Article XIII (8) Rev. Proc. (RP 21) 8, 27

Automobile owners and lessees (RP 24) 10, 31 ; (RP 30) 17, 6

Base period T-bill rate for 1998 (RR 55)

47, 5 Below-market loans; exempted loans;

second mortgage loans under the MAHRAAct (RR 34) 31, 12 Books and records; automatic data pro

Discrimination:

CODAs (Notice 1) 3, 42 Safe harbors (Notice 52) 46, 16 Eligible deferred compensation plans

Exempt Organizations:

(Notice 8) 4, 6 Funding:

Full funding limitations, weighted

cruitment incentives provided by hospitals (RR 15) 12, 6 Technical advice (RP 5) 1, 155 User fees (RP 8) 1, 225 Failure to deposit federal tax; penalty

abatement (Notice 14) 8, 27 Foreign partnerships, reporting transfer of

Letter rulings, etc. (RP 4) 1, 113 Organizations excepted from reporting

lobbying expenditures (RP 19) 7, 30 Tax consequences of physicians re

cessing system (RP 25) 11, 7 Business expenses:

Environmental remediation expendi tures (RP 47) 37, 8 Underground waste storage tank (RR

property by U.S. persons (Notice 17) 11, 6 Foreign tax credit abuse (Notice 5) 3, 49 Form 1040:

25. 19, 4 Capital gains and charitable remainder

trusts (Notice 20) 13, 25 Classification settlement program:

Extended until further notice (Notice

21. 15, 14 Common Trust Funds, unrelated business

taxable income (RR 41) 35, 6 Credits against tax:

Earned income credit; disqualified in

e-file program (RP 50) 38, 8 On-line filing program (RP 51) 38, 20 Fringe benefits aircraft valuation formula,

first half of 1998 (RR 14) 11, 4; second half of 1998 (RR 40) 33, 4 Fuel from a nonconventional source,

credit; section 29 inflation adjustment; reference price for 1997 (Notice 28) 19, 7 Hybrid arrangements, treatment under

come (RR 56) 47, 5 Deductions:

When taken:

All events test; accrued cooperative

average interest rate for January 1998 (Notice 9) 4, 8; February 1998 (Notice 15) 9, 8; March 1998 (Notice 18) 12, 11 ; April 1998 (Notice 26) 18, 14; May 1998 (Notice 32) 22, 23; June 1998 (Notice 33) 25, 10; July 1998 (Notice 37) 30, 13; August 1998 (Notice 44) 34, 7 ; September 1998 (Notice 48) 39, 17; October 1998 (Notice 51) 44, 11 ; November 1998 (Notice 56) 47, 9 Group health plans; COBRA continua tion coverage; HIPAA portability (Notice 12) 5, 12 Individual retirement arrangements,

Roth IRAs (Notice 49) 38, 5; (Notice 50) 44, 10 Letter rulings, etc. (RP 4) 1, 113 Limit on contributions and benefits;

cost-of-living adjustments (Notice 53) 46, 24 Limitations on benefits and contribu tions (RR 1) 2, 5 Minimum Funding Standards (RP 10)

subpart F (Notice 35) 27, 35 Identification of census tracts in District

of Columbia Enterprise Zone (Notice 57) 47, 9 Information reporting:

advertising expenses (RR 39) 33, 4 Definition of former Indian reservations

in Oklahoma (Notice 45) 35, 7 Disclosure authorization list (RP 43) 29, 8 Distribution of stock and securities of a

newly formed controlled corporation; limitations (RR 44) 37, 4 Domestic assets/liability and investment

yield percentages (RP 31) 23, 9 Education loans (Notice 7) 3, 54 Effective date of consolidated overall for eign loss provisions (Notice 40) 35, 7 Elections under section 7704(g) (Notice

12 Recovery of basis; retirees (Notice 2)

2, 35 Minimum:

Remedial amendments (RP 42) 28, 9 Net unrealized appreciation; capital

gains (Notice 24) 17, 5 Qualification (Notice 29) 22, 8 ;

Hope Scholarship and Lifetime Learn ing credits (Notice 46) 36, 21 Qualified student loan interest (Notice

54. 46, 25 Insurance companies:

