1999 Chief Counsel's
Written Determinations
199935000 to 199939999
Taxpayer-specific rulings or determinations are written memoranda furnished by the
IRS National Office in response to requests by taxpayers under published annual
guidelines. Technical advice memoranda are written memoranda furnished by the
National Office of the IRS upon request of a district director or chief appeals officer
pursuant to annual review procedures. Chief Counsel advice are written advice or
instructions prepared by the Office of Chief Counsel and issued to field or service
center employees of the IRS or Office of Chief Counsel.
It is important to note that pursuant to 26 USC § 6110(j)(3), such items cannot be
used or cited as precedent.
All files below are in the Adobe Acrobat PDF Format.
| 199939035(PDF, 30K) |
9/21/1999 |
| Issue: Whether certain marketing and advertising costs incurred before regulatory approval of a product for sale are ordinary and necessary business expenses deductible under Internal Revenue Code § 162. |
| 199939034(PDF, 36K) |
10/1/1999 |
| Issue: Do the pre-levy notice and appeal procedures in Internal Revenue Code sec. 6330 apply to a levy made to collect a foreign tax liability for which a treaty partner has requested collection assistance? |
| 199939031(PDF, 28K) |
9/20/1999 |
| Issue: Whether the IRS Criminal Investigation Division can share the identities of three types of current criminal investigations with the North and South Carolina Departments of Revenue. |
| 199939030(PDF, 7K) |
9/20/1999 |
| April 27, 1999, and subsequent correspondence submitted by you as X's authorized representative on behalf of X, requesting a ruling under § 1362(b)(5) of the Internal Revenue Code. The information submitted states that X was incorporated on D1 of Year (1) A, X's president, represents that X was incorporated by its shareholders with the intention of electing subchapter S status for Year 1, its first taxable year. |
| 199939029(PDF, 14K) |
9/20/1999 |
| June 21, 1999, and prior correspondence, submitted on behalf of X requesting relief under § 1362(f) of the Internal Revenue Code. FACTS You have represented that the facts are as follows. X is a corporation organized under the laws of State which made a valid S corporation election effective D1. |
| 199939028(PDF, 10K) |
9/20/1999 |
| February 26, 1999, in which you requested a ruling on behalf of Parent and Subsidiary that under � 1504(a)(3)(B) of the Internal Revenue Code , the Service waive the general rule of � 1504(a)(3)(A) of the Code. Additional information was received in a letter dated June 28, 1999. |
| 199939027(PDF, 16K) |
9/20/1999 |
| March 26, 1999 letter, and prior correspondence, submitted on behalf of X, requesting rulings under § 1362(f) of the Internal Revenue Code and that X be given an extension of time to elect to treat Y as a Qualified Subchapter S Subsidiary for its taxable year beginning D4 under § 301.9100 of the Procedure and Administration Regulations. |
| 199939026(PDF, 8K) |
9/20/1999 |
| February 4, 1999 letter and subsequent correspondence submitted on behalf of X by X's authorized representative requesting relief under § 1362(b)(5) of the Internal Revenue Code. |
| 199939025(PDF, 16K) |
9/20/1999 |
| March 5, 1999, requesting rulings as to the federal income tax consequences of a proposed transaction. Additional information was provided by a letter dated June 10, 1999. |
| 199939024(PDF, 17K) |
9/20/1999 |
| May 24, 1999, and prior correspondence, in which you requested rulings concerning the generation-skipping transfer tax consequences of a division of a trust. Decedent executed her will in 1983 and amended it in 1986, 1989, and 1991. |
| 199939023(PDF, 12K) |
9/20/1999 |
| February 18, 1999, submitted on behalf of B requesting an extension of time pursuant to §301.9100-3(a) of the Procedure and Administration Regulations to file an election to be disregarded as an entity separate from its owner for federal tax purposes under § 301.7701-3(c). |
| 199939022(PDF, 9K) |
10/4/1999 |
| November 15, 1997, requesting a ruling under � 877(c) of the Internal Revenue Code of 1986 (the "Code" or "Internal Revenue Code") that A's loss of U.S. citizenship did not have for one of its principal purposes the avoidance of U.S. taxes under subtitle A or subtitle B of the Code. |
| 199939021(PDF, 14K) |
9/20/1999 |
| Issues: (1) Are the rebates paid pursuant to the coupon program described below includible in the taxpayer's gross income? (2) Are the payments to charity, pursuant to the coupon program, charitable contributions under § 170(a)? |
| 199939020(PDF, 7K) |
9/20/1999 |
| March 11, 1999, requesting a ruling on behalf of Company under § 1362(b)(5) of the Internal Revenue Code. The information submitted discloses that Company was incorporated on a in State. Company has two shareholders, Shareholders. It is represented that Company has intended to be an S corporation since its incorporation. |
