Internal Revenue Bulletin 1996-38 (PDF rendition): IRS Revenue Rulings

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

INCOME TAX
Rev. Rul. 96–44, page 4.
Interest rates; underpayments and overpayments.
The rate of interest determined under section 6621 of
the Code for the calendar quarter beginning October 1,
1996, will be 8 percent for overpayments, 9 percent for
underpayments, and 11 percent for large corporate
underpayments. The rate of interest paid on the portion
of a corporation overpayment exceeding $10,000 is 6.5
percent.
Rev. Proc. 96–46, page 144.
Low-Income Housing Tax Credit.This procedure pub-
lishes the amounts of unused housing credit carryovers
allocated to qualified states under section 42(h)(3)(D) of
the Code for calendar year 1996.
EXEMPT ORGANIZATIONS
Announcement 96–92, page 151.
Beginning September 1, 1996, requests for employee
plan determination letters and applications for recogni-
tion of tax exemption, formerly sent to key district
offices in Atlanta, Georgia, and Baltimore, Maryland,
should be sent to the Internal Revenue Service Center in
Covington, Kentucky.
Announcement 96–94, page 153.
A list is given of organizations now classified as private
foundations. Also, Citizen Policy Research Inc., East
Harwich, MA, is now classified as an organization that is
not a private operating foundation.
ESTATE TAX
REG–208215–91, page 145.
Proposed regulations relate to the treatment of disclaim-
ers for estate and gift tax purposes.
ADMINISTRATIVE
P.L. 104–134, page 7.
An Act making appropriations for fiscal year 1996 to
make a further downpayment toward a balanced budget,
and for the other purposes, is reproduced.
P.L. 104–168, page 8.
An Act to amend the Internal Revenue Code of 1986, to
provide for increased taxpayer protections, is repro-
duced.
Announcement 96–88, page 150.
Telephone numbers are required on 1996 recipient
statements (Forms W–2G, 1098, 1099, and 8308), but
the penalty under section 6722 of the Code may be
waived if the number is not on the 1996 form.
Announcement 96–93, page 151.
INTL–062–90; INTL–0032–93; INTL–52–86; INTL–52–
94, 1996–19 I.R.B. 26, relating to the withholding of
income tax under sections 1441 and 1442 on certain
U.S. source income paid to foreign persons, the related
tax deposit and reporting requirements under section
1461, and the related collection, refunds, and credits of
withheld tax under sections 1461 through 1463, are
corrected.
Finding Lists begin on page 159.
Announcement of Disbarments and Suspensions begins on page 155.
Bulletin No. 1996–38
September 16, 1996
HIGHLIGHTS
OF THIS ISSUE
These synopses are intended only as aids to the reader in
identifying the subject matter covered. They may not be relied
upon as authoritative interpretations.

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

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

Part I. Rulings and Decisions Under the Internal Revenue Code of 1986
Section 42.—Low-Income Housing
Credit
26 CFR 1.42–14: Allocation rules for post-1989
State housing credit ceiling amounts.
This procedure publishes the amounts of unused
housing credit carryovers allocated to qualified
states under section 42(h)(3)(D) of the Code
for calendar year 1996. See Rev. Proc. 96–46,
page 144.
Section 6621.— Determination of
Interest Rate
26 CFR 301.6621–1: Interest rate.
Interest rates; underpayments and
overpayments.The rate of interest de-
termined under section 6621 of the
Code for the calendar quarter beginning
October 1, 1996, will be 8 percent for
overpayments, 9 percent for underpay-
ments, and 11 percent for large corpo-
rate underpayments. The rate of interest
paid on the portion of a corporation
overpayment exceeding $10,000 is 6.5
percent.
Rev. Rul. 96–44
Section 6621 of the Internal Revenue
Code establishes different rates for inter-
est on tax overpayments and interest on
tax underpayments. Under § 6621(a)(1),
the overpayment rate is the sum of
the federal short-term rate plus 2 per-
centage points, except the rate for the
portion of a corporate overpayment of
tax exceeding $10,000 for a taxable
period is the sum of the federal short-
term rate plus 0.5 of a percentage point
for interest computations made after
December 31, 1994. Under
§ 6621(a)(2), the underpayment rate is
the sum of the federal short-term rate
plus 3 percentage points.
Section 6621(c) provides that for pur-
poses of interest payable under § 6601
on any large corporate underpayment,
the underpayment rate under
§ 6621(a)(2) is determined by substitut-
ing ‘‘5 percentage points’’ for ‘‘3 per-
centage points.’’ See § 6621(c) and
§ 301.6621–3 of the Regulations on
Procedure and Administration for the
definition of a large corporate underpay-
ment and for the rules for determining
the applicable rate. Section 6621(c) and
§ 301.6621–3 are generally effective for
periods after December 31, 1990.
Section 6621(b)(1) provides that the
Secretary will determine the federal
short-term rate for the first month in
each calendar quarter.
Section 6621(b)(2)(A) provides that
the federal short-term rate determined
under § 6621(b)(1) for any month ap-
plies during the first calendar quarter
beginning after such month.
Section 6621(b)(3) provides that the
federal short-term rate for any month is
the federal short-term rate determined
during such month by the Secretary in
accordance with § 1274(d), rounded to
the nearest full percent (or, if a multiple
of 1/2 of 1 percent, the rate is increased
to the next highest full percent).
Notice 88–59, 1988–1 C.B. 546, an-
nounced that in determining the quar-
terly interest rates to be used for over-
payments and underpayments of tax
under § 6621, the Internal Revenue Ser-
vice will use the federal short-term rate
based on daily compounding because
that rate is most consistent with § 6621
which, pursuant to § 6622, is subject to
daily compounding.
Rounded to the nearest full percent,
the federal short-term rate based on
daily compounding determined during
the month of July 1996 is 6 percent.
Accordingly, an overpayment rate of 8
percent and an underpayment rate of 9
percent are established for the calendar
quarter beginning October 1, 1996. The
overpayment rate for the portion of
corporate overpayments exceeding
$10,000 for the calendar quarter begin-
ning October 1, 1996, is 6.5 percent.
The underpayment rate for large corpo-
rate underpayments for the calendar
quarter beginning October 1, 1996, is 11
percent. These rates apply to amounts
bearing interest during that calendar
quarter.
Interest factors for daily compound
interest for annual rates of 6.5 percent, 8
percent, 9 percent, and 11 percent are
published in Tables 66, 69, 71, and 75
of Rev. Proc. 95–17, 1995–1 C.B. 556,
620, 623, 625, and 629.
Annual interest rates to be com-
pounded daily pursuant to § 6622 that
apply for prior periods are set forth in
the accompanying tables.
DRAFTING INFORMATION
The principal author of this revenue
ruling is Marcia Rachy of the Office of
Assistant Chief Counsel (Income Tax
and Accounting). For further information
regarding this revenue ruling, contact
Ms. Rachy on (202) 622–4940 (not a
toll-free call).
TABLE OF INTEREST RATES
PERIODS BEFORE JUL. 1, 1975–PERIODS ENDING DEC. 31, 1986
OVERPAYMENTS AND UNDERPAYMENTS
PERIODRATEDAILY RATE TABLE IN 1995–1 C.B.
Before Jul. 1, 19756%Table 2, pg. 557
Jul. 1, 1975—Jan. 31, 19769%Table 4, pg. 559
Feb. 1, 1976—Jan. 31, 19787%Table 3, pg. 558
Feb. 1, 1978—Jan. 31, 19806%Table 2, pg. 557
Feb. 1, 1980—Jan. 31, 198212%Table 5, pg. 560
Feb. 1, 1982—Dec. 31, 198220%Table 6, pg. 560
Jan. 1, 1983—Jun. 30, 198316%Table 37, pg. 591
Jul. 1, 1983—Dec. 31, 198311%Table 27, pg. 581
Jan. 1, 1984—Jun. 30, 198411%Table 75, pg. 629
Jul. 1, 1984—Dec. 31, 198411%Table 75, pg. 629
Jan. 1, 1985—Jun. 30, 198513%Table 31, pg. 585
4

TABLE OF INTEREST RATES—Continued
PERIODS BEFORE JUL. 1, 1975–PERIODS ENDING DEC. 31, 1986
OVERPAYMENTS AND UNDERPAYMENTS
PERIODRATEDAILY RATE TABLE IN 1995–1 C.B.
Jul. 1, 1985—Dec. 31, 198511%Table 27, pg. 581
Jan. 1, 1986—Jun. 30, 198610%Table 25 pg. 579
Jul. 1, 1986—Dec. 31, 19869%Table 23, pg. 577
TABLE OF INTEREST RATES
FROM JAN. 1, 1987–PRESENT
OVERPAYMENTSUNDERPAYMENTS
RATE TABLE PGRATE TABLE PG
1995–1 C.B.1995–1 C.B.
Jan. 1, 1987—Mar. 31, 19878%215759%23577
Apr. 1, 1987—Jun. 30, 19878%215759%23577
Jul. 1, 1987—Sep. 30, 19878%215759%23577
Oct. 1, 1987—Dec. 31, 19879%2357710%25579
Jan. 1, 1988—Mar. 31, 198810%7362711%75629
Apr. 1, 1988—Jun. 30, 19889%7162510%73627
Jul. 1, 1988—Sep. 30, 19889%7162510%73627
Oct. 1, 1988—Dec. 31, 198810%7362711%75629
Jan. 1, 1989—Mar. 31, 198910%2557911%27581
Apr. 1, 1989—Jun. 30, 198911%2758112%29583
Jul. 1, 1989—Sep. 30, 198911%2758112%29583
Oct. 1, 1989—Dec. 31, 198910%2557911%27581
Jan. 1, 1990—Mar. 31, 199010%2557911%27581
Apr. 1, 1990—Jun. 30, 199010%2557911%27581
Jul. 1, 1990—Sep. 30, 199010%2557911%27581
Oct. 1, 1990—Dec. 31, 199010%2557911%27581
Jan. 1, 1991—Mar. 31, 199110%2557911%27581
Apr. 1, 1991—Jun. 30, 19919%2357710%25579
Jul. 1, 1991—Sep. 30, 19919%2357710%25579
Oct. 1, 1991—Dec. 31, 19919%2357710%25579
Jan. 1, 1992—Mar. 31, 19928%696239%71625
Apr. 1, 1992—Jun. 30, 19927%676218%69623
Jul. 1, 1992—Sep. 30, 19927%676218%69623
Oct. 1, 1992—Dec. 31, 19926%656197%67621
Jan. 1, 1993—Mar. 31, 19936%175717%19573
Apr. 1, 1993—Jun. 30, 19936%175717%19573
Jul. 1, 1993—Sep. 30, 19936%175717%19573
Oct. 1, 1993—Dec. 31, 19936%175717%19573
Jan. 1, 1994—Mar. 31, 19946%175717%19573
Apr. 1, 1994—Jun. 30, 19946%175717%19573
Jul. 1, 1994—Sep. 30, 19947%195738%21575
Oct. 1, 1994—Dec. 31, 19948%215759%23577
Jan. 1, 1995—Mar. 31, 19958%215759%23577
Apr. 1, 1995—Jun. 30, 19959%2357710%25579
Jul. 1, 1995—Sep. 30, 19958%215759%23577
Oct. 1, 1995—Dec. 31, 19958%215759%23577
Jan. 1, 1996—Mar. 31, 19968%696239%71625
Apr. 1, 1996—Jun. 30, 19967%676218%69623
Jul. 1, 1996—Sep. 30, 19968%696239%71625
Oct. 1, 1996—Dec. 31, 19968%696239%71625
5