CODAs (RR 30) 25, 8 Qualification:

Church plans (Notice 39) 33, 11 Covered compensation (RR 53) 46,

Differential earnings rate and recom puted differential earnings rate for mutual life insurance companies (RR 38) 32, 4 Discounting estimated salvage recover able (RP 12) 4, 18 Interest rate tables (RR 2) 2, 15 Loss reserves; discounting unpaid

losses (RP 11) 4, 9 “Reserve strengthening,” reasonable

3. 3, 48 Electronic Federal Tax Payment System:

Batch filers and bulk filers (RP 32) 17,

2, 22 Section 457 model amendments (RP

41. 32, 7 Section 457 ruling program (RP 40)

11 Electronic funds transfer; failure to de

posit penalty (Notice 30) 22, 9 Employee plans:

interpretation (Ct.D. 2065) 39, 7 International operation of ships and/or

aircraft, United Arab Emirates, 43, 6 Interest:

long-term rates for January 1998 (RR4) 2, 18 ; February 1998 (RR 7) 6, 6 ; March 1998 (RR 11) 10,

Administrative programs; closing

agreements (RP 22) 12, 11 Determination letters (RP 6) 1, 183 ;

(RP 14) 4, 22 Determination letter requests, remedial

32, 6 SIMPLE-IRAs (Notice 4) 2, 25 Technical advice (RP 5) 1, 155 User fees (RP 8) 1, 225 Enhanced oil recovery credit (Notice 41)

33, 12 Environmental cleanup costs; letter

rulings (RP 17) 5, 21

Investment:

Federal short-term, mid-term, and

amendments (RP 53) 40, 9

December 7, 1998 26 1998–49 I.R.B.

13 ; April 1998 (RR 18) 14, 22 ; May (RR 23) 18, 5; June 1998 (RR 28) 22, 5; July 1998 (RR 33) 27, 26 ; August 1998 (RR 36) 31, 6; September 1998 (RR 43) 36, 9 ; October 1998 (RR 50) 40, 7; November 1998 (RR 52) 45, 4 Rates, underpayments and overpay

Magnetic media/electronic filing:

1998 Forms 1098, 1099, 5498, and W–2G specifications (RP 35) 19, 6 Form 1040NR (RP 36) 23, 10 Marginal production rates (Notice 42) 33,

12 Methods of accounting; involuntary

changes (Notice 31) 22, 10 Package design; amortization; capitaliza tion; amortizable section 197 intangible (RP 39) 26, 36 Passive foreign investment companies:

ments (RR 17) 13, 21; calendar quarter beginning July 1, 1998 (RR 32) 25, 4; calendar quarter beginning October 1, 1998 (RR 46) 39, 10 Inventory:

Shareholders may use rules of sec.

LIFO:

Automobile and truck dealers (RP

46. 36, 21 Price indexes; department stores for

November 1997 (RR 6) 4, 4 ; December 1997 (RR 9) 6, 5; January 1998 (RR 16) 13, 18 ; February 1998 (RR 20) 15, 8 ; March 1998 (RR 26) 21, 4; April 1998 (RR 29) 24, 4; May 1998 (RR 35) 30, 4 ; June 1998 (RR 42) 35, 5; July 1998 (RR 48) 39, 6 ; August 1998 (RR 51) 43, 4; September 1998 (RR 54) 46, 14 Price indexes; inventory price com

1.1295–1T(b)(4), (f), and (g) to taxable years beginning before January 1, 1998 (Notice 22) 17, 5 Private letter rulings under sections 877,

2107, and 2501(a)(3)(Notice 34) 27, 30 Proposed regulations:

26 CFR 1.408A–0 through –9 and intermediary sections, added; Roth IRAs, questions and answers (REG–115393–98) 39, 34 26 CFR 1.417(e)–1 and paragraph (d), revised; 1.417(e)–1T and paragraph (d), revised; valuation of plan distributrions (TD 8768) 20, 4 26 CFR 1.460–6, amended; election not to apply look-back method in de minimis cases (REG–120200–97) 12, 32 26 CFR 1.469–10, revised; 1.7704–1, added; investment income, passive activity income and loss rules for publicly traded partnerships (REG–105163–97) 8, 31 26 CFR 1.475(g)–2, new; 1.482–8, added; 1.482–0, –1, –2, 1.863, 1.863–7(a)(1), 1.864–4, –6, 1.894–1, amended; 1.482–9, redesignated; global dealing operation allocation and sourcing of income and deductions among taxpayers (REG– 208299–90) 16, 26 26 CFR 1.513–7, added; travel and tour activities of tax exempt organizations (REG–121268–97) 20, 12 26 CFR 1.529–0 through –6 and intermediary sections, added; Qualified State Tuition Programs (REG– 106177–97) 37, 33 26 CFR 1.671–4, 1.6049–7, 301.6109– 1, amended; reporting requirements for widely held fixed investment trusts (REG–209813–96) 35, 9 26 CFR 1.702–1, 1.954–1, 301.7701–3, amended; 1.952–1(b), (c), redesignated 1.954–2(a)(5), (6), 1.954– 4(b)(2)(iii), 1.954–9, 1.956–2(a)(3), added (REG–104537–97) 16, 21 26 CFR 1.732–1, amended; 1.732–2, amended; 1.734–1(e), added; 1.743– 1, revised; 1.751–1, amended; 1.755–1, revised; 1.1017–1, revised; adjustments to basis of partnership property and partnership interest (REG–209682–94) 17, 20 26 CFR 1.864(b)–1; trading safe harbors (REG–106031–98) 26, 38 26 CFR 1.925(a)–1, (b)–1, added; 1.927(e)–1, amended; foreign sales corporation transfer pricing source and grouping rules (REG–102144– 98) 15, 25 26 CFR 1.936–1T, added; termination of Puerto Rico and possession tax

putation method (RP 49) 37, 9 Shrinkage estimates:

Changing method of accounting for

estimating inventory shrinkage (RP 29) 15, 22 Late election relief for S corporations (RP

55. 46, 27 Letter rulings, determination letters, and

information letters issued by Associate Chief Counsel (Domestic), Associate Chief Counsel (EBEO), Associate Chief Counsel (Enforcement Litigation), and Associate Chief Counsel (International) (RP 1) 1, 7 Lien for taxes; validity and priority against

third parties; judgment creditor (Ct.D. 2063) 36, 13 Losses attributable to a disaster during

1997 (RR 12) 10, 5 Low-income housing tax credit (Notice

13. 6, 19 ; (RP 45) 34, 8 Low-income housing credit:

HUD programs (RR 49) 40, 4 Satisfactory bond; “bond factor”

amounts for the period October through December 1997 (RR 3) 2, 4; January–March 1998 (RR 13) 11, 4; April-June 1998 (RR 31) 25, 4; JulySeptember 1998 (RR 45) 38, 4

26 CFR 1.32–3, added; EIC eligibility requirements (REG–116608–97) 29, 12 26 CFR 1.62–2(e)(2), revised; 1.62–2T, removed; 1.274–5, added; –5T, 1.274(d)–1, amended; substantiation of business expenses, use of mileage rates to substantiate automobile expenses (REG–122488–97) 42, 19 26 CFR 1.72(p)–1, amended; loans to plan participants (REG–209476–82) 8, 36 26 CFR 1.83–6, 1.1032–2, amended; 1.1032–3, added; treatment of a disposition by one corporation of the stock of another corporation in a taxable transaction (REG–106221–98) 41, 10 26 CFR 1.141–7, 1.142(f)(4)–1, 1.150– 5, added; 1.141–8, –15, amended; obligations of states and political subdivisions (REG–110965–97) 13, 42 26 CFR 1.195–1, added; election to amortize start-up expenditures (REG–209373–81) 14, 26 26 CFR 1.356–6, added; reorganizations, nonqualified preferred stock (REG–121755–97) 9, 13 26 CFR 1.368–1, amended; corporate reorganizations, continuity of interest (REG–120882–97) 14, 25 26 CFR 1.401(a)(9)–1, amended; qualified plans and individual retirement plans, required distributions (REG– 209463–82) 4, 27

