Internal Revenue Bulletin 1998-19 (PDF rendition): IRS Revenue Rulings

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

INCOME TAX
Rev. Rul. 98–25, page 4.
Business expenses; storage tanks.Under the circum-
stances described in this revenue ruling, the costs incurred
to replace underground storage tanks containing waste by-
products (including the cost of removing, cleaning, and dis-
posing of the old tanks, and acquiring, installing, and filling
the new tanks) are deductible as ordinary and necessary
business expenses under section 162 of the Code.
EMPLOYEE PLANS
Announcement 98–38, page 26.
Notice of proposed rulemkaing (REG–209476–82, 1998–8
I.R.B. 36) under section 72(p) of the Code, relating to loans
made from a qualified employer plan to plan participants or
beneficiaries, is corrected.
EXEMPT ORGANIZATIONS
Announcement 98–37, page 24.
A list is given of organizations now classified as private foun-
dations.
ESTATE TAX
Rev. Rul. 98–22, page 5.
Special use value; farms; interest rates. The 1998 inter-
est rates to be used in computing the special use value of
farm real property for which an election is made under sec-
tion 2032A of the Code are listed for estates of decedents.
EXCISE TAX
Rev. Rul. 98–24, page 6.
Exemption from certain federal excise taxes for con-
sular officers and employees. If consular officers and
employees and members of their families forming part of
their households purchase from the manufacturer an article
otherwise subject to a federal excise tax on sales by manu-
facturers, or purchase from a retailer an article otherwise
subject to a federal excise tax on sales by retailers, the
transaction will not be taxed. Rev. Rul. 73–198 modified and
Rev. Rul. 68–352 obsoleted.
ADMINISTRATIVE
Notice 98–28, page 7.
Credit for producing fuel from a nonconventional
source, Code section 29 inflation adjustment factor
and reference price.This notice publishes the Code sec-
tion 29 inflation adjustment factor, the nonconventional
source fuel credit, and the section 29 reference price for
calendar year 1997. These data are used to determine the
credit allowable on fuel produced from a nonconventional
source.
Rev. Proc. 98–33, page 7.
General rules and specifications for private printing of
Forms W–2 and W–3.Specifications are set forth for the
private printing of paper substitutes for tax year 1998 Form
W–2, Wage and Tax Statement, and Form W–3, Transmittal
of Wage and Tax Statements. Rev. Procs. 97–24 and
97–24A superseded.
Internal Revenue
bbuulllleettiinn
Bulletin No. 1998–19
May 11, 1998
HIGHLIGHTS
OF THIS ISSUE
These synopses are intended only as aids to the reader in
identifying the subject matter covered. They may not be
relied upon as authoritative interpretations.
Department of the Treasury
Internal Revenue Service
Finding Lists begin on page 28.

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

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

May 11, 199841998–19 I.R.B.
Section 162.—Trade or Business
Expenses
26 CFR 1.162–1: Business expenses.
(Also section 263; 1.263(a)–1; 1.162-3.)
Business expenses; storage tanks.
Under the circumstances described in this
revenue ruling, the costs incurred to re-
place underground storage tanks contain-
ing waste by-products (including the cost
of removing, cleaning, and disposing of
the old tanks, and acquiring, installing,
and filling the new tanks) are deductible
as ordinary and necessary business ex-
penses under section 162 of the Code.
Rev. Rul. 98–25
ISSUE
Under the circumstances described
below, are the costs incurred to replace
underground storage tanks (“USTs”) con-
taining waste by-products (including the
cost of removing, cleaning, and disposing
of the old USTs, and acquiring, installing,
and filling the new USTs) deductible by
the taxpayer as business expenses under
§ 162 of the Internal Revenue Code or
must they be capitalized under § 263?
FACTS
X, a corporation, employs the accrual
method of accounting and uses a calendar
year. Xoperates a manufacturing facility.
In the past, X’s manufacturing operations
had produced waste by-products in the
course of its operations. Consistent with
the industry-wide practice at that time, X
placed this waste in steel USTs (“old
USTs”) that Xburied on its land.
In 1998, Xincurred costs to remove its
old USTs and replace them with USTs
made of a steel-fiberglass-reinforced plas-
tic composite material (“new USTs”) that
comply with current federal, state, and
local environmental laws. Xexcavated a
hole in the ground large enough to gain
access to the old USTs. Xthen drained
the waste from the old USTs and placed it
in a temporary repository. Xthen lifted
the old USTs out of the hole, cleaned
them, and disposed of them at an appro-
priate disposal facility. In the same tax-
able year, Xplaced the new USTs in the
same hole, and transferred the waste from
the temporary repository into the new
USTs. Finally, Xsealed the new USTs
and filled the hole with soil.
The new USTs will not be emptied and
reused, but will remain filled with the
same waste indefinitely. Applicable law
requires that Xcontinue to monitor the
buried new USTs to detect leaks, if any.
Once they are filled with waste and sealed,
the new USTs have no salvage value.
LAW AND ANALYSIS
Sections 162 and 1.162–1(a) of the In-
come Tax Regulations allow a deduction
for all the ordinary and necessary ex-
penses paid or incurred during the taxable
year in carrying on any trade or business.
Section 1.162–3 provides, in part, that
taxpayers carrying materials and supplies
on hand should include in expenses the
charges for materials and supplies only in
the amount that they are actually con-
sumed and used in operation during the
taxable year for which the return is made.
Sections 263 and 1.263(a)–1(a) provide
that no deduction is allowed for any
amounts paid out for new buildings or for
permanent improvements or betterments
made to increase the value of any prop-
erty. Section 1.263(a)–2(a) provides that
capital expenditures include the cost of
acquisition, construction, or erection of
buildings, machinery and equipment, fur-
niture and fixtures, and similar property
having a useful life substantially beyond
the taxable year.
Through provisions such as §§ 162(a),
263(a), and related sections, the Code
generally endeavors to match expenses
with the revenues of the taxable period to
which the expenses are properly attribut-
able, thereby resulting in a more accurate
calculation of net income for tax pur-
poses. See, e.g., INDOPCO, Inc. v. Com-
missioner, 503 U.S. 79, 84 (1992); Com-
missioner v. Idaho Power Co., 418 U.S. 1,
16 (1974). Moreover, as the Supreme
Court specifically recognized, the “deci-
sive distinctions [between capital and or-
dinary expenditures] are those of degree
and not of kind,” and a careful examina-
tion of the particular facts of each case is
required. Welch v. Helvering,290 U.S.
111, 114 (1933); Deputy v. du Pont,308
U.S. 488, 496 (1940); see also
INDOPCO,503 U.S. at 87.
The useful life of an asset for § 263
purposes is its useful life to the taxpayer,
not its inherent useful life. See Silverton
v. Commissioner,T.C.M. 1977–198;
Massey Motors, Inc. v. United States,364
U.S. 92 (1960). Unlike most storage
tanks, which are used to hold a substance
temporarily and are emptied and refilled
repeatedly throughout their useful lives,
X’s new USTs are filled with waste once,
sealed indefinitely, and thereafter have no
salvage value. Upon being filled with
waste and sealed, the new USTs have no
remaining useful life to X. X’s new USTs
are used merely to facilitate the disposal
of waste and therefore are similar to a ma-
terial or supply that is consumed and used
in operation during the taxable year. Ac-
cordingly, because Xacquired, filled, and
sealed the new USTs all in 1998, the costs
of acquiring and installing the new USTs
are not capital expenditures, but are ordi-
nary and necessary business expenses de-
ductible under § 162. The new USTs,
which are used once and then sealed in-
definitely, are distinguishable from the
groundwater treatment facilities in Rev.
Rul. 94–38, 1994–1 C.B. 35, which are
used by the taxpayer substantially beyond
the taxable year.
Further, X’s costs of removing, clean-
ing, and disposing of the old USTs, and
filling and on-going monitoring of the
new USTs are deductible as business ex-
penses under § 162.
The results would be the same if Xhad
instead ceased to operate the manufactur-
ing facility in 1998 or in a previous tax-
able year. The results would also be the
same if Xhad instead used storage tanks
that were designed to store waste above
ground.
HOLDING:
Under the circumstances described
above, the costs incurred to replace USTs
containing waste by-products (including
the cost of removing, cleaning, and dis-
posing of the old USTs, and acquiring, in-
stalling, and filling the new USTs) are de-
ductible by the taxpayer as ordinary and
necessary business expenses under § 162.
EFFECT ON OTHER DOCUMENTS
Rev. Rul. 94-38 is distinguished.
Part I. Rulings and Decisions Under the Internal Revenue Code of 1986

DRAFTING INFORMATION
For further information contact Merrill
Feldstein of the Income Tax and Account-
ing division of the Office of Chief Coun-
sel at (202) 622-4950 (not a toll free call).
Section 263.—Capital
Expenditures
26 CFR 1.263(a)–1: Capital expenditures; in
general.
Are the costs incurred to replace underground
storage tanks containing waste by-products (includ-
ing the cost of removing, cleaning, and disposing of
the old tanks, and acquiring, installing, and filling
the new tanks) deductible by the taxpayer as busi-
ness expenses under § 162 of the Code, or must they
be capitalized under § 263? See Rev. Rul. 98–25,
page 4.
Section 2032A.—Valuation of
Certain Farm, Etc., Real
Property
26 CFR 20.2032A–4: Method of valuing farm real
property.
Special use value; farms; interest
rates. The 1998 interest rates to be used
in computing the special use value of
farm real property for which an election is
made under section 2032A of the Code
are listed for estates of decedents.
Rev. Rul. 98–22
This revenue ruling contains a list of
the average annual effective interest rates
on new loans under the Farm Credit Bank
system. This revenue ruling also contains
a list of the states within each Farm Credit
Bank District.
Under § 2032A(e)(7)(A)(ii) of the Inter-
nal Revenue Code, rates on new Farm
Credit Bank loans are used in computing
the special use value of real property used
as a farm for which an election is made
under § 2032A. The rates in this revenue
ruling may be used by estates that value
farmland under § 2032A as of a date in
1998.
Average annual effective interest
rates, calculated in accordance with
§ 2032A(e)(7)(A) and § 20.2032A-4(e) of
the Estate Tax Regulations, to be used
under § 2032A(e)(7)(A)(ii), are set forth
in the accompanying Table of Interest
Rates (Table 1). The states within each
Farm Credit Bank District are set forth in
the accompanying Table of Farm Credit
Bank Districts (Table 2).
Rev. Rul. 81–170, 1981–1 C.B. 454,
contains an illustrative computation of an
average annual effective interest rate.
The rates applicable for valuation in 1997
are in Rev. Rul. 97–13, 1997–16 I.R.B. 4.
For rate information for years prior to
1997, see Rev. Rul. 96–23, 1996–1 C.B.
198, and other revenue rulings that are
referenced therein.
DRAFTING INFORMATION
The principal author of this revenue
ruling is Lane Damazo of the Office of
Assistant Chief Counsel (Passthroughs
and Special Industries). For further infor-
mation regarding this revenue ruling, con-
tact Lane Damazo on (202) 622-3090 (not
a toll-free call).
1998–19 I.R.B.5May 11, 1998
REV. RUL. 98–22 TABLE 1
TABLE OF INTEREST RATES
(Year of Valuation 1998)
Farm Credit Bank District inInterest
Which Property Is LocatedRate
Columbia . . . . . . . . . . . . . . . . . . 9.32
Omaha . . . . . . . . . . . . . . . . . . . . 8.17
Sacramento . . . . . . . . . . . . . . . . . 8.38
St. Paul . . . . . . . . . . . . . . . . . . . . 8.28
Spokane . . . . . . . . . . . . . . . . . . . 8.22
Springfield . . . . . . . . . . . . . . . . . 8.74
Texas . . . . . . . . . . . . . . . . . . . . . 8.19
Wichita . . . . . . . . . . . . . . . . . . . . 8.27
REV. RUL. 98–22 TABLE 2
TABLE OF FARM CREDIT BANK DISTRICTS
DistrictStates
Columbia . . . . . . . . . . . . . . . . . . . . . . . Delaware, District of Columbia, Florida, Georgia, Maryland, North Carolina, Pennsyl-
vania, South Carolina, Virginia, West Virginia.
Omaha . . . . . . . . . . . . . . . . . . . . . . . . . Iowa, Nebraska, South Dakota, Wyoming.
Sacramento . . . . . . . . . . . . . . . . . . . . . Arizona, California, Hawaii, Nevada, Utah.
St. Paul . . . . . . . . . . . . . . . . . . . . . . . . Arkansas, Illinois, Indiana, Kentucky, Michigan, Minnesota, Missouri, North Dakota,
Ohio, Tennessee, Wisconsin.
Spokane . . . . . . . . . . . . . . . . . . . . . . . Alaska, Idaho, Montana, Oregon, Washington.
Springfield . . . . . . . . . . . . . . . . . . . . . . Connecticut, Maine, Massachusetts, New Hampshire, New Jersey, New York, Rhode
Island, Vermont.
Texas . . . . . . . . . . . . . . . . . . . . . . . . . . Alabama, Louisiana, Mississippi, Texas.
Wichita . . . . . . . . . . . . . . . . . . . . . . . . Colorado, Kansas, New Mexico, Oklahoma.