TABLE OF INTEREST RATES FOR LARGE CORPORATE UNDERPAYMENTS
FROM JANUARY 1, 1991–PRESENT
RATE TABLE PG
1995–1 C.B.
Jan. 1, 1991—Mar. 31, 199113%31585
Apr. 1, 1991—Jun. 30, 199112%29583
Jul. 1, 1991—Sep. 30, 199112%29583
Oct. 1, 1991—Dec. 31, 199112%29583
Jan. 1, 1992—Mar. 31, 199211%75629
Apr. 1, 1992—Jun. 30, 199210%73627
Jul. 1, 1992—Sep. 30, 199210%73627
Oct. 1, 1992—Dec. 31, 19929%71625
Jan. 1, 1993—Mar. 31, 19939%23577
Apr. 1, 1993—Jun. 30, 19939%23577
Jul. 1, 1993—Sep. 30, 19939%23577
Oct. 1, 1993—Dec. 31, 19939%23577
Jan. 1, 1994—Mar. 31, 19949%23577
Apr. 1, 1994—Jun. 30, 19949%23577
Jul. 1, 1994—Sep. 30, 199410%25579
Oct. 1, 1994—Dec. 31, 199411%27581
Jan. 1, 1995—Mar. 31, 199511%27581
Apr. 1, 1995—Jun. 30, 199512%29583
Jul. 1, 1995—Sep. 30, 199511%27581
Oct. 1, 1995—Dec. 31, 199511%27581
Jan. 1, 1996—Mar. 31, 199611%75629
Apr. 1, 1996—Jun. 30, 199610%73627
Jul. 1, 1996—Sep. 30, 199611%75629
Oct. 1, 1996—Dec. 31, 199611%75629
TABLE OF INTEREST RATES FOR CORPORATE OVERPAYMENTS EXCEEDING $10,000
FROM JANUARY 1, 1995-PRESENT
RATE TABLE PG
1995–1 C.B.
Jan. 1, 1995—Mar. 31, 19956.5%18572
Apr. 1, 1995—Jun. 30, 19957.5%20574
Jul. 1, 1995—Sep. 30, 19956.5%18572
Oct. 1, 1995—Dec. 31, 19956.5%18572
Jan. 1, 1996—Mar. 31, 19966.5%66620
Apr. 1, 1996—Jun. 30, 19965.5%64618
Jul. 1, 1996—Sep. 30, 19966.5%66620
Oct. 1, 1996—Dec. 31, 19966.5%66620
6

Part II. Treaties and Tax Legislation
Subpart B.—Legislation and
Related Committee Reports
Public Law 104–134
104th Congress, H.R. 3019
1
April 26, 1996
An Act making appropriations for
fiscal year 1996 to make a further
downpayment toward a balanced bud-
get, and for other purposes.
Be it enacted by the Senate and
House of Representatives of the United
States of America in Congress as-
sembled,
* * * * *
SEC. 2904. COMPOSITION OF
NATIONAL COMMISSION ON
RESTRUCTURING THE INTERNAL
REVENUE SERVICE.
(a) IN GENERAL.—Section 637(b)-
(2) of the Treasury, Postal Service, and
General Government Appropriations Act,
1996 (Public Law 104–52, 109 Stat.
509) is amended—
(1) by striking ‘‘thirteen’’ and in-
serting ‘‘seventeen’’, and
(2) in subparagraphs (B) and (D)—
(A) by striking ‘‘Two’’ and in-
serting ‘‘Four’’, and
(B) by striking ‘‘one from pri-
vate life’’ and inserting ‘‘three from
private life’’.
(b) EFFECTIVEDATE.—The
amendments made by this section shall
take effect as if included in the provi-
sions of the Treasury, Postal Service,
and General Government Appropriations
Act, 1996.
* * * * *
SEC. 31001. DEBT COLLECTION
IMPROVEMENT ACT OF 1996.
* * * * *
(g)(2) INTERNALREVENUE
CODE OF 1986.—Subparagraph (A) of
section 6103(1)(10) of the Internal Rev-
enue Code of 1986 (26 U.S.C.
6103(1)(10)) is amended by inserting
‘‘and to officers and employees of the
Department of the Treasury in connec-
tion with such reduction’’ after ‘‘6402’’.
* * * * *
(i)(2) INCLUDED FEDERAL LOAN
PROGRAM DEFINED.—Subparagraph
(C) of section 6103(1)(3) of the Internal
Revenue Code of 1986 (relating to dis-
closure that applicant for Federal loan
has tax delinquent account) is amended
to read as follows:
‘‘(C) INCLUDED FEDERAL
LOAN PROGRAM DEFINED.—For
purposes of this paragraph, the term
‘included Federal loan program’ means
any program under which the United
States or a Federal agency makes, guar-
antees, or insures loans.’’.
* * * * *
(m)(2) RETURNS RELATING TO
CANCELLATION OF INDEBTED-
NESS BY CERTAIN ENTITIES.—
(A) IN GENERAL.—Subsection
(a) of section 6050P of the Internal
Revenue Code of 1986 (relating to re-
turns relating to the cancellation of
indebtedness by certain financial enti-
ties) is amended by striking ‘‘applicable
financial entity’’ and inserting ‘‘appli-
cable entity’’.
(B) ENTITIES TO WHICH RE-
QUIREMENT APPLIES.—Subsection
(c) of section 6050P of such Code is
amended—
(i) by redesignating para-
graphs (1) and (2) as paragraphs (2) and
(3), respectively, and inserting before
paragraph (2) (as so redesignated) the
following new paragraph:
‘‘(1) APPLICABLE ENTITY.—
The term ‘applicable entity’ means—
‘‘(A) an executive, judicial, or
legislative agency (as defined in section
3701(a)(4) of title 31, United States
Code), and
‘‘(B) an applicable financial en-
tity.’’, and
(ii) in paragraph (3), as so
redesignated, by striking ‘‘(1)(B)’’ and
inserting ‘‘(1)(A) or (2)(B)’’.
(C) ALTERNATIVE PROCE-
DURE.—Section 6050P of such Code is
amended by adding at the end the
following new subsection:
‘‘(e) ALTERNATIVEPROCE-
DURE.—In lieu of making a return
required under subsection (a), an agency
described in subsection (c)(1)(A) may
submit to the Secretary (at such time
and in such form as the Secretary may
by regulations prescribe) information
sufficient for the Secretary to complete
such a return on behalf of such agency.
Upon receipt of such information, the
Secretary shall complete such return and
provide a copy of such return to such
agency.’’
(D) CONFORMING AMEND-
MENTS.—
(i) Subsection (d) of section
6050P of such Code is amended by
striking ‘‘applicable financial entity’’
and inserting ‘‘applicable entity’’.
(ii) The heading of section
6050P of such Code is amended to read
as follows:
‘‘SEC. 6050P. RETURNS RELATING
TO THE CANCELLATION OF
INDEBTEDNESS BY CERTAIN
ENTITIES.’’
(iii) The table of sections for
subpart B of part III of subchapter A of
chapter 61 of such Code is amended by
striking the item relating to section
6050P and inserting the following new
item:
‘‘Section 6050P. Returns relating
to the cancellation of indebtedness
by certain entities.’’
(n) Effective October 1, 1995, section
11 of the Administrative Dispute Reso-
lution Act (Public Law 101–552, U.S.C.
571 note) shall not apply to the amend-
ment made by section 8(b) of such Act.
* * * * *
(u)(2) FEDERAL AGENCY DE-
FINED.—Section 6402(f) of the Internal
Revenue Code of 1986 (26 U.S.C.
6402(f)) is amended to read as follows:
‘‘(f) FEDERAL AGENCY.—For pur-
poses of this section, the term ‘Federal
agency’ means a department, agency or
instrumentality of the United States, and
includes a Government corporation (as
such term is defined in section 103 of
title 5, United States Code).’’.
* * * * *
Approved April 26, 1996.
1
This publication of the law is restricted to
excerpts involving tax matters.
7

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Part III. Administrative, Procedural, and Miscellaneous
26 CFR 601.105: Examination of returns and
claims for refund, credit, or abatement; determina-
tion of correct tax liability. (Also Part I, § 42;
1.42–14.)
Rev. Proc. 96–46
SECTION 1. PURPOSE
This revenue procedure publishes the
amounts of unused housing credit car-
ryovers allocated to qualified states un-
der § 42(h)(3)(D) of the Internal Rev-
enue Code for calendar year 1996.
SECTION 2. BACKGROUND
Rev. Proc. 92–31, 1992–1 C.B. 775,
provides guidance to state housing credit
agencies of qualified states on the pro-
cedure for requesting an allocation of
unused housing credit carryovers under
§ 42(h)(3)(D). Section 4.06 of Rev.
Proc. 92–31 provides that the Internal
Revenue Service will publish in the
Internal Revenue Bulletin the amount of
unused housing credit carryovers allo-
cated to qualified states for a calendar
year from a national pool of unused
credit authority (the National Pool). This
revenue procedure publishes these
amounts for calendar year 1996.
SECTION 3. PROCEDURE
.01 The unused housing credit car-
ryover amount allocated from the Na-
tional Pool by the Secretary to each
qualified state for calendar year 1996 is
as follows:
Qualified State
Amount
Allocated
Alabama$117,431
Alaska16,867
Arizona113,423
Qualified State
Amount
Allocated
California874,843
Colorado101,760
Connecticut91,156
Florida388,365
Hawaii32,816
Idaho31,536
Illinois327,102
Indiana160,100
Iowa78,742
Kansas71,087
Kentucky106,520
Maine34,514
Maryland139,336
Massachusetts168,144
Michigan264,309
Minnesota127,117
Mississippi74,288
Missouri146,907
Nebraska45,174
Nevada40,554
New Hampshire31,647
New Jersey219,998
New Mexico46,037
New York505,712
Ohio309,011
Oregon85,895
Pennsylvania335,453
Rhode Island27,750
South Dakota20,068
Tennessee144,040
Utah53,107
Vermont16,144
Virginia182,367
Washington148,716
Wisconsin141,451
.02 When certain issues are resolved,
qualified states may be entitled to an
additional allocation from the 1996 Na-
tional Pool. If it is determined that
qualified states are entitled to an addi-
tional allocation from the 1996 National
Pool, the Service will publish the addi-
tional amount allocated to each qualified
state as quickly as feasible to enable the
state to allocate the amount before the
close of 1996. Unless the Service is
notified by a qualified state that it does
not wish an additional allocation before
these amounts are published, the Service
will assume that a qualified state wishes
to receive an additional allocation. A
qualified state should notify the Service
that it does not wish an additional
allocation from the 1996 National Pool
by writing to the address published in
Sec. 4.05 of Rev. Proc. 92–31, in which
case the refused additional allocation
can be allocated to other qualified states.
Any additional amount that a qualified
state fails to allocate before the close of
1996 will not be considered in determin-
ing whether a state qualifies for the
1997 National Pool.
SECTION 4. EFFECTIVE DATE
This revenue procedure is effective
for allocations of housing credit dollar
amounts attributable to the National
Pool component of a qualified state’s
housing credit ceiling for calendar year
1996.
DRAFTING INFORMATION
The principal author of this revenue
procedure is Christopher J. Wilson of
the Office of Assistant Chief Counsel
(Passthroughs and Special Industries).
For further information regarding this
revenue procedure, contact Mr. Wilson
on (202) 622–3040 (not a toll-free call).
144

