Part I. Background

Purpose To announce excise tax changes made by the Taxpayer Relief Act of 1997 (P.L. 105-34). The changes include:

• A tax on kerosene effective beginning July 1, 1998 (new IRS No. 35 (Form 720)), and

• A floor stocks tax on kerosene held on July 1, 1998 (new IRS No. 103 (Form 720)).

Also included in this announcement are:

• A replacement for the Rate Table for Fuel Tax Claims for Form 8849 (Rev. January 1997), Claim for

Refund of Excise Taxes;

• Procedures for filing a claim for the nontaxable use of kerosene and sales of kerosene by registered ultimate vendors; and

• A reminder of delayed deposit due dates for certain taxes.

Kerosene tax, The rate for undyed kerosene is $.244 per gallon. Generally, the rules that apply to taxable fuel apply to New IRS No. 35 kerosene.

Floor stocks A floor stocks tax is: t ax on kerosene, New IRS No. 103 - Imposed on kerosene held by any person on July 1, 1998.

• Imposed at a rate of $.244 per gallon.

• Payable by deposit at an authorized depositary by August 31, 1998.

• Reported on Form 720 for the third quarter, generally due October 31, 1998.

The floor stocks tax does not apply
- To the extent tax on the kerosene has been or will be imposed under Code section 4081 or 4091.

• To kerosene that has been dyed by the earlier of (1) the time of sale or (2) September 30, 1998.

• To kerosene held for any exempt use.

• If the total amount of kerosene held on July 1, 1998, is not more than 2,000 gallons. Kerosene held for

an exempt use is not included in figuring the 2,000-gallon threshold.

See Form 720 and its instructions.

Form 8849 You may continue to use Form 8849 (Rev. January 1997) until an updated version is available. The following table shows the current rates for fuel tax claims. Do not use the table in the Instructions of Form 8849 (Rev. April 1997).

Rate Table for Fuel Tax Claims (as of 10/01/97)

1998–28 I.R.B. 11 July 13, 1998

Kerosene claims Claims for nontaxable use of taxed kerosene and for sales by registered ultimate vendors of kerosene may be made on Form 8849 as follows:

• Use line 12, Other Claims, to make a claim for kerosene.

• Follow the format for line 6 on Form 8849 (Rev. January 1997).

• Registered ultimate vendors who sell the fuel for use by a state or on a farm are to provide the same information as outlined in the instructions for line 6c. See the Instructions for Form 8849 (Rev. April

1997).

Delayed deposits of Any deposit of. . . that would be is instead due certain excise taxes taxes on either due . . . on . . .

Fuel (all IRS Nos.) After July 31, 1998, Oct. 5, 1998 or and before Oct. 1, 1998,* Transportation of property by air

Transportation of persons by air After Aug. 14, 1998, and before Oct. 5, 1998 or Oct. 1, 1998,* Use of international air travel facilities

• Includes the September rule deposit due Sept. 28 or 29

New Form 5305–RB Now Available

Announcement 98–58

Form 5305–RB, Roth Individual Retirement Annuity Endorsement, is a new model annuity endorsement agreement. Section 302 of the Taxpayer Relief Act of 1997 created the Roth individual retirement annuity (Roth IRA). A Roth IRA is established after the contract, which includes Form 5305-RB, is executed by both the annuitant and the issuer. The form meets the requirements of section 408A of the Internal Revenue Code.

Copies of Form 5305–RB are available at most IRS offices. Applicants may order the form by telephone or they may use other IRS electronic information services to get copies.

Required Distributions From Qualified Plans and Individual Retirement Plans; Correction

Announcement 98–63

AGENCY: Internal Revenue Service, Treasury.

ACTION: Correction to notice of proposed rulemaking.

SUMMARY: This document contains

Announcement 98–47, Supplemental Tables of Income Tax Rates and Exempt Personal Service Income Under New Income Tax Treaties and Protocols; Correction

Announcement 98–59

The following corrections should be made to Table 1 of Announcement 98–47. This announcement was published on

page 5 of Internal Revenue Bulletin 1998–23. Under column 6 for residents of Switzerland, the rate of withholding should be corrected to read “15.” It currently reads “18.”

In footnote k, the first sentence should be corrected to read: “This is the rate for royalties for the use of, or the right to use, industrial, commercial, and scientific equipment.”

July 13, 1998 12 1998–28 I.R.B.

corrections to REG–209463–82, which was published in the Federal Register on Tuesday, December 30, 1997 (62 F.R. 67780 [1998–4 I.R.B. 27]). The amendments to existing proposed regulations make changes to the rules that apply if a trust is named as a beneficiary of an employees benefit under a retirement plan.

FOR FURTHER INFORMATION CONTACT: Thomas Foley, (202) 622-6030 (not a toll-free number).

SUPPLEMENTARY INFORMATION:

Background

The notice of proposed rulemaking that is the subject of these corrections is under section 401(a)(9) of the Internal Revenue Code.