Section 4041.—Imposition of
Ta x
26 CFR 48.4041–3: Application of tax on sales of
special motor fuel for use in motor vehicles and
motorboats.
(Also sections 4071, 4081, 4091, 4161; 48.4071–1,
48.4081–2, 48.4161(a)–1, 48.4161(b)–1.)
Exemption from certain federal ex-
cise taxes for consular officers and em-
ployees. If consular officers and employ-
ees and members of their families
forming part of their households purchase
from the manufacturer thereof an article
otherwise subject to a federal excise tax
on sales by manuacturers, or purchase
from a retailer an article otherwise subject
to a federal excise tax on sales by retail-
ers, the transaction will not be taxed. Rev.
Rul. 73–198 modified and Rev. Rul.
68–352 obsoleted.
Rev. Rul. 98–24
This revenue ruling modifies Rev. Rul.
73–198, 1973–1 C.B. 425, which dis-
cusses exemptions from certain federal
excise taxes extended to foreign diplo-
matic, consular, and other officers, and
agencies or commissions of foreign gov-
ernments.
Rev. Rul. 73–198 provides that if am-
bassadors, ministers, other duly accred-
ited diplomatic representatives of foreign
governments, the members of their fami-
lies living with them, members of their
households (but not servants), attaches,
secretaries, clerks, and also officers of
missions to the United Nations and the
Organization of American States serving
in a representative capacity and family
members living with such officers, pur-
chase from the manufacturer thereof an
article otherwise subject to a federal ex-
cise tax on sales by manufacturers, or pur-
chase from a retailer an article otherwise
subject to a federal excise tax on sales by
retailers, the transaction will not be taxed.
Rev. Rul. 73–198 does not extend this
benefit to consular officers and employ-
ees of foreign governments and members
of their families forming part of their
households.
Under section 201(c) of the Foreign
Missions Act, 22 U.S.C. § 4301 (1994),
the Secretary of State is authorized to de-
termine the treatment that should be ac-
corded a foreign mission in the United
States based on due consideration of the
benefits, privileges, and immunities pro-
vided to missions of the United States in
the country or territory represented by the
foreign mission. The Secretary of State,
after due consideration of the benefits,
privileges, and immunities provided to
missions of the United States under the
Vienna Convention on Consular Relations
and other governing treaties, has deter-
mined that if consular officers and em-
ployees (not including honorary consuls)
and members of their families forming
part of their households purchase from the
manufacturer thereof an article otherwise
subject to a federal excise tax on sales by
manufacturers, or purchase from a retailer
an article otherwise subject to a federal
excise tax on sales by retailers, the trans-
action will not be taxed.
This benefit does not extend to U.S. na-
tionals or permanent residents of the
United States or to consular officers and
employees (and their family members) of
a consular mission representing a country
or territory that does not provide benefits,
privileges, and immunities to missions of
the United States on a reciprocal basis as
determined by the Secretary of State.
“Consular officer” is defined as any per-
son, including the head of a consular post,
entrusted in that capacity with the exer-
cise of consular functions, and “consular
employee” is defined as any person em-
ployed in the administrative or technical
service of the consular post.
As a result of this revenue ruling, Rev.
Rul. 68–352, 1968–2 C.B. 487, is no
longer determinative of the exemption
from federal retailers and manufacturers
excise taxes with respect to consular offi-
cers and employees (not including hon-
orary consuls) of the Government of
France and members of their families
forming part of their households. Ac-
cordingly, Rev. Rul. 68–352 is declared
obsolete.
EFFECT ON OTHER REVENUE
RULINGS
Rev. Rul. 73–198 is modified. Rev.
Rul. 68–352 is obsoleted.
DRAFTING INFORMATION
The principal author of this revenue
ruling is Susan Athy of the Office of As-
sistant Chief Counsel (Passthroughs and
Special Industries). For further informa-
tion regarding this revenue ruling contact
Susan Athy on (202) 622-3130 (not a toll-
free call).
Section 4071.—Imposition of
Ta x
26 CFR 48.4071–1: Imposition and rates of tax.
If consular officers or employees purchase di-
rectly from the manufacturer thereof an article oth-
erwise subject to federal excise tax on sales by man-
ufacturers, or purchase from a retailer an article
otherwise subject to federal excise tax on sales by
retailers, will the transaction be taxed? See Rev. Rul.
98–24, on this page.
Section 4081.—Imposition of
Ta x
26 CFR 48.4081–2: Taxable fuel; tax on removal at
the rack.
If consular officers or employees purchase di-
rectly from the manufacturer thereof an article oth-
erwise subject to federal excise tax on sales by man-
ufacturers, or purchase from a retailer an article
otherwise subject to federal excise tax on sales by
retailers, will the transaction be taxed? See Rev. Rul.
98–24, on this page.
Section 4091.—Imposition of
Ta x
If consular officers or employees purchase di-
rectly from the manufacturer thereof an article oth-
erwise subject to federal excise tax on sales by man-
ufacturers, or purchase from a retailer an article
otherwise subject to federal excise tax on sales by
retailers, will the transaction be taxed? See Rev. Rul.
98–24, on this page.
Section 4161.—Imposition of
Ta x
26 CFR 48.4161(a)–1: Imposition and rate of tax;
fishing equipment.
26 CFR 48.4161(b)–1: Imposition and rates of tax;
bows and arrows.
If consular officers or employees purchase di-
rectly from the manufacturer thereof an article oth-
erwise subject to federal excise tax on sales by man-
ufacturers, or purchase from a retailer an article
otherwise subject to federal excise tax on sales by
retailers, will the transaction be taxed? See Rev. Rul.
98–24, on this page.
May 11, 199861998–19 I.R.B.

1998–19 I.R.B.7May 11, 1998
Credit for Producing Fuel From
a Nonconventional Source,
Section 29 Inflation Adjustment
Factor, and Section 29
Reference Price
Notice 98–28
This notice publishes the § 29 inflation
adjustment factor, the nonconventional
source fuel credit, and the §29 reference
price for calendar year 1997. These are
used to determine the credit allowable on
fuel produced from a nonconventional
source under § 29 of the Internal Revenue
Code. The calendar year 1997 inflation-
adjusted credit applies to the sales of bar-
rel-of-oil equivalent of qualified fuels
sold by a taxpayer to an unrelated person
during the 1997 calendar year, the domes-
tic production of which is attributable to
the taxpayer.
BACKGROUND
Section 29(a) provides for a credit for
producing fuel from a nonconventional
source, measured in barrel-of-oil equiva-
lent of qualified fuels, the production of
which is attributable to the taxpayer and
sold by the taxpayer to an unrelated per-
son during the tax year. The credit is
equal to the product of $3.00 and the ap-
propriate inflation adjustment factor.
Section 29(b)(1) and (2) provides for a
phaseout of the credit. The credit allow-
able under § 29(a) must be reduced by an
amount which bears the same ratio to the
amount of the credit (determined without
regard to § 29(b)(1)) as the amount by
which the reference price for the calendar
year in which the sale occurs exceeds
$23.50 bears to $6.00. The $3.00 in
§ 29(a) and the $23.50 and $6.00 must
each be adjusted by multiplying these
amounts by the 1997 inflation adjustment
factor. In the case of gas from a tight for-
mation, the $3.00 amount in § 29(a) must
not be adjusted.
Section 29(c)(1) defines the term
“qualified fuels” to include oil produced
from shale and tar sands; gas produced
from geopressurized brine, Devonian
shale, coal seams, or a tight formation, or
biomass; and liquid, gaseous, or solid
synthetic fuels produced from coal (in-
cluding lignite), including such fuels
when used as feedstocks.
Section 29(d)(1) provides that the
credit is to be applied only for sale of
qualified fuels the production of which is
within the United States (within the
meaning of § 638(1)) or a possession of
the United States (within the meaning of
§ 638(2)).
Section 29(d)(2)(A) requires that the
Secretary, not later than April 1 of each
calendar year, determine and publish in
the Federal Register the inflation adjust-
ment factor and the reference price for the
preceding calendar year.
Section 29(d)(2)(B) defines “inflation
adjustment factor” for a calendar year as
the fraction the numerator of which is the
GNP implicit price deflator for the calen-
dar year and the denominator of which is
the GNP implicit price deflator for calen-
dar year 1979. The term “GNP implicit
price deflator” means the first version of
the implicit price deflator for the gross na-
tional product as computed and published
by the Department of Commerce.
Section 29(d)(2)(C) defines “reference
price” to mean with respect to a calendar
year the Secretary’s estimate of the annual
average wellhead price per barrel of all
domestic crude oil the price of which is
not subject to regulation by the United
States.
Section 29(d)(3) provides that in the
case of a property or facility in which
more than one person has an interest, ex-
cept to the extent provided by regulations
prepared by the Secretary, production
from the property or facility (as the case
may be) must be allocated among the per-
sons in proportion to their respective in-
terests in the gross sales from the property
or facility.
Section 29(d)(5) and (6) provides that
the term “barrel-of-oil equivalent” with
respect to any fuel generally means that
amount of the fuel which has a Btu con-
tent of 5.8 million.
INFLATION ADJUSTMENT FACTOR
AND REFERENCE PRICE
The inflation adjustment factor for cal-
endar year 1997 is 2.0331. The reference
price for calendar year 1997 is $17.24.
As required by § 29(d)(2)(A), the infla-
tion adjustment factor and reference price
for calendar year 1997 were published in
the Federal Register on April 1, 1998 (63
Fed. Reg. 15916).
PHASE-OUT CALCULATION
Because the calendar year 1997 refer-
ence price does not exceed $23.50 multi-
plied by the inflation adjustment factor,
the phaseout of the credit provided for in
§ 29(b)(1) does not occur for any quali-
fied fuel sold in calendar year 1997.
CREDIT AMOUNT
The nonconventional source fuel credit
under § 29(a) is $6.10 per barrel-of-oil
equivalent of qualified fuels ($3.00 3
2.0331). This amount was published in
the Federal Register on April 1, 1998 (63
Fed. Reg. 15916).
DRAFTING INFORMATION
CONTACT
The principal author of this notice is
David G. McMunn of the Office of Assis-
tant Chief Counsel (Passthroughs and
Special Industries). For further informa-
tion regarding this notice contact Mr. Mc-
Munn on (202)622-3110 (not a toll-free
call).
26 CFR 601.602: Forms and instructions.
(Also Part I, sections 6011, 6041, 6051, 6071, 6081,
6091; 1.6041–1, 1.6041–2, 31.6051–1, 31.6051–2,
31.6071(a)–1, 31.6081(a)–1.)
Rev. Proc. 98–33
PART A. GENERAL
SECTION 1. PURPOSE
.01 The purpose of this revenue proce-
dure is to provide the general rules for fil-
ing and to state the requirements of the In-
ternal Revenue Service (IRS) and the
Social Security Administration (SSA) for
reproducing paper substitutes for Form
W–2, Wage and Tax Statement, and Form
W–3, Transmittal of Wage and Tax State-
ments, for amounts paid during the 1998
calendar year. The information reported
on Forms W–2 and W–3 is required to es-
tablish tax liability for employees and
their eligibility for Social Security and
Medicare benefits.
Part III. Administrative, Procedural, and Miscellaneous