Part IV. Items of General Interest
Notice of Proposed Rulemaking
Disclaimer of Interests and Powers
REG-208215-91
AGENCY: Internal Revenue Service
(IRS), Treasury.
ACTION: Notice of proposed rulemak-
ing.
SUMMARY: This document contains
proposed regulations relating to the
treatment of disclaimers for estate and
gift tax purposes. The regulations pro-
pose to clarify certain provisions gov-
erning the disclaimer of property inter-
ests and powers and, in addition, to
conform the regulations to court deci-
sions holding the current regulation in-
valid with respect to the disclaimer of
joint property interests. The proposed
regulations will affect persons who dis-
claim interests, powers or interests in
jointly owned property after the effec-
tive date of these regulations.
DATES: Written comments and requests
for a public hearing must be received by
November 19, 1996.
ADDRESSES: Send submissions to:
CC:DOM:CORP:R (REG-208215-91),
room 5226, Internal Revenue Service,
POB 7604, Ben Franklin Station, Wash-
ington, DC 20044. Submissions may be
hand delivered between the hours of 8
a.m. and 5 p.m. to: CC:DOM:CORP:R
(REG-208215-91), Courier’s Desk Inter-
nal Revenue Service, 1111 Constitution
Avenue NW, Washington, DC. Alter-
nately, taxpayers may submit comments
electronically via the Internet by select-
ing the ‘‘Tax Regs’’ option of the IRS
Home Page, or by submitting comments
directly to the IRS Internet site at
http:\\www.irs.ustreas.gov\prod\tax_regs\
comments.html.
FOR FURTHER INFORMATION
CONTACT: Concerning the proposed
regulations, Dale Carlton, (202) 622-
3090; concerning submissions, Michael
Slaughter, (202) 622-7190 (not toll-free
numbers).
SUPPLEMENTARY INFORMATION:
Background
This document proposes to amend the
Estate and Gift Tax Regulations (26
CFR parts 20 and 25) under sections
2041, 2046, 2056, 2511, 2514, and
2518, relating to the disclaimer of inter-
ests in property and powers over prop-
erty.
1.Interests and powers subject to the
disclaimer rules
Under section 2518(a), if a person
makes a qualified disclaimer, then for
transfer tax purposes, the interest dis-
claimed is treated as never having
passed to the person disclaiming. Under
section 2518(b)(2)(A), in order to have a
qualified disclaimer, an interest must be
disclaimed within 9 months of the date
of ‘‘the transfer creating the interest’’ in
the person disclaiming. A person to
whom any interest passes by reason of
the exercise or lapse of a general power
of appointment must disclaim the inter-
est passing within 9 months after the
exercise or lapse.
The current regulations provide that
section 2518 applies to the disclaimer of
interests or powers created pursuant to
‘‘taxable transfers’’ made after Decem-
ber 31, 1976. They further provide that
the 9-month period within which the
disclaimer must be made is to be deter-
mined with reference to the ‘‘taxable
transfer’’ creating the interest in the
disclaimant. The term ‘‘taxable transfer’’
was incorporated into the regulation
based on a statement in the legislative
history underlying the enactment of sec-
tion 2518. H.R. Conf. Rep. No. 1515,
94th Cong., 2d Sess. 623 (1976).
Because the reference point under the
regulation is the ‘‘taxable transfer’’ cre-
ating the interest, the existing regulation
could be viewed as implying that the
disclaimer of an interest created in a
transfer that is outside the scope of the
estate or gift tax need not comply with
the requirements of section 2518. For
example, if the disclaimed property con-
stitutes an interest in foreign situs prop-
erty created pursuant to a transfer by a
nonresident alien donor or decedent, the
transfer by the nonresident alien would
not be within the scope of the gift tax or
estate tax. However, a disclaimer of
such an interest would have to comply
with section 2518; otherwise, there
could be transfer tax consequences to
the disclaimant.
Similarly, the regulations do not spe-
cifically address the disclaimer of a
property interest passing as a result of
the lapse or release of a general power
of appointment created on or before
October 21, 1942. Under sections
2041(a)(1) and 2514(a), the lapse or
release of a pre-1942 power is not
subject to transfer tax.
The scope of the term ‘‘taxable trans-
fer’’, as used in § 25.2511-1(c)(2), a
related provision governing the dis-
claimer of interests created in taxable
transfers made prior to January 1, 1977,
was considered in the Eighth Circuit
decision inUnited States v. Irvine, 981
F.2d 991 (8th Cir. 1992),rev’d, 114 S.Ct
1473 (1994), and inOrdway v. United
States, 908 F.2d 890 (11th Cir. 1991). In
these cases, the disclaimant argued that
a disclaimer that did not satisfy the
requirements of § 25.2511- 1(c)(2) was
nonetheless effective for estate and gift
tax purposes because the trust interest
that was disclaimed was created pursu-
ant to a transfer in trust made prior to
the enactment of the federal gift tax.
Accordingly, the disclaimant argued that
the interest was not created in a ‘‘tax-
able transfer’’ prior to January 1, 1977,
the regulation did not apply and the
disclaimer had only to be effective un-
der state law to avoid federal tax. The
Service argued in both cases that the
term ‘‘taxable transfer’’ references a
generic completed gift under § 25.2511-
2 of the regulations. The Eleventh Cir-
cuit agreed with the Service inOrdway,
while the Eighth Circuit disagreed in
Irvine. The Supreme Court did not re-
solve this issue in its review ofIrvine.
The Court concluded that even if
§ 25.2511-2 did not apply, the dis-
claimer caused the transfer of an interest
that had not been timely disclaimed, and
the transfer was subject to gift tax. In
view of the conflicting Eighth and Elev-
enth Circuit decisions inIrvineand
Ordway, the Treasury and the IRS be-
lieve that it is appropriate to clarify the
regulations.
2.Disclaimer of Jointly-owned Property
The current regulations provide, in
general, that in order to be a qualified
disclaimer under section 2518, a surviv-
ing joint tenant’s disclaimer ofbothan
interest passing to the joint tenant on the
creation of the tenancy, and the
survivorship interest in the joint tenancy
or tenancy by the entirety, must be made
within 9 months after the transfer creat-
ing the tenancy. Further, a joint tenant
cannot make a qualified disclaimer of
any portion of a joint interest attribut-
able to consideration furnished by that
tenant.
1451996–38 I.R.B.

Section 25.2518-2(c)(4)(ii) provides a
special rule with respect to joint tenan-
cies and tenancies by the entirety in real
property created after 1976 but prior to
1982. During that period, section 2515
applied in determining the gift tax con-
sequences of the creation of a joint
tenancy with right of survivorship or
tenancy by the entirety in real property
between husband and wife. Under sec-
tion 2515, the creation of the tenancy
was not treated as a gift subject to gift
tax unless the parties elected to treat the
creation of the tenancy as a gift. Rather,
a transfer subject to gift tax occurs on
the termination of the tenancy (other
than by reason of the death of one of
the tenants) if the proceeds of termina-
tion are not divided according to the
consideration furnished by each party to
the tenancy. Under § 25.2518-2(c)(4)-
(ii), in general, an interest in a tenancy
created between 1976 and 1982 can be
disclaimed within 9 months of the date
of death of the first joint tenant to die,
provided no election was made under
section 2515 to treat the creation of the
tenancy as a gift. The disclaimant can
disclaim up to the portion of the tenancy
included in the decedent’s gross estate
under section 2040.
Section 2515 was enacted in the In-
ternal Revenue Code of 1954, effective
for tenancies created after December 31,
1954, and was repealed with respect to
tenancies created after December 31,
1981, by the Economic Recovery Tax
Act of 1981. The Technical and Miscel-
laneous Revenue Act of 1988 added
section 2523(i)(3) which provides that,
where the spouse of a donor is not a
citizen of the United States, the prin-
ciples of section 2515, as such section
was in effect before its repeal, shall
apply (except for the provisions provid-
ing for an election), in determining the
gift tax consequences of the creation of
a joint tenancy or tenancy by the en-
tirety in real property between husband
and wife.
Although section 2515 was effective
for tenancies created after 1954 and
before 1982, and, in addition, the prin-
ciples of section 2515 are currently
effective for tenancies created on or
after July 14, 1988, where the donee
spouse is not a citizen, the special rule
in the current regulation applies only to
tenancies subject to section 2515 created
after 1976 and before 1982.
The validity of the current regulations
with respect to joint interests that are
unilaterally severable has been the sub-
ject of repeated litigation. InKennedy v.
Commissioner, 804 F.2d 1332 (7th Cir.
1986), the court held that the surviving
spouse’s survivorship interest in the de-
cedent’s one-half interest in jointly held
real property was created on the dece-
dent’s death since, prior to that time, the
decedent could have unilaterally severed
the interest and defeated the spouse’s
survivorship right in that interest. Ac-
cordingly, the court held that the
survivorship interest could be disclaimed
within 9 months of the decedent’s death.
The court concluded that the current
regulations are invalid to the extent that
they require a survivorship interest in a
severable joint tenancy to be disclaimed
within 9 months of the creation of the
tenancy. InEstate of Dancy v. Commis-
sioner, 872 F.2d 84 (4th Cir. 1989)
(involving personal property), and
McDonald v. Commissioner, 853 F.2d
1494 (8th Cir. 1988) (involving real
property), the courts also held the regu-
lations invalid.
InMcDonald, the Eighth Circuit re-
manded the case to the Tax Court to
determine if the disclaimer was other-
wise qualified under section 2518. On
remand, the Service argued that since
the joint property was attributable en-
tirely to consideration furnished by the
disclaiming spouse, the spouse could not
disclaim any interest in the property
under section 2518. The Tax Court
rejected this argument inMcDonald v.
Commissioner, T.C.M. 1989-140.
The Service announced in A.O.D.
CC-1990-06 (Feb. 7, 1990) that it will
follow these decisions.
3.Disclaimer of Joint Bank Accounts
For gift tax purposes, the creation of
a joint bank account is treated as an
incomplete transfer since, generally, the
contributing joint tenant may unilaterally
withdraw contributed funds without the
consent of the other joint tenant. Ac-
cordingly, unless a noncontributing joint
tenant has withdrawn the funds, the
transfer to a joint bank account does not
become complete before the death of the
first joint tenant.
Explanation of Provisions
1.Interests and powers subject to the
disclaimer rules
The proposed amendment clarifies
that the application of section 2518, or
the commencement of the 9-month pe-
riod, is not dependent on the actual
imposition of a transfer tax when the
interest to be disclaimed is created. The
proposed amendment substitutes the
statutory language of section 2518(b)-
(2)(A), ‘‘transfer creating the interest,’’
for ‘‘taxable transfer’’ as the reference
point for determining the scope of the
regulations as well as when the time
period for making the disclaimer com-
mences. Under the proposed amend-
ment, the term ‘‘transfer creating the
interest’’ includes any inter vivos trans-
fer that would be a completed gift under
the gift tax regulations, whether or not a
gift tax liability arises on the transfer
and whether or not the transfer comes
within the scope of the gift tax. Simi-
larly, the amendment clarifies that, for
testamentary transfers, the transfer creat-
ing the interest occurs on the date of the
decedent’s death, whether or not an
estate tax is imposed on the transfer and
whether or not the transfer comes within
the scope of the estate tax. The amend-
ment also clarifies that, in the case of a
disclaimer of an interest passing pursu-
ant to the exercise, lapse, or release of a
general power of appointment, the dis-
claimer must be made within 9 months
of the exercise, lapse, or release of the
power, regardless of whether the exer-
cise, lapse, or release is subject to estate
or gift tax. The proposed regulations
make conforming changes to the estate
and gift tax regulations.
2.Disclaimer of Jointly-owned Property
The proposed amendments would re-
vise the regulations to provide that, in
general, if a joint tenancy may be
unilaterally severed by either party, then
a surviving joint tenant may disclaim
the one-half survivorship interest in
property held in joint tenancy with right
of survivorship within 9 months of the
death of the first joint tenant to die,
even if the surviving joint tenant pro-
vided some or all of the consideration
for the creation of the tenancy.
The rationale of the courts inDancy,
Kennedy, andMcDonalddoes not apply
to joint interests that cannot be unilater-
ally severed under applicable state law,
such as interests held in tenancy by the
entirety. In tenancies by the entirety, the
donee spouse’s joint interest in the prop-
erty that cannot be unilaterally severed
is created on the date the tenancy is
created. Therefore, the proposed amend-
ment to the regulations would reaffirm
that any interest in a nonseverable
cotenancy, including the survivorship in-
terest, must be disclaimed within 9
months of the date of the creation of the
1461996–38 I.R.B.