Need for Correction

As published, REG–209463–82 contains errors which may prove to be mis

leading and are in need of clarification.

Correction of Publication

Accordingly, the publication of the notice of proposed rulemaking (REG209463-82), which is the subject of FR Doc. 97-33393, is corrected as follows:

§1.409(a)(9)–1 [Corrected]

1. On page 67783, § 1.409(a)(9)–1 is corrected as set out in the following table:

1998–28 I.R.B. 13 July 13, 1998

3. On page 67784, § 1.409(a)(9)–1 is corrected as set out in the following table:

Cynthia E. Grigsby, Chief, Regulations Unit, Assistant Chief Counsel (Corporate) .

(Filed by the Office of the Federal Register on March 24, 1998, 8:45 a.m., and published in the issue of the Federal Register for March 25, 1998, 63 F.R. 14391)

IRS Adoption Taxpayer Identification Numbers; Correction

Announcement 98–64

AGENCY: Internal Revenue Service (IRS), Treasury.

ACTION: Correction to final and temporary regulations.

SUMMARY: This document contains corrections to Treasury Decision 8739, which was published in the Federal Reg- ister on Monday, November 24, 1997 (62 F.R. 62518 [1997–51 I.R.B. 8]) relating to taxpayer identifying numbers.

DATES: This correction is effective November 24, 1997.

FOR FURTHER INFORMATION CONTACT: Michael L. Gompertz, (202) 6224910 (not a toll-free number).

SUPPLEMENTARY INFORMATION:

Background

The final and temporary regulations that are the subject of these corrections are under section 6109 of the Internal Revenue Code.

Need for Correction

As published, TD 8739 contain errors which may prove to be misleading and are in need of clarification.

Correction of Publication

Accordingly, the publication of the final and temporary regulations (T.D.

8739), which was the subject of F.R. Doc. 97–30550, is corrected as follows:

§301.6109–1 [Corrected]

1. On page 62520, column 2, §301.6109–1(h)(2)(iii), line 1, the language “(iii) Paragraphs (a)(1)(i), (a)(1)(ii)(A),” is corrected to read “(iii) Paragraphs (a)(1)(i), (a)(1)(ii) introductory text, (a)(1)(ii)(A),”. On the last two lines of the paragraph, the language “(a)(1)(ii) introductory text, and (a)(1)(ii)(A) and (B).” is corrected to read “(a)(1)(ii) introductory text, (a)(1)(ii)(A) and (a)(1)(ii)(B).”.

§301.6109–1T [Corrected]

2. On page 62520, column 3, §301.6109–1T(h), the last three lines of the paragraph, the language “further guidance prior to November 24, 1997, see §301.6109–1(a)(1)(i), (a)(1)(ii)(A) and (a)(1)(ii)(B).” is corrected to read “guidance applicable prior to November 25, 1997, see §301.6109–1(a)(1)(i), (a)(1)(ii) introductory text, (a)(1)(ii)(A) and (a)(1)(ii)(B).”.

Cynthia E. Grigsby, Chief, Regulations Unit, Assistant Chief Counsel (Corporate).

(Filed by the Office of the Federal Register on March 17, 1998, 8:45 a.m., and published in the issue of the Federal Register for March 18, 1998, 63 F.R. 13124)

Gasoline and Diesel Fuel Excise Tax; Special Rules for Alaska; Definitions; Correction

Announcement 98–65

AGENCY: Internal Revenue Service, Treasury.

ACTION: Correction to final regulations.

SUMMARY: This document contains corrections to the final regulations (T.D. 8748), which were published in the Fed-

eral Register on Friday, January 2, 1998 (63 F.R. 24 [1998–8 I.R.B. 24]). The regulations relate to gasoline and diesel fuel excise tax. DATES: This correction is effective January 2, 1998.

FOR FURTHER INFORMATION CONTACT: Frank Boland (202) 622-3130, (not a toll-free call).

SUPPLEMENTARY INFORMATION:

Background

The final regulations that are the subject of this correction are under section 6416.

Need for Correction

As published, final regulations (T.D. 8748) contain errors that may prove to be misleading and are in need of clarification.

Correction of Publication

Accordingly, the publication of the final regulations (T.D. 8748), which are the subject of F.R. Doc. 97–33988, is corrected as follows:

PART 48—[Corrected]

1. On page 26, column 1, amendatory instruction “ Par. 6a. ” is added to read as follows:

§48.6416(a)–3 [Amended]

Par. 6a . In §48.6416(a)–3, paragraph (b)(3)(ii) is amended by removing the last sentence.

2. On page 26, column 1, amendatory instruction “ Par. 6b. ” is added to read as follows:

§48.6416(b)(3)–2 [Amended]

Par. 6b. In §48.6416(b)(3)–2, paragraph (d)(6) is amended by removing the language “and §48.6416(b)(4)–1”.