1998–49 I.R.B. 27 December 7, 1998

credit, new lines of business prohibited (REG–115446–97) 36, 23 26 CFR 1.985–8, 1.1001–5, added; conversion to the euro (REG– 110332–98) 33, 18 26 CFR 1.1092(c)–1, added; equity options without standard terms, special rules and definitions (REG–104641– 97) 29, xx 26 CFR 1.1291–1, 1.1293–1, 1.1295–1, –3, 1.1297–3(c), added; 1.1296–4, amended; passive foreign investment company preferred shares, special income exclusion (REG–115795– 97) 8, 33 26 CFR 1.1361–0, amended; 1.1361–1, amended; 1.1361–1(d)(3), removed; 1.1361–2 through –6 and intermediary sections, added; 1.1362–0, amended; 1.1362–2, amended; 1.1362–8, added; 1.1368–0, amended; 1.1368–2(d)(2), amended; 1.1374–8(b), amended; S corporation subsidiaries (REG–251698–96) 20, 14 26 CFR 1.1366–1, –2, removed; 1.1366–0 through –5 and intermediary sections, added; 1.1367–0, –1, amended; 1.1367–3, removed; 1.1368–0, –1, –2, –3, amended; 1.1368–4, revised; pass through of items of an S corporation to its shareholders (REG–209446– 82) 36, 24 26 CFR 1.1397E–1, added; qualified zone academy bonds (REG– 119449–97) 10, 35 26 CFR 1.1502–3(c), revised; 1.1502– 4(f)(3), (g)(3), added; 1.1502–9(b)(1)(v), added; 1.1502–21(c)(1)(iii), amended; consolidated returns, limitations on the use of certain losses and credits (REG–104062–97) 10, 34 26 CFR 1.6031–1, removed; 1.6031(a)– 1, added; 1.6063–1, amended; partnership returns (REG–209322–82) 15, 26 26 CFR 1.6031(a)–1(e)(1)(iv), added; 301.6011–3, added; 301.6031–1, revised; 301.6721–1, amended; partnership returns required on magnetic media (REG–102023–98) 48, 6 26 CFR 1.6038B–1, amended; 1.6038B– 2, added; reporting of certain transfers to foreign corporations and foreign partnerships (REG– 118926–97) 39, 23

26 CFR 1.32–3T, added; EIC eligibility requirements (TD 8773) 29, 4 26 CFR 1.61–12, 1.249–1, 1.1016–5, 1.1275–1, amended; 1.163–13, 1.171–5, added; 1.171–1, –2, –3, –4, revised; 1.1016–9, removed; amortizable bond premium (TD 8746) 7, 4

26 CFR 1.6038–3, added; information returns for certain foreign partnerships (REG–118966–97) 39, 29 26 CFR 1.6046A–1, added; return requirement for U.S. persons owning interests in foreign partnerships (REG–209060–86) 39, 18 26 CFR 1.7702B–1, –2, added; qualified long-term care insurance contracts (REG–109333–97) 9, 9 26 CFR 54.9811–1, added; HIPAA Newborns’ and Mothers’ Health Protection Act (REG–109708–97) 45, 29 26 CFR 54.9812–1, added; mental health parity; HIPAA (REG– 109704–97) 3, 60 26 CFR 301.6159–1, amended; agreements for tax liability installment payments (REG–100841–97) 8, 30 26 CFR 301.6402–5(h), added; –6(n), revised; tax refund offset program (REG–104565–97) 39, 21 26 CFR 301.6404–2, added; abatement of interest (REG–209276–87) 11, 18 26 CFR 301.7433–1(a), (d), (e), and (f), revised; civil cause of action for certain unauthorized collection actions (REG–251502–96) 9, 14 Qualified Funeral Trust; guidance (Notice

6. 3, 52 Qualified intermediary agreements:

Guidance provided to foreign financial

institutions (RP 27) 15, 15 Qualified mortgage bonds, mortgage

credit certificates: Guidance provided regarding use of na

tional and area median gross income figures by issuers (RP 28) 15, 14 Qualified offer rule; award of administra tive and litigation costs (Notice 55) 46, 26 Qualified Subchapter S Trust (QSST)

conversion to Electing Small Business Trust (ESBT) 10, 30 Qualified Zone Academy Bonds (RP) 3,

100; limitations for 1999 (RP 57) 48, 5 Real estate transactions (RP 20) 7, 32 Regulations:

