Internal Revenue Bulletin 1999-45

Official source: Internal Revenue Bulletin (https://www.irs.gov/pub/irs-irbs/irb99-45.pdf), retrieved 2026-10-03. U.S. Government work (17 U.S.C. § 105).

---

These synopses are intended only as aids to the reader in identifying the subject matter covered. They may not be relied upon as authoritative interpretations.

Rev. Rul. 99–45, page 558. Federal rates; adjusted federal rates; adjusted federal 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 rates for November 1999.

Rev. Rul. 99–46, page 557. LIFO; price indexes; department stores. The September 1999 Bureau of Labor Statistics price indexes are accepted for use by department stores employing the retail inventory and last-in, first-out inventory methods for valuing inventories for tax years ended on, or with reference to, September 30, 1999.

Announcement 99–106, page 561. This announcement provides that IRA recharacterizations and reconversions that occur in 2000 within the same finan

Finding Lists begin on page ii.

Department of the Treasury Internal Revenue Service

cial institution may be reported on Forms 1099-R and 5498 using an alternative method. Announcement 99–5 modified.

Announcement 99–107, page 561. A list is given of organizations now classified as private foundations.

Page 560. Railroad retirement quarterly rate. The Railroad Retirement Board has determined that the rate of tax imposed by section 3221 of the Code shall be 27 cents for the quarter beginning July 1, 1999.

Provide America’s taxpayers top quality service by helping them understand and meet their tax responsibilities

The Internal Revenue Bulletin is the authoritative instrument of the Commissioner of Internal Revenue for announcing official rulings and procedures of the Internal Revenue Service and for publishing Treasury Decisions, Executive Orders, Tax Conventions, legislation, court decisions, and other items of general interest. It is published weekly and may be obtained from the Superintendent of Documents on a subscription basis. Bulletin contents are consolidated semiannually into Cumulative Bulletins, which are sold on a single-copy basis.

It is the policy of the Service to publish in the Bulletin all substantive rulings necessary to promote a uniform application of the tax laws, including all rulings that supersede, revoke, modify, or amend any of those previously published in the Bulletin. All published rulings apply retroactively unless otherwise indicated. Procedures relating solely to matters of internal management are not published; however, statements of internal practices and procedures that affect the rights and duties of taxpayers are published.

Revenue rulings represent the conclusions of the Service on the application of the law to the pivotal facts stated in the revenue ruling. In those based on positions taken in rulings to taxpayers or technical advice to Service field offices, identifying details and information of a confidential nature are deleted to prevent unwarranted invasions of privacy and to comply with statutory requirements.

Rulings and procedures reported in the Bulletin do not have the force and effect of Treasury Department Regulations, but they may be used as precedents. Unpublished rulings will not be relied on, used, or cited as precedents by Service personnel in the disposition of other cases. In applying published rulings and procedures, the effect of subsequent legislation, regulations, court decisions, rulings, and proce

and by applying the tax law with integrity and fairness to all.

dures must be considered, and Service personnel and others concerned are cautioned against reaching the same conclusions in other cases unless the facts and circumstances are substantially the same.

The Bulletin is divided into four parts as follows:

Part I.—1986 Code. This part includes rulings and decisions based on provisions of the Internal Revenue Code of 1986.

Part II.—Treaties and Tax Legislation. This part is divided into two subparts as follows: Subpart A, Tax Conventions, and Subpart B, Legislation and Related Committee Reports.

Part III.—Administrative, Procedural, and Miscellaneous. To the extent practicable, pertinent cross references to these subjects are contained in the other Parts and Subparts. Also included in this part are Bank Secrecy Act Administrative Rulings. Bank Secrecy Act Administrative Rulings are issued by the Department of the Treasury’s Office of the Assistant Secretary (Enforcement).

Part IV.—Items of General Interest. This part includes notices of proposed rulemakings, disbarment and suspension lists, and announcements.

