.gov
(d) or by World Wide Web -
http://www.irs.ustreas.gov
(2)IRS Federal Tax Forms CD–
ROM—The IRS also offers an
alternativetodownloading
electronic files from IRIS and
provides prior-year access to
tax forms and instructions
through it’s Federal Tax Forms
CD–ROM. First offered during
1994, the CD will again be
available for the upcoming fil-
ing season. For system require-
ments and to order the 1997
Federal Tax Forms CD–ROM
contact the Government Print-
ing Office’s (GPO’s) Superin-
tendent of Documents either:
(a) by telephone 202–521–1800;
or
(b) electronically through GPO’s
Federal Bulletin Board on
202–512–1387.
(3)Government Printing Office
Superintendent of Documents
Bookstores—The Government
Printing Office Superintendent
of Documents Bookstores also
sell individual copies of tax
forms, instructions and publica-
tions. Call 202–521–1800 to
find the bookstore nearest to
you.
1997-27 I.R.B.
17July 7, 1997

.02 Forms 1096, 1098, 1099 Series,
and 5498 are provided electronically on
the IRS home page, IRIS bulletin board
system, and on the Federal Tax Forms
CD–ROM, butCANNOTbe used for
filing with IRS when printed from a
conventional printer. These forms con-
tain drop-out ink requirements as de-
scribed in Part B, Section 2 of this
publication.
SEC. 4. EFFECT ON OTHER
REVENUE PROCEDURES
Revenue Procedure 96–42, 1996–32
I.R.B. 14, covering paper returns and
statements for payments made during
the 1996 calendar year is hereby super-
seded.
July 7, 1997
181997-27 I.R.B.

1997-27 I.R.B.19July 7, 1997

July 7, 1997201997-27 I.R.B.

1997-27 I.R.B.21July 7, 1997

July 7, 1997221997-27 I.R.B.

1997-27 I.R.B.23July 7, 1997

July 7, 1997241997-27 I.R.B.

1997-27 I.R.B.25July 7, 1997

July 7, 1997261997-27 I.R.B.

1997-27 I.R.B.27July 7, 1997

July 7, 1997281997-27 I.R.B.

1997-27 I.R.B.29July 7, 1997

July 7, 1997301997-27 I.R.B.

1997-27 I.R.B.31July 7, 1997

July 7, 1997321997-27 I.R.B.

1997-27 I.R.B.33July 7, 1997

July 7, 1997341997-27 I.R.B.

1997-27 I.R.B.35July 7, 1997

July 7, 1997361997-27 I.R.B.

Part IV. Items of General Interest
Foundations Status of Certain
Organizations
Announcement 97–67
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:
Aldeen Foundation, Torrance, CA
Aslan Institute for Contemporary
Christianity, Bellingham, WA
Aura Community Hall Association,
Lanse, MI
Aurora Communities, Inc., Fullerton,
CA
Austin Police Womens Association,
Austin, TX
Brockton Charitable Trust, Brockton,
MA
Brush Country Foster Parent
Association, Beeville, TX
Bryan-College Station Waldorf School
Association, Incorporated, College
Station, TX
Communication Equipment Board,
Grand Junction, CO
Communities in Schools Fort Worth,
Inc., Fort Worth, TX
Community Based Services,
Swampscott, MA
Community Reintegration Services, Fort
Collins, CO
Community Services Center of Marin
County, Inc., San Rafael, CA
Community Theatre League Inc.,
Williamsport, PA
Comprehensive Rehabilitation Services,
Newark, CA
Concerned Citizens for a Clean
Environment, Portsmouth, RI
Congress of Chiropractic Consultants,
Inc., Austin, TX
Conservative Baptist Retirement
Services of the Southwest, Inc.,
Phoenix, AZ
Contreras Therapeutic Foster Home,
Inc., Keene, TX
Cooper Ministries, Inc., Winona, TX
Destiny Productions Inc., Orange, NJ
Disability International USA, Oakland,
CA
Dovetail Ministries, Colorado Springs,
CO
Eclipse Foundation Inc., Indianapolis,
IN
Elder Rights Coalition, Leawood, KS
Elmore County Association of Foster
Parents, Elmore, AL
Evans Chapel Foundation, Bennettsville,
SC
Federal Institute of Health, Darnestown,
MD
Florida Cultural Exhibitions Inc., St.
Petersburg, FL
Foundation for Family Development,
Denver, CO
Friends of Rye Town Park, Inc., Rye,
NY
Friends of Sausalito Parks and
Recreation, Sausalito, CA
Friends of Swaziland, New York, NY
Friends of Temescal, Inc., Corona, CA
Friends of the Brentwood Public
Library, Brentwood, NY
Gulf Coast Emergency Response Team,
Inc., Houston, TX
Gulf Coast Repertory Theatre Company,
Beaumont, TX
Housing Foundation, Yakima, WA
Houston Croquet Classic, Houston, TX
Houston Knights Baseball Association,
Bellaire, TX
Impact Ministries Inc., Evansville, IN
Islam United, Pasadena, CA
Island Medical Mission, North Brook,
IL
Jerome R. Mix Foundation, Cupertino,
CA
Justice Science Fiction and Fantasy
Convention, Garland, TX
J.W.F. for Youths Foundation, Inc., New
Haven, CT
JWS Associates, Inc., Dayton, OH
Kentucky Playwrights Theatre Co.,
Louisville, KY
Kids Core International, Inc.,
Hawthorne, CA
Little Missions, Wheatley Heights, NY
Los Sures Sip Housing Development
Fund Corporation, Brooklyn, NY
Massachusetts AIDS Discrimination
Initiative, Inc., Boston, MA
Massachusetts High Technology
Employment Library, Inc., Woburn,
MA
Massachusetts One Church One Child
Coalition, Inc., Boston, MA
Multicare Foundation, Inc., Gaffney, SC
Rothstein Family Foundation for
Educational Advancement, Sun
Valley, CA
Rubonia Community Center, Palmetto,
FL
Ruiz for Kids Inc., Dinuba, CA
Students for the Advancement of Health
Care in India, Baltimore, MD
Success Foundation, Seattle, WA
Sunnyside Elementary PTO, Idaho Falls,
ID
Support Center Executive Service Corps,
San Diego, CA
Support Future Wolverines, Eugene, OR
Susitna Valley Parent-Teacher
Organization, Talkeetna, AK
University Success Consortium Inc.,
Cincinnati, OH
Urban Access Inc., Brooklyn, NY
Voice, Manhattan Beach, CA
Voice of Hope Inc., Grants Pass, OR
Voice of Insurance Consumer Education
Foundation, Redondo Beach, CA
Volunteers in Moscow-VIM, Moscow,
ID
Vons-Utla Dial-A-Teacher Foundation
Inc., Los Angeles, CA
World of Endangered Species, Shingle
Springs, CA
Worldwide Videos Inc., Boise, ID
Writers International Network-Writers
Inter-Age Network, Fresno, CA
Youth Escaping the Streets, Glendale,
CA
Z Collective, San Francisco, CA
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 con-
tributors may thereafter rely upon such
ruling or determination letter as pro-
vided in section 1.509(a)–7 of the
Income Tax Regulations. It is not
the practice of the Service to announce
such revised classification of foundation
status in the Internal Revenue Bulletin.
1997–27 I.R.B.37July 7, 1997

