PART III. PROCESSING

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Superseded describes a situation where the new ruling does nothing more than restate the substance and situation of a previously published ruling (or rulings).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. Proc.. —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.

January 5, 1998 238 1998–1 I.R.B.

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 97–43, 1997–39 I.R.B. 12 97–44, 1997–41 I.R.B. 8 97–45, 1997–41 I.R.B. 10 97–46, 1997–42 I.R.B. 10 97–47, 1997–42 I.R.B. 19 97–48, 1997–43 I.R.B. 19 97–49, 1997–43 I.R.B. 22 97–50, 1997–45 I.R.B. 8 97–51, 1997–45 I.R.B. 9 97–52, 1997–46 I.R.B. 17 97–53, 1997–47 I.R.B. 10 97–54, 1997–50 I.R.B. 8 97–55, 1997–51 I.R.B. 23 97–56, 1997–52 I.R.B. 18 97–57, 1997–52 I.R.B. 20 97–58, 1997–52 I.R.B. 24 97–59, 1997–52 I.R.B. 31 97–60, 1997–52 I.R.B. 39 97–61, 1997–52 I.R.B. 51

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 97–39, 1997–39 I.R.B. 4 97–40, 1997–39 I.R.B. 8 97–41, 1997–40 I.R.B. 4 97–42, 1997–41 I.R.B. 4 97–43, 1997–42 I.R.B. 8 97–44, 1997–45 I.R.B. 5 97–45, 1997–46 I.R.B. 4 97–46, 1997–46 I.R.B. 7 97–47, 1997–47 I.R.B. 4 97–48, 1997–49 I.R.B. 5 97–49, 1997–48 I.R.B. 4 97–50, 1997–49 I.R.B. 5 97–51, 1997–49 I.R.B. 4 97–52, 1997–50 I.R.B. 4 97–53, 1997–52 I.R.B. 13 97–54, 1997–52 I.R.B. 9 97–55, 1997–52 I.R.B. 7 97–56, 1997–52 I.R.B. 11 97–57, 1997–52 I.R.B. 16

Social Security Domestic Coverage Threshold:

1997–52 I.R.B. 59

Numerical Finding List ¹

Bulletins 1997–27 through 1997–52

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 97–96, 1997–39 I.R.B. 15 97–97, 1997–38 I.R.B. 22 97–98, 1997–39 I.R.B. 15 97–99, 1997–40 I.R.B. 7 97–100, 1997–40 I.R.B. 8 97–101, 1997–41 I.R.B. 13 97–102, 1997–41 I.R.B. 15 97–103, 1997–41 I.R.B. 16 97–104, 1997–42 I.R.B. 39 97–105, 1997–42 I.R.B. 40 97–106, 1997–45 I.R.B. 11 97–107, 1997–43 I.R.B. 25 97–108, 1997–43 I.R.B. 25 97–109, 1997–45 I.R.B. 12 97–110, 1997–45 I.R.B. 14 97–111, 1997–47 I.R.B. 15 97–112, 1997–46 I.R.B. 20 97–113, 1997–46 I.R.B. 21 97–114, 1997–46 I.R.B. 21 97–115, 1997–47 I.R.B. 17 97–116, 1997–48 I.R.B. 25 97–117, 1997–49 I.R.B. 12 97–118, 1997–49 I.R.B. 13 97–119, 1997–50 I.R.B. 61 97–120, 1997–50 I.R.B. 61 97–121, 1997–50 I.R.B. 62 97–122, 1997–50 I.R.B. 63 97–123, 1997–51 I.R.B. 28 97–124, 1997–52 I.R.B. 61 97–125, 1997–52 I.R.B. 61 97–126, 1997–52 I.R.B. 62

Court Decisions:

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

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.