The first Bulletin for each month includes a cumulative index for the matters published during the preceding months. These monthly indexes are cumulated on a semiannual basis, and are published in the first Bulletin of the succeeding semiannual period, respectively.

The contents of this publication are not copyrighted and may be reprinted freely. A citation of the Internal Revenue Bulletin as the source would be appropriate.

For sale by the Superintendent of Documents, U.S. Government Printing Office, Washington, DC 20402.

cepted for use by department stores employing the retail inventory and last-in, first-out inventory methods for valuing inventories for tax years ended on, or with reference to, September 30, 1999.

Rev. Rul. 99–46

The following Department Store Inventory Price Indexes for September 1999 were issued by the Bureau of Labor Statistics. The indexes are accepted by the Internal Revenue Service, under § 1.472– 1(k) of the Income Tax Regulations and Rev. Proc. 86–46, 1986–2 C.B. 739, for appropriate application to inventories of department stores employing the retail inventory and last-in, first-out inventory methods for tax years ended on, or with reference to, September 30, 1999.

The Department Store Inventory Price Indexes are prepared on a national basis and include (a) 23 major groups of departments, (b) three special combinations of the major groups - soft goods, durable goods, and miscellaneous goods, and (c) a store total, which covers all departments, including some not listed separately, except for the following: candy, food, liquor, tobacco, and contract departments.

Section 42.—Low-Income Housing Credit

The adjusted applicable federal short-term, midterm, and long-term rates are set forth for the month of November 1999. See Rev. Rul. 99–45, page 558.

Section 280G.—Golden Parachute Payments

Federal short-term, mid-term, and long-term rates are set forth for the month of November 1999. See Rev. Rul. 99–45, page 558.

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

The adjusted applicable federal long-term rate is set forth for the month of November 1999. See Rev. Rul. 99–45, page 558.

Section 412.—Minimum Funding Standards

The adjusted applicable federal short-term, mid

term, and long-term rates are set forth for the month of November 1999. See Rev. Rul. 99–45, page 558.

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 November 1999. See Rev. Rul. 99–45, page 558.

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 November 1999. See Rev. Rul. 99–45, page 558.

Section 472.—Last-in, First-out Inventories

26 CFR 1.472–1: Last-in, first-out inventories.

LIFO; price indexes; department stores. The September 1999 Bureau of Labor Statistics price indexes are ac

BUREAU OF LABOR STATISTICS, DEPARTMENT STORE INVENTORY PRICE INDEXES BY DEPARTMENT GROUPS

(January 1941 = 100, unless otherwise noted)

Percent Change Sept. Sept. from Sept. 1998 Groups 1998 1999 to Sept. 1999 ¹

1. Piece Goods . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 542.3 543.6 0.2
2. Domestics and Draperies . . . . . . . . . . . . . . . . . . . . . . . 634.0 629.3 –0.7
3. Women’s and Children’s Shoes . . . . . . . . . . . . . . . . . . . 664.9 645.4 –2.9
4. Men’s Shoes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 915.1 883.1 –3.5
5. Infants’ Wear . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 621.4 633.6 2.0
6. Women’s Underwear . . . . . . . . . . . . . . . . . . . . . . . . . . . 569.3 566.1 –0.6
7. Women’s Hosiery . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 308.7 326.7 5.8
8. Women’s and Girls’Accessories . . . . . . . . . . . . . . . . . . 545.7 536.2 –1.7
9. Women’s Outerwear and Girls’ Wear . . . . . . . . . . . . . . 419.3 408.9 –2.5
10. Men’s Clothing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 614.9 619.3 0.7
11. Men’s Furnishings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 595.5 618.4 3.8
12. Boys’ Clothing and Furnishings . . . . . . . . . . . . . . . . . . 511.6 498.5 –2.6
13. Jewelry . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 973.7 960.4 –1.4
14. Notions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 754.8 767.0 1.6
15. Toilet Articles and Drugs . . . . . . . . . . . . . . . . . . . . . . . 939.8 982.5 4.5
16. Furniture and Bedding . . . . . . . . . . . . . . . . . . . . . . . . . 673.8 696.6 3.4
17. Floor Coverings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 602.1 602.8 0.1
18. Housewares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 807.8 796.1 –1.4
19. Major Appliances . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 236.9 235.7 –0.5

