Internal Revenue Bulletin 2003-29 (PDF rendition): IRS Announcements

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.

Bulletin No. 2003-29
July 21, 2003
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.
INCOME TAX
Rev. Rul. 2003–74, page 77.
Section 355 management ruling.Where two different busi-
nesses operate within the same corporate group, and senior
management wishes to focus on only one, the separation of the
businesses to enable the management of each to concentrate
on its own business satisfies the business purpose requirement
of section 1.355–2(b) of the regulations.
Rev. Rul. 2003–75, page 79.
Section 355 capital allocation ruling.Where two different
businesses within the same corporate group are competing for
limited capital, the separation of these businesses to resolve
the capital allocation problem satisfies the business purpose
requirement of section 1.355–2(b) of the regulations.
Rev. Rul. 2003–77, page 75.
Community service facility.This ruling describes the type of
facility that qualifies as a community service facility under sec-
tion 42(d)(4)(C)(iii) of the Code.
Rev. Rul. 2003–78, page 76.
Advance refunding bonds.This ruling concludes that tax-ex-
empt bonds are advance refunding bonds within the meaning
of section 149(d)(5) of the Code if proceeds of the bonds are
loaned to a governmental unit (the conduit borrower) that uses
the proceeds to redeem an outstanding tax-exempt obligation
on which the conduit borrower is the obligor (the prior obliga-
tion)morethan90daysaftertheissuedateofthebonds.
Rev. Rul. 2003–79, page 80.
Section 355 reverse Morris trust.The acquisition by an un-
related corporation of all the assets of a newly formed con-
trolled corporation following distribution of the controlled cor-
porationÊs stock under section 355 of the Code will satisfy
the "substantially all" requirement of section 368(a)(1)(C) even
though the acquired assets represent only half of the assets
held by the distributing corporation before it formed the con-
trolled corporation.
Rev. Rul. 2003–80, page 83.
Statute of limitations, bankruptcy.This ruling explains the ef-
fect of a bankruptcy on the running of the statute of limitations
on assessment set forth in section 6501 of the Code. The rul-
ing illustrates that when the IRS issues a Notice of Deficiency
less than 90 days before the taxpayer files a bankruptcy peti-
tion, the same day the taxpayer files a bankruptcy petition, or
after the taxpayer files a bankruptcy petition, and before the
termination of the automatic stay imposed by the bankruptcy,
the assessment period is suspended not only by the 60-day
period provided by section 6503(a), but also by the additional
60-day period provided by section 6213(f).
Rev. Rul. 2003–87, page 82.
LIFO; price indexes; department stores.The May 2003 Bu-
reau of Labor Statistics price indexes are accepted for use by
department stores employing the retail inventory and last-in,
first-out inventory methods for valuing inventories for tax years
ended on, or with reference to, May 31, 2003.
Announcement 2003–47, page 124.
This announcement notifies the public of changes to Form
8873,Extraterritorial Income Exclusion, and its Instructions.
This announcement also provides the reasons for these
changes.
(Continued on the next page)
Finding Lists begin on page ii.

ADMINISTRATIVE
Notice 2003–45, page 86.
Depreciation, mid-quarter convention relief.This notice
announces that a taxpayer qualifying under either Notice
2001–70 or Notice 2001–74 who filed a timely return for the
taxable year that includes September 11, 2001, but failed to
make the election provided under Notice 2001–70 or Notice
2001–74, is granted an automatic extension of time until
December 31, 2003, to amend its tax return for the taxable
year that includes September 11, 2001, and any subsequent
taxable years, in order to make the election under Notice
2001–70 or Notice 2001–74 and reflect any necessary
adjustments resulting from the election. Notices 2001–70
and 2001–74 amplified.
Rev. Proc. 2003–48, page 86.
Section 355; update of section 355 checklist questionnaire.
The Service will no longer determine whether a distribution of
controlled corporation stock (1) satisfies the business purpose
requirement, (2) is used principally as a device for the distribu-
tion of earnings and profits, or (3) is part of a plan under section
355(e) of the Code. Taxpayers will be required to address these
factual issues by submitting appropriate representations. Rev.
Proc. 96–30 modified and amplified, and Rev. Proc. 2003–3
modified.
Rev. Proc. 2003–49, page 89.
This procedure corrects errors found in Rev. Proc. 2003–15,
2003–4 I.R.B. 321. This procedure provides issuers of quali-
fied mortgage bonds, as defined in section 143(a) of the Code,
and issuers of mortgage credit certificates, as defined in sec-
tion 25(c), with a list of qualified census tracts for each state
and the District of Columbia. The qualified census tracts are
based on data from the 2000 census. Rev. Proc. 2003–15
modified and superseded.
Rev. Proc. 2003–50, page 119.
Additional first year depreciation.This procedure provides
additional time for any taxpayer that timely filed its federal tax
return for the taxable year that included September 11, 2001,
to deduct, or elect not to deduct, the 30-percent additional first
year depreciation deduction for qualified property and qualified
New York Liberty Zone property placed in service after Septem-
ber 11, 2001, during the taxable year that included September
11, 2001. This procedure also permits an automatic extension
of time to allow certain taxpayers to change their selection of
section 179 property for the taxable year that included Septem-
ber 11, 2001. Rev. Procs. 2002–9 and 2002–33 amplified
and modified.
Rev. Proc. 2003–51, page 121.
Inventories.Guidelines are provided for taxpayers and IRS per-
sonnel in making fair market value determinations for inventory
items acquired when a taxpayer purchases the assets of a busi-
ness for a lump sum or a corporation acquires the stock of an-
other corporation and makes an election pursuant to section
338 of the Code. Rev. Proc. 77–12 amplified, modified, and
superseded.
Ju
ly 21, 20032003-29 I.R.B.

The IRS Mission
Provide AmericaÊs 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. Bul-
letin contents are consolidated semiannually into Cumulative
Bulletins, which are sold on a single-copy basis.
It is the policy of the Service to publish in the Bulletin all sub-
stantive rulings necessary to promote a uniform application of
the tax laws, including all rulings that supersede, revoke, mod-
ify, or amend any of those previously published in the Bulletin.
All published rulings apply retroactively unless otherwise indi-
cated. Procedures relating solely to matters of internal man-
agement are not published; however, statements of internal
practices and procedures that affect the rights and duties of
taxpayers are published.
Revenue rulings represent the conclusions of the Service on the
application of the law to the pivotal facts stated in the revenue
ruling. In those based on positions taken in rulings to taxpayers
or technical advice to Service field offices, identifying details
and information of a confidential nature are deleted to prevent
unwarranted invasions of privacy and to comply with statutory
requirements.
Rulings and procedures reported in the Bulletin do not have the
force and effect of Treasury Department Regulations, but they
may be used as precedents. Unpublished rulings will not be
relied on, used, or cited as precedents by Service personnel in
the disposition of other cases. In applying 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, Leg-
islation 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 TreasuryÊs Office of the Assistant Sec-
retary (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.
20
03-29 I.R.B.July 21, 2003

Part I. Rulings and Decisions Under the Internal Revenue Code of 1986
Section 25.—Interest on
Certain Home Mortgages
26 CFR 1.25-3T: Qualified mortgage credit certifi-
cate.
The qualified census tracts for the states and the
District of Columbia are set forth for use in deter-
mining the portion of loans required to be placed in
targeted areas under section 143(h). See Rev. Proc.
2003-49, page 89.
Section 42.—Low Income
Housing Credit
Community service facility.This rul-
ing describes the type of facility that qual-
ifies as a community service facility under
section 42(d)(4)(C)(iii) of the Code.
Rev. Rul. 2003–77
ISSUE
Does the facility described below qual-
ify as a community service facility under
§ 42(d)(4)(C)(iii) of the Internal Revenue
Code?
FACTS
A qualified low-income buildin
g(the
Building) received a housing c
redit alloca-
tion on October 1, 2002, and was
placed in
service in 2003. The Building
is located
in a qualified census tract (
as defined in
§ 42(d)(5)(C)). A portion of
the Building
(the Facility) is used thro
ughout the year to
provide services to resid
ents of the Build-
ing as well as nonresid
ents. The Facil-
ity consists of a meet
ing room, an admin-
istrative office, a
storage room, and sev-
eral multi-purpose
rooms. The services
provided at the Fac
ility include day care,
career counseling
, literacy training, edu-
cation (includin
g tutorial services), recre-
ation, and outpat
ient clinical health care.
The services are
provided free of charge
or for a fee that
is affordable to individu-
als whose incom
e is 60 percent or less of
area median in
come (within the meaning
of § 42(g)(1)(
B)). The adjusted basis of the
property co
mprising the Facility (of a char-
acter subj
ect to the allowance for depreci-
ation and n
ot otherwise taken into account
in the adj
usted basis of the Building) does
not excee
d 10 percent of the eligible basis
of the Bu
ilding.
As required by § 42(m)(1)(A)(iii), prior
to the allocation of housing credit to the
Building, a comprehensive market study
was conducted to assess the housing needs
of the low-income individuals in the area
to be served by the Building. The study
found, among other things, that provid-
ing day care, career counseling, literacy
training, education (including tutorial ser-
vices), recreation, and outpatient clinical
health care services would be appropriate
and helpful to individuals in the area of the
Building whose income is 60 percent or
less of area median income.
LAW AND ANALYSIS
Section 42(a) provides that the amount
of the low-income housing credit deter-
mined for any taxable year in the credit pe-
riod is an amount equal to the applicable
percentage of the qualified basis of each
qualified low-income building.
Section 42(c)(1)(A) defines the qual-
ified basis of any qualified low-income
building for any taxable year as a
n amount
equal to the applicable fractio
n(asde-
fined in § 42(c)(1)(B)), determ
ined as of
the close of the taxable year, o
f the eligi-
ble basis of the building, det
ermined under
§ 42(d)(5).
Section 42(d)(1) provides th
at the el-
igible basis of a new building
is its ad-
justed basis as of the close o
fthefirsttax-
able year of the credit peri
od. Section
42(d)(4)(A) provides that
, except as pro-
vided in § 42(d)(4)(B) and
(C), the ad-
justed basis of any bu
ilding is determined
without regard to the
adjusted basis of any
property that is not
residential rental prop-
erty. Section 42(d)
(4)(B) provides that the
adjusted basis of a
ny building includes the
adjusted basis of
property (of a character
subject to the all
owance for depreciation)
used in common ar
eas or provided as com-
parable ameniti
es to all residential rental
units in the bui
lding.
Section 42(d)(4
)(C)(i) provides that
the adjusted ba
sis of any building located
in a qualified c
ensus tract is determined
by taking int
o account the adjusted ba-
sis of prope
rty (of a character subject
to the allow
ance for depreciation and
not otherw
ise taken into account) used
throughou
t the taxable year in providing
any commu
nity service facility. Section
42(d)(5)(C)(ii)(I) defines the term “quali-
fied census tract” as any census tract which
is designated by the Secretary of Housing
and Urban Development (HUD) and, for
the most recent year for which census data
are available on household income in the
tract, either in which 50 percent or more
of the households have an income which
is less than 60 percent of the area median
gross income for the year or which has
a poverty rate of at least 25 percent. See
http://www.huduser.org/datasets/qct.html
for census tracts designated by the Secre-
tary of HUD.
Section 42(d)(4)(C)(ii) provides that
the increase in the adjusted basis of any
building which is taken into account by
reason of § 42(d)(4)(C)(i) may not ex-
ceed 10 percent of the eligible basis of
the qualified low-income housing projec
t
of which it is a part. For this purpose,
§ 42(d)(4)(C)(ii) provides that all co
m-
munity service facilities which are pa
rt of
the same qualified low-income housin
g
project are treated as one facility.
Section 42(d)(4)(C)(iii) prov
ides that
the term “community service fa
cility”
means any facility designed t
oservepri-
marily individuals whose inc
ome is 60
percent or less of area media
nincome
(within the meaning of § 42(
g)(1)(B)).
Section 42(m)(1)(A)(iii) p
rovides that
the housing credit dollar a
mount with re-
spect to any building will b
e zero unless a
comprehensive market stu
dy of the hous-
ing needs of low-income i
ndividuals in the
area to be served by the pr
oject is con-
ducted before the cr
edit allocation is made
and at the developer
’s expense by a disin-
terested party who
is approved by the hous-
ing credit agency
.
Under § 42(d)(4)(C
)(iii), a community
service facility
must be designed to serve
primarily indivi
duals whose income is 60
percent or less o
f area median income.
This requiremen
t will be satisfied if the fol-
lowing conditi
ons are met. First, the facil-
ity must be used
to provide services that
will improve t
he quality of life for commu-
nity residen
ts. Second, the taxpayer must
demonstrat
e that the services provided at
the facili
ty will be appropriate and help-
ful to indi
viduals in the area of the project
whose inc
ome is 60 percent or less of area
median in
come. This may, for example, be
demonst
ratedinthemarketstudyrequired
20
03-29 I.R.B.
75Ju
ly 21, 2003

to be conducted under § 42(m)(1)(A)(iii),
or another similar study. Third, the facility
must be located on the same tract of land
as one of the buildings that comprises the
qualified low-income housing project. Fi-
nally, if fees are charged for services pro-
vided, they must be affordable to individ-
uals whose income is 60 percent or less of
area median income.
Under the facts presented, the Facility
is designed to serve primarily individuals
whose income is 60 percent or less of area
median income for the following reasons:
(1) the services provided at the Facil-
ity—day care, career counseling, literacy
training, education (including tutorial ser-
vices), recreation, and outpatient clinical
health care—are services that will help im-
prove the quality of life for community res-
idents; (2) the market study required to be
conducted under § 42(m)(1)(A)(iii) found
that the services provided at the Facility
would be appropriate and helpful to indi-
viduals in the area of the Building whose
income is 60 percent or less of area median
income; (3) the Facility is located within
the Building; and (4) the services provided
at the Facility are affordable to individuals
whose income is 60 percent or less of area
median income.
HOLDING
The Facility qualifies as a community
service facility under § 42(d)(4)(C)(iii).
Because the other requirements set forth in
§ 42(d)(4)(C) are met, the adjusted basis of
the Building will be determined by taking
into account the adjusted basis of the Fa-
cility.
DRAFTING INFORMATION
The principal author of this revenue
ruling is Gregory N. Doran of the Office
of Associate Chief Counsel (Passthroughs
and Special Industries). For further in-
formation regarding this revenue ruling,
contact Mr. Doran at (202) 622–3040 (not
a toll-free call).
Section 103.—Interest on
Certain Home Mortgages
26 CFR 1.103-1: Interest upon obligations of a state,
territory, etc.
The qualified census tracts for the states and the
District of Columbia are set forth for use in deter-
mining the portion of loans required to be placed in
targeted areas under section 143(h). See Rev. Proc.
2003-49, page 89.
Section 143.—Mortgage
Revenue Bonds: Qualified
Mortgage Bond and Qualified
Veterens’ Mortgage Bond
26 CFR 6a.103A-2: Qualified mortgage bond.
The qualified census tracts for the states and the
District of Columbia are set forth for use in deter-
mining the portion of loans required to be placed in
targeted areas under section 143(h). See Rev. Proc.
2003-49, page 89.
Section 149(d).—Advance
Refundings
Advance refunding bonds.This rul-
ing concludes that tax-exempt bonds are
advance refunding bonds within the mean-
ing of section 149(d)(5) of the Code if pro-
ceeds of the bonds are loaned to a gov-
ernmental unit (the conduit borrower) that
uses the proceeds to redeem an outstanding
tax-exempt obligation on which the con-
duit borrower is the obligor (the prior obli-
gation) more than 90 days after the issue
date of the bonds.
Rev. Rul. 2003–78
ISSUE
Whether bonds are advance refunding
bonds within the meaning of § 149(d)(5)
of the Internal Revenue Code if the issuer
loans proceeds of the bonds to a govern-
mentalunit,andwithin90daysofthedate
the loan is made, but more than 90 days
after the issue date of the bonds, the gov-
ernmental unit uses the proceeds to redeem
outstanding tax-exempt obligations of the
governmental unit.
FACTS
Issuer X, a governmental unit, issues
bonds (Bonds) to make loans to other
governmental units to finance or refinance
governmental projects of those units. X
loans a portion of the proceeds of the
Bonds to a governmental unit (the Bor-
rower) that uses the proceeds to redeem
tax-exempt bonds (Prior Bonds) issued by
the Borrower. The Borrower is the obligor
of the Prior Bonds within the meaning of
§ 1.150–1(d)(2)(ii)(B) of the Income Tax
Regulations. The redemption of the Prior
Bonds occurs within 90 days of the date
theloantotheBorrowerismade,butmore
than 90 days after the issue date of the
Bonds.
LAW AND ANALYSIS
Section 103(a) provides that, except as
otherwise provided, gross income does not
include interest on any State or local bond.
Section 103(b)(3) provides that this exclu-
sion does not apply to any bond unless the
bond meets the applicable requirements of
§ 149.
Section 149(d)(1) provides that nothing
in § 103(a) or any other provision of the
law shall be construed to provide an ex-
emption from federal income tax for in-
terest on any bond issued as part of an is-
sue described in paragraph (2), (3), or (4)
of § 149(d). Section 149(d)(3) provides,
in part, that an issue is described in para-
graph (3) of § 149(d) if any bond issued as
part of the issue is issued to advance refund
a bond, unless the refunding bond is only
(a) the first advance refunding of the orig-
inal bond if the original bond is issued af-
ter 1985, or (b) the first or second advance
refunding of the original bond if the orig-
inal bond is issued before 1986. Section
149(d)(5) provides that a bond is treated as
issued to advance refund another bond if it
is issued more than 90 days before the re-
demption of the refunded bond.See also
§ 1.150–1(d)(3), (d)(4).
Pursuant to § 1.150–1(a)(1), except
as otherwise provided, the definitions in
§ 1.150–1 apply for all purposes of §§ 103
and 141 through 150.
Section 1.150–1(d)(1) provides that a
refunding issue means an issue of obliga-
tions the proceeds of which are used to pay
principal, interest, or redemption price on
another issue, including issuance costs, ac-
crued interest, capitalized interest on the
refunding issue, a reserve or replacement
fund, or similar costs, if any, properly al-
locable to that refunding issue. An issue
is not a refunding issue, however, to the
Ju
ly 21, 2003
7620
03-29 I.R.B.