.02 Forms W–2 and W–3 have only
minor changes for 1998. Please see “Na-
ture of Changes” (Section 2, below) and
the exhibits at the end of this revenue pro-
cedure for changes to the Form W–2 and
W–3.
.03 For the purpose of this revenue
procedure, a substitute form is one that is
not printed by IRS. A substitute Form
W–2 or W–3 MUST conform to the
specifications in this revenue procedure
to be acceptable to the IRS.Preparers
should also refer to the separate instruc-
tions for Forms W–2 and the instructions
on Form W–3 for details on how to com-
plete these forms. See Part C, Sec. 4.01,
for information on obtaining the official
IRS forms and instructions. See Part B,
Sec. 2, for requirements for substitute
forms furnished to employees.
.04 IRS has a centralized call site at the
IRS martinsburg Computing Center
(IRS/MCC) to answer questions related to
information returns (Forms W–2, W–3,
1099, etc.). The Call-Site phone number is
(304) 263-8700 (not a toll-free number).
The number for Telecommunication De-
vice for the Deaf (TDD) is (304) 267-3367
(not a toll-free number). The hours of
operation are Monday through Friday from
8:30 A.M. to 4:30 P.M. eastern time.
.05 IRS maintains a personal computer
based Information Reporting Program
Bulletin Board System (IRP–BBS) at the
IRS Martinsburg Computing Center
(IRS/MCC). This system provides access
to the forms and publications relating to
information returns, news of the latest
changes, the ability to receive answers to
specific questions, access to shareware,
and other features. The IRP–BBS is
available for public use and can be
reached by dialing (304) 264-7070 (not a
toll-free number).The IRP–BBS is
compatible with most modems. For more
information concerning this system, call
IRS/MCC at (304) 263-8700 (not a toll-
free number).
.06 Employers are reminded that under
Section 6722 of the Internal Revenue
Code (IRC) they can be assessed a
penalty of $50 per Form W–2 that is not
furnished to an employee on a form ac-
ceptable to the IRS (up to $100,000). To
be acceptable to IRS, the Form W–2 must
be either the “official” form or a substi-
tute form with the core data placed ex-
actly as specified in Part B., Section 2.04
of this Revenue Procedure. No IRS office
is authorized to allow deviations from this
Revenue Procedure.
.07 This revenue procedure supersedes
Rev. Procs. 97–24 and 97–24A, 1997–16
I.R.B., dated April 21, 1997, and 1997–20
I.R.B., dated May 19, 1997 (Reprinted as
Publication 1141).
SEC. 2. NATURE OF CHANGES
.01 The text and exhibits were updated
for tax year 1998.
.02 Box 15 check boxes for House-
hold Employee and Subtotal were deleted
from the Forms W–2. All employers in-
cluding household employers must now
file Form W–3 even for a single submis-
sion of Forms W–2 thus eliminating the
need for the check box. Also SSA no
longer needs subtotals to process Forms
W–2 allowing the elimination of another
checkbox.
.03 Added sentence at the bottom of
Form W–2 reminding filers not to sepa-
rate forms, not to staple forms, and not
to send in photocopies,
.04 Added last item to back of in-
structions on copy C to make filers
aware that Form W–2 should be re-
tained until you start to receive benefits
from SSA. Also employees should con-
firm their work record with SSA from
time to time.
.05 Added additional boxes to Forms
W–3 just before the signature area for
name of contact person, telephone
number, fax number, and E-Mail ad-
dress. This was done at SSA’s request
so that they could more easily contact
the filer to resolve any processing prob-
lems.
.06 SSA recommended inserting a note
at the bottom of Forms W–3 and just be-
fore the W–3 instructions informing the
filer that the entire first page of the Forms
W–3 and the entire first page of the Forms
W–2 should be sent to SSA. Filers are
also informed not to send in any payments
with these forms to SSA.
.07 Deleted the Paper Work Reduction
Act Notice from Form W–3 page 1 as a
space saving measure. The notice infor-
mation is located inside the Forms W–2
instructions.
.08 The Earned Income Credit notifica-
tion to employees may now be placed on
the back of copy B or the back of copy C.
See Part B, Section 2.05.5 for new infor-
mation.
.09 The tax year (1998)must be printed
in non-reflective black ink on copy A of
Form W–2 and Form W–3 using 24 pt
OCR-A font. The forms identification
numbers, e.g., 22222 or 33333, at the top
of the forms must be printed in non-re-
flective black ink. It is imperative that
SSA’s scanning equipment be able to rec-
ognize the form number so that, for exam-
ple, a Form W–3 is recognized and is not
scanned or keyed as a Form W–2. The
form number (W–3), and the signature
line information on Form W–3, must be
printed in non-reflective black ink. The
word “Form” as well as the form title(s),
e.g., Wage and Tax Statement and Trans-
mittal of Wage and Tax Statements,
should be printed in red OCR drop-out
ink. Tax Year (1998) Copies B,C, and 2
are not required to be 24 pt OCR-A
font (See Part B, Section 2.05.
.10 The Catalog Number, shown on the
1998 Form W–2 as “Cat. No. 10134D”,
and the Catalog Number shown on the
1998 Form W–3 as “Cat No. 10159Y”, is
used for IRS distribution purposes and
should not be printed on substitute Forms
W–3 or W–2 (Copy A or employee copies).
.11 Added information on how forms
can be obtained through computer on-line
services.
.12 Various editorial changes were
made.
SEC. 3. GENERAL RULES FOR
FILING FORMS W–2
.01 Employers MUST use magnetic
media for filing with SSA if they prepare
and file 250 or more 1998 Forms W–2
(Copy A). This requirement applies un-
less:
1 The employer can establish that fil-
ing on magnetic media will result in
undue hardship, AND
2. The employer is granted a waiver of
the requirement by IRS.
To request a waiver of the magnetic
media filing requirement, for the current
tax year only, submit Form 8508, Request
for Waiver From Filing Information Re-
turns on Magnetic Media,to:
If by Postal Service:
Internal Revenue Service
Martinsburg Computing Center
May 11, 199881998–19 I.R.B.

P.O. Box 1359
Martinsburg, WV25402-1359
Or, if by truck or air freight:
IRS – Martinsburg Computing
Center
Magnetic Media Reporting
Route 9 and Needy Road
Martinsburg, WV 25401.
Forms may also be FAXED to the
IRS/MCC at (304) 264-5602.
Form 8508 may be obtained through
electronic options on the Internet at
http://www.irs.ustreas.gov, or by calling
1-800-829-3676. Form 8508 also may be
obtained directly from the IRS Martins-
burg Computing Center (IRS/MCC) at the
above address or by calling (304) 263-
8700 (not a toll-free number). The num-
ber for Telecommunication Device for the
Deaf (TDD) is (304) 267-3367 (not a toll-
free number). It is recommended that
completed requests for waivers (Form
8508) be submitted at least 45 days before
but no later than the due date of the return
(see Sec. 3.06, below). The requestor will
receive an approval or denial letter from
IRS, but must allow at least 30days for
IRS to respond. If you have any ques-
tions concerning Form 8508, contact
IRS/MCC at the address or phone number
shown above. Employers who do not
comply with the magnetic media filing re-
quirements for Form W–2 and who are
not granted a waiver may be subject to
certain penalties. Since many states and
local governments accept Form W–2 data
on magnetic media, savings may be ob-
tained if magnetic media is used for filing
with both SSA and state or local govern-
ments. In many instances, the state or
local government is willing to accept the
data format specifications set out in SSA’s
Technical Information Bulletin (TIB) No.
4, Magnetic Media Reporting. You must
contact each individual state or local tax-
ing agency to receive approval and make
arrangements to file on magnetic media.
EMPLOYERS WHO FILE FORM
W–2 INFORMATION ON MAGNETIC
MEDIA WITH SSA MUST NOT SEND
THE SAME DATA TO SSA ON PAPER
FORMS W–2. This would result in dupli-
cate reporting and may subject the filer to
an unnecessary contact by the IRS.
.02 TIB–4, Magnetic Media Reporting,
Submitting Annual W–2 Copy A Informa-
tion to the Social Security Administration,
(SSA Pub. No. 42–007, revised Oct.,
1997) contains the specifications and pro-
cedures for filing Form W–2 information
on magnetic media with SSA. Specifica-
tions for both tape and diskette reporting
for Forms W–2 are included in the TIB-4.
.03 TIB–4 may be obtained by writing
to:
Social Security Administration
OCO, DES
Attn: Employer Reporting Services
Center
300 North Greene Street
Baltimore, MD 21201.
Employers may call their local SSA Mag-
netic Media Coordinator (MMC) to ob-
tain the TIB–4 (see list of Magnetic
Media Coordinators’ telephone numbers
in the Appendix). The TIB–4 is also on
the SSA Annual Wage Reporting Bulletin
Board System (AWRBBS). The number
for the AWRBBS is (410) 965-1133 (not a
toll-free number). Employers using
magnetic media are cautioned to obtain
the most recent revision of the TIB–4 and
supplementsdue to possible changes in
the specifications and procedures.
.04 Employers not using magnetic
media must file a paper Copy A of Form
W–2 with SSA on either the IRS printed
official form or a privately printed substi-
tute paper form that exactly meets the
specifications shown in Parts B and C.
.05 Employers can design their own
statements to give to employees. This ap-
plies to both employers who file with
SSA either on magnetic media or paper
Forms W–2, Copy A. Employee state-
ments designed by employers must
com-
ply with the requirements shown in Parts
B and C, below.
NOTE: Copy A must not be filed on
paper with SSA when the same Form
W–2 information is filed on magnetic
media. Therefore, magnetic media fil-
ers who use the official IRS printed
form or any other pre-printed form are
advised not to print Copy A, or to dis-
card a printed Copy A, to prevent du-
plicate information from being submit-
ted to SSA.
.06 If you are terminating your busi-
ness, you must provide your employees
with Forms W–2 on or before the due
date of the business filing its final Form
941. Employers must also file Forms
W–2 and W–3 with SSA on or before
the last day of the month following the
due date of the final Form 941. See
Rev. Proc. 96–57, Automatic Extensions
for Forms W–2, Internal Revenue Cu-
mulative Bulletin 1996–2 page 389,
dated 12/30/96, for more information.
Note: Use of a reporting agent or
other third-party payroll service
provider does not relieve an employer
of the responsibility to ensure that tax
and information returns are sent out
and/or filed correctly and on time.
.07 1998Forms W–2, whether filed on
magnetic media or paper, must be submit-
ted to SSA on or before March 1, 1999.
In addition, the employee copies must be
furnished to the employee on or before
February 1, 1999. If employment ended
before December 31, 1998, the employee
may be furnished his/her copy any time
after employment ends, but no later than
February 1, 1999. However, if the em-
ployee requests Form W–2, you must fur-
nish him or her the completed copies
within 30 days of the request or of the
final wage payment, whichever is later.
This requirement is met if the form is
properly addressed, mailed, and post-
marked on or before the due date. Failure
to timely file with SSA or to timely pro-
vide the employee copies may subject the
employer to penalties. Employers need-
ing additional time to file Form W–2 in-
formation (paper or magnetic media) with
SSA may request an extension of time to
file by submitting Form 8809, Request for
Extension of Time to File Information Re-
turns, to the IRS/MCC at the address (or
alternative address) listed in Sec. 3.01,
above. The extension request should be
filed as early as possible, but must be
postmarked no later than the due date of
the forms (March 2, 1999). DO NOT
SEND FORM 8809 TO SSA.
NOTE: APPROVAL OF THE EXTEN-
SION IS NOT AUTOMATIC. Approval
or denial is based on administrative crite-
ria and guidelines. The requestor will re-
ceive an approval or denial letter from
IRS and must allow at least 30 days for
IRS to respond. You do not have to wait
for a response before filing your return.
File your return as soon as they are ready.
If you have received a response, do not
send a copy of the letter or Form 8809
with your return. Form 8809 may be ob-
tained through electronic options on the
1998–19 I.R.B.9May 11, 1998

Internet at http://www.irs.ustreas.gov; by
modem to IRIS (703) 321-8020; or by
using the IRS Fax Forms Program (703)
487-4160, or by calling 1-800-829-3676.
You can also contact IRS/MCC (See the
address and phone number in Sec. 3.01,
above).
.08 If requesting extensions of time for
more than 10 employers, IRS encourages
filers to submit the request on tape, tape
cartridge, 5
1
⁄
4
or 3
1
⁄
2
-inch diskette, or
electronically through the Information
Reporting Program Bulletin Board Sys-
tem (IRP–BBS). Transmitters request-
ing an extension of time to file more
than 50 payers are required to file the
extension request on magnetic media or
electronically.Transmitters who submit
requests for multiple payers will receive
one approval letter with an attached list of
payers covered under that approval. Pub-
lication 1220, Specifications for Filing
Forms 1098, 1099, 5498, and W–2G
Magnetically or Electronically, provides
information on how to file requests for
extensions of time on tape, tape car-
tridge/quarter inch cartridge, diskette, or
electronically.
NOTE: To file a request for extensions
of time magnetically or electronically
for multiple payers, third party filers
and transmitters, must have an IRS
Transmitter Control Code (Authoriza-
tion to file information returns).
SEC. 4. GENERAL RULES FOR
FILING FORM W–3
.01 Employers submitting Form W–2
(Copy A) on paper
to SSA must send
Forms W–2 with Form W–3.
.02 Form W–3 must be the same width
(7 inches) as the Forms W–2 filed.
.03 Form W–3 should only be used to
transmit paper Forms W–2 (Copy A).
Magnetic media filers do not file Form
W–3. Employers using magnetic media
must transmit Form W–2 data with Form
6559, Transmitter Report and Summary
of Magnetic Media,(and Form 6559-A,
Continuation Sheet for Form 6559,if nec-
essary). These forms may be obtained by
calling either your SSA MMC (see listing
in Appendix) or IRS at 1-800-829-3676.
PART B. REQUIREMENTS FOR
FILING PAPER SUBSTITUTES
SEC. 1. REQUIREMENTS FOR
SUBSTITUTE “PRIVATELY
PRINTED” FORMS SUBMITTED TO
SSA (FORMS W–2, COPY A, AND
FORMS W–3)
.01 Employers may file privately
printed substitute Forms W–2 and W–3
with SSA. The substitute form must be
an exact replica of the IRS printed form
(or official reproduction proof) with re-
spect to layout and contents because it
will be read by machine. The Govern-
ment Printing Office (GPO) symbol must
be deleted (see Sec. 1.16, below). The
specifications and allowable tolerances
for the Copy A of substitute Forms W–2
are provided later in this Revenue Proce-
dure. See Exhibit A for Form W–2 speci-
fications. The specifications for Forms
W–3 are provided in Exhibit B.
.02 Paper for substitute Forms W–2,
Copy A, and Form W–3 (cut sheets and
continuous pinfeed forms) that are to be
filed with SSA must be white 100%
bleached chemical wood, 18–20 pound
paper only, optical character recognition
(OCR) bond produced in accordance with
the specifications shown as follows:
Paper Requirements
1 Acidity: pH value, average,
not less than . . . . . . . . . . . . . . . 4.5
2 Basis Weight 17 322
500 cut sheets . . . . . . . . . . . 18–20
Metric equivalent grams
per. sq. meter . . . . . . . . . . . . 60–75
A tolerance of +5 pct. shall
be allowed.
3 Stiffness: Average, each
direction, not less than
Gurley milligrams —
Cross direction . . . . . . . . . . . . . 50
Machine direction . . . . . . . . . . . 80
4 Tearing Strength: Average,
each direction, not less
than—Grams . . . . . . . . . . . . . . . 40
5 Opacity: Average, not less
than—Percent . . . . . . . . . . . . . . 82
6 Reflectivity: Average not
less than—percent . . . . . . . . . . . 68
7 Thickness:
Average . . . . . . . . . . . inch 0.0038
Metric equivalent . . . . . mm 0.097
A tolerance of ±0.0005 inch
(0.0127mm) shall be allowed.
Paper shall not vary more
than 0.0004 inch (0.012mm)
from one edge to the other.
8 Porosity: Average, not less
than—seconds . . . . . . . . . . . . . . 10
9 Finish (smoothness):
Average, each side—
econds . . . . . . . . . . . . . . . . . 20–55
(For information only, the
Sheffield equivalent
unit . . . . . . . . . . . . . . . . 170–d100
10 Dirt: Average, each side,
not to exceed—Parts
per million . . . . . . . . . . . . . . . . . 8
NOTE: Reclaimed fiber in any per-
centage is permitted, provided the re-
quirements of this standard are met. DO
NOT USE RECYCLED PAPER.
.03 All printing for Copy A of Forms
W–2 and Form W–3 will be in red OCR
drop-out ink, except as specified below.
1. The identifying control number
‘22222’ (Exhibit C) at the top of Form
W–2 must be printed in non-reflective
black ink.
2. The Form W–2 tax year at the bot-
tomof the form (see Exhibit C) must be
printed in non-reflective black ink.
3. The identifying control number
‘33333’ (Exhibit D) at the top of Form
W–3 must be printed in non-reflective
black ink.
4. The Form W–3 tax year at the bot-
tom of the form (Exhibit D) must be
printed in non-reflective black ink.
5. The form identification at the bottom
‘W–3’ must be printed in non-reflective
black ink (Exhibit D).
All other printing will be in red OCR
drop-out ink meeting, or comparable to,
the specifications in this paragraph. The
OCR drop-out ink for paper Forms W–2,
Copy A, and W–3 is specified as Flint Ink
(formerly Sinclair and Valentine) J-6983
red ink or equivalent. This is the same
ink that is used for Copy A of the Form
1099 series. The use of this is required
for 1998Forms W–3 and W–2, Copy A.
NOTE:Printing in any other red OCR
drop-out ink must be cleared by contact-
ing Banc-Tech Corp., Attn: Forms De-
signer & Analyst, P.O. Box 660204,
MS–77, Dallas, TX 75266 (214-579-
6927—This is a voice mail number.
Leave a message and your call will be re-
turned).
May 11, 1998101998–19 I.R.B.

