Internal Revenue Bulletin 2002-10 (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.

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.
SPECIAL ANNOUNCEMENT
Announcement 2002–18, page 621.
The IRS will not assert that any taxpayer has understated his
federal tax liability by reason of the receipt or personal use of
frequent flyer miles or other in-kind promotional benefits attrib-
utable to the taxpayer’s business or official travel. Any future
guidance on the taxability of these benefits will be applied pro-
spectively. The relief provided by this announcement does not
apply to travel or other promotional benefits that are converted
to cash, to compensation that is paid in the form of travel or
other promotional benefits, or in other circumstances where
these benefits are used for tax avoidance purposes.
INCOME TAX
Rev. Rul. 2002–9, page 614.
Impact fees.This ruling provides that impact fees incurred by
a taxpayer in connection with the construction of a new residen-
tial rental building are capitalized costs allocable to the build-
ing. Rev. Proc. 2002–9 modified and amplified.
Rev. Rul. 2002–10, page 616.
Federal rates; adjusted federal rates; adjusted federal
long-term rate and the long-term exempt rate.For pur-
poses of sections 382, 1274, 1288, and other sections of the
Code, tables set forth the rates for March 2002.
Rev. Rul. 2002–11, page 608.
Election in respect of losses attributable to a disaster.
This ruling lists the areas declared by the President to qualify
as major disaster or emergency areas during 2001 under the
Disaster Relief and Emergency Assistance Act.
Notice 2002–19, page 619.
The “differential earnings rate” under section 809 of the Code
is tentatively determined for 2001 together with the “recom-
puted differential earnings rate” for 2000.
EXEMPT ORGANIZATIONS
Announcement 2002–25, page 621.
A list is provided of organizations now classified as private
foundations.
Actions Relating to Court Decisions is on the page following the Introduction.
Finding Lists begin on page ii.
Bulletin No. 2002–10
March 11, 2002

The IRS Mission
Provide America’s taxpayers top quality service by helping
them understand and meet their tax responsibilities and by
applying the tax law with integrity and fairness to all.
Introduction
The Internal Revenue Bulletin is the authoritative instrument of
the Commissioner of Internal Revenue for announcing official
rulings and procedures of the Internal Revenue Service and for
publishing Treasury Decisions, Executive Orders, Tax Conven-
tions, legislation, court decisions, and other items of general
interest. It is published weekly and may be obtained from the
Superintendent of Documents on a subscription basis. Bulletin
contents are consolidated semiannually into Cumulative Bulle-
tins, which are sold on a single-copy basis.
It is the policy of the Service to publish in the Bulletin all sub-
stantive rulings necessary to promote a uniform application of
the tax laws, including all rulings that supersede, revoke,
modify, or amend any of those previously published in the Bul-
letin. All published rulings apply retroactively unless otherwise
indicated. Procedures relating solely to matters of internal
management are not published; however, statements of inter-
nal practices and procedures that affect the rights and duties
of taxpayers are published.
Revenue rulings represent the conclusions of the Service on
the application of the law to the pivotal facts stated in the rev-
enue ruling. In those based on positions taken in rulings to tax-
payers or technical advice to Service field offices, identifying
details and information of a confidential nature are deleted to
prevent unwarranted invasions of privacy and to comply with
statutory requirements.
Rulings and procedures reported in the Bulletin do not have the
force and effect of Treasury Department Regulations, but they
may be used as precedents. Unpublished rulings will not be
relied on, used, or cited as precedents by Service personnel in
the disposition of other cases. In applying published rulings and
procedures, the effect of subsequent legislation, regulations,
court decisions, rulings, and procedures must be considered,
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 Other Related Items, and Subpart B, Legisla-
tion 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 Rul-
ings. Bank Secrecy Act Administrative Rulings are issued by
the Department of the Treasury’s Office of the Assistant Secre-
tary (Enforcement).
Part IV.—Items of General Interest.
This part includes notices of proposed rulemakings, disbar-
ment and suspension lists, and announcements.
The first Bulletin for each month includes a cumulative index for
the matters published during the preceding months. These
monthly indexes are cumulated on a semiannual basis, and are
published in the first Bulletin of the succeeding semiannual
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, DC 20402.
March 11, 20022002–10 I.R.B.

Actions Relating to Decisions of the Tax Court
It is the policy of the Internal Revenue
Service to announce at an early date
whether it will follow the holdings in cer-
tain cases. An Action on Decision is the
document making such an announcement.
An Action on Decision will be issued at
the discretion of the Service only on
unappealed issues decided adverse to the
government. Generally, an Action on
Decision is issued where its guidance
would be helpful to Service personnel
working with the same or similar issues.
Unlike a Treasury Regulation or a Rev-
enue Ruling, an Action on Decision is not
an affirmative statement of Service posi-
tion. It is not intended to serve as public
guidance and may not be cited as prece-
dent.
Actions on Decisions shall be relied
upon within the Service only as conclu-
sions applying the law to the facts in the
particular case at the time the Action on
Decision was issued. Caution should be
exercised in extending the recommenda-
tion of the Action on Decision to similar
cases where the facts are different. More-
over, the recommendation in the Action
on Decision may be superseded by new
legislation, regulations, rulings, cases, or
Actions on Decisions.
Prior to 1991, the Service published
acquiescence or nonacquiescence only in
certain regular Tax Court opinions. The
Service has expanded its acquiescence
program to include other civil tax cases
where guidance is determined to be help-
ful. Accordingly, the Service now may
acquiesce or nonacquiesce in the holdings
of memorandum Tax Court opinions, as
well as those of the United States District
Courts, Claims Court, and Circuit Courts
of Appeal. Regardless of the court decid-
ing the case, the recommendation of any
Action on Decision will be published in
the Internal Revenue Bulletin.
The recommendation in every Action
on Decision will be summarized as acqui-
escence, acquiescence in result only, or
nonacquiescence. Both “acquiescence”
and “acquiescence in result only” mean
that the Service accepts the holding of the
court in a case and that the Service will
follow it in disposing of cases with the
same controlling facts. However, “ac-
quiescence” indicates neither approval
nor disapproval of the reasons assigned
by the court for its conclusions; whereas,
“acquiescence in result only” indicates
disagreement or concern with some or all
of those reasons. “Nonacquiescence” sig-
nifies that, although no further review
was sought, the Service does not agree
with the holding of the court and, gener-
ally, will not follow the decision in dis-
posing of cases involving other taxpay-
ers. In reference to an opinion of a circuit
court of appeals, a “nonacquiescence”
indicates that the Service will not follow
the holding on a nationwide basis. How-
ever, the Service will recognize the prece-
dential impact of the opinion on cases
arising within the venue of the deciding
circuit.
The Actions on Decisions published in
the weekly Internal Revenue Bulletin are
consolidated semiannually and appear in
the first Bulletin for July and the Cumu-
lative Bulletin for the first half of the
year. A semiannual consolidation also
appears in the first Bulletin for the fol-
lowing January and in the Cumulative
Bulletin for the last half of the year.
The Commissioner ACQUIESCES in
result, as modified, only in the following
decision:
Paul Pekar v. Commissioner,
1
113 T.C. 158 (1999)
T.C. Dkt. No. 15289–97
1
Acquiescence in result, as modified, only relating to whether the late filing addition to tax under I.R.C. section 6651(a)(1) applies to a return received by the
Internal Revenue Service after its prescribed filing date, when the return was mailed in an envelope bearing an official postmark of a foreign countryshowing
the return had been mailed on the date it was due.
2002–10 I.R.B.March 11, 2002

