SEC. 7. PAPERWORK REDUCTION

ACT

The collections of information contained in this revenue procedure have been reviewed and approved by the Office of Management and Budget in accordance with the Paperwork Reduction Act (44 U.S.C. 3507) under control number 1545–1558. An agency may not conduct or sponsor, and a person is not required to respond to, a collection of information unless the collection of information displays a valid control number.

The collections of information in this revenue procedure are in sections 2.02, 2.03, 2.04, and 4.07(2). This information is required by the Service in order to facilitate monitoring taxpayers changing ac

ments required by section 4.07 to that return if the taxpayer instead attaches these documents to the first federal income tax return or amended return filed by the taxpayer after October 31, 1997, that is for a taxable year subject to the election.

.05 The taxpayer must file a copy of the documents required by section 4.07 of this revenue procedure with the Commissioner of Internal Revenue, Attention: CC:DOM:IT&A, P.O. Box 7604, Benjamin Franklin Station, Washington, DC 20044 (or, in the case of a designated private delivery service: Commissioner of Internal Revenue, Attention: CC:DOM:IT&A, 1111 Constitution Avenue, NW, Washington, DC 20224). This filing must occur on or before the later of October 31, 1997, and the time the taxpayer files the return described in section 4.01, 4.02, or 4.03. The documents must contain the name and telephone number of the examining agent, appeals office, or counsel of record for the government, if any, described in section 4.06. .06 If a taxpayer files an amended return on which the taxpayer elects not to be governed by the customer paper exemption or the negligible sales exemption and, at the time of filing, the taxable year to which the amended return applies or any subsequent taxable year is before the Service or before a federal court, then the taxpayer must provide a copy of the documents required by section 4.07 of this revenue procedure to the persons provided below.

(1) If a taxable year in question is before the Service, a copy of the documents required by section 4.07 of this revenue procedure must be provided to the taxpayer’s examining agent or, instead, if the taxable year has been assigned to an appeals office, to such appeals office. The taxpayer must provide the copy by the later of October 31, 1997, and the day that is 30 days after the date the taxable year in question first came before the Service. For purposes of this section, a taxable year shall be considered before the Service from the time the taxpayer (or any member of a consolidated group of which taxpayer was a member during the taxable year) has been contacted in any manner by a representative of the Service for the purpose of scheduling any type of examination of its federal income tax return for that year until the receipt of a no-change letter for that year, the execution of a

waiver of restrictions on assessment and collection of deficiency in tax and acceptance of overassessment, the expiration of the period for filing a petition with the Tax Court for that year, or the filing of a petition with the Tax Court.

(2) If a taxable year in question is before a federal court, a copy of the documents required by section 4.07 of this revenue procedure must be provided to counsel of record for the government. The taxpayer must provide the copy by the later of October 31, 1997, and the day which is 30 days after the date the taxable year in question first came before a federal court. For purposes of this section, a taxable year will be considered before a federal court if the treatment of any item (whether or not involving a method of accounting) for such taxable year would be considered before a federal court for the purpose of Rev. Proc. 97–27, 1997–21 I.R.B. 10, section 3.08(3).

.07 The taxpayer must properly complete and execute a Form 3115. A legend must be typed on the top of the first page of the Form 3115 that identifies the applicable parts of section 4 of this revenue procedure (other than section 4.04 and section 4.07). The legend should read substantially as follows: “Filed under section[s] 4.** [and 4.**] of Rev. Proc. 97–43.” (1) Form 3115 requires an explanation of the legal basis of the proposed change in method of accounting. That explanation must state specifically which election(s) the taxpayer made under § 1.475(c)–1. See also Rev. Rul. 97–39, Holding 17 (discussing the need for multiple elections).

(2) The taxpayer must attach to the Form 3115 a statement describing all identifications, if any, that are or were effective for the purposes of § 475(b)(2) of securities acquired prior to the date of executing the Form 3115 (or the date of filing if filed more than 30 days after executing). For identifications that are not subject to Holding 15 of Rev. Rul. 97–39, the statement must describe the procedures or systems used to make each identification, the date on which the identifications were made, and the content and location of the identifications in the taxpayer’s books and records. See Rev. Rul. 97–39, Holding 14 (discussing when an identification under § 475(b)(2) is timely made). If the tax

1997–39 I.R.B. 13 September 29, 1997

counting methods resulting from making the elections provided by § 1.475(c)– 1(a)(3)(iii), –1(b)(4), or –1(c)(1)(ii). The information collected will be used if a taxpayer making the change is audited. The collection of information is required to obtain a benefit. The likely respondents are business or other for-profit institutions.

The collection of information contained in sections 2.02, 2.03, and 2.04 were reviewed and approved by the Office of Management and Budget in accordance with the Paperwork Reduction Act (44 U.S.C. 3507) under control number 1545–1496.

The estimated total annual reporting

burden described in section 4.07(2) is 100,000 hours. The estimated annual burden per respondent varies from .25 hours to 50 hours, depending on individual circumstances, with an estimated average of 5 hours. The estimated number of respondents is 20,000.

The estimated annual frequency of responses is once in the existence of each respondent.