extent that the obligor of one issue is nei-
ther the obligor of the other issue nor a re-
lated party with respect to the obligor of
the other issue. § 1.150–1(d)(2)(ii)(A).
In general, § 1.150–1(d)(2)(ii)(B) pro-
vides that the obligor of an issue means
the actual issuer of the issue, except that
the obligor of the portion of an issue
properly allocable to an investment in a
purpose investment means the conduit
borrower under that purpose investment.
Section 1.150–1(b) defines the term “con-
duit borrower” as the obligor on a purpose
investment (as defined in § 1.148–1). For
example, if an issuer invests proceeds in
a purpose investment in the form of a
loan, lease, installment sale obligation, or
similar obligation to another entity and
the obligor uses the proceeds to carry out
the governmental purpose of the issue, the
obligor is a conduit borrower. The obligor
of an issue used to finance qualified mort-
gage loans, qualified student loans, or
similar program investments (as defined in
§ 1.148–1) does not include the ultimate
recipient of the loan (e.g., the homeowner,
the student). § 1.150–1(d)(2)(ii)(B).
Section 1.148–1(b) defines the terms
“purpose investment” and “program in-
vestment”. A purpose investment is an
investment that is acquired to carry out the
governmental purpose of an issue. A pro-
gram investment is a purpose investment
that is part of a governmental program
in which, among other requirements, at
least 95 percent (90 percent for qualified
student loans under § 144(b)(1)(A)) of the
cost of the purpose investments acquired
under the program represents one or more
loans to a substantial number of persons
representing the general public, states or
political subdivisions, 501(c)(3) organiza-
tions, persons who provide housing and
related facilities, or any combination of
the foregoing.
Section 1.150–1(b) defines the issue
date of an issue as the first date on which
the issuer receives the purchase price in
exchange for delivery of the evidence
of indebtedness representing any bond
included in the issue. In reference to a
bond, the issue date is the date on which
the issuer receives the purchase price in
exchange for that bond. In no event is
the issue date earlier than the first day
on which interest begins to accrue on
the bond or bonds for federal income tax
purposes.
The proceeds of the Bonds loaned
to the Borrower are used to pay prin-
cipal, interest, or redemption price on
another issue, the Prior Bonds. Thus,
under the general definition of refunding
issue contained in § 1.150–1(d)(1), the
portion of the Bonds allocable to the loan
to the Borrower constitutes a refunding
issue. There is no change in obligor under
§ 1.150–1(d)(2)(ii) to alter this conclusion.
The loan to the Borrower from proceeds of
the Bonds is a purpose investment, and it is
not a “similar program investment” within
the meaning of § 1.150–1(d)(2)(ii)(B).
Although the loans of proceeds of the
Bonds may be program investments, loans
to governmental units to finance or re-
finance their governmental projects are
not similar to qualified mortgage loans
or qualified student loans for purposes of
§ 1.150–1(d)(2)(ii)(B) because they are
not loans made to natural persons not en-
gaged in a trade or business (with respect
to the loans). Thus, the Borrower is an
obligor of the Bonds. The Borrower is also
the obligor of the Prior Bonds. Accord-
ingly, the portion of the Bonds allocable
to the loan to the Borrower constitutes a
refunding issue. Because the redemption
date of the Prior Bonds is more than 90
days after the issue date of the Bonds, the
portion of the Bonds allocable to the loan
to the Borrower are advance refunding
bonds within the meaning of § 149(d)(5).
HOLDING
The portion of the Bonds allocable
to the loan to the Borrower are advance
refunding bonds within the meaning of
§ 149(d)(5) if X loans proceeds of the
Bonds to the Borrower, and within 90 days
of the date the loan is made, but more than
90 days after the issue date of the Bonds,
the Borrower uses the proceeds to redeem
the Prior Bonds.
DRAFTING INFORMATION
The principal authors of this revenue
ruling are David White and Rebecca
Harrigal of the Office of the Associate
Chief Counsel (Tax-Exempt and Govern-
ment Entities), Internal Revenue Service.
For further information regarding this rev-
enue ruling, contact David White at (202)
622–3980 (not a toll free call).
Section 168.—Accelerated
Cost Recovery System
How does a taxpayer that timely filed its federal
tax return for the taxable year that included Septem-
ber 11, 2001, deduct, or elect not to deduct, the ad-
ditional first year depreciation provided by section
168(k) of the Internal Revenue Code for qualified
property? See Rev. Proc. 2003-50, page 119.
Section 179.—Election to
Expense Certain Depreciable
Business Assets
26 CFR 1.179-5: Time and manner of making elec-
tion.
How does a taxpayer that timely filed its federal
tax return for the taxable year that included Septem-
ber 11, 2001, claim the increased section 179 ex-
pense deduction for qualified New York Liberty Zone
property, or change its selection of section 179 prop-
erty for the taxable year that included September 11,
2001? See Rev. Proc. 2003-50, page 119.
Section 338.—Certain Stock
Purchases Treated as Asset
Acquisitions
26 CFR 1.338-1: General principles: status of old
target and new target.
What guidelines are provided for use by taxpayers
and IRS personnel in making fair market value deter-
minations for inventory items acquired when a tax-
payer purchases the assets of a business for a lump
sum or a corporation acquires the stock of another
corporation and makes an election under section 338
of the Code. See Rev. Proc. 2003-51, page 121.
Section 355.—Distribution
of Stock and Securities of a
Controlled Corporation
26 CFR 1.355–2: Business purpose.
Section 355 management ruling.
Where two different businesses operate
within the same corporate group, and se-
nior management wishes to focus on only
one, the separation of the businesses to
enable the management of each to con-
centrate on its own business satisfies the
business purpose requirement of section
1.355–2(b) of the regulations.
20
03-29 I.R.B.
77Ju
ly 21, 2003

Rev. Rul. 2003–74
ISSUE
Whether, in the situation described be-
low, the distribution of the stock of a con-
trolled corporation by a distributing corpo-
ration to enable the management of each
corporation to concentrate on its own busi-
ness satisfies the business purpose require-
ment of § 1.355–2(b) of the Income Tax
Regulations.
FACTS
Distributing is a publicly traded corpo-
ration that conducts a software technology
business. Controlled, a wholly owned sub-
sidiary of Distributing, conducts a paper
products business. One shareholder, who
does not actively participate in the man-
agement or operations of Distributing or
Controlled, owns eight percent of the out-
standing Distributing stock.
The software business develops and
markets software for various applications.
It is a high-growth business that depends
for its success on innovation and acquisi-
tions of related businesses. It is the busi-
ness around which Distributing originally
developed and remains the core operation.
The paper products business manufac-
tures and distributes paper products. It
was acquired five years ago to support
the software business and is significantly
smaller than the software business. The
paper products business grows at a slow
to moderate rate largely through increased
efficiencies in productivity.
Distributing's senior management de-
votes more of its time to the software
business because it believes that business
presents better opportunities for growth.
Indeed, it would like to concentrate solely
on the software business but is prevented
from doing so by the need to service the
paper products business. The management
of the paper products business, on the other
hand, believes that the disproportionate
attention paid the software business de-
prives the paper products business of the
management resources needed for its full
development.
To enable Distributing's senior man-
agement to concentrate on the software
business and the management of the paper
products business to concentrate on its
own operation, Distributing distributes the
Controlled stock to Distributing's share-
holders,pro rata. Because Distributing's
senior management would have contin-
ued responsibility for the paper products
business as long as Distributing owns a
controlling interest in the stock of the
corporation operating the paper products
business, there is no other nontaxable
transaction that would permit Distribut-
ing's senior management to concentrate
on the software business and permit the
paper products business to have a senior
management that adequately serves that
business. Distributing's directors and
senior management expect that each busi-
ness will benefit in a real and substantial
way from the separation.
Following the distribution, no officer
will serve both Distributing and Con-
trolled. However, two of Distributing's
eight directors will also serve on Con-
trolled's six-person board. Director A
will help with administrative aspects of
the transition. His term will expire after
two years, and he cannot seek reelection.
Director B is recognized as an expert in
corporate finance. His presence on the
Controlled board is intended to reassure
the financial markets by providing a sense
of continuity. His term will expire after
six years, at which time he may seek
reelection. Both directors are officers of
Distributing, but neither will be an officer
or employee of Controlled.
Apart from the issue of whether
the business purpose requirement of
§ 1.355–2(b) is satisfied, the distribution
meets all of the requirements of § 355.
LAW
Section 355 provides that if certain re-
quirements are met, a corporation may dis-
tribute stock and securities in a controlled
corporation to its shareholders and secu-
rity holders without causing the distribut-
ing corporation or the distributees to rec-
ognize gain or loss.
To qualify as a distribution described
in § 355, a distribution must, in addition
to satisfying the statutory requirements of
§ 355, satisfy certain requirements in the
regulations, including the business pur-
pose requirement. Section 1.355–2(b)(1)
provides that a distribution must be mo-
tivated, in whole or substantial part, by
one or more corporate business purposes.
A corporate business purpose is a real
and substantial non-federal tax purpose
germane to the business of the distributing
corporation, the controlled corporation,
or the affiliated group to which the dis-
tributing corporation belongs. Section
1.355–2(b)(2). The principal reason for
the business purpose requirement is to
provide nonrecognition treatment only
to distributions that are incident to read-
justments of corporate structures required
by business exigencies and that effect
only readjustments of continuing inter-
ests in property under modified corporate
forms. Section 1.355–2(b)(1). If a cor-
porate business purpose can be achieved
through a nontaxable transaction that does
not involve the distribution of stock of
a controlled corporation and that is nei-
ther impractical nor unduly expensive,
then the separation is not carried out for
that corporate business purpose. Section
1.355–2(b)(3).
ANALYSIS
The distribution of Controlled stock by
Distributing to Distributing's shareholders
will enable Distributing's senior manage-
ment to concentrate its efforts on the soft-
ware business, which it believes presents
better opportunities for growth, and al-
low the management of the paper prod-
ucts business to secure for that business
the management resources needed for its
full development. There is no other non-
taxable transaction that would permit Dis-
tributing's senior management to concen-
trate on the software business and permit
the paper products business to have a se-
nior management that adequately serves
that business, and it is expected that the
separation of the two businesses will en-
hance the success of each business in a real
and substantial way.
Although the continuing relationship
between Distributing and Controlled ev-
idenced by the two common directors
appears inconsistent with the assertion
that the software business and the paper
products business require independent
management teams, this relationship does
not conflict with the business purpose
for the separation. Director A will serve
for only a short period and will further
that purpose by aiding in the creation of
two independently administered opera-
tions. Director B will assist the separation
by calming market concerns that might
Ju
ly 21, 2003
7820
03-29 I.R.B.

otherwise adversely affect one or both
businesses. Further, the two directors
together constitute only a minority of each
board.
Hence, the distribution of Controlled
stock by Distributing to Distributing's
shareholders is motivated in whole or
substantial part by a real and substantial
non-federal tax purpose germane to the
businesses of Distributing and Controlled
and satisfies the corporate business pur-
pose requirement of § 1.355–2(b).
HOLDING
In the situation described above, the
distribution of the stock of a controlled cor-
porationbyadistributingcorporationto
enable the management of each corpora-
tion to concentrate on its own business sat-
isfies the business purpose requirement of
§ 1.355–2(b).
DRAFTING INFORMATION
The principal author of this revenue rul-
ing is Richard M. Heinecke of the Office
of Associate Chief Counsel (Corporate).
For further information regarding this rev-
enue ruling, contact Mr. Heinecke at (202)
622–7930 (not a toll-free call).
Section 355 capital allocation ruling.
Where two different businesses within
the same corporate group are competing
for limited capital, the separation of these
businesses to resolve the capital allocation
problem satisfies the business purpose
requirement of section 1.355–2(b) of the
regulations.
Rev. Rul. 2003–75
ISSUE
Whether, in the situation described
below, the distribution of the stock of
a controlled corporation to resolve a
capital allocation problem between the
distributing and controlled corporations
satisfies the business purpose requirement
of § 1.355–2(b) of the Income Tax Regu-
lations.
FACTS
Distributing is a publicly traded cor-
poration that conducts a pharmaceuticals
business. Controlled, a wholly owned sub-
sidiary of Distributing, conducts a cosmet-
ics business. One shareholder, who does
not actively participate in the management
or operations of Distributing or Controlled,
owns six percent of the outstanding Dis-
tributing stock.
The pharmaceuticals business devel-
ops, manufactures, and markets specialty
drugs. It is a high-margin business that
emphasizes rapid growth through inno-
vation. The cosmetics business develops,
manufactures, and markets cosmetics. It
is a low-margin business that grows at a
moderate rate by increasing its produc-
tivity and market share. Both businesses
require substantial capital for reinvestment
and research and development.
Distributing does all of the borrowing
for both Distributing and Controlled and
makes all decisions regarding the alloca-
tion of capital spending between the phar-
maceuticals and cosmetics businesses. Be-
cause Distributing's capital spending in re-
cent years for both the pharmaceuticals
and cosmetics businesses has outpaced in-
ternally generated cash flow from the busi-
nesses, it has had to limit total expenditures
to maintain its credit ratings. Although the
decisions reached by Distributing's senior
management regarding the allocation of
capital spending usually favor the pharma-
ceuticals business due to its higher rate of
growth and profit margin, the competition
for capital prevents both businesses from
consistently pursuing development strate-
gies that the management of each business
believes are appropriate.
To eliminate this competition for capi-
tal, Distributing distributes the Controlled
stock to Distributing's shareholders,pro
rata. Because the total capital available to
the two businesses would continue to be
limited as long as the two businesses re-
mained within the same corporate group,
there is no other nontaxable transaction
that would solve the competition problem.
It is expected that both businesses will ben-
efit from the separation, and that the cos-
metics business will benefit in a real and
substantial way as a result of increased
control over its capital spending and direct
access to the capital markets.
To facilitate the separation, Distribut-
ing and Controlled will enter into transi-
tional agreements that relate to informa-
tion technology, benefits administration,
and accounting and tax matters. Other
than the tax matters agreement, each agree-
ment will terminate after two years ab-
sent extraordinary circumstances, in which
case the affected agreement may be ex-
tended on arm's-length terms for a limited
period. Following the separation, there
will be no cross-guarantee or cross-col-
lateralization of debt between Distributing
and Controlled, and an arm's-length loan
from Distributing to Controlled for work-
ing capital will have a term of two years.
Apart from the issue of whether
the business purpose requirement of
§ 1.355–2(b) is satisfied, the distribution
meets all the requirements of § 355.
LAW
Section 355 provides that if certain re-
quirements are met, a corporation may dis-
tribute stock and securities in a controlled
corporation to its shareholders and secu-
rity holders without causing the distribut-
ing corporation or the distributees to rec-
ognize gain or loss.
To qualify as a distribution described
in § 355, a distribution must, in addition
to satisfying the statutory requirements of
§ 355, satisfy certain requirements in the
regulations, including the business pur-
pose requirement. Section 1.355–2(b)(1)
provides that a distribution must be mo-
tivated, in whole or substantial part, by
one or more corporate business purposes.
A corporate business purpose is a real
and substantial non-federal tax purpose
germane to the business of the distributing
corporation, the controlled corporation,
or the affiliated group to which the dis-
tributing corporation belongs. Section
1.355–2(b)(2). The principal reason for
the business purpose requirement is to
provide nonrecognition treatment only
to distributions that are incident to read-
justments of corporate structures required
by business exigencies and that effect
only readjustments of continuing inter-
ests in property under modified corporate
forms. Section 1.355–2(b)(1). If a cor-
porate business purpose can be achieved
through a nontaxable transaction that does
not involve the distribution of stock of
a controlled corporation and that is nei-
ther impractical nor unduly expensive,
then the separation is not carried out for
that corporate business purpose. Section
1.355–2(b)(3).
20
03-29 I.R.B.
79Ju
ly 21, 2003

ANALYSIS
The operation of the pharmaceuticals
business and the cosmetics business within
the same corporate group causes capital
allocation problems that prevent each
business from pursuing the development
strategies most appropriate to its opera-
tion. The separation of the two businesses
is the only nontaxable transaction that will
resolve these problems. It is expected that
both businesses will benefit from the sepa-
ration, and that the separation will enhance
the success of the cosmetics business in a
real and substantial way.
The limited continuing relationship
between Distributing and Controlled ev-
idenced by the various administrative
agreements and the loan for working cap-
ital is not incompatible with the extent of
separation contemplated by § 355. The
administrative agreements, except for the
tax matters agreement, and the loan are
transitional and short-term, and all are de-
signed to facilitate, rather than impede, the
separation of the pharmaceuticals business
from the cosmetics business.
Hence, the distribution of Controlled
stock by Distributing to Distributing's
shareholders is motivated in whole or
substantial part by a real and substantial
non-federal tax purpose germane to the
business of Controlled and satisfies the
corporate business purpose requirement of
§ 1.355–2(b).
HOLDING
In the situation described above, the
distribution of the stock of a controlled
corporation to resolve a capital allocation
problem between the distributing and con-
trolled corporations satisfies the business
purpose requirement of § 1.355–2(b).
DRAFTING INFORMATION
The principal author of this revenue rul-
ing is Richard M. Heinecke of the Office
of Associate Chief Counsel (Corporate).
For further information regarding this rev-
enue ruling, contact Mr. Heinecke at (202)
622–7930 (not a toll-free call).
(Also: §§ 368(a)(1)(D), 368(a)(1)(C) and 1.368–2.)
Section 355 reverse Morris trust.The
acquisition by an unrelated corporation of
all the assets of a newly formed controlled
corporation following distribution of the
controlled corporation’s stock under sec-
tion 355 will satisfy the "substantially all"
requirement of section 368(a)(1)(C) even
though the acquired assets represent only
half of the assets held by the distributing
corporation before it formed the controlled
corporation.
Rev. Rul. 2003–79
ISSUE
Whether the acquisition by an unre-
lated corporation of all the assets of a
newly formed controlled corporation fol-
lowing the distribution of the stock of the
controlled corporation by a distributing
corporation will satisfy the requirement
of § 368(a)(1)(C) of the Internal Revenue
Code that substantially all of the properties
of the acquired corporation be acquired
where the assets of the controlled corpo-
ration represent less than substantially all
of the assets that the distributing corpora-
tionheldbeforeitformedthecontrolled
corporation.
FACTS
D, a domestic corporation, directly
conducts Business X and Business Y. D's
assets are equally divided between the
two businesses. A, a domestic corporation
unrelated to D, conducts Business X and
wishes to acquire D's Business X, but not
D's Business Y.
To accomplish the acquisition, D and
A agree to undertake the following steps
in the following order: (i) D will transfer
its Business X assets to C, a newly formed
domestic corporation, in exchange for 100
percent of the stock of C, (ii) D will dis-
tribute the C stock to D's shareholders, (iii)
A will acquire all the assets of C in ex-
change solely for voting stock of A, and
(iv) C will liquidate. Apart from the ques-
tion of whether the acquisition of C's as-
sets by A will satisfy the requirement of
§ 368(a)(1)(C) that the acquiring corpora-
tion acquire substantially all of the prop-
erties of the acquired corporation, steps (i)
and (ii) together meet all the requirements
of § 368(a)(1)(D), step (ii) meets all the re-
quirements of § 355(a), and steps (iii) and
(iv) together meet all the requirements of
§ 368(a)(1)(C).
LAW
Section 355 provides that if certain re-
quirements are met, a corporation may dis-
tribute stock and securities in a controlled
corporation to its shareholders and security
holders without causing the distributees to
recognize gain or loss.
Section 368(a)(1)(C) defines a reorga-
nization to include the acquisition by one
corporation, in exchange solely for all or a
part of its voting stock, of substantially all
of the properties of another corporation.
Section 368(a)(1)(D) defines a reorga-
nization to include a transfer by a corpo-
ration of all or a part of its assets to an-
other corporation if immediately after the
transfer the transferor, or one or more of its
shareholders (including persons who were
shareholders immediately before the trans-
fer), or any combination thereof, is in con-
trol of the corporation to which the assets
are transferred; but only if, in pursuance of
the plan, stock or securities of the corpo-
ration to which the assets are transferred
are distributed in a transaction that quali-
fies under § 354, 355, or 356.
InHelvering v. Elkhorn Coal Co.,95
F.2d 732 (4
th
Cir. 1937),cert. denied,
305 U.S. 605,reh'g denied, 305 U.S.
670 (1938), Elkhorn Coal, in anticipation
of being acquired by Mill Creek, trans-
ferred part of its operating assets to a
newly formed subsidiary and distributed
the subsidiary's stock to Elkhorn Coal's
shareholders. The court concluded that the
distribution of subsidiary stock prevented
the subsequent acquisition from qualify-
ing under a predecessor of § 368(a)(1)(C)
because, as a result of the distribution,
Mill Creek did not acquire substantially
all of Elkhorn Coal's historical assets.
InCommissioner v. Mary Archer W.
Morris Trust, 367 F.2d 794 (4th Cir. 1966),
aff'g42 T.C. 779 (1964), the taxpayer, in
anticipation of a merger with a national
bank, contributed its insurance business
to a new subsidiary and distributed the
subsidiary's stock to its shareholders. The
divestiture was necessary to comply with
national banking laws. The court held that
the distribution satisfied the requirements
for nonrecognition under § 355(a) and,
therefore, that the contribution qualified
as a reorganization under § 368(a)(1)(D).
In Rev. Rul. 68–603, 1968–2 C.B. 148,
the Internal Revenue Service announced
that it would follow the decision inMary
Ju
ly 21, 2003
8020
03-29 I.R.B.

