HIGHLIGHTS OF THIS ISSUE—Continued

EMPLOYMENT TAX—Continued

Rev. Proc. 96–60, page 24. Modification of Rev. Proc. 84–77. This procedure explains the standards and alternate procedures to be used in preparing employment tax forms when a predecessor-successor employer relationship exists. Rev. Proc. 84–77 modified and superseded.

Announcement 96–134, page 60. Three codes have been added to identify new amounts required to be reported in box 13 of the 1997 Form W–2.

EXCISE TAX

Announcement 96–135, page 60. A petition has been filed to add diglycidyl ether of bisphenol-A to the list of taxable substances in section 4672(a)(3) of the Code.

ADMINISTRATIVE

Rev. Proc. 96–38, page 13. This procedure provides guidance to taxpayers who wish to submit offers in compromise on photocopies or computer-generated copies that are verbatim duplicates of the official Form 656, Offer in Compromise, published by the Service.

Rev. Proc. 96–57, page 14. Automatic extensions for Forms W–2. Automatic extensions of time to file Forms W–2 with the Social Security Administration and to furnish Forms W–2 to employees will be granted to ‘‘Qualified Employers.’’

Rev. Proc. 96–58, page 16. Penalties; substantial understatement. Guidance is provided concerning when information shown on a return in accordance with the applicable forms and instructions will be adequate disclosure for purposes of reducing an understatement of income tax under section 6662(d) of the Code.

Rev. Proc. 96–59, page 17. 1997 cost-of-living adjustments. The Service provides 1997 cost-of-living adjustment factors and their applications to the tax rate tables for individuals and for estates and trusts, the standard deduction amounts, the personal exemption, and several other items that use the adjustment method provided for the tax rate tables.

Rev. Proc. 96–61, page 27. 1997 Electronic filing program; Form 1040. Participants in the 1997 Electronic Filing Program for the Form 1040 series are informed of their obligations to the Service, taxpayers, and other participants.

Rev. Proc. 96–62, page 38. 1997 On-line filing program; Form 1040. Participants in the 1997 On-Line Filing Program for the Form 1040 series are informed of their obligations to the Service, taxpayers, and other participants.

Rev. Proc. 96–63, page 46. 1997 Optional standard mileage rates. This procedure announces 31.5 cents as the optional rate for deducting or accounting for expenses for business use of an automobile, and 10 cents as the optional rate for deducting or accounting for use of an automobile as a medical or moving expense for 1997. It provides rules for substantiating the deductible expenses of using an automobile for business, moving, medical, or charitable purposes. Rev. Proc. 95–54 superseded.

Rev. Proc. 96–64, page 52. Per diem allowances. This procedure provides optional rules for deeming substantiated the amount for certain reimbursed traveling expenses of an employee as well as for determining the amount of deductible meals while traveling away from home. Rev. Proc. 96–28 superseded.

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