Announcement of the Expedited Suspension of Attorneys, Certified Public
Accountants, Enrolled Agents, and Enrolled Actuaries From Practice Before the
Internal Revenue Service
Under title 31 of the Code of Federal
Regulations, section 10.76, the Director
of Practice is authorized to immediately
suspend from practice before the Inter-
nal Revenue Service any practitioner
who, within five years, from the date
the expedited proceeding is instituted,
(1) has had a license to practice as an
attorney, certified public accountant, or
actuary suspended or revoked for cause;
or (2) has been convicted of any crime
under title 26 of the United States Code
or, of a felony under title 18 of the
United States Code involving dishonesty
or breach of trust.
Attorneys, certified public accoun-
tants, enrolled agents, and enrolled actu-
aries are prohibited in any Internal Rev-
enue Service matter from directly or
indirectly employing, accepting assis-
tance from, being employed by, or shar-
ing fees with, any practitioner disbarred
or suspended from practice before the
Internal Revenue Service.
To enable attorneys, certified public
accountants, enrolled agents, and en-
rolled actuaries to identify practitioners
under expedited suspension from prac-
tice before the Internal Revenue Service,
the Director of Practice will announce in
the Internal Revenue Bulletin the names
and addresses of practitioners who have
been suspended from such practice, their
designation as attorney, certified public
accountant, enrolled agent, or enrolled
actuary, and date or period of suspen-
sion. This announcement will appear in
the weekly Bulletin at the earliest practi-
cable date after such action and will
continue to appear in the weekly Bulle-
tins for five successive weeks or for as
many weeks as is practicable for each
attorney, certified public accountant, en-
rolled agent, or enrolled actuary so
suspended and will be consolidated and
published in the Cumulative Bulletin.
The following individuals have been
placed under suspension from practice
before the Internal Revenue Service by
virtue of the expedited proceeding pro-
visions of the applicable regulations:
NameAddressDesignationDate of Suspension
Newman, Harry J.Covington, VACPAIndefinite from May 16, 1997
Sehnert, FredDallas, TXCPAIndefinite from May 16, 1997
Gaskins, John D.Valdosta, GACPAIndefinite from May 16, 1997
Turner, Charles L.Goshen, KYAttorneyIndefinite from May 16, 1997
Thornton Jr., Kenneth W.Murrells Inlet, SCAttorneyIndefinite from May 16, 1997
Kellogg, RichardWhite Hall, ARCPAIndefinite from May 16, 1997
Stec, Albert J.Schereville, INCPAIndefinite from May 16, 1997
Huff Jr., James G.Raleigh, NCCPAIndefinite from May 16, 1997
Seall, WilliamDayton, OHAttorneyIndefinite from May 16, 1997
Brunner, L. KeithCenterville, OHAttorneyIndefinite from May 16, 1997
Bart, David R.Oakwood, OHAttorneyIndefinite from May 16, 1997
Shafer, David A.Franklin, OHCPAIndefinite from May 16, 1997
Schouman, JamesMilford, MIAttorneyIndefinite from May 16, 1997
Jones, Milo A.Greensboro, NCCPAIndefinite from May 16, 1997
Dolan, Gary L.Lincoln, NEAttorneyIndedinite from May 16, 1997
Coorey, Edward T.Hampton, NHEnrolled AgentIndefinite from May 16, 1997
Sheehan, Thomas J.Maggie Valley, NCCPAIndefinite from May 16, 1997
Millonig, Arthur F.Dayton, OHAttorneyIndefinite from May 16, 1997
McHaffie, Richard T.St. Paul, MNAttorneyIndefinite from June 4, 1997
Rigler, MichaelGainesville, TXCPAIndefinite from June 4, 1997
Hopkins, Diane E.St. Paul, MNAttorneyIndefinite from June 4, 1997
Adae, F. BrianBarrington, RIAttorneyIndefinite from June 4, 1997
July 7, 1997
381997–27 I.R.B.

Announcement of the Consent Suspension of Attorneys, Certified Public
Accountants, Enrolled Agents, and Enrolled Actuaries From Practice Before the
Internal Revenue Service
Under 31 Code of Federal Regula-
tions, Part 10, an attorney, certified pub-
lic accountant, enrolled agent, or en-
rolled actuary, in order to avoid the
institution or conclusion of a proceeding
for his disbarment or suspension from
practice before the Internal Revenue Ser-
vice, may offer his consent to suspension
from such practice. The Director of
Practice, in his discretion, may suspend
an attorney, certified public accountant,
enrolled agent, or enrolled actuary in
accordance with the consent offered.
Attorneys, certified public accoun-
tants, enrolled agents, and enrolled actu-
aries are prohibited in any Internal Rev-
enue Service matter from directly or
indirectly employing, accepting assis-
tance from, being employed by or shar-
ing fees with, any practitioner disbarred
or suspended from practice before the
Internal Revenue Service.
To enable attorneys, certified public
accountants, enrolled agents, and en-
rolled actuaries to identify practitioners
under consent suspension from practice
before the Internal Revenue Service, the
Director of Practice will announce in the
Internal Revenue Bulletin the names and
addresses of practitioners who have
been suspended from such practice, their
designation as attorney, certified public
accountant, enrolled agent, or enrolled
actuary, and date or period of suspen-
sion. This announcement will appear in
the weekly Bulletin at the earliest practi-
cable date after such action and will
continue to appear in the weekly Bulle-
tins for five successive weeks or for as
many weeks as is practicable for each
attorney, certified public accountant, en-
rolled agent, or enrolled actuary so
suspended and will be consolidated and
published in the Cumulative Bulletin.
The following individuals have been
placed under consent suspension from
practice before the Internal Revenue
Service:
NameAddressDesignationDate of Suspension
Padgett, JohnOrleans, MAAttorneyMay 22, 1997 to October 21, 1998
Crisp, Jerry W.Dallas, TXCPAJune 1, 1997 to May 31, 2000
Kessel, Donald K.Export, PACPAJune 1, 1997 to November 30, 1998
Klimchak, JosephAliquippa, PACPAJune 1, 1997 to February 28, 1998
Steele, Lewis M.Pittsburgh, PACPAJune 1, 1997 to May 31, 1998
Castleberry, Gene A.Oklahoma City, OKAttorneyJune 4, 1997 to August 3, 1997
O’Connor, Paul J.Hanover, MACPAJune 6, 1997 to June 5, 2000
Olshan, Robert M.Washington, DCCPAJune 10, 1997 to December 9, 1998
Johnson, Kirk L.Ann Arbor, MICPAJuly 1, 1997 to June 30, 1999
Mattutat, StephenEllicott City, MDCPAJuly 1, 1997 to March 31, 1998
Trenary, Lloyd R.Oklahoma City, OKCPAAugust 1, 1997 to March 31, 1998
Ritchey Jr., FerrisBirmingham, ALAttorneyAugust 1, 1997 to July 31, 2000
Gold, Howard G.Hamden, CTCPAAugust 1, 1997 to July 31, 1999
Womack, KathleenHammond, LACPAAugust 1, 1997 to July 31, 1999
1997–27 I.R.B.
39July 7, 1997

