INCOME TAX

Rev. Rul. 98–27, page 4. Spin-off of subsidiary, followed by its merger with unre- lated corporation. Based on the enactment of section 1012 of the Taxpayer Relief Act of 1997, the Service will not apply Court Holding (or any formulation of the step transaction doctrine) to determine whether the distributed corporation was a controlled corporation immediately before the distribution under section 355(a) solely because of any postdistribution acquisition or restructuring of the distributed corporation, whether prearranged or not. Rev. Ruls. 96–30 and 75–406 obsoleted. Rev. Rul. 70–225 modified.

Rev. Rul. 98–28, page 5. Federal rates; adjusted federal rates; adjusted fed- eral long-term rate, and the long-term exempt rate. For purposes of sections 1274, 1288, 382, and other sections of the Code, tables set forth the rates for June 1998.