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1997–30 I R B 85 July 28 1997

P a rt IV. Items of General Intere s t

longer need the information in this publication. The Simplified Method is explained in Publication 575.

You can get a copy of this publication by calling 1-800-TAX-FORM (1-800829-3676). You can also write to the IRS Forms Distribution Center nearest you. Check your income tax package for the address. The publication will also be available on the IRS Internet Web Site at www.irs.ustreas.gov.

New Revision of Publication 939, General Rule for Pensions and Annuities

Announcement 97–73

A new June 1997 revision of Publication 939 will soon be available from the Internal Revenue Service. It replaces the prior January 1990 revision (as reprinted in March 1997).

This publication is primarily for taxpayers who receive pension and annuity payments from nonqualified plans. It con

tains actuarial tables that taxpayers must use to apply the General Rule.

Previously, the information in this publication could be used by taxpayers with qualified plans who chose to use the General Rule to determine the tax treatment of pension and annuity income. New law now provides that, in general, taxpayers whose annuity starting date begins after November 18, 1996, may no longer use the General Rule. Instead, they must use the Simplified Method.

As a result, many taxpayers will no

1997–30 I R B 86 July 28 1997

Announcement of the Expedited Suspension of Attorneys, Certified Public Accountants, Enrolled Agents, and Enrolled Actuaries From Practice B e f o re the Internal Revenue Serv i c e

Under 31 Code of Federal Regulations, section 10.76, the Director of Practice is authorized to immediately suspend from practice before the Internal Revenue Service any practitioner who, within five years, from the date the expedited proceeding is instituted, (1) has had a license to practice as an attorney, certified public accountant, or actuary suspended or revoked for cause; or (2) has been convicted of any crime under title 26 of the United States Code or, of a felony under title 18 of the United States Code involving dishonesty or breach of trust.

Attorneys, certified public accountants, enrolled agents, and enrolled actuaries are

prohibited in any Internal Revenue Service matter from directly or indirectly employing, accepting assistance from, being employed by, or sharing fees with, any practitioner disbarred or suspended from practice before the Internal Revenue Service.

To enable attorneys, certified public accountants, enrolled agents, and enrolled actuaries to identify practitioners under expedited suspensions from practice before the Internal Revenue Service, the Director of Practice will announce in the Internal Revenue Bulletin the names and addresses of practitioners who have been suspended from such practice, their designation as att o r n e y, certified public accountant, en

rolled agent, or enrolled actuary, and date or period of suspension. This announcement will appear in the weekly Bulletin at the earliest practicable date after such action and will continue to appear in the weekly Bulletins for five successive weeks or for as many weeks as is practicable for each attorney, certified public accountant, enrolled agent, or enrolled actuary so suspended and will be consolidated and published in the Cumulative Bulletin.

The following individuals have been placed under suspension from practice before the Internal Revenue Service by virtue of the expedited proceeding provisions of the applicable regulations:

Name Address Designation Date of Suspension

Newman, Harry J. Covington, VA CPA Indefinite from May 16, 1997 Sehnert, Fred Dallas, TX CPA Indefinite from May 16, 1997 Gaskins, John D. Valdosta, GA CPA Indefinite from May 16, 1997 Turner, Charles L. Goshen, KY Attorney Indefinite from May 16, 1997 Thornton Jr., Kenneth W. Murrells Inlet, SC Attorney Indefinite from May 16, 1997 Kellogg, Richard White Hall, AR CPA Indefinite from May 16, 1997 Stec, Albert J. Schereville, IN CPA Indefinite from May 16, 1997 Huff Jr., James G. Raleigh, NC CPA Indefinite from May 16, 1997 Seall, William Dayton, OH Attorney Indefinite from May 16, 1997 Brunner, L. Keith Centerville, OH Attorney Indefinite from May 16, 1997 Bart, David R. Oakwood, OH Attorney Indefinite from May 16, 1997 Shafer, David A. Franklin, OH CPA Indefinite from May 16, 1997 Schouman, James Milford, MI Attorney Indefinite from May 16, 1997 Jones, Milo A. Greensboro, NC CPA Indefinite from May 16, 1997 Dolan, Gary L. Lincoln, NE Attorney Indefinite from May 16, 1997 Coorey, Edward T. Hampton, NH Enrolled Agent Indefinite from May 16, 1997 Sheehan, Thomas J. Maggie Valley, NC CPA Indefinite from May 16, 1997 Millonig, Arthur F. Dayton, OH Attorney Indefinite from May 16, 1997 McHaffie, Richard T. St. Paul, MN Attorney Indefinite from June 4, 1997 Rigler, Michael Gainesville, TX CPA Indefinite from June 4, 1997 Hopkins, Diane E. St. Paul, MN Attorney Indefinite from June 4, 1997 Adae, F. Brian Barrington, RI Attorney Indefinite from June 4, 1997

1997–30 I R B 87 July 28 1997

Announcement of the Consent Suspension of Attorneys, Certified Public Accountants, Enrolled Agents, and Enrolled Actuaries From Practice B e f o re the Internal Revenue Serv i c e

Under 31 Code of Federal Regulations, Part 10, an attorney, certified public accountant, enrolled agent or enrolled actua r y, in order to avoid the institution or conclusion of a proceeding for his disbarment or suspension from practice before the Internal Revenue Service, may off e r his consent to suspension from such practice. The Director of Practice, in his discretion, may suspend an attorney, certified public accountant, enrolled agent, or enrolled actuary in accordance with the consent off e r e d .