Numerical Finding List
1
Bulletins 1997–1 through 1997–26
Announcements:
97–1, 1997–2 I.R.B.63
97–2, 1997–2 I.R.B.63
97–3, 1997–2 I.R.B.63
97–4, 1997–3 I.R.B.14
97–5, 1997–3 I.R.B.15
97–6, 1997–4 I.R.B.11
97–7, 1997–4 I.R.B.12
97–8, 1997–4 I.R.B.12
97–9, 1997–5 I.R.B.27
97–10, 1997–10 I.R.B.64
97–11, 1997–6 I.R.B.19
97–12, 1997–7 I.R.B.55
97–13, 1997–8 I.R.B.38
97–14, 1997–8 I.R.B.38
97–15, 1997–9 I.R.B.23
97–16, 1997–9 I.R.B.23
97–17, 1997–9 I.R.B.23
97–18, 1997–10 I.R.B.67
97–19, 1997–10 I.R.B.68
97–20, 1997–11 I.R.B.22
97–21, 1997–11 I.R.B.23
97–22, 1997–12 I.R.B.47
97–23, 1997–11 I.R.B.23
97–24, 1997–11 I.R.B.24
97–25, 1997–12 I.R.B.47
97–26, 1997–12 I.R.B.48
97–27, 1997–13 I.R.B.30
97–28, 1997–14 I.R.B.15
97–29, 1997–14 I.R.B.16
97–30, 1997–14 I.R.B.16
97–31, 1997–14 I.R.B.16
97–32, 1997–14 I.R.B.17
97–33, 1997–15 I.R.B.8
97–34, 1997–15 I.R.B.8
97–35, 1997–15 I.R.B.9
97–36, 1997–15 I.R.B.10
97–37, 1997–15 I.R.B.10
97–38, 1997–15 I.R.B.10
97–39, 1997–16 I.R.B.27
97–40, 1997–16 I.R.B.28
97–41, 1997–16 I.R.B.28
97–42, 1997–17 I.R.B.19
97–43, 1997–17 I.R.B.19
97–44, 1997–17 I.R.B.19
97–45, 1997–17 I.R.B.20
97–46, 1997–18 I.R.B.53
97–47, 1997–19 I.R.B.94
97–48, 1997–20 I.R.B.8
97–49, 1997–20 I.R.B.8
97–50, 1997–20 I.R.B.8
97–51, 1997–20 I.R.B.9
97–52, 1997–21 I.R.B.22
97–53, 1997–21 I.R.B.22
97–54, 1997–22 I.R.B.23
97–55, 1997–22 I.R.B.23
97–56, 1997–23 I.R.B.17
97–57, 1997–23 I.R.B.18
97–58, 1997–24 I.R.B.13
97–59, 1997–24 I.R.B.13
97–60, 1997-24 I.R.B.14
97–62, 1997–25, I.R.B.34
97–63, 1997–26 I.R.B.8
97–64, 1997–26 I.R.B.9
97–65, 1997–26 I.R.B.9
97–66, 1997–26 I.R.B.9
Delegation Orders:
232 (Rev. 3),21
Notices:
97–1, 1997–2 I.R.B.22
97–2, 1997–2 I.R.B.22
97–3, 1997–1 I.R.B.8
97–4, 1997–2 I.R.B.24
97–5, 1997–2 I.R.B.25
97–6, 1997–2 I.R.B.26
97–7, 1997–1 I.R.B.8
97–8, 1997–4 I.R.B.7
97–9, 1997–2 I.R.B.35
97–10, 1997–2 I.R.B.41
97–11, 1997–2 I.R.B.50
97–12, 1997–3 I.R.B.11
97–13, 1997–6 I.R.B.13
97–14, 1997–8 I.R.B.23
97–15, 1997–8 I.R.B.23
97–16, 1997–9 I.R.B.15
97–17, 1997–10 I.R.B.34
97–18, 1997–10 I.R.B.35
97–19, 1997–10 I.R.B.40
97–20, 1997–10 I.R.B.52
97–21, 1997–11 I.R.B.9
97–22, 1997–13 I.R.B.9
97–23, 1997–14 I.R.B.8
97–24, 1997–16 I.R.B.6
97–25, 1997–16 I.R.B.8
97–26, 1997–17 I.R.B.6
97–27, 1997–17 I.R.B.7
97–28, 1997–18 I.R.B.45
97–29, 1997–20 I.R.B.6
97–30, 1997–20 I.R.B.6
97–31, 1997–21 I.R.B.5
97–32, 1997–21 I.R.B.8
97–33, 1997–22 I.R.B.22
97–34, 1997–25 I.R.B.22
97–35, 1997–25 I.R.B.32
97–36, 1997–26 I.R.B.6
Proposed Regulations:
REG–209332–80, 1997–14 I.R.B.9
REG–209040–88, 1997–7 I.R.B.34
REG–209121–89, 1997–11 I.R.B.15
REG–208288–90, 1997–11 I.R.B.14
REG–209494–90, 1997–8 I.R.B.24
REG–208172–91, 1997–10 I.R.B.59
REG–209672–93, 1997–6 I.R.B.15
REG–209709–94 1997–13 I.R.B.12
REG–209729–94, 1997–11 I.R.B.19
REG–209762–95, 1997–3 I.R.B.12
REG–209785–95, 1997–18 I.R.B.46
REG–209817–96, 1997–7 I.R.B.41
REG–209824–96, 1997–11 I.R.B.19
REG–254394–96, 1997–14 I.R.B.14
REG–209823–96, 1997–18 I.R.B.47
REG–209828–96, 1997–6 I.R.B.15
REG–209830–96, 1997–15 I.R.B.7
REG–209834–96, 1997–4 I.R.B.9
REG–209837–96, 1997–23 I.R.B.8
REG–209839–96, 1997–8 I.R.B.26
REG–242996–96, 1997–9 I.R.B.18
REG–246018–96, 1997–8 I.R.B.30
REG–247678–96, 1997–6 I.R.B.17
REG–247862–96, 1997–8 I.R.B.32
REG–248770–96, 1997–8 I.R.B.33
REG–249819–96, 1997–7 I.R.B.50
REG–251703–96, 1997–25 I.R.B.5
REG–252231–96, 1997–7 I.R.B.52
REG–252233–96, 1997–9 I.R.B.19
REG–252487–96, 1997–25 I.R.B.9
REG–252665–96, 1997–12 I.R.B.46
REG–253578–96, 1997–19 I.R.B.93
REG–105299–97, 1997–23 I.R.B.8
Public Law:
105–2, 1997–18 I.R.B.14
Railroad Retirement Quarterly Rate:
1997–21 I.R.B.4
Revenue Procedures:
97–1, 1997–1 I.R.B.11
97–2, 1997–1 I.R.B.64
97–3, 1997–1 I.R.B.84
97–4, 1997–1 I.R.B.96
97–5, 1997–1 I.R.B.132
97–6, 1997–1 I.R.B.153
97–7, 1997–1 I.R.B.185
97–8, 1997–1 I.R.B.187
97–9, 1997–2 I.R.B.56
97–10, 1997–2 I.R.B.59
97–11, 1997–6 I.R.B.13
97–12, 1997–4 I.R.B.7
97–13, 1997–5 I.R.B.18
97–14, 1997–5 I.R.B.20
97–15, 1997–5 I.R.B.21
97–16, 1997–5 I.R.B.25
97–17, 1997–9 I.R.B.15
97–18, 1997–10 I.R.B.53
97–19, 1997–10 I.R.B.55
97–20, 1997–11 I.R.B.10
97–21, 1997–12 I.R.B.44
97–22, 1997–13 I.R.B.9
97–23, 1997–17 I.R.B.7
97–24, 1997–16 I.R.B.10
97–24A, 1997–20 I.R.B.7
97–25, 1997–17 I.R.B.8
97–26, 1997–17 I.R.B.17
97–27, 1997–21 I.R.B.10
97–28, 1997–23 I.R.B.9
97–29, 1997–24 I.R.B.9
97–30, 1997–25 I.R.B.20
97–31, 1997–26 I.R.B.6
Revenue Rulings:
97–1, 1997–2 I.R.B.10
97–2, 1997–2 I.R.B.7
97–3, 1997–2 I.R.B.5
97–4, 1997–3 I.R.B.6
97–5, 1997–4 I.R.B.5
97–6, 1997–4 I.R.B.4
97–7, 1997–5 I.R.B.14
97–8, 1997–7 I.R.B.4
97–9, 1997–9 I.R.B.4
97–10, 1997–10 I.R.B.31
97–11, 1997–10 I.R.B.5
97–12, 1997–11 I.R.B.5
97–13, 1997–16 I.R.B.4
97–14, 1997–11 I.R.B.5
97–15, 1997–12 I.R.B.42
97–16, 1997–13 I.R.B.4
97–17, 1997–14 I.R.B.5
97–18, 1997–15 I.R.B.4
97–19, 1997–18 I.R.B.11
97–20, 1997–19 I.R.B.4
97–21, 1997–18 I.R.B.8
97–22, 1997–20 I.R.B.5
97–23, 1997–22 I.R.B.18
97–24, 1997–22 I.R.B.17
97–25, 1997–23 I.R.B.4
97–26, 1997–24 I.R.B.4
Social Security Domestic Coverage Threshold:
1997–9, I.R.B.17
Tax Conventions:
1997–17 I.R.B.5
July 7, 1997401997–27 I.R.B.
1
See footnote at end of list.

