SECTION 1. PURPOSE AND

NATURE OF CHANGES

.01 The purpose of this revenue procedure is to update Rev. Proc. 2000–3, 2000–1 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 (Corporate), the Associate Chief Counsel (Financial Institutions & Products), the Associate Chief Counsel (Income Tax & Accounting), the Associate Chief Counsel (Passthroughs & Special Industries), the Associate Chief Counsel (Procedure and Administration), and the Division Counsel/Associate Chief Counsel (Tax Exempt and Government Entities) 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 Rev. Proc. 2001–7, 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. 2001–4, this Bulletin, and section 3.02 of Rev. Proc. 2001–6, this Bulletin. .02 Changes. (1) New section 2.03 is added to provide generally a rule that previously has been stated in various specific sections: that taxpayers may be required to make a representation with respect to matters on which the Service will not rule, in connection with obtaining rulings on other issues.

(2) New section 3.01(1), dealing with § 61 and how gross income is defined, is moved from old section 5.01.

(3) New section 3.01(4), dealing with § 101 and certain death benefits, is moved from old section 5.06.

(4) New section 3.01(5), dealing with § 101, 761, and 7701, is moved from old section 5.05.

(5) New section 3.01(6), dealing with § 105 and amounts received under accident and health plans, is moved from old section 5.07.

(6) New section 3.01(8), dealing with § 107 and rental value of parsonages, is moved from old section 5.08.

(7) New section 3.01(9), dealing with §115 and income of states, municipalities, etc., is added to indicate the Service’s unwillingness to rule as to whether income of certain state established membership organizations is excluded from gross income.

(8) New section 3.01(28), dealing with §§ 331, 453, and 1239 and the tax effects of installment sales of property between entities with common ownership, is moved from old section 5.15.

(9) New section 3.01(29) combines old sections 3.01(22)–(24), (26) and (27) (which include type A, B, E and F reorganizations), adds type C reorganizations, expands the no-rule concerning § 351 to include all asset transfers, eliminates the overlap prohibition ( i.e., the Service previously would not rule under any Code section if the transaction is described under both one of the enumerated no-rule sections and a section that is not included in the norule provisions), and provides that the Service will now rule on an entire transaction (not just the narrow significant issue) if there is a significant issue in the transaction.

(10) New section 3.01(37), dealing with § 453 and cross referencing new section 3.01(28), is moved from old section 5.18. (11) New section 3.01(38), dealing with § 457 and deferred compensation plans of state and local governments and taxexempt organizations, is moved from old section 5.19.

(12) New section 4.01(41), dealing with § 671 and trust income, deductions, and credits attributable to grantors and others as substantial owners, is moved from old section 5.22.

(13) New section 3.01(43), dealing with § 761 and cross referencing new section 3.01(5), is moved from old section 5.24. (14) New section 3.01(47), dealing with § 1239 and cross referencing new section 3.01(28), is moved from old section 5.25.

(15) New section 3.01(52), dealing with §§ 3121, 3306 and 3401 and concerning employment taxes, is moved from old section 5.31.

2001–1 I.R.B. 111 January 2, 2001

(30) New section 4.02(9) is moved from old section 3.02(4) because of a corresponding change in Rev. Proc. 2001–1 (see new section 5.14 of Rev. Proc. 2001–1). (31) Old sections 5.02, 5.03, 5.10, 5.11, 5.12, 5.13, 5.14, 5.16, 5.23 and 5.34 are deleted.

(32) Old sections 5.01, 5.05, 5.06, 5.07, 5.08, 5.09, 5.15, 5.18, 5.19, 5.23, 5.25, 5.31 and 5.33 are moved to corresponding new sections in section 3.01 (as indicated above).

(33) Old sections 5.04, 5.17, 5.21, 5.22, 5.28, 5.29 and 5.30 are moved to corresponding new sections in section 4.01 (as indicated above).

(34) New section 5.01, dealing with § 29 and credit for production and sale of qualified fuels, is added.

(35) New section 5.02, dealing with reimbursement arrangements under § 62(c), is added.

(36) New section 5.05, dealing with exceptions to § 1031 exchanges, is added.

(37) New section 5.09, dealing with § 7701 and whether arrangements where taxpayers acquire undivided fractional interests in real property constitute separate entities for federal tax purposes, is added.

(38) Old sections 6.01, 6.02, 6.03 and 6.05, dealing with matters covered by automatic approval procedures have been revised and/or updated.