SECTION 1. PURPOSE AND

NATURE OF CHANGES

.01 The purpose of this revenue procedure is to update Rev. Proc. 99–3, 1999–1 I.R.B. 103, as amplified and modified by subsequent revenue procedures, by providing a revised list of those areas of the Internal Revenue Code under the jurisdiction of the Associate Chief Counsel (Domestic) and the Associate Chief Counsel (Employee Benefits and Exempt Organizations) relating to issues on which the Internal Revenue Service will not issue letter rulings or determination letters. For a list of areas under the jurisdiction of the Associate Chief Counsel (International) relating to international issues on which the Service will not issue letter rulings or determination letters, see section 3 of Rev. Proc. 2000–7 in this Bulletin. For a list of areas under the jurisdiction of the Office of the Commissioner, Tax Exempt and Government Entities Division relating to issues, plans or plan amendments on which the Service will not issue letter rulings and determination letters, see, respectively, section 8 of Rev. Proc. 2000–4 in this Bulletin, and section 3.02 of Rev. Proc. 2000–6 in this Bulletin. .02 Changes

(1) Old section 3.01(15), dealing with § 274, has been updated to cite a more recent revenue procedure.

(2) Old sections 3.01(22) and (24), dealing with the formation of a holding company under §§ 351 and 368(a)(1)(B), are modified to indicate that the Service will rule on transfers of stock to a controlled corporation where such transfers are undertaken prior to the distribution of the stock of the controlled corporation in a transaction qualifying under § 355. This exception to these no-rule provisions is added to provide taxpayers with current advice as to the Service’s practice in this area.

(3) Old section 4.01(11), dealing with whether expenses are nondeductible commuting expenses under §§ 162 and 262, has been updated to cite a more recent revenue ruling.

(4) New section 5.01(26), dealing with the § 1361 definition of an S corporation,

has been added to the under study no-rule area to indicate that the Service will not issue rulings as to whether a state law limited partnership electing under § 301.7701–3 of the regulations to be classified as an association taxable as a corporation has more than one class of stock for purposes of § 1361(b)(1)(D). The Service will treat any request for a ruling on whether a state law limited partnership is eligible to elect S corporation status as a request for a ruling on whether the partnership complies with § 1361(b)(1)(D). See Rev. Proc. 99–51, 1999–52 I.R.B. 760. (5) Old section 6.02, dealing with § 446, has been updated by deleting certain prior references and adding references to Rev. Proc. 99–49, 1999–52 I.R.B. 725, and the Appendix thereto, and Rev. Proc. 92–29, 1992–1 C.B. 748.