tenancy. However, the Service requests
comments on whether or under what
circumstances (e.g., tenancy by the en-
tirety ownership of a personal residence)
the rule applicable to unilaterally sever-
able interests should apply to interests
that are not unilaterally severable.
The proposed amendments would ex-
tend the special rule in § 25.2518-
2(c)(4)(ii) to tenancies created after De-
cember 31, 1954, and on or before
December 31, 1981, the entire period
during which section 2515 was in effect.
In addition, the special rule would be
expanded to include tenancies created
on or after July 14, 1988, where the
spouse of the donor is not a United
States citizen. Under section 2523(i)(3),
the creation of such tenancies is also
subject to the rules of former section
2515. The special rule reflects the gift
tax treatment of the creation of a joint
tenancy or tenancy by the entirety that
was subject to section 2515. The relief
afforded by the special rule will apply
to all tenancies that were subject on
creation to section 2515. Under the
special rule, the amount that the surviv-
ing joint tenant can disclaim is depen-
dent on the amount that is includible in
the decedent’s gross estate.
3.Disclaimer of Joint Bank Accounts
The proposed regulations provide spe-
cific rules to address the disclaimer of
joint bank accounts. Because the transfer
creating the interest in the funds remain-
ing in the bank account at the death of
the first joint tenant to die occurs at that
tenant’s death, the 9-month period for
making the qualified disclaimer com-
mences on the death of the first joint
tenant.
The proposed regulations also clarify
that a surviving joint tenant cannot
disclaim any portion of the account
attributable to that survivor’s contribu-
tion to the account. These contributed
funds are property owned by the survi-
vor during the cotenancy and the survi-
vor cannot disclaim property the survi-
vor has always owned and never
transferred. Further, the proposed regula-
tions clarify that this rule applies even if
only one-half of the property is included
in the decedent’s gross estate under
section 2040(b) because the joint tenants
are married.
The proposed regulations also clarify
the estate tax treatment of a disclaimed
interest in a joint bank account. State
law generally treats a disclaimant as
predeceasing the decedent with respect
to the disclaimed interest. The dis-
claimed interest in a joint bank account
(the creation of which is treated as an
incomplete gift under the gift tax regula-
tions), would lose its character as joint
property and pass through the decedent’s
probate estate. Accordingly, under such
circumstances, the interest disclaimed is
subject to inclusion in the decedent’s
gross estate under section 2033, rather
than section 2040(a) (providing for in-
clusion based on the contribution of
each tenant) or section 2040(b) (provid-
ing for inclusion of one-half the prop-
erty in the case of certain joint tenancies
between spouses). The balance of the
account not subject to the disclaimer
retains its character as joint property and
is includible in the decedent’s gross
estate under either section 2040(a) or
section 2040(b).
These rules are also made applicable
to joint brokerage accounts, since the
transfer tax treatment of these accounts
generally parallels the treatment of joint
bank accounts. See Rev. Rul. 69-148,
1969-1 C.B. 226.
Proposed Effective dates
The amendments to § § 25.2518-1(a)
and 25.2518-2(c)(3) (substituting the
statutory language in section 2518(b)-
(2)(A) ‘‘transfer creating the interest,’’
for ‘‘taxable transfer’’) and conform-
ing changes to § § 20.2041-3(d)(6)(i),
20.2046-1, 20.2056(d)-2(a) and (b),
25.2511-1(c)(1), 25.2514-3(c)(5), are
proposed to be effective for transfers
creating the interest or power to be
disclaimed made after the date of publi-
cation as final regulations in the Federal
Register. However, Treasury and the IRS
do not view these amendments as pre-
scribing any new rules for applying
section 2518.
The amendments to § 25.2518-2(c)(4)
(relating to the disclaimer of joint prop-
erty and bank accounts) are proposed to
be effective for disclaimers made after
the date these regulations are published
in the Federal Register as final regula-
tions.
Special Analyses
It has been determined that this notice
of proposed rulemaking is not a signifi-
cant regulatory action as defined in E.O.
12866. Therefore, a regulatory assess-
ment is not required. It has also been
determined that section 553(b) of the
Administrative Procedures Act (5 U.S.C.
chapter 5) does not apply to these
regulations and because the regulations
do not impose a collection of informa-
tion 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, this notice
of proposed rulemaking will be submit-
ted to the Chief Counsel for Advocacy
of the Small Business Administration for
comment on its impact on small busi-
ness.
Comments and Requests for a Public
Hearing
Before these proposed regulations are
adopted as final regulations, consider-
ation will be given to any written com-
ments (a signed original and eight (8)
copies) that are submitted timely to the
IRS. All comments will be available for
public inspection and copying. A public
hearing may be scheduled if requested
in writing by any person that timely
submits written comments. If a public
hearing is scheduled, notice of the date,
time, and place of the hearing will be
published in the Federal Register.
Drafting Information
The principal author of these regula-
tions is Dale Carlton, Office of the
Assistant Chief Counsel (Passthroughs
and Special Industries). However, per-
sonnel from other offices of the IRS and
Treasury Department participated in
their development.
Proposed Amendments to the Regula-
tions
Accordingly, 26 CFR parts 20 and 25
are proposed to be amended as follows:
PART 20—ESTATE TAX; ESTATES
OF DECEDENTS DYING AFTER
AUGUST 16, 1954
Paragraph 1. The authority citation
for part 20 continues to read in part:
Authority: 26 U.S.C. 7805 * * *
Par. 2. Section 20.2041-3 is amended
as follows:
1. Paragraph (d)(6)(i) is amended by
revising the first sentence and by adding
a new second sentence.
2. Paragraph (d)(6)(iii) is added.
The additions and revisions read as
follows:
§ 20.2041-3 Powers of appointment
created after October 21, 1942.
* * * * *
(d) * * *
(6)(i) A disclaimer or renunciation of
a general power of appointment created
1471996–38 I.R.B.

in a transfer made after December 31,
1976, is not considered to be the release
of the power if the disclaimer or renun-
ciation is a qualified disclaimer as de-
scribed in section 2518 and the corre-
sponding regulations. For rules relating
to when the transfer creating the power
occurs, see § 25.2518-2(c)(3). * * *
* * * * *
(iii) The first and second sentences of
paragraph (d)(6)(i) of this section are
effective for transfers creating the power
to be disclaimed made after the date of
publication as final regulations in the
Federal Register.
* * * * *
Par. 3. Section 20.2046-1 is revised
to read as follows:
§ 20.2046-1 Disclaimed property.
(a) This section shall apply to the
disclaimer or renunciation of an interest
in the person disclaiming by a transfer
made after December 31, 1976. For
rules relating to when the transfer creat-
ing the interest occurs, see § 25.2518-
2(c)(3) and (c)(4) of chapter 12. If a
qualified disclaimer is made with re-
spect to such a transfer, the Federal
estate tax provisions are to apply with
respect to the property interest dis-
claimed as if the interest had never been
transferred to the person making the
disclaimer. See section 2518 and the
corresponding regulations for rules relat-
ing to a qualified disclaimer.
(b) The first and second sentences of
this section are effective for transfers
creating the interest to be disclaimed
made after the date of publication as
final regulations in the Federal Register.
Par. 4. Section 20.2056(d)-2 is
amended as follows:
1. Paragraph (a) is amended by revis-
ing the first sentence and adding a new
sentence after the first sentence, and
paragraph (b) is revised.
2. A new paragraph (c) is added.
The additions and revisions read as
follows:
§ 20.2056(d)-2 Marital deduction; ef-
fect of disclaimers of post-December 31,
1976 transfers.
(a) * * * If a surviving spouse dis-
claims an interest in property passing to
such spouse from the decedent created
in a transfer made after December 31,
1976, the effectiveness of the disclaimer
will be determined by section 2518 and
the corresponding regulations. For rules
relating to when the transfer creating the
interest occurs, see § 25.2518-2(c)(3)
and (c)(4) of chapter 12. * * *
(b)Disclaimer by a person other
than a surviving spouse.If an interest in
property passes to a person other than
the surviving spouse from a decedent,
and the interest is created in a transfer
made after December 31, 1976, and —
(1) The person other than the surviv-
ing spouse makes a qualified disclaimer
with respect to such interest, and
(2) The surviving spouse is entitled
to such interest in property as a result of
such disclaimer, the disclaimed interest
is treated as passing directly from the
decedent to the surviving spouse. For
rules relating to when the transfer creat-
ing the interest occurs, see § 25.2518-
2(c)(3) and (c)(4) of chapter 12.
(c)Effective date.The first and sec-
ond sentences of paragraphs (a) and (b)
of this section are effective for transfers
creating the interest to be disclaimed
made after the date of publication as
final regulations in the Federal Register.
PART 25—GIFT TAX; GIFTS MADE
AFTER DECEMBER 31, 1954
Par. 5. The authority citation for part
25 is amended by adding an entry in
numerical order to read as follows:
Authority: 26 U.S.C. 7805 * * *
Section 25.2518-2 is also issued under
26 U.S.C. 2518(b). * * *
Par. 6. Section 25.2511-1 is amended
as follows:
1. In paragraph (c)(1), the fourth sen-
tence is revised.
2. A new paragraph (c)(3) is added.
The additions and revisions read as
follows:
§ 25.2511-1 Transfers in general.
* * * * *
(c)(1) * * * However, in the case of a
transfer creating an interest in property
(within the meaning of § 25.2518-
2(c)(3) and (c)(4)) made after December
31, 1976, this paragraph (c)(1) shall not
apply to the donee if, as a result of a
qualified disclaimer by the donee the
interest passes to a different donee. * * *
* * * * *
(3) The fourth sentence of paragraph
(c)(1) of this section is effective for
transfers creating an interest to be dis-
claimed made after the date of publica-
tion as final regulations in the Federal
Register.
* * * * *
Par. 7. Section 25.2514-3 is amended
as follows:
1. Paragraph (c)(5) is amended by
revising the first sentence and adding a
new second sentence.
2. A new paragraph (c)(7) is added.
The additions and revisions read as
follows:
§ 25.2514-3 Powers of appointment
created after October 21, 1942.
* * * * *
(c) * * *
(5) * * * A disclaimer or renunciation
of a general power of appointment cre-
ated in a transfer made after December
31, 1976, is not considered a release of
the power for gift tax purposes if the
disclaimer or renunciation is a qualified
disclaimer as described in section 2518
and the corresponding regulations. For
rules relating to when a transfer creating
the power occurs, see § 25.2518-
2(c)(3). * * *
* * * * *
(7) The first and second sentences of
paragraph (5) of § 25.2514-3(c) are ef-
fective for transfers creating the power
to be disclaimed made after the date of
publication as final regulations in the
Federal Register.
* * * * *
Par. 8. Section 25.2518-1 is amended
as follows:
1. Paragraph (a)(1) is revised.
2. In paragraph (a)(2), the third,
fourth, and fifth sentences of theEx-
ampleare revised and a new sentence is
added after the third sentence.
3. A new paragraph (a)(3) is added.
The additions and revisions read as
follows:
§ 25.2518-1 Qualified disclaimers of
property; In general.
(a) * * * (1)In general.The rules
described in § § 25.2518-1 through
25.2518-3 apply to the qualified dis-
claimer of an interest in property which
is created in the person disclaiming by a
transfer made after December 31, 1976.
In general, a qualified disclaimer is an
irrevocable and unqualified refusal to
accept the ownership of an interest in
property. For rules relating to the deter-
mination of when a transfer creating an
interest occurs, see § 25.2518-2(c)(3)
and (4).
(2) * * * The transfer creating the
remainder interest in the trust occurred
in 1968. See § 25.2511-1(c)(2). There-
fore, section 2518 does not apply to the
disclaimer of the remainder interest be-
cause the transfer creating the interest
was made prior to January 1, 1977. If,
1481996–38 I.R.B.