Part I. Rulings and Decisions Under the Internal Revenue Code of 1986
Section 42.—Low-Income
Housing Credit
The adjusted applicable federal short-term, mid-
term, and long-term rates are set forth for the month
of March 2002. See Rev. Rul. 2002–10, page 616.
If impact fees incurred by a taxpayer in connec-
tion with the new construction or expansion of a
qualified low-income building are capitalized costs
allocable to the building, are these fees included in
the eligible basis of the qualified low-income build-
ing for purposes of§42 of the Internal Revenue
Code? See Rev. Rul. 2002–9, page 614.
Section 165.—Losses
26 CFR 1.165–11: Election in respect of losses
attributable to a disaster.
Election in respect to losses attribut-
able to a disaster.This ruling lists the
areas declared by the President to qualify
as major disaster or emergency areas dur-
ing 2001 under the Disaster Relief and
Emergency Assistance Act.
Rev. Rul. 2002–11
Under§165(i) of the Internal Revenue
Code, if a taxpayer suffers a loss attribut-
able to a disaster occurring in an area
subsequently determined by the President
of the United States to warrant assistance
by the Federal Government under the
Disaster Relief and Emergency Assis-
tance Act, 42 U.S.C.§§5121–5204c
(1988 & Supp. V 1993) (the Act), the tax-
payer may elect to claim a deduction for
that loss on the taxpayer’s federal income
tax return for the taxable year immedi-
ately preceding the taxable year in which
the disaster occurred. For purposes of
§165(i), a disaster includes an event
declared a major disaster or an emergency
under the Act.
Section 1.165–11(e) of the Income Tax
Regulations provides that the election to
deduct a disaster loss for the preceding
year must be made by filing a return, an
amended return, or a claim for refund on
or before the later of (1) the due date of
the taxpayer’s income tax return (deter-
mined without regard to any extension of
time to file the return) for the taxable year
in which the disaster actually occurred, or
(2) the due date of the taxpayer’s income
tax return (determined with regard to any
extension of time to file the return) for
the taxable year immediately preceding
the taxable year in which the disaster
actually occurred.
The provisions of§165(i) apply only
to losses that are otherwise deductible
under§165(a). An individual taxpayer
may deduct losses if they are incurred in
a trade or business, if they are incurred in
a transaction entered into for profit, or if
they are casualty losses under
§165(c)(3).
The President has determined that dur-
ing 2001 the areas listed below have been
adversely affected by disasters of suffi-
cient severity and magnitude to warrant
assistance by the Federal Government
under the Act.
A list of the areas warranting assis-
tance under the Act is available at the
Federal Emergency Management Agency
Internet site atwww.fema.gov. Accord-
ingly, the Internal Revenue Service
requests comments regarding the need for
future publication of this revenue ruling.
Comments should be submitted by May
1, 2002, either to:
Internal Revenue Service
P. O. Box 7604
Ben Franklin Station
Washington, DC 20044
Attn: CC:PA:T:CRU (ITA)
Room 5041
or electronically via the Service internet
siteat:Notice.Comments@irscounsel.
treas.gov(the Service comments e-mail
address). All comments will be available
for public inspection and copying.
FURTHER INFORMATION
For further information regarding this
revenue ruling, contact James Roy at
(202) 622–4950 (not a toll-free call).
Disaster AreaDisaster DescriptionDisaster Date
Alabama
Counties of Blount, Fayette, Jefferson, Lamar, Tuscaloosa,
and Walker
FEMA-1362-DR
Severe storms and flooding
February 16–17
Counties of Autauga, Blount, Butler, Calhoun, Cherokee,
Clay, Dale, DeKalb, Etowah, Fayette, Jefferson, Lamar,
Lawrence, Madison, Marion, Marshall, St. Clair, Talladega,
and Winston
FEMA-1399-DR
Severe storms and tornadoes
November 24–
December 12
Arkansas
Counties of Bradley, Clark, Cleveland, Columbia, Conway,
Craighead, Dallas, Drew, Franklin, Hempstead, Hot Spring,
Lafayette, Lincoln, Little River, Miller, Nevada, Newton,
Ouachita, Polk, Prairie, Union, and White
FEMA-1363-DR
Severe storms and flooding
February 14–March 21
2002–10 I.R.B.608March 11, 2002

Disaster AreaDisaster DescriptionDisaster Date
Colorado
Counties of Baca, Bent, Cheyenne, Crowley, Kiowa, Lincoln,
Logan, Morgan, Phillips, Prowers, Sedgwick, Washington,
Weld, and Yuma
FEMA-1374-DR
Severe storms
April 11–22
District of Columbia
AllFEMA-1389-DR
Flooding
August 10–12
Florida
Counties of Alachua, Baker, Bradford, Brevard, Broward,
Charlotte, Citrus, Clay, Collier, Columbia, DeSoto, Dixie,
Duval, Flagler, Gilchrist, Glades, Hamilton, Hardee, Hendry,
Hernando, Highlands, Hillsborough, Indian River, Lafayette,
Lake, Lee, Levy, Manatee, Marion, Martin, Miami-Dade,
Monroe, Nassau, Okeechobee, Orange, Osceola, Palm Beach,
Pasco, Pinellas, Polk, Putnam, Sarasota, Seminole, St. Johns,
St. Lucie, Sumter, Suwannee, Union, and Volusia
FEMA-1359-DR
Severe freeze
December 1, 2000–
January 25, 2001
Counties of Bay, Calhoun, Gadsden, Holmes, Jefferson, Leon,
Liberty, Wakulla, and Washington
FEMA-1381-DR
Tropical Storm Allison
June 11–15
Counties of Charlotte, Collier, DeSoto, Flagler, Hardee,
Highlands, Lee, Manatee, Putnam, St. Johns, and Sarasota
FEMA-1393-DR
Tropical Storm Gabrielle
September 13–21
Guam
AllFEMA-1397-DR
Earthquake
October 13
Illinois
Counties of Adams, Calhoun, Carroll, Hancock, Henderson,
Jo Daviess, Mercer, Pike, Rock Island, and Whiteside
FEMA-1368-DR
Flooding
April 18–May 29
Iowa
Counties of Allamakee, Buchanan, Calhoun, Clayton, Clinton,
Des Moines, Dubuque, Grundy, Henry, Humboldt, Jackson,
Lee, Louisa, Lucas, Muscatine, Palo Alto, Pottawattamie,
Ringgold, Sac, Scott, Union, Wapello, and Webster
FEMA-1367-DR
Severe storms and flooding
April 8–May 29
Kansas
County of BartonFEMA-1366-DR
Severe storms and tornado
April 21–May 1
Kentucky
Counties of Bath, Clay, Elliot, Estill, Floyd, Harrison,
Johnson, Knott, Lawrence, Letcher, Lewis, Livingston,
Mason, Menifee, Perry, Pike, Powell, Rockcastle, Rowan, and
Whitley
FEMA-1388-DR
Severe storms and flooding
July 27–August 23
March 11, 20026092002–10 I.R.B.

Disaster AreaDisaster DescriptionDisaster Date
Louisiana
Parishes of Bienville, Bossier, Caddo, Claiborne, Lincoln,
Ouachita, Union, and Webster
FEMA-1357-DR
Severe winter storm
December 11, 2000–
January 3, 2001
Parishes of Ascension, Assumption, Beauregard, East Baton
Rouge, East Feliciana Parish, Iberia, Iberville, Jefferson,
Lafayette, Lafourche, Livingston, Orleans, Pointe Coupee, St.
Bernard, St. Charles, Saint Helena, St. James, St. John the
Baptist, St. Martin, St. Mary, St. Tammany, Tangipahoa,
Terrebonne, Vermillion, Washington, West Baton Rouge, and
West Feliciana
FEMA-1380-DR
Tropical Storm Allison
June 5–22
Maine
Counties of Franklin, Kennebec, Oxford, Penobscot,
Washington, and York
FEMA-1371-DR
Severe storms and flooding
March 5–31
Counties of Androscoggin, Aroostook, Cumberland, Franklin,
Hancock, Lincoln, Oxford, Penobscot, Piscoataquis,
Sagadahoc, Somerset, Washington, and York
FEMA-3164–EM
Severe winter storm
March 5–31
Massachusetts
Counties of Berkshire, Essex, Franklin, Hampshire,
Middlesex, Norfolk, and Worcester
FEMA-3165–EM
Snowstorm
March 5–7
Counties of Bristol, Essex, Middlesex, Norfolk, Plymouth,
Suffolk, and Worcester
FEMA-1364-DR
Severe storms and flooding
March 5–April 16
Minnesota
Counties of Aitkin, Anoka, Beltrami, Benton, Big Stone,
Brown, Carlton, Carver, Chippewa, Chisago, Clay,
Clearwater, Crow Wing, Dakota, Dodge, Douglas, Faribault,
Freeborn, Grant, Goodhue, Hennepin, Houston, Isanti,
Kanabec, Kandiyohi, Kittson, Koochiching Olmstead, Lac qui
Parle, Lake of Woods, McLeod, Meeker, Mille Lacs,
Morrison, Mower, Nicollet, Noble, Norman, Otter Tail, Pine,
Polk, Ramsey, Red Lake, Redwood, Renville, Rice, Roseau,
Scott, Sibley, St. Louis, Stearns, Stevens, Swift, Todd,
Traverse, Wabasha, Washington, Wilkin, Winona, Wright, and
Yellow Medicine; Fond du Lac Indian Reservation, Mille
Lacs Indian Reservation, Red Lake Indian Reservation, and
White Earth Indian Reservation; and Tribal Governments of
Prairie Island and Upper Sioux
FEMA-1370-DR
Flooding
March 23–July 3
Mississippi
Counties of Amite, Alcorn, Attala, Bolivar, Calhoun, Carroll,
Chickasaw, Choctaw, Clay, Coahoma, Forrest, Franklin,
Grenada, Holmes, Humphreys, Itawamba, Jones, Lafayette,
Lamar, Lee, Leflore, Lincoln, Lowndes, Madison, Marion,
Monroe, Neshoba, Noxubee, Oktibbeha, Panola, Pearl River,
Perry, Pike, Pontotoc, Prentiss, Quitman, Scott, Sunflower,
Tallahatchie, Tate, Tippah, Tishomingo, Union, Walthall,
Washington, Webster, Wilkinson, Winston, Yalobusha, and
Yazoo
FEMA-1360-DR
Tornadoes and severe storms
February 16
2002–10 I.R.B.610March 11, 2002

