SECTION 1. PURPOSE

SECTION 2. HANGES MADE FROM PRECEDING YEAR SECTION 3. 1997 ADJUSTED ITEMS

Code Section .01 Tax Rate Tables 1(a)–(e) .02 Unearned Income of Minor Children Taxed as if Parent’s Income (‘‘Kiddie Tax’’) 1(g) .03 Earned Income Tax Credit 32 .04 Alternative Minimum Tax Exemption for ‘‘Kiddie Tax’’ Reported on Parent’s Return 59(j) .05 Standard Deduction 63 .06 Overall Limitation on Itemized Deductions 68 .07 Qualified Transportation Fringe 132(f) .08 Income from United States Savings Bonds for Taxpayers Who Pay Qualified Higher Education 135 Expenses

135

.09 Personal Exemption 151 .10 Treatment of Dues Paid to Agricultural or Horticultural Organizations. 512(d) .11 Insubstantial Benefit Limitations for Contributions Associated with Charitable Fund-Raising 513(h) Campaigns

513(h)

.12 Expatriation to Avoid Tax 877 .13 Luxury Automobile Excise Tax 4001 & 4003 .14 Reporting Exception for Certain Exempt Organizations with Nondeductible Lobbying 6033(e)(3) Expenditures

6033(e)(3)

17

Code Section .15 Notice of Large Gifts Received from Foreign Persons 6039F .16 Attorney Fee Awards 7430 SECTION 4. COMPUTATION OF INFLATION ADJUSTMENTS SECTION 5. 1997 INFLATION ADJUSTMENT FACTORS SECTION 6. EFFECT ON OTHER DOCUMENTS SECTION 7. EFFECTIVE DATE SECTION 8. DRAFTING INFORMATION

United States person under § 6039F, is adjusted for inflation for tax years beginning in 1997. See section 3.15 of this revenue procedure.

.07 The hourly limit on attorney fees that may be awarded under § 7430, in a judgment or settlement of an administrative or judicial proceeding concerning the determination, collection, or refund of tax, interest, or penalty under the Code, is adjusted for inflation for tax years beginning in 1997. See section 3.16 of this revenue procedure.

SECTION 3. 1997 ADJUSTED ITEMS

.01 Tax Rate Tables. The following adjusted tax rate tables are prescribed in lieu of the tables in subsections (a), (b), (c), (d), and (e) of § 1 of the Code with respect to tax years beginning in 1997.