26 CFR 1.108–4, added; 1.108(c)–1, redesignated; 1.108–6, added; 1.108(a)–1, –2, –(b)–1, 1.1016–7, –8, removed; 1.1017–1, revised; 1.1017–2, removed; 301.9100–13T, removed; basis reduction due to discharge of indebtedness (TD 8787) 46, 5 26 CFR 1.141–0, –2, amended; 1.141–7, –8, removed; 1.141–7T, –8T, –15T, 1.142(f)(4)–1T, 1.150– 5T, added; 1.141–15, revised; obligations of states and political subdivisions (TD 8757) 13, 4 26 CFR 1.166–3(a)(3), 1.1001–4, added; 1.166–3T, 1.1001–4T, removed; modifications of bad debts and dealer assignments of notional principal contracts (TD 8763) 15, 5 26 CFR 1.280B–1, added; building demolition, definition of structure (TD 8745) 7, 15 26 CFR 1.338–2, 1.368–1, –2, amended; 1.368–1T, added; corporate reorganizations, continuity of interest, and continuity of business enterprise (TD 8760) 14, 4 ; (TD 8761) 14, 13 26 CFR 1.354–1, 1.355–1, 1.356–3, amended; reorganizations, treatment of warrants as securities (TD 8752) 9, 4 26 CFR 1.356–6T, added; reorganizations, nonqualified preferred stock (TD 8753) 9, 6 26 CFR 1.367(a)–1T, –3, amended; 1.367(a)–3T, removed; 1.367(a)–8, 1.367(b)–1, –4, added; 1.367(d)–1T, amended; 1.6038B–1, added; 1.6038B–1T; 7.367(b)–1, –4, –7, amended; certain transfers of stock or securities by U.S. persons to foreign corporations (TD 8770) 27, 4 26 CFR 1.368–1(e)(6), revised; continuity of interest requirement for corporate reorganizations (TD 8783) 41, 4 26 CFR 1.411(d)–4, amended; permitted elimination of preretirement optional forms of benefit (TD 8769) 28, 4 26 CFR 1.446–1, amended; 1.446–1T, removed; 301.9100–0, added; 301.9100–1, revised; 301.9100–2, –3, added; 301.9100–1T, –2T, –3T; removed extensions of time to make elections (TD 8742) 5, 4

December 7, 1998 28 1998–49 I.R.B.

26 CFR 1.453.11; installment obligations received from liquidating corporations (TD 8762) 14, 15 26 CFR 1.460–0, amended; 1.460–6T, added; election not to apply lookback method in de minimis cases (TD 8756) 12, 4 26 CFR 1.460–6T, removed; 1.460–6(i), (j), added; election not to apply look-back method in de min- imis cases (TD 8775) 31, 4 26 CFR 1.465–27, added; qualified nonrecourse financing under section 465(b)(6) (TD 8777) 34, 4 26 CFR 1.468A–2, –3, –8, amended; nuclear decommissioning funds; revised schedules of ruling amounts (TD 8758) 13, 15 26 CFR 1.861–18, added; classification of certain transactions involving computer programs (TD 8785) 42, 5 26 CFR 1.863–3, revised; 1.936–4, –5, –6, –7, removed; 1.863–3(f), (h), amended; 1.936–6(a)(5) Q and A 7a, added; source of income from sales of inventory (TD 8786) 44, 4 26 CFR 1.904–5(o), 1.904–5T, 1.954– 0(b), 1.954–1, amended; 1.954–1T, –2T, –9T, added; 301.7701–3(f)(1), amended; controlled foreign corporation relating to partnerships and branches (TD 8767) 16, 4 26 CFR 1.905–2, amended; foreign tax credit filing requirements (TD 8759) 13, 19 26 CFR 1.925(a)–1T, 1.925(b)– 1T(b)(3)(i), amended; 1.927(e)–1T, revised; foreign sales corporation transfer pricing source and grouping rules (TD 8764) 15, 9 26 CFR 1.927(e)–1T, removed; 1.927(e)(1), added; source rules for foreign sales corporation transfer pricing (TD 8782) 41, 5 26 CFR 1.936–11T, added; termination of Puerto Rico and possession tax credit; new lines of business prohibited (TD 8778) 36, 4 26 CFR 1.985–1, –5(a), amended; 1.985–7, added; dollar approximate separate transactions method of accounting (DASTM) to profit and loss method of accounting, change from P&L method to DASTM (TD 8765) 16, 11