however, W had caused the gift to be
incomplete by also retaining the power
to designate the person or persons to
receive the trust principal at death, and,
as a result, no transfer (within the
meaning of § 25.2511-1(c)(2)) of the
remainder interest was made at the time
of the creation of the trust, section 2518
would apply to any disclaimer made
after W’s death with respect to an
interest in the trust property.
(3) Section 25.2518-1(a)(1) is effec-
tive for transfers creating the interest to
be disclaimed made after the date of
publication as final regulations in the
Federal Register.
* * * * *
Par. 9. Section 25.2518-2 is amended
as follows:
1. Paragraph (c)(3) is redesignated as
paragraph (c)(3)(i).
2. Newly designated paragraph
(c)(3)(i) is amended as follows:
a. In the first, eighth, and eleventh
sentences, the word ‘‘taxable’’ is re-
moved in each place it appears.
b. In the third and ninth sentences,
the language ‘‘taxable transfer’’ is re-
moved and ‘‘transfer creating an inter-
est’’ is added in each place it appears.
c. The fourth, fifth, sixth, and seventh
sentences are revised.
d. A new sentence is added after the
fourth sentence.
3. A new paragraph (c)(3)(ii) is
added.
4. Paragraph (c)(4) is revised.
5. In paragraph (c)(5),Example (7)is
revised.
6. In paragraph (c)(5),Example (9)is
redesignated asExample (13)and newly
designatedExample (13)is revised.
7. In paragraph (c)(5),Example (8)is
redesignated asExample (9)and newly
designatedExample (9)is revised.
8. In paragraph (c)(5),Example (10)
is redesignated asExample (12)and the
first sentence of newly designatedEx-
ample (12)is revised.
9. In paragraph (c)(5), newExamples
(8),(10),(11),(14), and(15), are added.
The additions and revisions read as
follows:
§ 25.2518-2 Requirements for a quali-
fied disclaimer.
* * * * *
(c) * * *
(3)(i) * * * With respect to transfers
made by a decedent at death or transfers
that become irrevocable at death, the
transfer creating the interest occurs on
the date of the decedent’s death, even if
an estate tax is not imposed on the
transfer. For example, a bequest of
foreign-situs property by a nonresident
alien decedent is regarded as a transfer
creating an interest in property even if
the transfer would not be subject to
estate tax. If there is a transfer creating
an interest in property during the
transferor’s lifetime and such interest is
later included in the transferor’s gross
estate for estate tax purposes (or would
have been included if such interest were
subject to estate tax), the 9-month pe-
riod for making the qualified disclaimer
is determined with reference to the
earlier transfer creating the interest. In
the case of a general power of appoint-
ment, the holder of the power has a
9-month period after the transfer creat-
ing the power in which to disclaim. If a
person to whom any interest in property
passes by reason of the exercise, release,
or lapse of a general power desires to
make a qualified disclaimer, the dis-
claimer must be made within a 9-month
period after the exercise, release, or
lapse regardless of whether the exercise,
release, or lapse is subject to estate or
gift tax. * * *
(ii) Sentences 1, 3 through 10, and 12
of paragraph (c)(3)(i) of this section are
effective for transfers creating the inter-
est to be disclaimed made after the date
of publication as final regulations in the
Federal Register.
(4)Joint property — (i) Interests that
are unilaterally severable.Except as
provided in paragraph (c)(4)(iv) of this
section with respect to joint bank ac-
counts and joint brokerage accounts, in
the case of an interest in a joint tenancy
with right of survivorship or a tenancy
by the entirety that either joint tenant
can sever unilaterally under local law, a
qualified disclaimer of the interest to
which the disclaimant succeeds as donee
upon creation of the tenancy must be
made no later than 9 months after the
creation of the tenancy. A qualified
disclaimer of the survivorship interest to
which the survivor succeeds by opera-
tion of law upon the death of the first
joint tenant to die must be made no later
than 9 months after the death of the first
joint tenant to die. See, however, section
2518(b)(2)(B) for a special rule in the
case of disclaimers by persons under
age 21. Except as provided in paragraph
(c)(4)(iii) of this section (with respect to
certain tenancies in real property created
after 1954 and before 1982 and certain
tenancies created on or after July 14,
1988), the interest that may be dis-
claimed within 9 months after the death
of the first joint tenant to die is the
interest to which the disclaimant suc-
ceeds by right of survivorship, regard-
less of the portion of the property
attributable to consideration furnished
by the disclaimant and regardless of the
portion of the property that is included
in the decedent’s gross estate under
section 2040. See § 25.2518-2(c)(5),
Example (7).
(ii)Interests that are not unilaterally
severable.Except as provided in para-
graph (c)(4)(iii) of this section with
respect to interests created after 1954
and before 1982 and certain interests
created after July 14, 1988, if an interest
in joint property with right of survivor-
ship or an interest held as a tenant by
the entirety is not unilaterally severable
under local law, a qualified disclaimer
of the interest or any portion of the
interest must be made no later than 9
months after the transaction creating the
tenancy. A tenant by the entirety or
other cotenant who cannot unilaterally
sever the interest under applicable local
law cannot make a qualified disclaimer
of any portion of the joint interest to the
extent attributable to consideration fur-
nished by that tenant even if the dis-
claimer is made within 9 months of the
creation of the tenancy. See § 25.2518-
2(c)(5),Example (8).
(iii)Tenancies in real property be-
tween spouses created before 1982 and
certain tenancies in real property be-
tween spouses created on or after July
14, 1988.In the case of a joint tenancy
between spouses or a tenancy by the
entirety in real property created after
1954 and before 1982 where no election
was made under section 2515, or a joint
tenancy between spouses or a tenancy
by the entirety in real property created
on or after July 14, 1988, to which
section 2523(i)(3) applies (relating to
the creation of a tenancy where the
spouse of the donor is not a United
States citizen), the surviving spouse
must make a qualified disclaimer no
later than 9 months after the death of
the first spouse to die. The surviving
spouse may disclaim any portion of the
joint interest that is includible in the
decedent’s gross estate under section
2040. See § 25.2518-2(c)(5),Examples
(9)and(10).
(iv)Special rule for joint bank and
brokerage accounts established between
spouses or between persons other than
husband and wife.In the case of a
transfer to a joint bank account or a
joint brokerage account, if a transferor
may unilaterally withdraw the trans-
feror’s own contributions from the ac-
1491996–38 I.R.B.

count without the consent of the other
cotenant, the transfer creating the survi-
vor’s interest in a decedent’s share of
the account occurs on the death of the
deceased cotenant. Accordingly, if a sur-
viving joint tenant desires to make a
qualified disclaimer with respect to
funds contributed by a deceased
cotenant, the disclaimer must be made
within 9 months of the cotenant’s death.
The surviving joint tenant may not dis-
claim any portion of the joint account
attributable to consideration furnished
by that surviving joint tenant. See
§ 25.2518-2(c)(5),Examples13, 14 and
15, regarding the treatment of dis-
claimed interests under sections 2518,
2033 and 2040.
(v)Effective date.This paragraph
(c)(4) is effective for disclaimers made
after the date of publication as final
regulations in the Federal Register.
(5)Examples. * * *
* * * * *
Example (7).On February 1, 1990, A purchased
real property with A’s funds. Title to the property
was conveyed to ‘‘A and B, as joint tenants with
right of survivorship.’’ Under applicable state law,
the joint interest is unilaterally severable by either
tenant. B dies on May 1, 1997, and is survived by
A. On January 1, 1998, A disclaims the one-half
survivorship interest in the property to which A
succeeds as a result of B’s death. Assuming that
the other requirements of section 2518(b) are
satisfied, A has made a qualified disclaimer of the
one-half survivorship interest (but not the interest
retained by A upon the creation of the tenancy,
which may not be disclaimed by A). The result is
the same whether or not A and B are married and
regardless of the proportion of consideration fur-
nished by A and B in purchasing the property.
Example (8).On March 1, 1997, A purchases a
parcel of real property that is conveyed to A and
A’s spouse, B, as tenants by the entirety. A
provides the consideration for the purchase. Under
applicable state law, the tenancy cannot be unilat-
erally severed by either tenant. In order to be a
qualified disclaimer, any disclaimer by B of B’s
interest in the property must be made within 9
months of the creation of the tenancy (i.e., within
9 months of March 1, 1997). Since A provided the
entire consideration for the property and the
tenancy is not unilaterally severable, A may not
disclaim any interest in the tenancy.
Example (9).On March 1, 1977, H and W
purchase a tract of vacant land which is conveyed
to them as tenants by the entirety. The entire
consideration is paid by H. H does not elect, under
section 2515, to have the transaction treated as a
transfer for purposes of Chapter 12. H dies on
June 1, 1997. W can disclaim one-half of the joint
interest because this is the interest includible in
H’s gross estate under section 2040(b). Assuming
that W’s disclaimer is received by the executor of
H’s estate no later than 9 months after June 1,
1997, and the other requirements of section
2518(b) are satisfied, W’s disclaimer of one-half
of the property would be a qualified disclaimer
because the transfer which created W’s interest is
treated as not occurring until H’s death, since no
election was made under section 2515. The result
would be the same if the property was held in
joint tenancy with right of survivorship that was
unilaterally severable under local law.
Example (10).Assume the same facts as in
example (9) except that the land was purchased on
March 1, 1989, and W is not a United States
citizen. W has until 9 months after June 1, 1997,
to make a qualified disclaimer, and can disclaim
the entire joint interest because this is the interest
includible in H’s gross estate under section
2040(a). The result would be the same if the
property was held in joint tenancy with right of
survivorship that was unilaterally severable under
local law.
Example (11).In 1986, spouses A and B
purchased a personal residence taking title as joint
tenants with right of survivorship. Under appli-
cable state law, the interest in the tenancy may be
unilaterally severed by either party. B dies on July
10, 1997. A wishes to disclaim the one-half
undivided interest to which A would succeed by
right of survivorship. If A makes the disclaimer,
the property interest would pass under B’s will to
their child C. C, an adult, and A resided in the
residence at B’s death and will continue to reside
there in the future. A continues to own a one-half
undivided interest in the property. Assuming that
the other requirements of section 2518(b) are
satisfied, A may make a qualified disclaimer with
respect to the one-half undivided survivorship
interest in the residence if A delivers the written
disclaimer to the personal representative of B’s
estate by April 10, 1998, since A is not deemed to
have accepted the interest or any of its benefits
prior to that time and A’s occupancy of the
residence after B’s death is consistent with A’s
retained undivided ownership interest.
Example (12).H and W, husband and wife,
reside in state X, a community property
state. * * *
Example (13).On July 1, 1990, A opens a bank
account that is held jointly with B, A’s spouse, and
transfers $50,000 of A’s money to the account. A
and B are United States citizens. A can regain the
entire account without B’s consent. The transfer is
not a completed gift under § 25.2511-1(h)(4). A
dies on August 15, 1997, and B disclaims the
entire amount in the bank account on October 15,
1997. Assuming that the remaining requirements
of section 2518(b) are satisfied, B made a quali-
fied disclaimer under section 2518(a) because the
disclaimer was made within 9 months after A’s
death at which time B had succeeded to full
dominion and control over the account. Under
state law, B is treated as predeceasing A with
respect to the disclaimed interest. The disclaimed
account balance passes through A’s probate estate
and is no longer joint property includible in A’s
gross estate under section 2040. The entire account
is, instead, includible in A’s gross estate under
section 2033. The result would be the same if A
and B were not married.
Example (14).The facts are the same as
Example (13), except that B, rather than A, dies
on August 15, 1997. A may not make a qualified
disclaimer with respect to any of the funds in the
bank account, because A furnished the funds for
the entire account and A did not relinquish
dominion and control over the funds.
Example (15).The facts are the same as
Example (13), except that B disclaims 40 percent
of the funds in the account. Since, under state law,
B is treated as predeceasing A with respect to the
disclaimed interest, the 40 percent portion of the
account balance that was disclaimed passes as part
of A’s probate estate, and is no longer character-
ized as joint property. This 40 percent portion of
the account balance is, therefore, includible in A’s
gross estate under section 2033. The remaining 60
percent of the account balance that was not
disclaimed retains its character as joint property
and, therefore, is includible in A’s gross estate as
provided in section 2040(b). Therefore, 30 percent
(1/2 x 60 percent) of the account balance is
includible in A’s gross estate under section
2040(b), and a total of 70 percent of the aggregate
account balance is includible in A’s gross estate. If
A and B were not married, then the 40 percent
portion of the account subject to the disclaimer
would be includible in A’s gross estate as provided
in section 2033 and the 60 percent portion of the
account not subject to the disclaimer would be
includible in A’s gross estate as provided in
section 2040(a), because A furnished all of the
funds with respect to the account.
Margaret Milner Richardson,
Commissioner of Internal Revenue.
(Filed by the Office of the Federal Register on
August 20, 1996, 8:45 a.m., and published in the
issue of the Federal Register for August 21, 1996,
61 F.R. 43197)
Telephone Numbers on
Statements—Forms W–2G, 1098,
1099, and 8308—Penalty Waiver
Announcement 96–88
The Taxpayer Bill of Rights 2 (P.L.
104–168) requires payers to provide the
telephone number of a person to contact
on certain statements to recipients, gen-
erally Copy B of the forms listed below.
This number must provide direct access
to an individual who can answer ques-
tions about the statement. This new
requirement applies to the 1996 forms
due to recipients by January 31, 1997.
Because the legislation was enacted af-
ter the 1996 forms were printed, a
failure to include a phone number on
the 1996 statements will be considered
to have arisen from an event beyond the
control of the filer. As a result, the
penalty under section 6722 of the Inter-
nal Revenue Code will be waived for
reasonable cause if the next statement
required to be provided (generally for
1997) includes the phone number.
Although the penalty will be waived
for 1996, payers are encouraged to enter
the telephone number anywhere they
choose on the recipient statements. The
law requires that the information be
entered on Forms W–2G, 1098, 1099–A,
1099–B, 1099–DIV, 1099–G (excluding
state or local income tax refunds),
1099–INT, 1099–MISC (excluding fish-
ing boat proceeds), 1099–OID, 1099–
PATR and 1099–S. However, payers
also are encouraged to furnish the tele-
phone number on other Forms 1099.
The 1997 revisions of the forms listed
above will require that the telephone
number be included in the filer name
1501996–38 I.R.B.