1999–45 I.R.B. 557 November 8, 1999

BUREAU OF LABOR STATISTICS, DEPARTMENT STORE INVENTORY PRICE INDEXES BY DEPARTMENT GROUPS—Continued

(January 1941 = 100, unless otherwise noted)

Percent Change Sept. Sept. from Sept. 1998 Groups 1998 1999 to Sept. 1999 ¹

20. Radio and Television . . . . . . . . . . . . . . . . . . . . . . . . . . . 71.0 64.6 –9.0
21. Recreation and Education ² . . . . . . . . . . . . . . . . . . . . . . . 103.2 96.4 –6.6
22. Home Improvements ² . . . . . . . . . . . . . . . . . . . . . . . . . . 129.9 127.8 –1.6
23. Auto Accessories ² . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 107.5 107.1 –0.4

Groups 1 – 15: Soft Goods . . . . . . . . . . . . . . . . . . . . . . . . . 605.4 605.2 0.0

Groups 16 – 20: Durable Goods . . . . . . . . . . . . . . . . . . . . . 458.1 450.6 –1.6

Groups 21 – 23: Misc. Goods ² . . . . . . . . . . . . . . . . . . . . . . . 107.6 102.7 –4.6

Store Total ³ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 551.9 547.0 –0.9

1 Absence of a minus sign before percentage change in this column signifies price increase. 2 Indexes on a January 1986=100 base. 3 The store total index covers all departments, including some not listed separately, except for the following: candy, food, liquor, tobacco, and contract departments.

DRAFTING INFORMATION

The principal author of this revenue ruling is Richard C. Farley, Jr. of the Office of Assistant Chief Counsel (Income Tax and Accounting). For further information regarding this revenue ruling, contact Mr. Farley on (202) 622-4970 (not a toll-free call).

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 November 1999. See Rev. Rul. 99–45 on this page.

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 November 1999. See Rev. Rul. 99–45 on this page.

Section 642.—Special Rules for Credits and Deductions

Federal short-term, mid-term, and long-term

rates are set forth for the month of November 1999. See Rev. Rul. 99–45 on this page.

Section 807.—Rules for Certain Reserves

The adjusted applicable federal short-term, midterm, and long-term rates are set forth for the month of November 1999. See Rev. Rul. 99–45 on this page.

Section 846.—Discounted Unpaid Losses Defined

The adjusted applicable federal short-term, midterm, and long-term rates are set forth for the month of November 1999. See Rev. Rul. 99–45 on this page.

Section 1274.—Determination of Issue Price in the Case of Certain Debt Instruments Issued for Property

(Also sections 42, 280G, 382, 412, 467, 468, 482, 483, 642, 807, 846, 1288, 7520, 7872.)

Federal rates; adjusted federal rates; adjusted federal 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 rates for November 1999.

Rev. Rul. 99–45

This revenue ruling provides various prescribed rates for federal income tax purposes for November 1999 (the current month.) Table 1 contains the short-term, mid-term, and long-term applicable federal rates (AFR) for the current month for purposes of section 1274(d) of the Internal Revenue Code. Table 2 contains the short-term, mid-term, and long-term adjusted applicable federal rates (adjusted AFR) for the current month for purposes of section 1288(b). Table 3 sets forth the adjusted federal long-term rate and the long-term tax-exempt rate described in section 382(f). Table 4 contains the appropriate percentages for determining the low-income housing credit described in section 42(b)(2) for buildings placed in service during the current month. Finally, Table 5 contains the federal rate for determining the present value of an annuity, an interest for life or for a term of years, or a remainder or a reversionary interest for purposes of section 7520.