Delegation Orders

97 (Rev. 34), 1997–41 I.R.B. 14 172 (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 97–53, 1997–40 I.R.B. 6 97–54, 1997–41 I.R.B. 7 97–55, 1997–40 I.R.B. 6 97–56, 1997–43 I.R.B. 19 97–57, 1997–43 I.R.B. 19 97–58, 1997–45 I.R.B. 7 97–59, 1997–45 I.R.B. 7 97–60, 1997–46 I.R.B. 8 97–61, 1997–48 I.R.B. 8 97–62, 1997–49 I.R.B. 8 97–63, 1997–47 I.R.B. 6 97–64, 1997–47 I.R.B. 7 97–65, 1997–51 I.R.B. 14 97–66, 1997–48 I.R.B. 8 97–67, 1997–48 I.R.B. 10 97–68, 1997–48 I.R.B. 11 97–69, 1997–48 I.R.B. 12 97–70, 1997–49 I.R.B. 9 97–71, 1997–49 I.R.B. 9 97–72, 1997–50 I.R.B. 7 97–73, 1997–51 I.R.B. 16 97–74, 1997–51 I.R.B. 18 97–75, 1997–51 I.R.B. 18 97–76, void 97–77, 1997–52 I.R.B. 18

Railroad Retirement Quarterly Rate:

1997–28 I.R.B. 5 1997–52 I.R.B. 12

Public Laws

105–35, 1997–43 I.R.B. 13

Proposed Regulations:

REG–103330–97, 1997–51 I.R.B. 24 REG–104893–97, 1997–29 I.R.B. 13 REG–105160–97, 1997–37 I.R.B. 22 REG–105162–97, 1997–48 I.R.B. 13 REG–106043–97, 1997–37 I.R.B. 24 REG–107644–97, 1997–32 I.R.B. 24 REG–107872–97, 1997–47 I.R.B. 11 REG–114000–97, 1997–47 I.R.B. 13 REG–208151–91, 1997–38 I.R.B. 21 REG–243025–96, 1997–51 I.R.B. 25 REG–246250–96, 1997–42 I.R.B. 30 REG–251985–96, 1997–48 I.R.B. 18 REG–252936–96, 1997–51 I.R.B. 27

1998–1 I.R.B. 239 January 5, 1998

Numerical Finding List ^— Continued

Bulletins 1997–27 through 1997–52

Announcements:

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 8731, 1997–42 I.R.B. 6 8732, 1997–42 I.R.B. 4 8733, 1997–43 I.R.B. 8 8734, 1997–44 I.R.B. 5 8735, 1997–43 I.R.B. 4 8736, 1997–50 I.R.B. 5 8737, 1997–51 I.R.B. 11 8738, 1997–51 I.R.B. 4 8739, 1997–51 I.R.B. 8

January 5, 1998 240 1998–1 I.R.B.

Finding List of Current Action on Previously Published Items ¹

Bulletins 1997–27 through 1997–52

*Denotes entry since last publication

Notices:

97–9 Modified by 97–70, 1997–49 I.R.B. 9

Revenue Procedures:

82–36 Modified and superseded by 97–49, 1997–43 I.R.B. 22

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

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

96–48 Superseded by 97–54, 1997–50 I.R.B.8

96–63 Superseded by 97–58, 1997–52 I.R.B. 24

96–64 Superseded by 97–59, 1997–52 I.R.B. 31

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

Revenue Rulings:

73–67 Revoked by 97–46, 1997–46 I.R.B. 7

75–7 Revoked by 97–48, 1997–49 I.R.B. 5

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

93–76 Clarified, modified, partially obsoleted, and superceded by 97–39, 1997–39 I.R.B 4

94–7 Clarified, modified, partially obsoleted, and superceded by 97–39, 1997–39 I.R.B 4

96–63 Suppplemented and superseded by 97–56, 1997–52 I.R.B. 11

96–64 Supplemented and superseded by 97–57, 1997–52 I.R.B. 16

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.

1998–1 I.R.B. 241 January 5, 1998

Internal Revenue Bulletins 1997–27 Through 1997–52

For the index of items published during the first six months of 1997, see I.R.B. 1997–27, dated July 7, 1997.

The abbreviation and number in parenthesis following the index entry refer to the specific item; numbers in roman and italic type following the parenthesis refer to the Internal Revenue Bulletin in which the item may be found and the page number on which it appears.