Numerical Finding List—Continued
Bulletins 1997–1 through 1997–26
Treasury Decisions:
8688, 1997–3 I.R.B.7
8689, 1997–3 I.R.B.9
8690, 1997–5 I.R.B.5
8691, 1997–5 I.R.B.16
8692, 1997–3 I.R.B.4
8693, 1997–6 I.R.B.9
8694, 1997–6 I.R.B.11
8695, 1997–4 I.R.B.5
8696, 1997–6 I.R.B.4
8697, 1997–2 I.R.B.11
8698, 1997–7 I.R.B.29
8699, 1997–6 I.R.B.4
8700, 1997–7 I.R.B.5
8701, 1997–7 I.R.B.23
8702, 1997–8 I.R.B.4
8703, 1997–8 I.R.B.18
8704, 1997–8 I.R.B.12
8705, 1997–8 I.R.B.16
8706, 1997–9 I.R.B.11
8707, 1997–7 I.R.B.17
8708, 1997–10 I.R.B.14
8709, 1997–9 I.R.B.5
8710, 1997–13 I.R.B.4
8711, 1997–12 I.R.B.35
8712, 1997–12 I.R.B.4
8713, 1997–14 I.R.B.4
8714, 1997–15 I.R.B.5
8715, 1997–18 I.R.B.5
8716, 1997–19 I.R.B.5
8717, 1997–24 I.R.B.5
8718, 1997–22 I.R.B.4
8719, 1997–23 I.R.B.4
8720, 1997–23 I.R.B.6
8721, 1997–26 I.R.B.4
1
A cumulative list of all Revenue Rulings,
Revenue Procedures, Treasury Decisions, etc.,
published in Internal Revenue Bulletins 1996–27
through 1996–53 will be found in Internal
Revenue Bulletin 1997–1, dated January 6, 1997.
1997–27 I.R.B.41July 7, 1997