Archer W. Morris Trusttotheextentitheld
that (1) the active business requirements
of § 355(b)(1)(A) were satisfied even
though the distributing corporation, im-
mediately after the spin-off, merged into
the unrelated acquiring corporation, (2)
the control immediately after requirement
of § 368(a)(1)(D) implies no limitation
upon a reorganization of the transferor
corporation (the distributing corporation)
after the distribution of the stock of the
controlled corporation, and (3) there was
a business purpose for the spin-off and the
merger.
Rev. Rul. 98–27, 1998–1 C.B. 1159,
states that the Service will not apply any
formulation of the step transaction doc-
trine to determine whether the distributed
corporation was a controlled corporation
immediately before a distribution under
§ 355(a) solely because of any post-dis-
tribution acquisition or restructuring of
the distributed corporation, whether pre-
arranged or not. The holding of Rev.
Rul. 98–27 is based on § 1012(a) and
§ 1012(c) of the Taxpayer Relief Act
of 1997 (the “1997 Act”), Pub. L. No.
105–34, 111 Stat. 788, 916–17. Section
1012(c) amended the control requirements
of §§ 368(a)(1)(D) and 351 to provide
that, generally for transactions seeking
qualification after August 5, 1997, under
either provision and § 355, the sharehold-
ers of the distributing corporation must
own stock possessing more than 50 per-
cent of the voting power and more than 50
percent of the total value of the controlled
corporation's stock immediately after the
distribution.See§§ 368(a)(2)(H) and
351(c). Section 1012(a) amended § 355
by adding subsection (e), which provides
rules for the recognition of gain on certain
distributions of stock or securities of a
controlled corporation in connection with
acquisitions of stock representing a 50 per-
cent or greater interest in the distributing
corporation or any controlled corporation.
The Conference Report accompanying
the 1997 Act states, in part, that:
The . . . bill does not change the
present-law requirement under section
355 that the distributing corporation
must distribute 80 percent of the voting
power and 80 percent of each other
class of stock of the controlled corpora-
tion. It is expected that this requirement
will be applied by the Internal Revenue
Service taking account of the provi-
sions of the proposal regarding plans
that permit certain types of planned
restructuring of the distributing corpo-
ration following the distribution, and to
treat similar restructurings of the con-
trolled corporation in a similar manner.
Thus, the 80-percent control require-
ment is expected to be administered
in a manner that would prevent the
tax-free spin-off of a less-than-80-per-
cent controlled subsidiary, but would
not generally impose additional restric-
tions on post-distribution restructurings
of the controlled corporation if such
restrictions would not apply to the dis-
tributing corporation.
H.R. Rep. No. 105–220, at 529–30
(1997); 1997–4 C.B. 1457, at 1999–2000.
Section 6010(c)(2) of the Internal
Revenue Service Restructuring and Re-
form Act of 1998 (the “1998 Act”), P.L.
105–206, 1998–3 C.B. 145, amended
§ 1012(c) of the 1997 Act to provide that,
inthecaseofa§368(a)(1)(D)or§351
transaction that is followed by a § 355
transaction, solely for purposes of deter-
mining the tax treatment of any transfer
of property by the distributing corporation
to the controlled corporation, the fact
that the shareholders of the distributing
corporation dispose of part or all of the
controlled corporation's stock after the
§ 355 distribution shall not be taken into
account in determining whether the con-
trol requirement of either § 368(a)(1)(D)
or § 351 has been satisfied.
The Senate Report accompanying the
1998 Act contains three examples in which
distributing corporation D transfers appre-
ciated business X to newly created sub-
sidiary C in exchange for at least 85 per-
cent of the C stock and then distributes its
C stock to the D shareholders. As part of
the same plan, C then merges into unre-
lated acquiring corporation A. Each exam-
ple concludes that if the distribution satis-
fies the requirements of § 355, the control
immediately after requirement will be sat-
isfied solely for purposes of determining
the tax treatment of the transfer of business
XbyDtoC.SeeS. Rep. No. 105–174,
at 173–176 (1998); 1998–3 C.B. 537, at
709–712.
ANALYSIS
Section1012ofthe1997Act,as
amended by § 6010(c) of the 1998 Act,
evidences the intention of Congress that
a corporation formed in connection with
a distribution that qualifies for nonrecog-
nition under § 355 will be respected as
a separate corporation for purposes of
determining (i) whether the corporation
was a controlled corporation immediately
before the distribution and (ii) whether
a pre-distribution transfer of property to
the controlled corporation satisfies the
requirements of § 368(a)(1)(D) or § 351,
even if a post-distribution restructuring
causes the controlled corporation to cease
to exist.SeeRev. Rul. 98–44, 1998–2
C.B. 315; Rev. Rul. 98–27,supra;S.
Rep. No. 105–174,supra. Therefore,
the controlled corporation should also
be considered independently from the
distributing corporation in determining
whether an acquisition of the controlled
corporation will qualify as a reorganization
under § 368. Accordingly, in determining
under § 368(a)(1)(C) whether an acquir-
ing corporation has acquired substantially
all of the properties of a newly formed
controlled corporation, reference should
be made solely to the properties held by
the controlled corporation immediately
following the distributing corporation's
transfer of properties to the controlled cor-
poration, rather than to the properties held
by the distributing corporation immedi-
ately before its formation of the controlled
corporation.
Hence, the acquisition by A of all the
properties held by C immediately after the
distribution will satisfy the requirement of
§ 368(a)(1)(C) that A acquire substantially
all the properties of C. This result obtains
even though an acquisition by A of the
same properties from D would have failed
this requirement if D had retained Business
X, contributed Business Y to C, and dis-
tributed the stock of C.See Helvering v.
Elkhorn Coal Co.,supra.
HOLDING
The acquisition by an unrelated cor-
poration of all the assets of a newly
formed controlled corporation follow-
ing the distribution of the stock of the
controlled corporation by a distributing
corporation will satisfy the requirement of
20
03-29 I.R.B.
81Ju
ly 21, 2003

§ 368(a)(1)(C) that substantially all of the
properties of the acquired corporation be
acquired where the assets of the controlled
corporation represent less than substan-
tially all of the assets that the distributing
corporation held before it formed the con-
trolled corporation.
DRAFTING INFORMATION
The principal author of this revenue rul-
ing is Gene Raineri of the Office of As-
sociate Chief Counsel (Corporate). For
further information regarding this revenue
ruling, please contact Mr. Raineri at (202)
622–7530 (not a toll-free call).
Section 368.—Definitions
Relating to Corporate
Reorganizations
26 CFR 1.368-2: Definition of terms.
Whether the acquisition by an unrelated corpora-
tion of all the assets of a newly formed controlled
corporation following distribution of the controlled
corporation’s stock under section 355 will sat-
isfy the "substantially all" requirement of section
368(a)(1)(C) even though the acquired assets repre-
sent only half of the assets held by the distributing
corporation before it formed the controlled corpora-
tion. See Rev. Rul. 2003-79, page 80.
Section 472.—Last-in,
First-out Inventories
26 CFR 1.472–1: Last-in, first-out inventories.
LIFO; price indexes; department
stores.The May 2003 Bureau of Labor
Statistics price indexes are accepted for
use by department stores employing the
retail inventory and last-in, first-out inven-
tory methods for valuing inventories for
tax years ended on, or with reference to,
May 31, 2003.
Rev. Rul. 2003–87
The following Department Store In-
ventory Price Indexes for May 2003 were
issued by the Bureau of Labor Statistics.
The indexes are accepted by the Internal
Revenue Service, under § 1.472–1(k) of
the Income Tax Regulations and Rev.
Proc. 86–46, 1986–2 C.B. 739, for ap-
propriate application to inventories of
department stores employing the retail
inventory and last-in, first-out inventory
methods for tax years ended on, or with
reference to, May 31, 2003.
The Department Store Inventory Price
Indexes are prepared on a national basis
and include (a) 23 major groups of depart-
ments, (b) three special combinations of
the major groups — soft goods, durable
goods, and miscellaneous goods, and (c) a
store total, which covers all departments,
including some not listed separately, ex-
cept for the following: candy, food, liquor,
tobacco, and contract departments.
BUREAU OF LABOR STATISTICS, DEPARTMENT STORE
INVENTORY PRICE INDEXES BY DEPARTMENT GROUPS
(January 1941 = 100, unless otherwise noted)
GroupsMay 2002May 2003
Percent Change
from May 2002
to May 2003
1
1. PieceGoods .............................................490.1456.3-6.9
2. DomesticsandDraperies..................................586.9557.6-5.0
3. Women'sandChildren'sShoes.............................647.5637.0-1.6
4. Men'sShoes .............................................924.6855.8-7.4
5. Infants'Wear.............................................614.9599.6-2.5
6. Women'sUnderwear......................................542.9519.8-4.3
7. Women'sHosiery.........................................345.4349.51.2
8. Women's and Girls' Accessories . . . . . . . . . . . . . . . . . . . . . . . . . . . .558.0550.2-1.4
9. Women'sOuterwearandGirls'Wear........................386.7374.5-3.2
10. Men'sClothing...........................................597.7562.3-5.9
11. Men'sFurnishings........................................602.1587.2-2.5
12. Boys'ClothingandFurnishings ............................495.5463.5-6.5
13. Jewelry..................................................901.3877.9-2.6
14. Notions .................................................797.6789.7-1.0
15. ToiletArticlesandDrugs..................................975.0979.70.5
16. FurnitureandBedding ....................................626.4620.2-1.0
17. FloorCoverings..........................................620.1578.9-6.6
18. Housewares..............................................758.4730.9-3.6
19. MajorAppliances.........................................220.7213.7-3.2
20. RadioandTelevision......................................50.445.9-8.9
Ju
ly 21, 2003
8220
03-29 I.R.B.

BUREAU OF LABOR STATISTICS, DEPARTMENT STORE
INVENTORY PRICE INDEXES BY DEPARTMENT GROUPS
(January 1941 = 100, unless otherwise noted)
GroupsMay 2002May 2003
Percent Change
from May 2002
to May 2003
1
21. Recreation and Education
2
.................................86.983.4-4.0
22. Home Improvements
2
.....................................125.4126.10.6
23. Auto Accessories
2
........................................110.9111.60.6
Groups1–15:SoftGoods........................................586.0568.1-3.1
Groups16–20:DurableGoods...................................413.1397.1-3.9
Groups 21–23: Misc. Goods
2
....................................96.894.7-2.2
Store Total
3
..............................................522.3506.0-3.1
1
Absence of a minus sign before the percentage change in this column signifies a price increase.
2
Indexes on a January 1986 = 100 base.
3
The store total index covers all departments, including some not listed separately, except for the following: candy, food, liquor,
tobacco and contract departments.
DRAFTING INFORMATION
The principal author of this revenue rul-
ing is Michael Burkom of the Office of
Associate Chief Counsel (Income Tax and
Accounting). For further information re-
garding this revenue ruling, contact Mr.
Burkom at (202) 622–7718 (not a toll-free
call).
Section 1
400L.—Tax Benefits
for New Y
ork Liberty Zone
How does a taxpayer that timely filed its federal tax
return f
or the taxable year that included September
11, 2001, deduct, or elect not to deduct, the additional
first
year depreciation provided by section 1400L(b)
of the Internal Revenue Code for qualified New York
Libe
rty Zone property, or depreciate qualified New
York Liberty Zone leasehold improvement property
un
der section 1400L(c)? See Rev. Proc. 2003-50,
page 119.
Section 6501.—Limitations
on Assessment and Collection
26 CFR 301.6501(a)–1: Period of limitations upon
assessment and collection.
(Also section 6213, section 6503.)
Statute of limitations, bankruptcy.
This ruling explains the effect of a bank-
ruptcy on the running of the statute of
limitations on assessment set forth in
section 6501 of the Code. The ruling
illustrates that when the IRS issues a
Notice of Deficiency less than 90 days
before the taxpayer files a bankruptcy
petition, the same day the taxpayer files a
bankruptcy petition, or after the taxpayer
files a bankruptcy petition, and before the
termination of the automatic stay imposed
by the bankruptcy, the assessment period
is suspended not only by the 60-day period
provided by section 6503(a), but also by
the additional 60-day period provided by
section 6213(f).
Rev. Rul. 2003–80
ISSUE
How is the running of the period of lim-
itations for assessing a deficiency affected
when the Internal Revenue Service (Ser-
vice) issues a Notice of Deficiency before
or after the taxpayer files a bankruptcy pe-
tition?
FACTS
The issue presented arises in the three
different situations described below. In
each situation, the taxpayer files a bank-
ruptcy petition on Date 1, and the auto-
matic stay terminates on Date 2, the 100th
day after Date 1. Also, the Notice of Defi-
ciency is not addressed to a person outside
the United States, and the taxpayer does
not file a Tax Court petition for redetermi-
nation of the deficiency.
Situation A. The Service issues a Notice
of Deficiency on or after Date 1 and before
the termination of the automatic stay on
Date 2.
Situation B. The Service issues a Notice
of Deficiency less than 90 days before Date
1.
Situation C. The Service issues a Notice
of Deficiency 90 or more days before Date
1.
LAW AND ANALYSIS
Section 362 of title 11 of the United
States Code (Bankruptcy Code) pro-
vides that certain acts are automatically
stayed upon the filing of a bankruptcy
petition. Section 362 does not stay the
issuance of a Notice of Deficiency or the
assessment of a tax by the Service. 11
U.S.C. § 362(b)(9)(B), (D). Section 362
does, however, stay the commencement
or continuation of a Tax Court proceed-
ing concerning the debtor. 11 U.S.C.
§ 362(a)(8). Pursuant to section 362(c)(2),
the stay terminates upon the earliest of
the time the bankruptcy case is closed, the
time the case is dismissed, or the time a
discharge is granted or denied.
Section 6501(a) of the Internal Revenue
Code generally affords the Service three
years from the time a return is filed to as-
sess the tax for the return period. Under
section 6503(a)(1) of the Internal Revenue
Code, the running of the section 6501(a)
20
03-29 I.R.B.
83Ju
ly 21, 2003

assessment period is suspended for any pe-
riod during which the Service is prohibited
from making an assessment (and in any
event, if a proceeding in respect of the de-
ficiency is placed on the docket of the Tax
Court, until the decision of the Tax Court
becomes final), and for 60 days thereafter.
Section 6213(a) generally affords the
taxpayer 90 days from the time a Notice of
Deficiency is issued to file a Tax Court pe-
tition for redetermination of the deficiency.
In addition, section 6213(a) prohibits the
Service from assessing the deficiency dur-
ing the 90-day period. Section 6213(f)
suspends the running of the 90-day period
while the taxpayer is prohibited by reason
of the bankruptcy case from filing a peti-
tion in the Tax Court with respect to the
deficiency, and for 60 days thereafter.
Section 6503(h)(1) provides that the
running of the period of limitations on
assessment is suspended while the Service
is prohibited by a bankruptcy case from
making the assessment, and for 60 days
thereafter. Prior to 1994, section 362(a)(6)
of the Bankruptcy Code, which generally
prohibits assessment of claims against a
debtor, operated to prevent the Service
from assessing taxes for the period the
stay was in effect. Section 362(b)(9)(D),
which provides that the filing of a bank-
ruptcy petition does not stay the making
of tax assessments, was added to the
Bankruptcy Code by section 116 of the
Bankruptcy Reform Act of 1994, Pub.
L. No. 103–394, 108 Stat. 4106 (1994),
and is effective with regard to bankruptcy
cases commenced on or after October
22, 1994. With the addition of section
362(b)(9)(D), the Service is no longer
precluded solely by the automatic stay
from assessing taxes during the pendency
of bankruptcies. Thus, section 6503(h)(1)
no longer has any impact on the running
of the assessment period.
The following situations illustrate the
application of these provisions.
Situation A. The Service issues a Notice
of Deficiency on or after the day on which
the bankruptcy petition is filed (Date 1)
and before the termination of the automatic
stay on Date 2.
Under section 362(a)(8) of the Bank-
ruptcy Code, a Tax Court proceeding can-
not be commenced while the automatic
stay is in effect. Under section 6213(f), the
running of the 90-day period for filing a
Tax Court petition is suspended while the
automatic stay prevents the filing of a Tax
Court petition, and for 60 days thereafter.
Thus, the 90-day period for filing a Tax
Court petition begins to run 61 days after
Date 2. The period for filing a Tax Court
petition ends on Date 3A, 150 (60+90)
days after Date 2.
Under section 6213(a), the Service is
prohibited from making an assessment
during the period from issuance of the
Notice of Deficiency through Date 3A,
the last day for filing a Tax Court petition.
Under section 6503(a)(1), the running of
the period of limitations on assessment is
suspended during this period. Also, under
section 6503(a)(1), because no Tax Court
petition was filed, the running of the pe-
riod of limitations on assessment is further
suspended for an additional 60 days after
Date 3A. On the next day, which is 61 days
after Date 3A and 211 (60+90+61) days
after Date 2, any portion of the assessment
period that had not run when the Notice of
Deficiency was issued begins to run.
Situation B. The Service issues a Notice
of Deficiency less than 90 days before the
day on which the bankruptcy petition is
filed (Date 1). In the discussion below,
assume that the Notice of Deficiency is
issued 10 days before Date 1.
As inSituation A, a Tax Court proceed-
ing cannot be commenced while the auto-
matic stay is in effect, and the running of
the period for filing a Tax Court petition
is suspended under section 6213(f) while
the automatic stay prevents the filing of a
Tax Court petition, and for 60 days there-
after. Here, however, only 80 days of the
90-day period for filing a Tax Court peti-
tion remain as of Date 1. Thus, the 80-day
period remaining for filing a Tax Court pe-
tition begins to run 61 days after the termi-
nation of the automatic stay on Date 2. The
period for filing a Tax Court petition ends
on Date 3B, 140 (60+80) days after Date 2.
This is 240 (100+60+80) days after Date 1,
the date on which the bankruptcy petition
was filed.
Under section 6213(a), the Service is
prohibited from making an assessment
during the period from issuance of the
Notice of Deficiency through Date 3B,
the last day for filing a Tax Court petition.
Under section 6503(a)(1), the running of
the period of limitations on assessment is
suspended during this period. Also, under
section 6503(a)(1), because no Tax Court
petition was filed, the running of the pe-
riod of limitations on assessment is further
suspended for an additional 60 days after
Date 3B. On the next day, which is 61 days
after Date 3B, 201 (60+80+61) days after
Date 2, and 301 (100+60+80+61) days
after Date 1, the portion of the assessment
period that had not run when the Notice of
Deficiency was issued begins to run.
Situation C. The Service issues a Notice
of Deficiency 90 or more days before the
day on which the bankruptcy petition is
filed (Date 1).
Since the 90-day period for filing a Tax
Court petition expired before the filing of
the bankruptcy petition, the Service may
assess the deficiency at any time after the
expiration of the 90-day period, including
while the automatic stay is in effect.See
section 362(b)(9)(D) of the Bankruptcy
Code. Section 6213(f) does not apply
because the 90-day period for filing a Tax
Court petition expired before the filing of
the bankruptcy petition. The bankruptcy
case has no effect on the running of the
period of limitations on assessment or
on the suspension of the running of this
period under section 6503(a)(1).
HOLDING
The timing of the issuance of a Notice
of Deficiency and the filing of a bank-
ruptcy petition determines whether and
how the running of the period of limi-
tations on assessment is affected by the
bankruptcy. When the Notice of Defi-
ciency is issued on or after the day on
which the bankruptcy commences and
before the termination of the automatic
stay, or is issued less than 90 days before
the bankruptcy commences (Situations A
andB, respectively), the bankruptcy has
an effect on the running of the period of
limitations on assessment because of the
application of section 362(a)(8) of the
Bankruptcy Code and section 6213(a) and
(f) of the Internal Revenue Code. When
the Notice of Deficiency is issued 90 or
more days before the bankruptcy com-
mences (Situation C), the running of the
period of limitations on assessment is not
affected by the bankruptcy.
DRAFTING INFORMATION
The principal author of this revenue rul-
ing is Debra A. Kohn of the Office of the
Associate Chief Counsel (Procedure and
Ju
ly 21, 2003
8420
03-29 I.R.B.