.04 Type must be substantially identi-
cal in size and shape with corresponding
type on the official form. The form iden-
tifying number MUST be printed in non-
reflective black ink using an OCR-A font;
10 characters per inch.
1. On Form W–3 and Copy A of Forms
W–2, all the perimeter rules must be 1-
point (0.014 inch), while all other rules
must be one-half point (0.007 inch).
2. Vertical rules must be parallel to the
left edge of the form; horizontal rules par-
allel to the top edge.
.05 Two official Forms W–2 (Copy A),
or one official Form W–3 are contained
on a single page that is 7 inches wide (ex-
clusive of any snap-stubs) by 11 inches
deep. The form identifying control num-
ber for the official forms (7 inches wide)
is ‘22222’ (5 digits) for Form W–2 and
‘33333’ (5 digits) for Form W–3. The top
margin for 1998Forms W–3 and W–2,
Copy A is .375 inch (3/8 inch). The right
margin must be .15 inch and the left mar-
gin .35 inch (plus or minus .0313 inch).
The margins are unchanged from 1997.
Margins must be free of all printing. No
printing should appear anywhere near the
Form ID control number (33333, 22222).
For Forms W–2, Copy A, the combination
width of Box a, “Control number”, and
the box containing the form identifying
number (22222) must always be 2.0
inches. For Form W–3, the combined
width of these boxes must always be 2.2
inches.
NOTE: All form identifying num-
bers are to be printed in non-reflective
black ink, using OCR-A font, printed 10
characters per inch.
.06 The depth of the individual
scannable image on a page must be the
same as that of the IRS printed forms.
For Form W–2, the depth is 4.92 inches
(see Exhibit A). The scannable image
depth of the Form W–3 on a page must be
4.47 inches (see Exhibit B).
.07 The words “Do Not Cut, Staple
, or
Separate Forms on This Page” must be
printed in red OCR drop-out ink between
the two Forms W–2 on Copy A only (see
Exhibit A). Perforations are required on
all copies (except Copy A) to enable the
separation of individual forms. Continu-
ous pinfeed Copy A forms must be sepa-
rated at the page perforation into individ-
ual 11” deep pages before submission to
SSA. The pinfeed strips must also be re-
moved. However, the two W–2 docu-
ments contained on the 110deep page
must not
be separated.
.08 The words “For Privacy Act and
Paperwork Reduction Act Notice, see
separate instructions”,must
be printed
in red OCR drop-out ink on Forms W–2,
Copy A (see Exhibit A for format and lo-
cation). The Notice has been removed
from the Form W–3, and placed inside
the Forms W–2 Instructions. (See Ex-
hibit B)
.09 The Office of Management and
Budget (OMB) Number must
be printed
on each
ply of Form W–2 and W–3 (see
Exhibits A and B for format and location).
.10 The section titled “Where to File”
in the general instructions on the em-
ployer’s copy of the official Form W–3,
must be
printed in its entirety on all sub-
stitute Forms W–3 (see Exhibit B).
Household employers filing Forms
W–2
for household employees should send the
forms to the same address listed in the
instructions.
Note: Household employers, even
those with only one household em-
ployee, must file Form W–3 with Form
W–2. On Form W–3 mark the
“Hshld.” Box in Box b.
.11 The Privacy Act and Paperwork
Reduction Act Notice was deleted from
Form W–3 in the interest of space conser-
vation (see Exhibit B). The Notice was
placed inside the Form W–2 instruc-
tions.
.12 Privately printed continuous sub
-
stitute Forms W–2, Copy A, must be per-
forated at each 110 page depth. No perfo-
rations are allowed between the
individual forms (5
1
⁄
2
-inch Forms W–2)
on a single copy page of Copy A.Contin-
uous pinfeed Copy A forms must be sepa-
rated at the page perforation prior to sub-
mitting them to SSA. Two Copy A forms
are contained on one page. The two
copies must remain together on the page.
Only the pages are to be separated (burst).
Perforations are required between all the
other individual
copies on a page (Copies
1, B, C, 2, and D) included in the set.
.13 The back of a substitute Form
W–2, Copy A, and Form W–3 (page 1)
must be free of all printing.
.14 Spot carbons are NOT
permitted
for Copy A of Forms W–2 or for Form
W–3. Interleaved carbon should be black
and must be of good quality to assure leg-
ibility of information on all copies and to
preclude smudging.
.15 Chemical transfer paper is permit-
ted for Form W–2, Copy A, and Form W–3
only if the following standards are met:
1. Only chemically backedpaper is ac-
ceptable for Copy A.
2. Carbon coated forms are not
permit-
ted. Front and back chemically treated
paper cannot be processed properly by
machine.
3. Chemically transferred images must
be black in color.
.16 The GPO symbol must not be
placed on substitute Copy A of Forms
W–2.
.17 The Catalog Number, shown on the
1998 Form W–2 as “Cat. No. 10134D”,
and the Catalog Number shown on the
1998 Form W-3 as “Cat. No. 10159Y”, is
used for IRS distribution purposes and
should not be printed on substitute forms.
SEC. 2. REQUIREMENTS FOR
SUBSTITUTE FORMS FURNISHED
TO EMPLOYEES (COPIES B, C,
AND 2 OF FORMS W–2)
.01 All employers (including those
who file on magnetic media and do not
file a paper Copy A) must furnish em-
ployees with at least two copies of the
Forms W–2 (three or more for employees
required to file a state, city, or local in-
come tax return). The dimensions of
these copies (Copies B, C, etc.) but not
Copy A, may be expanded from the di-
mensions of the official form to allow
space for conveying additional informa-
tion, such as additional entries required
for Boxes 13 or 14, withholding from pay
for health insurance, union dues, bonds,
charity, etc. The requirement that a maxi-
mum of three itemsare permitted in Box
13 of Form W–2 applies only to the paper
Copy Athat is filed with SSA. As long as
sufficient space is provided on the substi-
tute employee copies, as many items as
needed may be placed in Box 13 or Box
14. Also, on these copies (Copies B, C,
etc.), the size of these boxes may be ad-
justed. (However, see the minimum size
for certain boxes, below). This may per-
mit the employer to eliminate other state-
ments or notices that would otherwise be
furnished to employees.
1. The MAXIMUM allowable dimen-
sions for employee copies of Forms W–2
are:
1998–19 I.R.B.11May 11, 1998

(a) depth should be no more than 6.5
inches;
(b) width should be no more than 8.5
inches.
2. The MINIMUM allowable dimen-
sions for employee copies of Forms W–2
are:
(a) 2.67 inches by 5.0 inches.
(b) horizontal or vertical format is per-
mitted.
NOTE: These minimum and maximum
size specifications are for 1998only and
may change for future years. The maxi-
mum width of 8.5 inches is for employee
copies of Form W–2 only. The width of
the paper Copy A, submitted to SSA, is
specified in Part B, section 1.05 above.
.02 The paper for all copies should be
white. The substitute Copy B (or its
equal), that employees are instructed to
attach to their Federal income tax return,
must be at least 12 pound paper (basis 17
322-500), while the other copies fur-
nished the employee should be at least 9-
pound paper (basis 17 322-500).
.03 Interleaved carbon and chemical
transfer paper for employee copies must
meet the following standards:
1. All copies must be CLEARLY
LEGIBLE;
2. All copies must have the capabil-
ity to be photocopied; and
3. Fading must not be of such a de-
gree as to preclude legibility and the abil-
ity to photocopy.
In general, black chemical transfer inks
are preferred; other colors are permitted
only if the above standards are met.
“Spot carbons” are NOT permitted (See
Part B, Sec. 1.15, above, for standards for
chemical transfer paper for Copy A.)
.04 The following requirements govern
the private printing of employee copies of
Forms W–2. All substitutes must be a
form, which contains boxes, box num-
bers, and box titles that, where applicable,
match the IRS printed form. Please in-
sure that the employee copy of Forms
W–2 (Copy C) contains the note “ This
information is being furnished to the
Internal Revenue Service. If you are
required to file a tax return, a negli-
gence penalty or other sanction may be
imposed on you if this income is taxable
and you fail to report it.”The place-
ment, numbering, and size of certain
boxes (the “core” information) is speci-
fied as follows:
1. The items and box numbers that
constitute the core data are:
Box 1 – Wages, tips, other compensa-
tion,
Box 2 – Federal income tax withheld,
Box 3 – Social Security Wages/Rail-
road Retirement Compensa-
tion,
Box 4 – Social Security tax withheld/
Railroad Retirement Tax
Withheld,
Box 5 – Medicare wages and tips/Rail-
road Retirement Tips, and
Box 6 – Medicare tax withheld/Rail-
road Retirement Tax Withheld.
NOTE: Railroad employees may not be
subject to Social Security coverage but
are subject to Railroad Retirement Tax
Tier I and II coverage. Railroad Compen-
sation employers may make the above
modifications to Forms W–2 but only for
substitute Forms W–2 furnished to em-
ployees and not
for any Copy A forms to
be filed with SSA.
The “core” boxes mustbe printed in
the exact order on each line as on the IRS
printed form (see the Exhibits at the end
of this revenue procedure). Boxes 1 and 2
must be next to each other, with Boxes 3
and 4 below on the next line, and Boxes 5
and 6 on the line below Boxes 3 and 4.
2. The block of core data (Boxes 1
through 6) must be placed in the upper
right of the form. Substitute employee
copies of Form W–2, which are printed
using a vertical format with dimensions
smaller than the IRS printed form, may
have the core data entirely on the top of
the form (see Exhibit F). In no instance
will boxes or other information be permit-
ted to the right of the core data. Standard
margins or a small amount of other blank
space may appear to the top or right of
this data. The form title, number, or copy
(Copy B, C, etc.) may be at the top of the
form. Also, a reversed or blocked-out
area to accommodate a postal permit
number or other postal considerations is
permitted at the upper right of the form.
3. Boxes 1 through 6 must each be a
minimum of 1 3/8 inches wide and 1/4
inch deep.
4. Other required boxes:
– Employer identification number
(EIN),
– Employer’s name, address, and ZIP
code,
– Employee’s Social Security number,
and
– Employee’s name, address, and ZIP
code.
These items are required to be present on
the form and must be in boxes similar to
those on the IRS printed form. However,
they may be placed in any location, other
than the top or upper right. The lettering
system used on the IRS printed form (“a”
through “f”) need not be used. The em-
ployer’s EIN may be included in the box
for the employer’s name and address. If
this is done, a separate box for the EIN is
not required. The Control number box
(Box “a” on the IRS printed form) is not
required.
5. The Tax Year (1998) MUSTbe
clearly printed (in non-reflective black
ink)on all copies of substitute Forms
W–2. It is recommended (but not re-
quired) that this information be located to
the right of the form title on the lower left
of the Form W–2. The use of 24 pt
OCR-A font is recommended but not
required.
6. If applicable, Social Security tips
MUSTbe shown separately from Social
Security wages. A separate box is not re-
quired unless Social Security tips are to
be reported.
Boxes 1 and 2 on Copy B are required
to be outlined in bold 2-point rule (see
Exhibit E) or highlighted in some manner
to distinguish these boxes.
7. If a box for Advance EIC (Earned
Income Credit) payments (Box 9) is pre-
sent, the box must be outlined in bold 2-
point rule or highlighted in some manner
to distinguish this box. However, if no
amounts are paid for Advance EIC, this
box is not required and may be omitted by
printers. Do not use Box 9 for any other
purpose than reporting Advance EIC pay-
ments.
8. If Allocated tips (Box 8) are being
reported for the individual employee (or
class of employees that are being pro-
vided Forms W–2), it is recommended
(but not required) that this box also be
outlined in bold 2-point rule or high-
lighted on Copy B. However, if allocated
tips are not being reported, this box may
be omitted by printers.
9. If Form W–2 contains additional
data concerning payroll deductions (e.g.,
saving bonds withholding, retirement
withholding, or payroll savings), there
should be a special highlighting of the
areas pertaining to Federal income tax
May 11, 1998121998–19 I.R.B.