Finding List of Current Action on
Previously Published Items
1
Bulletins 1997–1 through 1997–26
*Denotes entry since last publication
Delegation Orders:
232 (Rev. 2)
Modified by
232 (Rev. 3), 1997–25 I.R.B.21
Revenue Procedures:
66–3
Modified by
97–11, 1997–6 I.R.B.13
87–21
Modified by
97–11, 1997–6 I.R.B.13
92–20
Modified by
97–1, 1997–1 I.R.B.11
92–20
Modified by
97–10, 1997–2 I.R.B.59
92–90
Superseded by
97–1, 1997–1 I.R.B.11
94–52
Revoked by
97–11, 1997–6 I.R.B.13
96–1
Superseded by
97–1, 1997–1 I.R.B.11
96–2
Superseded by
97–2, 1997–1 I.R.B.64
96–3
Superseded by
97–3, 1997–1 I.R.B.84
96–4
Superseded by
97–4, 1997–1 I.R.B.96
96–5
Superseded by
97–5, 1997–1 I.R.B.132
96–6
Superseded by
97–6, 1997–1 I.R.B.153
96–7
Superseded by
97–7, 1997–1 I.R.B.185
96–8
Superseded by
97–8, 1997–1 I.R.B.187
96–24
96–24A
Superseded by
97–24, 1997–16 I.R.B.10
96–37
Obsoleted by
97–26, 1997–17 I.R.B.17
Revenue Procedures—Continued
97–2
Amplified by
97–21, 1997–12 I.R.B.44
97–3
Amplified by
97–23, 1997–17 I.R.B.7
97–27
Superseded by
97–30, 1997–25 I.R.B.20
Revenue Rulings:
70–480
Revoked by
97–6, 1997–4 I.R.B.4
72–527
Obsoleted by
8704, 1997–8 I.R.B.12
74–59
Revoked by
8708, 1997–10 I.R.B.14
86–73
Obsoleted by
TD 8717, 1997–24 I.R.B.5
87–50
Obsoleted by
TD 8717, 1997–24 I.R.B.5
87–51
Obsoleted by
TD 8717, 1997–24 I.R.B.5
88–42
Obsoleted by
TD 8717, 1997–24 I.R.B.5
92–19
Supplemented in part by
97–2, 1997–2 I.R.B.7
93–90
Obsoleted by
TD 8717, 1997–24 I.R.B. 5
96–12
Superseded by
97–3, 1997–1 I.R.B.84
96–13
Modified by
97–1, 1997–1 I.R.B.11
96–22
Superseded by
97–3, 1997–1 I.R.B.84
96–34
Superseded by
97–3, 1997–1 I.R.B.84
96–39
Superseded by
97–3, 1997–1 I.R.B.84
96–43
Superseded by
97–3, 1997–1 I.R.B.84
96–56
Superseded by
97–3, 1997–1 I.R.B.84
1
A cumulative finding list for previously published
items mentioned in Internal Revenue Bulletins
1996–27 through 1996–53 will be found in Inter-
nal Revenue Bulletin 1997–1, dated January 6,
1997.
July 7, 1997421997–27 I.R.B.

Index
Internal Revenue Bulletins 1997–1
Through 1997–26
For index of items published during
the last six months of 1996, see
I.R.B. 1997–1, dated Januar y 6,
1997.
The abbreviation and number in pa-
renthesis following the index entr y
refer to the specific item; numbers in
roman and italic type following the
parenthesis refer to the Internal Rev-
enue Bulletin in which the item may
be found and the page number on
which it appears.
Key to Abbreviations:
RRRevenue Ruling
RPRevenue Procedure
TDTreasur y Decision
CDCourt Decision
PLPublic Law
EOExecutive Order
DODelegation Order
TDOTreasur y Department Order
TCTax Convention
SPRStatement of Procedural
Rules
PTEProhibited Transaction
Exemption
EMPLOYMENT TAX
Railroad retirement:
Rate determination, quarterly (April 1,
1997) 21,4
Regulations:
26CFR31.3406(j)–1,added;
35a.3406–3, removed; taxpayer
identification number (TIN) match-
ing program (TD 8721) 26,4
Social Security domestic employee cov-
erage threshold amount for 1997, 9,
17
ESTATE & GIFT TAXES
ADMINISTRATIVE
Proposed regulations:
26CFR20.2044–1,added;
20.2056(b)–7, amended; estate and
gift tax marital deduction (REG–
209830–96) 15,7
Regulations:
26 CFR 20.2044–1T, 20.2056(b)–7T,
–10T, added; estate tax marital de-
duction (TD 8714) 15,5
EXCISE TAX
Airport and airway trust fund excise
taxes (PL 105–2) 18,14
EXCISE TAX—Continued
Deposits (Notice 15) 8,23
Epoxy (DGEBA) determination (Notice
22) 13,9
Proposed regulations:
26CFR48.4081–1,amended;
48.4082–5,48.6715–2,added;
gasoline and diesel fuel excise tax,
special rules for Alaska, definition
of aviation gasoline and kerosene
(REG–247678–96) 6,17
26 CFR 54.9801–1 through –6,
54.9802–1, 54.9804–1, 54.9806–1,
added; group health plan, health
insuranceportability(REG–
253578–96) 19,93
Regulations:
26 CFR 48.4082–5T, 48.6715–2T,
added; diesel fuel excise tax, spe-
cial rules for Alaska (TD 8693) 6,
9
26 CFR 54.9801–1T through –6T,
54.9802–1T, 54.9804–1T, 54.9806–
1T, added; group health plans, ac-
cess, portability, and renewability
requirements (TD 8716) 19,5
GENERATION-SKIPPING
TRANSFER TAX
Regulations:
26CFR26.2652–1,amended;
generation-skipping transfer tax
(TD 8720) 23,4
GIFT TAXES
Proposed regulations:
26 CFR 25.2702–1(c)(3), revised;
charitable remainder trusts (REG–
209823–96) 18,47
INCOME TAX
Abusive trusts (Notice 24) 16,6
Accounting periods; small business cor-
porations (Notice 20) 10,52
Adoption assistance (Notice 9) 2,35
Advance guidance under Section 877
(Notice 19) 10,40
Alternative minimum tax, change in ac-
counting method (Notice 13) 6,13
Automobile inflation adjustment (RP 20)
11,10
Books and records; electronic storage;
imaging (RP 22) 13,9
Changes in accounting periods and
methods of accounting (RP 27) 21,10
Charitable remainder unitrusts; no rule
on CRT abuses (RP 23) 17,7
Consolidated returns, TD 7637; correc-
tion (Notice 29) 20,6
INCOME TAX—Continued
Credit for producing fuel from a
nonconventional source, section 29
inflation adjustment factor, and refer-
ence price (Notice 28) 18,45
Credits against tax:
Low-income housing credit:
Building’s credit period beginning
after 1995 (RR 4) 3,6
Satisfactory bond, bond factor
amounts for January, February,
and March 1997 (RR 16) 13,4;
for April, May, and June 1997
(RR 25) 23,4
Depreciation:
Retail motor fuels outlets (RP 10) 2,
59
Differential earnings rate (Notice 17) 10,
34
Domestic asset/liability and investment
yield percentages (RP 16) 5,25
Electing Small Business Trust (ESBT)
election (Notice 12) 3,11
Electricity from certain renewable re-
sources:
Inflation adjustment factor and refer-
ence prices, calendar year 1997
(Notice 30) 20,6
Employee plans:
Cash or deferred arrangements (No-
tice 2) 2,22
Funding:
Full funding limitations, weighted
average interest rate, January
1997 (Notice 8) 4,7; February
1997 (Notice 16) 9,15; March
1997 (Notice 23) 14,8; April
1997 (Notice 27) 17,7; May
1997 (Notice 33) 22,22; June
1997 (Notice 35) 25,32
Qualification:
Qualified domestic relations orders
(Notice 11) 2,49
Qualified joint and survivor annu-
ities (Notice 10) 2,49
SIMPLES (RP 9) 2,55
SIMPLE–IRAs (Notice 6) 2,26; (RP
29) 24,9
User fees (RP 8) 1,187
Exempt organizations:
Tax consequences of physician recruit-
ment incentives provided by hospi-
tals described in section 501(c)(3)
of the Code (RR 21) 18,8
Unrelated business taxable income
(RP 12) 4,7
User fees (RP 8) 1,187
Foreign trust and foreign gift reporting
provisions (Notice 34) 25,22
1997–27 I.R.B.
43July 7, 1997