Administration), Collection, Bankruptcy
& Summonses Division. For further in-
formation regarding this revenue ruling,
contact Branch 2 of Collection, Bank-
ruptcy & Summonses at (202) 622–3620
(not a toll-free call).
20
03-29 I.R.B.
85Ju
ly 21, 2003

Part III. Administrative, Procedural, and Miscellaneous
Extension of Time to Elect
Mid-quarter Convention Relief
Under Notice 2001–70 and
Notice 2001–74.
Notice 2003–45
This notice amplifies the tax relief
granted in Notice 2001–70, 2001–2 C.B.
437 (November 5, 2001), and in Notice
2001–74, 2001–2 C.B. 551 (December
3, 2001), by permitting an automatic
extension of time to make the election pro-
vided under Notice 2001–70 and Notice
2001–74.
Section 168(d)(3) of the Internal Rev-
enue Code generally provides that, except
as provided in regulations, if the aggregate
basis of property placed in service during
the last three months of the taxable year
exceeds 40 percent of the aggregate basis
of property (other than property described
in § 168(d)(3)(B)) placed in service during
the taxable year, the applicable deprecia-
tion convention is the mid-quarter conven-
tion for all property (other than property
described in § 168(d)(2)) subject to § 168
that is placed in service during the taxable
year.
In Notice 2001–70, the Treasury De-
partment and the Internal Revenue Service
announced their intention to issue reg-
ulations permitting taxpayers to elect
not to apply the mid-quarter convention
rules contained in § 168(d)(3) to prop-
erty placed in service in the taxable year
that included September 11, 2001, if the
third quarter of the taxpayer's taxable
year included September 11, 2001. No-
tice 2001–70 provided that, pending the
issuance of the regulations, an eligible
taxpayer that wished to elect not to apply
the mid-quarter convention rules could
make the election by writing “Election
Pursuant to Notice 2001–70” across the
top of the taxpayer's Form 4562,Depreci-
ation and Amortization, for the taxpayer's
taxable year that included September 11,
2001. Notice 2001–74 expanded Notice
2001–70 by permitting taxpayers to elect
not to apply the mid-quarter convention
rules to property placed in service in the
taxable year that included September 11,
2001, if the fourth quarter of the taxpayer's
taxable year included September 11, 2001.
Notice 2001–74 also provided guidance
for taxpayers that file Form 2106,Em-
ployee Business Expenses,ratherthan
Form 4562, or that file their tax returns
electronically, to elect not to apply the
mid-quarter convention rules. Under both
notices, the election was required to be
made on the taxpayer's tax return for the
taxable year that included September 11,
2001. No provision was made for an el-
igible taxpayer wishing to amend its tax
return to make the election.
Treasury and the Service have been
made aware that certain taxpayers did not
receive notice of the availability of this
election until after the tax returns for their
taxable year that included September 11,
2001, were filed. This notice is intended
to relieve taxpayers of the burden of ap-
plying for an extension of time pursuant
to § 301.9100–3 of the Procedure and
Administration Regulations to make the
election on an amended tax return for that
year.
Accordingly, Notice 2001–70 and No-
tice 2001–74 are amplified to provide
that a taxpayer qualifying under either
notice who filed a timely tax return for
the taxable year thatincludes September
11, 2001, but failed to make the election
provided under Notice 2001–70 or Notice
2001–74, is granted an automatic exten-
sion of time until December 31, 2003, to
amend its tax return for the taxable year
that includes September 11, 2001, and any
subsequent taxable years, in order to make
the election under Notice 2001–70 or
Notice 2001–74 and reflect any necessary
adjustments resulting from the election.
For example, a sole proprietor that timely
filed its 2001 and 2002 twelve-month
calendar year tax returns and qualified
under Notice 2001–70 to elect not to apply
the mid-quarter convention rules for its
taxable year ending December 31, 2001,
would be granted an automatic extension
of time until December 31, 2003, to make
the election on an amended 2001 tax return
and reflect any necessary adjustments re-
sulting from the election, as well as amend
its 2002 tax return to reflect any necessary
adjustments resulting from the election.
The election on the amended tax return
is made in the same manner provided in
Notice 2001–70 and in Notice 2001–74.
Treasury and the Service intend to
amend the regulations under § 168 to
incorporate the guidance set forth in this
notice. Until the regulations are amended,
taxpayers may rely on the guidance set
forth in this notice.
The principal author of this notice is
Bernard P. Harvey of the Office of As-
sociate Chief Counsel, Passthroughs and
Special Industries. For further information
regarding this notice, contact Mr. Harvey
at (202) 622–3110 (not a toll-free call).
26 CFR 601.201: Rulings and determination letters.
(Also Part I, §§ 355, 1.355–2.)
Rev. Proc. 2003–48
SECTION 1. PURPOSE
This revenue procedure modifies and
amplifies Rev. Proc. 96–30, 1996–1 C.B.
696, which sets forth in a checklist ques-
tionnaire the information that must be i
n-
cluded in a request for a ruling under § 3
55
of the Internal Revenue Code. In addi-
tion, this revenue procedure modifie
sRev.
Proc. 2003–3, 2003–1 I.R.B. 113, whi
ch
sets forth the areas of the Internal
Revenue
Code under the jurisdiction of the A
sso-
ciate Chief Counsel (Corporate),
the Asso-
ciate Chief Counsel (Financial I
nstitutions
and Products), the Associate Chi
ef Coun-
sel (Income Tax and Accounting)
,theAs-
sociate Chief Counsel (Passth
roughs and
Special Industries), the Asso
ciate Chief
Counsel (Procedure and A
dministration),
and the Division Counsel
/Associate Chief
Counsel (Tax Exempt and
Government En-
tities) relating to iss
ues on which the In-
ternal Revenue Servic
e will not issue letter
rulings or determinat
ion letters.
SECTION 2. BACKGROUND
Section 355(a) applies to distributions
of stock or securities of a corporation con-
trolled by the distributing corporation if the
requirements of § 355 are satisfied. Rev.
Proc. 96–30 sets forth in a checklist ques-
tionnaire the information that must be in-
cluded in a request for rulings under § 355.
Section1.355–2(b)oftheIncome
Tax Regulations provides that to qual-
ify as a distribution described in § 355,
Ju
ly 21, 2003
8620
03-29 I.R.B.

a distribution must not only satisfy the
statutory requirements of § 355, but also
must satisfy certain requirements in the
regulations, including the business pur-
pose requirement. Section 1.355–2(b)(1)
provides that a distribution must be mo-
tivated, in whole or substantial part, by
one or more corporate business purposes.
A corporate business purpose is a real
and substantial non-federal tax purpose
germane to the business of the distributing
corporation, the controlled corporation,
or the affiliated group to which the dis-
tributing corporation belongs. Section
1.355–2(b)(2). Section 4.04 and Ap-
pendix A of Rev. Proc. 96–30 provide
guidelines and request certain information
and representations regarding whether a
distribution satisfies the business purpose
requirement.
Section 355(a)(1)(B) provides that a
distribution will not qualify for nonrecog-
nition treatment under § 355 if it is used
principally as a device for the distribu-
tion of the earnings and profits of the
distributing corporation, the controlled
corporation, or both. Generally, the de-
termination of whether a transaction was
used principally as a device will be made
from all the facts and circumstances, in-
cluding, but not limited to, the presence of
certain device and nondevice factors. Sec-
tion 1.355–2(d)(1). Section 4.05 of Rev.
Proc. 96–30 requests certain information
and representations regarding whether a
distribution is used principally as a device.
Section 355(e) provides that the stock
of a controlled corporation will not be
qualified property under § 355(c)(2) or
§ 361(c)(2) if the stock is distributed
as “part of a plan (or series of related
transactions) pursuant to which 1 or
more persons acquire directly or indi-
rectly stock representing a 50-percent or
greater interest in the distributing corpo-
ration or any controlled corporation.”See
§ 355(e)(2)(A)(ii). For this purpose, a
50-percent or greater interest means stock
possessing at least 50 percent of the total
combined voting power of all classes of
stock entitled to vote or at least 50 percent
of the total value of shares of all classes
of stock.See§ 355(e)(4)(A) (referring to
§ 355(d)(4) for the definition of 50-percent
or greater interest). Section 1.355–7T gen-
erally provides that whether a distribution
and an acquisition are part of a plan (or
series of related transactions) (hereinafter,
plan) is determined based on all the facts
and circumstances. That section provides
a nonexclusive list of factors to consider
in determining whether a plan exists, as
well as a number of safe harbors that may
be relied upon in determining whether a
plan exists.
Ordinarily, the Service refrains from is-
suing letter rulings requesting determina-
tions on issues that are primarily factual.
SeeRev. Proc. 2003–1, 2003–1 I.R.B. 1,
section 7.01, and Rev. Proc. 2003–3, sec-
tions 2.01 and 4.02(1). Moreover, it gener-
ally is the policy of the Service not to issue
“comfort rulings” on transactions the treat-
ment of which is clearly and adequately
addressed in published guidance.SeeRev.
Proc. 2003–1, section 5.17, and Rev. Proc.
2003–3, section 4.02(9). Nonetheless, the
Service has not strictly applied its policies
of not ruling on factual issues and not issu-
ing comfort rulings in the context of letter
ruling requests regarding transactions in-
tendedtoqualifyunder§355.
The Service has concluded that it is ap-
propriate to adhere more closely to its gen-
eral policies in the context of requests for
letter rulings under § 355 and that it can
better serve taxpayers by dedicating its re-
sources to increasing the amount of pub-
lished guidance regarding § 355, includ-
ing the business purpose requirement, and
other legal questions. Thus, this revenue
procedure provides that the National Of-
fice will not determine whether a proposed
or completed distribution of the stock of a
controlled corporation is being carried out
for one or more corporate business pur-
poses, whether the transaction is used prin-
cipally as a device, or whether the distri-
bution and an acquisition are part of a plan
under § 355(e). Rather, these determina-
tions may be made upon an examination
of the taxpayer’s return. Hence, sections
4.01, 4.02, and 4.03 of this revenue pro-
cedure require taxpayers seeking a ruling
under § 355 to submit representations re-
garding the business purpose and device
requirements and whether there is a plan
under § 355(e)(2)(A)(ii). The request for
a letter ruling, including representations,
must be accompanied by a penalties of per-
jury statement signed and dated by the tax-
payer indicating that the submission con-
tains all the relevant facts relating to the re-
quest and such facts are true, correct, and
complete.SeeRev. Proc. 2003–1, sec-
tions 8.01(15) and 10.07(1).
This is a pilot program that applies
to ruling requests postmarked or, if not
mailed, received after August 8, 2003.
This pilot program is intended to operate
for at least one year. After that time, the
Service may consider further changes,
includingrulingonlyonsignificantissues
(as defined in Section 3.01(29) of Rev.
Proc. 2003–3) under § 355.
Section 4.05 of this revenue procedure
provides that the Service will decline a re-
quest for a ruling regarding a proposed or
completed transaction if the Service has
previously declined to rule on that transac-
tion (or a similar transaction) because the
Service was not satisfied that the distribu-
tion met the corporate business purpose re-
quirement, was not a device for the distri-
bution of earnings and profits, or was not
part of a plan under § 355(e).
Section 4.06 of this revenue procedure
provides that the Service will decline a re-
quest for a supplemental ruling, unless the
request presents a significant issue (as de-
fined in section 3.01(29) of Rev. Proc.
2003–3).
Section 4.01(30) of Rev. Proc. 2003–3
provides that a letter ruling ordinarily
will not be issued regarding the issue of
whether the active business requirement
of § 355(b) is met when the gross assets of
the trades or businesses relied on to satisfy
that requirement will have a fair market
value that is less than 5 percent of the total
fair market value of the gross assets of the
corporation directly conducting the trades
or businesses. Section 4.07 of this revenue
procedure modifies Rev. Proc. 2003–3 by
deleting section 4.01(30).
SECTION 3. REQUEST FOR
COMMENTS
The Service requests comments re-
garding issues under § 355 that should
be addressed in published guidance.
Moreover, the Service continues to study
language for, and requests comments
regarding, § 355(e) representations. Com-
ments should refer to Rev. Proc. 2003–48,
and should be submitted to:
Internal Revenue Service
P.O. Box 7604
Ben Franklin Station
Washington, DC 20044
Attn: CC:PA:RU
Room 5226
20
03-29 I.R.B.
87Ju
ly 21, 2003

or electronically via the Service inter-
net site at:Notice.Comments@irscoun-
sel.treas.gov(the Service comments
e-mail address). All comments will be
available for public inspection and copy-
ing.
SECTION 4. PROCEDURE
.01 Rev. Proc. 96–30 is modified by
deleting section 4.04(1) through 4.04(7)
and Appendices A and C, and amplified by
adding new section 4.04(1) as follows:
(1) Detailed Description. Describe
in narrative form each corporate business
purpose for the distribution of the stock
of Controlled. Do not provide any doc-
umentation or substantiation in support
thereof. Submit the followingREPRE-
SENTATION: The distribution of the
stock, or stock and securities, of the con-
trolled corporation is carried out for the
following corporate business purposes:
[list these corporate business purposes].
The distribution of the stock, or stock and
securities, of the controlled corporation is
motivated, in whole or substantial part, by
one or more of these corporate business
purposes.The Service will decline to
issue a letter ruling in all cases in which
the taxpayer fails to submit the required
representation. The National Office will
not determine whether the distribution is
being carried out for one or more corpo-
rate business purposes. This determination
maybemadeuponanexaminationofthe
taxpayer’s return.
.02 Rev. Proc. 96–30 is modified by
deleting section 4.05(1) through 4.05(5)
and amplified by adding new section
4.05(1) as follows:
(1) Dispositions of stock or securi-
ties.Submit the followingREPRESEN-
TATION: The transaction is not used prin-
cipally as a device for the distribution of
the earnings and profits of the distributing
corporation or the controlled corporation
or both. See§ 355(a)(1)(B). The Service
will decline to issue a letter ruling in all
cases in which the taxpayer fails to sub-
mit the required representation. The Na-
tional Office will not determine whether
the transaction is used principally as a de-
vice for the distribution of the earnings and
profits of the distributing corporation, the
controlled corporation, or both. This de-
termination may be made upon an exami-
nation of the taxpayer’s return.
.03 Rev. Proc. 96–30 is amplified by
adding new section 4.08(12) as follows:
(12) Distributions in Connection with
Acquisitions.Regarding whether there is
a plan (or series of related transactions)
under § 355(e)(2)(A)(ii), submit one of
the followingREPRESENTATIONS:(i)
There is no acquisition of stock of the
distributing corporation or any controlled
corporation (including any predecessor or
successor of any such corporation) that is
part of a plan or series of related transac-
tions (within the meaning of § 1.355–7T)
that includes the distribution of the con-
trolled corporation stock; (ii) Each of
the following acquisitions of stock of the
distributing corporation or any controlled
corporation (including any predecessor
or successor of any such corporation) is
or may be part of a plan or series of re-
lated transactions (within the meaning of
§ 1.355–7T) that includes the distribution
of controlled corporation stock: [DE-
SCRIBE ACQUISITIONS HERE]. Taking
all of these acquisitions into account, stock
representing a 50-percent or greater inter-
est (within the meaning of § 355(d)(4)) in
the distributing or controlled corporation
(including any predecessor or succes-
sor of any such corporation) will not be
acquired by any person or persons; or
(iii) The distribution is not part of a plan
or series of related transactions (within
the meaning of § 1.355–7T) pursuant to
which one or more persons will acquire
directly or indirectly stock representing a
50-percent or greater interest (within the
meaning of § 355(d)(4)) in Distributing
or Controlled (including any predecessor
or successor of any such corporation).
If a representation cannot be submitted
exactly as requested, an explanation must
be given. The taxpayer must submit one
of the three representations set forth above
(as set forth above or in appropriately
modified form to the satisfaction of the
Service) before the Service will issue a
letter ruling. While the National Office
will not determine whether a distribu-
tion and an acquisition are part of a plan
(or series of related transactions) under
§ 355(e)(2)(A)(ii), the Service may rule
on related significant issues (as defined in
section 3.01(29) of Rev. Proc. 2003–3,
2003–1 I.R.B. 113 at 115). The determi-
nation of whether a distribution and an
acquisition are part of a plan (or series of
related transactions) may be made upon
an examination of the taxpayer’s return.
.04 Rev. Proc. 96–30 is amplified by
adding new section 4.08(13) as follows:
(13) Regulatory filings.Provide
copies of any proxy statements, informa-
tion statements, or prospectuses filed or
prepared in connection with the distribu-
tion or any related transaction.
.05 Rev. Proc. 96–30 is amplified by
adding new section 4.08(14) as follows:
(14) Previously Declined Request for
Ruling.The Service will not entertain
any ruling request regarding a proposed or
completed transaction if the Service has
previously declined to rule on that transac-
tion (or a similar transaction) because the
Service was not satisfied that the distribu-
tion met the corporate business purpose re-
quirement, was not a device for the distri-
bution of earnings and profits, or was not
part of a plan (or series of related transac-
tions) under § 355(e).
.06 Rev. Proc. 96–30 is amplified by
adding new section 4.08(15) as follows:
(15) Request for Supplemental Rul-
ing.The Service will decline a request for
a supplemental letter ruling, unless the re-
quest presents a significant issue (as de-
fined in section 3.01(29) of Rev. Proc.
2003–3). A change in circumstances aris-
ing after the transaction ordinarily does not
present a significant issue.
.07 Rev. Proc. 2003–3, 2003–1 I.R.B.
113, is modified by deleting section
4.01(30).
SECTION 5. EFFECT ON OTHER
DOCUMENTS
Rev. Proc. 96–30, 1996–1 C.B. 696,
is modified and amplified and Rev. Proc.
2003–3, 2003–1 I.R.B. 113, is modified.
SECTION 6. EFFECTIVE DATE
This revenue procedure applies to
all ruling requests postmarked or, if not
mailed, received after August 8, 2003.
Ruling requests postmarked or received
after June 24, 2003, and on or before
August 8, 2003, that are not in compliance
with Rev. Proc. 2003–1 and Rev. Proc.
96–30 will be, in the sole discretion of the
Service, either returned to the taxpayer
or treated as being subject to this revenue
procedure. Taxpayers, however, may use
the guidelines of this revenue procedure in
Ju
ly 21, 2003
8820
03-29 I.R.B.

ruling requests filed after June 24, 2003,
and on or before August 8, 2003.
SECTION 7. PAPERWORK
REDUCTION ACT
The collections of information in this
revenue procedure have been reviewed and
approved by the Office of Management
and Budget (OMB) in accordance with
the Paperwork Reduction Act (44 U.S.C.
3507) under control number 1545–1846.
An agency may not conduct or sponsor,
and a person is not required to respond
to, a collection of information unless the
collection of information displays a valid
OMB control number.
The collections of information in this
revenue procedure are in section 4. This
informationisrequiredtodetermine
whether a taxpayer would qualify for non-
recognition treatment under this revenue
procedure. The collections of information
are required to obtain a benefit. The likely
respondents are corporations that control
another corporation, as well as the man-
agement of the corporation the stock of
which is being distributed or that controls
the corporation the stock of which is being
distributed.
The estimated total annual reporting
burden is 36,000 hours.
The estimated annual burden per re-
spondent varies from 150 hours to 250
hours, depending on individual circum-
stances, with an estimated average of 200
hours. The estimated number of respon-
dents is 180.
The estimated annual frequency of re-
sponses is on occasion.
Books or records relating to a collection
of information must be retained as long as
their contents may become material in the
administration of any internal revenue tax
law. Generally tax returns and tax return
information are confidential, as required
by 26 U.S.C. 6103.
SECTION 8. DRAFTING INFOR-
MATION
The principal author of this revenue
procedure is Richard M. Heinecke of
the Office of Associate Chief Counsel
(Corporate). For further information re-
garding this revenue procedure, contact
Mr. Heinecke at (202) 622–7930 (not a
toll-free call).
26 CFR 601.201: Rulings and determination letters.
(Also Part I, sections 25, 103, 143, 1.25–4T, 1.103–1,
6A.103A–2.)
Rev. Proc. 2003–49
SECTION 1. PURPOSE
This revenue procedure provides is-
suers of qualified mortgage bonds, as
defined in section 143(a) of the Internal
Revenue Code, and issuers of mortgage
credit certificates, as defined in section
25(c), with a list of qualified census tracts
for each state and the District of Colum-
bia. It modifies and supersedes Rev. Proc.
2003–15, 2003–4 I.R.B. 321.
SECTION 2. CHANGES
This revenue procedure corrects errors
found in Rev. Proc. 2003–15, 2003–4
I.R.B. 321. On page 341 of the Internal
Revenue Bulletin 2003–4 (“IRB”), cen-
sus tract 000300 is now under Yellow-
stone County, Montana. On page 342 of
the IRB, census tract 010302 is now un-
der Sarpy County, Nebraska. On page 352
of the IRB, census tracts 000300, 001200,
001500, 001600, 001900, and 002000 are
now under Hamilton County, Tennessee.
SECTION 3. BACKGROUND
.01 Section 103(a) of the Code pro-
vides that, except as provided in section
103(b), gross income does not include in-
terest on any state or local bond. Sec-
tion 103(b)(1) provides that section 103(a)
shall not apply to any private activity bond
that is not a “qualified bond” within the
meaning of section 141. Section 141(e)
provides that the term “qualified bond”
includes any private activity bond if that
bond: (1) is a qualified mortgage bond; (2)
meets the volume cap requirements under
section 146; and (3) meets the applicable
requirements under section 147.
.02Section143(a)(1)oftheCodepro-
vides that the term “qualified mortgage
bond” means a bond which is issued as part
of a “qualified mortgage issue”. Section
143(a)(2)(A) provides that the term “qual-
ified mortgage issue” means an issue by
a state or political subdivision thereof of
one or more bonds but only if: (i) all pro-
ceeds of the issue (exclusive of issuance
costs and a reasonably required reserve)
are to be used to finance owner occupied
residences; (ii) the issue meets the require-
ments of subsections (c), (d), (e), (f), (g),
(h), (i), and (m)(7); (iii) the issue does
not meet the private business tests of para-
graphs (1) and (2) of section 141(b); and
(iv) with respect to amounts received more
than 10 years after the date of issuance, re-
payments of $250,000 or more of principal
on financing provided by the issue are used
not later than the close of the first semi-an-
nual period beginning after the date the
prepayment (or complete repayment) is re-
ceived to redeem bonds that are part of the
issue.
.03 An issue of bonds meets the re-
quirements of subsection (h) of section
143 of the Code only if at least 20 per-
cent of the proceeds of the issue is made
available for owner financing of “targeted
area residences” for at least 1 year af-
ter the date on which owner financing is
first made available with respect to tar-
geted area residences. Subsection (h)(2)
provides, however, that the amount made
available need not exceed 40 percent of the
average annual aggregate principal amount
of mortgages executed during the imme-
diately preceding 3 calendar years for sin-
gle-family, owner-occupied residences lo-
cated in targeted areas within the jurisdic-
tion of the issuing authority.
.04 Targeted area residences are de-
fined in section 143(j)(1)(A) to include
residences in a qualified census tract.
A “qualified census tract”, according to
section 143(j)(2)(A), is a census tract in
which 70 percent or more of the families
have income that is 80 percent or less
of the statewide median family income.
Section 143(j)(2)(B) of the Code provides
that the determination that a census tract
is a “qualified census tract” must be based
on the most recent decennial census for
which data are available. The last list of
qualified census tracts, published in Rev.
Proc. 2003–15, 2003–4 I.R.B. 321, was
based on the 2000 Census.
.05 Section 6a.103A–2(b)(4)(ii) of the
Temporary Income Tax Regulations pro-
vides that, with respect to any particular
bond issue, the determination that a cen-
sus tract is a “qualified census tract” may
be based upon the decennial census data
20
03-29 I.R.B.
89Ju
ly 21, 2003

available 3 months prior to the date of is-
suance and shall not be affected by offi-
cial changes to the data during or after that
3-month period.
.06 Section 143(k)(2)(A) of the Code
provides that the term “statistical area”
means (i) a metropolitan statistical area
(“MSA”), and (ii) any county (or the por-
tion thereof) that is not within an MSA.
.07AnMSAiscurrentlydefinedas
an area containing at least one urbanized
area with a population of at least 50,000,
plus adjacent territory having a high degree
of social and economic integration with
the core as measured through commut-
ing ties. See Office of Management and
Budget (“OMB”), Standards for Defining
Metropolitan and Micropolitan Statistical
Areas; Notice, 65 FR 249 (December 27,
2000); OMB Bulletin No. 03–04 (June 6,
2003).
.08 A state or local government may
elect to exchange all or part of its quali-
fied mortgage bond authority for author-
ity to issue mortgage credit certificates.
In general, the recipient of a mortgage
credit certificate may claim a federal in-
come tax credit equal to the product of the
certificate credit rate and the interest paid
or accrued during the tax year on the re-
maining principal of the certified indebted-
ness amount. Section 25(c)(2)(A)(iii)(V)
of the Code provides that the indebted-
ness certified by mortgage credit certifi-
cates must meet the requirements of sec-
tion 143(h) concerning the portion of loans
to be placed in targeted areas.
.09 The list of qualified census tracts
is developed by HUD for publication by
the service. HUD's determination is based
upon decennial census data received by
HUD from the Bureau of the Census.
SECTION 4. APPLICATION
The qualified census tracts for each
state and the District of Columbia as
listed below are based on the 2000 cen-
sus. In 2000, the Bureau of the Census
has provided data for all areas, not only
the metropolitan statistical areas. Thus,
the list of qualified census tracts includes
tracts in Block Numbering Areas (BNA)
in nonmetropolitan counties as well as
tracts in Metropolitan Statistical Areas
(MSA).
State and County or County
EquivalentQualified Census Tracts
ALABAMA
ButlerCounty.......................................953100
CalhounCounty.....................................000500000600
DallasCounty.......................................996400996500
EtowahCounty......................................000700001400
HoustonCounty.....................................040600
JeffersonCounty ....................................000300000500000700001500
002700002900003200003400
003900004500005101010100
010302
LauderdaleCounty ..................................010300010700
LeeCounty.........................................040700040800041600
MadisonCounty.....................................000201001100001200001600
002100002501
MobileCounty......................................000401000402000600001200
001400001501001502002700
004000004100004200004300
004600004800
MontgomeryCounty.................................000100000200000300000600
001000001100001200003000
PerryCounty........................................987200
RussellCounty......................................030200030800
TuscaloosaCounty...................................011200011701011800
WilcoxCounty......................................994700
ALASKA
AnchorageMunicipality..............................000600001000
BethelCensusArea..................................000100000300
FairbanksNorthStarBorough.........................001100001800
KenaiPeninsulaBorough.............................000100
Skagway-Hoonah-AngoonCensusArea................000200
WadeHamptonCensusArea..........................000100
Yukon-KoyukukCensusArea.........................000100000400
ARIZONA
ApacheCounty......................................940100942600942700944100
944200944300
CochiseCounty.....................................000600000900
Ju
ly 21, 2003
9020
03-29 I.R.B.