July 13, 1998 14 1998–28 I.R.B.

Cynthia E. Grigsby, Chief, Regulations Unit, Assistant Chief Counsel (Corporate).

(Filed by the Office of the Federal Register on March 30, 1998, 8:45 a.m., and published in the issue of the Federal Register for March 31, 1998, 63 F.R. 15292)

Abatement of Interest; Correction

Announcement 98–66

AGENCY: Internal Revenue Service (IRS), Treasury.

ACTION: Correction to notice of proposed rulemaking.

SUMMARY: This document contains a correction to REG–209276–87, which was published in the Federal Register on Thursday, January 8, 1998 (63 F.R. 1086

[1998–11 I.R.B. 18]), relating to the abatement of interest attributable to unreasonable errors or delays by an officer or employee of the IRS.

FOR FURTHER INFORMATION CONTACT: David Auclair, (202) 622-4910 (not a toll-free number).

SUPPLEMENTARY INFORMATION:

Background

The notice of proposed rulemaking that is the subject of this correction is under section 6404 of the Internal Revenue Code.

Need for Correction

As published, REG–209276–87 contains an error which may prove to be misleading and is in need of clarification.

Correction of Publication

Accordingly, the publication of the notice of proposed rulemaking (REG– 209276–87), which is the subject of F.R. Doc. 98–19, is corrected as follows:

On page 1087, column 3, in the preamble under the paragraph reading “Expla- nation of Provisions”, the first full paragraph in the column is corrected to read:

The provisions of the regulations are proposed to apply to interest accruing with

respect to deficiencies or payments of any tax described in section 6212(a) for taxable years beginning after July 30, 1996.

Cynthia E. Grigsby, Chief, Regulations Unit, Assistant Chief Counsel (Corporate).

Pittsburgh, PA

Agape Parc Inc., Charlotte, NC Agricultural Improvement Project,

Burlington, NC Alpha Kappa PSI Foundation,

Chicago, IL Alamance Childrens Theater Inc.,

(Filed by the Office of the Federal Register on March 4, 1998, 8:45 a.m., and published in the issue of the Federal Register for March 5, 1998, 63 F.R. 10798)

Foundations Status of Certain Organizations

Announcement 98–67

The following organizations have failed to establish or have been unable to maintain their status as public charities or as operating foundations. Accordingly, grantors and contributors may not, after this date, rely on previous rulings or designations in the Cumulative List of Organizations (Publication 78), or on the presumption arising from the filing of notices under section 508(b) of the Code. This listing does not indicate that the organizations have lost their status as organizations described in section 501(c)(3), eligible to receive deductible contributions.

Former Public Charities. The following organizations (which have been treated as organizations that are not private foundations described in section 509(a) of the Code) are now classified as private foundations: A Life Recovery Center Inc., Tallahassee,

Indianapolis, IN Alternative Program Associates

Organizations, Cincinnati, OH Atlanta Gaymes Inc., Atlanta, GA Agua Fria Firefighters Association,

Foundation, Pittsburgh, PA American Friends of the Institute of

Talmudic Studies, Inc., Lakewood, NJ American Musical Theatre, Kansas City,

MO American Way Charities Inc., Atlanta,

GA AMTF Joint Theater Center Inc.,

Philadelphia, PA Angels Place, Southfield, MI Animal Shelter League Inc., High Point,

NC Aretha Franklins Scholarship Awards

Inc., Birmingham, MI Arizona Figure Skating Club, Phoenix,

AZ Arizona Future Business Leaders of

America Phi Beta Lambda, Phoenix, AZ Art Attack Inc., Atlanta, GA Arthur Kill Watershed Association Corp.,

Colonia, NJ Ash Tree Organization, Savannah, GA Asian American Institute, Evanston, IL Association for the Health Enrichment of

Large People, Radford, VA Association of Community Living of

FL A E A O N M S Health and Medical

Larimer County Inc., Fort Collins, CO Association of Sycamore Schools Parent

Research Foundation Inc., Detroit, MI A P P L E S Project Inc., Kent, OH Able Abilities Enterprises Inc., Malvern,

Marana, AZ Awakening Center, Memphis, TN Axis Theatre of Maryland Inc.,

AR Academics Behavior and Cooperation

Santa Fe, NM Avra Community Resource Center,

Inc., Abilene, TX Act V Inc., Alexandria, VA Adult Basic Education Council of

Lauderdale County Inc., Ripley, TN African American Arts Alliance,

Baltimore, MD Baker Street Theater Inc., Gate City, VA Ballet Metropolitan Foundation,