INCOME TAX—Continued
Forms W–2 and W–3; general rules and
specifications for private printing (RP
24) 16,10; correction (RP 24A) 20,7
Form 8851; electronic and magnetic
media filing specifications (RP 25)
17,8
Fringe benefits aircraft valuation for-
mula (RR 14) 11,5
General asset accounts; election (RP 30)
25,20
Insurance companies:
Interest rate tables (RR 2) 2,8
Premium stabilization reserves (RR 5)
4,5
Interest:
Investment:
Federal short-term, mid-term, and
long-term rates for January 1997
(RR 1) 2,10; February 1997 (RR
7) 5,14; March 1997 (RR 10)
10,31; April 1997 (RR 17) 14,
5; May 1997 (RR 19) 18,11;
June 1997 (RR 24) 22,17
Penalties:
Underpayment and overpayment
rates for April 1997 (RR 12) 11,
5; July 1997 (RR 23) 22,18
Inventories:
LIFO, price indexes, department
stores, November 1996 (RR 6) 4,
4; December 1996 (RR 8) 7,4;
January 1997 (RR 15) 12,42; Feb-
ruary 1997 (RR 18) 15,4; March
1997 (RR 22) 20,5; April 1997
(RR 26) 24,4
Losses:
Net operating; specified liability
losses (Notice 36) 26,6
Low-income housing tax credit (Notice
14) 8,23
Major disaster areas (RR 11) 10,5
Medical and dental expenses (RR 9) 9,
4
Medical savings accounts:
High-deductible plan (RR 20) 19,4
Modified guaranteed contracts (Notice
32) 21,8
Obsolete revenue rulings and revenue
procedures under TD 8697 (Notice 1)
2,22
Photocopy fee increase (RP 11) 6,13
Pilot pre-submission conference proce-
dure (RP 21) 12,44
Proposed regulations:
26 CFR 1.41–0, amended; 1.41–4,
revised; research activities increase,
credit, hearing (REG–209494–90)
8,24
26 CFR 1.42–16, added; low-income
housing tax credits, Federal grants
(REG–254394–96) 14,14
INCOME TAX—Continued
Proposed regulations—Continued
26CFR1.167(a)–3,amended;
1.167(a)–14, 1.197–0, 1.197–2,
added; amortization of intangible
property (REG–209709–94) 13,12
26 CFR 1.274–5, added; substantia-
tion of business expenses for travel,
entertainment, gifts, and listed
property (REG–209785–95) 18,46
26 CFR 1.337(d)–4, added; certain
asset transfers to tax-exempt entity
(REG–209121–89) 11,15
26 CFR 1.338(b)–2, –3, added; intan-
gibles under sections 1060 and 338
(REG–252665–96) 12,46
26 CFR 1.354–1, 1.355–1, 1.356–3,
amended; reorganizations, receipt
of securities (REG–249819–96) 7,
50
26 CFR 1.368–1, amended; share-
holder interest continuity require-
ment for corporate reorganizations
(REG–252231–96) 7,52
26 CFR 1.368–1, –2, amended; conti-
nuity of interest and business re-
quirements (REG–252233–96) 9,
19
26CFR1.446–1,amended;
301.9100–1(h), added; 301.9100–3,
revised; adoption or change of ac-
counting method, extensions of
time to make elections (REG–
209837–96; REG–105299–97) 23,
8
26 CFR 1.453–11, added; installment
obligations received from liquidat-
ing corporations; partial withdrawal
(REG–209332–80) 14,9
26 CFR 1.468A–2, –3, amended;
nuclear decommissioning reserve
funds; revised schedules of ruling
amounts (REG–209828–96) 6,15
26 CFR 1.643(h)–1, 1.672(f)–1, –2,
–3, –4, –5, added; 1.671–2(e), re-
vised; inbound grantor trusts with
foreign grantors (REG–252487–96)
25,9
26 CFR 1.664–1(a)(7), (d)(1)(iii),
(f)(4), added; 1.664–2, revised;
1.664–3, amended; charitable re-
mainder trusts (REG–209823–96)
18,47
26 CFR 1.704–3, 1.1245–1, amended;
depreciation allocations, recapture
among partners in a partnership
(REG–209762–95) 3,12
26 CFR 1.801–4, amended; life insur-
ance reserves, recomputation hear-
ing (REG–246018–96) 8,30
26 CFR 1.832–4, amended; insurance
companies, determination of earned
premiums (REG–209839–96) 8,26
INCOME TAX—Continued
Proposed regulations—Continued
26 CFR 1.905–2, amended; foreign
tax credit filing requirements
(REG–208288–90) 11,14
26 CFR 1.1275–7, 1.1286–2, added;
inflation-indexed debt instruments
(REG–242996–96) 9,18
26 CFR 1.1293–2, 1.1295–2, added;
qualified electing fund elections,
preferred shares, hearing (REG–
209040–88) 7,34
26 CFR 1.1396–1, added; empower-
ment zone employment credit;
qualified zone employees (REG–
209834–96) 4,9
26 CFR 1.1402(a)–18, withdrawn;
(REG–209729–94) 11,19
26CFR1.6013–2,301.6334–1,
301.6601–1, 301.6651–1, 301.7430–
0, –1, –2, –4, –5, amended;
301.6656–3, added; 301.7122–1(e),
301.7430–6, revised; Taxpayer Bill
of Rights 2 and Personal Responsi-
bility and Work Opportunity Rec-
onciliation Act of 1996, miscella-
neous sections affected (REG–
248770–96) 8,33
26CFR1.7701(1)–1,amended;
1.7701(1)–2; obligation-shifting
transactions, multiple-party, realized
income and deductions (REG–
209817–96) 7,41
26 CFR 53.6011–1, amended; 53.6017–
1T; return and time for filing re-
quirements (REG–247862–96) 8,32
26CFR301.7701–5,amended;
301.7701–7, added; residence of
trusts and estates (REG–251703–
96) 25,5
Qualified long-term care, definitions
(Notice 31) 21,5
Qualified mortgage bonds; mortgage
credit certificates; national median
gross income (RP 26) 17,17
Regulations:
26 CFR 1.25–3, added; 1.25–3T,
amended; mortgage credit certifi-
cate reissuance (TD 8692) 3,4
26 CFR 1.42–16T, added; low-income
housing tax credits, Federal grants
(TD 8713) 14,4
26 CFR 1.45B–1; withdrawal of
credit for employer social security
taxes paid on employee tips (REG–
209672–93) 6,15
26 CFR 1.45B–1T, removed; credit for
employer social security taxes paid
on employee tips (TD 8699) 6,4
July 7, 1997441997–27 I.R.B.