Disaster AreaDisaster DescriptionDisaster Date
Counties of Attala, Holmes, Leake, Lee, Neshoba, and
Pontotoc
FEMA-1365-DR
Severe storms and flooding
April 3–5
Counties of George, Hancock, Harrison, Jackson, and Pearl
River
FEMA-1382-DR
Tropical Storm Allison
June 6–13
Counties of Benton, Bolivar, Coahoma, DeSoto, Grenada,
Hinds, Humphreys, Lafayette, Leake, Marshall, Madison,
Panola, Prentiss, Quitman, Scott, Sunflower, Tallahatchie,
Tate, Tippah, Tunica, and Washington
FEMA-1398-DR
Severe storms and tornadoes
November 24–25
Montana
County of Big Horn and Crow Indian ReservationFEMA-1377-DR
Severe storms
April 8–9
Counties of Gallatin, Missoula, and PowellFEMA-1385-DR
Severe storms
June 3–14
Nebraska
Counties of Banner, Blaine, Box Butte, Brown, Chase,
Cherry, Cheyenne, Custer, Deuel, Dundy, Gage, Garden,
Hayes, Hooker, Johnson, Keith, Keya Paha, Kimball, Lincoln,
Logan, McPherson, Morrill, Nuckolls, Perkins, Rock, Saline,
Sioux, and Thomas
FEMA-1373-DR
Severe storms
April 10–23
Dakota CountyFEMA-1394-DR
Severe storms and flooding
August 17–18
New Hampshire
Counties of Cheshire, Coos, Grafton, Hillsborough,
Merrimack, Rockingham, and Strafford
FEMA-3166–EM
Snowstorm
March 5–7
New Jersey
All countiesFEMA-3169–EM
Terrorist attack
September 11
New York
Counties of Albany, Allegany, Bronx, Broome, Cattaraugus,
Cayuga, Chautauqua, Chemung, Chenango, Clinton,
Columbia, Cortland, Delaware, Dutchess, Erie, Essex,
Franklin, Fulton, Genesee, Greene, Hamilton, Herkimer,
Jefferson, Kings, Lewis, Livingston, Madison, Monroe,
Montgomery, Nassau, New York, Niagara, Oneida, Onondaga,
Ontario, Orange, Orleans, Oswego, Otsego, Putnam, Queens,
Rensselaer, Richmond, Rockland, Saratoga, Schenectady,
Schoharie, Schuyler, Seneca, St. Lawrence, Steuben, Suffolk,
Sullivan, Tioga, Tompkins, Ulster, Warren, Washington,
Wayne, Westchester, Wyoming, and Yates
FEMA-1391-DR
Terrorist attack
September 11
March 11, 20026112002–10 I.R.B.

Disaster AreaDisaster DescriptionDisaster Date
North Dakota
Counties of Adams, Barnes, Benson, Bottineau, Burleigh,
Cass, Cavalier, Dickey, Eddy, Foster, Golden Valley, Grand
Forks, Grant, Griggs, Kidder, La Moure, Logan, McHenry,
McLean, Morton, Mountrail, Nelson, Pembina, Pierce,
Ramsey, Ransom, Richland, Rolette, Sargent, Sheridan,
Steele, Stutsman, Towner, Traill, Walsh, and Wells; and
Indian Reservations of the Spirit Lake Tribe and of the Turtle
Mountain Band of Chippewa
FEMA-1376-DR
Floods
March 1–August 9
Ohio
Counties of Brown, Butler, Clermont, and HamiltonFEMA-1390-DR
Severe storms and flooding
July 17–18
Oklahoma
Counties of Adair, Atoka, Beckham, Blaine, Bryan, Caddo,
Canadian, Carter, Cherokee, Choctaw, Cleveland, Coal,
Comanche, Cotton, Craig, Creek, Custer, Delaware, Garfield,
Garvin, Grady, Greer, Harmon, Haskell, Hughes, Jackson,
Jefferson, Johnston, Kay, Kingfisher, Kiowa, Latimer,
LeFlore, Lincoln, Logan, Love, Lowe, Marshall, Mayes,
McClain, McCurtain, McIntosh, Murray, Muskogee, Nowata,
Ofuskee, Oklahoma, Okmulgee, Osage, Ottawa, Pawnee,
Payne, Pittsburg, Pontotoc, Pottawatomie, Pushmataha, Roger
Mills, Rogers, Seminole, Sequoyah, Stephens, Tillman, Tulsa,
Wagoner, Washington, and Washita
FEMA-1355-DR
Severe winter storm
December 25, 2000–
January 10, 2001
Counties of Alfalfa, Atoka, Beaver, Beckham, Blaine, Bryan,
Caddo, Canadian, Carter, Choctaw, Cimarron, Coal,
Comanche, Cotton, Custer, Dewey, Ellis, Garfield, Garvin,
Grady, Harper, Haskell, Jackson, Jefferson, Johnston,
Kingfisher, Kiowa, Latimer, LeFlore, Love, Major, Marshall,
McClain, McCurtain, Murray, Muskogee, Okfuskee,
Oklahoma, Okmulgee, Payne, Pittsburg, Pushmataha, Roger
Mills, Stephens, Texas, Tillman, Washita, and Woodward
FEMA-1384-DR
Severe storms
May 27–30
County of WashitaFEMA-1395-DR
Severe storms and flooding
October 9–10
Pennsylvania
Counties of Bucks and MontgomeryFEMA-1383-DR
Tropical Storm Allison
June 15–17
Puerto Rico
Municipalities of Adjuntas, Añasco, Cabo Rojo, Guánica,
Guayanilla, Hormigueros, Lajas, Lares, Las Marias, Maricao,
Moca, Rincon, Sabana Grande, San German, and Yauco
FEMA-1372-DR
Flooding
May 6–11
Municipalities of Aguas Buenas, Barranquitas, Bayamon,
Ciales, Corozal, Jayuya, Juncos, Morovis, Naranjito,
Orocovis, San Lorenzo, Utuado, and Vega Alta
FEMA-1396-DR
Severe storms and flooding
November 7–9
2002–10 I.R.B.612March 11, 2002

Disaster AreaDisaster DescriptionDisaster Date
South Dakota
Counties of Beadle, Brookings, Brown, Buffalo, Clark,
Codington, Day, Deuel, Edmunds, Grant, Gregory, Hamlin,
Hanson, Jerauld, Kingsbury, Marshall, Mellette, Moody,
Roberts, Sanborn, Spink, Todd, Tripp, and Turner
FEMA-1375-DR
Severe storms
March 1–April 30
Tennessee
Counties of Carter, Cocke, Greene, Johnson, Shelby, Unicoi,
and Washington
FEMA-1387-DR
Severe storms and flooding
July 27–August 22
Texas
Counties of Armstrong, Bailey, Bowie, Borden, Briscoe,
Carson, Cass, Cherokee, Cooke, Crosby, Dawson, Deaf
Smith, Delta, Fannin, Floyd, Franklin, Gains, Garza, Gray,
Grayson, Gregg, Hall, Harrison, Hemphill, Hopkins, Hunt,
Lamar, Lynn, Marion, Montague, Morris, Nacogdoches,
Oldham, Panola, Parmer, Potter, Rains, Randall, Red River,
Rusk, San Augustine, Shelby, Smith, Titus, Upshur, and Wood
FEMA-1356-DR
Severe winter storm
December 12, 2000–
January 15, 2001
Counties of Anderson, Angelina, Brazoria, Cherokee,
Chambers, Fort Bend, Galveston, Grimes, Hardin, Harris,
Harrison, Houston, Jasper, Jefferson, Leon, Liberty, Madison,
Montgomery, Nacogdoches, Newton, Orange, Polk, Sabine,
San Augustine, San Jacinto, Shelby, Smith, Trinity, Tyler,
Walker, and Waller
FEMA-1379-DR
Severe storms and flooding
June 5–July 20
Vermont
Counties of Addison, Bennington, Chittenden, Grand Isle,
Lamoille, Orleans, Rutland, Windham, and Windsor
FEMA-3167–EM
Snowstorm
March 5–7
Virginia
Counties of Bath, Buchanan, Dickenson, Lee, Russell, Scott,
Smyth, Tazewell, Washington, and Wise
FEMA-1386-DR
Severe storms and flooding
July 8–August 27
County of ArlingtonFEMA-1392-DR
Terrorist attack
September 11
Washington
Counties of Benton, Chelan, Clallam, Clark, Cowlitz, Grays
Harbor, Island, Jefferson, King, Kitsap, Kittitas, Lewis,
Mason, Pacific, Pierce, Skagit, Skamania, Snohomish,
Thurston, Wahkiakum, Whatcom, and Yakima
FEMA-1361-DR
Earthquake
February 28–March 16
West Virginia
Counties of Boone, Cabell, Calhoun, Clay, Doddridge,
Fayette, Greenbrier, Kanawha, Lincoln, Logan, Marion,
Mason, McDowell, Mercer, Mingo, Nicholas, Preston,
Putnam, Raleigh, Roane, Summers, Taylor, Wayne, and
Wyoming
FEMA-1378-DR
Severe storms and flooding
May 15–September 4
March 11, 20026132002–10 I.R.B.

