Part I. Rulings — Internal Revenue Bulletin 1999-10

Section 42.—Low-Income Housing Credit

The adjusted applicable federal short-term, midterm, and long-term rates are set forth for the month of March 1999. See Rev. Rul. 99–11, page 18.

Section 165.—Losses

26 CFR 1.165–11: Election in respect of losses attributable to a disaster.

Insurance companies; interest rate tables. Prevailing state assumed interest rates are provided for the determination of the reserves under section 807 of the Code for contracts issued in 1998 and 1999. Rev. Rul. 92–19 supplemented in part.

Rev. Rul. 99–13

Under § 165(i) of the Internal Revenue Code, if a taxpayer suffers a loss attributable to a disaster occurring in an area subsequently determined by the President of

the United States to warrant assistance by the Federal Government under the Disaster Relief and Emergency Assistance Act, 42 U.S.C. §§ 5121–5204c (1988 & Supp. V 1993) (the Act), the taxpayer may elect to claim a deduction for that loss on the taxpayer’s federal income tax return for the taxable year immediately preceding the taxable year in which the disaster occurred.

Section 1.165–11(e) of the Income Tax Regulations provides that the election to deduct a disaster loss for the preceding year must be made by filing a return, an amended return, or a claim for refund on or before the later of (1) the due date of the taxpayer’s income tax return (determined without regard to any extension of time to file the return) for the taxable year in which the disaster actually occurred, or (2) the due date of the taxpayer’s income tax return (determined with regard to any extension of time to file the return) for the taxable year immediately preceding the

taxable year in which the disaster actually occurred.

The provisions of § 165(i) apply only to losses that are otherwise deductible under § 165(a). An individual taxpayer may deduct losses if they are incurred in a trade or business, if they are incurred in a transaction entered into for profit, or if they are casualty losses under § 165(c)(3).

The President has determined that during 1998 the areas listed below have been adversely affected by disasters of sufficient severity and magnitude to warrant assistance by the Federal Government under the Act.

DRAFTING INFORMATION

The principal author of this revenue ruling is Timothy Sheppard of the Office of Assistant Chief Counsel (Income Tax and Accounting). For further information regarding this revenue ruling, contact Mr. Sheppard on (202) 622-4960 (not a tollfree call).

Disaster Areas Type of Date of in 1998 Disaster Disaster

Alabama

Counties of Barbour, Butler, Coffee, Conecuh, Covington, Severe storms March 7-21, 1998 Crenshaw, Dale, Escambia, Geneva, Henry, Houston, and and flooding Randolph

Counties of Covington, Cullman, Jefferson, St. Clair, Tuscaloosa, Severe storms April 8-20, 1998 and Walke and tornadoes

Counties of Baldwin, Butler, Choctaw, Clarke, Coffee, Conecuh, Hurricane September 25Covington, Crenshaw, Escambia, Geneva, Lowndes, Mobile, Georges October 6, 1998 Monroe, and Washington

California

Counties of Alameda, Amador, Butte, Calaveras, Colusa, Severe winter February 2Contra Costa, Del Norte, Fresno, Glenn, Humboldt, Kern, Lake, storms and April 30, 1998 Los Angeles, Marin, Mendocino, Merced, Monterey, Napa, Orange, flooding Riverside, Sacramento, San Benito, San Bernadino, San Diego, San Francisco, San Joaquin, San Luis Obispo, San Mateo, Santa Barbara, Santa Clara, Santa Cruz, Solano, Sonoma, Stanislaus, Sutter, Tehama, Trinity, Tulare, Ventura, Yolo, and Yuba

Delaware

County of Sussex Severe winter January 28storms, high winds, February 6, 1998 and flooding

March 8, 1999 4 1999–10 I.R.B.