Laplume, PA African-Americans in Horse Racing Inc.,

Columbus, OH Baltimore Housing Roundtable Inc.,

Baltimore, MD Afrikasian Scholars Foundation Inc.,

Silver Spring, MD Agape Full of Love Learning Center Inc.,

Baltimore, MD Bang Elementary P T O Incorporated,

Houston, TX Batavia Rotary Club Educational and

Charitable Fund Inc., Batavia, OH Bay Ballet Theatre Inc., Tampa, FL

1998–28 I.R.B. 15 July 13, 1998

Beaverdale Place Inc., Des Moines, IA Bedford Development Corporation,

Cedar Lake Volunteer Fire Department

Cortez Addictions Recovery Service,

Bedford, KY Bellefonte Educational Foundation Inc.,

Inc., Hinton, OK Center for Global Educational

Partnerships, Ranchos De Taos, NM Center for Leadership Development and

Cortez, CO Council of Houma Indian Elders

Bellefonte, PA Bellerive Neighborhood Association,

St. Louis, MO Belton Senior Center Foundation Inc.,

Belton, TX Bergen County Community Broadcast

Research Inc., Washington, DC Center for the Prevention of Child Abuse

Federation Inc., Kenner, LA Central Georgia Council on Family

Violence Inc., Macon, GA Central Georgia Open Inc., Macon, GA Centro Hispano, Little Rock, AR Champlin Park Traveling Basketball

Association, Champlin, MN Chemical Valley Sports Association and

Foundation, Charleston, WV Chicago Community Health Association

Foundation, Dumont, NJ Berkeley County Sheriffs Police Athletic

in Williamson County Inc., Franklin, TN Centrada-Center for Alcohol and Drug

Addiction Services, Marysville, OH Christopher Charity Inc., Columbus,

OH Circleville Band Boosters, Circleville,

League Inc., Martinsburg, WV Bessemer Education Enhancement

Foundation, Bessemer, AL Bethesda Elementary P T O Inc.,

Inc., Chicago, IL Christian Ecumenical Development Corp

for Far South Side of Chicago, Chicago, IL Chipola Historical Trust Inc., Marianna,

Waukesha, WI Black Educators of Morris County,

OH Cincinnati-Nancy Sister City Association

FL Counseling and Educational Support

Services, St. Louis, MO Creative Advancement Centers Inc.,

Madison, NJ Blackwell Regional Hospital Auxiliary

Inc., Blackwell, OK Bluecoats of Atlanta Inc., Atlanta, GA Brandon & Millard Williams Police

Inc., Cincinnati, OH Cities in Schools of Rock Hill Fort Mill

Inc., Rock Hill, SC Citrus-Hernando Private Industry

Council Inc., Brooksville, FL Clarke County Education Foundation

Inc., Berryville, VA Clemson University Flying Club Inc.,

Athletic League, Youngstown, OH Brenda L Redmond Cultural Arts

Clemson, SC Cleveland County Audubon Society,

Foundation, Houston, TX Brentwood Community Foundation,

Houston, TX Brians House-Price Lane Inc., West

Norman, OK Cleveland Sister Cities Inc., Cleveland,

Augusta, GA Creative Arts Therapies Inc., Arma, KS Crystal Courts, Chicago, IL Cut and Clean Inc., Hopkinsville, KY Collier County Juvenile Justice Council,

Inc., Naples, FL Community Access to Service

Association, Modesto, CA Covenant Minestrier, Inc., Auberry, CO D P Whitley Scholarship Fund, High

Chester, PA Bridge for Prison Ministries, Huntsville,

OH Clinton Rotary Club Foundation, Clinton,

IA Close Call Theatre, Chicago, IL Coalition of All Breed Rescue of

AL Bronco Soccer Club, Fenton, MO Bruton Park Home Incorporated,

Point, NC Dakota Mental Health Consumers

Hampton, VA Business Volunteer Alliance, Englewood,

Arizona-Cabra, Phoenix, AZ College News and Consulting Services

Inc., Kent, OH Color Vision Foundation, Ashland, OR Commodity Giving Initiative,

Minnetonka, MN Community Assistance Programs Inc.,

Network, Apply Valley, MN Dallas Academy of Music for Children,

Dallas, TX Daystar Inc., Kenner, LA Dearborn Public Schools Education

CO C A R E S Foundation of Mt. Carmel,

Mt. Carmel, IL C B S Homes Inc., Albuquerque, NM Canton District No. 66 Education,

Foundation, Dearborn, MI Delta Regional Coalition, McGehee, AR Denver International Childrens Festival,

Denver, CO Denver Place Parent-Teacher

Canton, IL Capital Area Supply Corps Wives Inc.,

Baltimore, MD Community Awareness Committee, New

Arlington, VA Care Network for the Disabled,

Gladstone, MO Cariso Productions Inc., St. Croix, VI Carolina Organization for Community

Concerns on Environment, Wilson, NC Carroll Council Inc., Southlake, TX Carroll County Women on the Move,