November 8, 1999 558 1999–45 I.R.B.

REV. RUL. 99–45 TABLE 1

Applicable Federal Rates (AFR) for November 1999

Period for Compounding

Annual Semiannual Quarterly Monthly Short-Term

AFR 5.57% 5.49% 5.45% 5.43% 110% AFR 6.13% 6.04% 6.00% 5.97% 120% AFR 6.70% 6.59% 6.54% 6.50% 130% AFR 7.27% 7.14% 7.08% 7.04%

Mid-Term

AFR 6.08% 5.99% 5.95% 5.92% 110% AFR 6.70% 6.59% 6.54% 6.50% 120% AFR 7.32% 7.19% 7.13% 7.08% 130% AFR 7.94% 7.79% 7.72% 7.67% 150% AFR 9.19% 8.99% 8.89% 8.83% 175% AFR 10.75% 10.48% 10.35% 10.26%

Long-Term

AFR 6.39% 6.29% 6.24% 6.21% 110% AFR 7.04% 6.92% 6.86% 6.82% 120% AFR 7.69% 7.55% 7.48% 7.43% 130% AFR 8.35% 8.18% 8.10% 8.04%

REV. RUL. 99–45 TABLE 2

Adjusted AFR for November 1999

Period for Compounding

Annual Semiannual Quarterly Monthly Short-term adjusted AFR 3.91% 3.87% 3.85% 3.84%

Mid-term adjusted AFR 4.59% 4.54% 4.51% 4.50%

Long-term adjusted AFR 5.52% 5.45% 5.41% 5.39%

REV. RUL. 99–45 TABLE 3

Rates Under Section 382 for November 1999

Adjusted federal long-term rate for the current month 5.52%

Long-term tax-exempt rate for ownership changes during the current month (the highest of the adjusted federal long-term rates for the current month and the prior two months.) 5.52%

REV. RUL. 99–45 TABLE 4

Appropriate Percentages Under Section 42(b)(2) for November 1999

Appropriate percentage for the 70% present value low-income housing credit 8.46%

Appropriate percentage for the 30% present value low-income housing credit 3.63%

1999–45 I.R.B. 559 November 8, 1999

REV. RUL. 99–45 TABLE 5

Rate Under Section 7520 for November 1999

Applicable federal rate for determining the present value of an annuity, an interest for life or a term of years, or a remainder or reversionary interest 7.4%

Section 1288.—Treatment of Original Issue Discount on Tax-Exempt Obligations

The adjusted applicable federal short-term, midterm, and long-term rates are set forth for the month of November 1999. See Rev. Rul. 99–45, page 558.

Section 3221.—Rate of Tax

Determination of Quarterly Rate of Excise Tax for Railroad Retirement Supplemental Annuity Program

In accordance with directions in Section 3221(c) of the Railroad Retirement Tax Act (26 U.S.C., Section 3221(c)), the Railroad Retirement Board has determined that the excise tax imposed by such Section 3221(c) on every employer, with respect to having individuals in his employ, for each work-hour for which com

pensation is paid by such employer for services rendered to him during the quarter beginning July 1, 1999, shall be at the rate of 27 cents.

In accordance with directions in Section 15(a) of the Railroad Retirement Act of 1974, the Railroad Retirement Board has determined that for the quarter beginning July 1, 1999, 35.8 percent of the taxes collected under Sections 3211(b) and 3221(c) of the Railroad Retirement Tax Act shall be credited to the Railroad Retirement Account and 64.2 percent of the taxes collected under such Sections 3211(b) and 3221(c) plus 100 percent of the taxes collected under Section 3221(d) of the Railroad Retirement Tax Act shall be credited to the Railroad Retirement Supplemental Account.

Dated July 21, 1999.

By Authority of the Board.