Florida

Counties of Alachua, Baker, Bay, Bradford, Brevard, Severe storms, December 25, 1997Broward, Calhoun, Citrus, Clay, Collier, Columbia, DeSoto, high winds, tornadoes, April 24, 1998 Dixie, Duval, Escambia, Flagler, Franklin, Gadsden, Gilchrist, and flooding Glades, Gulf, Hamilton, Hardee, Hernando, Highlands, Hillsborough, Holmes, Jackson, Lafayette, Lake, Levy, Liberty, Madison, Manatee, Marion, Nassau, Okaloosa, Okeechobee, Orange, Osceola, Pasco, Pinellas, Polk, Putnam, Santa Rosa, Sarasota, Seminole, St. Johns, Sumter, Suwannee, Taylor, Union, Volusia, Walton, and Washington

Counties of Broward, Dade, and Monroe Severe storms, high February 2-4, 1998 winds, tornadoes, and flooding

Counties of Alachua, Baker, Bay, Bradford, Brevard, Broward, Extreme fire hazards May 25-July 22, 1998 Calhoun, Charlotte, Citrus, Clay, Collier, Columbia, Dade, DeSoto, Dixie, Duval, Escambia, Flagler, Franklin, Gadsden, Gilchrist, Glades, Gulf, Hamilton, Hardee, Hendry, Hernando, Highlands, Hillsborough, Holmes, Indian River, Jackson, Jefferson, Lafayette, Lake, Lee, Leon, Levy, Liberty, Madison, Manatee, Marion, Martin, Monroe, Nassau, Okaloosa, Okeechobee, Orange, Osceola, Palm Beach, Pasco, Pinellas, Polk, Putnam, Santa Rosa, Sarasota, St. Johns, St. Lucie, Seminole, Sumter, Suwannee, Taylor, Union, Volusia, Wakulla, Walton, and Washington

Counties of Bay, Dixie, Franklin, Gulf, Taylor, and Wakulla Hurricane Earl September 3, 1998

Counties of Bay, Calhoun, Columbia, Escambia, Franklin, Gadsden, Hurricane Georges September 25Gulf, Holmes, Jackson, Jefferson, Liberty, Monroe, Okaloosa, October 7, 1998 Santa Rosa, Suwannee, Walton, and Washington

Counties of Monroe and Palm Beach Tropical Storm Mitch November 4-5, 1998

Georgia

Counties of Appling, Atkinson, Bacon, Baldwin, Baker, Barrow, Severe storms and February 14Bartow, Ben Hill, Berrien, Bibb, Bleckley, Brantley, Brooks, Bryan, flooding May 11, 1998 Bulloch, Burke, Butts, Calhoun, Candler, Carroll, Charlton, Chatham, Cherokee, Clay, Clayton, Clinch, Cobb, Coffee, Colquitt, Columbia, Cook, Crawford, Crisp, Dade, Dawson, DeCatur, Dekalb, Dodge, Dooly, Dougherty, Douglas, Early, Echols, Effingham, Emanuel, Evans, Floyd, Forsyth, Fulton, Glynn, Gordon, Grady, Gwinnett, Habersham, Hall, Haralson, Heard, Henry, Houston, Irwin, Jeff Davis, Jefferson, Jenkins, Johnson, Jones, Lamar, Lanier, Laurens, Lee, Liberty, Lincoln, Long, Lowndes, Lumpkin, Macon, McIntosh, Miller, Mitchell, Monroe, Montgomery, Murray, Muscogee, Newton, Paulding, Peach, Pickens, Pike, Pulaski, Quitman, Rabun, Randolph, Richmond, Rockdale, Screven, Seminole, Spalding, Stewart, Sumter, Talbot, Tattnall, Telfair, Terrell, Thomas, Tift, Toombs, Towns, Treutlen, Turner, Twiggs, Union, Walker, Ware, Wayne, Webster, Wheeler, White, Wilcox, Wilkinson, and Worth

Indiana

Counties of Benton, Jasper, Lake, LaPorte, Newton, Porter, Severe storms, tornadoes June 11-Jully7, 1998 Pulaski, Saint Joseph, and Starke and flooding

1999–10 I.R.B. 5 March 8, 1999

Counties of Benton, Clay, Crawford, Fayette, Franklin, Gibson, Severe storms, tornadoes, June 11-July 7, 1998 Greene, Howard, Knox, Lawrence, Madison, Miami, Monroe, and flooding Montgomery, Orange, Owen, Parke, Pike, Putnam, Rush, Sullivan, Union, Vigo, Wayne, and Warren