INCOME TAX—Continued
Regulations—Continued
26CFR1.103–8(a)(5),revised;
1.103–8T,removed;1.142–4,
added;1.148–0(c),amended;
1.148–1T through –6T and interme-
diary sections, –9T, –10T, –11T,
redesignated; 1.148–1A through
–6A and intermediary sections,
–9A,–10A,–11A,1.148–1,
amended; 1.148–2(b)(2)(ii), 1.148–
3, revised; 1.148–4, amended;
1.148–5(b)(2)(iii), (c)(2)(i), (c)(3)-
(ii), (d)(3)(ii), (e)(2)(ii)(B), (e)(2)-
(iii), 1.148–6(d)(3)(iii)(C), 1.148–
9(c)(2)(ii)(B)and(h)(4)(vi),
revised; 1.148–10, –11, amended;
1.148–11A(i), revised; 1.149(d)–1,
amended; 1.149(d)–1T, redesig-
nated; 1.150–1, amended; 1.150–
1T, redesignated; tax-exempt bonds,
arbitrage restrictions (TD 8718) 22,
4
26 CFR 1.108(a)–1, –2, 108(b)–1,
1.1016–7, –8, 1.1017–2, removed;
1.108–4, –5, added; 1.1017–1, re-
vised; 1.301.9100–13T, removed;
basis reduction due to discharge of
indebtedness (REG–208172–91) 10,
59
26 CFR 1.108(c)–1T, 1.163(d)–1T,
1.1044(a)–1T, 1.6655(e)–1T, re-
moved; 1.108(c)–1, 1.163(d)–1,
1.1044(a)–1, 1.6655(e)–1, added;
Omnibus Budget Reconciliation
Act, elections (TD 8688) 3,7
26 CFR 1.141–1, revised; 1.143–1,
redesignated; 1.144–3, removed;
1.141–0, –2 through –16, 1.142–0,
–3, 1.144–0, 1.145–0, –1, –2,
1.147–0, –1, –2, 1.150–4, added;
1.142–1, –2, 1.144–1, –2, revised;
1.148–6, 1.150–1, amended; private
activity bonds definition (TD 8712)
12,4
26 CFR 1.170A–1, –13, amended;
charitable contributions, deductibil-
ity, substantiation, and disclosure
(TD 8690) 5,5
26 CFR 1.267(f)–1, 1.1502–11, –13,
–19, –20, –32, –43, –76, –80, cor-
rected; consolidated returns, con-
solidated and controlled groups
(Notice 25) 16,8
26CFR1.280H–1T,amended;
1.274–5, redesignated; 1.274–5T,
amended; substantiation of business
expenses for travel, entertainment,
gifts, and listed property (TD 8715)
18,5
INCOME TAX—Continued
Regulations—Continued
26 CFR 1.338(b)–2T(b)(2)(v), –2T(c)-
(4), added; 1.338–3, 1.338(b)–2T,
–3T, 1.1060–1T, amended; intan-
gibles under sections 1060 and 338
(TD 8711) 12,35
26CFRPart1,1.338–0,–4,
amended;1.338–4T,removed;
1.338(i)–1(a) and (b), revised; tar-
get affiliates that are controlled
foreign corporations (TD 8710) 13,
4
26 CFR 1.367(a)–3, added; foreign
corporations, transfer of domestic
stock or securities by U.S. person
(TD 8702) 8,4
26 CFR 1.446–1(e)(3)(i), amended;
1.446–1T, added; 301.9100–1T(h),
amended; adoption or change of
accounting method, extensions of
time to make elections (TD 8719)
23,4
26 CFR 1.475(b)–1T, –2T, 1.475(c)–
1T, –2T, 1.475(d)–1T, 1.475(e)–1T,
removed; 1.475–0, 1.475(a)–3,
1.475(b)–1, –2, –4, 1.475(c)–1, –2,
1.475(d)–1, 1.475(e)–1, added; se-
curities dealers; mark-to-market ac-
counting; equity interests in related
parties and dealer-customer rela-
tionship (TD 8700) 7,5
26 CFR 1.581–1, revised; 1.581–2,
1.761–1(a), revised; 301.6109–1,
amended; 301.7701–1, –2, –3, re-
vised; 301.7701–4, amended; do-
mestic unincorporated business
organizations classified as partner-
ships or associations (TD 8697) 2,
11
26 CFR 1.704–1, –3, –4, 1.708–1,
1.732–2, amended; 1.743–1(d),
1.761–1(e), added; 301.6109–1,
amended; termination of a partner-
ship (TD 8717) 24,5
26 CFR 1.731–2, added; partnerships,
distribution of marketable securities
(TD 8707) 7,17
26 CFR 1.902–0, –1, –2, added; for-
eign taxes deemed paid by domes-
tic corporate shareholder; computa-
tion (TD 8708) 10,14
26 CFR 1.952–1(e), (f), added; 1.952–
2(c)(1), 1.954–1(d)(4)(iii), 1.954–
2(b)(3), 1.954–2(g)(2)(ii)(B)(1)(i),
–(2), revised; 1.957–1, amended;
1.960–1(i), added; controlled for-
eign corporations, foreign bas com-
pany and foreign personal holding
company income, definitions (TD
8704) 8,12
INCOME TAX—Continued
Regulations—Continued
26CFR1.1271–0,1.1275–4,
amended; 1.1275–7T, 1.1286–2T,
added; inflation-indexed debt in-
strument (TD 8709) 9,5
26 CFR 1.1291–0, –9, –10, added;
1.1291–0T, amended; 1.1291–9T,
–10T, removed; treatment of share-
holders of certain passive foreign
investment companies (TD 8701) 7,
23
26 CFR 1.1368–1 amended; 1.1377–
0, –1, –2, –3, added; 18.1377–1,
removed; S corporations and their
shareholders, definitions under
subchapter S (TD 8696) 6,4
26 CFR 1.1402(a)–2, amended; defi-
nition of limited partner for self-
employment tax purposes (REG–
209824–96) 11,19
26 CFR 1.6081–2, –6, added; 1.6081–
2T, –3T, –4T, removed; 1.6081–4,
amended;301.6651,amended;
301.6651–1T, removed; individual,
partnership, trust, and U.S. real
estate mortgage investment conduit
income tax returns, automatic ex-
tension of filing time (TD 8703) 8,
18
26 CFR 1.6695–1(b), amended; 1.6695–
1T, removed; 301.6061–1, revised;
301.6061–1T,removed;returns,
statements, or other documents, sign-
ing methods (TD 8689) 3,9
26 CFR 31.3402(f)(5)–1, amended;
31.3402(f)(5)–2T, removed; em-
ployment taxes and collection of
income taxes at source, Form W–4,
electronic filing (TD 8706) 9,11
26CFR53.6011–1,amended;
53.6071–1T; return and time for
filing requirements (TD 8705) 8,16
26 CFR 301.6103(n)–1, amended; re-
turn information disclosure; prop-
erty or services for tax administra-
tion purposes, Justice Department
(TD 8695) 4,5
26 CFR 301.6231(a)(7)–1T, removed;
301.6231(a)(7)–1, added; limited li-
ability companies; tax matters part-
ner selection (TD 8698) 7,29
26 CFR 301.6335–1, amended; sale
of seized property (TD 8691) 5,16
REIT preferred stock (Notice 21) 11,9
Rulings:
Areas in which advance rulings will
not be issued:
Associate Chief Counsel (Domes-
tic), Associate Chief Counsel
(Employee Benefits and Exempt
Organizations (RP 3) 1,85; As-
sociate Chief Counsel (Interna-
tional) (RP 7) 1,185
1997–27 I.R.B.
45July 7, 1997

