Internal Revenue Bulletin 2000-31 (PDF rendition): IRS Revenue Procedures

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

INCOME TAX
T.D. 8893, page 143.
Final regulations under section 6695 of the Code provide in-
come tax return preparers with two alternative means of
meeting the requirement that a preparer retain the copy of
the return or claim manually signed by the preparer.
EMPLOYEE PLANS
Rev. Rul. 2000–33, page 142.
Cash or deferred arrangements; nonqualified de-
ferred compensation.This ruling specifies the criteria to
be met in order to automatically defer a certain percentage
of an employee’s compensation into that employee’s ac-
count in an eligible deferred compensation plan sponsored
by the eligible employer.
Rev. Rul. 2000–35, page 138.
Section 403(b) plans; elective deferrals.This ruling
specifies the criteria to be met in order to automatically re-
duce an employee’s compensation by a certain amount and
have that amount contributed as an elective deferral to an
employer’s section 403(b) plan.
Rev. Rul. 2000–36, page 140.
Qualified plan; default rollover; involuntary cash-out.
This ruling provides that if plan participants are given ade-
quate notice including their right to elect a cash distribution,
a qualified plan can be amended to permit a default direct
rollover under section 401(a)(31) of an involuntary cash-out
without violating section 411(d)(6) of the Code.
Announcement 2000–60, page 149.
Prototype plans, automatic enrollment features.This
announcement informs employers and prototype plan
sponsors of the availability of automatic enrollment fea-
tures in prototype section 401(k) plans.
Announcement 2000–65, page 150.
A public hearing on proposed regulations (REG–117162–99,
2000–15 I.R.B. 871) relating to the tax treatment of cafete-
ria plans is scheduled for August 17, 2000.
ADMINISTRATIVE
Rev. Proc. 2000–31, page 146.
Form 1040 IRS e-fileprogram. Participants in the Form
1040 IRS e-file program (which now includes the former on-
line filing program) are informed of their obligations to the
Service, taxpayers, and other participants. Rev. Proc.
98–50 and Rev. Proc. 98–51 modified and superseded.
Announcement 2000–63, page 149.
This document withdraws proposed regulations
(FI–42–90, 1992–1 C.B. 1072) relating to thrift institu-
tions that become ineligible to use the reserve method of
accounting for bad debts allowed by section 593 of the
Code.
Announcement 2000–64, page 149.
Supplemental information on short-term Treasury bills for
the 1999 edition of Publication 1212, List of Original Issue
Discount Instruments, is now available.
Internal Revenue
bbuulllleettiinn
Bulletin No. 2000–31
July 31, 2000
HIGHLIGHTS
OF THIS ISSUE
These synopses are intended only as aids to the reader in
identifying the subject matter covered. They may not be
relied upon as authoritative interpretations.
Department of the Treasury
Internal Revenue Service
Finding Lists begin on page ii.

July 31, 20002000–31 I.R.B.
The Internal Revenue Bulletin is the authoritative instrument
of the Commissioner of Internal Revenue for announcing offi-
cial rulings and procedures of the Internal Revenue Service
and for publishing Treasury Decisions, Executive Orders, Tax
Conventions, legislation, court decisions, and other items of
general interest. It is published weekly and may be obtained
from the Superintendent of Documents on a subscription
basis. Bulletin contents are consolidated semiannually into
Cumulative Bulletins, which are sold on a single-copy basis.
It is the policy of the Service to publish in the Bulletin all sub-
stantive rulings necessary to promote a uniform application
of the tax laws, including all rulings that supersede, revoke,
modify, or amend any of those previously published in the
Bulletin. All published rulings apply retroactively unless other-
wise indicated. Procedures relating solely to matters of in-
ternal management are not published; however, statements
of internal practices and procedures that affect the rights
and duties of taxpayers are published.
Revenue rulings represent the conclusions of the Service on
the application of the law to the pivotal facts stated in the
revenue ruling. In those based on positions taken in rulings
to taxpayers or technical advice to Service field offices,
identifying details and information of a confidential nature
are deleted to prevent unwarranted invasions of privacy and
to comply with statutory requirements.
Rulings and procedures reported in the Bulletin do not have
the force and effect of Treasury Department Regulations,
but they may be used as precedents. Unpublished rulings
will not be relied on, used, or cited as precedents by Service
personnel in the disposition of other cases. In applying pub-
lished rulings and procedures, the effect of subsequent leg-
islation, regulations, court decisions, rulings, and proce-
dures must be considered, and Service personnel and oth-
ers concerned are cautioned against reaching the same con-
clusions in other cases unless the facts and circumstances
are substantially the same.
The Bulletin is divided into four parts as follows:
Part I.—1986 Code.
This part includes rulings and decisions based on provisions
of the Internal Revenue Code of 1986.
Part II.—Treaties and Tax Legislation.
This part is divided into two subparts as follows: Subpart A,
Tax Conventions, and Subpart B, Legislation and Related
Committee Reports.
Part III.—Administrative, Procedural, and Miscellaneous.
To the extent practicable, pertinent cross references to
these subjects are contained in the other Parts and Sub-
parts. Also included in this part are Bank Secrecy Act Admin-
istrative Rulings. Bank Secrecy Act Administrative Rulings
are issued by the Department of the Treasury’s Office of the
Assistant Secretary (Enforcement).
Part IV.—Items of General Interest.
This part includes notices of proposed rulemakings, disbar-
ment and suspension lists, and announcements.
The first Bulletin for each month includes a cumulative index
for the matters published during the preceding months.
These monthly indexes are cumulated on a semiannual basis,
and are published in the first Bulletin of the succeeding semi-
annual period, respectively.
The IRS Mission
Provide America’s taxpayers top quality service by help-
ing them understand and meet their tax responsibilities
and by applying the tax law with integrity and fairness to
all.
Introduction
The contents of this publication are not copyrighted and may be reprinted freely. A citation of the Internal Revenue Bulletin as the source would be appropriate.
For sale by the Superintendent of Documents, U.S. Government Printing Office, Washington, DC 20402.

July 31, 20001382000–31 I.R.B.
Section 401.—Qualified
Pension, Profit-Sharing And
Stock Bonus Plans
26 CFR 1.401(a)(31)–1: Requirement to offer direct
rollover of eligible rollover distributions; questions
and answers.
Whether a qualified defined contribution plan
can be amended to permit a default direct rollover of
an involuntary cash-out to an individual retirement
arrangement. See Rev. Rul. 2000–36, page 140.
Section 403.—Taxation of
Employee Annuities
26 CFR 1.403(b)–1: Taxability of beneficiary under
annuity contract purchased by a section 501(c)(3)
organization or public school.
Section 403(b) plans; elective defer-
rals.This revenue ruling specifies the cri-
teria to be met in order to automatically
reduce an employee’s compensation by a
certain amount and have that amount con-
tributed as an elective deferral to an em-
ployer’s section 403(b) plan.
Rev. Rul. 2000–35
ISSUE
Will employer contributions to an an-
nuity contract described in § 403(b) of the
Internal Revenue Code (the “Code”) fail
to be considered to be made under a
salary reduction agreement merely be-
cause they are made pursuant to an
arrangement under which a fixed percent-
age of an employee’s compensation is
contributed to the annuity contract unless
the employee affirmatively elects to re-
ceive the amount in cash?
FACTS
Employer X, an organization described
in § 501(c)(3) which is exempt from tax
under § 501(a), maintains Plan A, a plan
described in § 403(b) of the Code and
§ 3(2) of the Employee Retirement In-
come Security Act of 1974 (“ERISA”).
Under Plan A, any employee of Employer
X, including a newly hired employee,
may elect to have Employer X make con-
tributions on the employee’s behalf to-
wards the purchase of an annuity contract
in lieu of receiving that amount as cash
compensation that would otherwise be
payable to the employee. The employee
may designate the amount of these com-
pensation reduction contributions as a
percentage of the employee’s compensa-
tion, subject to certain limitations set
forth in the plan. These compensation re-
duction contributions satisfy the § 403(b)
requirements applicable to contributions
made pursuant to a salary reduction
agreement, and are treated for all pur-
poses as made pursuant to a salary reduc-
tion agreement under the plan.
Plan A also provides that Employer X
will make matching contributions on ac-
count of an employee’s compensation re-
duction contributions up to a specified
percentage of the employee’s compensa-
tion. Plan A does not permit any other
contributions.
Plan A is amended, effective the next
January 1, to add an automatic compensa-
tion reduction election feature. Under this
feature, each employee’s compensation
will automatically be reduced by 4 percent
and this amount will be contributed to-
wards the purchase of an annuity contract
under Plan A unless the employee affirma-
tively elects to receive cash or have a dif-
ferent percentage contributed. Both before
and after the amendment, the employee is
not able to receive, prior to a distributable
event described in § 403(b)(11), amounts
contributed towards the purchase of an an-
nuity contract. Both before and after the
amendment, Plan A and the annuity con-
tracts purchased thereunder satisfy the re-
quirements of § 403(b). An election not to
make compensation reduction contribu-
tions or to contribute a different percentage
of compensation can be made at any time.
Under Plan A as amended, in the case
of a newly hired employee, an election
not to make compensation reduction con-
tributions or to contribute a different per-
centage is effective for the first pay period
and for subsequent pay periods (until su-
perseded by a subsequent election) if filed
when the employee is hired or if filed
within a reasonable period thereafter end-
ing before the compensation for the first
pay period is currently available. Thus, if
a newly hired employee files an election
to receive cash in lieu of compensation re-
duction contributions and the election is
filed when the employee is hired or within
a reasonable period thereafter ending be-
fore the compensation is currently avail-
able, then no compensation reduction
contributions for the first pay period or
subsequent pay period are made on the
employee’s behalf to Plan A until the em-
ployee makes a subsequent affirmative
election to reduce his or her compensa-
tion. Elections filed at a later date are ef-
fective for payroll periods beginning in
the month next following the date the
election is filed.
At the time an employee is hired, the
employee will receive a notice that ex-
plains the automatic compensation reduc-
tion election and the employee’s right to
elect to have no such compensation re-
duction contributions made to the plan or
to alter the amount of those contributions,
including the procedure for exercising
that right and the timing for implementa-
tion of any such election.
In the case of an employee hired before
the January 1 effective date who has not
elected compensation reduction contribu-
tions of at least 4 percent, Plan A as
amended provides that the automatic elec-
tion will become effective on the first pay
period beginning on or after January 1 un-
less the employee elects during a specified
reasonable period ending on January 1 to
receive cash or have a different amount
contributed to Plan A. Thus, if a current
employee files an election to receive cash
in lieu of compensation reduction contri-
butions and the election is filed during the
reasonable period ending on the January 1
effective date, then no compensation re-
duction contributions for the first pay pe-
riod beginning on or after the January 1 ef-
fective date or for subsequent pay periods
are made on the employee’s behalf to Plan
A until the employee makes a subsequent
affirmative election to reduce his or her
compensation. In the case of a current
employee who has a compensation reduc-
tion contribution election in effect for less
than 4 percent, who does not make a new
compensation reduction contribution elec-
tion during the reasonable period ending
on the January 1 effective date, and whose
compensation is therefore automatically
reduced by 4 percent, if that employee
thereafter makes an affirmative election to
reduce his or her compensation by another
Part I. Rulings and Decisions Under the Internal Revenue Code of 1986