Beatrice Ezerski, Secretary to the Board.

(Filed by the Office of the Federal Register on June 29, 1999, 8:45 a.m., and published in the issue of the Federal Register for June 30, 1999, 64 F.R. 35221)

Section 7520.—Valuation Tables

The adjusted applicable federal short-term, midterm, and long-term rates are set forth for the month of November 1999. See Rev. Rul. 99–45, page 558.

Section 7872.—Treatment of Loans With Below-Market Interest Rates

The adjusted applicable federal short-term, midterm, and long-term rates are set forth for the month of November 1999. See Rev. Rul. 99–45, page 558.

November 8, 1999 560 1999–45 I.R.B.

Missouri City, 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.

IRA Recharacterizations and Reconversions Using the Same Trustee

Announcement 99–106

Purpose and Background

This announcement provides a 1-year extension of certain alternative methods of reporting IRA recharacterizations and reconversions.

Sections 408(i), 408A(d)(3)(D), and 6047 of the Internal Revenue Code provide that the Secretary of the Treasury shall prescribe rules for the reporting of transactions involving IRAs.

In general, contributions to IRAs are reported on Form 5498 and distributions from IRAs are reported on Form 1099-R. The instructions to these forms provide detailed information on completing these forms.

Section 1.408A–7 of the Income Tax Regulations imposes the general reporting requirements for Roth IRAs.

Notice 98–49, 1998–38 I.R.B. 5 (September 21, 1998), sets forth a general rule for reporting the recharacterization of an amount from an IRA of one type to an IRA of another type.

Announcement 99–5, 1999–3 I.R.B. 16 (January 19, 1999), provides for an alternative method of reporting recharacterizations and reconversions that occur in 1998 and 1999 within the same financial institution.

Section 1.408A–4 prescribes the rules relating to Roth IRA conversions, and § 1.408A–5 prescribes the rules relating to IRA recharacterizations. Section 1.408A–5, Q&A-9, provides that, for years after 1999, an IRA owner who converts an amount to a Roth IRA in a particular year and then recharacterizes the amount back to a traditional IRA may not reconvert the amount to a Roth IRA until the later of 30 days after the recharacterization or the beginning of the next year.

Extension of Announcement 99–5

A trustee, issuer, or custodian (hereinafter referred to as a “trustee”) will not

fail to satisfy the otherwise applicable IRA reporting requirements for recharacterizations and reconversions occurring in 2000 using the same trustee, provided that the trustee complies with Announcement 99–5 (other than the requirement of Announcement 99–5 that the recharacterization or reconversion occur in 1998 or 1999). Thus, a trustee will not fail to satisfy the reporting requirements under §§ 408(i) and 6047 for completing Forms 1099-R or Forms 5498 for IRAs merely because, in the event of a recharacterization occurring in 2000 using the same trustee or a reconversion occurring in 2000 using the same trustee, the trustee reports the results of the recharacterization or reconversion on the appropriate forms using a reasonable alternative method in lieu of the method described in Notice 98-49.

Any trustee using an alternative method must provide instructions to the IRA owner, in conjunction with account statements (or other information) the trustee provides to the IRA owner, on how to use the information provided on the forms to properly report the recharacterizations and reconversions on the IRA owner’s Federal income tax return for 2000, including how to use the information to complete related forms such as Form 8606 and Form 5329.

For purposes of this announcement, whether a transaction occurs using the same trustee is determined by the trustee’s Federal identification number. Thus, a transaction that occurs between trustees that use different Federal identification numbers for purposes of issuing Forms 1099-R and Forms 5498 is not a transaction that occurs using the same trustee.

A recharacterization or reconversion that does not occur using the same trustee must be reported in accordance with the general rules contained in Notice 98-49 and the instructions to Forms 5498 and 1099-R, regardless of the year in which the recharacterization or reconversion occurs.

IRA Reporting Requirements After 2000

The Service will issue guidance in the future regarding the method for reporting recharacterizations and reconversions of IRA contributions made after 2000.