INCOME TAX—Continued
Rulings—Continued
Determination letters, employee plans
(RP 6) 1,153
Environmental cleanup costs; letter
rulings (Notice 7) 1,8
Letter rulings, determination letter, in-
formation letter, Associate Chief
Counsel (Domestic), Associate
Chief Counsel (Employee Benefits
and Exempt Organizations), Associ-
ate Chief Counsel (Enforcement
Litigation), Associate Chief Coun-
sel (International) (RP 1) 1,11
Rulings and determination letters, is-
suance procedures (RP 4) 1,97
Technical advice; employee plans, ex-
empt organizations (RP 5) 1,132
INCOME TAX—Continued
Rulings—Continued
Technical advice to district directors
and chiefs, appeals offices, Associ-
ate Chief Counsel (Domestic), As-
sociate Chief Counsel (Employee
Benefits and Exempt Organiza-
tions), Associate Chief Counsel
(Enforcement Litigation), Associate
Chief Counsel (International) (RP
2) 1,64
SBA guaranteed payment rights; partici-
pating securities (RR 3) 2,5
Scenarios of disciplinary actions, 13,32
S corporation bank accounting method
change (RP 18) 10,53
S corporation subsidiaries (Notice 4) 2,
24
Small Business Corporations:
Accounting periods (Notice 3) 1,8
Electing small business corporations
and banks (Notice 5) 2,25
INCOME TAX—Continued
Special use value; farms; interest rates
(RR 13) 16,4
Tax conventions:
Shipping and aircraft agreements
Malta, 17,5
Tax-exempt bonds:
Private activity bonds (RP 13) 5,18;
(RP 14) 5,20; (RP 15) 5,21
Tax forms and instructions:
Magnetic media/electronic filing pro-
gram for Form 1040NR filers (RP
28) 23,9
Taxpayer assistance orders (DO[Rev. 3])
25,21
Timely filing or payment; private deliv-
ery services (RP 19) 10,55; (Notice
26) 17,6
TIN matching; backup withholding (RP
31) 26,6
Transfers to foreign entities (Notice 18)
10,35
July 7, 1997
461997–27 I.R.B.

INTERNAL REVENUE BULLETIN
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INTERNAL REVENUE BULLETIN
The Introduction on page 3 describes the purpose and content of this publication. The weekly Internal Revenue Bulletin is
sold on a yearly subscription basis by the Superintendent of Documents. Current subscribers are notified by the Superintendent
of Documents when their subscriptions must be renewed.
CUMULATIVE BULLETINS
The contents of this weekly Bulletin are consolidated semiannually into a permanent, indexed, Cumulative Bulletin. These
are sold on a single copy basis andare notincluded as part of the subscription to the Internal Revenue Bulletin. Subscribers to
the weekly Bulletin are notified when copies of the Cumulative Bulletin are available. Certain issues of Cumulative Bulletins
are out of print and are not available. Persons desiring available Cumulative Bulletins, which are listed on the reverse, may
purchase them from the Superintendent of Documents.
HOW TO ORDER
Check the publications and/or subscription(s) desired on the reverse, complete the order blank, enclose the proper remittance,
detach entire page, and mail to the Superintendent of Documents, U.S. Government Printing Office, Washington, DC 20402.
Please allow two to six weeks, plus mailing time, for delivery.
WE WELCOME COMMENTS ABOUT THE
INTERNAL REVENUE BULLETIN
If you have comments concerning the format or production of the Internal Revenue Bulletin or suggestions for improving it,
we would be pleased to hear from you. You can e-mail us your suggestions or comments through the IRS Internet Home Page
(www.irs.ustreas.gov) or write to the IRS Bulletin Unit, T:FP:F:CD, Room 5560, 1111 Constitution Avenue, NW, Washington,
DC 20224. You can also leave a recorded message 24 hours a day, 7 days a week at 1–800–829–9043.
Internal Revenue Service
Washington, DC 20224
Official Business
Penalty for Private Use, $300