withheld; wages, tips, and other compen-
sation; or Advance EIC (Earned Income
Credit) payments that are related to those
items.
10. Employers who are required to re-
port or withhold state income tax infor-
mation are required to include the follow-
ing boxes on substitute Forms W–2:
Box 16 - State and Employer’s state
identification (I.D.) number,
Box 17 – State wages, tips, etc., and
Box 18 – State income tax withheld.
11. Employers who are required to re-
port or withhold local income tax infor-
mation are required to include the follow-
ing boxes on substitute Forms W–2:
Box 19 – Locality name
Box 20 – Local wages, tips, etc., and
Box 21 – Local income tax.
12. If state or local tax information is
required, this information is also consid-
ered “core data.” The state and local in-
formation MUSTbe placed at the bottom
of the form. See the exhibits at the end of
this revenue procedure.
13. Other boxes on the IRS printed
form (Boxes 7 through 15) need not ap-
pear on substitute Forms W–2 provided to
employees unlessan employer has that
item of information to report to an em-
ployee. For example, if an employee did
not have Social Security tips (Box 7), Al-
located tips (Box 8), or Advance EIC pay-
ments (Box 9), the form could be printed
without these boxes. However, if the em-
ployer had provided amounts for depen-
dent care benefits, those amounts would
be required to be reported separately and
shown in a box labeled “Box 10, Depen-
dent care benefits,” as on the IRS printed
form and the exhibits in this revenue pro-
cedure.
14. Employers may provide multiple
entries in Box 13, but each entry should
use the same codes as assigned by the IRS
for that type of item. (See Reference
Guide for Box 13 Codes in the 1998 Form
W–2 instructions). For example, employ-
ers reporting deferred compensation must
label the box as “13d” and not as “13a”,
even though it is the first or only item to
go in this box. Use the codes shown with
the dollar amount. On Copy A, Form
W–2, do not enter more than three codes
in this box. If more than three items need
to be reported in box 13, use a separate
Form W–2 to report the additional items
(see Multiple Forms in the 1998 Form
W–2 instructions). However, employers
may enter more than three codes in box
13 of Copies 1, 2, B, C, and D of Form
W–2. Do not report in box 13 any items
that are not listed as codes A-Tin the
Form W–2 instructions. Do not report the
same Federal tax data to the SSA on more
than one Copy A, Form W–2.
15. For codes D,E,F,G,H, and S, if any
elective deferrals, salary reduction
amounts, or non-elective contributions to
a section 457(b) plan during the year are
make-up amounts under the Uniformed
Service Employment and Reemploy-
ment Rights Act of 1994 (USERRA)for
a prior year, you must enter prior year
contributions separately. You must enter
the code, the year, and the amount. For
example, elective deferrals to a section
401(k) plan are reported in box 13 as fol-
lows: D–1996–2250.00, D–1997–
1250.00. The 1998 contribution does not
require a year designation, enter it as D
7000.00.
16. If you are a military employer and
provide your employee with basic quar-
ters, subsistence allowances, and combat
zone compensation, report the amount in
Box 13, Form W–2, using code Q.
17. Employers contributions to an em-
ployees Medical Savings Account’s
(MSA), must be reported in Box 13, Form
W–2, using code R.
18. An employee elective contribution
to a salary reduction SIMPLE retirement
account must be included in Box 13,
Form W–2, using code S. However, if the
amount is contributed to a SIMPLE that
part of section 401(K) arrangement, that
amount must be reported in Box 13, Form
W–2, using Code D.
19. Amounts paid or expenses incurred
by an employer to or for an employee for
qualified adoption expenses must be
reported in Box 13, Form W–2, using
code T.
20. Employers may use Box 14 for any
other information you want to give your
employee. Please label each item. Exam-
ples are union dues, health insurance, pre-
miums deducted, nontaxable income, vol-
untary after-tax contributions, or
educational assistance payments.
21. If you are reporting prior year pay-
ments contributions under USERRA (see
item 15 above), you may report Box 14
make-up amounts for non-elective em-
ployer contributions, voluntary after-tax
contributions, required employee contri-
butions, and employer matching contribu-
tions. Report such amounts separately for
each year.
.05 Substitute forms for employees
(Copies B, C, and 2 of Forms W–2) must
meet the following requirements:
1. All copies of Forms W–2 must
clearly show the form number, the form
title, and the tax year. The title of Form
W–2 is “Wage and Tax Statement.” It is
recommended (but not required) that this
be located on the bottom left of Form
W–2. The reference to the Department of
the Treasury - Internal Revenue Service
must be on all copies of Form W–2 pro-
vided to the employee. It is recom-
mended (but not required) that this be lo-
cated on the bottom right of Form W–2.
2. If the substitute forms are not la-
beledas to the disposition of the copies,
then written notification must be provided
to each employee as specified below:
(a) The first copy of the form (Copy
B) is filed with the employee’s Federal
tax return.
(b) The second copy of the form
(Copy C) is for the employee’s records.
(c) If applicable, the third copy
(Copy 2) of the form is filed with the em-
ployee’s state, city, or local income tax re-
turn.
3. If the substitute forms are labeled,
the forms must contain the applicable de-
scription:
“Copy B, to be filed with employee’s
Federal tax return,” and“Copy C, for em-
ployee’s records.” It is recommended (but
not required) that this be located on the
lower left of Form W–2. The designation
“Form W–2, is recommended (but not re-
quired) to be located on the lower left of
Form W–2 and Department of the Trea-
sury - Internal Revenue Service.” It is
recommended (but not required) that this
be located on the lower right of Form
W–2.
4. Instructions similar to those con-
tained on the back of Copies B and C of
the official Form W–2 must be provided
to each employee. Employers may mod-
ify or delete certain information in these
instructions (such as modification for em-
ployees of railroads to cover Railroad Re-
tirement Tier I and II Compensation and
Taxes). Employers are allowed to delete
instructions that do not apply to the em-
ployee. For example, if none of the em-
1998–19 I.R.B.13May 11, 1998

ployees have dependent care benefits
(Box 10), the employer may delete the in-
structions for that item. Also, if an em-
ployer will only be reporting amounts for
a 401(k) plan in Box 13, those instruc-
tions may be modified to cover only Sec-
tion 401(k) contributions.
5. You must notify employees who
have no income tax withheld that they
may be able to claim a tax refund because
of the earned income credit (EIC). You
will meet this notification requirement if
you issue the IRS Form W–2 with the EIC
notice on the back of the employee’s copy
(Copy B), or a substitute Form W–2 with
the same statement. You may also meet
the requirement by providing a substitute
Form W–2 without the EIC notice and
Notice 797, Possible Federal Tax Refund
Due to the Earned Income Credit (EIC),
or your own statement that contains the
same wording. You also may change the
font on Employee Copy C (back page
only) so that the EIC notification and
W–2 instructions may fit entirely on the
back of Copy C. For more information
about notification requirements, see No-
tice 1015(formerly Pub. 1325), Employ-
ers-Have You Told Your Employees
About the Earned Income Credit (EIC).
NOTE: Printers are cautioned that the
rules set forth here (Part B. Sec. 2) apply
to employee copies (Copies B, C, etc.)
only. Paper filers who send Copy A of
Form W–2 to SSA must
follow the re-
quirements in Part B. Sec. 3, below for
those paper submissions.
SEC. 3. GENERAL RULES FOR
FILING “PAPER SUBSTITUTES”
FOR FORMS W–2 AND W–3
.01 Paper substitutes that conform to-
tally to the specifications contained in this
revenue procedure may be privately
printed without the prior approval of the
IRS. Penalties may be assessed for not
complying with the form specifications
set forth in this publication. SUBSTI-
TUTE FORMS THAT DO NOT CON-
FORM TOTALLY TO THESE SPECIFI-
CATIONS ARE NOT ACCEPTABLE.
This applies to both paper substitutes that
are filed with SSA and those that are
given to employees. Forms should not
be submitted to IRS or SSA for specific
approval. However, if you are uncertain
of any specification set forth herein and
want that specification clarified, you may
submit a letter citing the specification in
question, your interpretation of that speci-
fication, and an example of how the form
would appear if produced using your un-
derstanding of the specification. Any
questions pertaining to Copies B, C, and 2
of Forms W–2 should be sent to:
Internal Revenue Service
ATTN: Substitute Form W–2
Coordinator
T:C:A:C:I,Room C7-443
5000 Ellin Rd.
Lanhan, MD.20706
Any questions pertaining to Copy A,
Form W–2, and Form W–3 should be for-
warded to:
Social Security Administration
Data Operations Center
1150 E. Mountain Drive
Attn: Program Analyst Office Room
449
Wilkes-Barre, PA 18702-7997
NOTE: You should allow at least 30days
for the IRS and SSA to respond.
.02 Forms W–2 and W–3 are subject to
annual review and possible change. Em-
ployers are cautioned against overstock-
ing supplies of privately printed substi-
tutes.
.03 Copies of the current year IRS
printed Forms W–2 and W–3 and the in-
structions for these forms may be ob-
tained through electronic options on the
Internet at http://www.irs.ustreas.gov, or
from most IRS offices or by calling 1-
800-829-3676. The IRS provides only
cut sheet sets.
.04 Substitute Forms W–2 and W–3
transmitted to SSA should generally con-
tain only data that is required by the Form
W–2, the Form W–2 instructions, and this
revenue procedure.
.05 Substitute Forms W–2, Copy A,
and W–3 are machine imaged and
scanned by Social Security, therefore
these forms must meet the same specifica-
tions as Forms W–2 and W–3 produced
by IRS. The vertical and horizontal spac-
ing for all Federal payment and data
boxes on Form W–2 must be in compli-
ance with the specifications contained
herein.
.06 All ballot boxes on Forms W–2,
Copy A (Box 15), and W–3 (Box “b”)
must be 8-point boxes.
NOTE: If a box is marked, more than
50% of the applicable ballot box must be
covered by an “X”.
.07 Copy A of Form W–2 and Form
W–3 must have the form producer’s EIN
entered to the left of “Department of Trea-
sury”.
PART C. ADDITIONAL
INSTRUCTIONS
SEC. 1. INSTRUCTIONS FOR
FORMS PRINTERS
.01 Except as provided below, if mag-
netic media is not used for filing with
SSA, the substitute copies of Forms W–2
assembly should be arranged in the same
order as the IRS printed Forms W–2.
Copy A should be first, followed sequen-
tially by perforated sets (Copies 1, B, C,
2, and D). The substitute form to be filed
by the employer with SSA must carry the
designation “Copy A.”
NOTE:Magnetic media filers do not
submit Copy A of Form W–2 or Form
W–3. Form 6559 is the transmittal for
magnetic media filed Form W–2 data.
1. It is not a requirement that privately
printed substitute forms contain a copy to
be retained by employers (Copy D). How-
ever, employers must be prepared to ver-
ify or duplicate this information if it is re-
quested by the IRS or SSA. Paper filers
that do not keep Copy D should be able to
generate a facsimile of Copy A in case of
loss.
2. Except as provided in the arrange-
ment of the official assemblies, additional
copies that may be prepared by employers
shall not be placed ahead of the copy “For
EMPLOYEE’S RECORDS,” Form W–2
(Copy C).
3. Instructions similar to those con-
tained on the back of Copies B and Cof
the official form MUST be provided to
each employee. These instructions may
be printed on the back of the substitute
Copy B and C or may be provided to em-
ployees on a separate statement. Do not
print these instructions on the back of
copies 1 or 2 that is to be filed with the
employee’s state or local returns.
.02 All privately printed Forms W–3
and Forms W–2 (Copy A), must have the
tax year, form number, and form title
printed on the bottom face of each form
using identical type to that of the official
format. The tax year must be printed in
non-reflective black ink using 24 pt
OCRA-font (copy A), of Forms W–2,
and Forms W–3. The form title, e.g.,
May 11, 1998141998–19 I.R.B.