Effect on Other Documents

Announcement 99–5 is modified.

Foundations Status of Certain Organizations

Announcement 99–107

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: Center for Alcohol Policy and

Prevention, Syracuse, NY Quality Support Services for Youth,

1999–45 I.R.B. 561 November 8, 1999

Revenue rulings and revenue procedures (hereinafter referred to as “rulings”) that have an effect on previous rulings use the following defined terms to de- scribe 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.

November 8, 1999 i 1999–45 I.R.B.

Numerical Finding List ¹

Bulletins 1999–27 through 1999–44

Announcements:

99–47, 1999–28 I.R.B. 29 99–64, 1999–27 I.R.B. 7 99–65, 1999–27 I.R.B. 9 99–66, 1999–27 I.R.B. 9 99–67, 1999–28 I.R.B. 31 99–68, 1999–28 I.R.B. 31 99–69, 1999–28 I.R.B. 33 99–70, 1999–29 I.R.B. 118 99–71, 1999–31 I.R.B. 223 99–72, 1999–30 I.R.B. 132 99–73, 1999–30 I.R.B. 133 99–74, 1999–30 I.R.B. 133 99–75, 1999–30 I.R.B. 134 99–76, 1999–31 I.R.B. 223 99–77, 1999–32 I.R.B. 243 99–78, 1999–31 I.R.B. 229 99–79, 1999–31 I.R.B. 229 99–80, 1999–34 I.R.B. 310 99–81, 1999–32 I.R.B. 244 99–82, 1999–32 I.R.B. 244 99–83, 1999–32 I.R.B. 245 99–84, 1999–33 I.R.B. 248 99–85, 1999–33 I.R.B. 248 99–86, 1999–35 I.R.B. 332 99–87, 1999–35 I.R.B. 333 99–88, 1999–36 I.R.B. 407 99–89, 1999–36 I.R.B. 408 99–90, 1999–36 I.R.B. 409 99–91, 1999–37 I.R.B. 421 99–92, 1999–38 I.R.B. 433 99–93, 1999–36 I.R.B. 409 99–94, 1999–39 I.R.B. 437 99–95, 1999–42 I.R.B. 520 99–96, 1999–41 I.R.B. 504 99–97, 1999–41 I.R.B. 505 99–98, 1999–42 I.R.B. 520 99–99, 1999–42 I.R.B. 522 99–100, 1999–42 I.R.B. 522 99–101, 1999–43 I.R.B. 544 99–102, 1999–43 I.R.B. 545 99–103, 1999–43 I.R.B. 546 99–104, 1999–44 I.R.B. 555 99–105, 1999–44 I.R.B. 555

Notices:

99–34, 1999–35 I.R.B. 323 99–35, 1999–28 I.R.B. 26 99–37, 1999–30 I.R.B. 124 99–38, 1999–31 I.R.B. 138 99–39, 1999–34 I.R.B. 313 99–40, 1999–35 I.R.B. 324 99–41, 1999–35 I.R.B. 325 99–42, 1999–35 I.R.B. 325 99–43, 1999–36 I.R.B. 344 99–44, 1999–35 I.R.B. 326 99–45, 1999–37 I.R.B. 415 99–46, 1999–37 I.R.B. 415 99–47, 1999–36 I.R.B. 391 99–48, 1999–38 I.R.B. 429 99–49, 1999–39 I.R.B. 436 99–50, 1999–40 I.R.B. 444 99–51, 1999–40 I.R.B. 447 99–52, 1999–43 I.R.B. 525

1 A cumulative list of all revenue rulings, revenue procedures, Treasury decisions, etc., published in Internal Revenue Bulletins 1999–1 through 1999–26 is in Internal Revenue Bulletin 1999–27, dated July 6, 1999.