Disaster AreaDisaster DescriptionDisaster Date
Wisconsin
Counties of Adams, Ashland, Barron, Bayfield, Buffalo,
Burnett, Calumet, Chippewa, Clark, Crawford, Douglas,
Dunn, Grant, Iron, Jackson, Juneau, La Crosse, Outagamie,
Pepin, Pierce, Polk, Portage, Rusk, St. Croix, Taylor,
Trempealeau, Vernon, Washburn, Waupaca, Waushara,
Winnebago, and Wood
FEMA-1369-DR
Flooding
April 10–July 6
Section 167.—Depreciation
If impact fees incurred by a taxpayer in connec-
tion with the new construction or expansion of a
building are capitalized costs allocable to the build-
ing, are these fees depreciable under§167(a) of the
Internal Revenue Code? See Rev. Rul. 2002–9, on
this page.
Section 168.—Accelerated
Cost Recovery System
If impact fees incurred by a taxpayer in connec-
tion with the new construction or expansion of a
building are capitalized costs allocable to the build-
ing, how are these fees depreciated under§168 of
the Internal Revenue Code? See Rev. Rul. 2002–9,
on this page.
Section 263.—Capital
Expenditures
26 CFR 1.263(a)–1: Capital expenditures; in gen-
eral.
Are impact fees incurred by a taxpayer in con-
nection with the construction of a new residential
rental building capitalized costs allocable to the
building under§263(a) of the Internal Revenue
Code? See Rev. Rul. 2002–9, on this page.
Section 263A.—Capitalization
and Inclusion in Inventory
Costs of Certain Expenses
26 CFR 1.263A–1: Uniform capitalization of costs.
(Also§§42, 167, 168, 263, 446, 481; 1.263(a)–1.)
Impact fees.This ruling provides that
impact fees incurred by a taxpayer in con-
nection with the construction of a new
residential rental building are capitalized
costs allocable to the building.
Rev. Rul. 2002–9
ISSUE
Are“impact fees”incurred by a tax-
payer in connection with the construction
of a new residential rental building capi-
talized costs allocable to the building
under§§263(a) and 263A of the Internal
Revenue Code?
FACTS
Taxpayer is in the business of develop-
ing, owning, and leasing residential rental
property. Taxpayer purchased unimproved
land located in County on which Tax-
payer will construct a new residential
building that it will rent to tenants. The
development plan submitted by Taxpayer
to County indicates that the building is
expected to havexnumber of rental units.
County imposes“impact fees”on new
and expanded development.
Impact fees are one-time charges that
are imposed by a state or local govern-
ment against new development or expan-
sion of existing development to finance
specific offsite capital improvements for
general public use that are necessitated by
the new or expanded development. Gen-
erally, impact fees are refundable (in full
or in part) if the new or expanded devel-
opment ultimately is not constructed as
planned.
Taxpayer was required by County to
pay various impact fees (for example, for
schools and law enforcement and fire pro-
tection facilities) in order to compensate
County for the financial impact of Tax-
payer’s new building. These impact fees
were calculated based on Taxpayer’s pro-
jection of the number of rental units in,
and on the size of, the building. Taxpayer
paid the impact fees when the construc-
tion permit for the building was issued.
LAW AND ANALYSIS
Section 263(a) and§1.263(a)–1(a) of
the Income Tax Regulations provide that
no deduction is allowed for any amount
paid out for new buildings or for perma-
nent improvements or betterments made
to increase the value of any property or
estate. Section 1.263(a)–2(a) provides
that capital expenditures include the cost
of acquisition, construction, or erection of
buildings, machinery and equipment, fur-
niture and fixtures, and similar property
having a useful life substantially beyond
the taxable year.
Section 263A provides, in part, that
direct costs and a properly allocable por-
tion of indirect costs of real or tangible
personal property produced by a taxpayer
must be capitalized to the property pro-
duced. See also§1.263A–1(a)(3)(ii).
Section 263A(g)(1) provides that the term
“produce”includes construct, build,
install, manufacture, develop, or improve.
See also§1.263A–2(a)(1)(i). Property
produced may include land, buildings,
land improvements, and other tangible
property owned by the taxpayer for fed-
eral income tax purposes. See§1.263A–
2(a)(1)(ii). Section 1.263A–2(a)(3)(i) pro-
vides that any cost required to be
capitalized by§263A must be capitalized
regardless of whether the cost was
incurred before, during, or after produc-
tion.
Section 1.263A–1(e) provides rules for
determining the direct and indirect costs
that are required to be capitalized to prop-
erty produced. Section 1.263A–1(e)(2)(i)
provides that direct costs consist of direct
material and direct labor costs. Section
1.263A–1(e)(3)(i) defines indirect costs
as all costs other than direct material
costs and direct labor costs. Indirect costs
are properly allocable to property pro-
duced when the costs directly benefit, or
2002–10 I.R.B.614March 11, 2002

are incurred by reason of, the perfor-
mance of production activities. Indirect
costs that are allocable to production
activities then must be allocated among
the properties produced. See§1.263A–
1(f).
InOriole Homes Corp. v. U.S., 705
F.Supp. 1531 (S.D. Fla. 1989), the court
held that road, educational, regional park,
and municipal park impact fees required
for the approval and recordation of plats
for subdivisions are capital expenditures,
to be capitalized as a development cost
and deductedpro rataas each house is
sold. In reaching its holding, the court
stated that“the impact fees increased the
value of the subdivisions and secured a
benefit which lasted beyond the taxable
year in which they were incurred.”Simi-
larly, the impact fees incurred by Tax-
payer resulted in a permanent improve-
ment or betterment to Taxpayer’s
development project. Accordingly, consis-
tent withOriole Homes, the impact fees
incurred by Taxpayer must be capitalized
to the property produced under§263(a).
Moreover, because Taxpayer’s devel-
opment project constitutes production of
property within the meaning of
§263A(g)(1), Taxpayer is required to
capitalize under§263A the direct costs
and a proper share of the allocable indi-
rect costs associated with the develop-
ment. InVon-Lusk v. Commissioner, 104
T.C. 207 (1995), the court held that cer-
tain expenses incurred by a real estate
developer before actual physical work
began on undeveloped land are subject to
§263A. The court found that the develop-
er’s activities, such as obtaining building
permits and zoning variances, negotiating
permit fees, and similar activities, repre-
sent the“first steps in the development of
the property.”The court further noted that
the pursuit of building permits and zoning
variances, negotiating permit fees, and
similar activities“are ancillary to actual
physical work on the land and are as
much a part of a development project as
digging a foundation or completing a
structure’s frame. The project cannot
move forward if these steps are not
taken.”
The impact fees incurred by Taxpayer
are not direct costs within the meaning of
§263A because they are neither direct
material nor direct labor costs. However,
the impact fees are indirect costs under
§263A because they directly benefit, and
are incurred by reason of, Taxpayer’s pro-
duction activity. Similar to the costs at
issue inVon-Lusk, the impact fees were
assessed by County because of Taxpay-
er’s plans to construct the new residential
building, and thus are“as much a part of
a development project as digging a foun-
dation or completing a structure’s frame.”
Thus, in accordance with§1.263A–1(f),
Taxpayer must allocate the impact fees to
the property produced based on all the
facts and circumstances. Because the
impact fees are assessed as a result of
Taxpayer’s plans to construct the build-
ing, the amount of the impact fees is cal-
culated based upon the characteristics of
the building, and the impact fees gener-
ally would be refundable if Taxpayer
decides not to construct the building as
planned, the impact fees are allocable to
the building. Accordingly, the impact fees
must be capitalized under§263A as indi-
rect costs allocable to the new residential
rental building.
HOLDING
“Impact fees”incurred by a taxpayer
in connection with the construction of a
new residential rental building are capi-
talized costs allocable to the building
under§§263(a) and 263A.
APPLICATION
Any change in a taxpayer’s treatment
of impact fees incurred in connection
with the new construction or expansion of
a building to conform with this revenue
ruling is a change in method of account-
ing to which the provisions of§§446 and
481 and the regulations thereunder apply.
A taxpayer wanting to change the
method of accounting for impact fees to
conform with this revenue ruling must
follow the automatic change in method of
accounting provisions in Rev. Proc.
2002–9 (2002–3 I.R.B. 327) (or its suc-
cessor), as modified and clarified by
Announcement 2002–17 (2002–8 I.R.B.
561), with the following modifications:
(1) If the taxpayer changes its method
of accounting for impact fees to conform
with this revenue ruling for the first tax-
able year ending on or after December
31, 2001, the scope limitations in section
4.02 of Rev. Proc. 2002–9 do not apply;
and
(2) To assist the Internal Revenue Ser-
vice in processing changes in method of
accounting under this revenue ruling, and
to ensure proper handling, section
6.02(4)(a) of Rev. Proc. 2002–9 is modi-
fied to require that a Form 3115 filed
under this revenue ruling include the
statement“Automatic Change Filed
Under Rev. Rul. 2002–9.”This statement
should be legibly printed or typed on the
appropriate line on the Form 3115.
If a taxpayer changes its method of
accounting for impact fees to conform
with this revenue ruling, the treatment of
impact fees will not be raised as an issue
in any taxable year before the year of
change, consistent with the audit protec-
tion provision of section 7.01 of Rev.
Proc. 2002–9. If this change in method of
accounting is made for the taxpayer’s first
taxable year ending on or after December
31, 2001, and the treatment of impact fees
has already been raised as an issue in a
taxable year before the taxpayer’s first
taxable year ending on or after December
31, 2001, the treatment of impact fees
will not be further pursued.
If a depreciation deduction is allow-
able under§167(a) for the building and it
is subject to§168, the taxpayer must
depreciate the impact fees under§168 as
residential rental property or nonresiden-
tial real property (as both are defined in
§168(e)(2)), as appropriate, beginning
when the newly constructed building or
the expansion of the building is placed in
service by the taxpayer. Moreover, for
purposes of§42, impact fees are included
in the eligible basis of a qualified low-
income building. A change in method of
accounting for impact fees to conform to
this revenue ruling does not affect the
amount of credit that has been allocated
under§42(h)(1) or allowed for buildings
financed with tax-exempt bonds subject
to the volume cap as determined under
§42(h)(4).
EFFECT ON OTHER DOCUMENTS
Rev. Proc. 2002–9 is modified and
amplified to include this accounting
method change in section 4 of the
APPENDIX.
DRAFTING INFORMATION
The principal authors of this revenue
ruling are Kathleen Reed and Christopher
March 11, 20026152002–10 I.R.B.