State and County or County
EquivalentQualified Census Tracts
ARIZONA (cont.)
CoconinoCounty....................................000800001000941100944500
GilaCounty.........................................940200940400
GrahamCounty.....................................940500
LaPazCounty ......................................020100020500
MaricopaCounty....................................061400092900103306107201
108601108602109000110200
110701111202111203111602
112507112602112800113201
113202113203113300113500
113601113700113800113900
114200114302114401114402
114500114701114702114703
114800114900115200115300
115801115900116100116602
941000941100
MohaveCounty.....................................940400951700951800
NavajoCounty......................................940300941000942400944400
944500944700944800
PimaCounty........................................000100001000001301001302
002100002300002400002601
002801002802003702003801
004104004111004900005100
940600940700940800
PinalCounty........................................941100941200
SantaCruzCounty...................................996402
YumaCounty.......................................000301000302000401000402
000700001300011401011600
ARKANSAS
CraigheadCounty...................................000602
Crittenden County . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .030501030502
JeffersonCounty ....................................001300
Miller County . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .020400020600
Phillips County. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .980500
PulaskiCounty......................................000900001700002800
WashingtonCounty..................................010900
CALIFORNIA
AlamedaCounty ....................................401300401400401600401700
401800402100402200402500
402600402700402800402900
403000403300405400407500
420400422800
ButteCounty........................................000604001000002800002900
003000003200
ContraCostaCounty.................................328000365002379000
FresnoCounty ......................................000100000200000300000400
000500000600000700000800
000900001000001100001201
001202001301001302001405
001500002000002100002300
002400002501002502002601
002701002702002800002902
003001003102003300003400
004404004704004800005202
005403005602005604006200
006500006801006802007100
007800008200008301008302
008402
HumboldtCounty ...................................000100000200
20
03-29 I.R.B.
91Ju
ly 21, 2003

State and County or County
EquivalentQualified Census Tracts
CALIFORNIA (cont.)
ImperialCounty.....................................010400011400011500012100
012302012400012500
KernCounty........................................000200000300000400000600
001101001102001103001201
001202001300001400001500
001600002000002100002200
002301002302002500002600
002812003000003400004000
004102004402004500004700
004800004901005202005300
005900006202006301006302
006401006402
KingsCounty.......................................000300000900001002001100
001300001400001701
LakeCounty........................................000500000700000800
LosAngelesCounty.................................104701106404117405117406
117510117530119340120030
120101120102122410123203
123204123205123206123410
124202127220127520128210
128302128303134305183520
183810183820186401190200
190400190510190520190700
190800190901190902191000
191110191120191201191203
191204191300191410191420
191500191610191620191710
191720191810191820192520
192610192620192700195600
195710195720195802197300
197420197600197700199000
199120199201199400199700
199800199900203100203200
203300203500203600203710
203720204120204200204300
204410204420204600204700
204810204910205110205120
206010206020206030206200
206300207100207300207710
208000208300208400208500
208620208710208720208800
208902208903208904209101
209102209200209300209401
209402209403209510209520
209810209820210010211110
211200211310211320211410
211801211802211910211920
212100212202212203212204
212303212304212305212306
212410212420212500212610
212620212900213201213202
213310213320213401213402
218120218210218800218900
221110221120221220221301
221302221400221500221600
221710221810221820222200
222500222600222700224010
224020224200224310224320
224410224420224600224700
226000226410226420226700
Ju
ly 21, 2003
9220
03-29 I.R.B.

State and County or County
EquivalentQualified Census Tracts
CALIFORNIA (cont.)
LosAngelesCounty(cont.)...........................227010227020228100228210
228220228310228320228410
228420228500228600228710
228720228800228900229200
229300229410229420231100
231210231220231300231600
231710231720231800231900
232110232120232400232500
232600232700232800234900
235202236100236201236202
237100237200237500237600
237710237720238310238320
239200239310239330239500
239600239700239800240010
240020240200240300240400
240500240600240700240800
240900241000241120241400
242100242200242300242600
242700243000243100265301
269600275520291120293202
294700294810294820294830
294900296210296220297110
302201302501402302402501
402702402801402802408800
432801432802433301433402
433403433502433901462000
481714482303482304504102
530901531101531201531202
531301531602531702531800
532605532606532700532800
532900533000533103533104
533105533107533201533300
533401533403533501533503
533601533702533801533901
533902534001534102534201
534301534404534405534406
535000535101535200535300
535501535503535605535606
540000540202540400540502
540600540700541400541500
541603541604541605541606
542601542602570203570304
570603571600572500572800
572900573001573002573201
573202573300575101575102
575103575201575202575300
575401575402575500575801
575802575803575901575902
576000576200576300576401
576402576403576501576502
576503576901576902600100
600201600202600301600602
601100601211601501601600
601700601802601900602105
602501602502602503900602
900704900806910402910403
910501910502
MaderaCounty......................................000601000602000800000900
MendocinoCounty..................................011600
MercedCounty......................................000504001003001005001301
20
03-29 I.R.B.
93Ju
ly 21, 2003

State and County or County
EquivalentQualified Census Tracts
CALIFORNIA (cont.)
MercedCounty(cont.)...............................001302001502001503001601
001602001901002201
MontereyCounty....................................001000001300
OrangeCounty......................................074403074405074406074902
075002075003075004089104
RiversideCounty....................................030300030400030502030503
040203040204041500041600
041703041704042202042209
042211042504042505042515
042710042723042800043006
043308043401043403043405
043503043507043600044000
044101044503044506044507
044509044510044915045207
045301045400045502045604
045605045705045706940100
SacramentoCounty..................................000500000700000900001000
001100001300001800002100
002700002800003700004203
004402004500004602004903
005002005201005300005506
006202006400006600006702
006800007300007413007503
008800009110
SanBernardinoCounty...............................001400001500001600003402
003700004201004202004700
004800004900005000005400
005500005600005800005900
006202006302006401006402
006500006800006900007000
007107007407007408007601
009400009800010014010402
010414940100940500
SanDiegoCounty...................................000900001200001600001700
001800002201002202002301
002302002401002402002501
002601002602002707002708
002709002710003302003303
003404003501003601003602
003603003901003902004000
004100004501004502004600
004700004800004900005000
005100005600005700005800
006200006600010012010013
010015010112010401010502
011400011500011601011602
011802012500013103013206
014400015701015703015801
015802015901018200018400
019501020009020207020212
SanFranciscoCounty................................010700011300011400011500
011700011800012400012500
016100023103060300060502
060700
SanJoaquinCounty..................................000100000300000402000500
000600000700000800001700
001900002200002300003308
003309003406003407004401
SanLuisObispoCounty..............................010901
Ju
ly 21, 2003
9420
03-29 I.R.B.

State and County or County
EquivalentQualified Census Tracts
CALIFORNIA (cont.)
SantaBarbaraCounty................................002304002403002404002702
002911002912
SantaClaraCounty..................................500902
ShastaCounty.......................................011200012000
SiskiyouCounty.....................................000200
StanislausCounty ...................................000803001604001700001800
002100002200003802003906
003908
SutterCounty.......................................050102050202
TrinityCounty ......................................000300
TulareCounty.......................................000302000501000600000702
001004001100001200001601
002008002202002601002800
002901003001003100003200
003802003901003902004101
004102004200004300004400
VenturaCounty .....................................002300004301004706005002
YoloCounty........................................010101010203010501
YubaCounty........................................040100040300040400
COLORADO
AdamsCounty......................................007800007900008952009320
009606
ArapahoeCounty....................................004950006501007040007202
007300
BacaCounty........................................984600
BoulderCounty.....................................012300
ChaffeeCounty .....................................000100
ConejosCounty.....................................974800
CostillaCounty .....................................982600982700
CrowleyCounty.....................................989600
DenverCounty......................................000600000702000800001101
001600001900002403002701
003602004101004404004502
005103008313
ElPasoCounty......................................002200002300002800002900
004009004400005201006100
HuerfanoCounty....................................980600
LakeCounty........................................961600
LarimerCounty.....................................000600
LasAnimasCounty..................................000100
MesaCounty........................................000300000602000700
MontezumaCounty..................................941000
OteroCounty .......................................987700988000
ProwersCounty.....................................000200000500
PuebloCounty......................................000200000600000700000800
001000001100001200001300
001400001800001900002000
002100002200002300002400
002600002901
RioGrandeCounty..................................976800
SaguacheCounty....................................977700
WeldCounty........................................000100000200000500000600
000701000800001002
CONNECTICUT
FairfieldCounty.....................................022200044100070300070500
070600070900071000071100
071200071300071400071600
071700071900073200073500
20
03-29 I.R.B.
95Ju
ly 21, 2003

State and County or County
EquivalentQualified Census Tracts
CONNECTICUT (cont.)
FairfieldCounty(cont.) ..............................073600073700073800073900
074000074300074400
HartfordCounty.....................................415900416100416200416600
417100417300480600490200
500100500200500300500400
500500500900501000501100
501200501300501400501500
501700501800502400502500
502600502700502800502900
503000503100503200503300
503400503500503700503800
504100504300504700504900
LitchfieldCounty....................................310300
MiddlesexCounty...................................541100541600541800
NewHavenCounty..................................140200140300140400140500
140600140700140800141300
141500141600142100142300
142400142500170100170200
170300171000171500350100
350200350300350400350500
350800351200351400351700
352200
NewLondonCounty.................................690100690300690400690500
696800702202702500
WindhamCounty....................................800600
DELAWARE
NewCastleCounty..................................000100000700000800000900
001700001900002000002200
002300014501
DISTRICT OF COLUMBIA
DistrictofColumbia.................................004700004901006002006400
007200007401007404007406
007408007504008803008804
008904009602009801009802
009806009808009904
FLORIDA
AlachuaCounty.....................................000200000600000901000902
001502001902
BayCounty.........................................001800
BrevardCounty .....................................060700062600
BrowardCounty.....................................030301030402041400041500
041600041700060303080500
100500
Collier County . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .011204011205
DuvalCounty.......................................000400001000001300001500
001600001700001800002600
002901011500
EscambiaCounty....................................000400001500001700001800
002000
Hillsborough County. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .000700001800003000003200
003400003600003900004000
004300010807010808012900
LeeCounty.........................................000302000502000600
LeonCounty........................................000500000600001001001101
001200001400002001002002
MarionCounty......................................001700001800
Miami-DadeCounty.................................000408000503000703000803
Ju
ly 21, 2003
9620
03-29 I.R.B.

State and County or County
EquivalentQualified Census Tracts
FLORIDA (cont.)
Miami-Dade County (cont.). . . . . . . . . . . . . . . . . . . . . . . . . . .000903001004001401001402
001501001502001702001801
001803001901001903001904
002001002003002004002401
002402002500002600002800
003001003003003004003100
003400003601003602003701
003702003907004402004901
005201005202005301005302
005402005703006602009310
010206010602010800010900
011001011300
OrangeCounty......................................010400010500010600011400
011702011901014502
Palm Beach County. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .001404001909002200002400
002600006801008201008202
008301
PinellasCounty .....................................020500020700020900021000
021200021300021600
PolkCounty ........................................010100010200011000011201
012004013300013701
St.LucieCounty....................................000100000200000300
SeminoleCounty....................................020500
VolusiaCounty......................................081500081900082000082100
GEORGIA
BenHillCounty.....................................960400
BibbCounty........................................010100010400010500010600
010700011100011200011300
011400011500012700012900
013000
BurkeCounty.......................................950400950800
CarrollCounty......................................990502
ChathamCounty ....................................000100000601001100001200
001800001900002000002300
002400002800003200004400
010101
ClarkeCounty ......................................000100000400000900001900
030200
ClayCounty........................................960100
CobbCounty........................................030800
ColquittCounty.....................................970300
Decatur County . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .970400
DeKalbCounty .....................................020600022100023802
DoughertyCounty...................................000100000200000300000800
001200001300001401001402
001500010302010601010700
EvansCounty.......................................970300
FloydCounty.......................................001500
FultonCounty.......................................000800001000001700001900
002100002200002300002400
002500002600002800003300
003500003700003800003900
004100004300004400004600
004800005501005502005600
005700006200006300006400
006602006700006802006900
007002007100007200007300
007400007601007808008202
008301008302008400008500
20
03-29 I.R.B.
97Ju
ly 21, 2003

State and County or County
EquivalentQualified Census Tracts
GEORGIA (cont.)
FultonCounty(cont.)................................008601008602008701008702
010900011000011201
GlynnCounty.......................................000700000800
HallCounty.........................................000800
HancockCounty.....................................980100980200
HoustonCounty.....................................020400
LaurensCounty.....................................950300950900
LibertyCounty......................................010100
LowndesCounty ....................................010500010800010900011000
011302
MitchellCounty.....................................980300
MuscogeeCounty...................................000300000500001300001400
001500001600001800002200
002400002500002700002800
003000003200003400010800
011000
RichmondCounty...................................000200000300000600000700
000900001300001400001500
010300010400010504010600
ScrevenCounty .....................................970200
SpaldingCounty ....................................160400
StewartCounty......................................950200
TerrellCounty.......................................980300
ThomasCounty.....................................960100
TiftCounty.........................................990600
WareCounty........................................950400950700950800
HAWAII
HonoluluCounty....................................003900005200005400005700
005800006202006302008610
009501009502009503009505
010801
KalawaoCounty.....................................031900
KauaiCounty.......................................041000
MauiCounty........................................031300
IDAHO
CanyonCounty......................................020200
OwyheeCounty.....................................940300
ILLINOIS
AdamsCounty......................................000400000700000800
AlexanderCounty...................................957900
ChampaignCounty..................................000100000300000700005200
005300006000
CookCounty........................................031200031500031600050400
080500080800081900222300
222600222800222900230100
230200230300230900231100
231500231600231700240100
240600240700241000241100
242700251700251900260100
260300260400260500260600
260700260800270200270300
270500270600270700271100
271200271300271400280400
280500280600280800280900
281000281300281400281500
282700283500283600283800
283900284000284100284200
Ju
ly 21, 2003
9820
03-29 I.R.B.

State and County or County
EquivalentQualified Census Tracts
ILLINOIS (cont.)
CookCounty(cont.).................................290200290300290400290500
290600290700290900291000
291100291200291300291400
291500291600291700291800
291900292000292200300100
300200300400300700300800
300900301000301200301300
301400301500310100310500
310600310800310900311000
311200320400330300340400
340600350200350400350600
351100351400351500360100
360200360300360400370100
370200370400380100380200
380500380600380700380800
381300381400381500381600
381700381800382000390300
390400400100400200400300
400500400600400700400800
410400420400420500420600
420700420800420900421100
430300430500430700431300
440100440800460100460200
460600460700460800460900
461000490200491400500200
540100560200610200610300
610400610500610600611100
611200611300611400611700
611800611900612000612100
630100670200670300670600
670800670900671000671100
671200671500671700680100
680200680300680400680500
680600680700680900681000
681100681200681300690100
690200690300690700710100
710200710900821500826800
826901826902829000829100
CrawfordCounty....................................980400
DeKalbCounty .....................................001000001100001200
FranklinCounty.....................................041000
GreeneCounty......................................973900
JacksonCounty .....................................011100011200011300011400
JeffersonCounty ....................................050900051000
KaneCounty........................................853700
KankakeeCounty....................................011000011600012300
LakeCounty........................................862300862605862700862902
McDonoughCounty.................................010500
McLeanCounty.....................................000200
MaconCounty......................................000100000300000600000700
000800000900001000
MadisonCounty.....................................400300400700400901
MarionCounty......................................952500
PeoriaCounty.......................................000100000200000300000500
000600000700000800000900
001200001300001500
RockIslandCounty..................................020600022300022600023600
St.ClairCounty.....................................500400500500500600500900
502200502401502500502700
502800504201504500
20
03-29 I.R.B.
99Ju
ly 21, 2003

State and County or County
EquivalentQualified Census Tracts
ILLINOIS (cont.)
SalineCounty.......................................955500
SangamonCounty...................................000800000900001400001500
001600001700002400002802
StephensonCounty..................................000700
VermilionCounty....................................000100000200000300
WhiteCounty.......................................958000
WillCounty.........................................881900882000
WinnebagoCounty..................................001000001100001300002100
002400002500002600002800
INDIANA
AllenCounty .......................................001600001700002100002700
DelawareCounty....................................000100000200000300000400
000600000902001901
ElkhartCounty......................................002600002800
FloydCounty.......................................070200
HenryCounty.......................................976300
LakeCounty........................................010202011400011900012100
012200020600030100030300
031000
LaPorteCounty .....................................040200
MadisonCounty.....................................000500
MarionCounty......................................330801350300350700350800
350900351100351600351700
352800353100353500353600
354400354700355000355600
355700356900357200
MonroeCounty .....................................000201000600
St.JosephCounty...................................002800
Tippecanoe County . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .005500010300010500
VanderburghCounty.................................001900002500002600
VigoCounty........................................000100000300000500000800
010500
WayneCounty ......................................000200
IOWA
BlackHawkCounty .................................000100000900
DubuqueCounty ....................................000100
JohnsonCounty.....................................002100
PolkCounty ........................................004900005000005200
ScottCounty........................................010800010900
StoryCounty........................................000500
WebsterCounty.....................................000700
WoodburyCounty...................................001500001600
KANSAS
DouglasCounty.....................................000400
GearyCounty.......................................000100000200
MontgomeryCounty.................................950500950900951200
RenoCounty........................................000600000800
RileyCounty........................................000802001000
SalineCounty.......................................000200
SedgwickCounty....................................000600000800000900001800
002600003700006800
ShawneeCounty ....................................000400000500001100001200
004000
WyandotteCounty...................................040300040800041000041100
041200043000
Ju
ly 21, 2003
10
0
20
03-29 I.R.B.