Key to Abbreviations: RR Revenue Ruling RP Revenue Procedure TD Treasury Decision CD Court Decision PL Public Law EO Executive Order DO Delegation Order TDO Treasury Department Order TC Tax Convention SPR Statement of Procedural

Rules PTE Prohibited Transaction

Exemption

301.6651–1, 1.6013–2(b)(1), amended; 301.6656–3, added; 301.7122–1(e), revised; 301.7430–0, –1, –2, –4, –5, amended; 301.7420–6, revised; miscellaneous sections affected by TBOR 2 and PRWORA1996 (TD 8725) 37, 16

Accounting method requests for grace pe riod interest (Notice 67) 48, 10 Accuracy-related penalty, TD 8656 cor rection (Notice 55) 40, 6 Adoption assistance (Notice 70) 49, 9 Advance rulings on production payments

(RP 55) 51, 22 Allocation of interest expense among tax payer’s expenditures (Notice 46) 34, 10 Automatic relief for S elections (RP 48)

43, 19 Base period T-bill rate, 1997 (RR 49) 48, 4 Calculation of partner’s limited deficit

restoration obligation (RR 38) 38, 14 Capital gain dividends by RICs or REITs;

designation of classes (Notice 64) 47, 7 Capital gains and losses; rates (Notice 59)

45, 7 Changes to RP 96–11 (Notice 48) 37, 5 Charitable contributions; business ex penses (RP 52) 46, 17 Charitable remainder trusts payments

(Notice 68) 48, 11 Community development corporation;

general business credit (RR 51) 49, 4 Consent to change accounting method to

comply with section 475 mark-to-market rules (RP 43) 39, 12 Cost-of-living adjustments for 1998 (RP

57. 52, 20 Cost-sharing payments (RR 55) 52, 5 CPI adjustment for below-market loans,

Quarterly Federal Tax Return (RP 47)

Penalty:

Guidance regarding waiver of failure to

deposit penalty for certain taxpayers required to begin using electronic funds transfer on or after July 1, 1997 (Notice 43) 30, 86

Railroad retirement:

Rate determination; quarterly (July 1,

1997. 28, 5 Social security contribution and benefit

base, 52, 59

Regulations:

26 CFR 31.0–1(a), 31.0–3(f), amended; 31.6302–1(h), added; 31.6302–1(i), redesignated; 31.6302–1T, removed; 31.6302(c)–3, amended; 31.6302–3T, removed; federal tax deposits by electronic funds transfer (TD 8723) 30, 4 26 CFR 31.3401(a)(6)–1, 31.3406–0, 31.3406(d)–3, 31.3406(h)–2, 31.6413(a)–3, amended; 31.3406(g)–1(e), added; 31.9999–0, added effective 10/14/97; 31.9999–0, removed effective 1/1/99; 35a.9999–0T, removed effective 10/14/97; 35a.9999–0,

added effective 10/14/97; 35a.9999–0, –1, –2, –3, –3A, –4T, –5, removed effective 1/1/99; withholding of tax on certain U.S. source income paid to foreign persons (TD 8734) 44, 5 26 CFR 301.6634–1, 301.6601–1, 301.6651–1, 1.6013–2(b)(1), amended; 301.6656–3, added; 301.7122–1(e), revised; 301.7430–0, –1, –2, –4, –5, amended; 301.7430–6, revised; miscellaneous sections affected by TBOR 2 and PRWORA 1996 (TD 8725) 37, 16 Railroad retirement; rate determination;

quarterly (October 1997 and January 1998) 52, 12

Marital or charitable bequests (CtD 2062)

32, 8 26 CFR 301.6634–1, 301.6601–1, 301.6651–1, 1.6013–2(b)(1), amended; 301.6656–3, added; 301.7122–1(e), revised; 301.7430–0, –1, –2, –4, –5, amended; 301.7420–6, revised; miscellaneous sections affected by TBOR 2 and PRWORA1996 (TD 8725) 37, 16

Group health plans; access, portability,

and renewability requirements; correction (Notice 41) 28, 6

Regulations:

26 CFR 40.6302(c)–1, amended; 40.6302(c)–1T, removed; federal tax deposits by electronic funds transfer (TD 8723) 30, 4 26 CFR 301.6634–1, 301.6601–1, 301.6651–1, 1.6013–2(b)(1), amended; 301.6656–3, added; 301.7122–1(e), revised; 301.7430–0, –1, –2, –4, –5, amended; 301.7420– 6, revised; miscellaneous sections affected by TBOR 2 and PRWORA 1996 (TD 8725) 37, 16 Rural airport list (RP 46) 42, 10

Regulations:

26 CFR 301.6634–1, 301.6601–1,

1998 (RR 57) 52, 16 Depreciation:

Retail motor fuels outlet (RR29) 28, 4 Elections into mark-to-market account

ing (Notice 37) 27, 8 Earned income credit; due diligence; paid

preparers (Notice 65) 51, 14 Education incentives; credits; interest de duction; individual retirement accounts (Notice 60) 46, 8 Electing Small Business Trust (ESBT)

qualification (Notice 49) 36, 8 Electronic filing of Form 941, Employer’s

January 5, 1998 242 1998–1 I.R.B.

42, 19; Form 1040 (RP 60) 52, 39 Electronic or magnetic media filing:

Optional standard mileage rates, 1998

Specifications for 1997 Forms 1098,

1099, 5498, and W–2G (RP 34) 30, 14 Employee plans:

Cost-of-living adjustments, 1998 (No tice 58) 45, 7 Covered compensation tables; 1998

(RR 45) 46, 4 Delegation of authority (DO 97 (Rev.

(RP 58) 52, 24 Penalties; substantial understatement (RP

56. 52, 18 Per diem allowances, 1998 (RP 59) 52, 31 Presidentially declared disasters in North

Dakota and Minnesota (Notice 62) 49, 8 Private delivery services; timely filing or

payment (Notice 50) 37, 21 Proposed regulations:

34)) 41, 14 Funding:

Full funding limitations, weighted av

27. 27, 4 ; August 1997 (RR 30) 31, 12 ; September 1997 (RR 36) 36, 5; October 1997 (RR 41) 40, 4 ; November 1997 (RR 44) 45, 5; December 1997 (RR 50) 49, 5 Rates: Underpayments and overpayments for

calendar quarter beginning October 1, 1997 (RR 40) 39, 8; beginning January 1, 1998 (RR53) 52, 13 International operation of ships and aircraft; income exempt from tax (RR 31) 32, 4

Inventories:

erage interest rate, July 1997 (Notice 44) 31, 15 ; August 1997 (Notice 47) 35, 5 ; September 1997 (Notice 51) 38, 20; October 1997 (Notice 56) 43, 19; November 1997 (Notice 69) 48; 12 ; December 1997 (Notice 74) 51, 18 Highly compensated employee, definition

LIFO:

Automobile dealers (RR 42) 41, 4 ;

(RP 44) 41, 8 Price indexes, department stores,

26 CFR 1.125–1, –2, amended; tax treatment of cafeteria plans (REG–243025– 96) 51, 25 26 CFR 1.263A–0, amended; rules for property produced in a farming business (REG–208151–91) 38, 21 26 CFR 1.401(b)–1; remedial amendment period (REG–106043–97) 37, 24 26 CFR 1.411(d)–4, amended; permitted elimination of preretirement optional forms benefit (REG–107644–97) 32 , 24 26 CFR 1.465–27, added; qualified nonrecourse financing under section 465(b)(6) (REG–105160–97) 37, 22 26 CFR 1.743–2, added; 301.6109–1, amended; 301.7701–2, –3, amended; elective entity classification (REG– 105162–97) 48, 13 26 CFR 1.863–3, amended; 1.936–6, added; source of income from sales of inventory partly from sources within a possession of the U.S. (REG–251985–96) 48, 18 26 CFR 1.894–1(d), added; guidance regarding claims for certain income tax convention (REG–104893–97) 29, 13 26 CFR 1.1441–1 (e)(4)(iv), revised; Form W–8, electronic filing (REG–107872–97) 47, 11 26 CFR 1.1441–3(b), revised; sales of obligations between interest payment dates; Withholding on interest (REG–114000–97) 47, 13 26 CFR 301.6104(e)–0, –1, –2, –3, added; tax-exempt organizations, public disclosure requirements, guidance availability and hearing (REG–246250–96) 42, 30 26 CFR 301.6109–1, amended; 301.6109–3, added; adoption taxpayer identification numbers (REG–103330–97) 51, 24 26 CFR 301.7623–1, revised; violations of Internal Revenue laws, rewards (REG–252936–96) 51, 27

