PART VII. EFFECT ON OTHER

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Superseded describes a situation where the new ruling does nothing more than restate the substance and situation of a previously published ruling (or rulings).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.

2000–6 I.R.B. i February 7, 2000

Numerical Finding List ¹

Bulletins 2000–1 through 2000–5

Announcements: 2000–1, 2000–2 I.R.B. 294 2000–2, 2000–2 I.R.B. 295 2000–3, 2000–2 I.R.B. 296 2000–4, 2000–3 I.R.B. 317 2000–5, 2000–4 I.R.B. 427 2000–6, 2000–4 I.R.B. 428

Notices: 2000–1, 2000–2 I.R.B. 288 2000–3, 2000–4 I.R.B. 413 2000–4, 2000–3 I.R.B. 313 2000–5, 2000–3 I.R.B. 314 2000–6, 2000–3 I.R.B. 315 2000–7, 2000–4 I.R.B. 419 2000–8, 2000–4 I.R.B. 420 2000–9, 2000–5 I.R.B. 449 2000–10, 2000–5 I.R.B. 451

Proposed Regulations: REG–101492–98, 2000–3 I.R.B. 326 REG–106012–98, 2000–2 I.R.B. 290 REG–103831–99, 2000–5 I.R.B. 452 REG–105606–99, 2000–4 I.R.B. 421 REG–111119–99, 2000–5 I.R.B. 455 REG–116567–99, 2000–5 I.R.B. 463 REG–116704–99, 2000–3 I.R.B. 325

Revenue Procedures: 2000–1, 2000–1 I.R.B. 4 2000–2, 2000–1 I.R.B. 73 2000–3, 2000–1 I.R.B. 103 2000–4, 2000–1 I.R.B. 115 2000–5, 2000–1 I.R.B. 158 2000–6, 2000–1 I.R.B. 187 2000–7, 2000–1 I.R.B. 227 2000–8, 2000–1 I.R.B. 230 2000–9, 2000–2 I.R.B. 280 2000–10, 2000–2 I.R.B. 287 2000–11, 2000–3 I.R.B. 309 2000–12, 2000–4 I.R.B. 387 2000–15, 2000–5 I.R.B. 447

Revenue Rulings: 2000–1, 2000–2 I.R.B. 250 2000–2, 2000–3 I.R.B. 305 2000–3, 2000–3 I.R.B. 297 2000–4, 2000–4 I.R.B. 331 2000–5, 2000–5 I.R.B. 436

Treasury Decisions: 8849, 2000–2 I.R.B. 245 8850, 2000–2 I.R.B. 265 8851, 2000–2 I.R.B. 275 8852, 2000–2 I.R.B. 253 8853, 2000–4 I.R.B. 377 8854, 2000–3 I.R.B. 306 8855, 2000–4 I.R.B. 374 8856, 2000–3 I.R.B. 298 8857, 2000–4 I.R.B. 365 8858, 2000–4 I.R.B. 332 8859, 2000–5 I.R.B. 429 8860, 2000–5 I.R.B. 437 8861, 2000–5 I.R.B. 441

1 A cumulative list of all revenue rulings, revenue procedures, Treasury decisions, etc., published in Internal Revenue Bulletins 1999–27 through 1999–52 is in Internal Revenue Bulletin 2000–1, dated January 3, 2000.

February 7, 2000 ii 2000–6 I.R.B.

Finding List of Current Action on Previously Published Items ¹

Bulletins 2000–1 through 2000–5

Notices:

97–19 Modified by Rev. Proc. 2000–1, 2000–1 I.R.B. 4

98–52 Modified by Notice 2000–3, 2000–4 I.R.B. 413

98–61 Modified and superseded by Notice 2000–15, 2000–5 I.R.B. 447

99–8 Obsoleted by Rev. Proc. 2000–12, 2000–4 I.R.B. 387

Revenue Procedures:

92–13 Modified, amplified, and superseded by Rev. Proc. 2000–11, 2000–3 I.R.B. 309

92–13A Modified, amplified, and superseded by Rev. Proc. 2000–11, 2000–3 I.R.B. 309

94–12 Modified, amplified, and superseded by Rev. Proc. 2000–11, 2000–3 I.R.B. 309