State and County or County
EquivalentQualified Census Tracts
KENTUCKY
BellCounty.........................................960100960900961000
BreathittCounty.....................................980400980700
CampbellCounty....................................050100
ClayCounty........................................950100950400950500950600
FayetteCounty......................................000400000801000900001800
FloydCounty.......................................980800
HarlanCounty ......................................970300970600971000971100
971200
JeffersonCounty ....................................000600001800002300002400
002700003000003500003700
004301004302005900006200
KnoxCounty .......................................990100
LawrenceCounty....................................990300
LetcherCounty......................................950300
LewisCounty.......................................990400
McCrackenCounty..................................030100030200030300030400
McCrearyCounty ...................................960100960200960400
MadisonCounty.....................................010500
MartinCounty ......................................950100950300
OwsleyCounty......................................990200
PerryCounty........................................970700
WarrenCounty......................................010200
Whitley County . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .980800
LOUISIANA
BossierParish.......................................010400011300
CaddoParish........................................020400020600020800020900
021300021700023300023700
024601
CalcasieuParish.....................................000400
EastBatonRougeParish .............................000200001000001104001300
001500002100002200002800
003102
EastCarrollParish...................................990300
EvangelineParish ...................................950500950600
IberiaParish........................................030800
JeffersonParish .....................................020600026200027602
LafayetteParish.....................................000800000900
LincolnParish.......................................960900
MadisonParish......................................960300960400
NatchitochesParish..................................990700
OrleansParish.......................................000200000300000601000603
000901000902000903001301
001304001500001600001714
001733001900002000002700
002800002900003000003305
003306003500004401004402
004500004800004900006000
006700006800006900007100
007200008101008500008600
008700009200009301009302
009400013100
OuachitaParish .....................................000600000700000900001100
001500010700
RapidesParish......................................011000011100011400011900
012000012700
St.LandryParish....................................961300961600
St.MaryParish .....................................041600
VermilionParish.....................................950800
WebsterParish......................................031700
20
03-29 I.R.B.
10
1
Ju
ly 21, 2003

State and County or County
EquivalentQualified Census Tracts
MAINE
AndroscogginCounty................................010100020100020400
CumberlandCounty .................................000500
MARYLAND
AlleganyCounty ....................................000300000500000700000800
001000001503002100002200
AnneArundelCounty................................740105
BaltimoreCounty....................................401602421300450504450800
490605491401
DorchesterCounty...................................970500
FrederickCounty....................................750100750300
GarrettCounty......................................000700
HarfordCounty .....................................302901
PrinceGeorge’sCounty..............................803200803401803509804300
804800805601805602
SomersetCounty....................................980101980200980600
WashingtonCounty..................................000302000400000700000900
WicomicoCounty...................................000100000300000500010200
WorcesterCounty ...................................990300
BaltimoreCity......................................030100050100060100060200
060300060500070100070200
070300070400080102080200
080301080302080400080500
080600080700080800090400
090500090600090700090800
090900100100100200100400
120400120500120700130100
130200130300130400130804
140200140300150100150200
150300150400150500150600
150800151200151300160100
160200160300160400160500
160600160700160802170100
170200170300180100180300
190100190300200100200200
200300200400200500200600
200701200702200800210100
210200230300250203250204
250207250301250302250402
250500260202260303260401
260402260404260501260604
260700260800261000270701
271700271801271802280301
280404
MASSACHUSETTS
BarnstableCounty...................................012300012400014100
BerkshireCounty....................................900100900200900600901200
921100921400
BristolCounty ......................................640200640300640600640900
641000641100641200641300
641400641900642000650600
650700650800650900651100
651200651300651400651500
651700651800651900652400
652500652600652700
EssexCounty.......................................204300206000206800206900
207000207200250100250300
250400250500250600250700
Ju
ly 21, 2003
10
2
20
03-29 I.R.B.

State and County or County
EquivalentQualified Census Tracts
MASSACHUSETTS (cont.)
EssexCounty(cont.).................................250900251000251100251200
251300251500251600
HampdenCounty....................................800100800600800700800800
800900801101801102801200
801300801401801700801800
801900802000802200802300
810800810901811400811500
811600811700811800812300
HampshireCounty...................................820102820400
MiddlesexCounty...................................302200310100310400310800
311000311100311900312400
352400383100
NorfolkCounty .....................................417802
PlymouthCounty....................................510900511000
SuffolkCounty......................................000602010300050200050300
050400050700060700061000
061100070200070400071200
080100080300080400080500
080600080800081000081200
081300081700082100090300
090400091300091700091800
092400100100101102160200
160400
WorcesterCounty ...................................710500710700731201731202
731300731400731500731600
731700731800731900732001
732400732500732600732700
757200757300
MICHIGAN
BayCounty.........................................280100280200
BerrienCounty......................................000300000400000500000600
002100002200002300
CalhounCounty.....................................000400000600000700
ClareCounty........................................980100
GeneseeCounty.....................................000200000400000700000800
001000001100001400001500
001700001800001900002000
002200002300002500002600
002800003200003400003800
010304012202
GladwinCounty.....................................990800
HoughtonCounty....................................990300
InghamCounty......................................000700001300001500002000
004200004302004402
JacksonCounty .....................................000200000600001100
KalamazooCounty ..................................000202001504001507
KentCounty........................................001400002000002600002800
003100003600003800
LakeCounty........................................960600
MarquetteCounty...................................000500002400
MuskegonCounty...................................000200000300000500000602
001200001300001402
OaklandCounty.....................................141200141700142300142500
172400
OgemawCounty ....................................950700950800
OscodaCounty......................................970300
RoscommonCounty.................................970200970800
SaginawCounty.....................................000100000200000400000600
000700000800000900001000
20
03-29 I.R.B.
10
3
Ju
ly 21, 2003

State and County or County
EquivalentQualified Census Tracts
MICHIGAN (cont.)
SaginawCounty(cont.) ..............................001100001300001800
St.ClairCounty.....................................624000625000
St.JosephCounty...................................040200
ShiawasseeCounty..................................030600
WashtenawCounty..................................400200402200410600411000
411100411200
WayneCounty ......................................500400501700503400503600
503700503900504100504500
504600504700504800507400
507600507700507800508000
510400510500510700510800
510900511200511600512100
512200512300512400512600
512900513600513900514000
514100514300514500514600
514700514800514900515100
515200516100516300516600
516800517200517600517800
518400518500518600518800
520100520300520400520500
520600521300521800522100
522200522300522400523100
523200523500523600523700
524000524300525100525200
525300525400525500525700
526000526400526500530700
530800531100531500531600
531700531800531900532400
532500532700533000533100
533300533500533600533700
534100534500537200537800
543500543600543700543800
543900544200545100545200
545300545400552100552300
553200553300553400553800
573500584800586000
MINNESOTA
BeltramiCounty.....................................950800
HennepinCounty....................................002200003300003501005901
005902006800007301007700
007801007802007900008300
008400101400101500101600
102100102800102900103400
104100104800105400105700
106000106900107000107100
107200
ItascaCounty.......................................980200
MowerCounty......................................000410
PolkCounty ........................................020200
RamseyCounty.....................................030500032700032900033100
033700040802
St.LouisCounty....................................001300001400001600001700
001800001900002500002800
003200012200
StearnsCounty......................................000100
MISSISSIPPI
AdamsCounty......................................000400
CoahomaCounty....................................950600
Ju
ly 21, 2003
10
4
20
03-29 I.R.B.

State and County or County
EquivalentQualified Census Tracts
MISSISSIPPI (cont.)
ForrestCounty......................................000100000500
HindsCounty.......................................001100001800002000002700
010801
JacksonCounty .....................................041200
LauderdaleCounty ..................................000100000400000600
LefloreCounty......................................950200950800950900
PikeCounty ........................................950300
WashingtonCounty..................................000400001100
YazooCounty.......................................950500
MISSOURI
AdairCounty .......................................951000
BooneCounty.......................................000100000401000402000500
000800000900
BuchananCounty....................................001000
ButlerCounty.......................................950500950700
CapeGirardeauCounty ..............................981400
ClayCounty........................................020000
ColeCounty........................................010100
DunklinCounty.....................................960100
GreeneCounty......................................000100000200000500000800
001900005500
HickoryCounty.....................................970300
HowellCounty......................................990200990700
JacksonCounty .....................................001400001500001600001700
002100002200002400002900
003200003502003602005500
005801005901006300
MarionCounty......................................960800
OregonCounty......................................980100
PemiscotCounty....................................970200970400
St.LouisCounty....................................213900214100
ShannonCounty.....................................970200
St.LouisCity.......................................105400106100106200106300
106600109700110200110500
111200111400111500112300
116400118100119300120100
120300121100121200121300
122400124100124200124600
125700126600126700
MONTANA
BlaineCounty.......................................940200
CascadeCounty.....................................000600
ChouteauCounty....................................940100
DanielsCounty......................................940200
SheridanCounty.....................................940200
YellowstoneCounty .................................000300
NEBRASKA
BlaineCounty.......................................972400
DouglasCounty.....................................000500000700000800001100
001200001600001900005200
005300
LancasterCounty....................................000700
SarpyCounty.......................................010302
NEVADA
ClarkCounty .......................................000400000503000504000700
000800000900001100002204
20
03-29 I.R.B.
10
5
Ju
ly 21, 2003

State and County or County
EquivalentQualified Census Tracts
NEVADA (cont.)
ClarkCounty(cont.).................................002404002405002406002506
002706002955004300004400
004707004710004713
ElkoCounty........................................940300
WashoeCounty .....................................000100000900001004
NEW HAMPSHIRE
Hillsborough County. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .001400001500001600001900
010700
NEW JERSEY
AtlanticCounty.....................................000100000400001100001400
001500001900002300002400
002500
BurlingtonCounty...................................701204702101702109
CamdenCounty.....................................600100600200600300600400
600500600700600800600900
601000601101601102601200
601300601400601500601600
601700601800601900602000
605000607701608204
CapeMayCounty...................................020500021400021500
CumberlandCounty .................................010200020100020200020300
020501040100040200040500
EssexCounty.......................................000200000300000700000900
001000001300001400001500
001600001700001800001900
002600002700002800002900
003000003100003400003500
003800003900004000004100
004200004300004600004801
004802004900005000005300
005400005700005800006200
006600006700006800006900
007501007502008000008100
008200008600008700008800
008900009000009100009200
009300009600009700010600
010900011100011300013100
013200013300018300018400
018600022700022800
GloucesterCounty...................................501402
HudsonCounty .....................................000200001202001601001700
001800003000003100003300
004102004200004400004600
005100005500005801015100
015300015500015600015900
016000016200016300016400
016500016600016700016800
016900017000017200017400
017500017600017700019000
032400
MercerCounty......................................000800000900001000001100
001401001402001500001600
001700001900002000
MiddlesexCounty...................................004600005300005500005600
005800005900
MonmouthCounty...................................805600805800807003807200
807300807600809903
MorrisCounty ......................................045601
Ju
ly 21, 2003
10
6
20
03-29 I.R.B.

State and County or County
EquivalentQualified Census Tracts
NEW JERSEY (cont.)
Ocean County. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .715200715302715402720101
720102720103722200731201
731202731203731204731205
731206
PassaicCounty......................................125100175200175300175400
175500175800175900180400
180500180700180800180900
181200181300181400181500
181702181800182000182200
182300182800182900183000
183200
SalemCounty.......................................020300022000022100
UnionCounty.......................................030200030300030400030600
030801031000031100031200
031901039300
NEW MEXICO
Bernalillo County. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .000901940300
CibolaCounty ......................................945900
CurryCounty.......................................000100
DonaAnaCounty ...................................001000001704
LeaCounty.........................................000300
LunaCounty........................................000600
McKinleyCounty ...................................940200943400
RioArribaCounty...................................000600943300
SandovalCounty....................................940900943300
SanJuanCounty ....................................942900
SocorroCounty .....................................946100
NEW YORK
AlbanyCounty......................................000200000600000800002100
002500002600
BronxCounty.......................................001500001700002000002300
002500002701002702003100
003300003500003700003900
004100004300004400004600
004700004800004900005000
005200005302005400005600
005800005901006000006200
006500006600006700006900
007300007500007700007900
008300008500008600008700
008900009100009900010500
011000011501011502011900
012101012102012300012701
012901012902013100013300
013500013700013900014100
014300014500014700014900
015100015300015500015700
016100016500016700016900
017300017500017700017900
018100018900019300019500
019600019700019900020100
020500021100021301021302
021501021502021701021702
021900022000022100022300
022500022701022702022901
022902023100023301023302
023501023502023701023702
023900024100024200024300
20
03-29 I.R.B.
10
7
Ju
ly 21, 2003

State and County or County
EquivalentQualified Census Tracts
NEW YORK (cont.)
BronxCounty(cont.) ................................024500025300025500026300
026500026700027101027700
032400033400035900036100
036300036501036502036700
036901036902037100037300
037400037501037502037503
037700037900038100038300
038500038700038900039100
039300039700039901039902
040100040302040500040701
041900042500045800
BroomeCounty.....................................000300000500000600001100
001200001300013500013900
CattaraugusCounty..................................940000940200961700
ChautauquaCounty..................................030300030500940000
ChemungCounty....................................000100000700000800001000
ClintonCounty......................................101600
ColumbiaCounty....................................991200
DutchessCounty....................................220300220400220700
ErieCounty.........................................000300000400000500001302
001402001500001600001800
002000002502002600002701
002702002800002900003100
003201003202003301003302
003400003500003600003700
003901004002004402005600
006000006100006900007000
007101007102008300012100
016100940000
FultonCounty.......................................990800
GeneseeCounty.....................................940100
HerkimerCounty....................................010600
JeffersonCounty ....................................062100
KingsCounty.......................................001100001800002000002300
002500002901003700005900
008500009000010400011200
012700018501022500022600
022800023500023900024100
025500025901025902026100
027700028100028300028502
028700030300030700031100
031300032600033000033100
034000034200034300034700
034802035200035300035700
035900036002036100036200
036300036900038100038200
038900039100039500039700
039900040100040900041100
041300041500041700041900
042100042300042500042700
042900043100043300043900
044100044300044700045300
046500048900049300050800
050900051600052300052500
052700052900053100053300
053500053700053900054500
054700057200057900089000
089200090000090200090600
090800091000091200091400
091600094402098200103400
Ju
ly 21, 2003
10
8
20
03-29 I.R.B.

State and County or County
EquivalentQualified Census Tracts
NEW YORK (cont.)
KingsCounty(cont.).................................110600111000111400112000
112600113000113200113400
113600113800114000114800
115000115200115400115600
118800119000119400121000
121400
MonroeCounty .....................................000200000700001300001500
002200002300002400002700
003200003900004000004100
004602004800004900005000
005100005200005300005500
005600005700005900006400
006500006600006900007900
008000008900009200009301
009302009400009601009602
009603009604
MontgomeryCounty.................................070900
NewYorkCounty ...................................000201000600000800001002
001600001800002000002400
002500002900004100011700
015602016200016400016600
017201017202017401017800
018000018200018400018600
018800019000019200019400
019600020200020400020901
020902021301021302021702
021900022200022301022400
022600022702022900023000
023102023200023300023400
023501023502023900024301
024302024500024900025100
026100026700026900027700
028300028500028900029100
029300
NiagaraCounty .....................................020200020600020900021100
021200021300
OneidaCounty......................................020100020300020701020802
020803020900021000021101
021201021404021500021800
022000022600
OnondagaCounty ...................................000500001300001400001600
002000002100002200002300
002400003000003200003400
003500003900004000004200
004300005200005300005400
005500005602005800006101
OntarioCounty......................................051800
OrangeCounty......................................000400000500001700015001
015002
QueensCounty......................................002500002900003700004300
008700010700024800025000
026000054500054900086500
087100095200097201097202
122702156700
RensselaerCounty...................................040400
RichmondCounty...................................002900013301018500
RocklandCounty....................................011503
St.LawrenceCounty.................................991100
SchenectadyCounty.................................020800020900021001021002
021400021500021700
20
03-29 I.R.B.
10
9
Ju
ly 21, 2003

State and County or County
EquivalentQualified Census Tracts
NEW YORK (cont.)
WarrenCounty......................................070200
WestchesterCounty..................................000103000500001000001101
003100
NORTH CAROLINA
BuncombeCounty...................................000100000200000900
CumberlandCounty .................................000200001000001300
DavidsonCounty....................................061400
DurhamCounty.....................................000500000900001100001201
001202001400001501
EdgecombeCounty..................................020100
ForsythCounty......................................000400000500000700000801
000802001602
GastonCounty......................................031900
GuilfordCounty.....................................011000011101011400013900
014408
LeeCounty.........................................030300
LenoirCounty ......................................010300010400010500
MecklenburgCounty.................................000600000700002300003700
003901004500004700005000
005100005200
NashCounty........................................010100
NewHanoverCounty................................011000011100011400
OnslowCounty......................................000800000900001900002000
OrangeCounty......................................011600
PasquotankCounty..................................960300
PittCounty .........................................000701000702
RobesonCounty.....................................960800
SurryCounty .......................................990400
VanceCounty.......................................960600960700
WakeCounty .......................................050800050900051100052405
WayneCounty ......................................001600001700001800
WilsonCounty......................................000200000801
NORTH DAKOTA
GrandForksCounty.................................010300
MercerCounty......................................940300
SiouxCounty.......................................940100940200
WardCounty........................................940300
OHIO
AllenCounty .......................................012500012800012900013400
013600013700013800
AthensCounty......................................973101973102
BelmontCounty.....................................011500011600012100
ButlerCounty.......................................000300000400000702010104
012900
ClarkCounty .......................................000100000200000901
ColumbianaCounty..................................952100
CuyahogaCounty ...................................101200101800102600102700
102800103100103300103400
103500103800103900104100
104200104400104500104600
104701104800104900105100
106400107200107500107700
107900108200108300108400
108600108700108800108900
109300109600109700109800
110500110800111100111200
111300111401111402111500
Ju
ly 21, 2003
11
0
20
03-29 I.R.B.

State and County or County
EquivalentQualified Census Tracts
OHIO (cont.)
Cuyahoga County (cont.) . . . . . . . . . . . . . . . . . . . . . . . . . . . . .111600111700111800111901
111902112100112200112400
112600112700112900113100
113200113300113500113600
113700113800113900114100
114200114300114400114500
114600114700114800114900
115200115300115500116100
116500116600116700116800
116900117300118601118602
118700119202119300119402
119502119600119702119800
119900120100120200120802
121300121401121600150300
150400151400151500151800
FairfieldCounty.....................................031700
FranklinCounty.....................................000720000730000910000920
001110001200001300001400
001500001600001700001810
002300002600002710002800
002900003000003600004200
005000005100005300005410
005610006000006100007410
009326009331
GuernseyCounty....................................977600
Hamilton County . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .000200000301000302000900
001000001100001500001600
001700002100002300002800
003200003400003500003600
003700003800004702006700
007400007700008000008502
008601008700008900009100
010002
JeffersonCounty ....................................000200000800000900
LawrenceCounty....................................050600
LickingCounty .....................................750100
LorainCounty ......................................070800
LucasCounty.......................................000800001202001700001800
002200002300002500002700
002900003000003300003400
003500003600003700003800
004100004200004301005100
005400
MahoningCounty...................................800200800500800600800700
800900801000801600801700
801900802000802100802200
802300802400803100803400
803500803700804400810300
MontgomeryCounty.................................000300001200001700002200
002300003500003600003700
004000004100004300060200
070201
MuskingumCounty..................................981900
PortageCounty......................................601502
RichlandCounty ....................................000100000200000300000600
000700
RossCounty........................................956500
SciotoCounty.......................................993500993600
StarkCounty........................................700100700500701800702300
710400713800
20
03-29 I.R.B.
11
1
Ju
ly 21, 2003

State and County or County
EquivalentQualified Census Tracts
OHIO (cont.)
SummitCounty .....................................501100501200501301501302
501700501800502500503400
504200504400505300505600
506700506800506900507400
510100
TrumbullCounty....................................920100920500920600920800
932400
WashingtonCounty..................................020500
WoodCounty.......................................021800
OKLAHOMA
BryanCounty.......................................996400
CanadianCounty....................................300400
ClevelandCounty ...................................201201
ComancheCounty...................................001200001300001700
GradyCounty.......................................000100
JacksonCounty .....................................968700
MuskogeeCounty...................................000600
OklahomaCounty...................................102500102600102800102900
103000103500103602103700
103800103900104100104200
104700105400105600105800
PayneCounty.......................................010400010500
Pittsburg County . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .986300
PontotocCounty ....................................989100
PottawatomieCounty................................500200
TulsaCounty........................................000500000600001300002100
004600008001
OREGON
JacksonCounty .....................................000100000202
JosephineCounty....................................360701
KlamathCounty.....................................971600
LaneCounty........................................003800
MalheurCounty.....................................970400
MultnomahCounty..................................003301003402
PENNSYLVANIA
AlleghenyCounty...................................010300020300040600050100
050700050900051000051100
101600101700111500120300
120400120800130100130300
130400150400160400160600
192100220400250300250700
250900260900280800464400
486700486900505000512900
513800514000551900552100
560400561000561100
BeaverCounty......................................604500
BerksCounty.......................................000100000200001200002200
002300002500002600
BlairCounty........................................100700101900
CambriaCounty.....................................000100000200000300000800
000900001000001100001300
001400
CentreCounty ......................................012100012500
ClintonCounty......................................970600
DauphinCounty.....................................020600020700021300021400
DelawareCounty....................................405200405800
Ju
ly 21, 2003
11
2
20
03-29 I.R.B.