2000–31 I.R.B.139July 31, 2000
amount (or no amount), then that affirma-
tive election will continue in effect until
the employee makes a subsequent affirma-
tive election for a different amount.
At the beginning of the reasonable pe-
riod ending on the January 1 effective date,
each current employee receives a notice
that explains the new automatic compensa-
tion reduction election and the employee’s
right to elect to have no such compensation
reduction contributions made to the plan or
to alter the amount of those contributions,
including the procedure for exercising that
right and the timing for implementation of
any such election.
Each employee is notified annually of
his or her compensation reduction per-
centage, and of his or her right to change
the percentage, including the procedure
for exercising that right and the timing for
implementation of any such election.
Plan A provides that both matching
contributions and compensation reduction
contributions will be invested in accor-
dance with the participant’s election
among a broad range of annuity contracts.
If no investment election is made by a
participant, contributions are invested in
an annuity contract providing an invest-
ment return based on the return on a bal-
anced fund that includes both diversified
equity and fixed-income investments
1
.
LAW AND ANALYSIS
Section 403(b)(1) of the Code provides
that amounts contributed by certain em-
ployers, including an employer described
in § 501(c)(3) which is exempt from tax
under § 501(a), for the purchase of an an-
nuity contract for an employee of such an
employer are excluded from the gross in-
come of the employee if certain require-
ments are satisfied.
Contributions to purchase annuity con-
tracts under § 403(b) may be made either
pursuant to a salary reduction agreement
or not pursuant to a salary reduction
agreement. Contributions made pursuant
to a salary reduction agreement are sub-
ject to different requirements than are
contributions not made pursuant to a
salary reduction agreement. (See, for ex-
ample, §§ 403(b)(1)(E), 403(b)(7)(A)(ii),
403(b)–(11) and 403(b)(12).) In general,
a contribution is not treated as made pur-
suant to a salary reduction agreement if
under the agreement it is made pursuant
to a one-time irrevocable election made
by the employee at the time of initial eli-
gibility to participate in the agreement.
See §§ 402(g)(3)(C) and 403(b)(12).
Section 1.403(b)–1(b)(3)(i) of the reg-
ulations prescribes rules applicable to
contributions made pursuant to a salary
reduction agreement, including rules re-
lating to the frequency and revocability
of such agreements and to the salary to
which such agreements apply.
Section 1450(a) of the Small Business
Job Protection Act of 1996 (“SBJPA”)
provides that, for purposes of § 403(b) of
the Code, the frequency that an em-
ployee is permitted to make a salary re-
duction agreement, the salary to which
such an agreement may apply and the
ability to revoke such an agreement shall
be determined under the rules applicable
to cash or deferred elections under
§ 401(k). Section 1450(a) of SBJPA is
effective for taxable years beginning
after December 31, 1995. Thus,
§ 1.403(b)–1(b)(3)(i) of the regulations
does not reflect current law, and the rules
relating to these aspects of salary reduc-
tion agreements are the same as those for
cash or deferred elections under
§ 401(k).
Section 401(k) provides that a profit-
sharing or stock bonus plan, a pre-
ERISA money purchase plan, or a rural
cooperative plan can meet the require-
ments of § 401(a) even if it includes a
qualified cash or deferred arrangement.
Section 401(k) also sets forth the re-
quirements that a cash or deferred
arrangement must satisfy in order to be a
qualified cash or deferred arrangement.
Section 1.401(k)–1(a)(2)(i) defines a
cash or deferred arrangement as an
arrangement under which an eligible em-
ployee may make a cash or deferred
election with respect to contributions to,
or accruals or other benefits under, a
plan that isintended to satisfy the require-
ments of § 401(a).
Section 1.401(k)–1(a)(3)(i) defines a
cash or deferred election as any election
(or modification of an earlier election) by
an employee to have the employer either
provide an amount to the employee in the
form of cash (or some other taxable bene-
fit) that is not currently available or con-
tribute an amount to a trust (or provide an
accrual or other benefit) under a plan de-
ferring the receipt of compensation. Sec-
tion 1.401(k)–1(a)(3)(iv) provides that a
cash or deferred election does not include
a one-time irrevocable election, made at
the time an employee commences em-
ployment with the employer or upon the
employee’s first becoming eligible under
any plan of the employer, to have contri-
butions made by the employer on the em-
ployee’s behalf to the plan (or to any other
plan of the employer) equal to a specified
amount or percentage of the employee’s
compensation. Section 1.401(k)–1(g)(3)
defines elective contributions as employer
contributions made to a plan that were
subject to a cash or deferred election
under a cash or deferred arrangement.
Revenue Ruling 2000–8, 2000–7 I.R.B.
617 (February 14, 2000), holds that where
a newly hired or a current employee has
an effective opportunity to elect to receive
an amount in cash or have that amount
contributed by the employer to a profit-
sharing plan, those employer contribu-
tions made on the employees’ behalf to
the plan in lieu of receipt of cash compen-
sation will not fail to be considered elec-
tive contributions within the meaning of
§ 1.401(k)–1(g)(3) made under a quali-
fied cash or deferred arrangement within
the meaning of § 401(k) merely because
they are made pursuant to an arrangement
under which, in any case in which an em-
ployee does not affirmatively elect to re-
ceive cash, the employee’s compensation
is reduced by a fixed percentage and that
amount is contributed on the employee’s
behalf to the plan.
The definition of a cash or deferred elec-
tion in § 1.401(k)–1(a)(3)(i) requires that
the employee have an election between the
employer paying cash (or some other tax-
able benefit) to the employee or making a
contribution to a trust on behalf of the em-
ployee. The regulation does not require
that the employee receive an amount in
1
The Department of Labor has advised Treasury and
the Service that, under Title I of the Employee
Retirement Income Security Act of 1974 (ERISA),
fiduciaries of a plan must ensure that the plan is
administered prudently and solely in the interest of
plan participants and beneficiaries. While ERISA
§ 404(c) may serve to relieve certain fiduciaries
from liability when participants or beneficiaries
exercise control over the assets in their individual
accounts, the Department of Labor has taken the
position that a participant or beneficiary will not be
considered to have exercised control when the par-
ticipant or beneficiary is merely apprised of invest-
ments that will be made on his or her behalf in the
absence of instructions to the contrary. See 29 CFR
§ 2550.404c–1 and 57 F.R. 46924.