Wage and Tax Statement must be
printed in red OCR drop-out ink on
Form W–2, Copy A, and Form W–3.
The form identifying control number of
Forms W–2 and Form W–3, must be
printed in non-reflective black ink,
using OCRA-font, printed 10 charac-
ters per inch. The word “Form” on the
W–2 and W–3 must be printed in red
OCR drop-out ink.
.03 The substitute Form W–2, Copy B,
which employees attach to their Federal
income tax return, must be at least 12-
pound paper (basis 17 322–500) while
the other copies furnished to employee’s
should be at least 9-pound paper (basis 17
322–500).
.04 Employee copies of Forms W–2
(Copies B, C, etc.), including those that
are printed on a single sheet of paper,
MUSTbe produced so as to be easily sep-
arated by the employee. Perforations be-
tween the individual copies that are
printed on a single sheet of paper satisfy
this requirement.
.05 The Form W–2, Copy A, and the
OCR bond Form W–3 that are filed with
SSA must have no printing on the reverse
side.
.06 Instructions similar to those pro-
vided as part of the official form must be
provided as part of any substitute Form
W–3.
.07 The copy of the substitute Form
W–3 that contains the instructions and is
to be retained by the employer should be
at least 18-pound paper (basis 17 3
22–500).
SEC. 2. INSTRUCTIONS FOR
EMPLOYERS
.01 Only originals or ribbon copies of
Copy A (Forms W–2) and Form W–3 may
be filed with SSA. Carbon copies and
photocopies are not acceptable.
.02 Employers should type or machine
print entries on forms whenever possible
and provide good quality data entries by
using a high quality type face, inserting
data in the middle of blocks that are well
separated from other printing and guide-
lines, and taking any other measures that
will guarantee clear, sharp images. The
print character size must be no more than
12 characters per inch.Omit dollar signs
but include decimal points for all cents
amounts. The employer must provide a
machine scannable form for Copy A. The
employer must refrain from printing any
data in the top margin of the forms. The
employer must also provide payee copies
(Copies B, C, and 2) that are legible and
capable of being photocopied (by the em-
ployee).
.03 The Employer Identification Num-
ber (EIN) may be entered in the Em-
ployer’s name and address box on Copy A
of Forms W–2 (Box “c” on the IRS printed
Form W–2). If this is done, the EIN need
not be entered in the box provided for the
EIN (Box “b” on the IRS printed Form
W–2). The EIN must be entered in Box
“e” of the Form W–3. Note: EIN entered
on Form W–3 Box “e” must be the same
EIN entered on Forms W–2 Box “b”,
and on Form 941 as well.
.04 The employer’s name, address, and
EIN may be preprinted.
.05 The optional employer’s state
number may be pre-printed in the em-
ployer’s name, address, and ZIP code
box. If this is done, the Employer’s state
I.D. Number section in Box 16 of Forms
W–2 need not be completed, as long as
the applicable state taxing authority does
not object. Please check with the appro-
priate state taxing authority before
doing this.
.06 Generally, an agent that has an ap-
proved Form(s) 2678, Employer Appoint-
ment of Agent, should enter its name as
the employer in Box c of Form W–2, and
file one Form W–2. However, if the agent
is acting as an agent for two or more em-
ployers, or is an employer and is acting as
an agent for another employer, and pays
social security wages in excess of the
wage base to an individual, special report-
ing for payments to that individual is
needed. The agent should file separate
Forms W–2 reflecting the wages paid by
each employer. Box “c” of Form W–2
should include name of agent, agent for
(name of employer), and address of agent.
Each Form W–2 should reflect the EIN of
the agent in Box “b”. In addition the em-
ployer’s EIN should be shown in Box “h”
of Form W–3.
.07 The preparation and filing instruc-
tions for Forms W–2 are contained in the
1998 Instructions for Form W–2. The
preparation and filing instructions for
Form W–3 are contained as part of the
1998 Form W–3 snap set assembly.
.08 To avoid confusion and questions
by employees, employers are encouraged
to delete the following items from the em-
ployee copies of Forms W–2 that are pro-
vided to employees:
1 Form identifying number (e.g.,
22222);
2 The word “void” and associated box
3 Any other captions or box number
that would not be of any informational
use to employees (unless otherwise re-
quired).
.09 Employers should use the IRS sup-
plied label when filing Form W–3 with
SSA. The label should be placed inside
the brackets printed in Boxes “e” and “f”.
SEC. 3. OFFICE OF MANAGEMENT
AND BUDGET (OMB)
REQUIREMENTS FOR SUBSTITUTE
FORMS
.01 The Paperwork Reduction Act re-
quires: (1) OMB approval of IRS tax
forms, (2) that each form (all copies)
show the OMB approval number and,
when appropriate, the form’s expiration
date, and (3) that the form (or its instruc-
tions) state why IRS is collecting the in-
formation, how we will use it and whether
it must be given to us. The official IRS
form (or instructions) will contain this in-
formation.
.02 As it applies to substitute IRS
forms, this means:
1. All substitute forms (all copies)
must
show the OMB number as it appears
on the official IRS printed form (see Ex-
hibits A and B).
2. The OMB number must be in one of
the following formats:
OMB No. 1545-0008 (preferred),
or
OMB # 1545-0008
3. You must inform the users of your
substitute forms of the reasons for IRS
collection, use, and requirements, as
stated in the instructions for the official
IRS form.
Sec. 4. FORMS and PUBLICATIONS
.01 Electronic access to IRS tax forms,
instructions, publications, and other tax
data is available through the following:
Modem: IRIS at FedWorld (703)
321-8020
Technical questions regarding Fed-
World can be directed to the FedWorld
help desk 24 hours a day at (703) 487-
4608.
1998–19 I.R.B.15May 11, 1998

Internet: Telnet - iris.irs.ustreas.gov
FTP - ttp.irs.ustreas.gov
WWW - http://www.irs.ustreas.gov
Fax Forms: (703) 487-4160
.02 Over 100 of the most requested
forms and instructions may be obtained
via your fax machine. Just call (703) 487-
4160 from the telephone connected to
your fax machine.
.03 A CD-ROM containing over 2,000
tax forms, instructions, and publications
may be purchased from the Government
Printing Office (GPO), Superintendent of
Documents (Supt. Docs.). Current tax
year materials, and tax forms from 1991
and publications from 1994, are included
on the disc. To order the CD-ROM, con-
tact Supt. Docs. At (202) 512-1800 (select
Option #1), or by computer through
GPO’s Internet Web Site (http;//www.
access.gpo.gov/su docs).
.04 List of Social Security Administra-
tions Magnetic Media Coordinators is in-
cluded in the Appendix.
Sec. 5 EFFECT ON OTHER REVENUE
PROCEDURES
.01 Rev. Procs. 97–24 and 97–24A,
I.R.B. 1997–16, dated April 21, 1997, and
I.R.B. 1997–20, dated May 19, 1997,
(Reprinted as Publication 1141, Revised
4–97), is superseded.
May 11, 1998161998–19 I.R.B.

1998–19 I.R.B.17May 11, 1998

May 11, 1998181998–19 I.R.B.

1998–19 I.R.B.19May 11, 1998

May 11, 1998201998–19 I.R.B.

1998–19 I.R.B.21May 11, 1998

May 11, 1998221998–19 I.R.B.

1998–19 I.R.B.23May 11, 1998

May 11, 1998241998–19 I.R.B.
Foundations Status of Certain
Organizations
Announcement 98–37
The following organizations have
failed to establish or have been unable to
maintain their status as public charities or
as operating foundations. Accordingly,
grantors and contributors may not, after
this date, rely on previous rulings or des-
ignations in the Cumulative List of Orga-
nizations (Publication 78), or on the pre-
sumption arising from the filing of notices
under section 508(b) of the Code. This
listing does notindicate that the organiza-
tions have lost their status as organiza-
tions described in section 501(c)(3), eligi-
ble to receive deductible contributions.
Former Public Charities.The following
organizations (which have been treated as
organizations that are not private founda-
tions described in section 509(a) of the
Code) are now classified as private foun-
dations:
Hospice of the Heart Inc., Whitney, TX
Hot Rod Hundley Foundation, Salt Lake
City, UT
Hot Springs Documentary Film Festival,
Hot Springs, AR
Hugs Inc., Paulsboro, NJ
Human Touch, Kansas City, MO
Humane Society of Van Buren County,
Spencer, TN
Humanitarian Aid for Ethiopia,
Washington, DC
Humanities Corporation, Phoenix, AZ
Hundred Club of Alvin, Alvin, TX
Hundred Club of Greater Charleston Inc.,
Charleston, SC
Hungarian Baptist Union of Romania
Incorporated, Dallas, TX
Hunterdon County Housing Corporation,
W. Orange, NJ
Huntsville Firefighters Retirees
Association Inc., Huntsville, AL
Hurricane Andrew Relief Association of
IRS Employees, Plantation, FL
Hurricane Proof and Flood Resistant
Housing Foundation, Houston, TX
Hutchinson Archives Inc., Hutchinson,
KS
Hyde County Childrens Center Inc.,
Engelhard, NC
Hydrocephalus Association of
Philadelphia, Philadelphia, PA
Hytowl Inc., Chicago, IL
Jireh Development Corporation,
Cincinnati, OH
Joe Wibel III Memorial Scholarship
Fund, Crossville, TN
Joedy P. Hendrix Jr. Ministries Inc.,
Checotah, OK
Joeys Shelter Inc., Atlanta, GA
John & Lisa Mcdaniel Ministries Inc.,
Memphis, TN
John Christian Charity Trust Inc.,
Pittsburgh, PA
Johnson County Fire Training
Association Inc., Cleburne, TX
Johnson Volunteer Fire Department,
Ellisville, MS
Jr Pantherettes, Newark, OH
Just Because Inc., Arvada, CO
Just for the Kids of N P C Inc., Danville,
IN
Justice Building Inc., Corpus Christi, TX
Juvenile Officers Association of
Michigan & Ontario, Detroit, MI
Juvenile Awareness in Law Enforcement
and Life Inc., Lithonia, GA
Kent County Central Committee, Grand
Rapids, MI
Kentucky Baptist Disaster Relief
Southeastern Region, Barbourville,
KY
Kentucky Center To Prevent Gun
Violence, Prospect, KY
Kentucky Educational Fund for Handicap
Children Inc., Frankfort, KY
Kentucky High School Junior All Stars
Inc., Madisonville, KY
Kentucky Homeless Shelter Inc., Detroit,
MI
Kentucky Recycling Association Inc.,
Independence, KY
Kentucky Refugee Ministries Inc.,
Louisville, KY
Kentucky Society of Healthcare Planning
and Marketing Inc., Louisville, KY
Kerr County Sheriffs Reserve, Kerrville,
TX
Kids for Education, Dearborn Heights,
MI
Kids Like Me of Johnson County,
Shawnee Mission, KS
Kids Network Inc., Superior, WI
Kids Unlimited, Tucson, AZ
Kings Ambassadors Inc., Argyle, TX
Kings Kids Day Care Inc., Gardner, KS
Kingston Township Raiders Junior
Football Inc., Shavertown, PA
Kingston Youth League, Chillicothe, OH
Kiwanis Club of Longmont Foundation,
Longmont, CO
Kiwanis Club of Sarasota Sunrise
Foundation Inc., Sarasota, FL
Kiwanis Park Inc., Irvine, KY
Knightlife Inc., Memphis, TN
Knights of Christ Inc., Clarksville, IN
Knoxville Concert Band, Knoxville, TN
Knoxville Fall Baseball League,
Knoxville, TN
Koala Lebanon Alumni Association Inc.,
Lebanon, IN
Koinonia Agape Ministries Inc., Orlando,
FL
Koinonia House of Jackson County,
Jackson, MI
Kokopelli Notes, Asheville, NC
Korean American Citizens Coalition,
Chicago, IL
Korner Klub Inc., Hillsboro, WI
KPCH Inc., Winston Salem, NC
Krewe of Christmas Inc., New Orleans,
LA
Life Choice Mission Inc., Cocoa Beach,
FL
Life Conservation Inc., Atlanta, GA
Life Cycle of Indiana Inc., Indianapolis,
IN
Life Education Network of Florida Inc.,
Maitland, FL
Life Giver Inc. of Hampton Roads,
Virginia Beach, VA
Life Line Ministries Inc., Lafayette, LA
Life Rescue Mission, Norristown, PA
Life Styles Inc., Hoisington, KS
Life Transition Therapy Institute, Santa
Fe, NM
Lifeline Ministries, Marshall, MN
Light Club No. 2 Inc., Jacksonville, TX
Lighthouse Childrens Home and
Ministries Inc., Fort Valley, GA
Lil Pardners Child Care and Learning
Center Inc., Terrell, TX
Lima Area Parkinson Support Group Inc.,
Lima, OH
Lincoln County Band Boosters of the
Lincoln County Bands, Stanford, KY
Living Alternatives Inc., Tyler, TX
Living Alternatives of Jacksonville Inc.,
Jacksonville, TX
Living Faith Group A Member Group of
Alcoholics Anonymous, Austin, TX
Living Sanctuary of Faith, Broadview, IL
Lloyd E Collins Scholarship Fund,
Danbury, NC
Part IV. Items of General Interest