Westminster, MD CASA Phoenix Incorporated, Sun City,

AZ Catawba County Housing Foundation,

Brighton, PA Community Builders Housing

Corporation, Stirling, NJ Community Care of the VNA,

GA Cor Christi Inc., Whippany, NJ Cornerstone Ministries, Rawlins, WY

Philadelphia, PA Community Health Ventures Inc.,

Organization, Wilmington, OH Desoto Eagles Athletic Booster Club Inc.,

Norman, OK Community Health Awareness Inc.,

Miami, FL Community Interpreter Services, St. Paul,

Desoto, TX Detroit Area Taskforce on Self Esteem,

Detroit, MI Detroit Community Focus Inc., Detroit,

MI DHS Orchestra Boosters Inc., Dunwoody,

GA Diverse Financial Services, Houston,

MN Computers for Classrooms Inc., Atlanta,

TX Dobson Rescue Squad Inc., Dobson, NC Double D Thrift Inc., Minot, ND

Newton, NC

July 13, 1998 16 1998–28 I.R.B.

Dr King Food & Shelter Center, Toledo,

Florida International Affairs Foundation

Inc., Tallahassee, FL Florida League of Middle Schools,

Friends of the Park Foundation, Tilden,

NE Friends of the Thomas-Foreman Home,

OH Dunbar Project, Baltimore, MD Durham Communities in Schools Inc.,

Durham, NC Durham Episcopal Housing Ministries,

Muskogee, OK Friends of the West Unity Library,

Durham, NC Eagle Point Parent Group Inc., Oakdale,

Naples, FL Folami House, Inc., Chicago, IL Foothills Symphonic Band-Foothills

Symphonic Music Association, Loveland, CO Forest Lakes Public Library Inc., Forest

Lakes, AZ Fort Maurepas Society, Ocean Springs,

W Unity, OH Friends of Vander Veer Inc., Davenport,

IA Friends of Youth Services, Lincoln, NE Fun Fishing Without Barriers Inc.,

Freeland, MD Future Directions Consumer Operated,

MN East Ark Inc., Helena, AR East Central Wellness Project Inc.,

Oshkosh, WI East Hills Band and Orchestra

Association, Bethlehem, PA East Row Historic Foundation Inc.,

MS Fort Recovery Ohio Community

Westlake, OH Gahanna Middle School South Parent

Newport, KY Eastern Women S. Junior Committee of

Foundation Inc., Fort Recovery, OH Fort Worth Youth Soccer Association

Inc., Fort Worth, TX Forty-Two State Street Inc., Belleville, NJ 413 Club Inc., Columbus, GA Foundation for Life Death and Transition,

Association, Gahanna, OH Galesburg-Augusta Community Schools

Foundation, Galesburg, MI Garfield Boulevard Community

Organization, Chicago, IL Georgia Baptist College of Nursing

Fifty, Pinson, AL Edge of the Wilderness Community

Center, Bigfork, MN Edgerton Athletic Boosters Inc.,

Edgerton, OH Edmond Arts Incorporated, Edmond, OK Edmondson Community Organization

Inc., Baltimore, MD Edna-Johnetta House Inc., Memphis, TN Employment Agency Servicing Youth of

El Rito, NM Foundation for Prevention of Medical

Adverse Events-Latrogenics, Tucson, AZ Foundation for Transplants for Needy

GA Frank Lloyd Wright Heritage Tourism

Children Inc., Morristown, NJ Fourth Street Foundation Inc., Carrollton,

Honor Society, Atlanta, GA Georgia Folk Festival, Milledgeville, GA GHS – Osteopathic Inc., Philadelphia, PA Gifts for Education and Economic

Development Inc., Kansas City, MO Goat Song Productions, Houston, TX

If an organization listed above submits information that warrants the renewal of its classification as a public charity or as a private operating foundation, the Internal Revenue Service will issue a ruling or determination letter with the revised classification as to foundation status. Grantors and contributors may thereafter rely upon such ruling or determination letter as provided in section 1.509(a)–7 of the Income Tax Regulations. It is not the practice of the Service to announce such revised classification of foundation status in the Internal Revenue Bulletin.

Chicago, Chicago, IL End Time Ministries Inc., Belton, SC Energy Rated Homes of Virginia Inc.,

Richmond, VA Environmental Fund for Virginia Inc.,

Charlottesville, VA Entity Mission, Garland, TX Environmental Employment Services,

Austin, TX Fair Play Parent Teacher Organization,

Program Inc., Madison, WI Franklin County 2000-Business and

Education Standing Together, Chambersburg, PA Friends of Rancho de Ninos Inc.,

Fair Play, MO Fairview Early Education Parent Teacher

Organization, Rockford, IL Falling Through the Cracks, Hanover, PA Financial Freedom Foundation Inc.,

Albuquerque, NM Friends of Shepard State Park, Gaupier,

MS Friends of the Assiniboines Foundation,

Wolf Point, MT Friends of the Libraries of Woodbridge

Township Inc., Woodbridge, NJ Friends of the Library Calhoun County

Library, Edison, GA Friends of the Love County Branch of the

Keene, TX Fire Fighters Safety House Inc.,

Chickasaw Library System, Marietta, OK

Barrackville, WV

1998–28 I.R.B. 17 July 13, 1998

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.