cash in any case in which the employee
does not make an affirmative election to
have that amount contributed to the trust.
Similarly, under § 403(b), there is no re-
quirement that an employee receive an
amount in cash in any case in which the
employee does not make an affirmative
election to have that amount contributed to
an annuity contract. Thus, a contribution
to purchase an annuity contract under
§ 403(b) will not fail to be made under a
salary reduction agreement merely be-
cause, when an employee fails to make an
affirmative election with respect to an
amount of compensation, that amount is
contributed on the employee’s behalf to an
annuity contract, provided that the em-
ployee had an effective opportunity to elect
to receive that amount in cash. The em-
ployee has an effective opportunity to elect
to receive an amount in cash as required
under § 1.401(k)–1(a)(3)(i) if the em-
ployee receives notice of the availability of
the election and the employee has a rea-
sonable period before the cash is currently
available to make the election.
In this case, compensation reduction
contributions made by Employer X to
Plan A, including those made on behalf of
a newly hired employee who has not filed
an election to the contrary and those made
on behalf of a current employee who has
elected less than 4-percent compensation
reduction contributions, are amounts con-
tributed pursuant to a procedure under
which the employee receives a notice ex-
plaining his or her rights to have no com-
pensation reduction contributions made
and, after receiving the notice, the em-
ployee has a reasonable period before the
cash is currently available to elect to re-
ceive the cash in lieu of having it con-
tributed towards the purchase of an annu-
ity contract. Thus, an employee has an
effective opportunity to elect to receive
cash or have a contribution made towards
the purchase of an annuity contract. In
addition, the employee is not able to re-
ceive, prior to a distributable event de-
scribed in § 403(b)(11), amounts con-
tributed towards the purchase of an
annuity contract. Finally, compensation
reduction contributions made under the
plan are not contributions made pursuant
to a one-time irrevocable election because
the employee can change the election in
the future. Consequently, the compensa-
tion reduction contributions under Plan A
as amended are contributions made pur-
suant to a salary reduction agreement de-
scribed in § 403(b).
HOLDING
Where, as in this case, a newly hired or
current employee has an effective oppor-
tunity to elect to receive an amount in
cash or have that amount contributed by
the employer to an annuity contract de-
scribed in § 403(b), those contributions
made on the employee’s behalf to the an-
nuity contract in lieu of receipt of cash
compensation will not fail to be consid-
ered to be made under a salary reduction
agreement merely because they are made
pursuant to an arrangement under which,
in any case in which an employee does
not affirmatively elect to receive cash, the
employee’s compensation is reduced by a
fixed percentage and that amount is con-
tributed on the employee’s behalf to the
annuity contract. This holding would be
the same if (1) Plan A were described in
§ 403(b)(1)(A)(ii) (relating to arrange-
ments maintained by State and local
school systems), or (2) the funding vehi-
cles under Plan A were custodial accounts
described in § 403(b)(7) or retirement in-
come accounts described in § 403(b)(9),
provided the requirements of such respec-
tive Code sections are otherwise satisfied.
PAPERWORK REDUCTION ACT
The collection of information con-
tained in this revenue ruling has been re-
viewed and approved by the Office of
Management and Budget (OMB) in ac-
cordance with the Paperwork Reduction
Act (44 U.S.C. 3507) under control num-
ber 1545-1694.
An agency may not conduct or sponsor,
and a person is not required to respond to,
a collection of information unless the col-
lection of information displays a valid
OMB control number.
The collections of information in this
revenue ruling are in the third, fifth, sev-
enth and eighth paragraphs in the section
headed “FACTS” and in the tenth para-
graph in the section headed “LAW AND
ANALYSIS.” The collections of infor-
mation are required to enable personnel in
the Tax Exempt and Government Entities
Division of the Internal Revenue Service
to determine if an employer’s retirement
plan satisfies the requirements to obtain
favorable tax treatment and to enable cer-
tain employee elections to meet the re-
quirements of § 403(b). The collections
of information are required to obtain a
benefit. The likely respondents are State
and local government entities and not-for-
profit institutions.
The estimated total annual reporting
burden is 175 hours. The estimated an-
nual burden per respondent is 1 hour and
45 minutes. The estimated number of re-
spondents is 100. The estimated annual
frequency of responses is on occasion.
Books or records relating to a collec-
tion of information must be retained as
long as their contents may become mater-
ial in the administration of any Internal
Revenue law. Generally, tax returns and
tax return information are confidential, as
required by 26 U.S.C. 6103.
DRAFTING INFORMATION
The principal author of this revenue
ruling is Roger Kuehnle of the Tax Ex-
empt and Government Entities Division.
For further information regarding this
revenue ruling, call the Employee Plans’
taxpayer assistance telephone service at
(202) 622-6074/6075 (not toll-free num-
bers) between 1:30 and 3:30 p.m. Eastern
Time, Monday through Thursday.
Section 411.—Minimum Vesting
Standards
26 CFR 1.411(d)–4: Section 411(d)(6) protected
benefits.
(Also, § 401; § 1.401(a)(31)–1.)
Qualified plan; default rollover; in-
voluntary cash-out.This ruling provides
that if plan participants are given ade-
quate notice including their right to elect a
cash distribution, a qualified plan can be
amended to permit a default direct
rollover under section 401(a)(31) of an in-
voluntary cash-out without there being a
violation of section 411(d)(6) of the Code.
Rev. Rul. 2000–36
ISSUE
Will an amendment to change the default
method of payment to a direct rollover for
involuntary distributions when a distributee
fails affirmatively to elect to make a direct
July 31, 20001402000–31 I.R.B.

rollover or to elect a cash payment under
the facts described below cause the plan to
fail to satisfy § 401(a)(31) or § 411(d)(6) of
the Internal Revenue Code?
FACTS
Employer X maintains Plan A, a quali-
fied defined contribution plan that does
not include any after-tax contributions or
other amounts that would not be included
in gross income upon distribution. Plan A
provides for an involuntary distribution to
an employee upon separation from ser-
vice if his or her vested account balance is
$5,000 or less. Plan A includes a direct
rollover option for all distributions. Plan
A provides that if a separating employee’s
vested account balance is $5,000 or less,
and the separating employee does not
elect a direct rollover either to another
qualified plan or to an individual retire-
ment arrangement (“IRA”), the vested ac-
count balance is to be paid in a single sum
cash payment to the employee.
Employer X amends Plan A to provide
that the default form of payment of any
involuntary cash-out from Plan A greater
than $1,000 but less than or equal to
$5,000 will be a direct rollover (an eligi-
ble rollover distribution that is paid di-
rectly to an eligible retirement plan for the
benefit of the distributee) to an IRA, but
that separating employees will instead re-
ceive a cash payment if they so elect.
Under the amendment, this default direct
rollover applies only if the separating em-
ployee fails to request affirmatively (1) a
cash payment to that employee or (2) a di-
rect rollover to another qualified plan or
an IRA designated by the separating em-
ployee. The amendment also provides
that in the case of a default direct
rollover, the plan administrator will se-
lect
1
an IRA trustee, custodian, or issuer
(the “trustee”) that is unrelated to Em-
ployer X, establish the IRA with that
trustee on behalf of any separating em-
ployee who fails affirmatively to elect a
direct rollover or a cash payment, and
make the initial investment choices for
the account.
The administrative procedures of Plan
A are changed with respect to any § 402(f)
notice provided on or after the effective
date of the amendment to a separating em-
ployee with a vested account balance
greater than $1,000 but not greater than
$5,000. After the change, the plan admin-
istrator will include with the § 402(f) no-
tice an explanation, as required by
§ 1.401(a)(31)–1 of the Income Tax Regu-
lations, of the default direct rollover (and
other appropriate information such as the
name, address, and telephone number of
the IRA trustee and information regarding
IRA maintenance and withdrawal fees and
how the IRA funds will be invested). The
default direct rollover will occur not less
than 30 days and not more than 90 days
after the § 402(f) notice with the explana-
tion of the default direct rollover is pro-
vided to the separating employee.
LAW AND ANALYSIS
Section 401(a)(31) provides, in part,
that a trust shall not constitute a qualified
trust unless the plan of which the trust is
a part provides that if the distributee of
any eligible rollover distribution (i)
elects to have the distribution paid to an
eligible retirement plan, and (ii) specifies
the eligible retirement plan to which the
distribution is to be paid, the distribution
will be paid in a direct rollover to the eli-
gible retirement plan specified.
Section 402(f) requires a plan admin-
istrator, within a reasonable period of
time before making an eligible rollover
distribution from an eligible retirement
plan, to provide to the recipient a written
explanation of the rollover provisions of
§ 401(a)(31) and § 402(c) (direct
rollover and 60-day rollover), the 20-
percent mandatory withholding require-
ment under § 3405, and other tax provi-
sions in § 402 that apply to the eligible
rollover distribution.
Section 411(d)(6)(A) provides, in part,
that a plan participant’s accrued benefit
may not be decreased by a plan amend-
ment other than by an amendment de-
scribed in § 412(c)(8) of the Code or
§ 4281 of the Employee Retirement In-
come Security Act of 1974. Section
411(d)(6)(B) provides that an amendment
eliminating or reducing an optional form
of benefit is treated as an amendment re-
ducing an employee’s accrued benefit un-
less otherwise provided in Income Tax
Regulations.
Section 1.401(a)(31)–1, Q&A-7 pro-
vides, in part, that a plan administrator
may establish a default procedure so that
if a distributee fails to make an affirma-
tive election, he or she is treated as having
made a direct rollover election. However,
that regulation requires the plan adminis-
trator to first furnish the distributee with
an explanation of the default procedure
and an explanation of the direct rollover
option within the time period provided in
§ 1.402(f)–1, Q&A-2 for the written ex-
planation described in § 402(f).
Section 1.402(f)–1, Q&A-1 prescribes
the general rule with respect to the con-
tents of the written explanation (§ 402(f)
notice) that must be provided to a distrib-
utee by a plan administrator before an
eligible rollover distribution is made.
Section 1.402(f)–1, Q&A-2 provides gen-
erally that the plan administrator must
provide a distributee of an eligible
rollover distribution with a § 402(f) notice
no less than 30 days and no more than 90
days before the date of the distribution.
Although a participant may, under the cir-
cumstances described in § 1.402(f)–1,
Q&A-2, affirmatively elect to receive a
distribution before the expiration of the 30
days after the receipt of a § 402(f) notice, that
rule would not apply to a default direct
rollover.
Section 1.411(d)–4, Q&A-1(a) defines a
“section 411(d)(6) protected benefit” as a
benefit described in § 411(d)(6)(A), early
retirement benefits and retirement-type sub-
sidies described in § 411(d)(6)(B)(i), and
optional forms of benefit described in
§ 411(d)(6)(B)(ii) and provides that those
benefits, to the extent that they are accrued,
are subject to the protections of § 411(d)(6).
The default status of an optional form
of benefit is not a section 411(d)(6) pro-
tected benefit. Thus, an amendment to
change Plan A’s default method of pay-
2000–31 I.R.B.141July 31, 2000
1
The Department of Labor (the “DOL”) has advised
Treasury and the Service that, under Title I of the
Employee Retirement Income Security Act
(“ERISA”), in the context of a default direct rollover
described in this ruling, where the distribution con-
stitutes the entire benefit rights of the participant, the
participant will cease to be a participant covered
under the plan within the meaning of 29 CFR
§ 2510.3–3(d)(2)(ii)(B), and the distributed assets
will cease to be plan assets within the meaning of 29
CFR § 2510.3–101. The DOL also noted that the
selection of an IRA trustee, custodian or issuer and
IRA investment for purposes of a default direct
rollover would constitute a fiduciary act subject to
the general fiduciary standards and prohibited trans-
action provisions of ERISA. In addition, plan provi-
sions governing the default direct rollover of distrib-
utions, including the participant’s ability to
affirmatively opt out of the arrangement, must be
described in the plan’s summary plan description
furnished to participants and beneficiaries.