1998–19 I.R.B.25May 11, 1998
Lo-Tech Research & Development Inc.,
St. Petersburg, FL
Los Barrios Unidos Health Foundation,
Dallas, TX
Los-Islenos Heritage & Cultural Society,
Violet, LA
Los Ninos Inc., Albuquerque, NM
Losers Inc., Kennesaw, GA
Lost Pines Industries, Cedar Creek, TX
Lotus Production Company Inc., Kansas
City, MO
Louisiana Cancer Coalition, Baton
Rouge, LA
Louisiana Feed-a-Meal Inc., Ruston, LA
Louisiana Oilmans Charity Invitational
Inc., New Orleans, LA
Love for Children of Clark County,
Jeffersonville, IN
Love Inc. of Bradley County Tennessee,
Cleveland, TN
Love the People Inc., Bozeman, MT
Love To Serve Incorporated, Chicago, IL
Loveland Police Dept. Racing Team,
Loveland, CO
Low Income Housing Foundation of New
Mexico Inc., Albuquerque, NM
Lower 9th Ward Coalition Inc., New
Orleans, LA
Lower Woodville Youth Development
Club, Natchez, MS
LRGS Educational Foundation Inc.,
Baker, WV
Lt. Ben Benjamin O. Davis Jr. Chapter
Tuskegee Airmen, Box Elder, SD
Luis H. Garcia Memorial Scholarship
Fund Inc., Trenton, NJ
Luther Heights Inc., Bettendorf, IA
Lutheran Bears Football Association Inc.,
Saginaw, MI
Lutheran Social Services of the Greater
Charleston Area, N. Charleston, SC
Luthern Family Services of Tennessee,
Knoxville, TN
Lycoming Animal Protection Society
Inc., Montoursville, PA
Lydia Rose Hummel-Dosmann
Educational Foundation Inc.,
Milwaukee, WI
Lyman Adult Foster Care, Detroit, MI
Lyme Disease Institute Inc., Cape
Girardeau, MO
Michael E. Griffith Memorial
Foundation, Inc., Copperas Cove, TX
Michigan Black Shell Service Station
Dealers, Detroit, MI
Michigan Chiropractic Foundation, East
Lansing, MI
Michigan Environmental Trust Ltd,
Bloomfield Hills, MI
Michigan Theatre Center Inc., Detroit,
MI
Mid-Del Food Pantry Inc., Midwest City,
OK
Mississippi Junior Chamber of Source
Foundation, Inc., Meridian, MS
Mississippi Writers Association Inc.,
Jackson, MS
Missoula on Ice Inc., Missoula, MT
Missouri Valley Historical Society,
Bismarck, ND
Missouri Valley Tennis E&R Foundation,
Kansas City, MO
MNI SOSE Water Rights Coalition,
Rapid City, SD
Mobile Beauty-N-Massage Inc., Dallas,
TX
Mobile City Relief, Memphis, TN
Mohave Literacy Council Incorporated,
Fort Mohave, AZ
Moms Day Care Center, St. Thomas, VI
Montgomery Dancers Unlimited, Mt.
Carbon, WV
Montrose Community Foundation,
Montrose, MI
Monumental Rifle & Pistol Club-Junior
Division Incorporated, Clarksville, MD
Moon Hut, Boulder, CO
Mount Pocono Sports Complex Fund
Committee, Inc., Mt. Pocono, PA
Mountain State Art and Craft Fair
Scholarship and Grant Fund, Kenna,
WV
Mount Sneffels Education Foundation,
Ridgway, CO
Mount Zion Fellowship Inc., New Bern,
NC
Mountain Meadow Ranch Bible Camp,
Phoenix, AZ
Mt. St. Alban Independent Scholastic
Newspaper, Inc., Washington, DC
Mt. Vernon Optimist Youth Baseball-
Softball, Inc., Mt. Vernon, IL
Multi-Cultural Initiatives Alliance, St.
Paul, MN
Muslimat Al Nissa Jamiyatt Inc., Atlanta,
GA
Mustard Seed Ministries Inc.,
Springfield, IL
My Brothers Keeper Ministry Keepers
Inn, Youngstown, OH
My Friends House Inc., College Park,
GA
My Life Development Corps, Decatur,
GA
Neighborhood Senior Center Inc., New
Orleans, LA
Neighborhood Visions Inc., Kansas City,
KS
Neolaia of Pasco Inc., Holiday, FL
New Hanover Adolescent Health
Council, Incorporated, Wilmington,
NC
New Hope Baptist Ministries of Summit
County-Akron, OH, Akron, OH
New Hope Boys Ranch Inc., Overton, TX
New Hope for Tomorrow Foundation,
Columbus, OH
New Hope Housing Ministries Inc.,
Hudsonville, MI
New Horizons Community Services Inc.,
Prescott Valley, AZ
New Life Programs Inc., Dawsonville,
GA
New Mexico Clogging Association,
Albuquerque, NM
New Mexico Elite Volleyball Club,
Albuquerque, NM
New Mexico National Guard Historical
Foundation, Inc., Santa Fe, NM
New Mexico Open Land Trust, Santa Fe,
NM
New Mexico State DAREBoard, Santa
Fe, NM
New Orleans Technology Council
Corporation, New Orleans, LA
New World Foundation Inc., Miami, FL
O. J. Esquivel Foundation, Kingsville,
TX
Oak Cliff Christian Housing Inc., Dallas,
TX
Oak Grove Missions to Russia,
Poplarville, MS
Oconto Falls Area School Age Child Care
Inc., Oconto Falls, WI
Oconto Falls Partners in Education Inc.,
Oconto Falls, WI
Odessa Pony League, Odessa, MO
Ofallon Community Center Inc., Ofallon,
IL
Office of Black and Minority Health for
the State of Wisconsin, Glendale, WI
Ohio Entrepreneurship Association,
Reynoldsburg, OH
Ohio Eta Foundation of Sigma Phi
Epsilon, Cincinnati, OH
Ohio Leadership Institute Inc., Ironton,
OH
Ohio Psychiatric Nurses Network,
Cleveland, OH
Ohio Schools Development Corporation,
Columbus, OH

May 11, 1998261998–19 I.R.B.
Ohio Valley Harvest Inc., Wheeling,
WV
Oki Wildlife Cooperative, Pleasant Plain,
OH
Oklahoma Association of Resource
Conservation & Development
Councils, Burns Flat, OK
Oklahoma Association of Scholars,
Oklahoma City, OK
Oklahoma Special Rescue Team Inc.,
Duncan, OK
Oklahoma Tamil Sangam, Oklahoma
City, OK
Oklahoma Toxics Campaign Fund Inc.,
Oklahoma City, OK
Okmulgee Art Guild Inc., Okmulgee, OK
Olathe Sister Cities Association Inc.,
Olathe, KS
Old Camp Meeting Ministries, Arlington,
TX
Old East Dallas Renaissance Project,
Dallas, TX
Old Fourth Ward Redevelopment Inc.,
Atlanta, GA
Old Mill Hill Society Inc., Trenton, NJ
Old Neighborhood Rehab Inc.,
Springfield, IL
Old Rockport Inc., Rockport, IN
Oldham County Heritage Farm and
Branch Museum of Vega Texas Inc.,
Vega, TX
Olive Gardens Development Corporation
Inc., Brinly, AR
Omaha South High School Alumni
Association, Omaha, NE
Omega Kappa Kappa Gamma
Educational Foundation, Leawood, KS
One Love Inc., Savannah, GA
One Veterans Crusade for Christ Inc.,
Green Cove Springs, FL
One World Now Inc., Houston, TX
Onslow Arts & Crafts Association,
Jacksonville, NC
Open Air Recovery Productions Inc.,
Seminole, FL
Open Door Health Clinic Inc., Frankfort,
IN
Open Door Theater Inc., Ft. Wayne, IN
Opera Piccola, Arlington, VA
Operation Education Incorporated,
Plainsboro, NJ
Operation Fresh Start, Columbus, OH
Operation Luz de Sol Incorporated,
Washington, DC
Operation Orphan Wildlife
Rehabilitation, Akron, OH
Operation Playground, Crystal Lake, IL
Operation Reach Out, Detroit, MI
Orange County Radio Amateurs
Incorporated, Chapel Hill, NC
Orchard Manor Resident Management
Corporation, Charleston, WV
Organico Institute Corporation, Ashland,
WI
Orion Institute, Salt Lake City, UT
Orlando Wheelchair Games Inc.,
Orlando, FL
Orthopaedic Research Foundation Inc.,
Fayetteville, AR
Osage Community Day School Inc.,
Aurora, CO
Osceola County Intergroup of Alcoholics
Anonymous, St. Cloud, FL
Osprey Baseball Alumni Club, Savannah,
GA
Others Inc., Atlanta, GA
Ottawa Kiwanis Retirement Community
Inc., Ottawa, OH
Our Children in the Courts Foundation,
Chicago, IL
Our Daily Bread of Bradenton Inc.,
Bradenton, FL
Our Industries, San Marcos, TX
Our Jobs Our Children Our Future Inc.,
Huntington, WV
Our Little Angels Inc., Lebanon, IN
Outreach Community Services Inc., Lake
Providence, LA
Outreach Ministries Inc., Green Forest,
AR
Owen County Art Guild Inc., Spencer,
IN
Owensboro Metropolitan Parks
Foundation Inc., Owensboro, KY
Owl Feather War Bonnet Womens
Resource Center, St. Francis, SD
Ozark Alternative Crop Education
Training and Promotion Association
Inc., Searcy, AR
Ozarks 285 Amateur Radio Club,
Clarksville, AR
If an organization listed above submits
information that warrants the renewal of its
classification as a public charity or as a pri-
vate operating foundation, the Internal
Revenue Service will issue a ruling or de-
termination letter with the revised classifi-
cation as to foundation status. Grantors and
contributors may thereafter rely upon such
ruling or determination letter as provided
in section 1.509(a)–7 of the Income Tax
Regulations. It is not the practice of the
Service to announce such revised classifi-
cation of foundation status in the Internal
Revenue Bulletin.
Loans to Plan Participants;
Correction
Announcement 98–38
AGENCY: Internal Revenue Service,
Treasury.
ACTION: Correction to a notice of pro-
posed rulemaking.
SUMMARY: This announcement con-
tains corrections to the notice of proposed
rulemaking (REG–209476–82 [1998–8
I.R.B. 36]), which was published in the
Federal RegisterFriday, January 2, 1998
(63 F.R. 42), relating to loans made from
a qualified employer plan to plan partici-
pants or beneficiaries.
FOR FURTHER INFORMATION CON-
TACT: Vernon Carter (202) 622-6070
(not a toll-free number).
SUPPLEMENTARY INFORMATION:
Background
The notice of proposed rulemaking that
is the subject of these corrections is under
sections 72(p) of the Internal Revenue
Code.
Need for Correction
As published, REG–209476–82 con-
tains errors which may prove to be mis-
leading and are in need of clarification.
Correction of Publication
Accordingly, the publication of the no-
tice of proposed rulemaking (REG–
209476–82), which was the subject of F.R.
Doc. 97–33983, is corrected as follows:
1. On page 43, column 2, in the pream-
ble under the paragraph heading “Expla-
nation of Provisions”, the first full para-
graph in the column, line 18, the language
“However, a special rule applies if a plan”
is corrected to read “In addition, a special
rule applies if a plan”.
2. On page 43, column 2, in the pream-
ble under the paragraph heading “Expla-
nation of Provisions”, the first full para-
graph in the column, line 26, the language
“increase in basis thereafter is less than”
is corrected to read “increase in basis
thereafter (e.g., from after-tax contribu-
tion) is less than”.
Cynthia E. Grigsby,
Chief, Regulations Unit,
Assistant Chief Counsel (Corporate).