Iowa

Counties of Adair, Allamakee, Appanoose, Audubon, Benton, Severe storms, tornadoes, June 14, 1998Black Hawk, Boone, Buchanan, Buena Vista, Butler, Calhoun, and flooding July 15, 1998 Carroll, Cass, Cedar, Cerro Gordo, Chickasaw, Clarke, Clay, Clayton, Clinton, Crawford, Dallas, Davis, Decatur, Delaware, Des Moines, Dickinson, Emmet, Fayette, Floyd, Franklin, Fremont, Greene, Grundy, Guthrie, Hamilton, Hancock, Hardin, Harrison, Henry, Howard, Humboldt, Iowa, Jasper, Jefferson, Johnson, Keokuk, Kossuth, Lee, Linn, Louisa, Lucas, Madison, Mahaska, Marion, Marshall, Mills, Monona, Montgomery, Muscatine, Osceola, Page, Palo Alto, Pocahontas, Polk, Pottawattamie, Poweshiek, Ringgold, Sac, Shelby, Story, Tama, Taylor, Union, Wapello, Warren, Washington, Webster, Winnebago, Winneshiek, and Wright

Kansas

Counties of Bourbon, Cherokee, Douglas, Franklin, Jackson, Severe storms, flooding, October 1-8, 1998 Jefferson, Johnson, Leavenworth, Linn, Seward, Wabaunsee, and tornadoes and Wyandotte

Counties of Butler, Chase, Coffey, Cowley, Douglas, Franklin, Severe storms and October 30Greenwood, Harper, Harvey, Johnson, Leavenworth, Lyon, flooding November 15, 1998 Marion, Neosho, Saline, Sedgwick, Sumner, Wilson, Woodson, and Wyandotte

Kentucky

Counties of Adair, Bath, Boyle, Breathitt, Carter, Casey, Clark, Severe winter storm February 4-6, 1998 Clay, Clinton, Elliott, Estill, Fleming, Garrard, Greenup, Jackson, Johnson, Knox, Laurel, Lawrence, Lee, Lewis, Lincoln, Madison, Magoffin, McCreary, Menifee, Mercer, Montgomery, Morgan, Nicholas, Owsley, Powell, Pulaski, Robertson, Rockcastle, Rowan, Russell, Wayne, Whitley, and Wolfe

Counties of Adair, Barren, Bell, Breathitt, Casey, Clay, Floyd, Severe storms, tornadoes, April 16Johnson, Knott, Knox, Lawrence, Lee, Leslie, Letcher, Magoffin, and flooding May 10, 1998 Metcalfe, Owsley, Perry, Pike, Warren, and Whitley

Louisiana

Parishes of Acadia, Ascension, Assumption, Baptist, Cameron, Tropical Storm Frances September 9Evangeline, Jefferson, Lafourche, Livingston, Orleans, Plaquemines, and Hurricane Georges October 4, 1998 St. Bernard, St. Charles, St. James, St. John, St. Martin, St. Mary, St. Tammany, Tangipahoa, Terrebone, Vermilion, and Washington

Maine

Counties of Androscoggin, Aroostook, Cumberland, Franklin, Severe ice storms, rain, January 5-25, 1998 Hancock, Kennebec, Knox, Lincoln, Penobscot, Piscataquis, Oxford, and heavy winds Sagadahoc, Somerset, Waldo, Washington, and York

Counties of Androscoggin, Franklin, Kennebec, Oxford, Severe storms and June 13-July 1, 1998 Somerset, and York flooding

March 8, 1999 6 1999–10 I.R.B.

Marshall Islands

Ailinglaplap, Ailuk, Arno, Aur, Bikini, Ebeye, Ebon, Enewetak, Severe drought January 17-June 30, 1998 Jabat, Jaluit, Kili, Kwajalein, Lae, Lib, Likiep, Majuro, Maloelap, Mejit, Mili, Namorik, Namu, Ujae, Utrik, Wotho, and Wotje

Massachusetts

Counties of Bristol, Essex, Middlesex, Norfolk, Plymouth, Heavy rains and June 13-July 6, 1998 Suffolk, and Worcester flooding

Michigan

Counties of Bay, Clinton, Gratiot, Ionia, Kent, Mason, Montcalm, Severe storms and May 31, 1998 Newaygo, Oceana, Ottawa, Saginaw, and Shiawassee straight-line winds