Attorneys, certified public accountants, enrolled agents, and enrolled actuaries are prohibited in any Internal Revenue Ser

vice matter from directly or indirectly employing, accepting assistance from, being employed by or sharing fees with, any practitioner disbarred or suspended from practice before the Internal Revenue Service.

To enable attorneys, certified public accountants, enrolled agents, and enrolled actuaries to identify practitioners under consent suspension from practice before the Internal Revenue Service, the Director of Practice will announce in the Internal Revenue Bulletin the names and addresses of practitioners who have been suspended from such practice, their designation as attorney, certified public ac

countant, enrolled agent, or enrolled actuary, and date or period of suspension. This announcement will appear in the weekly Bulletin at the earliest practicable date after such action and will continue to appear in the weekly Bulletins for five successive weeks or for as many weeks as is practicable for each attorney, certified public accountant, enrolled agent, or enrolled actuary so suspended and will be consolidated and published in the Cumulative Bulletin.

The following individuals have been placed under consent suspension from practice before the Internal Revenue Serv i c e :

Name Address Designation Date of Suspension

Padgett, John Orleans, MA Attorney May 22, 1997 to October 21, 1998 Crisp, Jerry W. Dallas, TX CPA June 1, 1997 to May 31, 2000 Kessel, Donald K. Export, PA CPA June 1, 1997 to November 30, 1998 Klimchak, Joseph Aliquippa, PA CPA June 1, 1997 to February 28, 1998 Steele, Lewis M. Pittsburgh, PA CPA June 1, 1997 to May 31, 1998 Castleberry, Gene A. Oklahoma City, OK Attorney June 4, 1997 to August 3, 1997 O’Connor, Paul J. Hanover, MA CPA June 6, 1997 to June 5, 2000 Olshan, Robert M. Washington, DC CPA June 10, 1997 to December 9, 1998 Johnson, Kirk L. Ann Arbor, MI CPA July 1, 1997 to June 30, 1999 Mattutat, Stephen Elicott City, MD CPA July 1, 1997 to March 31, 1998 Trenary, Lloyd R. Oklahoma City, OK CPA August 1, 1997 to March 31, 1998 Ritchey Jr., Ferris Birmingham, AL Attorney August 1, 1997 to July 31, 2000 Gold, Howard G. Hamden, CT CPA August 1, 1997 to July 31, 1999 Womack, Kathleen Hammond, LA CPA August 1, 1997 to July 31, 1999

1997–30 I R B 88 July 28 1997

Definition of Terms

Revenue rulings and revenue pro c e d u re s ( h e reinafter re f e rred to as “rulings”) that have an effect on previous rulings use the following defined terms to describe the e f f e c t :

Amplified describes a situation where no change is being made in a prior published position, but the prior position is being extended to apply to a variation of the fact situation set forth therein. T h u s, 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 m o d i f i e d, 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 confusion. It is not used where a position in a prior ruling is being changed.

D i s t i n g u i s h e d describes a situation where a ruling mentions a previously published ruling and points out an essential 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

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.

plies to both A and B, the prior ruling is modified because it corrects a published position. (Compare with amplified a n d c l a r i f i e d, above).

Obsoleted describes a previously published ruling that is not considered determinative with respect to future transactions. 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 r u l i n g may also be obsoleted because the substance has been included in regulations subsequently adopted.

Revoked describes situations where the position in the previously published ruling 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 period of time in separate rulings. If the

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.

new ruling does more than restate the substance of a prior ruling, a combination of terms is used. For example, m o d i f i e d and superseded describes a situation where the substance of a previously published 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 supers e d e d .

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 published 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.

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.

1997–30 I R B 89 July 28 1997

Numerical Finding List

1

Bulletins 1997–27 through 1997–29

Announcements:

97–61, 1997–29 I.R.B. 13 97–67, 1997–27 I.R.B. 37 97–68, 1997–28 I.R.B. 13 97–69, 1997–28 I.R.B. 13 97–70, 1997–29 I.R.B. 14 97–71, 1997–29 I.R.B. 15 97–72, 1997–29 I.R.B. 15

Delegation Orders:

172 (Rev. 5), 1997–28 I.R.B. 6

Notices:

97–37, 1997–27 I.R.B. 4 97–38, 1997–27 I.R.B. 8 97–39, 1997–27 I.R.B. 8 97–40, 1997–28 I.R.B. 6 97–41, 1997–28 I.R.B. 6 97–42, 1997–29 I.R.B. 12

Railroad Retirement Quarterly Rate:

1997–28 I.R.B. 5

Proposed Regulations:

REG–104893–97, 1997–29 I.R.B. 13

Revenue Procedures:

97–27, 1997–27 I.R.B. 9

Revenue Rulings:

97–27, 1997–27 I.R.B. 4 97–28, 1997–28 I.R.B. 4 97–29, 1997–28 I.R.B. 4

Treasury Decisions:

8722, 1997–29 I.R.B. 4

1 A cumulative list of all revenue rulings, revenue procedures, Treasury decisions, etc., published in Internal Revenue Bulletins 1997–1 through 1997–26 will be found in Internal Revenue Bulletin 1997–27, dated July 7, 1997.