(Notice 45) 33, 7 Individual retirement plans, definition

of academic period (Notice 53) 40, 6 Minimum distributions; age 70 ¹ ⁄2 (No tice 75) 51, 18 Organizations, functions, and authority

delegations; director, Employee Plans Division (DO 172(Rev. 5)) 28, 6 Remedial amendment period extension

May 1997 (RR 28) 28, 4; June 1997 (RR 32) 33, 4 ; July 1997 (RR 37) 37, 15; August 1997 (RR 43) 42, 8 ; September 1997 (RR 47) 47, 4; October 1997 (RR 52) 50, 4 Late S corporation elections (RP 40) 33, 50 Leased property, substantial modification

(Notice 72) 50, 7 Line pack gas; cushion gas (RR 54) 52, 9 Low-income housing:

Bond factor amounts, July–September

(RP 41) 33, 51 Enhanced oil recovery credit for 1997

(Notice 39) 27, 8 Extension of time to file, Form 926 (No tice 42) 29, 12 Foreign base company income (RR 48)

49, 5 Forms 1096, 1098, 1099 series, 5498,

W–2G: Reproduction of forms; RP 97–32,

1997 (RR 34) 34, 4 Tax credit (RP 42) 33, 57 Magnetic media filing; partnership (No tice 77) 52, 18 Marginal production rates for 1997 (No tice 38) 27, 8 Mark-to-market accounting method for

dealers in securities (RR 39) 39, 4 Material limitation on surviving spouse’s

modified and amplified (RP 97–32A) 34, 10; Requirements for reproducing paper substitutes (RP27) 27, 9 Fringe benefits aircraft valuation formula

(RR 33) 34, 4 Hope Scholarship Credit; Lifetime Learn ing Credit; information reporting (Notice 73) 51, 16 Inflation-adjusted numbers for 1998, sec tion 1274A (RR 56) 52, 11 Insurance companies; segregated asset ac counts (RR 46) 46, 7 Intercompany transactions on separate en

tax in 1998 (Notice 71) 49, 9 On-line filing program; Form 1040 (RP

right to income (Notice 63) 47, 6 Methods of accounting:

Automatic consent to change (RP 37)

33, 18 Last-in, first-out inventory method (RP

36. 33, 14 Original issue discount (RP 39) 33, 48 Package design costs (RP 35) 33, 11 Warranty contracts (RP 38) 33, 43 Mutual life insurance companies; differ ential earnings rate (RR 35) 35, 4 Notice of levy used to collect delinquent

tity basis (RP 49) 43, 22 Interest:

Investment:

Federal short-term, mid-term, and

long-term rates for July 1997 (RR

61. 52, 51 Optional rules for substantiating certain

travel etc., expenses (RP 45) 41, 10

1998–1 I.R.B. 243 January 5, 1998

Punitive damages for personal injuries

(CtD 2061) 31, 5 Qualified state tuition programs (Notice

26 CFR 301.6109–1, amended; 301.6109–1T, –3T, added; adoption taxpayer identification numbers (TD 8739) 51, 8 26 CFR 301.6334–1, 301.6601–1, 301.6651–1, 1.6013–2(b)(1), amended; 301.6656–3, added; 301.7122–1(e), revised; 301.7430–0, –1, –2, –4, –5, amended; 301.7430–6, revised; miscellaneous sections affected by TBOR 2 and PRWORA1996 (TD 8725) 37, 16 26 CFR 301.7623–1, amended; 301.7623–1T, added; violations of Internal Revenue laws, rewards (TD 8737) 51, 11 Securities lending transaction notice (Notice