| 199939019(PDF, 7K) |
9/20/1999 |
| Reference to a Form 1128, Application to Adopt, Change, or Retain a Tax Year, submitted on behalf of the above-named taxpayer, requesting permission to change its accounting period, for federal income tax purposes, from a taxable year ending, to a taxable year ending, effective The taxpayer has requested that the Form 1128 be considered timely filed under the authority contained in §301.9100-3 of the Procedure and Administration Regulations. |
| 199939018(PDF, 25K) |
9/20/1999 |
| Request of Taxpayer, dated March 12, 1999, for a revised schedule of ruling amounts in accordance with § 1.468A-3(i)(2) of the Income Tax Regulations. Taxpayer was previously granted a revised schedule of ruling amounts on May 24, 1994. Information for the schedule of ruling amounts was submitted on behalf of the Taxpayer pursuant to § 1.468A-3(h)(2). |
| 199939017(PDF, 22K) |
9/20/1999 |
| February 22, 1999, for rulings on the federal income tax consequences of a proposed transaction. Additional information was submitted in letters dated April 16, 1999 and June 25, 1999. |
| 199939016(PDF, 8K) |
9/20/1999 |
| February 25, 1999, requesting a ruling on behalf of Company under § 1362(b)(5) of the Internal Revenue Code. The information submitted discloses that Company was incorporated on a in State. Company has three shareholders, Shareholders. It is represented that Company has intended to be an S corporation since its incorporation. |
| 199939015(PDF, 9K) |
9/20/1999 |
| April 27, 1999, and subsequent correspondence, written on behalf of PRS, requesting a ruling that PRS be given an extension of time to elect to adjust the basis of partnership property pursuant to § 754 of the Internal Revenue Code. FACTS PRS is a domestic partnership organized under the laws of STATE. |
| 199939014(PDF, 29K) |
10/1/1999 |
| Issue: Whether Taxpayer properly recognized a loss on the sale of the stock of its subsidiary Mirror X. |
| 199939013(PDF, 7K) |
9/20/1999 |
| March 31, 1999, written on behalf of X, requesting a ruling under § 1362(b)(5) of the Internal Revenue Code that X's S corporation status will be effective as of the taxable year beginning D1. FACTS: According to the information submitted, X was incorporated on D1 and it was decided that X would be an S corporation. |
| 199939012(PDF, 21K) |
9/20/1999 |
| Requesting rulings concerning the income and generation-skipping transfer tax consequences of the proposed creation and funding of a revocable charitable subtrust. |
| 199939011(PDF, 22K) |
9/20/1999 |
| Requesting rulings concerning the income and generation-skipping transfer tax consequences of the proposed creation and funding of a revocable charitable subtrust. |
| 199939010(PDF, 22K) |
9/20/1999 |
| Requesting rulings concerning the income and generation-skipping transfer tax consequences of the proposed creation and funding of a revocable charitable subtrust. |
| 199939009(PDF, 86K) |
9/20/1999 |
| Issue: Whether X's claimed loss, upon the redemption of an intercompany note, is properly disallowed under Treasury Regulation § 1.1502-14(d)(4), as then in effect. |
| 199939008(PDF, 15K) |
9/20/1999 |
| November 10, 1998, written on behalf of X requesting inadvertent termination relief under § 1362(f) of the Internal Revenue Code. FACTS: X was incorporated on Date 1, and elected to be an S corporation effective Date (1) A, B, and Living Trust each owned m shares of X on Date 1. |
| 199939007(PDF, 13K) |
9/21/1999 |
| December 14, 1998, regarding the continued qualification of the Sponsor's Plan under � 457 of the Internal Revenue Code. The Sponsor is a municipal corporation and a political subdivision established under the State constitution to provide an integrated sewer system for the area. |
| 199939006(PDF, 29K) |
9/20/1999 |
| Issues: Whether, for purposes of computing an Internal Revenue Code § 165(g)1 worthless stock deduction in Year 3, P properly adjusted its basis in the stock of S1 pursuant to § 1.1502-32 of the Income Tax Regulations to account for (1) the accrued but uncollected interest ("ABUI") charged to the Special Reserve Account (the "SRA") by S1's lower-tier subsidiary S3, and subsequently paid to S3 by the Federal Savings and Loan Insurance Corporation ("FSLIC"), and (2) the interest accrued and paid to S3 on the overstated portion of the Net Worth Note (the "Note") issued by FSLIC to S3. |
| 199939005(PDF, 18K) |
9/20/1999 |
| February 25, 1999, in which rulings are requested as to the federal income tax consequences of a proposed transaction. Additional information was submitted in letters dated May 5, May 21, and June 16, 1999. |
| 199939004(PDF, 42K) |
9/24/1999 |