ment for an involuntary distribution from
a direct cash payment to a direct rollover
does not violate § 411(d)(6). As required
in § 1.401(a)(31)–1, Q&A-7, Plan A’s
procedures provide that each distributee
subject to the default will receive an ex-
planation of the default procedure and the
direct rollover option within a time period
before the default direct rollover that sat-
isfies the timing requirements of
§ 1.402(f)–1, Q&A-2. Thus, the provi-
sion of a direct rollover as the default
method of payment under the facts de-
scribed above does not cause Plan A to
fail to satisfy § 401(a)(31).
HOLDING
An amendment to change the default
method of payment to a direct rollover
as the default when a distributee fails af-
firmatively to elect to make a direct
rollover or to elect a cash payment under
the facts described above does not cause
Plan A to fail to satisfy § 401(a)(31) or
§ 411(d)(6).
DRAFTING INFORMATION
The principal author of this revenue
ruling is Michael Rubin of the Tax Ex-
empt and Government Entities Division.
For further information regarding this
revenue ruling, call the Employee Plans’
taxpayer assistance telephone service at
(202) 622-6074/6075 (not toll-free num-
bers) between 1:30 and 3:30 p.m. Eastern
Time, Monday through Thursday. Mr.
Rubin’s telephone number is (202) 622-
6214 (also not a toll-free call).
Section 457.—Deferred
Compensation Plans of State
and Local Governments and
Tax-Exempt Organizations
26 CFR 1.457–1: Compensation deferred under
eligible deferred compensation plans.
Cash or deferred arrangements;
nonqualified deferred compensation.
This ruling specifies the criteria to be met
in order to automatically defer a certain
percentage of an employee’s compensa-
tion into that employee’s account in an el-
igible deferred compensation plan spon-
sored by the eligible employer.
Rev. Rul. 2000–33
ISSUE
Will a deferred compensation plan fail to be
an “eligible deferred compensation plan” de-
scribed in § 457(b) of the Internal Revenue
Code merely because deferrals are made under
an arrangement whereby a fixed percentage of
an employee’s compensation is deferred on the
employee’s behalf under the plan unless the
employee affirmatively elects to receive
the amount in cash?
FACTS
County M, a political subdivision of
State X, maintains Plan A, an eligible de-
ferred compensation plan described in
§ 457(b). Under Plan A, any employee of
County M, including a newly hired em-
ployee, may choose to enter into an agree-
ment pursuant to which the employee’s
taxable compensation is reduced and de-
ferrals to the employee’s account in Plan
A are credited by County M on the em-
ployee’s behalf. The employee may des-
ignate a percentage of the employee’s
compensation as elective deferrals, sub-
ject to the limitations of § 457(b). Plan A
does not permit any other type of defer-
rals, and no other plan of County M per-
mits employees to make elective defer-
rals. Deferrals under Plan A are
immediately nonforfeitable and are sub-
ject to the limitations and requirements of
§ 457(b).
County M proposes to implement, ef-
fective the next January 1, an automatic
election feature in Plan A under which, if
a newly hired or current employee has not
affirmatively elected to receive cash com-
pensation or to have at least 2 percent of
compensation deferred under Plan A, his
or her compensation will automatically be
reduced by 2 percent, and this amount
will be credited to the employee’s account
in Plan A. An election not to make defer-
rals or to defer a different percentage of
compensation can be made at any time.
Elections filed at a later date are effective
for the month next following the date the
election is filed.
In the case of a new employee, the elec-
tion not to make deferrals will be effective
for the first month after the individual first
became an employee and for subsequent
months (until superseded by a subsequent
election) if filed within a reasonable period
of time ending before the beginning of the
month. Thus, if a new employee files an
election to receive cash in lieu of making
deferrals and the election is filed a reason-
able period ending before the beginning of
the first month after the individual first be-
comes an employee, then no deferrals for
that (or any subsequent) month are made on
the employee’s behalf to Plan A until the
employee makes a subsequent affirmative
election to reduce his or her compensation.
At the time the employee is hired, the em-
ployee will receive a notice that explains
the automatic election and the employee’s
right to elect to have no such deferrals
made under the plan or to alter the amount
of those deferrals, including the procedure
for exercising that right and the timing for
implementation of any such election.
The proposed amendment to Plan A also
provides that, with respect to current em-
ployees, if the employee files an election to
receive cash in lieu of making deferrals and
the election is filed during the reasonable
period ending on the January 1 effective
date, then no deferrals for the period begin-
ning on or after the January 1 effective date
are made on the employee’s behalf under
Plan A until the employee makes a subse-
quent affirmative election to reduce his or
her compensation. At the beginning of the
reasonable period ending on the January 1
effective date, each current employee re-
ceives a notice that explains the new auto-
matic election and the employee’s right to
elect to have no such deferrals made under
the plan or to alter the amount of those de-
ferrals, including the procedure for exercis-
ing that right and the timing for implemen-
tation of any such election.
Thereafter, each employee is notified
annually of his or her deferral percentage,
and of his or her right to change the per-
centage or to elect not to make deferrals,
including the procedure for exercising
that right and the timing for implementa-
tion of any such election.
Plan A provides that deferrals will be
invested in accordance with the partici-
pant’s election among a broad range of in-
vestment funds held by the trustee of Plan
A or, if no investment election is made by
a participant, in the trust’s balanced fund
which includes both diversified equity
and fixed income investments.
LAW AND ANALYSIS
Section 457(a) provides that in the
case of a participant in an eligible de-
ferred compensation plan, any amount
July 31, 20001422000–31 I.R.B.

of compensation deferred under the
plan, and any income attributable to the
amounts so deferred, shall be includible
in gross income only for the taxable year
in which such compensation or other in-
come is paid or otherwise made avail-
able to the participant or other benefi-
ciary.
Section 457(b) defines the term “eli-
gible deferred compensation plan.” Sec-
tion 457(b)(4) and §1.457–2(g) of the
Income Tax Regulations provide that an
“eligible deferred compensation plan”
must provide that compensation will be
deferred for any calendar month only if
an agreement providing for the deferral
has been entered into before the begin-
ning of such month.
No provision of § 457(b) limits deferrals
under an eligible plan to elective or volun-
tary deferrals, nor do the provisions of
§ 457(b) (including the limitations of
§ 457(b)(2) and (3)) distinguish between
elective or voluntary deferrals and other
types of deferrals. SeeNotice 87–13,
Q &A 26, 1987–1 C.B. 432, 444. In the
case of these other types of deferrals, the
requirements of § 457(b)(4) are satisfied
without the employee entering into an
agreement to defer compensation. Rather,
the obligation of the employer (or the
obligation of the employee as a condition
of employment) satisfies § 457(b)(4).
Similarly, the automatic election pro-
cedure described above will not cause a
plan to fail the requirements of
§ 457(b)(4). In the absence of an affir-
mative election to the contrary entered
into before the beginning of the month,
deferrals with respect to compensation
for the month will be made pursuant to
the automatic election procedure. Alter-
natively, if an employee makes an affir-
mative election to change the automatic
election and receive a corresponding
amount in cash, the employee’s affirma-
tive election will govern any deferrals
for the month. In either case, the defer-
rals for a month with respect to an em-
ployee are clearly established before the
beginning of the month, and the require-
ments of § 457(b)(4) are satisfied.
HOLDING
Where, as under the proposed amend-
ment to Plan A, the obligation to make
deferrals with respect to an employee’s
compensation for a month is established
before the beginning of a month by ei-
ther an automatic election or by an
agreement to alter the terms of the auto-
matic election and receive cash in lieu of
making deferrals, an eligible deferred
compensation plan will satisfy the re-
quirements of § 457(b)(4).
PAPERWORK REDUCTION ACT
The collection of information con-
tained in this revenue ruling has been re-
viewed and approved by the Office of
Management and Budget (OMB) in ac-
cordance with the Paperwork Reduction
Act (44 U.S.C. 3507) under control
number 1545-1695.
An agency may not conduct or spon-
sor, and a person is not required to re-
spond to, a collection of information un-
less the collection of information
displays a valid OMB control number.
The collection of information in this
revenue ruling is in the third, fourth, and
fifth paragraphs in the section headed
“FACTS”. The collection of informa-
tion is necessary to ensure that the in-
creased retirement savings due to auto-
matic enrollment is truly voluntary. The
collection of information is needed to
obtain a benefit. The likely respondents
are state and local governmental enti-
ties, and to a lesser extent, not-for-profit
organizations.
The estimated total annual reporting
burden is 500 hours. The estimated av-
erage annual burden per respondent is 1
hour. The estimated number of respon-
dents is 500. The estimated annual fre-
quency of responses is on occasion.
Books or records relating to a collec-
tion of information must be retained as
long as their contents may become ma-
terial in the administration of any Inter-
nal Revenue law. Generally, tax returns
and tax return information are confiden-
tial, as required by 26 U.S.C. 6103.
DRAFTING INFORMATION
The principal author of this revenue
ruling is John Tolleris of the Office of
Associate Chief Counsel (Tax Exempt
and Government Entities). For further
information regarding this revenue rul-
ing, contact him at (202) 622-6060 (not
a toll free number).
Section 6012.—Persons
Required to Make Returns of
Income
26 CFR 1.6012–5: Composite return in lieu of
specified form.
What are the obligations of those who participate
in the Form 1040 IRS e-fileprogram to the Service,
taxpayers, and other participants. See Rev. Proc.
2000–31, page 146.
Section 6061.—Signing of
Returns and Other Documents
26 CFR 1.6061–1: Signing of returns and other
documents by individuals.
What are the obligations of those who participate
in the Form 1040 IRSe-fileprogram to the Service,
taxpayers, and other participants. See Rev. Proc.
2000–31, page 146.
Section 6695.—Other Assessable
Penalties With Respect to the
Preparation of Income Tax
Returns for Other Persons
26 CFR 1.6695(b): Failure to sign return.
T.D. 8893
DEPARTMENT OF THE TREASURY
Internal Revenue Service
26 CFR Part 1
Retention of Income Tax Return
Preparers’ Signatures
AGENCY: Internal Revenue Service
(IRS), Treasury.
ACTION: Final regulations.
SUMMARY: This document contains
final regulations that provide income tax
return preparers with two alternative
means of meeting the requirement that a
preparer retain the copy of the return or
claim manually signed by the preparer.
The regulations are necessary to inform
preparers about the two alternatives and
to provide them with the guidance needed
to comply with the alternatives.
DATES: Effective Date:These regula-
tions are effective July 18, 2000.
Applicability Date: For dates of applic-
ability, see §1.6695–1(g) of these regula-
tions.
2000–31 I.R.B.143July 31, 2000