66. 48, 8 Section 911(d)(4) waiver (RP 51) 45, 9 Substitute printed, computer-prepared,

and computer-generated tax forms and schedules for 1997 (RP 54) 50, 8 Tax forms and instructions:

52. 38, 20 Regulations:

26 CFR 1.42–15, added; low-income housing tax credit, available unit rule (TD 8732) 42, 4 26 CFR 1.42–16, added; 1.42–16T, removed; low-income housing tax credit, federal grants (TD 8731) 42, 6 26 CFR 1.61–4, 1.162–12(a), 1.263A– 1, 1.471–6, amended; 1.263A–4T, revised; rules for property produced in a farming business (TD 8729) 38, 4 26 CFR 1.125–4T, added; tax treatment of cafeteria plans (TD 8738) 51, 4 26 CFR 1.163–5(c)(2)(i)(B)(5), 1.165–12, 1.817–7, 1.1441–8, 1.1445–5, 1.6041–1, –2, –3, 1.6041–7, 1.6042–2, –4, 1.6043–2, 1.6044–2, 1.6045–1, –2, 1.6049–4, –5, –6, –7, –8(a), 1.6050A, 1.6050H–1, 1.6050N–1, 1.6071–1, 301.6109–1, 301.6114–1, 301.6402–3, 301.6721–0, 1.1441–3, 1.871–14, 1.1441–0, –9, 1.1442–3, 1.6041–8, 1.6041A–1, added; 1.871–6, 1.1441–1, –2, –5, –6, 1.1442–1, –2, 1.1443–1, 1.1461–1, –2, 1.1462–1, 1.1463–1, 1.6041–4, 1.6044–3, –5, 1.6091–1(b)(15), revised; 1.1441–4T, 1.1461–3, –4, 1.6045–1T, –2T, removed; 1.1441–8T, redesignated; withholding of tax on certain U.S. source income paid to foreign persons and related collection, refunds, and credits (TD 8734) 44, 5

26 CFR 1.263A–0, –1, –15, amended; 1.263A, added; 1.263A–7T, removed; procedure for changing a method of accounting under section 263A (TD 8728) 37, 4 26 CFR 1.302–2, amended; 1.1059(e)(1), added; extraordinary dividends (TD 8724) 36, 4 26 CFR 1.401(b)–1, amended; 1.401(b)–1T, added; remedial amendment period (TD 8727) 34, 5 26 CFR 1.501(c)(5)–1, amended; taxexempt organizations, requirements (TD 8726) 34, 7 26 CFR 1.704–3, 1.1245–1, amended; allocations of depreciation recapture among partners in a partnership (TD 8730) 38, 16 26 CFR 1.861–2, 1.864–5, 1.871–7, 1.881–2, 1.884–1, 1.7701(1)–1; securities lending transactions, certain payments made (TD 8735) 43, 4 26 CFR 1.894–1T(a) through (c), added; guidance regarding claims for certain income tax convention (TD 8722) 29, 4 26 CFR 1.6038–2, 1.6046–1(g), 301.6114–1, 301.7701(b)–0, –3, –7, –8; treaty-based return positions (TD 8733) 43, 8 26 CFR 1.6302–1, –2, amended; 1.6302–1T, –2T, –3T, –4T, removed; 1.6302–3(c), revised; 1.6302–4, added; federal tax deposits by electronic funds transfer (TD 8723) 30, 4 26 CFR 53.6071–1T(f), –1(f), amended; time for filing Form 4720 return (TD 8736) 50, 5

Electronic Federal Tax Payment Sys

tem (EFTPS); electronic remittance system for federal tax deposits and payments (RP 33) 30, 10 Taxpayer Browsing Protection Act (PL

105–35) 43, 13 Treatment of Hong Kong and China (No tice 40) 28, 6 Work Opportunity and Welfare-to-Work

tax credits (Notice 54) 41, 7 Year 2000 costs; computer software (RP

50. 45, 8 Year 2000 date standard policy (Notice

51. 48, 8

January 5, 1998 244 1998–1 I.R.B.

1998–1 I.R.B. 245 January 5, 1998

January 5, 1998 246 1998–1 I.R.B.

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