| Issue: Whether Internal Revenue Code § 4971(a) and (b) excise taxes should be classified as administrative claims pursuant to B.C. § 503(b), priority claims pursuant to B.C. § 507(a)(8), or general unsecured prepetition claims in debtor's bankruptcy proceeding. |
| 199939003(PDF, 37K) |
9/20/1999 |
| Issues: (1) Whether a timely executed Form 870-AD, Offer of Waiver of Restriction on Assessment and Collection of Deficiency in Tax and of Acceptance of Overassessment, constitutes a claim for refund of deficiency interest arising under the cInternal Revenue Codeumstances described. (2) If so, whether the period of limitations provided by � 6511 remains open, where a notice of disallowance has not been issued to the taxpayer. |
| 199939002(PDF, 25K) |
9/21/1999 |
| National Taxpayer Advocate has issued a Taxpayer Assistance Order (TAO) dated Date A, to the Service Center Director, Service Center X, directing the issuance of a refund to Taxpayers. This TAO was issued because the National Taxpayer Advocate concluded that the Service made a mistake in the process of crediting the account of the Taxpayers for the Date B year with an overpayment from the Date C year rather than refunding the amount to them. |
| 199939001(PDF, 33K) |
9/20/1999 |
| Facts & issue: As we understand the facts, State legislators may incur expenses in connection with their duties that are not reimbursed by the state. This raises the issue of whether those expenses are deductible only as miscellaneous itemized deductions on Schedule A, subject to the 2% floor imposed by Internal Revenue Code § 67 or are fully deductible because the legislators are eligible for the I.R.C. § 62(a)(2)(C). |
| 199938032(PDF, 32K) |
9/14/1999 |
| May 10, 1999, for technical language to be used in your response to a taxpayer inquiry received from the District Taxpayer Advocate's Office. This response is based on the assumption that the payments the taxpayer has received from his former employer are in fact based on a service connected injury or injuries under workmen's compensation law and are, therefore, exempt from taxation under § 104(a)(1) of the Internal Revenue Code. |
| 199938031(PDF, 62K) |
9/14/1999 |
| Issue: Whether U.S. source endorsement income earned by a nonresident alien artiste or sportsman, that is not attributable to a U.S. fixed base or permanent establishment, should be classified under U.S. income tax treaties as Royalties (Article 12), Independent or Dependent Personal Services income (Article 14 or Article 15), Artistes and Sportsmen income (Article 17) or Other Income (Article 21). |
| 199938030(PDF, 33K) |
9/14/1999 |
| Issues: (1) Whether the State Supreme Court Disciplinary Committee (Disciplinary Committee) may discuss certain aspects of a former tax case with retired Revenue Agent. In particular, the Disciplinary Committee would like information regarding conversations that Revenue Agent had with A while conducting the tax investigation of Corporation C. (2) Whether any provision of Internal Revenue Code § 6103 authorized the Disciplinary Committee to receive Revenue Agent's investigative history sheets on Corporation C. |
| 199938029(PDF, 10K) |
9/15/1999 |
| February 23, 1999, and subsequent correspondence submitted on X's behalf by X's authorized representative, requesting rulings concerning X's election to treat certain subsidiaries as qualified subchapter S subsidiaries (QSubs) under § 1361(b)(3)(B) of the Internal Revenue Code. The information submitted states that X was formed on D1 and elected to be an S corporation effective D1. |
| 199938028(PDF, 7K) |
9/15/1999 |
| February 25, 1999, and subsequent correspondence, written on behalf of X by its authorized representative, requesting a ruling under § 1362(b)(5) of the Internal Revenue Code. The information submitted states that X was incorporated on D1 of Year 1. |
| 199938027(PDF, 10K) |
9/14/1999 |
| December 30, 1998, in which Taxpayer requests an extension of time under Treasury Regulation § 301.9100-3 to file the agreement described in Treas. Reg. § 1.1503-2(g)(2)(i) and required under § 1.1503-2(g)(2)(iv)(B)(2)(iii) with respect to dual consolidated losses incurred in tax years ended Year One and Year Two. Additional information was submitted in a letter dated May 11, 1999. |
| 199938026(PDF, 9K) |
9/15/1999 |
| February 3, 1999, in which Taxpayer requests an extension of time under Treasury Regulation § 301.9100-3 to make the election provided by Internal Revenue Code § 953(d) in accordance with Notice 89-79, 1989-2 C.B. 392, 393. Additional information was submitted in letters dated June 14 and 16, 1999. |
| 199938025(PDF, 9K) |
9/14/1999 |
| February 5, 1999, submitted on behalf of Taxpayer, in which an extension of time under Treasury Regulation § 301.9100-3 is requested to permit Taxpayer to file Form 8279, Election To Be Treated as a FSC or as a Small FSC, as provided by Temp. Treas. Reg. § 1.921-1T(b)(1), Q&A 1, effective for the tax year beginning on Date A. |