J. Wilson of the Office of Associate Chief
Counsel (Passthroughs and Special Indus-
tries). For further information regarding
§42, 167, or 168, contact Gregory Doran
at (202) 622-3040 or Mr. Wilson at (808)
539-2874. For further information regard-
ing§263(a) or 263A, contact Cheryl L.
Oseekey at (202) 622–4970. These are
not toll-free calls.
Section 280G.—Golden
Parachute Payments
Federal short-term, mid-term, and long-term
rates are set forth for the month of March 2002. See
Rev. Rul. 2002–10, on this page.
Section 382.—Limitation on
Net Operating Loss
Carryforwards and Certain
Built-In Losses Following
Ownership Change
The adjusted applicable federal long-term rate is
set forth for the month of March 2002. See Rev.
Rul. 2002–10, on this page.
Section 412.—Minimum
Funding Standards
The adjusted applicable federal short-term, mid-
term, and long-term rates are set forth for the month
of March 2002. See Rev. Rul. 2002–10, on this
page.
Section 446.—General Rule
for Methods of Accounting
If a taxpayer changes its treatment of impact
fees incurred in connection with the new construc-
tion or expansion of a building, is this change a
change in method of accounting under§446(e) of
the Internal Revenue Code? See Rev. Rul. 2002–9,
page 614.
Section 467.—Certain
Payments for the Use of
Property or Services
The adjusted applicable federal short-term, mid-
term, and long-term rates are set forth for the month
of March 2002. See Rev. Rul. 2002–10, on this
page.
Section 468.—Special Rules
for Mining and Solid Waste
Reclamation and Closing
Costs
The adjusted applicable federal short-term, mid-
term, and long-term rates are set forth for the month
of March 2002. See Rev. Rul. 2002–10, on this
page.
Section 481.—Adjustments
Required by Changes in
Method of Accounting
If a taxpayer changes its treatment of impact
fees incurred in connection with the new construc-
tion or expansion of a building, is an adjustment
under§481 of the Internal Revenue Code taken into
account in computing taxable income? See Rev.
Rul. 2002–9, page 614.
Section 482.—Allocation of
Income and Deductions
Among Taxpayers
Federal short-term, mid-term, and long-term
rates are set forth for the month of March 2002. See
Rev. Rul. 2002–10, on this page.
Section 483.—Interest on
Certain Deferred Payments
The adjusted applicable federal short-term, mid-
term, and long-term rates are set forth for the month
of March 2002. See Rev. Rul. 2002–10, on this
page.
Section 642.—Special Rules
for Credits and Deductions
Federal short-term, mid-term, and long-term
rates are set forth for the month of March 2002. See
Rev. Rul. 2002–10, on this page.
Section 807.—Rules for
Certain Reserves
The adjusted applicable federal short-term, mid-
term, and long-term rates are set forth for the month
of March 2002. See Rev. Rul. 2002–10, on this
page.
Section 846.—Discounted
Unpaid Losses Defined
The adjusted applicable federal short-term, mid-
term, and long-term rates are set forth for the month
of March 2002. See Rev. Rul. 2002–10, on this
page.
Section 1274.—Determin-
ation of Issue Price in the
Case of Certain Debt
Instruments Issued for
Property
(Also sections 42, 280G, 382, 412, 467, 468, 482,
483, 642, 807, 846, 1288, 7520, 7872.)
Federal rates; adjusted federal
rates; adjusted federal long-term rate
and the long-term exempt rate. For pur-
poses of sections 382, 1274, 1288, and
other sections of the Code, tables set forth
the rates for March 2002.
Rev. Rul. 2002–10
This revenue ruling provides various
prescribed rates for federal income tax
purposes for March 2002 (the current
month). Table 1 contains the short-term,
mid-term, and long-term applicable fed-
eral rates (AFR) for the current month for
purposes of section 1274(d) of the Inter-
nal Revenue Code. Table 2 contains the
short-term, mid-term, and long-term
adjusted applicable federal rates (adjusted
AFR) for the current month for purposes
of section 1288(b). Table 3 sets forth the
adjusted federal long-term rate and the
long-term tax-exempt rate described in
section 382(f). Table 4 contains the
appropriate percentages for determining
the low-income housing credit described
in section 42(b)(2) for buildings placed in
service during the current month. Finally,
Table 5 contains the federal rate for deter-
mining the present value of an annuity, an
interest for life or for a term of years, or
a remainder or a reversionary interest for
purposes of section 7520.
2002–10 I.R.B.616March 11, 2002

REV. RUL. 2002–10 TABLE 1
Applicable Federal Rates (AFR) for March 2002
Period for Compounding
AnnualSemiannualQuarterlyMonthly
Short-Term
AFR2.69%2.67%2.66%2.66%
110% AFR2.96%2.94%2.93%2.92%
120% AFR3.23%3.20%3.19%3.18%
130% AFR3.50%3.47%3.46%3.45%
Mid-Term
AFR4.52%4.47%4.45%4.43%
110% AFR4.98%4.92%4.89%4.87%
120% AFR5.43%5.36%5.32%5.30%
130% AFR5.89%5.81%5.77%5.74%
150% AFR6.82%6.71%6.65%6.62%
175% AFR7.97%7.82%7.75%7.70%
Long-Term
AFR5.48%5.41%5.37%5.35%
110% AFR6.04%5.95%5.91%5.88%
120% AFR6.60%6.49%6.44%6.40%
130% AFR7.15%7.03%6.97%6.93%
REV. RUL. 2002–10 TABLE 2
Adjusted AFR for March 2002
Period for Compounding
AnnualSemiannualQuarterlyMonthly
Short-term
adjusted AFR2.07%2.06%2.05%2.05%
Mid-term
adjusted AFR3.57%3.54%3.52%3.51%
Long-term
adjusted AFR4.86%4.80%4.77%4.75%
March 11, 20026172002–10 I.R.B.

REV. RUL. 2002–10 TABLE 3
Rates Under Section 382 for March 2002
Adjusted federal long-term rate for the current month4.86%
Long-term tax-exempt rate for ownership changes during the current month (the highest
of the adjusted federal long-term rates for the current month and the prior two months.)5.01%
REV. RUL. 2002–10 TABLE 4
Appropriate Percentages Under Section 42(b)(2) for March 2002
Appropriate percentage for the 70% present value low-income housing credit8.17%
Appropriate percentage for the 30% present value low-income housing credit3.50%
REV. RUL. 2002–10 TABLE 5
Rate Under Section 7520 for March 2002
Applicable federal rate for determining the present value of an annuity, an interest for life
or a term of years, or a remainder or reversionary interest5.4%
Section 1288.—Treatment of
Original Issue Discounts on
Tax-Exempt Obligations
The adjusted applicable federal short-term, mid-
term, and long-term rates are set forth for the month
of March 2002. See Rev. Rul. 2002–10, page 616.
Section 7520.—Valuation
Tables
The adjusted applicable federal short-term, mid-
term, and long-term rates are set forth for the month
of March 2002. See Rev. Rul. 2002–10, page 616.
Section 7872.—Treatment of
Loans with Below-Market
Interest Rates
The adjusted applicable federal short-term, mid-
term, and long-term rates are set forth for the month
of March 2002. See Rev. Rul. 2002–10, page 616.
2002–10 I.R.B.618March 11, 2002