1998–19 I.R.B.27May 11, 1998
Revenue rulings and revenue procedures
(hereinafter referred to as “rulings”) that
have an effect on previous rulings use the
following defined terms to describe the
effect:
Amplified describes a situation where
no change is being made in a prior pub-
lished position, but the prior position is
being extended to apply to a variation of
the fact situation set forth therein. Thus,
if an earlier ruling held that a principle
applied to A, and the new ruling holds
that the same principle also applies to B,
the earlier ruling is amplified. (Compare
with modified, below).
Clarified is used in those instances
where the language in a prior ruling is
being made clear because the language
has caused, or may cause, some confu-
sion. It is not used where a position in a
prior ruling is being changed.
Distinguisheddescribes a situation
where a ruling mentions a previously
published ruling and points out an essen-
tial difference between them.
Modified is used where the substance
of a previously published position is
being changed. Thus, if a prior ruling
held that a principle applied to A but not
to B, and the new ruling holds that it ap-
plies to both A and B, the prior ruling is
modified because it corrects a published
position. (Compare with amplified and
clarified, above).
Obsoleted describes a previously pub-
lished ruling that is not considered deter-
minative with respect to future transac-
tions. This term is most commonly used
in a ruling that lists previously published
rulings that are obsoleted because of
changes in law or regulations. A ruling
may also be obsoleted because the sub-
stance has been included in regulations
subsequently adopted.
Revoked describes situations where the
position in the previously published rul-
ing is not correct and the correct position
is being stated in the new ruling.
Superseded describes a situation where
the new ruling does nothing more than
restate the substance and situation of a
previously published ruling (or rulings).
Thus, the term is used to republish under
the 1986 Code and regulations the same
position published under the 1939 Code
and regulations. The term is also used
when it is desired to republish in a single
ruling a series of situations, names, etc.,
that were previously published over a pe-
riod of time in separate rulings. If the
new ruling does more than restate the
substance of a prior ruling, a combination
of terms is used. For example, modified
and superseded describes a situation
where the substance of a previously pub-
lished ruling is being changed in part and
is continued without change in part and it
is desired to restate the valid portion of
the previously published ruling in a new
ruling that is self contained. In this case
the previously published ruling is first
modified and then, as modified, is super-
seded.
Supplemented is used in situations in
which a list, such as a list of the names of
countries, is published in a ruling and
that list is expanded by adding further
names in subsequent rulings. After the
original ruling has been supplemented
several times, a new ruling may be pub-
lished that includes the list in the original
ruling and the additions, and supersedes
all prior rulings in the series.
Suspended is used in rare situations to
show that the previous published rulings
will not be applied pending some future
action such as the issuance of new or
amended regulations, the outcome of
cases in litigation, or the outcome of a
Service study.
Abbreviations
The following abbreviations in current use and for-
merly used will appear in material published in the
Bulletin.
A—Individual.
Acq.—Acquiescence.
B—Individual.
BE—Beneficiary.
BK—Bank.
B.T.A.—Board of Tax Appeals.
C.—Individual.
C.B.—Cumulative Bulletin.
CFR—Code of Federal Regulations.
CI—City.
COOP—Cooperative.
Ct.D.—Court Decision.
CY—County.
D—Decedent.
DC—Dummy Corporation.
DE—Donee.
Del. Order—Delegation Order.
DISC—Domestic International Sales Corporation.
DR—Donor.
E—Estate.
EE—Employee.
E.O.—Executive Order.
ER—Employer.
ERISA—Employee Retirement Income Security Act.
EX—Executor.
F—Fiduciary.
FC—Foreign Country.
FICA—Federal Insurance Contribution Act.
FISC—Foreign International Sales Company.
FPH—Foreign Personal Holding Company.
F.R.—Federal Register.
FUTA—Federal Unemployment Tax Act.
FX—Foreign Corporation.
G.C.M.—Chief Counsel’s Memorandum.
GE—Grantee.
GP—General Partner.
GR—Grantor.
IC—Insurance Company.
I.R.B.—Internal Revenue Bulletin.
LE—Lessee.
LP—Limited Partner.
LR—Lessor.
M—Minor.
Nonacq.—Nonacquiescence.
O—Organization.
P—Parent Corporation.
PHC—Personal Holding Company.
PO—Possession of the U.S.
PR—Partner.
PRS—Partnership.
PTE—Prohibited Transaction Exemption.
Pub. L.—Public Law.
REIT—Real Estate Investment Trust.
Rev. Proc.—Revenue Procedure.
Rev. Rul.—Revenue Ruling.
S—Subsidiary.
S.P.R.—Statements of Procedral Rules.
Stat.—Statutes at Large.
T—Target Corporation.
T.C.—Tax Court.
T.D.—Treasury Decision.
TFE—Transferee.
TFR—Transferor.
T.I.R.—Technical Information Release.
TP—Taxpayer.
TR—Trust.
TT—Trustee.
U.S.C.—United States Code.
X—Corporation.
Y—Corporation.
Z—Corporation.
Definition of Terms

May 11, 1998281998–19 I.R.B.
1
A cumulative list of all revenue rulings, revenue
procedures, Treasury decisions, etc., published in
Internal Revenue Bulletins 1997–27 through
1997–52 will be found in Internal Revenue Bulletin
1998–1, dated January 5, 1998.
Numerical Finding List
1
Bulletins 1998–1 through 1998–18
Announcements:
98–1, 1998–2 I.R.B. 38
98–2, 1998–2 I.R.B.38
98–3, 1998–2 I.R.B.38
98–4, 1998–4 I.R.B.31
98–5, 1998–5 I.R.B. 25
98–6, 1998–5 I.R.B. 25
98–7, 1998–5 I.R.B. 26
98–8, 1998–6 I.R.B. 96
98–9, 1998–7 I.R.B. 35
98–10, 1998–7 I.R.B. 35
98–11, 1998–8 I.R.B. 42
98–12, 1998–8 I.R.B. 43
98–13, 1998–8 I.R.B. 43
98–14, 1998–8 I.R.B. 44
98–15, 1998–10 I.R.B.36
98–16, 1998–9 I.R.B. 17
98–17, 1998–9 I.R.B. 16
98–18, 1998–10 I.R.B.44
98–19, 1998–10 I.R.B.44
98–20, 1998–11 I.R.B. 25
98–21, 1998–11 I.R.B. 26
98–22, 1998–12 I.R.B. 33
98–23, 1998–12 I.R.B. 34
98–24, 1998–12 I.R.B. 35
98–25, 1998–13 I.R.B.43
98–26, 1998–14 I.R.B. 28
98–27, 1998–15 I.R.B. 30
98–28, 1998–15 I.R.B. 30
98–29, 1998–16 I.R.B. 48
98–30, 1998–17 I.R.B. 38
98–32, 1998–17 I.R.B. 39
98–33, 1998–17 I.R.B. 39
98–34, 1998–17 I.R.B. 39
98–35, 1998–17 I.R.B. 40
98–36, 1998–18 I.R.B. 18
Notices:
98–1, 1998–3 I.R.B. 42
98–2, 1998–2 I.R.B. 22
98–3, 1998–3 I.R.B. 48
98–4, 1998–2 I.R.B. 25
98–5, 1998–3 I.B.R.49
98–6, 1998–3 I.R.B. 52
98–7, 1998–3 I.R.B. 54
98–8, 1998–4 I.R.B. 6
98–9, 1998–4 I.R.B. 8
98–10, 1998–6 I.R.B.9
98–11, 1998–6 I.R.B. 18
98–12, 1998–5 I.R.B.12
98–13, 1998–6 I.R.B.19
98–14, 1998–8 I.R.B. 27
98–15, 1998–9 I.R.B. 8
98–16, 1998–15 I.R.B. 12
98–17, 1998–11 I.R.B. 6
98–18, 1998–12 I.R.B. 11
98–19, 1998–13 I.R.B.24
98–20, 1998–13 I.R.B.25
98–21, 1998–15 I.R.B. 14
98–22, 1998–17 I.R.B. 5
98–23, 1998–18 I.R.B. 9
98–24, 1998–17 I.R.B. 5
98–25, 1998–18 I.R.B. 11
98–26, 1998–18 I.R.B. 14
98–27, 1998–18 I.R.B. 14
Proposed Regulations:
PS–158–86, 1998–11 I.R.B. 13
REG–100841–97, 1998–8 I.R.B. 30
REG–102144–98, 1998–15 I.R.B.25
REG–102894–97, 1998–3 I.R.B. 59
REG–104062–97, 1998–10 I.R.B. 34
REG–104537–97, 1998–16 I.R.B. 21
REG–104691–97, 1998–11 I.R.B. 13
REG–105163–97, 1998–8 I.R.B. 31
REG–109333–97, 1998–9 I.R.B. 9
REG–109704–97, 1998–3 I.R.B. 60
REG–110965–97, 1998–13 I.R.B. 42
REG–115795–97, 1998–8 I.R.B.33
REG–119449–97, 1998–10 I.R.B. 35
REG–120200–97, 1998–12 I.R.B. 32
REG–120882–97, 1998–14 I.R.B. 25
REG–121755–97, 1998–9 I.R.B. 13
REG–208299–90, 1998–16 I.R.B. 26
REG–209276–87, 1998–11 I.R.B. 18
REG–209322–82, 1998–15 I.R.B. 26
REG–209373–81, 1998–14 I.R.B. 26
REG–209463–82, 1998–4 I.R.B. 27
REG–209476–82, 1998–8 I.R.B. 36
REG–209484–87, 1998–8 I.R.B.40
REG–209485–86, 1998–11 I.R.B. 21
REG–209682–94, 1998–17 I.R.B. 20
REG–209807–95, 1998–8 I.R.B. 40
REG–243025–96, 1998–18 I.R.B. 18
REG–251502–96, 1998–9 I.R.B. 14
Revenue Procedures:
98–1, 1998–1 I.R.B. 7
98–2, 1998–1 I.R.B. 74
98–3, 1998–1 I.R.B. 100
98–4, 1998–1 I.R.B. 113
98–5, 1998–1 I.R.B. 155
98–6, 1998–1 I.R.B. 183
98–7, 1998–1 I.R.B. 222
98–8, 1998–1 I.R.B. 225
98–9, 1998–3 I.R.B. 56
98–10, 1998–2 I.R.B. 35
98–11, 1998–4 I.R.B.9
98–12, 1998–4 I.R.B. 18
98–13, 1998–4 I.R.B. 21
98–14, 1998–4 I.R.B. 22
98–15, 1998–4 I.R.B. 25
98–16, 1998–5 I.R.B. 19
98–17, 1998–5 I.R.B. 21
98–18, 1998–6 I.R.B. 20
98–19, 1998–7 I.R.B. 30
98–20, 1998–7 I.R.B. 32
98–21, 1998–8 I.R.B. 27
98–22, 1998–12 I.R.B. 11
98–23, 1998–10 I.R.B. 30
98–24, 1998–10 I.R.B. 31
98–25, 1998–11 I.R.B. 7
98–26, 1998–13 I.R.B.26
98–27, 1998–15 I.R.B.15
98–28, 1998–15 I.R.B.14
98–29, 1998–15 I.R.B. 22
98–30, 1998–17 I.R.B. 6
98–32, 1998–17 I.R.B. 11
98–34, 1998–18 I.R.B. 15
Revenue Rulings:
98–1, 1998–2 I.R.B. 5
98–2, 1998–2 I.R.B. 15
98–3, 1998–2 I.R.B. 4
Revenue Rulings—Continued
98–4, 1998–2 I.R.B. 18
98–5, 1998–2 I.R.B. 20
98–6, 1998–4 I.R.B. 4
98–7, 1998–6 I.R.B.6
98–8, 1998–7 I.R.B. 24
98–9, 1998–6 I.R.B. 5
98–10, 1998–10 I.R.B. 11
98–11, 1998–10 I.R.B. 13
98–12, 1998–10 I.R.B. 5
98–13, 1998–11 I.R.B. 4
98–14, 1998–11 I.R.B. 4
98–15, 1998–12 I.R.B. 6
98–16, 1998–13 I.R.B. 18
98–17, 1998–13 I.R.B. 21
98–18, 1998–14 I.R.B. 22
98–19, 1998–15 I.R.B. 5
98–20, 1998–15 I.R.B. 8
98–21, 1998–18 I.R.B. 7
98–23, 1998–18 I.R.B. 5
Treasury Decisions:
8740, 1998–3 I.R.B. 4
8741, 1998–3 I.R.B. 6
8742, 1998–5 I.R.B.4
8743, 1998–7 I.R.B. 26
8744, 1998–7 I.R.B. 20
8745, 1998–7 I.R.B. 15
8746, 1998–7 I.R.B. 4
8747, 1998–7 I.R.B. 18
8748, 1998–8 I.R.B. 24
8749, 1998–7 I.R.B. 16
8750, 1998–8 I.R.B. 4
8751, 1998–10 I.R.B. 23
8752, 1998–9 I.R.B. 4
8753, 1998–9 I.R.B. 6
8754, 1998–10 I.R.B. 15
8755, 1998–10 I.R.B. 21
8756, 1998–12 I.R.B.4
8757, 1998–13 I.R.B.4
8758, 1998–13 I.R.B. 15
8759, 1998–13 I.R.B. 19
8760, 1998–14 I.R.B. 4
8761, 1998–14 I.R.B. 13
8762, 1998–14 I.R.B. 15
8763, 1998–15 I.R.B. 5
8764, 1998–15 I.R.B. 9
8765, 1998–16 I.R.B. 11
8766, 1998–16 I.R.B. 17
8767, 1998–16 I.R.B. 4

1998–19 I.R.B.29May 11, 1998
Finding List of Current Action on
Previously Published Items
1
Bulletins 1998–1 through 1998–18
Revenue Procedures:
91–59
Updated and superseded by
98–25, 1998–11 I.R.B. 7
94–16
Modified and superseded by
98–22, 1998–12 I.R.B. 11
93–62
Modified and superseded by
98–22, 1998–12 I.R.B. 11
95–35
95–35A
Superseded by
98–19, 1998–7 I.R.B. 30
96–29
Modified and superseded by
98–22, 1998–12 I.R.B. 11
97–1
Superseded by
98–1, 1998–1 I.R.B. 7
97–2
Superseded by
98–2, 1998–1 I.R.B. 74
97–3
Superseded by
98–3, 1998–1 I.R.B. 100
97–4
Superseded by
98–4, 1998–1 I.R.B. 113
97–5
Superseded by
98–5, 1998–1 I.R.B. 155
97–6
Superseded by
98–6, 1998–1 I.R.B. 183
97–7
Superseded by
98–7, 1998–1 I.R.B. 222
97–8
Superseded by
98–8, 1998–1 I.R.B. 225
97–21
Superseded by
98–2, 1998–1 I.R.B. 74
97–26
Obsoleted by
98–28, 1998–15 I.R.B. 14
97–53
Superseded by
98–3, 1998–1 I.R.B. 100
Revenue Rulings:
75–17
Supplemented and superseded by
98–5, 1998–2 I.R.B. 20
92–19
Supplemented in part by
98–2, 1998–2 I.R.B. 15
1
A cumulative finding list for previously published
items mentioned in Internal Revenue Bulletins
1997–27 through 1997–52 will be found in Internal
Revenue Bulletin 1998–1, dated January 5, 1998.

Notes
May 11, 1998301998–19 I.R.B.

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