Books or records relating to a collection of information must be retained as long as their contents may become material in the administration of any internal

revenue law. Generally, tax returns and tax return information are confidential, as required by 26 U.S.C. 6103.

DRAFTING INFORMATION

The principal author of this revenue procedure is Kenneth P. Christman of the Office of Assistant Chief Counsel (Financial Institutions and Products). For further information regarding this revenue procedure, contact Mr. Christman at 202622-3950 (not a toll-free call).

September 29, 1997 14 1997–39 I.R.B.

Revenue rulings and revenue procedures (hereinafter referred to as “rulings”) that have an effect on previous rulings use the following defined terms to describe the effect:

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. Thus, 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 modified, 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.

Distinguished 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

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 and clarified, 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 ruling 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, modified 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 superseded.

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.

1997–39 I.R.B. 17 September 29, 1997

Numerical Finding List1

Bulletins 1997–27 through 1997–38

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 97–73, 1997–30 I.R.B. 86 97–74, 1997–31 I.R.B. 16 97–75, 1997–32 I.R.B. 28 97–76, 1997–32 I.R.B. 28 97–77, 1997–33 I.R.B. 58 97–78, 1997–34 I.R.B. 11 97–79, 1997–35 I.R.B. 8 97–80, 1997–34 I.R.B. 12 97–81, 1997–34 I.R.B. 12 97–82, 1997–34 I.R.B. 12 97–83, 1997–34 I.R.B. 13 97–84, 1997–34 I.R.B. 13 97–85, 1997–35 I.R.B. 8 97–86, 1997–35 I.R.B. 9 97–87, 1997–35 I.R.B. 9 97–88, 1997–35 I.R.B. 9 97–89, 1997–36 I.R.B. 10 97–90, 1997–36 I.R.B. 10 97–91, 1997–37 I.R.B. 25 97–92, 1997–37 I.R.B. 26 97–93, 1997–36 I.R.B. 11 97–94, 1997–36 I.R.B. 12 97–95, 1997–36 I.R.B. 12 97–97, 1997–38 I.R.B. 22

Court Decisions:

2061, 1997–31 I.R.B. 5 2062, 1997–32 I.R.B. 8

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 97–43, 1997–30 I.R.B. 9 97–44, 1997–31 I.R.B. 15 97–45, 1997–33 I.R.B. 7 97–46, 1997–34 I.R.B. 10 97–47, 1997–35 I.R.B. 5 97–48, 1997–35 I.R.B. 5 97–49, 1997–36 I.R.B. 8 97–50, 1997–37 I.R.B. 21 97–51, 1997–38 I.R.B. 20 97–52, 1997–38 I.R.B. 20

Railroad Retirement Quarterly Rate:

1997–28 I.R.B. 5

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.

Proposed Regulations:

REG–104893–97, 1997–29 I.R.B. 13 REG–105160–97, 1997–37 I.R.B. 22 REG–106043–97, 1997–37 I.R.B. 24 REG–107644–97, 1997–32 I.R.B. 24 REG–208151–91, 1997–38 I.R.B. 21

Revenue Procedures:

97–32, 1997–27 I.R.B. 9 97–32A, 1997–34 I.R.B. 10 97–33, 1997–30 I.R.B. 10 97–34, 1997–30 I.R.B. 14 97–35, 1997–33 I.R.B. 11 97–36, 1997–33 I.R.B. 14 97–37, 1997–33 I.R.B. 18 97–38, 1997–33 I.R.B. 43 97–39, 1997–33 I.R.B. 48 97–40, 1997–33 I.R.B. 50 97–41, 1997–33 I.R.B. 5 97–42, 1997–33 I.R.B. 57

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 97–30, 1997–31 I.R.B. 12 97–31, 1997–32 I.R.B. 4 97–32, 1997–33 I.R.B. 4 97–33, 1997–34 I.R.B. 4 97–34, 1997–34 I.R.B. 14 97–35, 1997–35 I.R.B. 4 97–36, 1997–36 I.R.B. 5 97–37, 1997–37 I.R.B. 15 97–38, 1997–38 I.R.B. 14

Treasury Decisions:

8722, 1997–29 I.R.B. 4 8723, 1997–30 I.R.B. 4 8724, 1997–36 I.R.B. 4 8725, 1997–37 I.R.B. 16 8726, 1997–34 I.R.B. 7 8727, 1997–34 I.R.B. 5 8728, 1997–37 I.R.B. 4 8729, 1997–38 I.R.B. 4 8730, 1997–38 I.R.B. 16

September 29, 1997 18 1997–39 I.R.B.

Finding List of Current Action on Previously Published Items1

Bulletins 1997–27 through 1997–38

*Denotes entry since last publication

Revenue Procedures:

96–36 Superseded by 97–34, 1997–30 I.R.B. 14

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

97–32 Modified and amplified by 97–32A, 1997–34 I.R.B. 10

Revenue Rulings:

89–42 Supplemented by 97–31, 1997–32 I.R.B. 4

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.

1997–39 I.R.B. 19 September 29, 1997

September 29, 1997 20 1997–39 I.R.B.

1997–39 I.R.B. 21 September 29, 1997

September 29, 1997 22 1997–39 I.R.B.

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