SECTION 4. AREAS IN WHICH

RULING OR DETERMINATION LETTERS WILL NOT ORDINARILY BE ISSUED

.01 Specific Questions and Problems

(1) Section 367(a). - Transfers of Property from the United States. Whether an oil or gas working interest is

2003–1 I.R.B. 233 January 6, 2003

try for purposes of any United States tax treaty. Pursuant to § 1.884–5(f), however, the Service may rule whether a corporation representing that it is a resident of a country is a qualified resident thereof for purposes of § 884.

(15) Section 894. — Income Affected by Treaty. - Whether an entity is treated as fiscally transparent by a foreign jurisdiction for purposes of § 894(c) and the regulations thereunder.

(16) Section 901. - Taxes of Foreign Countries and of Possessions of United States. — Whether a foreign levy meets the requirements of a creditable tax under § 901.

(17) Section 901. - Taxes of Foreign Countries and of Possessions of United States. - Whether a person claiming a credit has established, based on all of the relevant facts and circumstances, the amount (if any) paid by a dual capacity taxpayer under a qualifying levy that is not paid in exchange for a specific economic benefit. See § 1.901–2A(c)(2).

(18) Section 903. — Credit for Taxes in Lieu of Income, Etc., Taxes. — Whether a foreign levy meets the requirements of a creditable tax under § 903.

(19) Sections 927(a) (Repealed), 936(h)(5), 943(a), 954(d), 993(c). — Manufactured Product. — Whether a product is manufactured or produced for purposes of § 927(a), § 936(h)(5), § 943(a), § 954(d), and § 993(c).

(20) Section 936. — Puerto Rico and Possession Tax Credit. - What constitutes a substantial line of business.

(21) Section 956. - Investment of Earnings in United States Property. Whether a pledge of the stock of a controlled foreign corporation is an indirect pledge of the assets of that corporation. See § 1.956–2(c)(2).

(22) Section 985. — Functional Currency. - Whether a currency is the functional currency of a qualified business unit.

(23) Section 989(a). - Qualified Business Unit. — Whether a unit of the taxpayer’s trade or business is a qualified business unit.

(24) Section 1058. - Transfers of Securities under Certain Agreements. Whether the amount of any payment described in § 1058(b)(2) or the amount of any other payment made in connection with a transfer of securities described in § 1058 is from sources within or without the United States; the character of such amounts; and

transferred from the United States for use in the active conduct of a trade or business for purposes of § 367(a)(3); and whether any other property is so transferred, where the determination requires extensive factual inquiry.

(2) Section 367(b). — Other Transfers. - Whether a foreign corporation is considered a corporation for purposes of any nonrecognition provision listed in § 367(b), and related issues, unless the ruling presents a significant legal issue or subchapter C rulings are requested in the context of reorganizations or liquidations involving foreign corporations.

(3) Section 864. - Definitions and Special Rules. — Whether a taxpayer is engaged in a trade or business within the United States, and whether income is effectively connected with the conduct of a trade or business within the United States; whether an instrument is a security as defined in § 1.864–2(c)(2); whether a taxpayer effects transactions in the United States in stocks or securities under § 1.864– 2(c)(2); whether an instrument or item is a commodity as defined in § 1.864–2(d)(3); and for purposes of § 1.864–2(d)(1) and (2), whether a commodity is of a kind customarily dealt in on an organized commodity exchange, and whether a transaction is of a kind customarily consummated at such place.

(4) Section 871. — Tax on Nonresident Alien Individuals. — Whether the income earned on contracts that do not qualify as annuities or life insurance contracts because of the limitations imposed by § 72(s) and § 7702(a) is portfolio interest as defined in § 871(h).

(5) Section 881. - Tax on Income of Foreign Corporations Not Connected with United States Business. — Whether the income earned on contracts that do not qualify as annuities or life insurance contracts because of the limitations imposed by § 72(s) and § 7702(a) is portfolio interest as defined in § 881(c).

(6) Section 892. - Income of Foreign Governments and of International Organizations. - Whether income received by local governmental authorities of the United Kingdom from certain United States investments of money allocable to their superannuation funds is exempt from federal income taxation.

(7) Section 892. - Income of Foreign Governments and of International Or

ganizations. - Whether a foreign government is engaged in commercial activities for purposes of § 892, and whether income received by a foreign government is derived from the conduct of such commercial activities.

(8) Section 893. — Compensation of Employees of Foreign Governments and International Organizations. — Whether a foreign government is engaged in commercial activities for purposes of § 893, and whether the services of an employee of a foreign government are primarily in connection with such commercial activities.

(9) Section 894. — Income Affected by Treaty. — Whether a taxpayer has a permanent establishment in the United States for purposes of any United States income tax treaty and whether income is attributable to a permanent establishment in the United States.

(10) Section 894. — Income Affected by Treaty. — Whether certain persons will be considered liable to tax under the laws of a foreign country for purposes of determining if such persons are residents within the meaning of any United States income tax treaty. But see Rev. Rul. 2000–59, 2000–2 C.B. 593. (11) Section 894. — Income Affected by Treaty.—Whether the income received by a nonresident alien student or trainee for services performed for a university or other educational institution is exempt from federal income tax or withholding under any of the United States income tax treaties which contain provisions applicable to such nonresident alien students or trainees.

(12) Section 894. — Income Affected by Treaty.—Whether the income received by a nonresident alien performing research or teaching as personal services for a university, hospital or other research institution is exempt from federal income tax or withholding under any of the United States income tax treaties which contain provisions applicable to such nonresident alien teachers or researchers.

(13) Section 894. — Income Affected by Treaty. - Whether a foreign recipient of payments made by a United States person is ineligible to receive the benefits of a United States tax treaty under the principles of Rev. Rul. 89–110, 1989–2 C.B. 275. (14) Section 894. — Income Affected by Treaty. - Whether a recipient of payments is or has been a resident of a coun

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