FOR FURTHER INFORMATION CON-
TACT: Beverly A. Baughman (202) 622-
4940 (not a toll-free number).
SUPPLEMENTARY INFORMATION:
Background
This document contains amendments
to the Income Tax Regulations (26 CFR
part 1) relating to the penalty for failure
to sign an income tax return under sec-
tion 6695(b) of the Internal Revenue
Code.
On December 31, 1998, final and tem-
porary regulations (T.D. 8803, 1999–12
I.R.B. 15) under section 6695 were pub-
lished in the Federal Register(63 F.R.
72182). A notice of proposed rulemak-
ing (REG–106386–98, 1999–12 I.R.B.
31) cross-referencing the temporary reg-
ulations was published in the Federal
Register(63 F.R. 72218) on the same
date. Although written or electronic
comments and requests for a public hear-
ing were solicited, no comments were
received and no public hearing was
requested or held. The proposed regula-
tions under section 6695 are adopted by
this Treasury decision and the corre-
sponding temporary regulations are re-
moved.
Section 6695(b) provides that any per-
son who is an income tax return preparer
with respect to a return or claim for re-
fund, who is required by regulations pre-
scribed by the Secretary to sign the re-
turn or claim, and who fails to comply
with those regulations, must pay a
penalty of $50 for such failure, unless it
is shown that the failure is due to reason-
able cause and not willful neglect. The
maximum penalty imposed with respect
to documents filed during a calendar
year will not exceed $25,000.
Section 7701(a)(36)(A) provides that,
in general, the term income tax return
preparermeans any person who prepares
for compensation, or who employs one
or more persons to prepare for compen-
sation, any return of tax or claim for re-
fund imposed by subtitle A. For pur-
poses of the preceding sentence, the
preparation of a substantial portion of a
return or claim is treated as if it were the
preparation of such return or claim.
Section 1.6695–1(b)(1) generally pro-
vides that an income tax return preparer,
with respect to a return or claim for re-
fund, must manually sign the return or
claim (which may be a photocopy) in the
appropriate space provided on the return
or claim after it is completed and before
it is presented to the taxpayer (or nontax-
able entity) for signature.
Explanation of Provisions
The final regulations provide that the
employer of the preparer or the partner-
ship in which the preparer is a partner, or
the preparer (if not employed or engaged
by a preparer and not a partner of a part-
nership which is a preparer), must retain
the manually signed copy of the return or
claim. In the alternative, the person re-
quired to retain the manually signed copy
of the return or claim may either retain a
photocopy of that manually signed copy
or use an electronic storage system meet-
ing the requirements of section 4 of Rev.
Proc. 97–22 (1997–1 C.B. 652), or proce-
dures subsequently prescribed by the
Commissioner, to store and produce a
copy of the return or claim manually
signed by the preparer.
Special Analyses
It has been determined that this Trea-
sury decision is not a significant regula-
tory action as defined in Executive Order
12866. Therefore, a regulatory assess-
ment is not required. It also has been de-
termined that section 553(b) of the Ad-
ministrative Procedure Act (5 U.S.C.
chapter 5) does not apply to these regula-
tions, and because the regulations do not
impose a collection of information on
small entities, the Regulatory Flexibility
Act (5 U.S.C. chapter 6) does not apply.
Pursuant to section 7805(f) of the Internal
Revenue Code, the notice of proposed
rulemaking that preceded these regula-
tions was submitted to the Chief Counsel
for Advocacy of the Small Business Ad-
ministration for comment on its impact on
small business.
Drafting Information
The principal author of these regula-
tions is Beverly A. Baughman of the Of-
fice of Assistant Chief Counsel (Income
Tax & Accounting). However, other
personnel from the IRS and Treasury
Department participated in their devel-
opment.
* * * * *
Adoption of Amendments to the
Regulations
Accordingly, 26 CFR part 1 is amended
as follows:
PART 1—INCOME TAXES
Paragraph 1. The authority citation for
part 1 is amended by removing the entry
for section 1.6695–1T and by revising the
entry for section 1.6695–1 to read in part
as follows:
Authority: 26 U.S.C. 7805 * * *
Section 1.6695–1 also issued under 26
U.S.C. 6060(b) and 6695(b). * * *
Par. 2. Section 1.6695–1 is amended
by:
1. Revising paragraph (b)(4)(i).
2. Adding paragraph (g).
3. Removing the authority citation im-
mediately following the end of the sec-
tion.
The revision and addition read as fol-
lows:
§1.6695–1 Other assessable penalties
with respect to the preparation of income
tax returns for other persons.
* * * * *
(b) * * *
(4)(i) The manual signature require-
ment of paragraphs (b)(1) and (2) of this
section may be satisfied by a photocopy
of a copy of the return or claim for refund
which copy is manually signed by the pre-
parer after completion of its preparation.
After a copy of the return or claim for re-
fund is signed by the preparer and before
it is photocopied, no person other than the
preparer may alter any entries on the copy
other than to correct arithmetical errors
discernible on the return or claim for re-
fund. The employer of the preparer or the
partnership in which the preparer is a
partner, or the preparer (if not employed
or engaged by a preparer and not a partner
of a partnership which is a preparer), must
retain the manually signed copy of the re-
turn or claim for refund. In the alterna-
tive, for a return or claim for refund pre-
sented to a taxpayer for signature after
December 31, 1998, and for returns or
claims for refund retained on or before
that date, the person required to retain the
manually signed copy of the return or
claim for refund may choose to retain a
photocopy of the manually signed copy of
the return or claim for refund, or use an
electronic storage system to store and pro-
July 31, 20001442000–31 I.R.B.

duce a copy of the manually signed return
or claim for refund. For purposes of this
paragraph (b)(4)(i), an electronic storage
system must meet the electronic storage
system requirements prescribed in section
4 of Rev. Proc. 97–22 (1997–1 C.B.
652)(see §601.601(d)(2) of this chapter)
or other procedures prescribed by the
Commissioner. A record of any arithmeti-
cal errors corrected must be retained and
made available upon request by the per-
son required to retain the manually signed
copy of the return or claim for refund.
* * * * *
(g) Effective date. This section applies
to income tax returns and claims for re-
fund presented to a taxpayer for signature
after December 31, 1998, and for returns
or claims for refund retained on or before
that date.
Section 1.6695–1T [Removed]
Par. 3. Section 1.6695–1T is removed.
Robert E. Wenzel,
Deputy Commissioner of
Internal Revenue.
Approved June 30, 2000.
Jonathan Talisman,
Deputy Assistant Secretary
of the Treasury.
(Filed by the Office of the Federal Register on July
17, 2000, 8:45 a.m., and published in the issue of the
Federal Register for July 18, 2000, 65 F.R. 44436)
2000–31 I.R.B.145July 31, 2000