and address area. The telephone number
is not required on Copy A of paper
forms nor on magnetic media filed with
the IRS.
The telephone number also must be
provided on Form 8308, Report of a
Sale or Exchange of Certain Partnership
Interests, required to be furnished after
1996. Form 8308 is being revised ac-
cordingly.
Employee Plans and Exempt
Organizations; Requests for Certain
Determination Letters and
Applications For Recognition of
Exemption
Announcement 96–92
PURPOSE
This is to announce new ‘‘Where to
File’’ instructions for applications for
employee plans determination letters and
other letters and exempt organizations
applications for recognition of exemp-
tion from federal income tax, previously
sent to the Atlanta and Baltimore Key
District Offices of Internal Revenue.
BACKGROUND
The Internal Revenue Service is in
the process of centralizing the filing of
requests for determination and other
letters and applications for recognition
of tax exemption. Currently, plan spon-
sors and organizations file with one of
seven district offices depending on the
geographic location of the plan’s or
organization’s principal office or place
of business. Announcement 95–51, pub-
lished in Internal Revenue Bulletin
1995–25 at page 132, announced that
centralization will be phased in by dis-
trict.
The Service is also consolidating the
volume submitter and regional prototype
programs that are presently maintained
by each individual region. Plans previ-
ously approved by a key district office,
whose determination letter processing
program is being transferred to Cincin-
nati, will be reviewed using the same
criteria and procedures used by the
original district office. New guidelines
are being developed that will combine
the features and procedures currently in
use by the districts. Guidelines for the
revised volume submitter and regional
prototype programs will be explained in
a future announcement.
INSTRUCTIONS
Beginning September 1, 1996, letter
requests and applications previously sent
to the key district offices in Atlanta,
Georgia, and Baltimore, Maryland,
should be sent to the Internal Revenue
Service Center in Covington, Kentucky,
at the address shown below. (For a
period of time, requests and applications
mistakenly sent to the Atlanta and Balti-
more Key District Offices will be for-
warded.) The new address applies to
requests for determination letters, re-
gional prototype notification letters and
volume submitter advisory letters, on the
qualified status of employee plans under
sections 401, 403(a), and 409, and the
exempt status of any related trust under
section 501 of the Internal Revenue
Code, applications for recognition of tax
exemption on Form 1023 and Form
1024, and other letter applications for
recognition of qualification or exemp-
tion. The affected plan sponsors and
organizations are those whose principal
office or place of business is located in
Alabama, Arkansas, Delaware, District
of Columbia, Florida, Georgia, Louisi-
ana, Maryland, Mississippi, New Jersey,
North Carolina, Pennsylvania, South
Carolina, Tennessee, Virginia, or any
U.S. possession or foreign country.
These requests or applications should be
sent to:
Internal Revenue Service
P.O. Box 192
Covington, KY 41012–0192
Until further notice, plans and organi-
zations in all other locations will con-
tinue to file their requests or applica-
tions in accordance with the instructions
in Section 7 of Revenue Procedure
96–8, published in Internal Revenue
Bulletin 1996–1 at page 187, and the
instructions on Form 8717, User Fee for
Employee Plan Determination Letter Re-
quest, or Form 8718, User Fee for
Exempt Organization Determination Let-
ter Request.
General Revision of Regulations
Relating to Withholding of Tax on
Certain U.S. Source Income Paid to
Foreign Persons and Related
Collection, Refunds, and Credits;
Revision of Information Reporting
and Backup Withholding
Regulations; and Removal of
Regulations Under Part 35a and of
Certain Regulations Under Income
Tax Treaties; Correction
Announcement 96–93
AGENCY: Internal Revenue Service
(IRS), Treasury.
ACTION: Correction to notice of pro-
posed rulemaking.
SUMMARY: This document contains
corrections to the notice of proposed
rulemaking (INTL–062–90; INTL–
0032–93; INTL–52–86; INTL–52–94
[1996–19 I.R.B. 26]) which was pub-
lished in theFederal Registerfor Mon-
day, April 22, 1996 (61 FR 17614). The
notice of proposed rulemaking relates to
the withholding of income tax under
sections 1441 and 1442 on certain U.S.
source income paid to foreign persons,
the related tax deposit and reporting
requirements under section 1461, and
the related collection, refunds, and cred-
its of withheld tax under sections 1461
through 1463 and section 6402. In addi-
tion, the notice of proposed rulemaking
also relates to the statutory exemption
under sections 871(h) and 881(c) for
portfolio interest. The notice of pro-
posed rulemaking proposes to remove
certain temporary employment tax regu-
lations under the Interest and Dividend
Compliance Act of 1983 and to amend
existing regulations under sections
6041A and 6050N. The notice of pro-
posed rulemaking also proposes changes
to proposed regulations contained in
project number INTL–52–86, published
on February 29, 1988 (53 FR 5991)
under sections 6041, 6042, 6045, and
6049. The document proposes related
changes to the regulations under sec-
tions 163(f), 165(j), 3401, 3406, 6114,
and 6413 and proposes further changes
to the proposed regulations under sec-
tion 6109 contained in project number
IL–0024–94 published on June 8, 1995
(60 FR 30211). The document proposes
to remove certain regulations under in-
come tax treaties.
FOR FURTHER INFORMATION CON-
TACT: Philip Garlett, (202) 622–3880
for questions on proposed regulations
under sections 1441, 1442, 1461, 1462,
1463, 3401, 6402, and 6413;
Gwendolyn Stanley, (202) 622–3860 for
questions on payments to partnerships;
Carl Cooper, (202) 622–3840 for ques-
tions on proposed regulations under sec-
tion 163(f), 165(j), 871(h) and 881(c)
and on withholding agreements; Teresa
Burridge Hughes, (202) 622–3880 for
questions on proposed regulations under
section 6041 through 6049, 6050N;
Teresa Burridge Hughes, (202) 622–
3880 and Renay France, (202) 622–4910
for questions on proposed regulations
under section 3406; Elissa Shendalman,
(202) 622–3870 on proposed regulations
under sections 6045 and 6049 relating to
1511996–38 I.R.B.