County of Muskegon Severe storms and May 29-31, 1998 straight-line winds

Counties of Macomb and Wayne Severe storms and July 21-22, 1998 high winds

Micronesia

State of Chuuk: Eot, Ettal, Etten, Fanapanges, Fefen, Fonanu, Severe drought January 25Fono, Houk, Kuttu, Lekinioch, Losap, Makur, Moch, Murillo, June 30, 1998 Nama, Namoluk, Nomwin, Oneop, Onou, Onoun, Paata, Parem, Piherach, Piis-Emwar, Piis-Paneu, Pollap, Polle, Polowat, Romanum, Ruo, Satowan, Siis, Ta, Tetiw, Tol, Tomatam, Tonoas, Udot, Uman, Unanu, Weno, and Wonei. State of Phonpei: the areas of Kipingamarangi, Mwoakilloa, Nukuoro, Oroluk, Pakin, Pingelap, and Sapwuahfik. State of Yap: Eauripik, Elato, Fais, Faraulap, Ifalik, Lamotrek, Ngulu, Satawal, Sorol, Ulithi, Wolei, and Yap Proper.

Minnesota

Counties of Blue Earth, Brown, Cottonwood, LaSueur, Nicollet, Severe storms and March 29, 1998 Nobles, and Rice tornadoes

Counties of Anoka, Blue Earth, Carver, Dakota, Faribault, Severe storms, May 15Fillmore, Freeborn, Goodhue, Hennepin, Houston, Jackson, straight-line winds, and June 28, 1998 Mower, Olmsted, Ramsey, Rice, Scott, Wabasha, Washington, tornadoes and Winona

Mississippi

Counties of Covington, Forrest, George, Greene, Hancock, Hurricane Georges September 25Harrison, Jackson, Jasper, Jefferson Davis, Jones, Lamar, October 5, 1998 Marion, Pearl River, Perry, Pike, Stone, and Wayne

Missouri

Counties of Jackson and St. Louis; and City of St. Louis Severe storms and July 10-31, 1998 flooding

Counties of Andrew, Barton, Caldwell, Carroll, Cedar, Chariton, Severe storms and October 4-11, 1998 Clay, Dade, DeKalb, Jackson, Linn, Livingston, Macon, Miller, flooding Moniteau, Morgan, Platte, Polk, and Ray

New Hampshire

Counties of Belknap, Carroll, Cheshire, Coos, Grafton, Severe ice storms, rain, January 7-25, 1998 Hillsborough, Merrimack, Stafford, and Sullivan and high winds

1999–10 I.R.B. 7 March 8, 1999

Counties of Belknap, Carroll, Grafton, Hillsborough, Severe storms and July 12-July 2, 1998 Merrimack, Rockingham, and Sullivan flooding

New Jersey

Counties of Atlantic, Cape May, and Ocean Severe winter coastal February 4-9, 1998 storm, high winds, and flooding

New York

Counties of Clinton, Essex, Franklin, Genessee, Jefferson, Severe winter and ice January 5-17, 1998 Lewis, Monroe, Niagara, Saratoga, and St. Lawrence storms, high winds, and flooding

Counties of Broome, Chenango, Otsego, Rensselaer, Saratoga, Severe thunderstorms May 31-June 2, 1998 and Wyoming and tornadoes

Counties of Allegany, Cattaraugus, Clinton, Delaware, Erie, Severe storms and June 25-July 10, 1998 Essex, Franklin, Genesee, Livingston, Monroe, Steuben, flooding Sullivan, Tioga, Tompkins, and Wyoming

Counties of Cayuga, Fulton, Herkimer, Madison, Monroe, Severe storms and September 7, 1998 Nassau, Oneida, Onondaga, Ontario, Orleans, and Wayne high winds

North Carolina

Counties of Ashe, Avery, Dare, Haywood, Madison, Mitchell, Severe storms and January 7Robeson, Transylvania, Watauga, and Yancey flooding February 12, 1998

Counties of Durham, Edgecombe, Lenoir, Nash, Rockingham, Severe storms, tornadoes, March 20Wake, and Wayne and flooding April 1, 1998

Counties of Beaufort, Bertie, Bladen, Brunswick, Camden, Hurricane Bonnie August 25Carteret, Chowan, Columbus, Craven, Cumberland, Currituck, September 1, 1998 Dare, Duplin, Greene, Hyde, Jones, Lenoir, Martin, New Hanover, Onslow, Pamlico, Pasquotank, Pender, Perquimans, Pitt, Robeson, Sampson, Tyrrell, Washington, and Wayne