July 31, 20001462000–31 I.R.B.
Part III. Administrative, Procedural, and Miscellaneous
26 CFR 601.602: Tax forms and instructions.
(Also Part I, sections 6012, 6061; 1.6012–5,
1.6061–1.)
Rev. Proc. 2000–31
CONTENTS
SECTION 1 PURPOSE
SECTION 2 BACKGROUND AND
CHANGES
SECTION 3 DEFINITIONS
SECTION 4 ACCEPTANCE IN THE
IRS e-filePROGRAM
SECTION 5 RESPONSIBILITIES OF
AN AUTHORIZED IRS e-file
PROVIDER
SECTION 6 PENALTIES
SECTION 7 MONITORING AND
SANCTIONING OF AN AUTHO-
RIZED IRS e-filePROVIDER
SECTION 8 ADMINISTRATIVE
REVIEW PROCESS
SECTION 9 PILOT PROGRAMS
SECTION 10 EFFECT ON OTHER
DOCUMENTS
SECTION 11 EFFECTIVE DATE
SECTION 12 INTERNAL REVENUE
SERVICE OFFICE CONTACT
SECTION 1. PURPOSE
This revenue procedure informs those
who participate in the IRS e-fileProgram
of their obligations to the Internal Rev-
enue Service, taxpayers, and other partici-
pants. The IRS e-fileProgram allows tax-
payers to file their income tax returns
through an Electronic Return Originator,
or by using a personal computer, modem,
and commercial tax preparation software
(the Form 1040 IRS On-Line Filing Pro-
gram). The following returns can be filed
under the IRS e-fileProgram: (1) Form
1040 and Form 1040A, U. S. Individual
Income Tax Return; and (2) Form
1040EZ, Income Tax Return for Single
and Joint Filers with no Dependents. This
revenue procedure modifies and super-
sedes Rev. Proc. 98–50, 1998–2 C.B. 368
(IRS e-fileProgram), and Rev. Proc.
98–51, 1998–2 C.B. 380 (Form 1040 IRS
On-Line Filing Program).
SECTION 2. BACKGROUND AND
CHANGES
.01 Section 1.6011–1(a) of the Income
Tax Regulations provides that every per-
son subject to income tax must make a re-
turn or statement as required by the regu-
lations. The return or statement must
include the information required by the
applicable regulations or forms.
.02 Section 301.6061–1(b) of the Reg-
ulations on Procedure and Administration
authorizes the Secretary to prescribe in
forms, instructions, or other appropriate
guidance the method of signing any re-
turn, statement, or other document re-
quired to be made under any provision of
the internal revenue laws or regulations.
.03 Section 1.6012–5 of the regula-
tions provides that the Commissioner may
authorize the use, at the option of a person
required to make a return, of a composite
return in lieu of any form specified in 26
CFR Part 1 (Income Tax), subject to the
conditions, limitations, and special rules
governing the preparation, execution, fil-
ing, and correction thereof as the Com-
missioner may deem appropriate.
.04 This revenue procedure combines
the rules governing the IRS e-filePro-
gram with the rules governing the Form
1040 IRS On-Line Filing Program (previ-
ously set forth in Rev. Proc. 98–50 and
Rev. Proc. 98–51, respectively).
.05 This revenue procedure incorpo-
rates substantive changes made to the IRS
e-fileProgram, including changes to the
definitions of program participants (see
section 3 of this revenue procedure) and
changes to the sanctions that may be im-
posed upon Authorized IRS e-file
Providers (see section 7 of this revenue
procedure).
.06 Many of the rules governing par-
ticipation in the IRS e-fileProgram are
now set forth in IRS Publications. See
section 5.01 of this revenue procedure.
SECTION 3. DEFINITIONS
.01 A participant in the IRS e-filePro-
gram is referred to as an “Authorized IRS
e-fileProvider.” The Authorized IRS
e-fileProvider categories are:
(1) ELECTRONIC RETURN
ORIGINATOR. An “Electronic Return
Originator” (ERO) originates the elec-
tronic submission of income tax returns.
(2) INTERMEDIATE SERVICE
PROVIDER. An “Intermediate Service
Provider” receives tax return information
from an ERO (or from a taxpayer who
files electronically using a personal com-
puter, modem, and commercial tax prepa-
ration software), processes the tax return
information, and either forwards the in-
formation to a Transmitter, or sends the
information back to the ERO (or tax-
payer).
(3) SOFTWARE DEVELOPER. A
“Software Developer” develops software
for the purposes of (a) formatting elec-
tronic tax return information according to
Publication 1346, Electronic Return File
Specifications and Record Layouts for
Individual Income Tax Returns; and/or
(b) transmitting electronic tax return in-
formation directly to the Service.
(4) TRANSMITTER. A “Transmit-
ter” transmits electronic tax return infor-
mation directly to the Service.
.02 The Authorized IRS e-file
Provider categories are not mutually ex-
clusive. For example, an ERO can, at the
same time, be a Transmitter, Software
Developer, or Intermediate Service
Provider depending on the function(s)
performed.
.03 A “Responsible Official” is an in-
dividual with authority over the IRS
e-fileoperation of the office(s) of the Au-
thorized IRS e-fileProvider, is the first
point of contact with the Service, and has
authority to sign revised IRS e-fileappli-
cations. A Responsible Official is re-
sponsible for ensuring that the Autho-
rized IRS e-fileProvider adheres to the
provisions of this revenue procedure and
the publications and notices governing
the IRS e-fileProgram.
SECTION 4. ACCEPTANCE IN THE
IRS e-filePROGRAM
.01 Individuals, businesses, and orga-
nizations that wish to participate in the
IRS e-fileProgram must apply for partic-
ipation and must be accepted by the Ser-
vice.
.02 The procedures governing applica-
tion to the IRS e-fileProgram are in-
cluded in Publication 3112, The IRS
e-fileApplication Package.
.03 The circumstances under which
the Service may deny participation in the
IRS e-fileProgram are included in Publi-

cation 1345, Handbook for Authorized
e-fileProviders of Individual Income Tax
Returns. An applicant who is denied par-
ticipation may seek administrative re-
view of the denial. See section 8 of this
revenue procedure.
.04 To continue participation in the
IRS e-fileProgram, Authorized IRS e-file
Providers must adhere to all requirements
of this revenue procedure and the publi-
cations and notices governing the IRS
e-fileProgram.
SECTION 5. RESPONSIBILITIES OF
AN AUTHORIZED IRS e-file
PROVIDER
.01 To ensure that returns are accu-
rately and efficiently filed, an Authorized
IRS e-fileProvider must comply with the
provisions of this revenue procedure and
all publications and notices governing the
IRS e-fileProgram. The Service will
from time to time update such publica-
tions and notices to reflect changes to the
program. It is the responsibility of the
Authorized IRS e-fileProvider to ensure
that it complies with the latest version of
all publications and notices. The publica-
tions and notices governing the IRS e-file
Program include:
(1) Publication 1345, Handbook for
Authorized IRS e-fileProviders of Indi-
vidual Income Tax Returns;
(2) Publication 1345A, Filing Sea-
son Supplement for Authorized IRS e-file
Providers of Individual Income Tax Re-
turns;
(3) Publication 1346, Electronic Re-
turn File Specifications and Record Lay-
outs for Individual Income Tax Returns;
(4) Publication 1436, Test Package
for Electronic Filing of Individual In-
come Tax Returns;
(5) Publication 3112, The IRS e-file
Application Package; and
(6) Postings to the Electronic Filing
System Bulletin Board (EFS Bulletin
Board) and the IRS “Digital Daily” web
site at: http://www.irs.gov on the Internet.
.02 The publications and notices
listed in section 5.01 supplement this
revenue procedure but do not supersede
it. A violation of a provision of these
publications and notices is considered a
violation of this revenue procedure and
may subject the participant to the sanc-
tions provided in section 7 of this rev-
enue procedure.
SECTION 6. PENALTIES
.01 Penalties for Disclosure or Use of
Information.
(1) An Authorized IRS e-file
Provider, except a Software Developer
that does not have access to taxpayer in-
formation, is a tax return preparer under
the definition of § 301.7216–1(b). A tax
return preparer is subject to a criminal
penalty for unauthorized disclosure or use
of tax return information. See § 7216 of
the Internal Revenue Code and
§ 301.7216–1(a). In addition, § 6713 es-
tablishes civil penalties for unauthorized
disclosure or use of tax return information.
(2) Under § 301.7216–2(h), disclo-
sure of tax return information among Au-
thorized IRS e-fileProviders for the pur-
pose of electronically filing a return is
permissible. For example, an ERO may
pass on tax return information to an Inter-
mediate Service Provider and/or a Trans-
mitter for the purpose of having an elec-
tronic return formatted and transmitted to
the Service.
.02 Other Preparer Penalties.
(1) Preparer penalties may be as-
serted against an individual or firm meet-
ing the definition of an income tax return
preparer under § 7701(a)(36) and
§ 301.7701–15. Preparer penalties that
may be asserted under appropriate cir-
cumstances include, but are not limited to,
those set forth in §§ 6694, 6695, and
6713.
(2) Under § 301.7701–15(d), Autho-
rized IRS e-fileProviders are not income
tax return preparers for the purpose of as-
sessing most preparer penalties as long as
their services are limited to “typing, re-
production, or other mechanical assis-
tance in the preparation of a return or
claim for refund.”
(3) If an ERO, Intermediate Service
Provider, Transmitter, or the product of a
Software Developer alters the return in-
formation in a nonsubstantive way, this
alteration will be considered to come
under the “mechanical assistance” excep-
tion described in § 301.7701–15(d). A
nonsubstantive change is a correction or
change limited to a transposition error,
misplaced entry, spelling error, or arith-
metic correction.
(4) If an ERO, Intermediate Service
Provider, Transmitter, or the product of a
Software Developer alters the return in-
formation in a way that does not come
under the “mechanical assistance” excep-
tion, the Authorized IRS e-fileProvider
may be held liable for income tax return
preparer penalties. See § 301.7701–15;
Rev. Rul. 85–189, 1985–2 C.B. 341
(which describes a situation where a Soft-
ware Developer was determined to be an
income tax return preparer and subject to
certain preparer penalties).
.03 Other Penalties. In addition to the
above specified provisions, the Service
reserves the right to assert all appropriate
preparer, nonpreparer, and disclosure
penalties against an Authorized IRS e-file
Provider as warranted under the circum-
stances.
SECTION 7. MONITORING AND
SANCTIONING OF AN AUTHORIZED
IRS e-file PROVIDER
.01 The Service will monitor Autho-
rized IRS e-file Providers for compliance
with the rules governing the IRS e-file
Program. The Service may sanction an
Authorized IRS e-fileProvider for violat-
ing any provision of this revenue proce-
dure or the publications and notices gov-
erning the IRS e-fileProgram.
.02 Sanctions that the Service may im-
pose upon an Authorized IRS e-file
Provider for violations described in sec-
tion 7.01 of this revenue procedure in-
clude a written reprimand, suspension or
expulsion from the program, and other
sanctions, depending on the seriousness
of the infraction. Publication 1345 de-
scribes the infraction categories and the
rules governing the imposition of sanc-
tions.
SECTION 8. ADMINISTRATIVE
REVIEW PROCESS
.01 An applicant that has been denied
participation in the IRS e-fileProgram
(see section 4.03 of this revenue proce-
dure) has the right to an administrative re-
view. During the administrative review
process, the denial of participation re-
mains in effect.
.02 An Authorized IRS e-fileProvider
may seek administrative review for any
sanction the Service may impose under
section 7 of this revenue procedure.
.03 Publication 1345 describes the pro-
cedures regarding administrative review
of a denial of participation in the IRS
e-fileProgram and any sanction imposed
by the Service.
2000–31 I.R.B.147July 31, 2000