the reporting of payments made in a
currency other than the U.S. dollar or
transactions subject to section 988; Lilo
Hester, (202) 874–1490 for questions on
proposed regulations under section
6109; David F. Bergkuist, (202) 622–
3860 for questions on proposed regula-
tions under section 6114 (numbers are
not toll-free).
SUPPLEMENTARY
INFORMATION:
Background
The notice of proposed rulemaking
that is the subject of these corrections
are under sections 163(f), 165(j), 871,
881, 1441, 1442, 1461, 1462, 1463,
3401, 3406, 6041, 6041A, 6042, 6045,
6049, 6050N, 6109, 6114, 6402, and
6413 of the Internal Revenue Code.
Need for Correction
As published, the notice of proposed
rulemaking (INTL–062–90; INTL–
0032–93; INTL–52–86; INTL–52–94)
contain errors which may prove to be
misleading and are in need of clarifica-
tion.
Correction of Publication
Accordingly, the publication of the
notice of proposed rulemaking (INTL–
062–90; INTL–0032–93; INTL–52–86;
INTL–52–94) which is the subject of
FR Doc. 96–8936 is corrected as fol-
lows:
1. On page 17619, column 1, in the
preamble following the paragraph head-
ing ‘‘Section 1.165–12 Denial of Deduc-
tion for Losses on Registration-Required
Obligations Not in Registered Form’’,
the last line in the first paragraph is
corrected to read ‘‘in Section 35a.9999–
4T, A–5 that the person is not a U.S.
person.’’ and the italicized heading pre-
ceding the second paragraph is removed.
2. On page 17621, column 1, in the
preamble following the paragraph head-
ing ‘‘Section 1.1441–1 Requirement for
the Withholding of Tax on Payments to
Foreign Persons’’, line 16 from the top
of the column, the language ‘‘continue
to apply trusts. See § 1.1441–’’ is cor-
rected to read ‘‘continue to apply to
trusts. See § 1.1441–’’.
3. On page 17621, column 3, in the
preamble following the paragraph head-
ing ‘‘Section 1.1441–1 Requirement for
the Withholding of Tax on Payments to
Foreign Persons’’, the second full para-
graph, line 3 from the bottom of the
paragraph, the language ‘‘§ 1.9999–
5(b), A9 and that are proposed’’ is
corrected to read ‘‘§ 35a.9999–5(b),
A–9 and that are proposed’’.
4. On page 17626, column 3, in the
preamble following the paragraph head-
ing ‘‘Section 1.1441–4 Certain Exemp-
tions From Withholding’’ the first full
paragraph, line 11, the language
‘‘(which expired on February, 1993). A’’
is corrected to read ‘‘(which expired on
February 2, 1993). A’’.
5. On page 17628, column 2, in the
preamble under the paragraph heading
‘‘Section 1.1441–7 General Provisions
Relating to Withholding Agents’’, the
italicized second paragraph from the
bottom of the column, is corrected to
read as follows:
Section 1.1441–7(b)(3) of the existing
regulations is proposed to be removed,
pending comments on the continuing
necessity of providing guidance on tax-
free covenant bonds.
6. On page 17630, column 2, in the
preamble under the paragraph heading
‘‘Section 1.1461–1 Deposit and Return
of Tax Withheld’’, the last two para-
graphs under that paragraph heading are
merged.
7. On page 17632, column 1, in the
preamble following the paragraph head-
ing ‘‘Section 31.3401(a)(6)–1(e) Income
Exempt From Income Tax’’, line 18
from the top of the column, the lan-
guage ‘‘withholding certificate should to
be’’ is corrected to read ‘‘withholding
certificate should be’’.
§ 1.871–14 [Corrected]
8. On page 17633, column 2,
§ 1.871–14(a), line 4 from the top of
the column, the language ‘‘871(h) or
882(a) if such interest is’’ is corrected to
read ‘‘871(b) or 882(a) if such interest
is’’.
§ 1.1441–1 [Corrected]
9. On page 17635, column 1,
§ 1.1441–1(b), line 10, the language
‘‘of tax and for the withholding agent’’
is corrected to read ‘‘of tax and for
which the withholding agent’’.
10. On page 17636, column 2,
§ 1.1441–1(c)(6)(ii)(B), line 17 from
the top of the column, the language
‘‘payments made to a singleforeign
entity’’ is corrected to read ‘‘payments
made to a single foreign entity’’.
11. On page 17637, column 3,
§ 1.1441–1(e)(3)(ii)(E), line 1, the lan-
guage ‘‘If the information is not assum-
ing’’ is corrected to read ‘‘If the quali-
fied intermediary is not assuming’’.
12. On page 17638, column 2,
§ 1.1441–1(e)(4)(ii)(B), line 10, the lan-
guage ‘‘1(c)(2)(ii) or the taxpayer identi-
fying’’ is corrected to read ‘‘1(c)(2)(i) or
the taxpayer identifying’’.
13. On page 17641, column 2,
§ 1.1441–1(f)(3)(i), line 4, the language
‘‘is presumed made to a U.S. person if
the’’ is corrected to read ‘‘is presumed
made to a U.S. person unless the’’.
§ 1.1441–3 [Corrected]
14. On page 17645, column 3,
§ 1.1441–3(e)(2), line 17, the language
‘‘dollar amounts withheld from year to’’
is corrected to read ‘‘dollar amounts
withheld and from year to’’.
§ 1.1441–4 [Corrected]
15. On page 17647, column 2,
§ 1.1441–4(b)(2)(ii) introductory text,
line 6, the language ‘‘the penalties of
perjury, and contain the’’ is corrected to
read ‘‘penalties of perjury, and contain
the’’.
16. On page 17648, column 2,
§ 1.1441–4(f)(2), line 3, the language
‘‘a date that is 60 days after the date
these’’ is corrected to read ‘‘the date that
is 60 days after the date these’’.
§ 1.1441–6 [Corrected]
17. On page 17649, column 3,
§ 1.1441–6(b)(1), line 22 from the top
of the column, the language ‘‘meaning
of section 267(b) and 707(b),’’ is cor-
rected to read ‘‘meaning of section
267(b) or 707(b),’’.
18. On page 17649, column 3,
§ 1.1441–6(b)(1), lines 31 and 32 from
the top of the column, the language
‘‘this chapter. See paragraph (d) of this
section for circumstances under which’’
is corrected to read ‘‘this chapter. See
§ 1.1441–1(e)(4)(v) for circumstances
under which’’.
§ 1.1461–2 [Corrected]
19. On page 17656, column 3,
§ 1.1461–2(a)(2)(ii), line 8, the lan-
guage ‘‘must provide a copy or such
receipt to’’ is corrected to read ‘‘must
provide a copy of such receipt to’’.
§ 1.6041–1 [Corrected]
20. On page 17657, column 3,
§ 1.6041–1(a)(1)(ii), line 14, the lan-
guage ‘‘royalties); or section 6050P(a)
or (b)’’ is corrected to read ‘‘royalties);
or section 6050P(a) and (b)’’.
§ 1.6041–4 [Corrected]
21. On page 17658, column 2,
§ 1.6041–4(b)(1), line 8, the language
1521996–38 I.R.B.

‘‘middleman. The termmiddleman’’ is
corrected to read ‘‘middleman and the
termmiddleman’’.
22. On page 17658, column 3,
§ 1.6041–4(d), line 10, the language
‘‘furnished such certification or’’ is cor-
rected to read ‘‘furnished required certi-
fication or’’.
§ 1.6045–1 [Corrected]
23. On page 17660, column 3, amen-
datory instruction 4. under ‘‘Par. 34.’’,
is corrected to read as follows:
4. Revising paragraph (g)(1) heading;
removing paragraph (g)(1) introductory
text; and revising paragraphs (g)(1)(i)
and (g)(2) through (g)(4).
24. On page 17661, column 2,
§ 1.6045–1(g)(4)(ii), last line in the col-
umn, the language ‘‘holds a valid Form
W–8 on a date that’’ is corrected to read
‘‘holds a valid Form W–8 on the date
that’’.
§ 1.6049–4 [Corrected]
25. On page 17662, column 1,
§ 1.6049–4(c)(1)(ii)(A)(6), line 2 from
the top of the column, the language
‘‘established on or before a date that is
60’’ is corrected to read ‘‘established on
or before the date that is 60’’.
§ 1.6049–5 [Corrected]
26. On page 17664, column 1,
§ 1.6049–5(g)(2), line 2, the language
‘‘holds a valid Form W–8 on a date
that’’ is corrected to read ‘‘holds a valid
Form W–8 on the date that’’.
§ 1.6050N–1 [Corrected]
27. On page 17664, column 3,
§ 1.6050N–1(e)(2), line 2, the language
‘‘holds a valid Form W–8 on a date
that’’ is corrected to read ‘‘holds a valid
Form W–8 on the date that’’.
§ 31.3406(g)–1 [Corrected]
28. On page 17665, column 2,
§ 31.3406(g)–1(e), line 10, the language
‘‘evidence described in § 1.6049–
5(2)(ii)’’ is corrected to read ‘‘evidence
described in § 1.6049–5(c)(2)(ii)’’.
§ 301.6114–1 [Corrected]
29. On page 17666, column 2, amen-
datory instruction 3. under ‘‘Par. 49.’’ is
corrected to read as follows:
3. Revising paragraphs (c)(1) and
(d)(4)(v).
The revisions read as follows:
§ 301.6114–1 [Corrected]
30. On page 17666, column 3,
§ 301.6114–1(a)(1)(ii), line 7 from the
top of the column, the language ‘‘under
the penalties of perjury (as well’’ is
corrected to read ‘‘under penalties of
perjury (as well’’.
Cynthia E. Grigsby,
Chief, Regulations Unit,
Assistant Chief Counsel (Corporate).
(Filed by the Office of the Federal Register on
August 14, 1996, 8:45 a.m., and published in the
issue of the Federal Register for August 15, 1996,
61 F.R. 42401)
Foundations Status of Certain
Organizations
Announcement 96–94
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:
Adventists Womens Coalition, Walla
Walla, WA
American Counsel Scholarship
Foundation Inc., Roseland, NJ
Center for Military History, Los
Angeles, CA
Creative Experiences and Children, St.
Paul, MN
Delmiro Garcia Scholarship Foundation,
San Antonio, TX
Eastern Shore of Virginia Foundation,
Franktown, VA
East Hills Rehabilitation & Fitness
Institute Inc., Johnstown, PA
Ecomedia, Washington, DC
Educational Research Institute,
Philadelphia, PA
El Campo Memorial Hospital
Foundation, Inc., El Campo, TX
El Coqui Sports and Prevention League,
Lancaster, PA
Environmental Compliance Oversight
Corporation, Trevose, PA
EVT High School Alumni Association
Inc., Baltimore, MD
Faces of Hope Foundation, Washington,
DC
Fairview Village Nursing Center,
Lewisberry, PA
Family Information Resource Support
Team Place Inc., Annandale, VA
Familyland Foundation, Inc., Ft. Myers,
FL
Family Visions Inc., Penn Hills, PA
Fauquier Alliance for Recreation,
Warrenton, VA
Fauquier Veterans Memorial Committee
Inc., Warrenton, VA
Fellowship of Friends of African
Descent, Philadelphia, PA
Finefrock & Stumpfs Charlotte Street
Gym, Lancaster, PA
Fire Streak Ministry, Coatesville, PA
First Atlantic Inc., Laurel, MD
Fish, Williamsburg, VA
Foundation for Animal Rights Advocacy
Inc., Newark, NJ
Foundation for Plastic Surgery,
Annandale, VA
Francisville Community Development
Corporation, Philadelphia, PA
Frederick Non-Profit Building Supply
Inc., Frederick, MD
Freedoms Choice Inc., Vienna, VA
Friends of Carter Barron Cultural Arts
Society, Washington, DC
Friends of Jerusalem Inc., Washington,
DC
Friends of John Castaldi Foundation
Inc., Philadelphia, PA
Friends of the Palette Place Art Gallery
Inc., New Brunswick, NJ
Friends of Saint Andrews Elementary
School Trust, Waynesboro, PA
Frontiers Associates Inc., Norfolk, VA
Full Life Incorporated, Annapolis, MD
Garabed Zambak Memorial Fund,
Springfield, PA
George Pittas Childrens Foundation Inc.,
Rockville, MD
George Washington Carver Vocational
Technical High Schl Foundation Inc.,
Baltimore, MD
Giles County Sheriffs Office Canteen,
Pearisburg, VA
Glebe Farm Group, Strausburg, VA
Global Awareness Society, Bloomsburg,
PA
Go Direct, Inc., Stillwater, OK
Golden Tornado Foundation Inc., Butler,
PA
Good News Ministries of America,
Philadelphia, PA
1531996–38 I.R.B.

Gopal Charities Food for Life
Incorporated, Linthicum, MD
High West Center of Environmental
Policy Studies, Flagstaff, AZ
Information Center for Education,
Dallas, TX
Peanut Batter Players, Boulder, CO
Pros for Kids, Inc., Scottsdale, AZ
Rock County Club, Inc., Beloit, WI
Shared Medical Research Foundation,
Tarzana, CA
Sound of Sight Inc., Broomfield, CO
Tom Moore Community Music
Foundation, Inc., Houston, TX
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 founda-
tion status in the Internal Revenue Bul-
letin.
The following organization, which has
been treated as a private operating foun-
dation described in section 4942(j)(3) of
the Code, has now been classified as an
organization that is not a private operat-
ing foundation. Grantors and contribu-
tors may no longer rely upon rulings or
determinations that this organization is a
private operating foundation. The orga-
nization is:
Citizen Policy Research Inc., East
Harwich, MA
1541996–38 I.R.B.