State and County or County
EquivalentQualified Census Tracts
PENNSYLVANIA (cont.)
ErieCounty.........................................000100000700000800001200
001300001400001500001800
FayetteCounty......................................262300
LackawannaCounty.................................100200
LancasterCounty....................................000100000800000900001400
001500001600
LawrenceCounty....................................000400000600000900
LebanonCounty.....................................000300
LehighCounty......................................000800000900001000001100
001200001300
LuzerneCounty.....................................201000214100217400
LycomingCounty ...................................000400000800
MercerCounty......................................030200030600030700030800
NorthamptonCounty.................................010500
NorthumberlandCounty..............................961700
PhiladelphiaCounty .................................000200001900002000002100
002800003000003100003200
003400003500003600004600
005100005600006600006700
006900007400007700008900
009200009300009500010200
010500010600010700010800
010900012700013100013800
013900014000014100014500
014700014800015100015200
015300015500015700016100
016200016300016400016500
016600016700016800016901
017100017200017400017500
017601017602017700017800
018200018900019000019200
019300019400019500019600
019700019800019900020300
020500024100024500024600
028700028800029300032200
VenangoCounty.....................................200700
WashingtonCounty..................................704100
WestmorelandCounty................................800100800700
YorkCounty........................................000200000300000700001000
001100001500001600
RHODE ISLAND
NewportCounty.....................................041200
ProvidenceCounty ..................................000200000300000500000600
000700000900001000001200
001300001400001700001900
002000002200002500002600
002700010800011100015100
015200015300015400016600
018000018100
SOUTH CAROLINA
CharlestonCounty...................................000900001000001100001300
001400003300003400003600
003700004300004500
DarlingtonCounty...................................010700
FlorenceCounty.....................................000700
GreenvilleCounty...................................000800000900002108002303
002304
20
03-29 I.R.B.
11
3
Ju
ly 21, 2003

State and County or County
EquivalentQualified Census Tracts
SOUTH CAROLINA (cont.)
LancasterCounty....................................010700
OrangeburgCounty..................................011200011300
RichlandCounty ....................................000500000900001000001300
001400002002002800010900
SpartanburgCounty..................................020301020400020500020800
021001
SumterCounty......................................000897000898001500
SOUTH DAKOTA
BennettCounty .....................................940600940800
BuffaloCounty......................................940100
CorsonCounty......................................940500940700940800940900
DeweyCounty......................................941600
JacksonCounty .....................................940100940200
LymanCounty......................................940100
ShannonCounty.....................................940300940400940600940700
ToddCounty........................................940100940200
ZiebachCounty.....................................941200941400941500
TENNESSEE
AndersonCounty....................................020700
BradleyCounty .....................................010400010700
CampbellCounty....................................950300
ClaiborneCounty....................................970400
CoffeeCounty ......................................970900
DavidsonCounty....................................011800012400012500013600
013900014000014200014300
014400014800016200
HamblenCounty....................................100300
Hamilton County . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .000300001200001500001600
001900002000
HancockCounty.....................................960100960300
KnoxCounty .......................................000200000400000600000700
001200001300001400002400
002800
MadisonCounty.....................................000500000800001000001100
MontgomeryCounty.................................100400100900
ScottCounty........................................975300
ShelbyCounty......................................000200000300000400000500
000800000900001800001900
002000002100002200002300
002400002800003700003800
004000004100004400004500
004600004700004800004900
005000005100005400005700
005800005900006000006700
007810008110008400010300
010420022022
WashingtonCounty..................................060700060900
TEXAS
BeeCounty.........................................950500
BellCounty.........................................020702020900022600022801
022900023500
BexarCounty.......................................110200110500110600110700
110800110900111000130100
130300130500130600130700
141000150300150800160100
160900170101170102170200
170300170401170900171000
Ju
ly 21, 2003
11
4
20
03-29 I.R.B.

State and County or County
EquivalentQualified Census Tracts
TEXAS (cont.)
BexarCounty(cont.).................................171200181003191004
BowieCounty.......................................010500010600
BrazosCounty......................................001400
BrewsterCounty ....................................950400
BrooksCounty......................................950200
BrownCounty ......................................950600950700
CameronCounty....................................010500010900011000011100
011600011700011903012200
012303012304012507012604
012609012610012700013203
013207013208013305013306
013307013308013309013401
013402013700013801013802
013901013902013903014001
014002
CherokeeCounty....................................950400950500950700
DallasCounty.......................................000405001503002000002701
002702002900003400003500
003800003901003902004000
004100004800007201007202
008603008604008703008704
008900009304009804010200
010400011401011500012208
019013019209
DimmitCounty .....................................950100
EctorCounty........................................001100001200001500001800
001900002000
ElPasoCounty......................................000301000302000404000800
000900001203001400001600
001700001800001900002000
002100002201002202002600
002800002900003000003200
003602003701003702003901
003903004105010102010208
010309010319010403010404
010501010502010503010504
FallsCounty........................................990400
FrioCounty.........................................950300
GalvestonCounty ...................................724000724600
GrayCounty........................................950600950800
GreggCounty.......................................001400
GrimesCounty......................................180104
HaleCounty........................................950200
HarrisCounty.......................................210400210800210900211000
211100211200211300211400
211700220500220800220900
222600222700230300230400
230700230900231000233600
240500310200310500310900
311600312200312300312400
312800313500313600321500
322000331200331400332100
420100420500421200421400
421500421600422200423100
433100433500453100533300
HidalgoCounty.....................................020100020202020501020503
020600020723021100021301
021302021303021500021600
021801021802021901021902
022002022101022102022202
20
03-29 I.R.B.
11
5
Ju
ly 21, 2003

State and County or County
EquivalentQualified Census Tracts
TEXAS (cont.)
HidalgoCounty(cont.)...............................022501022502022600022702
022800023000023101023102
023503023506023508023700
024101024102024103024104
024105024201024202024301
024302024401024402024500
024600
HillCounty.........................................960900961000
HockleyCounty.....................................950400
HowardCounty .....................................950300
HudspethCounty....................................950100
JeffersonCounty ....................................000600000700000900005300
005900006100006300
JimWellsCounty....................................950500
KlebergCounty .....................................020200
LamarCounty.......................................000600
LambCounty.......................................950500
LaSalleCounty.....................................950100950200
LimestoneCounty...................................970400
LubbockCounty.....................................000202000301000500000603
000605000607001000001200
002400
McLennanCounty...................................000400000598001100001200
001400001500001900003300
MaverickCounty....................................950100950201950202950203
950500950601950602
MidlandCounty.....................................000900001400001600001700
MontgomeryCounty.................................693400
NacogdochesCounty ................................950700950900
NolanCounty.......................................950300
Nueces County . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .000400000500000900001000
001100001200001300001500
001601005602
PotterCounty.......................................010600012000012200012800
013000014600014800
PresidioCounty.....................................950200
ReevesCounty......................................950100950200950300950500
SmithCounty.......................................000202000300000400000700
StarrCounty........................................950102950103950201950202
950400950500950600950701
950702
TarrantCounty......................................100300101000101100101600
101700102500103100103500
103601103701103800103900
104000104604106516122200
TaylorCounty.......................................010700010800011700011900
TerryCounty........................................950300
TitusCounty........................................950600950700
TomGreenCounty ..................................000500000700000900
TravisCounty.......................................000604000802000804001000
002311002316
ValVerdeCounty....................................950601950602
WalkerCounty......................................790600
WebbCounty.......................................000103000104000300000400
000500000600000700000902
001002001200001300001801
001804001805
WhartonCounty.....................................740300
WichitaCounty .....................................010100010400011100011300
Willacy County . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .950300950700
Ju
ly 21, 2003
11
6
20
03-29 I.R.B.

State and County or County
EquivalentQualified Census Tracts
TEXAS (cont.)
ZapataCounty ......................................950200
ZavalaCounty ......................................950100950200950301950302
UTAH
CacheCounty.......................................000702000800
DavisCounty.......................................125600
SaltLakeCounty....................................100302101400102100102400
111500
SanJuanCounty ....................................942000942100
UtahCounty........................................001601001602001603001801
001802001803001900002300
002400002500002800
WasatchCounty.....................................940300
WeberCounty.......................................200900201200201800201900
VERMONT
Chittenden County. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .000400
VIRGINIA
AlbemarleCounty...................................010902
AmherstCounty.....................................010502
BuchananCounty....................................990100990200990300990700
ChesterfieldCounty..................................100406
DickensonCounty...................................990100990200990300990400
HalifaxCounty......................................990100
HenricoCounty.....................................200805
JamesCityCounty...................................080102
LeeCounty.........................................990100990500990600
Prince William County . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .900903
RussellCounty......................................990100990600
ScottCounty........................................030200030300
SmythCounty.......................................990600
TazewellCounty ....................................990500991000
WiseCounty........................................991100991500
YorkCounty........................................050500
BristolCity.........................................020100020300
ChesapeakeCity.....................................020100020502
Danville City. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .000300000400000500000600
001000001300
FranklinCity........................................090200
HamptonCity.......................................010502010602011400
HopewellCity.......................................820300820700
LynchburgCity......................................000203000400000600000700
001200001300001400
MartinsvilleCity....................................000200000400
NewportNewsCity..................................030100030400030600030800
030900032300
NorfolkCity........................................000900001100001300001600
002500002600002700002900
003501003502004100004200
004300004400004600004700
004800005000005200005300
005901006501006502007001
PetersburgCity......................................810100810200810600810700
810800
PortsmouthCity.....................................210500211400211800211900
212000212100212400212600
213101
RichmondCity......................................010300010900011000020100
020200020400020700021000
20
03-29 I.R.B.
11
7
Ju
ly 21, 2003

State and County or County
EquivalentQualified Census Tracts
VIRGINIA (cont.)
RichmondCity(cont.) ...............................030100030200030500060100
060200060300060400060700
060800060900070600
RoanokeCity.......................................000200000700000800000900
001000001300001400
SuffolkCity.........................................065100065400065500
Virginia Beach City. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .040600043200045810
WaynesboroCity....................................003100003300
WASHINGTON
AdamsCounty......................................950400
AsotinCounty ......................................980400
BentonCounty......................................011200012000
ClarkCounty .......................................041005041600041700042400
042700
Cowlitz County . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .000300000502001000
FranklinCounty.....................................020100020200
GraysHarborCounty................................000100
IslandCounty.......................................970200970900
KingCounty........................................005301007300008500009100
009200026500029004030501
KitsapCounty.......................................080500080800090300
OkanoganCounty...................................970200
PierceCounty.......................................061400061602062200062801
071703071704071805071806
072000072904
SnohomishCounty ..................................040200040700041904
SpokaneCounty.....................................000200000400001400001600
002300002400002600003000
003300003500003600011101
013800
StevensCounty......................................951000
WallaWallaCounty..................................920500
WhitmanCounty....................................000500000600
YakimaCounty......................................000100000200000600001500
002001002300002500002701
WEST VIRGINIA
CabellCounty.......................................000500000600
KanawhaCounty....................................000900
McDowellCounty...................................953600953900
OhioCounty........................................000100000700000800
WISCONSIN
DaneCounty........................................001100001601001602003200
DouglasCounty.....................................020100020200
LaCrosseCounty ...................................000200000400
MilwaukeeCounty ..................................001100001200002000002100
002500002800004000004400
004600004700006300006400
006500006600006700006800
006900007000007900008000
008100008200008300008400
008500008600008700008800
008900009000009100009600
009700009800009900010000
010100010200010300010400
010500010600010700011500
011600011700011800012000
012200012300013400013500
Ju
ly 21, 2003
11
8
20
03-29 I.R.B.

State and County or County
EquivalentQualified Census Tracts
WISCONSIN (cont.)
MilwaukeeCounty(cont.)............................013600013700013800014000
014100014600014700014800
014900015000015400015600
015700015800016300016400
016500016600016700016800
016900017400017500017600
017700017800018800
RacineCounty......................................000400000500
WYOMING
AlbanyCounty......................................963500
NatronaCounty.....................................000200
PUERTO RICO
CatañoMunicipio ...................................020404
LofzaMunicipio.....................................110101110400
MayagnezMunicipio ................................081200
OrocovisMunicipio..................................954902
PonceMunicipio....................................070400070800071300
SanJuanMunicipio..................................001300003501004400004800
005402008201
YaucoMunicipio....................................750101
SECTION 5
. EFFECT ON OTHER
DOCUMEN
TS
Rev. Proc. 2003–15 is modified and
superceded by this revenue procedure. Is-
suers can continue to rely on Rev. Proc.
2003–15 until the effective date of this rev-
enue procedure, which is the date of publi-
cation of this revenue procedure in the In-
ternal Revenue Bulletin.
SECTION 6. EFFECTIVE DATE
Thisrevenueprocedureiseffectiveon
July 21, 2003.
SECTION 7. DRAFTING
INFORMATION
The principal authors of this rev-
enue procedure are Laura Lederman and
Timothy Jones of the Office of Chief
Counsel. For further information re-
garding this revenue procedure contact
Laura Lederman at (202) 622–3980 (not a
toll-free call).
26 CFR 601.105: Examination of returns and claims
for refund, credit or abatement; determination of cor-
rect tax liability.
(Also Part I, §§ 168, 179, 1400L; 1.179–5.)
Rev. Proc
. 2003–50
SECTION 1. PURPOSE
This revenue procedure amplifies and
modifies Rev. Proc. 2002–33, 2002–1
C.B. 963, by extending the relief provided
in Rev. Proc. 2002–33 to any taxpayer
that timely filed its 2000 or 2001 federal
tax return for the taxable year that included
September 11, 2001. This revenue pro-
cedure also permits an automatic exten-
sion of time to allow certain taxpayers to
change their selection of § 179 property for
the taxable year thatincluded September
11, 2001.
SECTION 2. BACKGROUND
.01 Rev. Proc. 2002–33 provided addi-
tional time for certain taxpayers that filed
their 2000 or 2001 federal tax return be-
fore June 1, 2002, to (1) claim the 30-per-
cent additional first year depreciation pro-
vided by §§ 168(k)(1) and 1400L(b) of the
Internal Revenue Code for a class of prop-
erty that is qualified property or qualified
New York Liberty Zone (Liberty Zone)
property placed in service after September
10, 2001, during the 2000 or 2001 taxable
year, (2)
elect the increased § 179 amount
provide
d by § 1400L(f) for § 179 prop-
erty th
at is Liberty Zone property placed
in serv
ice by the taxpayer after September
10, 20
01, during the 2000 or 2001 taxable
year
, and (3) depreciate under § 168 Lib-
erty
Zone leasehold improvement prop-
ert
y (as defined in § 1400L(c)(2)) placed
in
service by the taxpayer after Septem-
be
r 10, 2001, during the 2000 or 2001
t
axable year, as 5-year property using the
straight-line method of depreciation.See
sections 4.01, 4.03, and 4.04 of Rev. Proc.
2002–33.
.02 Rev. Proc. 2002–33 also ex-
plained how taxpayers may make the
election provided by § 168(k)(2)(C)(iii)
and § 1400L(b)(2)(C)(iv) not to deduct
the 30-percent additional first year depre-
ciation for any class of property that is
qualified property or Liberty Zone prop-
erty placed in service after September
10, 2001. Special provisions, including a
deemed election, were provided for tax-
payers that filed their 2000 or 2001 federal
tax return before June 1, 2002.Seesec-
tions 3 and 4.02 of Rev. Proc. 2002–33.
.03 The Treasury Department and the
Internal Revenue Service have learned that
some taxpayers were unaware of the relief
20
03-29 I.R.B.
11
9
Ju
ly 21, 2003

provided by Rev. Proc. 2002–33 or were
precluded from the relief because their fed-
eral tax returns for the taxable year that in-
cluded September 11, 2001, were filed on
or after June 1, 2002. As a result, Trea-
sury and the Service have determined that
it is appropriate to extend the relief pro-
vided in section 4 of Rev. Proc. 2002–33
to any taxpayer that timely filed its fed-
eral tax return for the taxable year that in-
cluded September 11, 2001. Treasury and
the Service also have determined that it is
appropriate to allow certain taxpayers ad-
ditional time to change their selection of
§ 179 property. Accordingly, section 3 of
this revenue procedure amplifies and mod-
ifies section 4 of Rev. Proc. 2002–33.
SECTION 3. PROCEDURES FOR
RETURNS TIMELY FILED FOR A
TAXABLE YEAR THAT INCLUDED
SEPTEMBER 11, 2001
.0130-Percent Additional First Year
Depreciation.
(1)In general. If a taxpayer timely filed
its federal tax return for a taxable year that
included September 11, 2001, and did not
claim on that return the 30-percent addi-
tional first year depreciation for a class of
property that is qualified property or Lib-
erty Zone property placed in service by the
taxpayer after September 10, 2001, during
the taxable year that included September
11, 2001, but wants to do so, the taxpayer
may claim the 30-percent additional first
year depreciation for that class of property
under this section 3.01, provided the tax-
payer did not make an election in the man-
ner described in section 3.02(1) or (2) of
this revenue procedure not to deduct the
30-percent additional first year deprecia-
tion for the class of property. The taxpayer
has the option of claiming the 30-percent
additional first year depreciation for the
taxable year that included September 11,
2001:
(a) by filing an amended federal tax re-
turn (or a qualified amended return under
Rev. Proc. 94–69, 1994–2 C.B. 804, if
applicable; hereinafter, referred to in this
document as a “qualified amended return”)
on or before December 31, 2003, for the
taxable year that included September 11,
2001, and any affected subsequent taxable
year, and including the statement “Filed
Pursuant to Rev. Proc. 2003–50” at the
top of any amended federal tax return (or
qualified amended return);
(b) by filing a Form 3115,Application
for Change in Accounting Method, with
the taxpayer’s timely filed federal tax re-
turn for the first taxable year succeeding
the taxable year thatincluded September
11, 2001, if this return has not been filed on
or before July 21, 2003, and the taxpayer
owns the property as of the first day of this
taxable year; or
(c) if the taxpayer’s federal tax return
for the first taxable year succeeding the
taxable year that included September 11,
2001, was filed on or before July 21, 2003,
by
(i) filing an amended federal tax return
(oraqualifiedamendedreturn)onorbe-
fore December 31, 2003, for the first tax-
able year succeeding the taxable year that
included September 11, 2001, attaching a
Form 3115 to the amended federal tax re-
turn, and including the statement “Filed
Pursuant to Rev. Proc. 2003–50” at the
top of the amended federal tax return (or
qualified amended return); or
(ii) filing a Form 3115 with the tax-
payer’s timely filed federal tax return for
the second taxable year succeeding the
taxable year that included September 11,
2001, and ending on or before July 31,
2004, if the taxpayer owns the property as
of the first day of this taxable year.
(2)Automatic change in method of ac-
counting. The Form 3115 is to be com-
pleted and filed in accordance with the
automatic change in method of account-
ing provisions in Rev. Proc. 2002–9,
2002–1 C.B. 327 (as modified and ampli-
fied by Rev. Proc. 2002–19, 2002–1 C.B.
696, as amplified, clarified, and modified
by Rev. Proc. 2002–54, 2002–35 I.R.B.
432, and as modified and clarified by An-
nouncement 2002–17, 2002–1 C.B. 561)
or any successor, with the following mod-
ifications:
(a) The scope limitations in section 4.02
of Rev. Proc. 2002–9 do not apply; and
(b) To assist the Service in processing
changes in method of accounting under
this section of the revenue procedure,
and to ensure proper handling, section
6.02(4)(a) of Rev. Proc. 2002–9 is mod-
ified to require that a Form 3115 filed
under this revenue procedure include the
statement: “Automatic Change Filed Un-
der Rev. Proc. 2003–50.” This statement
shouldbelegiblyprintedortypedonthe
appropriate line on any Form 3115 filed
under this revenue procedure.
.02Election Not to Deduct 30-Percent
Additional First Year Depreciation.
(1)In general. A taxpayer that timely
filed its federal tax return for the taxable
year that included September 11, 2001, has
made the election not to deduct the 30-per-
cent additional first year depreciation for
a class of property that is qualified prop-
erty or Liberty Zone property during the
taxable year that included September 11,
2001, if:
(a) the taxpayer made the election
within the time prescribed in section
3.03(1)or3.03(2)(a)ofRev. Proc.
2002–33, and in the manner prescribed in
the instructions for the 2001 Form 4562,
Depreciation and Amortization(Rev.
March 2002); or
(b) the taxpayer made the election
within the time prescribed in section
3.03(1)or3.03(2)(a)ofRev. Proc.
2002–33 and included with the taxpayer’s
federal tax return for the taxable year
that included September 11, 2001, an
affirmative statement to the effect that the
taxpayer is not deducting the 30-percent
additional first year depreciation for the
class of property. The affirmative state-
ment may be a statement attached to, or
written on, the return (for example, writ-
ing on the Form 4562 “not deducting 30
percent”).
(2)Deemed election. If section 3.02(1)
of this revenue procedure does not apply,
a taxpayer that timely filed its federal tax
return for the taxable year that included
September 11, 2001, also will be treated
as making the election not to deduct the
30-percent additional first year deprecia-
tion for a class of property that is qualified
property or Liberty Zone property placed
in service by the taxpayer after Septem-
ber 10, 2001, during the taxable year that
included September 11, 2001, if the tax-
payer:
(a) on that return, did not claim the
30-percent additional first year deprecia-
tion for that class of property but did claim
depreciation; and
(b) does not file an amended federal tax
return (or a qualified amended return) or
a Form 3115 within the time and in the
manner prescribed in section 3.01 of this
revenue procedure to claim the 30-percent
additional first year depreciation for the
Ju
ly 21, 2003
12
0
20
03-29 I.R.B.