Proposed Regulations:

REG–252487–96, 1999–34 I.R.B. 303 REG–101519–97, 1999–29 I.R.B. 114 REG–107069–97, 1999–36 I.R.B. 346 REG–121063–97, 1999–43 I.R.B. 540 REG–106010–98, 1999–40 I.R.B. 493 REG–106527–98, 1999–34 I.R.B. 304 REG–108287–98, 1999–28 I.R.B. 27 REG–113526–98, 1999–37 I.R.B. 417 REG–113909–98, 1999–30 I.R.B. 125 REG–116733–98, 1999–36 I.R.B. 392 REG–116991–98, 1999–32 I.R.B. 242 REG–121946–98, 1999–36 I.R.B. 403 REG–105237–99, 1999–35 I.R.B. 331 REG–105327–99, 1999–29 I.R.B. 117 REG–105565–99, 1999–37 I.R.B. 419 REG–116125–99, 1999–44 I.R.B. 552

Revenue Procedures:

99–28, 1999–29 I.R.B. 109 99–29, 1999–31 I.R.B. 138 99–30, 1999–31 I.R.B. 221 99–31, 1999–34 I.R.B. 280 99–32, 1999–34 I.R.B. 296 99–33, 1999–34 I.R.B. 301 99–34, 1999–40 I.R.B. 450 99–35, 1999–41 I.R.B. 501 99–36, 1999–42 I.R.B. 509 99–37, 1999–42 I.R.B. 517 99–38, 1999–43 I.R.B. 525 99–39, 1999–43 I.R.B. 532

Revenue Rulings:

99–29, 1999–27 I.R.B. 3 99–30, 1999–28 I.R.B. 24 99–31, 1999–37 I.R.B. 410 99–32, 1999–31 I.R.B. 135 99–33, 1999–34 I.R.B. 251 99–34, 1999–33 I.R.B. 247 99–35, 1999–34 I.R.B. 278 99–36, 1999–35 I.R.B. 319 99–37, 1999–36 I.R.B. 336 99–38, 1999–36 I.R.B. 335 99–39, 1999–38 I.R.B. 424 99–40, 1999–40 I.R.B. 441 99–41, 1999–40 I.R.B. 439 99–42, 1999–41 I.R.B. 497 99–43, 1999–42 I.R.B. 506 99–44, 1999–44 I.R.B. 549

Treasury Decisions:

8822, 1999–27 I.R.B. 5 8823, 1999–29 I.R.B. 34 8824, 1999–29 I.R.B. 62 8825, 1999–28 I.R.B. 19 8826, 1999–29 I.R.B. 107 8827, 1999–30 I.R.B. 120 8828, 1999–30 I.R.B. 120 8829, 1999–32 I.R.B. 235 8830, 1999–38 I.R.B. 430 8831, 1999–34 I.R.B. 264 8832, 1999–35 I.R.B. 315 8833, 1999–36 I.R.B. 338 8834, 1999–34 I.R.B. 251 8835, 1999–35 I.R.B. 317 8836, 1999–37 I.R.B. 411 8837, 1999–38 I.R.B. 426 8838, 1999–38 I.R.B. 424 8839, 1999–41 I.R.B. 498

1999–45 I.R.B. ii November 8, 1999

Finding List of Current Action on Previously Published Items ¹

Bulletins 1999–27 through 1999–44

Announcements:

99–57 Modified by Ann. 99–104, 1999–44 I.R.B. 555

99–59 Corrected by Ann. 99–67, 1999–28 I.R.B. 31

Notices: 83–10 Modified by Notice 99–44, 1999–35 I.R.B. 326 96–64 Modified by Notice 99–40, 1999–35 I.R.B. 324