North Dakota

Counties of Barnes, Benson, Cass, Dickey, LaMoure, Nelson, Flooding ground March 2-July Pembina, Pierce, Ramsey, Ransom, Richland, Rolette, Sargent, saturation, and severe 18, 1998 Stutsman, Towner, Walsh; and Indian Reservations of the Spirit storms Lake Sioux Tribe and the Turtle Mountain Band of Chippewa

Northern Mariana Islands

Island of Rota Typhoon Paka and December 16-17, 1998 associated torrential rains

Ohio

Counties of Athens, Belmont, Coshocton, Franklin, Guernsey, Severe storms, flooding, June 24-July 5, 1998 Harrison, Holmes, Jackson, Jefferson, Knox, Meigs, Monroe, and tornadoes Morgan, Morrow, Muskingum, Noble, Ottawa, Perry, Pickaway, Richland, Sandusky, Tuscarawas, and Washington

Oregon

County of Crook Flooding May 28-June 3, 1998

Pennsylvania

Counties of Allegheny, Beaver, Berks, Pike, Susquehanna, Severe storms, tornadoes May 31-June 2, 1998 Somerset, and Wyoming and flooding

March 8, 1999 8 1999–10 I.R.B.

Puerto Rico

All municipios Hurricane Georges September 20October 27, 1998

South Carolina

County of Horry Hurricane Bonnie August 25September 1, 1998

South Dakota

Counties of Brown, Clark, Codington, Day, Hanson, Marshall, Flooding, severe storms, April 25-June 22, 1998 McCook, Roberts, and Spink and tornadoes

Tennessee

Counties of Bledsoe, Bradley, Campbell, Cannon, Carter, Chester, Severe storms and January 6Clay, Cocke, Crockett, Cumberland, DeKalb, Fentress, Gibson, flooding February 12, 1998 Greene, Grundy, Hawkins, Haywood, Jackson, Jefferson, Johnson, Madison, Meigs, Morgan, Overton, Pickett, Polk, Putnam, Rhea, Roane, Scott, Sequatchie, Sevier, Sullivan, Tipton, Unicoi, Van Buren, Warren, Washington, and White

Counties of Anderson, Blount, Bradley, Campbell, Carroll, Severe storms, tornadoes, April 16-May 18, 1998 Cheatham, Claiborne, Crockett, Davidson, Dickson, Dyer, Gibson, and flooding Giles, Grainger, Hamblen, Hancock, Hardin, Hawkins, Humphreys, Jackson, Jefferson, Knox, Lauderdale, Lawrence, Loudon, Macon, Madison, Maury, Monroe, Morgan, Pickett, Polk, Rhea, Roane, Robertson, Scott, Sevier, Shelby, Sumner, Union, Wayne, Williamson, and Wilson

Counties of Lawrence and Lewis Flooding and severe July 13-July 28, 1998 storms

Texas

Counties of Edwards, Kimble, Kinney, Maverick, Real, Tropical Storm Charley August 22-31, 1998 Uvalde, Val Verde, and Webb

Counties of Brazoria, Galveston, Harris, Jefferson, and Severe storms and September 9Matagorda flooding associated with October 5, 1998 Tropical Storm Frances

Counties of Austin, Atascosa, Bastrop, Bexar, Blanco, Brazoria, Severe storms, flooding, October 17Burleson, Caldwell, Calhoun, Colorado, Comal, DeWitt, Fayette, and tornadoes November 15, 1998 Fort Bend, Galveston, Goliad, Gonzales, Grimes, Guadalupe, Harris, Hays, Jackson, Jefferson, Jim Wells, Karnes, Kendall, Lavaca, Liberty, Matagorda, Medina, Montgomery, Nueces, Polk, Refugio, San Jacinto, San Patricio, Travis, Trinity, Victoria, Walker, Waller, Wharton, and Wilson

U.S. Virgin Islands

Islands of St. Croix, St. John, St. Thomas, and Water Island Hurricane Georges September 19-22, 1998

Vermont

Counties of Addison, Chittenden, Franklin, Grand Isle, Orange, Severe ice storms, rain, January 6-16, 1998 and Windsor high winds, and flooding