96–13 Modified by Rev. Proc. 2000–1, 2000–1 I.R.B. 4

98–27 Superseded by Rev. Proc. 2000–12, 2000–4 I.R.B. 387

98–64 Superseded by Rev. Proc. 2000–9, 2000–2 I.R.B. 280

99–1 Superseded by Rev. Proc. 2000–1, 2000–1 I.R.B. 4

99–2 Superseded by Rev. Proc. 2000–2, 2000–1 I.R.B. 73

99–3 Superseded by Rev. Proc. 2000–3, 2000–1 I.R.B. 103

99–4 Superseded by Rev. Proc. 2000–4, 2000–1 I.R.B. 115

99–5 Superseded by Rev. Proc. 2000–5, 2000–1 I.R.B. 158

99–6 Superseded by Rev. Proc. 2000–6, 2000–1 I.R.B. 187

99–7 Superseded by Rev. Proc. 2000–7, 2000–1 I.R.B. 227

99–8 Superseded by Rev. Proc. 2000–8, 2000–1 I.R.B. 230

1 A cumulative list of previously published items in Internal Revenue Bulletins 1999–27 through 1999–52 is in Internal Revenue Bulletin 2000–1, dated January 3, 2000.

99–49 Modified and amplified by both Notice 2000–4, 2000–3, I.R.B. 313 and Rev. Rul. 2000–4, 2000–4 I.R.B. 331

99–51 Superseded by Rev. Proc. 2000–3, 2000–1 I.R.B. 103

Treasury Decisions:

8734 Modified by T.D. 8856, 2000–3, I.R.B. 298

8804 Modified by T.D. 8856, 2000–3, I.R.B. 298

2000–6 I.R.B. iii February 7, 2000

Internal Revenue Bulletins 2000–1 Through 2000–6

For a cumulative index of items published in Internal Revenue Bulletins 1999–1 through 1999–26, see Internal Revenue Bulletin 1999–27, dated July 6, 1999.

The abbreviation and number in parenthesis following the index entry refer to the specific item; numbers in roman and italic type following the parenthesis refer to the Internal Revenue Bulletin in which the item may be found and the page number on which it appears.

Key to Abbreviations: RR Revenue Ruling RP Revenue Procedure TD Treasury Decision CD Court Decision PL Public Law EO Executive Order DO Delegation Order TDO Treasury Department Order TC Tax Convention SPR Statement of Procedural

Rules PTE Prohibited Transaction

Exemption

Areas in which advance letter rulings and

determination letters will not be issued from Associate Chief Counsel; Domestic (RP 3) 1, 103 Areas in which advance letter rulings and

determination letters will not be issued from Associate Chief Counsel; International (RP 7) 1, 227 Cash or deferred arrangements; nondis

Technical advice to IRS employees (RP

Areas in which advance letter rulings and

determination letters will not be issued from Associate Chief Counsel; Domestic (RP 3) 1, 103 Information letters available for public

5. 1, 158 User fees; request for letter rulings (RP

6. 1, 230

301.6104(d)–3, amended; 602.101(b), amended; private foundation disclosure rules (TD 8861) 5, 442 Technical advice to IRS employees (RP

QTIP elections; individual retirement

accounts and testamentary trusts (RR 2) 3, 305 Marital / Charitable deduction, valuation

5. 1, 158 User fees; request for letter rulings (RP

Accounting period change; automatic

8. 1, 230

of property; administration expenses (Ann 3) 2, 296 Regulations:

26 CFR 1.663(a)–1, amended; 1.663(c)–1, amended; 1.663(c)–2, revised; 1.663(c)–3, amended; 1.663(c)–4, redesignated as 1.663(c)–5; 1.663(c)–4, added; 1.663(c)–5, amended; 1.663(c)–6, added; separate shares rule applicable to estates (TD 8849) 2, 245 Separate shares rules (TD 8849) 2, 245

consent (RP 11) 3, 309 Adequate disclosure of gifts (Ann 6) 4,

course liabilities (REG–103831–99) 5, 452 Appeals; test of arbitration procedure

(Ann 4) 3, 317 Areas in which advance letter rulings and

determination letters will not be issued; International (RP 7) 1, 227 Asset acquisitions; allocation of purchase