Part III. Administrative, Procedural, and Miscellaneous
Differential Earnings Rate for
Mutual Life Insurance
Companies
Notice 2002–19
This notice publishes a tentative deter-
mination under§809 of the Internal Rev-
enue Code of the“differential earnings
rate”for 2001 and the rate that is used to
calculate the“recomputed differential
earnings amount”for 2000. (The latter
rate is referred to in this notice as the
“recomputed differential earnings rate”
for 2000.) These rates are used by mutual
life insurance companies to calculate their
federal income tax liability for taxable
years beginning in 2001.
BACKGROUND
Section 809(a) provides that, in the
case of any mutual life insurance com-
pany, the amount of the deduction allow-
able under§808 for policyholder divi-
dends is reduced (but not below zero) by
the“differential earnings amount.”Any
excess of the differential earnings amount
over the amount of the deduction allow-
able under§808 is taken into account as
a reduction in the closing balance of
reserves under subsections (a) and (b) of
§807. The“differential earnings amount”
for any taxable year is the amount equal
to the product of (a) the life insurance
company’s average equity base for the
taxable year multiplied by (b) the“differ-
ential earnings rate”for that taxable year.
The“differential earnings rate”for the
taxable year is the excess of (a) the
“imputed earnings rate”for the taxable
year over (b) the“average mutual earn-
ings rate”for the second calendar year
preceding the calendar year in which the
taxable year begins. The“imputed earn-
ings rate”for any taxable year is the
amount that bears the same ratio to 16.5
percent as the“current stock earnings
rate”for the taxable year bears to the
“base period stock earnings rate.”
Section 809(f) provides that, in the
case of any mutual life insurance com-
pany, if the“recomputed differential earn-
ings amount”for any taxable year
exceeds the differential earnings amount
for that taxable year, the excess is
included in life insurance gross income
for the succeeding taxable year. If the dif-
ferential earnings amount for any taxable
year exceeds the recomputed differential
earnings amount for that taxable year, the
excess is allowed as a life insurance
deduction for the succeeding taxable year.
The“recomputed differential earnings
amount”for any taxable year is an
amount calculated in the same manner as
the differential earnings amount for that
taxable year, except that the average
mutual earnings rate for the calendar year
in which the taxable year begins is substi-
tuted for the average mutual earnings rate
for the second calendar year preceding
the calendar year in which the taxable
year begins.
The stock earnings rates and mutual
earnings rates taken into account under
§809 generally are determined by divid-
ing statement gain from operations by the
average equity base. For this purpose, the
term“statement gain from operations”
means“the net gain or loss from opera-
tions required to be set forth in the annual
statement, determined without regard to
Federal income taxes, and... properly
adjusted for realized capital gains and
losses....”See§809(g)(1). The term
“equity base”is defined as an amount
determined in the manner prescribed by
regulations equal to surplus and capital
increased by the amount of nonadmitted
financial assets, the excess of statutory
reserves over the amount of tax reserves,
the sum of certain other reserves, and 50
percent of any policyholder dividends (or
other similar liability) payable in the fol-
lowing taxable year.See§809(b)(2), (3),
(4), (5), and (6). Section 1.809–10 of the
Income Tax Regulations provides that the
equity base includes both the asset valua-
tion reserve and the interest maintenance
reserve for taxable years ending after
December 31, 1991.
Section 1.809–9(a) of the regulations
provides that neither the differential earn-
ings rate under§809(c) nor the recom-
puted differential earnings rate that is
used in computing the recomputed differ-
ential earnings amount under§809(f)(3)
may be less than zero.
Rev. Rul. 99–3 (1999–1 C.B. 313) pro-
vides that a life insurance subsidiary of a
mutual holding company is not a mutual
life insurance company for which the
deduction for policyholder dividends is
reduced pursuant to§§808(c)(2) and 809.
As described above, the differential
earnings rate for 2001 and the recom-
puted differential earnings rate for 2000
affect the income and deductions reported
by mutual life insurance companies on
their federal income tax returns for the
2001 taxable year.
Data necessary to determine the tenta-
tive differential earnings rate for 2001
and the tentative recomputed differential
earnings rate for 2000 have been com-
piled from returns filed by mutual life
insurance companies and certain stock
life insurance companies. The Internal
Revenue Service is currently examining
these returns. This examination will not
be completed before the March 15, 2002,
due date for filing 2001 calendar year
returns.
NOTICE OF TENTATIVE RATES
This notice publishes a tentative deter-
mination of the differential earnings rate
for 2001 and of the recomputed differen-
tial earnings rate for 2000. This notice
also publishes a tentative determination
of the rates on which the calculation of
the differential earnings rate for 2001 and
the recomputed differential earnings rate
for 2000 are based. The final determina-
tion of these rates is expected to be pub-
lished before September 1, 2002.
The tentative determination of the dif-
ferential earnings rate for 2001 and the
tentative determination of the recomputed
differential earnings rate for 2000 that are
published in this notice should be used by
mutual life insurance companies to calcu-
late the amount of tax liability for taxable
years beginning in 2001 (in the case of
companies that file returns before publi-
cation of the final determination of these
rates) or to calculate the amount of esti-
mated unpaid tax liability for taxable
years beginning in 2001 (in the case of
companies that are allowed an extension
of time to file returns). Companies that
file returns before publication of the final
determination of these rates should file
amended returns after the final determina-
tion of these rates is published. If there is
a failure to pay tax for a taxable year
March 11, 20026192002–10 I.R.B.

beginning in 2001 and the failure is
attributable to a difference between (a)
the tentative determination of the differ-
ential earnings rate for 2001 and recom-
puted differential earnings rate for 2000
and (b) the final determination of these
rates, then any such failure through Sep-
tember 16, 2002, will be treated as due to
reasonable cause and will not give rise to
any addition to tax under§6651.
The tentative determination of the
rates is set forth in Table 1.
Notice 2002–19Table 1
Tentative Determination of Rates To Be Used For Taxable Years Beginning in 2001
Differential earnings rate for 2001 .......................................................................................................................0
Recomputed differential earnings rate for 2000 ..................................................................................................0
Imputed earnings rate for 2000 ............................................................................................................................15.358
Imputed earnings rate for 2001 ............................................................................................................................12.540
Base period stock earnings rate ...........................................................................................................................18.221
Current stock earnings rate for 2001 ...................................................................................................................13.848
Stock earnings rate for 1998 ................................................................................................................................15.836
Stock earnings rate for 1999 ................................................................................................................................15.724
Stock earnings rate for 2000 ................................................................................................................................9.983
Average mutual earnings rate for 1999 ................................................................................................................16.164
Average mutual earnings rate for 2000 ................................................................................................................15.788
DRAFTING INFORMATION
The principal author of this notice is
Katherine A. Hossofsky of the Office of
the Associate Chief Counsel (Financial
Institutions and Products). For further
information regarding this notice, contact
Ms. Hossofsky at (202) 622–3477 (not a
toll-free call).
2002–10 I.R.B.620March 11, 2002

Part IV. Items of General Interest
Frequent Flyer Miles
Attributable to Business or
Official Travel
Announcement 2002–18
Most major airlines offer frequent
flyer programs under which passengers
accumulate miles for each flight. Indi-
viduals may also earn frequent flyer miles
or other promotional benefits, for
example, through rental cars or hotels.
These promotional benefits may generally
be exchanged for upgraded seating, free
travel, discounted travel, travel-related
services, or other services or benefits.
Questions have been raised concerning
the taxability of frequent flyer miles or
other promotional items that are received
as the result of business travel and used
for personal purposes. There are numer-
ous technical and administrative issues
relating to these benefits on which no
official guidance has been provided,
including issues relating to the timing and
valuation of income inclusions and the
basis for identifying personal use benefits
attributable to business (or official)
expenditures versus those attributable to
personal expenditures. Because of these
unresolved issues, the IRS has not pur-
sued a tax enforcement program with
respect to promotional benefits such as
frequent flyer miles.
Consistent with prior practice, the IRS
will not assert that any taxpayer has
understated his federal tax liability by
reason of the receipt or personal use of
frequent flyer miles or other in-kind pro-
motional benefits attributable to the tax-
payer’s business or official travel. Any
future guidance on the taxability of these
benefits will be applied prospectively.
This relief does not apply to travel or
other promotional benefits that are con-
verted to cash, to compensation that is
paid in the form of travel or other promo-
tional benefits, or in other circumstances
where these benefits are used for tax
avoidance purposes.
For information regarding this
announcement, call (202) 622–4606 (not
a toll-free number). Alternatively, taxpay-
ers may transmit comments electronically
viathefollowinge-mailaddress:
Notice.Comments@irscounsel.treas.gov.
Please include“Announcement 2002–18”
in the subject line of any electronic
communications.
Foundations Status of Certain
Organizations
Announcement 2002–25
The following organizations have
failed to establish or have been unable to
maintain their status as public charities or
as operating foundations. Accordingly,
grantors and contributors may not, after
this date, rely on previous rulings or des-
ignations in the Cumulative List of Orga-
nizations (Publication 78), or on the pre-
sumption 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 pri-
vate foundations described in section
509(a) of the Code) are now classified as
private foundations:
100 Black Men of Central Florida, Inc.,
Daytona Beach, FL
AADEM, Inc., McAllen, TX
Action for Affordable Housing,
Greenwood Village, CO
African Americans Taking Action AIDS
Council, Inc., Waterloo, IA
Alternatives Living, Inc.,
New Orleans, LA
AM Envirotraining, Inc.,
San Antonio, TX
American-Arab Media Foundation, Inc.,
Wellesley, MA
American Committee for the David
Shapell College of Jewish Studies,
Brooklyn, NY
American Echo Chinese Institute,
Walnut, CA
American Foundation for the
Development of Nicaragua, Inc.,
Miami, FL
American Leadership Foundation,
Ruckersville, VA
American Literacy Network, Inc.,
Tarrytown, NY
American Methadone Treatment
Association, New York, NY
American Micro Institute, Inc.,
West Terre Haute, IN
American Museum of Entrepreneurs,
Inc., West Palm Beach, FL
Angel Land Child Care & Parent
Centers, Detroit, MI
Animals Museum, Venice, CA
Anne Walker Scholarship Fund,
New York, NY
Arlington Development Corporation,
Akron, OH
Art Spirit, Inc., New York, NY
Assisted Reproduction Foundation, Inc.,
Bedford, MA
Awareness Plus, Sherman Oaks, CA
Barbara Chasan Center for Creative
Approaches to Social Change,
Ames, IA
Berkeley Community Homes,
Oakland, CA
Bernard E. Shultz Foundation, Inc.,
Silver Spring, MD
BFI Human Services Foundation, Inc.,
Sacramento, CA
Bikeways Maui, Inc., Hana, HI
Blue Skunk Society, Inc., Mankato, MN
Bridges of DC, Inc., Washington, DC
Broken Tree One Room Cosmos School
House Research Initiative, Inc.,
Kintnersville, PA
Building Blocks Non-Profit Housing
Corporation, Royal Oak, MI
Bushwick United Community Service
Council, Inc., Brooklyn, NY
Cal Community Housing, Oakland, CA
California Association of American
Physicians & Surgeons Educational,
Torrance, CA
California Street Corporation,
Needham, MA
Californians Against Fraud,
San Francisco, CA
Carolyn Brown Reading Academy,
Bellevue, WA
Cedarmore Corporation, Freeport, NY
Center for National & International
Community Management,
Wilberforce, OH
Center on Deafness Inland Empire, Inc.,
Los Angeles, CA
March 11, 20026212002–10 I.R.B.