July 31, 20001482000–31 I.R.B.
SECTION 9. PILOT PROGRAMS
.01 The Service regularly conducts
pilot programs to introduce new technol-
ogy into the IRS e-fileProgram. These
pilot programs are usually conducted
within a limited geographic area or within
a limited taxpayer or practitioner commu-
nity. The Service establishes rules for par-
ticipating in these pilot programs and em-
bodies these rules in an implementing
document typically referred to as a “Mem-
orandum of Understanding” (MOU) or
“Memorandum of Agreement” (MOA).
Pilot participants must agree to the provi-
sions of the implementing document in
order to participate in the pilot program.
.02 An implementing document sup-
plements this revenue procedure, but does
not supersede it. Participants in a pilot
program remain subject to the provisions
of this revenue procedure unless the im-
plementing document specifically pro-
vides otherwise.
.03 A violation of a provision of an im-
plementing document is considered a vio-
lation of this revenue procedure and may
subject the participant to sanctions (see
section 7 of this revenue procedure).
SECTION 10. EFFECT ON OTHER
DOCUMENTS
Rev. Proc. 98–50, 1998–2 C.B. 368, and
Rev. Proc. 98–51, 1998–2 C.B. 380, are
modified and, as modified, are superseded.
SECTION 11. EFFECTIVE DATE
This revenue procedure is effective
July 13, 2000, except for the provisions of
section 7 of this revenue procedure,
which are effective for sanctions imposed
on or after January 1, 2001.
SECTION 12. INTERNAL REVENUE
SERVICE OFFICE CONTACT
All questions regarding this revenue
procedure should be directed to the Inter-
nal Revenue Service. The telephone
number for this purpose is (202) 283-
0531 (not a toll-free number).

2000–31 I.R.B.149July 31, 2000
Part IV. Items of General Interest
Automatic Enrollment Features
in Prototype Section 401(k)
Plans
Announcement 2000–60
The Service would like to bring to the
attention of prototype plan sponsors and
employers that currently maintain, or are
considering adopting, § 401(k) plans the
availability of automatic enrollment fea-
tures in pre-approved § 401(k) plans. In
general, § 401(k) plans that have auto-
matic enrollment features reportedly have
had significantly higher employee partici-
pation rates than § 401(k) plans without
such features.
Under an automatic enrollment feature
in an employer’s § 401(k) plan, a partici-
pant’s compensation is automatically re-
duced by a specified percentage, and that
amount is contributed as an elective con-
tribution on the participant’s behalf to the
plan, unless the participant affirmatively
elects not to have his or her compensation
reduced or to have it reduced by a differ-
ent amount. See Rev. Rul. 2000–8,
2000–7 I.R.B. 617 (February 14, 2000).
The Service “pre-approves” certain tax-
qualified retirement plans, including
§ 401(k) plans, under the Service’s proto-
type plan program, which is set forth in
Rev. Proc. 2000–20, 2000–6 I.R.B. 553.
Prototype plans are submitted by sponsors
to the Service for review for compliance
with applicable laws and procedures.
Sponsors, who may be financial institu-
tions or others, offer their Service-ap-
proved prototype plans to employers to
adopt for the benefit of employees.
Bad Debt Reserves of Thrift
Institutions
Announcement 2000–63
AGENCY: Internal Revenue Service
(IRS), Treasury.
ACTION: Withdrawal of proposed regu-
lations.
SUMMARY: This document withdraws
proposed regulations amending the in-
come tax regulations. This action is
taken to remove from the IRS’ inventory
of regulations projects certain proposed
regulations that will not be published in
final form because under a subsequent
amendment the underlying statute does
not apply to taxable years beginning after
December 31, 1995.
DATES: These proposed regulations are
withdrawn July 12, 2000.
FOR FURTHER INFORMATION CON-
TACT: Craig Wojay, of the Office of As-
sistant Chief Counsel, Financial Institu-
tions and Products, Internal Revenue
Service, 1111 Constitution Ave., NW,
Washington, DC 20224. Telephone (202)
622-3920, (not a toll-free number).
SUPPLEMENTARY INFORMATION:
Background
This document withdraws certain pro-
posed regulations previously published in
the Federal Register(FI–42–90, 1992–1
C.B. 1072 [57 F.R. 1232]) by the IRS.
These proposed regulations, §§1.593–12,
1.593–13, and 1.593–14, are being with-
drawn because under a subsequent
amendment the underlying statute, sec-
tion 593, does not apply subsections (a),
(b), (c), and (d) to taxable years begin-
ning after December 31, 1995.
Drafting Information
The principal author of this withdrawal
notice is Craig Wojay, Office of the As-
sistant Chief Counsel (Financial Institu-
tions and Products) within the Office of
the Chief Counsel, IRS. However, other
personnel from the IRS and the Treasury
Department participated in developing
the withdrawal notice.
* * * * *
Withdrawal of Proposed Amendments
to the Regulations
Accordingly, under the authority of 26
U.S.C. 7805, the proposed rulemaking
that was published in the Federal Regis-
teron Monday, January 13, 1992 (57
F.R. 1232) is withdrawn.
Robert E. Wenzel,
Deputy Commissioner
of Internal Revenue.
(Filed by the Office of the Federal Register on July
11, 2000, 8:45 a.m., and published in the issue of
the Federal Register for July 12, 2000, 65 F.R.
42900)
Supplemental Information on
Treasury Bills for Publication
1212
Announcement 2000–64
Banks, brokers, and other middlemen
who report discount on Treasury bill re-
demptions on Form 1099–INT must use
the owner’s purchase price, where avail-
able, to determine the amount of discount
to report. This information can usually be
obtained from the owner’s or middle-
man’s records. However, if the owner’s
purchase price is not available from ex-
isting records, the middleman must report
the discount as if the holder had pur-
chased the Treasury bill at its original
issue price. In this case, the middleman
must use as the original issue price the
noncompetitive issue price for the
longest-maturity Treasury bill maturing
on that date.
For Treasury bill redemptions when
the owner’s purchase price cannot be de-
termined, the following list gives the
noncompetitive issue prices and corre-
sponding amounts of discount to be re-
ported on Form 1099–INT for Treasury
bills maturing May through July 2000.
This list, which should also help middle-
men determine any amounts subject to
backup withholding, supplements the list
that appears in 1999 edition of Publica-
tion 1212,List of Original Issue Discount
Instruments.

Tax Treatment of Cafeteria
Plans; Public Hearing
Announcement 2000–65
AGENCY: Internal Revenue Service
(IRS), Treasury.
ACTION: Notice of public hearing on
proposed rulemaking.
SUMMARY: This document contains a
notice of public hearing on proposed reg-
ulations relating to the tax treatment of
cafeteria plans.
DATES: The public hearing is being held
on August 17, 2000, at 10 a.m. The IRS
must receive outlines of the topics to be dis-
cussed at the hearing by August 3, 2000.
ADDRESSES: The public hearing is being
held in Room 4718, Internal Revenue
Building, 1111 Constitution Avenue, NW.,
Washington, DC. Due to building security
procedures, visitors must enter at the 10
th
Street entrance, located between Constitu-
tion and Pennsylvania Avenues, NW. In
addition, all visitors must present photo
identification to enter the building.
Mail outlines to: Regulations Unit CC
(REG–117162–99), room 5226, Internal
Revenue Service, POB 7604, Ben Franklin
Station, Washington, DC 20044. Hand de-
liver outlines Monday through Friday be-
tween the hours of 8 a.m. and 5 p.m. to:
Regulations Unit CC (REG–117162–99),
Courier’s Desk, Internal Revenue Service,
1111 Constitution Avenue, NW., Washing-
ton, DC. Submit outlines electronically via
the Internet by selecting the “Tax Regs”
option on the IRS Home Page, or by sub-
mitting them directly to the IRS Internet
site at http://www.irs.gov/tax_regs/
regslist.html.
FOR FURTHER INFORMATION CON-
TACT: Concerning submissions of com-
ments, the hearing, and/or to be placed on
the building access list to attend the hear-
ing, contact Treena Garrett, (202) 622-
7180 (not a toll-free number).
Short-Term United States Treasury Bills
Issued at a Discount and Maturing August 2000-December 2000
Dollar Amount of
NoncompetitiveOID to be reported
CUSIPMaturityIssueIssue Price (% of (per $1,000 of
NumberDateDatePrincipal Amount)Maturity Value)
July 31, 20001502000–31 I.R.B.
* 52-week bill
912795EV908/03/200002/02/200097.11628.84
912795EW708/10/200002/10/200097.08329.17
*912795EE708/17/200008/19/199995.00050.00
912795EX508/24/200002/24/200097.08529.15
912795EY308/31/200003/02/200097.08529.15
912795EZ009/07/200003/09/200097.05529.45
*912795EF409/14/200009/16/199994.94450.56
912795FA409/21/200003/23/200097.20227.98
912795FB209/28/200003/30/200097.01529.85
912795FC010/05/200004/06/200097.01729.83
*912795EG210/12/200010/14/199994.82851.72
912795FD810/19/200004/20/200097.08529.15
912795FE610/26/200004/27/200097.09629.04
912795FF311/02/200005/04/200097.00030.00
*912795EH011/09/200011/12/199994.78752.13
912795FG111/16/200005/18/200096.84031.60
912795FH911/24/200005/25/200096.88631.14
912795FJ511/30/200006/01/200096.89131.09
*912795EJ612/07/200012/09/199994.59154.09
912795FK212/14/200006/15/200096.96430.36
912795FL012/21/200006/22/200097.00729.93
912795FM812/28/200006/29/200096.98930.11