97–26 Modified by Notice 99–41, 1999–35 I.R.B. 325

97–50 Modified and superseded by Notice 99–41, 1999–35 I.R.B. 325

97–73 Modified by Notice 99–37, 1999–30 I.R.B. 124

98–7 Modified by Notice 99–37, 1999–30 I.R.B. 124

98–46 Modified by Notice 99–37, 1999–30 I.R.B. 124

98–47 Modified and superseded by Notice 99–41, 1999–35 I.R.B. 325

98–54 Modified by Notice 99–37, 1999–30 I.R.B. 124

98–59 Modified by Notice 99–37, 1999–30 I.R.B. 124

Proposed Regulations:

REG–208156–91 Corrected by Ann. 99–65, 1999–27 I.R.B. 9

Revenue Procedures: 65–17 Superseded by Rev. Proc. 99–32, 1999–34 I.R.B. 296

65–31 Superseded by Rev. Proc. 99–32, 1999–34 I.R.B. 296

70–23 Superseded by Rev. Proc. 99–32, 1999–34 I.R.B. 296

71–35 Superseded by Rev. Proc. 99–32, 1999–34 I.R.B. 296

1 A cumulative finding list of actions published in Internal Revenue Bulletins 1999–1 through 1999–26 is in Internal Revenue Bulletin 1999–27, dated July 6, 1999.

Revenue Procedures—Continued

72–22 Superseded by Rev. Proc. 99–32, 1999–34 I.R.B. 296

72–46 Superseded by Rev. Proc. 99–32, 1999–34 I.R.B. 296

72–48 Superseded by Rev. Proc. 99–32, 1999–34 I.R.B. 296

72–53 Superseded by Rev. Proc. 99–32, 1999–34 I.R.B. 296

89–48 Obsoleted (after Jan. 31, 2000) by Notice 99–42, 1999–35 I.R.B. 325

89–49 Obsoleted (after Jan. 31, 2000) by Notice 99–42, 1999–35 I.R.B. 325

96–9 Superseded by Rev. Proc. 99–28, 1999–29 I.R.B. 109

96–17 Modified by Rev. Proc. 99–39, 1999–43 I.R.B. 532

97–19 Modified by Notice 99–41, 1999–35 I.R.B. 325

97–47 Amplified, clarified, modified, and superseded by Rev. Proc. 99–39, 1999–43 I.R.B. 532

98–22 Clarified and supplemented by Rev. Proc. 99–31, 1999–34 I.R.B. 280

98–35 Superseded by Rev. Proc. 99–29, 1999–31 I.R.B. 138

98–37 Superseded by Rev. Proc. 99–34, 1999–40 I.R.B. 450

98–63 Modified by Ann. 99–7 and superseded by Rev. Proc. 99–38, 1999–43 I.R.B. 525

Revenue Rulings:

77–475 Modified and superseded by Rev. Rul. 99–40, 1999–40 I.R.B. 441

82–80 Superseded by Rev. Proc. 99–32, 1999–34 I.R.B. 296

84–58 Modified and superseded by Rev. Rul. 99–40, 1999–40 I.R.B. 441

88–98 Modified and superseded by Rev. Rul. 99–40, 1999–40 I.R.B. 441

99–23 Corrected by Ann. 99–89, 1999–36 I.R.B. 408

Treasury Decisions:

8476 Corrected by Ann. 99–74, 1999–30 I.R.B. 133

8742 Corrected by Ann. 99–73, 1999–30 I.R.B. 133

8793 Corrected by Ann. 99–75, 1999–30 I.R.B. 134

8805 Corrected by Ann. 99–66, 1999–27 I.R.B. 9

8806 Corrected by Ann. 99–84, 1999–33 I.R.B. 248

8819 Corrected by Ann. 99–47, 1999–28 I.R.B. 29

8823 Corrected by Ann. 99–86, 1999–35 I.R.B. 332

8825 Corrected by Ann. 99–100, 1999–42 I.R.B. 522

November 8, 1999 iii 1999–45 I.R.B.

The Introduction at the beginning of this issue 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, OP:FS:FP:P:1, Room 5617, 1111 Constitution Avenue NW, Washington, DC 20224.