Announcement of the Disbarment, Suspension, and Consent to Voluntary
Suspension of Attorneys, Certified Public Accountants, Enrolled Agents and
Enrolled Actuaries From Practice Before the Internal Revenue Service
Under Section 330, Title 31 of the
United States Code, the Secretary of the
Treasury, after due notice and opportu-
nity for hearing, is authorized to sus-
pend or disbar from practice before the
Internal Revenue Service any person
who has violated the rules and regula-
tions governing the recognition of attor-
neys, certified public accountants, en-
rolled agents or enrolled actuaries to
practice before the Internal Revenue
Service.
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 under suspension from practice be-
fore the Internal Revenue Service.
To enable attorneys, certified public
accountants, enrolled agents and en-
rolled actuaries to identify such dis-
barred or suspended practitioners, 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 the date of disbarment or
period of suspension. This announce-
ment will appear in the weekly Bulletin
for five successive weeks or as long as
it is practicable for each attorney, certi-
fied public accountant, enrolled agent or
enrolled actuary so suspended or dis-
barred and will be consolidated and
published in the Cumulative Bulletin.
After due notice and opportunity for
hearing before an administrative law
judge, the following individuals have
been disbarred from further practice be-
fore the Internal Revenue Service:
NameAddressDesignationEffective Date
Styvaert, RichardSan Diego, CACPAJuly 5, 1996
Davis Jr., George L.Washington, D.C.Enrolled AgentAugust 15, 1996
Under 31 Code of Federal Regula-
tions, Part 10, an enrolled agent in order
to avoid the institution or conclusion of
a proceeding for his disbarment or sus-
pension from practice before the Internal
Revenue Service, may offer his resigna-
tion from such practice. The Director of
Practice, in his discretion, may suspend
an enrolled agent 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 enrolled agent who
has resigned from practice before the
Internal Revenue Service.
To enable attorneys, certified public
accountants, enrolled agents and en-
rolled actuaries to identify former en-
rolled agents who have resigned from
practice before the Internal Revenue
Service, the Director of Practice will
announce in the Internal Revenue Bulle-
tin the names and addresses of former
enrolled agents who have resigned from
such practice, and date of resignation.
This announcement will appear in the
weekly Bulletin at the earliest prac-
ticable 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
enrolled agent who has resigned, and
will be consolidated and published in
the Cumulative Bulletin.
The following individual has offered
his resignation as an enrolled agent:
NameAddressDate of Resignation
Marchioli, AnthonyDallas, TXJuly 12, 1996
Under 31 Code of Federal Regulations,
Part 10, an attorney, certified public ac-
countant, enrolled agent or enrolled actu-
ary, in order to avoid the institution or
conclusion of a proceeding for his disbar-
ment or suspension from practice before
the Internal Revenue Service, may offer
his consent to suspension from such prac-
tice. The Director of Practice, in his
discretion, may suspend an attorney, certi-
fied 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 sus-
pended 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:
155

NameAddressDesignationDate of Suspension
Berry, James R.Columbus, MOCPAJune 5, 1996 to December 4, 1997
Rohner Jr., Richard E.Burr Ridge, ILCPAJune 10, 1996 to June 9, 1997
Bova, Robert J.Tampa, FLCPAJune 10, 1996 to March 9, 1997
Rines, Robert L.Concord, NHAttorneyJune 17, 1996 to December 16, 1998
Kimball, RandyRancho Cucamonga, CA CPAJuly 1, 1996 to December 31, 1996
Cole, ShermanOklahoma City, OKCPAJuly 1, 1996 to March 31, 1997
Barretta, Samuel N.Southfield, MIAttorneyAugust 1, 1996 to December 31, 1999
Harris, Luis F.Orlando, FLCPAAugust 1, 1996 to October 31, 1996
Vourvoulias, JamesPark Ridge, ILCPAAugust 1, 1996 to October 31, 1996
Swan, Roy E.Salem, ORCPAAugust 1, 1996 to January 31, 1997
Hamilton, Barry K.Twins Falls, IDCPAAugust 1, 1996 to September 30, 1996
Horton, GretaRichland, VACPAIndefinite from August 2, 1996
Addabbo, Marie P.Manchester, CTEnrolled AgentSeptember 1, 1996 to May 31, 1997
Crouch Jr., Richard E.Miss’nViejo, CACPASeptember 1, 1996 to February 28, 1999
Sanders Jr., Wilfred A.Orlando, FLCPASeptember 1, 1996 to August 31, 1998
Perkins, Nancy F.Apple Valley, MNCPASeptember 1, 1996 to November 30, 1996
Nichols, Oliver R.Meriden, CTCPASeptember 1, 1996 to May 31, 1997
Winiemko, Ronald C.Sterl’g Hts, MIAttorneySeptember 1, 1996 to February 28, 1999
Pallman, William F.Guilford, CTCPASeptember 30, 1996 to January 29, 1997
Gannon, Martin C.Wallingford, CTCPASeptember 30, 1996 to December 29, 1996
Andrews, Craig A.Hicksville, OHCPASeptember 30, 1996 to September 29, 1997
156

Announcement of the Expedited Suspension of Attorneys, Certified Public
Accountants, Enrolled Agents, and Enrolled Actuaries From Practice Before The
Internal Revenue Service
Under title 31 of the Code of Federal
Regulations, section 10.76, the Director
of Practice is authorized to immediately
suspend from practice before the Internal
Revenue Service any practitioner who,
within five years, from the date the
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
Bower, Lewis H.Tampa, FLCPAIndefinite from May 30, 1996
Reiss, Irvin L.Newton, PACPAIndefinite from June 4, 1996
Reynolds, Mark E.Brownsburg, INAttorneyIndefinite from July 1, 1996
Moore, Philip J.Rome, GACPAIndefinite from July 10, 1996
Broek, Kevin J.Omaha, NECPAIndefinite from July 10, 1996
Bein, WilliamBeachwood, OHAttorneyIndefinite from August 1, 1996
Henry, GregoryBradford, PAAttorneyIndefinite from August 1, 1996
Sadler, George A.Houston, TXAttorneyIndefinite from August 1, 1996
Fuhr IV, John HenryDallas, TXCPAIndefinite from August 1, 1996
Rakov, Harris J.Mahwah, NJAttorneyIndefinite from August 1, 1996
Perkell, Mark E.S. Burlington, VTAttorneyIndefinite from August 1, 1996
Darrah, Robert J.Neola, IACPAIndefinite from August 21, 1996
Constantino, Enrico J.Bay Shore, NYAttorneyIndefinite from August 27, 1996
VanLoan, Jonathan A.Frazer, PAAttorneyIndefinite from August 27, 1996
Bennett, John J.Milford, CTAttorneyIndefinite from August 27, 1996
Lavin-Munch, Carole A. Merrionette Pk, ILCPAIndefinite from August 27, 1996
157

Definition of Terms
Revenue rulings and revenue procedures
(hereinafter referred to as ‘‘rulings’’)
that have an effect on previous rulings
use the following defined terms to de-
scribe the effect:
Amplifieddescribes a situation where
no change is being made in a prior
published 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 ampli-
fied. (Compare withmodified, below).
Clarifiedis 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 es-
sential difference between them.
Modifiedis 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
applies to both A and B, the prior ruling
is modified because it corrects a pub-
lished position. (Compare withamplified
andclarified, above).
Obsoleteddescribes a previously pub-
lished ruling that is not considered de-
terminative with respect to future trans-
actions. This term is most commonly
used in a ruling that lists previously
published rulings that are obsoleted be-
cause of changes in law or regulations.
A ruling may also be obsoleted because
the substance has been included in regu-
lations subsequently adopted.
Revokeddescribes situations where
the position in the previously published
ruling is not correct and the correct
position is being stated in the new
ruling.
Supersededdescribes 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 previ-
ously published over a period 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,modifiedandsuper-
sededdescribes a situation where the
substance of a previously published rul-
ing 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 su-
perseded.
Supplementedis 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
published that includes the list in the
original ruling and the additions, and
supersedes all prior rulings in the series.
Suspendedis 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
formerly 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.
158

Numerical Finding List
1
Bulletins 1996–27 through 1996–37
Announcements:
96–61, 1996–27 I.R.B.72
96–62, 1996–28 I.R.B.55
96–63, 1996–29 I.R.B.18
96–64, 1996–29 I.R.B.18
96–65, 1996–29 I.R.B.18
96–66, 1996–29 I.R.B.19
96–67, 1996–30 I.R.B.27
96–68, 1996–31 I.R.B.45
96–69, 1996–32 I.R.B.38
96–70, 1996–32 I.R.B.40
96–71, 1996–33 I.R.B.16
96–72, 1996–33 I.R.B.16
96–73, 1996–33 I.R.B.18
96–74, 1996–33 I.R.B.19
96–75, 1996–34 I.R.B.29
96–76, 1996–34 I.R.B.29
96–77, 1996–35 I.R.B.15
96–78, 1996–35 I.R.B.15
96–79, 1996–35 I.R.B.15
96–80, 1996–35 I.R.B.16
96–81, 1996–36 I.R.B.13
96–82, 1996–36 I.R.B.14
96–83, 1996–36 I.R.B.14
96–84, 1996–36 I.R.B.14
96–85, 1996–37 I.R.B.20
96–86, 1996–37 I.R.B.21
96–87, 1996–37 I.R.B.21
96–89, 1996–37 I.R.B.22
96–90, 1996–37 I.R.B.22
96–91, 1996–37 I.R.B.23
Court Decisions:
2058, 1996–34 I.R.B.13
2059, 1996–34 I.R.B.10
2060, 1996–34 I.R.B.5
Notices:
96–36, 1996–27 I.R.B.11
96–37, 1996–31 I.R.B.29
96–38, 1996–31 I.R.B.29
96–39, 1996–32 I.R.B.8
96–40, 1996–33 I.R.B.11
96–41, 1996–35 I.R.B.6
96–42, 1996–35 I.R.B.6
96–43, 1996–36 I.R.B.7
96–44, 1996–36 I.R.B.7
Proposed Regulations:
CO–9–96, 1996–34 I.R.B.20
CO–24–96, 1996–30 I.R.B.22
CO–25–96, 1996–31 I.R.B.30
CO–26–96, 1996–31 I.R.B.31
FI–28–96, 1996–31, I.R.B.33
FI–32–95, 1996–34 I.R.B.21
FI–48–95, 1996–31 I.R.B.36
FI–59–94, 1996–30 I.R.B.23
GL–7–96, 1996–33 I.R.B.13
IA–26–94, 1996–30 I.R.B.24
IA–29–96, 1996–33 I.R.B.14
IA–292–84, 1996–28 I.R.B.38
INTL–4–95, 1996–36 I.R.B.8
PS–22–96, 1996–33 I.R.B.15
PS–39–93, 1996–34 I.R.B.27
REG–209827–96, 1996–37 I.R.B.19
Public Laws:
104–117, 1996–34 I.R.B.19
Railroad Retirement Quarterly Rate
1996–29 I.R.B.14
Revenue Procedures:
96–36, 1996–27 I.R.B.11
96–37, 1996–29 I.R.B.16
96–39, 1996–33 I.R.B.11
96–40, 1996–32 I.R.B.8
96–41, 1996–32 I.R.B.9
96–42, 1996–32 I.R.B.14
96–43, 1996–35 I.R.B.6
96–44, 1996–35 I.R.B.7
96–45, 1996–35 I.R.B.12
Revenue Rulings:
96–33, 1996–27 I.R.B.4
96–34, 1996–28 I.R.B.4
96–35, 1996–31 I.R.B.4
96–36, 1996–30 I.R.B.6
96–37, 1996–32 I.R.B.4
96–38, 1996–33 I.R.B.4
96–39, 1996–34 I.R.B.4
96–42, 1996–35 I.R.B.4
96–43, 1996–36 I.R.B.4
Tax Conventions:
1996–28 I.R.B. 36
1996–36 I.R.B.6
Treasury Decisions:
8673, 1996–27 I.R.B.4
8674, 1996–28 I.R.B.7
8675, 1996–29 I.R.B.5
8676, 1996–30 I.R.B.4
8677, 1996–30 I.R.B.7
8678, 1996–31 I.R.B.11
8679, 1996–31 I.R.B.4
8680, 1996–33 I.R.B.5
8681, 1996–37 I.R.B.17
8682, 1996–37 I.R.B.4
1
A cumulative list of all Revenue Rulings, Rev-
enue Procedures, Treasury Decisions, etc., pub-
lished in Internal Revenue Bulletins 1996–1
through 1996–26 will be found in Internal Rev-
enue Bulletin 1996–27, dated July 1, 1996.
159

Finding List of Current Action on
Previously Published Items
1
Bulletins 1996–27 through 1996–37
*Denotes entry since last publication
Revenue Procedures:
80–27
Modified by
96–40, 1996–32 I.R.B.8
87–32
Modified by
TD 8680, 1996–33 I.R.B.5
92–20
Modified by
TD 8680, 1996–33 I.R.B.5
95–29
Superseded by
96–36, 1996–27 I.R.B.11
95–29A
Superseded by
96–36, 1996–27 I.R.B.11
95–30
Superseded by
96–42, 1996–32 I.R.B.14
1
A cumulative finding list for previously published
items mentioned in Internal Revenue Bulletins
1996–1 through 1996–26 will be found in Internal
Revenue Bulletin 1996–27, dated July 1, 1996.
160

Internal Revenue Bulletin 1996-38 (PDF rendition): IRS Revenue Rulings

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