2000–31 I.R.B.151July 31, 2000
SUPPLEMENTARY INFORMATION:
The subject of the public hearing is
the notice of proposed regulations
(REG–117162–99, 2000–15 I.R.B.
871) that was published in the Federal
Registeron March 23, 2000 (65 F.R.
15587).
The rules of 26 CFR 601.601(a)(3)
apply to the hearing. Persons who have
submitted written comments and wish
to present oral comments at the hearing
must submit an outline of the topics to
be discussed and the amount of time to
be devoted to each topic (signed origi-
nal and eight (8) copies) by August 3,
2000.
A period of 10 minutes is allotted to
each person for presenting oral com-
ments. After the deadline for receiving
outlines has passed, the IRS will pre-
pare an agenda containing the schedule
of speakers. Copies of the agenda will
be made available, free of charge, at the
hearing.
Because of access restrictions, the IRS
will not admit visitors beyond the imme-
diate entrance area more than 15 minutes
before the hearing starts. For information
about having your name placed on the
building access list to attend the hearing,
see the “FOR FURTHER INFORMATION
CONTACT” section of this document.
Cynthia E. Grigsby,
Chief, Regulations Unit,
Office of Special Counsel,
(Modernization and Strategic Planning).

July 31, 2000i2000–31 I.R.B.
Revenue rulings and revenue procedures
(hereinafter referred to as “rulings”) that
have an effect on previous rulings use the
following defined terms to describe the
effect:
Amplified describes a situation where
no change is being made in a prior pub-
lished position, but the prior position is
being extended to apply to a variation of
the fact situation set forth therein. Thus,
if an earlier ruling held that a principle
applied to A, and the new ruling holds
that the same principle also applies to B,
the earlier ruling is amplified. (Compare
with modified, below).
Clarified is used in those instances
where the language in a prior ruling is
being made clear because the language
has caused, or may cause, some confu-
sion. It is not used where a position in a
prior ruling is being changed.
Distinguisheddescribes a situation
where a ruling mentions a previously
published ruling and points out an essen-
tial difference between them.
Modified is used where the substance
of a previously published position is
being changed. Thus, if a prior ruling
held that a principle applied to A but not
to B, and the new ruling holds that it ap-
plies to both A and B, the prior ruling is
modified because it corrects a published
position. (Compare with amplified and
clarified, above).
Obsoleted describes a previously pub-
lished ruling that is not considered deter-
minative with respect to future transac-
tions. This term is most commonly used
in a ruling that lists previously published
rulings that are obsoleted because of
changes in law or regulations. A ruling
may also be obsoleted because the sub-
stance has been included in regulations
subsequently adopted.
Revoked describes situations where the
position in the previously published rul-
ing is not correct and the correct position
is being stated in the new ruling.
Superseded describes a situation where
the new ruling does nothing more than
restate the substance and situation of a
previously published ruling (or rulings).
Thus, the term is used to republish under
the 1986 Code and regulations the same
position published under the 1939 Code
and regulations. The term is also used
when it is desired to republish in a single
ruling a series of situations, names, etc.,
that were previously published over a pe-
riod of time in separate rulings. If the
new ruling does more than restate the
substance of a prior ruling, a combination
of terms is used. For example, modified
and superseded describes a situation
where the substance of a previously pub-
lished ruling is being changed in part and
is continued without change in part and it
is desired to restate the valid portion of
the previously published ruling in a new
ruling that is self contained. In this case
the previously published ruling is first
modified and then, as modified, is super-
seded.
Supplemented is used in situations in
which a list, such as a list of the names of
countries, is published in a ruling and
that list is expanded by adding further
names in subsequent rulings. After the
original ruling has been supplemented
several times, a new ruling may be pub-
lished that includes the list in the original
ruling and the additions, and supersedes
all prior rulings in the series.
Suspended is used in rare situations to
show that the previous published rulings
will not be applied pending some future
action such as the issuance of new or
amended regulations, the outcome of
cases in litigation, or the outcome of a
Service study.
Abbreviations
The following abbreviations in current use and for-
merly used will appear in material published in the
Bulletin.
A—Individual.
Acq.—Acquiescence.
B—Individual.
BE—Beneficiary.
BK—Bank.
B.T.A.—Board of Tax Appeals.
C—Individual.
C.B.—Cumulative Bulletin.
CFR—Code of Federal Regulations.
CI—City.
COOP—Cooperative.
Ct.D.—Court Decision.
CY—County.
D—Decedent.
DC—Dummy Corporation.
DE—Donee.
Del. Order—Delegation Order.
DISC—Domestic International Sales Corporation.
DR—Donor.
E—Estate.
EE—Employee.
E.O.—Executive Order.
ER—Employer.
ERISA—Employee Retirement Income Security Act.
EX—Executor.
F—Fiduciary.
FC—Foreign Country.
FICA—Federal Insurance Contribution Act.
FISC—Foreign International Sales Company.
FPH—Foreign Personal Holding Company.
F.R.—Federal Register.
FUTA—Federal Unemployment Tax Act.
FX—Foreign Corporation.
G.C.M.—Chief Counsel’s Memorandum.
GE—Grantee.
GP—General Partner.
GR—Grantor.
IC—Insurance Company.
I.R.B.—Internal Revenue Bulletin.
LE—Lessee.
LP—Limited Partner.
LR—Lessor.
M—Minor.
Nonacq.—Nonacquiescence.
O—Organization.
P—Parent Corporation.
PHC—Personal Holding Company.
PO—Possession of the U.S.
PR—Partner.
PRS—Partnership.
PTE—Prohibited Transaction Exemption.
Pub. L.—Public Law.
REIT—Real Estate Investment Trust.
Rev. Proc.—Revenue Procedure.
Rev. Rul.—Revenue Ruling.
S—Subsidiary.
S.P.R.—Statements of Procedural Rules.
Stat.—Statutes at Large.
T—Target Corporation.
T.C.—Tax Court.
T.D.—Treasury Decision.
TFE—Transferee.
TFR—Transferor.
T.I.R.—Technical Information Release.
TP—Taxpayer.
TR—Trust.
TT—Trustee.
U.S.C.—United States Code.
X—Corporation.
Y—Corporation.
Z—Corporation.
Definition of Terms

2000–31 I.R.B.iiJuly 31, 2000
Numerical Finding List
1
Bulletins 2000–27 through 2000–30
Announcements:
2000–57, 2000–28 I.R.B. 115
2000–58, 2000–30 I.R.B. 135
2000–59, 2000–29 I.R.B. 120
2000–61, 2000–30 I.R.B. 136
2000–62, 2000–30 I.R.B. 137
Court Decisions:
2068, 2000–28 I.R.B. 109
Notices:
2000–33, 2000–27 I.R.B. 97
2000–35, 2000–29 I.R.B. 118
2000–37, 2000–29 I.R.B. 118
2000–39, 2000–30 I.R.B. 132
2000–40, 2000–30 I.R.B. 134
Proposed Regulations:
REG–105316–98, 2000–27 I.R.B. 98
Railroad Retirement Quarterly Rate:
2000–28, I.R.B. 112
2000–29, I.R.B. 117
Revenue Procedures:
2000–28, 2000–27 I.R.B. 60
2000–29, 2000–28 I.R.B. 113
2000–30, 2000–28 I.R.B. 113
Revenue Rulings:
2000–32, 2000–27 I.R.B. 1
2000–34, 2000–29 I.R.B. 116
Treasury Decisions:
8886, 2000–27 I.R.B. 3
8888, 2000–27 I.R.B. 3
8889, 2000–30 I.R.B. 124
8890, 2000–30 I.R.B. 122
1
A cumulative list of all revenue rulings, revenue
procedures, Treasury decisions, etc., published in
Internal Revenue Bulletins 2000–1 through 2000–26
is in Internal Revenue Bulletin 2000–27, dated July
3, 2000.

July 31, 2000iii2000–31 I.R.B.
Finding List of Current Actions on
Previously Published Items
1
Bulletins 2000–27 through 2000–30
Revenue Procedures:
99–18
Modified by
Rev. Proc. 2000–29, 2000–28 I.R.B. 113
99–34
Superseded by
Rev. Proc. 2000–28, 2000–27 I.R.B. 60
Treasury Decisions:
8883
Corrected by
Announcement 2000–57, 2000–28 I.R.B. 115
1
A cumulative list of current actions on previously
published items in Internal Revenue Bulletins
2000–1 through 2000–26 is in Internal Revenue
Bulletin 2000–27, dated July 3, 2000.

INTERNAL REVENUE BULLETIN
The Introduction at the beginning of this issue 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 and are not included as part of the subscription to the Internal Revenue Bulletin. Subscribers to the week-
ly 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.gov) or write to the IRS Bulletin Unit, OP:FS:FP:P:1, Room 5617, 1111 Constitution Avenue NW, Washington,
DC 20224.
Internal Revenue Service
Washington, DC 20224
Official Business
Penalty for Private Use, $300