Charleston Community and Family
Development Corporation,
Charleston, WV
Chicago Pet Museum, Chicago, IL
Children of the Son, Cotopaxi, CO
Christ, Inc., Rockford, IL
Christian Research and Resource Center,
Raleigh, NC
Citizens Against Domestic Violence,
Inc., New York, NY
Clarkston Community Museum
Foundation, Inc., Clarkston, MI
Coalition for a Healthy and Responsible
Georgia, Smyrna, GA
Community Coalition to Restructure P S
76, Inc., Brooklyn, NY
Community Youth Services,
Jackson, MS
Concerned Citizens Commission on
Pornography and Obscenity,
Hesperia, CA
Contemporary Art for America,
New York, NY
Creative Decisions Foundation,
Pittsburgh, PA
Cutler-Orosi Seniors, Cutler, PA
Desai Charitable Foundation, Inc.,
Wayne, NJ
Development Partners for Eastern
Europe, Inc., Quincy, MA
Diamond Community Development
Group, Portage, MI
Discover Education Corporation,
Tulsa, OK
Disowned Children of America
Foundation, Union City, GA
DMH-Ohio, Inc., San Diego, CA
Don’s Big Picture Ministries, Inc.,
South Chicago Heights, IL
Education for Alternative Economics,
Philadelphia, PA
Eisenhower Durr Ministries, Inc.,
Magee, MS
Epsilon Education Foundation,
Washington, DC
Ethnographic and Environmental Science
Institute, Berkeley, CA
Experience G.R.A.C.E. Foundation,
Plymouth, MN
Family Options Resource Center,
Laguna Beach, CA
Family Restoration Centers,
Los Angeles, CA
Film Source, Inc., Bethesda, MD
Fort Rucker Community Foundation,
Fort Rucker, AL
Fowler Middle School, Tigard, OR
Franklin H E L P Center, Inc.,
Hawthorne, FL
Franklin-Southampton Literacy Council,
Franklin, VA
Friends of White Park Trust,
Concord, NH
Full Armor Ministries, Inc., Eveleth, MN
Georgia Somali Community, Inc.,
Stone Mountain, GA
Gillis Benevolent Tr, Waycross, GA
Grant Elementary PTA 10-9-95,
Tacoma, WA
Greccio-Mountain Knolls Housing, Inc.,
Colorado Springs, CO
Green Mountain Coffee Roasters
Foundation, Waterbury, VT
Happy Organization, New York, NY
Health Care Education Institute, Inc.,
Columbia, MD
Helping Hands of Cleveland, Inc.,
Cleveland, OH
Hill Top Personal Care Home, Inc.,
Decatur, GA
Holley Martlew Archaeological
Foundation, Philadelphia, Pa
Hosanna in the Highest, Inc.,
Charleston, SC
Ighodaro Foundation, Bern, Switzerland
Imagination Foundation, Mill Valley, CA
Institute for Community Development
and Transition, Inc., McPherson, KS
J. Shammah International Foundation,
San Jose, CA
Jewish Registry, Inc., Riverdale, NY
John J. Wagner Ministries, Inc.,
Cooper City, FL
Kan Research Institute, Corrales, NM
Kathedral Community Development,
Inc., Tampa, FL
Kiddy’s Little Den, Lake Charles, LA
Kingfisher Flat Foundation,
Santa Cruz, CA
La Mesita Foundation, Inc., Meza, AZ
Lasco Foundation, Inc., Tacoma, WA
Leadership Paradigms, Inc.,
Rochester Hills, MI
Legal Services for the Elderly, Inc.,
New York, NY
Life Skills Learning Center of
Woodland, Inc., Woodland, CA
Lone Peak Institute, Orem, UT
Louis Lotstein Library Fund, Inc.,
Stamford, CT
Louisville Association of Music
Performers, Inc., Louisville, KY
Love Outreach Training Center,
Incorporated, Morris, IL
McCrary Economic Development, Inc.,
Belle Glade, FL
Mel Farr Scholarship Foundation,
Oak Park, MI
Mid-Michigan Cooperating Educational
Fund, East Lansing, MI
Model-As, Inc., Palm Beach, FL
Mother of the Year, Dallas, TX
Multidimensional Lifespan Institute,
Providence, RI
Muslim Youth & Young Adult
Organization, Inc., Omaha, NE
Mustard Seed Korean Community
Service Center, Inc.,
Palisades Park, NJ
MWP Funds, Farmington Hills, MI
NA Keiki Hoa Hanau, Mililani, HI
National Center for the Performing Arts,
Compton, CA
National Charitable Partners, Inc.,
Washington, DC
National Issues Forum Institute,
Dayton, OH
National Network for Women in Prison,
San Francisco, CA
Neighbors United, Inc., River Beach, FL
New Life Transformation Christian
Homes, Los Angeles, CA
New St. Paul Community Outreach
Development, Inc., Cincinnati, OH
New Visions Social & Clinical Services,
Inc., Milwaukee, WI
Newport Municipal Charitable
Improvement Fund, Inc., Newport, RI
Normanstone Foundation,
Washington, DC
Nosotros Political Leadership and
Educational Institute,
Salt Lake City, UT
Ocular HIV Study Group, Inc.,
New York, NY
Old Dominion Telecine Productions,
Inc., Arlington, VA
One Billion in One, Inc.,
Missouri City, TX
Operation Outreach, Detroit, MI
Operation Shield, Inc., Fords, NJ
Orange County Deaf Equal Access
Foundation, Inc., Los Angeles, CA
Our Happy Homes, Inc., Houston, TX
Panhandle Land Conservancy, Inc.,
Cornwall, NY
Parsons Community Service Fund, Inc.,
Parsons, KS
Phi Chapter of Tau Kappa Epsilon
Educational Foundation, Inc.,
Columbus, NE
Phifer Adolescent Treatment Center,
San Leandro, CA
2002–10 I.R.B.622March 11, 2002

Phoenix Housing Corporation,
Washington, DC
Piedmont Housing Solutions
Corporation, York, SC
Presland, Inc., Grass Valley, CA
Quality AFC Home, Inc.,
Pontiac, MI
RAQC Clean Air Fund, Denver, CO
Reach One Teach One of America,
Tuskegee, AL
Reaching Out Ministries, Inc.,
Fayetteville, NC
Recovery King Sanctuary of God,
Philadelphia, PA
Restore to Hope, Bloomington, CA
Robert Thomas Affordable Housing
Corporation, Lorain, OH
Rose Park Community Council,
Salt Lake City, UT
Rotary Club of Winters Community
Foundation, Winters, CA
San Francisco Episcopal High School,
Inc., San Francisco, CA
Science and Spirit Resources, Inc.,
Geneva, IL
Seed the World, Inc., Grand Rapids, MI
Sheltering A Nation II, Inc., Austin, TX
Sheridan Place 1 Tenant Council,
Detroit, MI
Sierra Community Access Television,
Inc., Placerville, CA
Signature Ministries, Inc., Dallas, TX
Sola Scripta Project, La Quinta, CA
Southern California BIA Educational
Foundation, Diamond Bar, CA
St. Paul Economic Development, Inc.,
Riviera Beach, FL
Stand By Me, Inc., Waterbury, CT
Statistical Patient Input, Inc.,
Norfolk, CT
Stephanie Silverman Dance Fund,
New York, NY
Student Scientific Discovery Foundation,
Chicago, IL
SVC Excel Housing Development Fund
Corp., New York, NY
Synergy Works, Inc., Stone Ridge, NY
Talent Alliance Charitable Foundation,
Morristown, NJ
Tallahassee Area FPA, Inc.,
Tallahassee, FL
Tau Delta Phi Scholarship Fund, Inc.,
Northfield, IL
Teens in Touch, Clarksville, TN
Tender Care Guest Home, Perris, CA
Three Parks Foundation, Seattle, WA
Trade Policy Institute, Burke, VA
Tri-County GLAD, Los Angeles, CA
Unilife Mission, Los Angeles, CA
United Men of Hollandale,
Hollandale, MS
United States Wittenberg Foundation,
Edina, MN
Urban Development & Technology
Center, Chicago, IL
Vietvets Family Project, Mill Valley, CA
Visions for Human Development,
Chicago, IL
Walnut Street Music Festival,
Springfield, MO
Welcome Home Ministries, Inc.,
Jacksonville, FL
West 49th, Inc., Rumley, MI
West Bend Clinic Foundation, Inc.,
West Bend, WI
Western Massachusetts Veterans of
Color, Inc., Springfield, MA
Westside Track Club, Inc.,
Louisville, KY
White Castle Economic Development
Corporation, White Castle, LA
Wilson Family Ballfield Foundation,
Gloucester, MA
World Orthopedic Research and
Development Foundation,
Scottsdale, AZ
Youth Empowerment Services,
Los Angeles, CA
If an organization listed above submits
information that warrants the renewal of
its classification as a public charity or as
a private operating foundation, the Inter-
nal Revenue Service will issue a ruling or
determination letter with the revised clas-
sification as to foundation status. Grant-
ors and contributors may thereafter rely
upon such ruling or determination letter
as provided in section 1.509(a)–7ofthe
Income Tax Regulations. It is not the
practice of the Service to announce such
revised classification of foundation status
in the Internal Revenue Bulletin.
March 11, 20026232002–10 I.R.B.