July 13, 1998 18 1998–28 I.R.B.

Numerical Finding List ¹

Bulletins 1998–1 through 1998–27

Announcements:

98–1, 1998–2 I.R.B. 38 98–2, 1998–2 I.R.B. 38 98–3, 1998–2 I.R.B. 38 98–4, 1998–4 I.R.B. 31 98–5, 1998–5 I.R.B. 25 98–6, 1998–5 I.R.B. 25 98–7, 1998–5 I.R.B. 26 98–8, 1998–6 I.R.B. 96 98–9, 1998–7 I.R.B. 35 98–10, 1998–7 I.R.B. 35 98–11, 1998–8 I.R.B. 42 98–12, 1998–8 I.R.B. 43 98–13, 1998–8 I.R.B. 43 98–14, 1998–8 I.R.B. 44 98–15, 1998–10 I.R.B. 36 98–16, 1998–9 I.R.B. 17 98–17, 1998–9 I.R.B. 16 98–18, 1998–10 I.R.B. 44 98–19, 1998–10 I.R.B. 44 98–20, 1998–11 I.R.B. 25 98–21, 1998–11 I.R.B. 26 98–22, 1998–12 I.R.B. 33 98–23, 1998–12 I.R.B. 34 98–24, 1998–12 I.R.B. 35 98–25, 1998–13 I.R.B. 43 98–26, 1998–14 I.R.B. 28 98–27, 1998–15 I.R.B. 30 98–28, 1998–15 I.R.B. 30 98–29, 1998–16 I.R.B. 48 98–30, 1998–17 I.R.B. 38 98–32, 1998–17 I.R.B. 39 98–33, 1998–17 I.R.B. 39 98–34, 1998–17 I.R.B. 39 98–35, 1998–17 I.R.B. 40 98–36, 1998–18 I.R.B. 18 98–37, 1998–19 I.R.B. 24 98–38, 1998–19 I.R.B. 26 98–39, 1998–20 I.R.B. 24 98–40, 1998–20 I.R.B. 24 98–41, 1998–20 I.R.B. 25 98–42, 1998–21 I.R.B. 26 98–43, 1998–21 I.R.B. 26 98–44, 1998–22 I.R.B. 24 98–45, 1998–23 I.R.B. 18 98–46, 1998–25 I.R.B. 11 98–47, 1998–23 I.R.B. 5 98–48, 1998–24 I.R.B. 6 98–49, 1998–23 I.R.B. 19 98–50, 1998–23 I.R.B. 20 98–51, 1998–24 I.R.B. 7 98–52, 1998–24 I.R.B. 37 98–53, 1998–24 I.R.B. 37 98–54, 1998–25 I.R.B. 11 98–55, 1998–26 I.R.B. 41 98–56, 1998–26 I.R.B. 44 98–60, 1998–27 I.R.B. 39 98–61, 1998–27 I.R.B. 38

Notices:

98–1, 1998–3 I.R.B. 42 98–2, 1998–2 I.R.B. 22 98–3, 1998–3 I.R.B. 48 98–4, 1998–2 I.R.B. 25 98–5, 1998–3 I.B.R. 49 98–6, 1998–3 I.R.B. 52 98–7, 1998–3 I.R.B. 54 98–8, 1998–4 I.R.B. 6

1 See footnote at end of list.

Notices—Continued

98–9, 1998–4 I.R.B. 8 98–10, 1998–6 I.R.B. 9 98–11, 1998–6 I.R.B. 18 98–12, 1998–5 I.R.B. 12 98–13, 1998–6 I.R.B. 19 98–14, 1998–8 I.R.B. 27 98–15, 1998–9 I.R.B. 8 98–16, 1998–15 I.R.B. 12 98–17, 1998–11 I.R.B. 6 98–18, 1998–12 I.R.B. 11 98–19, 1998–13 I.R.B. 24 98–20, 1998–13 I.R.B. 25 98–21, 1998–15 I.R.B. 14 98–22, 1998–17 I.R.B. 5 98–23, 1998–18 I.R.B. 9 98–24, 1998–17 I.R.B. 5 98–25, 1998–18 I.R.B. 11 98–26, 1998–18 I.R.B. 14 98–27, 1998–18 I.R.B. 14 98–28, 1998–19 I.R.B. 7 98–29, 1998–22 I.R.B. 8 98–30, 1998–22 I.R.B. 9 98–31, 1998–22 I.R.B. 10 98–32, 1998–22 I.R.B. 23 98–33, 1998–25 I.R.B. 10 98–34, 1998–27 I.R.B. 30 98–35, 1998–27 I.R.B. 35

Proposed Regulations:

PS–158–86, 1998–11 I.R.B. 13 REG–100841–97, 1998–8 I.R.B. 30 REG–102144–98, 1998–15 I.R.B. 25 REG–102894–97, 1998–3 I.R.B. 59 REG–104062–97, 1998–10 I.R.B. 34 REG–104537–97, 1998–16 I.R.B. 21 REG–104691–97, 1998–11 I.R.B. 13 REG–105163–97, 1998–8 I.R.B. 31 REG–106031–98, 1998–26 I.R.B. xx REG–109333–97, 1998–9 I.R.B. 9 REG–109704–97, 1998–3 I.R.B. 60 REG–110965–97, 1998–13 I.R.B. 42 REG–115795–97, 1998–8 I.R.B. 33 REG–119449–97, 1998–10 I.R.B. 35 REG–120200–97, 1998–12 I.R.B. 32 REG–120882–97, 1998–14 I.R.B. 25 REG–121268–97, 1998–20 I.R.B. 12 REG–121755–97, 1998–9 I.R.B. 13 REG–208299–90, 1998–16 I.R.B. 26 REG–209276–87, 1998–11 I.R.B. 18 REG–209322–82, 1998–15 I.R.B. 26 REG–209373–81, 1998–14 I.R.B. 26 REG–209463–82, 1998–4 I.R.B. 27 REG–209476–82, 1998–8 I.R.B. 36 REG–209484–87, 1998–8 I.R.B. 40 REG–209485–86, 1998–11 I.R.B. 21 REG–209682–94, 1998–17 I.R.B. 20 REG–209807–95, 1998–8 I.R.B. 40 REG–243025–96, 1998–18 I.R.B. 18 REG–251502–96, 1998–9 I.R.B. 14 REG–251698–96, 1998–20 I.R.B. 14

Revenue Procedures:

98–1, 1998–1 I.R.B. 7 98–2, 1998–1 I.R.B. 74 98–3, 1998–1 I.R.B. 100 98–4, 1998–1 I.R.B. 113 98–5, 1998–1 I.R.B. 155 98–6, 1998–1 I.R.B. 183 98–7, 1998–1 I.R.B. 222

Revenue Procedures—Continued

98–8, 1998–1 I.R.B. 225 98–9, 1998–3 I.R.B. 56 98–10, 1998–2 I.R.B. 35 98–11, 1998–4 I.R.B. 9 98–12, 1998–4 I.R.B. 18 98–13, 1998–4 I.R.B. 21 98–14, 1998–4 I.R.B. 22 98–15, 1998–4 I.R.B. 25 98–16, 1998–5 I.R.B. 19 98–17, 1998–5 I.R.B. 21 98–18, 1998–6 I.R.B. 20 98–19, 1998–7 I.R.B. 30 98–20, 1998–7 I.R.B. 32 98–21, 1998–8 I.R.B. 27 98–22, 1998–12 I.R.B. 11 98–23, 1998–10 I.R.B. 30 98–24, 1998–10 I.R.B. 31 98–25, 1998–11 I.R.B. 7 98–26, 1998–13 I.R.B. 26 98–27, 1998–15 I.R.B. 15 98–28, 1998–15 I.R.B. 14 98–29, 1998–15 I.R.B. 22 98–30, 1998–17 I.R.B. 6 98–31, 1998–23 I.R.B. 9 98–32, 1998–17 I.R.B. 11 98–33, 1998–19 I.R.B. 7 98–34, 1998–18 I.R.B. 15 98–35, 1998–21 I.R.B. 6 98–36, 1998–23 I.R.B. 10 98–37, 1998–26 I.R.B. 6 9 8–38, 1998–27 I.R.B. 29 98–39, 1998–26 I.R.B. 36

Revenue Rulings:

98–1, 1998–2 I.R.B. 5 98–2, 1998–2 I.R.B. 15 98–3, 1998–2 I.R.B. 4 98–4, 1998–2 I.R.B. 18 98–5, 1998–2 I.R.B. 20 98–6, 1998–4 I.R.B. 4 98–7, 1998–6 I.R.B. 6 98–8, 1998–7 I.R.B. 24 98–9, 1998–6 I.R.B. 5 98–10, 1998–10 I.R.B. 11 98–11, 1998–10 I.R.B. 13 98–12, 1998–10 I.R.B. 5 98–13, 1998–11 I.R.B. 4 98–14, 1998–11 I.R.B. 4 98–15, 1998–12 I.R.B. 6 98–16, 1998–13 I.R.B . 18 98–17, 1998–13 I.R.B. 21 98–18, 1998–14 I.R.B. 22 98–19, 1998–15 I.R.B. 5 98–20, 1998–15 I.R.B. 8 98–21, 1998–18 I.R.B. 7 98–22, 1998–19 I.R.B. 5 98–23, 1998–18 I.R.B. 5 98–24, 1998–19 I.R.B . 6 98–25, 1998–19 I.R.B. 4 98–26, 1998–21 I.R.B. 4 98–27, 1998–22 I.R.B. 4 98–28, 1998–22 I.R.B. 5 98–29, 1998–24 I.R.B. 4 98–30, 1998–25 I.R.B. 8 98–31, 1998–25 I.R.B. 4 98–32, 1998–25 I.R.B. 4 98–33, 1998–27 I.R.B. 26