428 Allocation of partnership debt; nonre

Prepaid telephone cards (TD 8855) 4,

price (TD 8858) 4, 332 Barter exchanges; information reporting

374 Regulations:

26 CFR 49.4251–4, added; 602.101, amended; prepaid telephone cards (TD 8855) 4, 374 Return filing and deposits (Ann 5) 4, 427

(Notice 6) 3, 315 Business Expenses:

tion (REG–116567–99) 5, 463 ; (TD 8860) 5, 437 ISO 9000 costs (RR 4) 4, 331 Traveling expenses; per diem

Hyperinflationary currencies; defini

allowances (RP 9) 2, 280 Canadian banking legislation, repeal;

deferral of termination (Notice 7) 4, 419 Closely-held real estate investment trust;

estimated tax payments; penalty relief (Notice 5) 3, 314 Contribution in aid of construction; defi

nition (REG–106012–98) 2, 290 Credits:

crimination (Notice 3) 4, 413 Determination letter; issuing procedures

(RP 6) 1, 187 Full funding limitations; weighted aver

inspection (Ann 2) 2, 295 Letter rulings, information letters, etc.

(RP 4) 1, 115 Private foundation disclosure rules (TD

age interest rate for: January (Notice 8) 4, 420 Letter rulings, determination letters and

Low-income housing credit; compli ance monitoring (TD 8859) 5, 429 Research credit; controlled group

information letters issued by Associate Chief Counsel (RP 1) 1, 4 Letter rulings, information letters, etc.

8861. 5, 442 Regulations:

26 CFR 301.6104(d)–1, removed; 301.6104(d)–2, redesignated as 301.6104(d)–0, revised; 301.6104(d)–3, redesignated as 301.6104(d)–1, amended; 301.6104(d)–4, redesignated as 301.6104(d)–2, amended; 301.6104(d)–5, redesignated as

untary conversion or like-kind exchange (Notice 4) 3, 313 Determination of underwriting income;

(REG–105606–99) 4, 421 Depreciation of MACRS property; invol

of Agriculture (TD 8854) 3, 306 ;

(RP 4) 1, 115 Reporting requirements; Section 457

plans (Ann 1) 2, 294 Technical advice to district directors and

non-life insurance companies (TD 8857) 4, 365 Disclosure of return information; Census

chiefs, appeals office from Associate Chief Counsel (RP 2) 1, 73

February 7, 2000 iv 2000–6 I.R.B.

(REG–116704–99) 3, 325 Estimated taxes:

Closely-held real estate investment

trust; penalty relief (Notice 5) 3, 314 Foreign currency, hyperinflation; defi

26 CFR 1.708–1, amended; 1.743–1, amended; treatment of partnership mergers and divisions (REG–111119–99) 5, 455 26 CFR 1.752–3, amended; 1.752–5, revised; allocation of nonrecourse liabilities by a partnership (REG–103831–99) 5, 452 26 CFR 1.988–1, revised; hyperinflationary currencies, definition (REG–116567–99) 5, 463 26 CFR 301.6103(j)(5)–1, added; disclosure of return information; Census of Agriculture (REG–116704–99) 3, 325 26 CFR 301.7508–1, added; 301.7508A–1, added; relief for service in combat zone and for Presidentially declared disaster (REG–101492–98) 3, 326 Qualified Zone Academy Bonds (RP 10)

nition (REG–116567–99) 5, 463 ; (TD 8860) 5, 437 Foreign partnership:

Information reporting (TD 8850) 3,

265 U.S. persons with reportable event;

reporting requirement (TD 8851) 2, 275 Guidance priority list (Notice 10) 5, 451 Information letters available for public

inspection (Ann 2) 2, 295 Information reporting:

Barter exchange (Notice 6) 3, 315 Foreign partnerships and foreign corporations (TD 8850) 3, 265 Innocent spouse; equitable relief (RP 15)

2, 287 Recharacterizing financing arrangements;

5, 447 Interest:

Investment: Federal short-term, mid-term, and

fast-pay stock (TD 8853) 4, 377 Regulations:

1.1366–2, revised; 1.1366–3, –4, –5, added; 1.1367–0, –1, amended; 1.1367–3, revised; 1.1368–0, –1, –2, –3, amended; 1.1368–4, revised; passthrough of items of an S corporation to its shareholders (TD 8852) 2, 253 26 CFR 1.1441–10, added; 1.7701(1)–0, added; 1.7701(1)–3, added; 602.101(b), amended; recharacterizing financing arrangements involving fast–pay stock (TD 8853) 4, 377 26 CFR 1.6038–3, added; 1.6038–2, amended; 1.6038B–1, amended; 1.6038B–2, amended; information reporting with respect to certain foreign partnerships and certain foreign corporations (TD 8850) 2, 265 26 CFR 1.6046A–1, added; return requirement for U.S. persons acquiring or disposing of an interest in a foreign partnership (TD 8851) 2, 275 26 CFR 301.6103(j)(5)–1T, added; disclosure of return information; Census of Agriculture (TD 8854) 3, 306 26 CFR 301.6104(d)–1, removed; 301.6104(d)–2, redesignated as 301.6104(d)–0, revised; 301.6104(d)–3, redesignated as 301.6104(d)–1, amended; 301.6104(d)–4, redesignated as 301.6104(d)–2, amended; 301.6104(d)–5, redesignated as 301.6104(d)–3, amended; 602.101(b), amended; private foundation disclosure rules (TD 8861) 5, 442 Reorganizations:

information letters issued by Associate Chief Counsel (RP1) 1, 4 Technical advice to district directors and

chiefs, appeals office from Associate Chief Counsel (RP 2) 1, 73 Variable annuity contracts; closing agree

long-term rates for: January 2000 (RR 1) 2, 250 Inventory:

LIFO: Price indexes; department stores:

November 1999 (RR 3) 3, 297 Letter rulings, determination letters and

information letters issued by Associate Chief Counsel (RP 1) 1, 4 Low-income housing credit; compliance amended; 1.42–17, added; compliance monitoring and miscellaneous issues relating to the low-income housing credit (TD 8859) 5, 429 26 CFR 1.338–0, –1, –2, –3, removed; 1.338–4, redesignated as 1.338–8; 1.338–5, redesignated as 1.338–9; 1.338–4T, –5T, –6T, –7T, –10T, added; 1.338(b)–1, added; 1.338(b)–2T, –3T, removed; 1.338(h)(10)–1, removed; 1.338(i)–1, removed; 1.338(i)–1T, added; 1.1060–1T, revised; purchase price allocations in deemed and actual asset acquisitions (TD 8858) 4, 332 26 CFR 1.871–14, revised; 1.1441–1, –4, –5, –6, –8, –9, revised; 1.1443–1, revised; 1.6042–3, revised; 1.6045–1, revised; 1.6049–5, revised; withholding of tax on certain U.S. source income paid to foreign persons; delay of effective date (TD 8856) 3, 298 26 CFR 1.988–0, amended; 1.988–2, amended; treatment of income and expenses from certain hyperinflationary currencies; nonperiodic payments (TD 8860) 5, 437 26 CFR 1.1366–0, –1, added;

monitoring (TD 8859) 5, 429 Partnerships:

Mergers and divisions

(REG–111119–99) 5, 455 Allocation of nonrecourse liabilities

(REG–103831–99) 5, 452 Postponement of tax-related deadlines;

service in combat zone or Presidentially declared disaster (REG–101492–98) 3, 326 Private foundation disclosure rules (TD

(REG–105606–99) 4, 421 S corporation passthrough items (TD

Solely for voting stock requirement

(Notice 1) 2, 288 Divisive mergers; definition (RR 5) 5,

436 Research credit; controlled group

8861. 5, 442 Proposed Regulations:

26 CFR 1.41–0, amended; 1.41–8, revised; credit for increasing research activities (REG–105606–99) 4, 421 26 CFR 1.118–2, added; contribution in aid of construction; definition (REG–106012–98) 2, 290

8852. 2, 253 Letter rulings, determination letters and

2000–6 I.R.B. v February 7, 2000

ments (Notice 9) 5, 449 Withholdings:

U.S. source income payments to for

eign persons; delay of effective date (TD 8856) 3, 298 Qualified intermediary withholding

agreements (RP 12) 4, 387

February 7, 2000 vi 2000–6 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.gov) or write to the IRS Bulletin Unit, OP:FS:FP:P:1, Room 5617, 1111 Constitution Avenue NW, Washington, DC 20224.

Official Business Penalty for Private Use, $300