class of property for the taxable year that
included September 11, 2001.
.03Increased Section 179 Expensing
for Liberty Zone Property. If a taxpayer
timely filed its federal tax return for the
taxable year that included September 11,
2001, and did not elect on that return
to expense the increased § 179 amount
provided by § 1400L(f) for § 179 property
that is Liberty Zone property placed in
service by the taxpayer after September
10, 2001, during the taxable year that
included September 11, 2001, but wants to
do so, the taxpayer must file an amended
federal tax return (or a qualified amended
return) on or before December 31, 2003,
for the taxable year that included Septem-
ber 11, 2001, and any affected subsequent
taxable year, and attach to the amended
federal tax return for the taxable year that
included September 11, 2001, the election
and any necessary information required
by § 1.179–5 of the Income Tax Regu-
lations. The taxpayer must also include
the statement “Filed Pursuant to Rev.
Proc. 2003–50” at the top of any amended
federal tax return (or qualified amended
return).
.04Changing Selection of Section 179
Property.
(1)Application. If a taxpayer timely
filed its federal tax return for the taxable
year that included September 11, 2001,
and, on that return, made a § 179 election
for property, the taxpayer may change the
selection of the § 179 property on that re-
turn if:
(a) on that return, the taxpayer did not
deduct the 30-percent additional first year
depreciation for any property or did not
elect out of the 30-percent additional first
year depreciation;
(b) the taxpayer made the § 179 elec-
tion for property placed in service after
September 10, 2001; and
(c) the taxpayer now wants to claim the
30-percent additional first year deprecia-
tion for that same property and apply the
§ 179 election to other property placed in
service by the taxpayer in the taxable year
that included September 11, 2001.
(2)Time and manner of changing se-
lection. A taxpayer described in section
3.04(1) of this revenue procedure changes
the selection of the § 179 property by filing
an amended federal tax return (or a quali-
fied amended return) on or before Decem-
ber 31, 2003, for the taxable year that in-
cluded September 11, 2001, and any af-
fected subsequent taxable year, and attach-
ing to the amended federal tax return for
the taxable year thatincluded September
11, 2001, the election and any necessary
information required by § 1.179–5. The
taxpayer must also include the statement
“Filed Pursuant to Rev. Proc. 2003–50”
at the top of any amended federal tax re-
turn (or qualified amended return).
.05Liberty Zone Leasehold Improve-
ment Property. If a taxpayer timely filed
its federal tax return for the taxable year
that included September 11, 2001, and did
not depreciate on that return Liberty Zone
leasehold improvement property placed in
service by the taxpayer after September 10,
2001, during the taxable year that included
September 11, 2001, as 5-year property for
purposes of § 168 using the straight-line
method of depreciation, the taxpayer must
depreciate the Liberty Zone leasehold im-
provement property as 5-year property by
either filing an amended federal tax return
(or qualified amended return) or a Form
3115 within the time and in the manner
prescribed in section 3.01 of this revenue
procedure for claiming the 30-percent ad-
ditional first year depreciation for a class of
property for the taxable year that included
September 11, 2001.
SECTION 4. EFFECT ON OTHER
DOCUMENTS
.01 Rev. Proc. 2002–33 is amplified
and modified.
.02 Rev. Proc. 2002–9 is amplified and
modified to include the accounting method
change provided in section 3.01 of this rev-
enue procedure in section 2 of the APPEN-
DIX.
SECTION 5. EFFECTIVE DATE
This revenue procedure is effective June
26, 2003.
DRAFTING INFORMATION
The principal author of this revenue
procedure is Douglas Kim of the Office
of Associate Chief Counsel (Passthroughs
and Special Industries). For further infor-
mation regarding this revenue procedure,
contact Mr. Kim at (202) 622–3110 (not a
toll-free call).
26 CFR 601.105: Examination of returns and claims
for refund, credit or abatement; determination of cor-
rect tax liability.
(Also Part I, § 338; 1.338–1.)
Rev. Proc. 2003–51
SECTION 1. PURPOSE
This revenue procedure sets forth
guidelines for use by taxpayers and Inter-
nal Revenue Service personnel in making
fair market value determinations for in-
ventory items acquired when a taxpayer
purchases the assets of a business for a
lump sum or a corporation acquires the
stock of another corporation and makes an
election pursuant to § 338 of the Internal
Revenue Code with respect to the acquisi-
tion. The Service invites public comment
on issues relating to the inventory val-
uation methods discussed herein and to
whether additional valuation methods are
appropriate. This revenue procedure mod-
ifies, amplifies, and supersedes Rev. Proc.
77–12, 1977–1 C.B. 569.
SECTION 2. BACKGROUND
If the assets of a business are purchased
for a lump sum or if a corporation acquires
the stock of another corporation and makes
an election pursuant to § 338 with respect
to the acquisition, the purchase price (ac-
tual or deemed) must be allocated among
the assets acquired to determine the basis
of each of the assets. In making the allo-
cation, a taxpayer must determine the fair
market value of any inventory items ac-
quired. This revenue procedure describes
methods that may be used to determine the
fair market value of inventory items for
purposes of the purchase price allocation.
In the situations set forth in this revenue
procedure, the quantity of inventory to be
valued generally would be different from
the quantity usually purchased. In addi-
tion, the fair market value of the goods in
process and finished goods on hand must
be determined in light of what a willing
purchaser would pay and a willing seller
would accept for the inventory at the vari-
ous stages of completion, when the former
is not under any compulsion to buy and the
20
03-29 I.R.B.
12
1
Ju
ly 21, 2003

latter is not under any compulsion to sell,
both parties having reasonable knowledge
of relevant facts. In making the inventory
valuation determination, it is necessary to
allow for a fair division between the buyer
and the seller of the profit on the inventory,
taking into account that the quantity of in-
ventory purchased may be greater than the
quantity of inventory usually purchased.
See Knapp King-Size Corp. v. United
States, 527 F.2d 1392 (Ct. Cl. 1975).
SECTION 3. PROCEDURES FOR
DETERMINATION OF FAIR MARKET
VALUE.
Three basic methods a taxpayer may
use to determine the fair market value of
inventory are the replacement cost method,
the comparative sales method, and the in-
come method.
.01Replacement Cost Method.There-
placement cost method generally provides
a good indication of fair market value if in-
ventory is readily replaceable in a whole-
sale or retail business, but generally should
not be used in establishing the fair mar-
ket value of the work in process or fin-
ished goods of a manufacturing concern.
In valuing a bulk inventory of raw ma-
terials or goods purchased for resale un-
der this method, the determination of the
replacement cost of the individual items
should be only a base or starting point.
This base amount must be adjusted for fac-
tors that are generally relevant. For exam-
ple, a willing purchaser might be expected
to pay (and a willing seller might be ex-
pected to demand) a price for inventory
that would compensate the seller not only
for the current replacement cost, but also
for a fair return on expenditures in accumu-
lating and preparing the inventory for dis-
tribution. Thus, an amount equal to the fair
value of the related costs that the taxpayer
would have incurred in acquiring and ac-
cumulating the same quantity of goods had
the goods been purchased separately (e.g.,
purchasing, handling, transportation, and
off-site storage costs) should be added to
the base amount. Additionally, in valuing
a particular inventory under this method,
other factors may be relevant. For exam-
ple, a well balanced inventory available
to fill customers' orders in the ordinary
course of business may have a fair mar-
ket value in excess of its cost of replace-
ment because it provides a continuity of
business, whereas an inventory containing
obsolete merchandise unsuitable for cus-
tomers may have a fair market value of less
than the cost of replacement.
.02Comparative Sales Method.The
comparative sales method utilizes the ac-
tual or expected selling prices of finished
goods to customers in the ordinary course
of business as the base amount that must be
adjusted for factors that are generally rel-
evant in determining the fair market value
of the inventory. The inventory to be val-
ued may represent a larger quantity than
the normal trading volume. The expected
selling price is a valid starting point only if
the inventory is expected to be used to fill
customers' orders in the ordinary course of
business. If the expected selling price is
used as a basis for valuing finished goods
inventory, the base amount must be ad-
justed for relevant factors, including:
(1) the time that would be required to
dispose of this inventory;
(2) the expenses that would be expected
to be incurred in the disposition, for ex-
ample, all costs of disposition, applicable
discounts (including those for quantity),
sales commissions, and freight and ship-
ping charges; and
(3) a profit commensurate with the
amount of investment in the assets and
the degree of risk. (This analysis should
include (but is not limited to) an evaluation
of risks of possible changes in style/de-
sign, changes in price levels, increased
competition, possible adverse economic
conditions, the fact that the inventory to
be valued may represent a larger quantity
than the normal trading volume,etc.).
.03Income Method.Theincome
method, when applied to fair market value
determinations for finished goods, recog-
nizes that finished goods must generally
be valued in a profit motivated business.
As the amount of inventory may be large
in relation to normal trading volume, the
highest and best use of the inventory will
be to provide for a continuity of the mar-
keting operation of the going business.
Additionally, the finished goods inventory
will usually provide the only source of
revenue of an acquired business during the
period it is being used to fill customers'
orders. The historical financial data of an
acquired company can be used to deter-
mine the amount that could be attributed
to finished goods in order to pay all costs
of disposition and provide a return on the
investment during the period of disposi-
tion.
.04Work in Process.Thefairmarket
value of work in process should be based
on the same factors used to determine the
fair market value of finished goods reduced
by the expected costs of completion, in-
cluding a reasonable profit allowance for
the completion and selling effort of the ac-
quiring corporation.
SECTION 4. EXAMPLE OF
REPLACEMENT COST AND
COMPARATIVE SALES COST
METHODS
On Date 1, Manufacturer A purchased all the
assets of Manufacturer B for a lump-sum payment of
$31,000,000. The assets of Manufacturer B included
quantities of finished goods and raw material inven-
tory that were larger than the normal trading volume.
The inventories are in good condition and the raw
materials include minimal obsolete or subnormal
goods. On the date of sale, Manufacturer B's books
reflected finished goods inventory having a book
value of $4,000,000 and raw materials having a book
value of $300,000.
Manufacturer A expects to sell the acquired fin-
ished goods inventory to customers in the ordinary
course of business. An appraiser hired by Manufac-
turer A determined that under the circumstances the
expected retail selling price of the acquired finished
goods inventory to customers was $6,000,000. It was
also determined that the cost of disposing of the fin-
ished goods inventory, including sales commissions,
freight and shipping charges, was $1,000,000. Manu-
facturer A calculated that it would incur a holding cost
of $50,000 based on the average amount invested in
holding the inventory, the period of time that would
reasonably be expected to be necessary to dispose of
the inventory, and the available established finance
rate for the period. After taking into consideration
Manufacturer A's investment in the assets of Manu-
facturer B, the risks Manufacturer A would incur dur-
ing the time it took to dispose, in the ordinary course
of its business, of the quantity of acquired inventory,
and a fair division of the profit on the finished goods
inventory between Manufacturer A and Manufacturer
B, it was determined that the allocation of profit to
Manufacturer A should be $450,000.
The appraiser determined that the replacement
cost of the raw materials was $310,000. The ap-
praiser computed a fair value of approximately
$4,100 for purchasing, handling, and storage costs to
acquire and accumulate the raw materials. Finally,
the appraiser determined that there were minimal ob-
solete and subnormal goods, which would decrease
the value of the inventories by approximately $100.
In the ordinary course of business, Manufacturer
B did not resell the raw materials without further
processing. Manufacturer A also does not expect
to resell in the ordinary course of business the raw
materials without further processing.
Using the comparative sales method for finished
goods and replacement cost method for raw materi-
als, the fair market value of inventory for purposes of
Ju
ly 21, 2003
12
2
20
03-29 I.R.B.

allocating the lump sum payment is computed as fol-
lows:
Gross expected selling price$6,000,000
Disposition costs(1,000,000)
Holding costs(50,000)
Corporation A's profit(450,000)
Fair Market Value of finished goods inventory4,500,000
Current replacement cost of raw materials310,000
Purchasing, storage, and handling costs4,100
Obsolete and subnormal goods(100)
Fair Market Value of raw materials inventory314,000
Fair Market Value of acquired inventories$4,814,000
SECTION 5. CONCLUSION
Valuing inventory is an inherently fac-
tual determination. No rigid formulas
should be applied. Consequently, the three
valuation methods outlined above serve
only as guidelines for determining the fair
market value of inventories. Similarly,
the example serves only as a guideline for
applying the methods.
SECTION 6. REQUEST FOR
COMMENTS
The Service invites comments from the
public on issues relating to this revenue
procedure, including the current valuation
methods provided herein and whether
the Service should consider any addi-
tional valuation methods (for example,
whether manufacturers should be permit-
ted to apply a replacement cost method
to value work in process and finished
goods). Comments should be submitted
by September 23, 2003, either to:
Internal Revenue Service
P.O. Box 7604
Ben Franklin Station
Washington, DC 20044
Attn: CC:PA:RU (CC:ITA:6)
Room 5525
or electronically via:notice.comments
@.irscounsel.treas.gov(the Service com-
ments e-mail address). All comments
will be available for public inspection and
copying.
SECTION 7. EFFECT ON OTHER
DOCUMENTS
Rev. Proc. 77–12 is amplified, modi-
fied, and superseded.
SECTION 8. EFFECTIVE DATE
Generally, this revenue procedure is ef-
fective for taxable years ending on or af-
ter April 25, 1977. However, references in
this revenue procedure to § 338 are effec-
tive for:
(1) certain acquisitions occurring be-
fore September 1, 1982, if: (a) the ac-
quisition date with regard to an acquired
corporation was after August 31, 1980,
and before September 1, 1982; (b) the ac-
quired corporation was not liquidated be-
fore September 1, 1982; and (c) the acquir-
ingcorporationmadeanelectionpursuant
to § 338; and (2) acquisitions occurring af-
ter August 31, 1982.
DRAFTING INFORMATION
The principal author of this revenue
procedure is Willie E. Armstrong, Jr., of
the Office of Associate Chief Counsel
(Income Tax and Accounting). For further
information regarding this Revenue Pro-
cedure, contact Mr. Armstrong at (202)
622–4970 (not a toll-free call).
20
03-29 I.R.B.
12
3
Ju
ly 21, 2003

Part IV. Items of General Interest
Changes to Form 8873
(“Extraterritorial Income
Exclusion”) and its Instructions
Announcement 2003–47
This announcement alerts taxpayers to
recent changes to Form 8873 (“Extraterri-
torial Income Exclusion”) and its Instruc-
tions. The 2000 and 2001 Forms 8873
containedanerrorinthecomputationof
the extraterritorial income exclusion (net
of disallowed deductions) shown on line
55 of the form in certain instances in which
a taxpayer used the foreign sale and leasing
income method. This error may have led
some taxpayers that used the foreign sale
and leasing income method to claim exces-
sive extraterritorialincome exclusions for
tax years 2000 and 2001.
The Service has revised the 2002 Form
8873 and its Instructions to correct this er-
ror and to make other clarifications. Com-
pared to the 2000 and 2001 Forms 8873,
the 2002 Form 8873 has been revised as
follows: line 46 has been modified, lines
52 through 54 have been deleted, and line
55 has been redesignated as line 52 and
modified to reflect the deletion of lines 52
through 54. As a result, the 2002 Form
8873 reflects the correct calculation of the
extraterritorial income exclusion (net of
disallowed deductions) on line 52 regard-
less of whether the taxpayer uses the for-
eign trade income, foreign trading gross re-
ceipts, or foreign sale and leasing income
method to calculate the amount entered on
line 45.
On June 27, 2003, the Director, Interna-
tional (LMSB) issued a compliance direc-
tive to LMSB executives, managers, and
agents regarding these corrections to Form
8873 that instructed examiners in the iden-
tification and resolution of this issue on
2000 and 2001 Forms 8873.
For further information regarding this
announcement, call (202) 435–5264 (not a
toll-free call).
Ju
ly 21, 2003
12
4
20
03-29 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 ef-
fect:
Amplifieddescribes a situation where
no change is being made in a prior pub-
lished position, but the prior position is be-
ing extended to apply to a variation of the
fact situation set forth therein. Thus, if
an earlier ruling held that a principle ap-
plied to A, and the new ruling holds that the
same principle also applies to B, the earlier
ruling is amplified. (Compare withmodi-
fied,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 confusion.
It is not used where a position in a prior
ruling is being changed.
Distinguisheddescribes a situation
where a ruling mentions a previously pub-
lished ruling and points out an essential
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 published position. (Compare
withamplifiedandclarified, 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 rul-
ings that are obsoleted because of changes
in laws or regulations. A ruling may also
be obsoleted because the substance has
been included in regulations subsequently
adopted.
Revokeddescribes situations where the
position in the previously published ruling
is not correct and the correct position is
being stated in a new ruling.
Supersededdescribes a situation where
the new ruling does nothing more than re-
state the substance and situation of a previ-
ously published ruling (or rulings). Thus,
the term is used to republish under the
1986 Code and regulations the same po-
sition published under the 1939 Code and
regulations. The term is also used when
it is desired to republish in a single rul-
ing a series of situations, names, etc., that
were previously published over a period of
time in separate rulings. If the new rul-
ing does more than restate the substance
of a prior ruling, a combination of terms
is used. For example,modifiedandsu-
persededdescribes a situation where the
substance of a previously published 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 pub-
lished ruling is first modified and then, as
modified, is superseded.
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 rul-
ing has been supplemented several times, a
new ruling may be published that includes
the list in the original ruling and the ad-
ditions, and supersedes all prior rulings in
the series.
Suspendedis used in rare situations
to show that the previous published rul-
ings 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.—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.—Statement 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.
20
03-29 I.R.B.
iJu
ly 21, 2003

Numerical Finding List
1
Bulletin 2003–27 and 2003–28
Announcements:
2003-45, 2003-28 I.R.B.73
2003-48, 2003-28 I.R.B.73
Notices:
2003-38, 2003-27 I.R.B.9
2003-39, 2003-27 I.R.B.10
2003-40, 2003-27 I.R.B.10
2003-41, 2003-28 I.R.B.49
2003-42, 2003-28 I.R.B.49
2003-43, 2003-28 I.R.B.50
2003-44, 2003-28 I.R.B.52
2003-46, 2003-28 I.R.B.53
Proposed Regulations:
REG-106736-00, 2003-28 I.R.B.60
REG-107618-02, 2003-27 I.R.B.13
REG-122917-02, 2003-27 I.R.B.15
Revenue Procedures:
2003-45, 2003-27 I.R.B.11
2003-46, 2003-28 I.R.B.54
2003-47, 2003-28 I.R.B.55
Revenue Rulings:
2003-70, 2003-27 I.R.B.3
2003-71, 2003-27 I.R.B.1
2003-73, 2003-28 I.R.B.44
Treasury Decisions:
9061, 2003-27 I.R.B.5
9062, 2003-28 I.R.B.46
1
A cumulative list of all revenue rulings, revenue procedures, Treasury decisions, etc., published in Internal Revenue Bulletins 2003-1 through 2003-26 is in Internal Revenue Bulletin 2003-27,
dated July 7, 2003.
Ju
ly 21, 2003
ii20
03-29 I.R.B.

Findings List of Current Actions on
Previously Published Items
1
Bulletin 2003–27 and 2003–28
Notices:
89-79
Modified and superseded by
Rev. Proc. 2003-47, 2003-28 I.R.B.55
Proposed Regulations:
EE-86-88 (LR-279-81)
Withdrawn by
REG-122917-02, 2003-27 I.R.B.15
Revenue Procedures:
2002-9
Modified by
Rev. Proc. 2003-45, 2003-27 I.R.B.11
1
A cumulative list of current actions on previously published items in Internal Revenue Bulletins 2003-1 through 2003-26 is in Internal Revenue Bulletin 2003-27, dated July 7, 2003.
20
03-29 I.R.B.
ii
i
Ju
ly 21, 2003
*U.S. Government Printing Office: 2003—496–919/60092