1997–30 I R B 90 July 28 1997

Finding List of Current Action on Previously Published Items1

Bulletins 1997–27 through 1997–29

*Denotes entry since last publication

Revenue Procedures:

96–42 Superseded by 97–27, 1997–27 I.R.B. 9

1 A cumulative finding list for previously published items mentioned in Internal Revenue Bulletins 1997–1 through 1997–26 will be found in Internal Revenue Bulletin 1997–27, dated July 7, 1997.

1997–30 I R B 91 July 28 1997

Notes

1997–30 I R B 92 July 28 1997

Notes

1997–30 I R B 93 July 28 1997

Notes

1997–30 I R B 94 July 28 1997

1997–30 I.R.B 95 .July 28, 1997

INTERNAL REVENUE BULLETIN

The Introduction on page 3 describes the purpose and content of this publication. The weekly Internal Revenue Bulletin is sold on a yearly subscription basis by the Superintendent of Documents. Current subscribers are notified by the Superintendent of Documents when their subscriptions must be renewed.

CUMULATIVE BULLETINS

The contents of this weekly Bulletin are consolidated semiannually into a permanent, indexed, Cumulative Bulletin. These are sold on a single copy basis and are not included as part of the subscription to the Internal Revenue Bulletin. Subscribers to the weekly Bulletin are notified when copies of the Cumulative Bulletin are available. Certain issues of Cumulative Bulletins are out of print and are not available. Persons desiring available Cumulative Bulletins, which are listed on the reverse, may purchase them from the Superintendent of Documents.

HOW TO ORDER

Check the publications and/or subscription(s) desired on the reverse, complete the order blank, enclose the proper remittance, detach entire page, and mail to the Superintendent of Documents, U.S. Government Printing Office, Washington, DC 20402. Please allow two to six weeks, plus mailing time, for delivery.

WE WELCOME COMMENTS ABOUT THE

INTERNAL REVENUE BULLETIN

If you have comments concerning the format or production of the Internal Revenue Bulletin or suggestions for improving it, we would be pleased to hear from you. You can e-mail us your suggestions or comments through the IRS Internet Home Page (www.irs.ustreas.gov) or write to the IRS Bulletin Unit, T:FP:F:CD, Room 5560, 1111 Constitution Avenue NW, Washington, DC 20224. You can also leave a recorded message 24 hours a day, 7 days a week at 1–800–829–9043.

Internal Revenue Service Washington, DC 20224

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INTERNAL REVENUE BULLETIN

The Introduction on page 3 describes the purpose and content of this publication. The weekly Internal Revenue Bulletin is sold on a yearly subscription basis by the Superintendent of Documents. Current subscribers are notified by the Superintendent of Documents when their subscriptions must be renewed.

CUMULATIVE BULLETINS

The contents of this weekly Bulletin are consolidated semiannually into a permanent, indexed, Cumulative Bulletin. These are sold on a single copy basis and are not included as part of the subscription to the Internal Revenue Bulletin. Subscribers to the weekly Bulletin are notified when copies of the Cumulative Bulletin are available. Certain issues of Cumulative Bulletins are out of print and are not available. Persons desiring available Cumulative Bulletins, which are listed on the reverse, may purchase them from the Superintendent of Documents.

HOW TO ORDER

Check the publications and/or subscription(s) desired on the reverse, complete the order blank, enclose the proper remittance, detach entire page, and mail to the Superintendent of Documents, U.S. Government Printing Office, Washington, DC 20402. Please allow two to six weeks, plus mailing time, for delivery.

WE WELCOME COMMENTS ABOUT THE

INTERNAL REVENUE BULLETIN

If you have comments concerning the format or production of the Internal Revenue Bulletin or suggestions for improving it, we would be pleased to hear from you. You can e-mail us your suggestions or comments through the IRS Internet Home Page (www.irs.ustreas.gov) or write to the IRS Bulletin Unit, T:FP:F:CD, Room 5560, 1111 Constitution Avenue NW, Washington, DC 20224. You can also leave a recorded message 24 hours a day, 7 days a week at 1–800–829–9043.

Superintendent of Documents U.S. Government Printing Office Washington, DC 20402

Official Business Penalty for Private Use, $300

First Class Mail Postage and Fees Paid GPO Permit No. G–26