SECTION 3. PROCEDURE

1. Rev. Proc. 95–21 is modified to take into account newly enacted section 512(d). Thus, Rev. Proc. 95–21 will not apply to agricultural and horticultural organizations described in section 501(c)(5) if annual dues payments from members do not exceed $100 for taxable years beginning after December 31,

2. The $100 dues amount is indexed according to a cost-of-living adjustment for taxable years beginning in a calendar year after 1995.

3. Rev. Proc. 95–21 will continue to apply to agricultural and horticultural organizations described in section 501(c)(5) for purposes of determining whether member dues payments will be treated as gross income from an unrelated trade or business under section 512 where required annual dues amounts paid by members exceed $100. If required annual dues exceed $100 per member, the entire dues payment will be subject to the principles of Rev. Proc. 95–21.

4. Rev. Proc. 95–21 will also continue to apply to labor organizations described in section 501(c)(5) for purposes of determining whether associate member dues payments will be treated as gross income from an unrelated trade or business under section 512.

5. Rev. Proc. 95–21 is amplified to the extent that the principles contained therein are also applicable to organizations described in section 501(c)(6). Thus, Rev. Proc. 95–21 will also be applied to section 501(c)(6) organizations for purposes of determining whether associate member dues payments will be treated as gross income from an unrelated trade or business under section 512.

ing this revenue procedure contact Mr. Barrett at (202) 622–8152 (not a tollfree number).