SECTION 1. PURPOSE

.01 This revenue procedure modifies and supersedes Rev. Proc. 84–77, 1984–2 C.B. 753. This revenue procedure explains both the standard procedure and an alternate procedure for preparing and filing Form W–2, Wage and Tax Statement; Form W–3, Transmittal of Income and Tax Statements; Form 941, Employer’s Quarterly Federal Tax Return; Form W–4, Employee’s Withholding Allowance Certificate; and Form W–5, Earned Income Credit Advance Payment Certificate in certain acquisitions. This revenue procedure applies when an employer (successor) acquires substantially all the property (1) used in a trade or business of another employer (predecessor), or (2) used in a separate unit of a trade or business of a predecessor, and in connection with, or immediately after the acquisition (but during the same calendar year) the successor employs individuals who immediately prior to the acquisition were employed in the trade or business of the predecessor. (The term ‘‘trade or business,’’ for purposes of this revenue procedure, may include the activity of a nonprofit organization or of a federal or state agency.)

.02 This revenue procedure does not apply to the situation described in Rev. Rul. 62–60, 1962–1 C.B. 186, which relates to the absorption of one corpora

Completed

Amount

Filing Status

Threshold

Phaseout

Amount

Phaseout

Code § 1(a) $74,200 $104,200 Others $49,450 $ 64,450

(4) Treatment of Dues Paid to Ag- ricultural or Horticultural Organiza- tions. For tax years beginning in 1996, no portion of annual dues required by

Code § 1(a) $68,250 $98,250 Others $45,500 $60,500