SECTION 4. PROCEDURE

.01 Rev. Proc. 96–30 is modified by deleting section 4.04(1) through 4.04(7) and Appendices A and C, and amplified by adding new section 4.04(1) as follows:

(1) Detailed Description . Describe in narrative form each corporate business purpose for the distribution of the stock of Controlled. Do not provide any documentation or substantiation in support thereof. Submit the following REPRE- SENTATION : The distribution of the stock, or stock and securities, of the con- trolled corporation is carried out for the following corporate business purposes:

[list these corporate business purposes]. The distribution of the stock, or stock and securities, of the controlled corporation is motivated, in whole or substantial part, by one or more of these corporate business purposes. The Service will decline to issue a letter ruling in all cases in which the taxpayer fails to submit the required representation. The National Office will not determine whether the distribution is being carried out for one or more corporate business purposes. This determination may be made upon an examination of the taxpayer’s return.

.02 Rev. Proc. 96–30 is modified by deleting section 4.05(1) through 4.05(5) and amplified by adding new section 4.05(1) as follows: (1) Dispositions of stock or securi- ties. Submit the following REPRESEN- TATION : The transaction is not used prin- cipally as a device for the distribution of the earnings and profits of the distributing corporation or the controlled corporation or both. See § 355(a)(1)(B). The Service will decline to issue a letter ruling in all cases in which the taxpayer fails to submit the required representation. The National Office will not determine whether the transaction is used principally as a device for the distribution of the earnings and profits of the distributing corporation, the controlled corporation, or both. This determination may be made upon an examination of the taxpayer’s return.

.03 Rev. Proc. 96–30 is amplified by adding new section 4.08(12) as follows:

(12) Distributions in Connection with Acquisitions. Regarding whether there is a plan (or series of related transactions) under § 355(e)(2)(A)(ii), submit one of the following REPRESENTATIONS : (i) There is no acquisition of stock of the distributing corporation or any controlled corporation (including any predecessor or successor of any such corporation) that is part of a plan or series of related transac- tions (within the meaning of § 1.355–7T) that includes the distribution of the con- trolled corporation stock; (ii) Each of the following acquisitions of stock of the distributing corporation or any controlled corporation (including any predecessor or successor of any such corporation) is or may be part of a plan or series of re- lated transactions (within the meaning of § 1.355–7T) that includes the distribution of controlled corporation stock: [DE- SCRIBE ACQUISITIONS HERE]. Taking all of these acquisitions into account, stock representing a 50-percent or greater inter- est (within the meaning of § 355(d)(4)) in the distributing or controlled corporation (including any predecessor or succes- sor of any such corporation) will not be acquired by any person or persons; or (iii) The distribution is not part of a plan or series of related transactions (within the meaning of § 1.355–7T) pursuant to which one or more persons will acquire directly or indirectly stock representing a 50-percent or greater interest (within the meaning of § 355(d)(4)) in Distributing or Controlled (including any predecessor or successor of any such corporation) . If a representation cannot be submitted exactly as requested, an explanation must be given. The taxpayer must submit one of the three representations set forth above (as set forth above or in appropriately modified form to the satisfaction of the Service) before the Service will issue a letter ruling. While the National Office will not determine whether a distribution and an acquisition are part of a plan (or series of related transactions) under § 355(e)(2)(A)(ii), the Service may rule on related significant issues (as defined in section 3.01(29) of Rev. Proc. 2003–3, 2003–1 I.R.B. 113 at 115). The determination of whether a distribution and an acquisition are part of a plan (or series of

July 21, 2003 88 2003-29 I.R.B.

ruling requests filed after June 24, 2003, and on or before August 8, 2003.