Treasury Decisions:

8740, 1998–3 I.R.B. 4

1998–28 I.R.B. 19 July 13, 1998

Numerical Finding List—Continued Bulletins 1998–1 through 1998–27

Treasury Decisions—Continued

8741, 1998–3 I.R.B. 6 8742, 1998–5 I.R.B. 4 8743, 1998–7 I.R.B. 26 8744, 1998–7 I.R.B. 20 8745, 1998–7 I.R.B. 15 8746, 1998–7 I.R.B. 4 8747, 1998–7 I.R.B. 18 8748, 1998–8 I.R.B. 24 8749, 1998–7 I.R.B. 16 8750, 1998–8 I.R.B. 4 8751, 1998–10 I.R.B. 23 8752, 1998–9 I.R.B. 4 8753, 1998–9 I.R.B. 6 8754, 1998–10 I.R.B. 15 8755, 1998–10 I.R.B. 21 8756, 1998–12 I.R.B. 4 8757, 1998–13 I.R.B. 4 8758, 1998–13 I.R.B. 15 8759, 1998–13 I.R.B. 19 8760, 1998–14 I.R.B. 4 8761, 1998–14 I.R.B. 13 8762, 1998–14 I.R.B. 15 8763, 1998–15 I.R.B. 5 8764, 1998–15 I.R.B. 9 8765, 1998–16 I.R.B. 11 8766, 1998–16 I.R.B. 17 8767, 1998–16 I.R.B. 4 8768, 1998–20 I.R.B. 4 8770, 1998–27 I.R.B. 4

1 A cumulative list of all revenue rulings, revenue procedures, Treasury decisions, etc., published in Internal Revenue Bulletins 1997–27 through 1997–52 will be found in Internal Revenue Bulletin 1998–1, dated January 5, 1998.

July 13, 1998 20 1998–28 I.R.B.

Finding List of Current Action on Previously Published Items ¹

Bulletins 1998–1 through 1998–27

Revenue Procedures:

91–59 Updated and superseded by 98–25, 1998–11 I.R.B. 7

94–16 Modified and superseded by 98–22, 1998–12 I.R.B. 11

93–62 Modified and superseded by 98–22, 1998–12 I.R.B. 11

95–35 95–35A Superseded by 98–19, 1998–7 I.R.B. 30

96–29 Modified and superseded by 98–22, 1998–12 I.R.B. 11

97–1 Superseded by 98–1, 1998–1 I.R.B. 7

97–2 Superseded by 98–2, 1998–1 I.R.B. 74

97–3 Superseded by 98–3, 1998–1 I.R.B. 100

97–4 Superseded by 98–4, 1998–1 I.R.B. 113

97–5 Superseded by 98–5, 1998–1 I.R.B. 155

97–6 Superseded by 98–6, 1998–1 I.R.B. 183

97–7 Superseded by 98–7, 1998–1 I.R.B. 222

97–8 Superseded by 98–8, 1998–1 I.R.B. 225

97–21 Superseded by 98–2, 1998–1 I.R.B. 74

97–24 97–24A Superseded by 98–33, 1998–19 I.R.B. 7

97–26 Obsoleted by 98–28, 1998–15 I.R.B. 14

97–28 Superseded by 98–36, 1998–23 I.R.B. 10

97–32 Superseded by 98–37, 1998–26 I.R.B. 6

1 A cumulative finding list for previously published items mentioned in Internal Revenue Bulletins 1997–27 through 1997–52 will be found in Internal Revenue Bulletin 1998–1, dated January 5, 1998.

Revenue Procedures—Continued

97–34 Superseded by 98–35, 1998–21 I.R.B. 6

97–35 Modified by 98–39, 1998–26 I.R.B. xx

97–53 Superseded by 98–3, 1998–1 I.R.B. 100

Revenue Rulings:

68–352 Obsoleted by 98–24, 1998–19 I.R.B. 6

70–225 Modified by 98–27, 1998–22 I.R.B. 4

73–198 Modified by 98–24, 1998–19 I.R.B. 6

75–17 Supplemented and superseded by 98–5, 1998–2 I.R.B. 20

75–406 Obsoleted by 98–27, 1998–22 I.R.B. 4

92–19 Supplemented in part by 98–2, 1998–2 I.R.B. 15

96–30 Obsoleted by 98–27, 1998–22 I.R.B. 4

1998–28 I.R.B. 21 July 13, 1998

July 13, 1998 22 1998–28 I.R.B.

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.

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.

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.

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.