Counties of Addison, Caledonia, Chittenden, Essex, Franklin, Severe storms and June 17-August Lamoille, Orange, Orleans, Rutland, Washington, and Windsor flooding 17, 1998

1999–10 I.R.B. 9 March 8, 1999

Virginia

Cities of Chesapeake, Norfolk, Portsmouth, Suffolk, and Hurricane Bonnie August 25Virginia Beach September 1, 1998

Washington

Counties of Ferry and Stevens Severe storms and May 26-29, 1998 flooding

City of Kelso (Cowlitz County), specifically the Aldercrest-Banyon Landslide March 6-November subdivision 19, 1998

West Virginia

Counties of Braxton, Cabell, Calhoun, Clay, Doddridge, Gilmer, Severe storms, June 26-July 27, 1998 Harrison, Jackson, Kanawha, Lewis, Marion, Marshall, Ohio, flooding, and Pleasants, Ritchie, Roane, Tyler, Webster, Wetzel, Wirt, and Wood tornadoes

Wisconsin

Counties of Buffalo, Clark, Crawford, Dunn, Grant, Jackson, Severe storms, June 18-30, 1998 La Crosse, Monroe, Pepin, Pierce, Richland, St. Croix, Trempealeau, straight-line winds, and Vernon tornadoes, heavy rain, and flooding

Counties of Milwaukee, Racine, Rock, Sheboygan, and Waukesha Severe storms and August 5-15, 1998 flooding

Section 280G.—Golden Parachute Payments

Federal short-term, mid-term, and long-term rates are set forth for the month of March 1999. See Rev. Rul. 99–11, page 18.

Section 382.—Limitation on Net Operating Loss Carryforwards and Certain Built-In Losses Following Ownership Change

The adjusted federal long-term rate is set forth for the month of March 1999. See Rev. Rul. 99–11, page 18.

Section 412.—Minimum Funding Standards

The adjusted applicable federal short-term, midterm, and long-term rates are set forth for the month of March 1999. See Rev. Rul. 99–11, page 18.

Section 467.—Certain Payments for the Use of Property or Services

The adjusted applicable federal short-term, midterm, and long-term rates are set forth for the month of March 1999. See Rev. Rul. 99–11, page 18.

Section 468.—Special Rules for Mining and Solid Waste Reclamation and Closing Costs

The adjusted applicable federal short-term, midterm, and long-term rates are set forth for the month of March 1999. See Rev. Rul. 99–11, page 18.

Section 482.—Allocation of Income and Deductions Among Taxpayers

Federal short-term, mid-term, and long-term rates are set forth for the month of March 1999. See Rev. Rul. 99–11, page 18.

Section 483.—Interest on Certain Deferred Payments

The adjusted applicable federal short-term, midterm, and long-term rates are set forth for the month of March 1999. See Rev. Rul. 99–11, page 18.

Section 642.—Special Rules for Credits and Deductions

Federal short-term, mid-term, and long-term rates are set forth for the month of March 1999. See Rev. Rul. 99–11, page 18.

Section 807.—Rules for Certain Reserves

The adjusted applicable federal short-term, midterm, and long-term rates are set forth for the month of March 1999. See Rev. Rul. 99–11, page 18.

Insurance companies; interest rate tables. Prevailing state assumed interest rates are provided for the determination of reserves under section 807 of the Code for contracts issued in 1998 and 1999. Rev. Rul. 92–19 supplemented in part.

Rev. Rul. 99–10

For purposes of § 807(d)(4) of the Internal Revenue Code, for taxable years beginning after December 31, 1997, this ruling supplements the schedules of prevailing state assumed interest rates set forth in Rev. Rul. 92–19, 1992–1 C.B. 227. This information is to be used by insurance companies in computing their reserves for (1) life insurance and supplementary total and permanent disability benefits, (2) individual annuities and pure endowments, and (3) group annuities and pure endowments. As § 807(d)(2)(B) requires that the interest rate used to compute these reserves be the greater of (1) the applicable federal interest rate, or (2) the prevailing state assumed interest rate,

March 8, 1999 10 1999–10 I.R.B.

the table of applicable federal interest rates in Rev. Rul. 92–19 is also supplemented.

Following are supplements to schedules A, B, C, and D to Part III of Rev. Rul. 92–19, providing prevailing state assumed interest rates for insurance products with different features issued in 1998 and 1999, and a supplement to the table in