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 describe the
effect:
Amplifieddescribes a situation where
no change is being made in a prior pub-
lished position, but the prior position is
being extended to apply to a variation of
the fact situation set forth therein. Thus, if
an earlier ruling held that a principle
applied to A, and the new ruling holds
that the same principle also applies to B,
the earlier ruling is amplified. (Compare
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 essen-
tial 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 deter-
minative with respect to future transac-
tions. This term is most commonly used
in a ruling that lists previously published
rulings that are obsoleted because of
changes in law or regulations. A ruling
may also be obsoleted because the sub-
stance has been included in regulations
subsequently adopted.
Revokeddescribes situations where the
position in the previously published rul-
ing 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 previously 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,modified
andsupersededdescribes a situation
where the substance of a previously pub-
lished ruling is being changed in part and
is continued without change in part and it
is desired to restate the valid portion of
the previously published ruling in a new
ruling that is self contained. In this case,
the previously published ruling is first
modified and then, as modified, is super-
seded.
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 rul-
ings 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 Contributions 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.—Intemal 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.
2002–10 I.R.B.iMarch 11, 2002

Numerical Finding List
1
Bulletins 2002–1 through 2002–9
Announcements:
2002–1, 2002–2 I.R.B.304
2002–2, 2002–2 I.R.B.304
2002–3, 2002–2 I.R.B.305
2002–4, 2002–2 I.R.B.306
2002–5, 2002–4 I.R.B.420
2002–6, 2002–5 I.R.B.458
2002–7, 2002–5 I.R.B.459
2002–8, 2002–6 I.R.B.494
2002–9, 2002–7 I.R.B.536
2002–10, 2002–7 I.R.B.539
2002–11, 2002–6 I.R.B.494
2002–12, 2002–8 I.R.B.553
2002–13, 2002–7 I.R.B.540
2002–14, 2002–7 I.R.B.540
2002–15, 2002–7 I.R.B.540
2002–16, 2002–7 I.R.B.541
2002–17, 2002–8 I.R.B.561
2002–19, 2002–8 I.R.B.561
2002–20, 2002–8 I.R.B.561
2002–21, 2002–8 I.R.B.562
2002–22, 2002–8 I.R.B.562
2002–23, 2002–8 I.R.B.563
2002–24, 2002–9 I.R.B.606
Notices:
2002–1, 2002–2 I.R.B.283
2002–2, 2002–2 I.R.B.285
2002–3, 2002–2 I.R.B.289
2002–4, 2002–2 I.R.B.298
2002–5, 2002–3 I.R.B.320
2002–6, 2002–3 I.R.B.326
2002–7, 2002–6 I.R.B.489
2002–8, 2002–4 I.R.B.398
2002–9, 2002–5 I.R.B.450
2002–10, 2002–6 I.R.B.490
2002–11, 2002–7 I.R.B.526
2002–12, 2002–7 I.R.B.526
2002–13, 2002–8 I.R.B.547
2002–14, 2002–8 I.R.B.548
2002–15, 2002–8 I.R.B.548
2002–16, 2002–9 I.R.B.567
2002–17, 2002–9 I.R.B.567
Proposed Regulations:
REG–209135–88, 2002–4 I.R.B.418
REG–209114–90, 2002–9 I.R.B.576
REG–107100–00, 2002–7 I.R.B.529
REG–105344–01, 2002–2 I.R.B.302
REG–112991–01, 2002–4 I.R.B.404
REG–115054–01, 2002–7 I.R.B.530
REG–119436–01, 2002–3 I.R.B.376
REG–120135–01, 2002–8 I.R.B.552
REG–125450–01, 2002–5 I.R.B.457
REG–125626–01, 2002–9 I.R.B.604
REG–142299–01, 2002–4 I.R.B.418
REG–159079–01, 2002–6 I.R.B.493
Revenue Procedures:
2002–1, 2002–1 I.R.B.1
2002–2, 2002–1 I.R.B.82
2002–3, 2002–1 I.R.B.117
2002–4, 2002–1 I.R.B.127
2002–5, 2002–1 I.R.B.173
2002–6, 2002–1 I.R.B.203
2002–7, 2002–1 I.R.B.249
2002–8, 2002–1 I.R.B.252
2002–9, 2002–3 I.R.B.327
2002–10, 2002–4 I.R.B.400
2002–11, 2002–7 I.R.B.526
2002–12, 2002–3 I.R.B.374
2002–13, 2002–8 I.R.B.549
2002–14, 2002–5 I.R.B.450
2002–15, 2002–6 I.R.B.490
2002–16, 2002–9 I.R.B.572
Revenue Rulings:
2002–1, 2002–2 I.R.B.268
2002–2, 2002–2 I.R.B.271
2002–3, 2002–3 I.R.B.316
2002–4, 2002–4 I.R.B.389
2002–5, 2002–6 I.R.B.461
2002–6, 2002–6 I.R.B.460
2002–7, 2002–8 I.R.B.543
2002–8, 2002–9 I.R.B.564
Treasury Decisions:
8968, 2002–2 I.R.B.274
8969, 2002–2 I.R.B.276
8970, 2002–2 I.R.B.281
8971, 2002–3 I.R.B.308
8972, 2002–5 I.R.B.443
8973, 2002–4 I.R.B.391
8974, 2002–3 I.R.B.318
8975, 2002–4 I.R.B.379
8976, 2002–5 I.R.B.421
8977, 2002–6 I.R.B.463
8978, 2002–7 I.R.B.500
8979, 2002–6 I.R.B.466
8980, 2002–6 I.R.B.477
8981, 2002–7 I.R.B.496
8982, 2002–8 I.R.B.544
8983, 2002–9 I.R.B.565
1
A cumulative list of all revenue rulings, revenue
procedures, Treasury decisions, etc., published in
Internal Revenue Bulletins 2001–27 through 2001–53 is
in Internal Revenue Bulletin 2002–1, dated January 7, 2002.
March 11, 2002ii2002–10 I.R.B.

Finding List of Current Actions
on Previously Published Items
2
Bulletins 2002–1 through 2002–9
Notices:
98–43
Modified and superseded by
Notice 2002–5, 2002–3 I.R.B.320
2001–10
Revoked by
Notice 2002–8, 2002–4 I.R.B.398
2000–11
Obsoleted by
Notice 2002–3, 2002–2 I.R.B.289
2001–61
Supplemented by
Notice 2002–15, 2002–8 I.R.B.548
2001–68
Supplemented by
Notice 2002–15, 2002–8 I.R.B.548
Proposed Regulations:
REG–209135–88
Corrected by
Ann. 2002–15, 2002–7 I.R.B.540
REG–105344–01
Corrected by
Ann. 2002–7, 2002–5 I.R.B.459
REG–142299–01
Corrected by
Ann. 2002–15, 2002–7 I.R.B.540
Revenue Procedures:
84–37
Modified by
Rev. Proc. 2002–1, 2002–1 I.R.B.1
84–57
Obsoleted by
T.D. 8976, 2002–5 I.R.B.421
87–50
Modified by
Rev. Proc. 2002–10, 2002–4 I.R.B.400
96–13
Modified by
Rev. Proc. 2002–1, 2002–1 I.R.B.1
98–49
Obsoleted by
T.D. 8976, 2002–5 I.R.B.421
99–49
Modified and superseded by
Rev. Proc. 2002–9, 2002–3 I.R.B.327
Revenue Procedures:—Continued
2002–6
Modified by
Notice 2002–1, 2002–2 I.R.B.283
2002–8
Modified by
Notice 2002–1, 2002–2 I.R.B.283
2002–9
Modified and clarified by
Ann. 2002–17, 2002–8 I.R.B.561
2000–20
Modified by
Rev. Proc. 2002–6, 2002–1 I.R.B.203
2001–1
Superseded by
Rev. Proc. 2002–1, 2002–1 I.R.B.1
2001–2
Superseded by
Rev. Proc. 2002–2, 2002–1 I.R.B.82
2001–3
Superseded by
Rev. Proc. 2002–3, 2002–1 I.R.B.117
2001–4
Superseded by
Rev. Proc. 2002–4, 2002–1 I.R.B.127
2001–5
Superseded by
Rev. Proc. 2002–5, 2002–1 I.R.B.173
2001–6
Superseded by
Rev. Proc. 2002–6, 2002–1 I.R.B.203
2001–7
Superseded by
Rev. Proc. 2002–7, 2002–1 I.R.B.249
2001–8
Superseded by
Rev. Proc. 2002–8, 2002–1 I.R.B.252
2001–13
Corrected by
Ann. 2002–5, 2002–4 I.R.B.420
2001–36
Superseded by
Rev. Proc. 2002–3, 2002–1 I.R.B.117
2001–41
Superseded by
Rev. Proc. 2002–2, 2002–1 I.R.B.82
2001–51
Superseded by
Rev. Proc. 2002–3, 2002–1 I.R.B.117
Revenue Rulings:
55–747
Revoked by
Notice 2002–8, 2002–4 I.R.B.398
61–146
Distinguished by
Rev. Rul. 2002–3, 2002–3 I.R.B.316
64–328
Modified by
Notice 2002–8, 2002–4 I.R.B.398
66–110
Modified by
Notice 2002–8, 2002–4 I.R.B.398
89–29
Obsoleted by
T.D. 8976, 2002–5 I.R.B.421
2002–7
Corrected by
Ann. 2002–13, 2002–7 I.R.B.540
Treasury Decisions:
8971
Corrected by
Ann. 2002–20, 2002–8 I.R.B.561
8972
Corrected by
Ann. 2002–23, 2002–8 I.R.B.563
8973
Corrected by
Ann. 2002–14, 2002–7 I.R.B.540
8975
Corrected by
Ann. 2002–21, 2002–8 I.R.B.562
8976
Corrected by
Ann. 2002–21, 2002–8 I.R.B.562
2
A cumulative list of current actions on previously published
items in Internal Revenue Bulletins 2001–27 through 2001–53 is
in Internal Revenue Bulletin 2002–1, dated January 7, 2002.
2002–10 I.R.B.iiiMarch 11, 2002