26 CFR 1.1271–1, 1.1275–1, amended; debt instruments with original issue discount, annuity contracts (TD 8754) 10, 15 26 CFR 1.1202–0, –2, added; qualified small business stock (TD 8749) 7, 16 26 CFR 1.1290–0, amended; 1.1294–0, added; a. 1291–0T, amended; 1.1291–1T, added; 1.1291–9, amended; 1.1293–0, –1T, added; 1.1295–0, –1T, –3T, 1.1297–3T(c), added; passive foreign investment company preferred shares, special income exclusion (TD 8750) 8, 4 26 CFR 1.1396–1; empowerment zone employment credit, qualified zone employees (TD 8747) 7, 18 26 CFR 1.1397E–1T, added; qualified zone academy bonds (TD 8755) 10, 21 26 CFR 1.1502–3, –4, –9(a), –21T(c)(1)(iii), amended; 1.1502– 3T, –4T, –9T, –55T, added; 1.1502– 23T(b), (c), redesignated; consolidated returns, limitations on the use of certain losses and credits, overall foreign loss accounts (TD 8751) 10, 23 26 CFR 54.9801–1T, amended; –2, revised; 54.9811–1T, added; 54.9831– 1T(b)(1), revised; interim rules for group health plans and health insurance issuers under the Newborns’ and Mothers’ Health Protection Act (TD 8788) 45, 6 26 CFR 54.9801–2T, amended; 54.9801–4T, –5T, revised; 54.9804– 1T, redesignated; 54.9806–1T, redesignated; 54.9812–1T, added; mental health parity, interim rules (TD 8741) 3, 6 26 CFR 301.7623–1, revised; 301.7623–1T, removed; rewards for information relating to violations of internal revenue laws (TD 8780) 39, 14 Relocation payments:

calendar year 1998 inflation adjustment factor and reference prices. (Notice 27) 18, 14

Reorganizations; exchange of securities

(RR 10) 10, 1 1 Reproduction of Forms 1096, 1098, 1099,

5498, and W–2G (RP 37) 26, 6 Rescission of notice deficiency (RP 54)

43, 7 Residential rental property, exempt facili

ty bond (RR 47) 39, 4 Rulings:

Areas in which advance rulings will not

be issued:

Associate Chief Counsel (Domes tic), Associate Chief Counsel (EBEO) (RP 3) 1, 100 Associate Chief Counsel (Interna

tional) (RP 7) 1, 222 Obsolete (RR 37) 32, 5 Rural airports (RP 18) 6, 20 Sales or exchanges:

Qualified small business stock (RP 48)

Authorized by sec. 105(a)(11) of Hous

38, 7 Section 1374 no-rule (RP 56) 46, 33 Social security benefits under U.S. Canada treaty, recent changes (Notice 23) 18, 9 Specifications for filing Form 1042–S

(RP 44) 32, 11 Spin-off of subsidiary (RR 27) 22, 4 SRLY notice (Notice 38) 34, 7 Technical advice to district directors and

chiefs, appeals offices, Associate Chief Counsel (Domestic), Associate Chief Counsel (EBEO), Associate Chief Counsel (Enforcement Litigation), and Associate Chief Counsel (International) (RP 2) 1, 74 Tentative differential earnings rate for

1997 (Notice 19) 13, 24 Timely filing or payment; private delivery

services (Notice 47) 37, 8 Treatment of hybrid arrangements under

subpart F (Notice 11) 6, 18 Trust, election to treat U.S. person;

domestic trust (Notice 25) 18, 11 Waiver of period of stay in foreign coun

try (RP 38) 27, 29 Withholding regulations:

ing and Community Development Act, not includible in gross income (RR 19) 15, 5 Renewable electricity production credit;

Effective date of sec. 1441 withholding

regulations amended (Notice 16) 15, 12

1998–49 I.R.B. 29 December 7, 1998

December 7, 1998 30 1998–49 I.R.B.