| 199938024(PDF, 10K) |
9/14/1999 |
| March 22, 1999, requesting a rulings under § 2041(a) of the Internal Revenue Code. In 1969, Grantor and Spouse (Grantors) created Trust for the benefit of Son and his family. Article Second, Paragraph 1, of Trust provides the trustees with the authority to distribute the net income of Trust to Son and his living issue. |
| 199938023(PDF, 9K) |
9/14/1999 |
| Request submitted on behalf of Funds A, B, C, D and E (the "Funds"). The Funds request extensions of time pursuant to §301.9100-1(a) of the Procedure and Administration Regulations to elect under § 855(a) of the Internal Revenue Code. |
| 199938022(PDF, 21K) |
9/15/1999 |
| March 17, 1999 letter (and to your subsequent correspondence dated April 22 and May 11, 1999) requesting a ruling that the Plan is taxable as an insurance company under the provisions of § 831 of the Internal Revenue Code. Facts The Plan is an unincorporated statutory association of insurance carriers. |
| 199938021(PDF, 8K) |
9/14/1999 |
| May 25, 1999 request for a supplement to our letter ruling of March 25, 1999 (the "Prior Letter Ruling"). Capitalized terms retain the meanings originally assigned them. The Prior Letter Ruling addresses certain federal income tax consequences of an Exchange Offer under which Distributing shareholders can elect to exchange all or part of their Distributing Common Stock for Controlled Class B Stock. |
| 199938020(PDF, 7K) |
9/14/1999 |
| January 29, 1999, and subsequent correspondence, submitted on behalf of X, requesting a ruling under § 1362(b)(5) of the Internal Revenue Code. The information submitted states that X was incorporated on D1 of Year (1) The shareholders of X are A and B. |
| 199938019(PDF, 22K) |
9/14/1999 |
| February 26, 1999 requesting an extension of time under §§ 301.9100-1 through 301.9100-3 of the Procedure and Administration Regulations to file an election and a statement. Parent (as the common parent of the consolidated group) is requesting the extension of time to file an election under § 1.1502-20(g)(5)[(4)] of the Income Tax Regulations and a statement of allowed loss under § 1.1502-20(c)(3) (sometimes hereinafter collectively referred to as the "Elections" or "Election"), for its taxable year ending on Date X. |
| 199938018(PDF, 53K) |
9/14/1999 |
| Issue: Whether X Corp.'s transfer of $a to "M" mutual funds resulted in significant long- term benefits, requiring the entire amount to be capitalized pursuant to Internal Revenue Code§ 263. |
| 199938017(PDF, 9K) |
9/14/1999 |
| March 29, 1999, written on behalf of X, requesting a ruling that X be given an extension of time to elect to be taxed as a corporation for federal tax purposes for its taxable year beginning D1. |
| 199938016(PDF, 31K) |
9/14/1999 |
| Issue: Whether the Service may intentionally fail to issue timely notices of beginning of administrative proceeding (NBAP) so as to allow the taxpayers to elect out of TEFRA pursuant to � 6223(e). |
| 199938015(PDF, 7K) |
9/14/1999 |
| October 15, 1998, requesting a ruling on behalf of Company under § 1362(b)(5) of the Internal Revenue Code. The information submitted discloses that Company was incorporated on a in State. Company has one shareholder, Shareholder. |
| 199938014(PDF, 22K) |
9/14/1999 |
| Railroad Retirement Act Tax Status Attached for your information and appropriate action is a copy of a letter from the Railroad Retirement Board concerning the status under the Railroad Retirement Act and the Railroad Unemployment Insurance Act of: |
| 199938013(PDF, 16K) |
9/14/1999 |
| Request for a letter ruling dated October 22, 1998, concerning whether X is a religious order for purposes of the Internal Revenue Code and whether goods, services, and cash allowances received by members of X in connection with services performed by them in the exercise of duties required by X are subject to Federal Insurance Contributions Act (FICA) tax and federal income tax withholding. |
| 199938012(PDF, 11K) |
9/14/1999 |
| February 26, 1999, and subsequent correspondence written by your authorized representative on behalf of Company, requesting a ruling that Company's rental income from certain rental properties is not passive investment income within the meaning of § 1362(d)(3)(C)(i) of the Internal Revenue Code. |
| 199938011(PDF, 6K) |
9/14/1999 |
| November 25, 1998, and subsequent correspondence, submitted on behalf of X by X's authorized representative, requesting a ruling under § 1362(b)(5) of the Internal Revenue Code. The information submitted states that X was formed on Date (1) A, as X's president, represents that it was the intent of X's shareholders that X elect to be an S corporation effective for Year 1, X's first taxable year. |
| 199938010(PDF, 8K) |
9/14/1999 |
| February 15, 1999, requesting a ruling on behalf of Company under § 1362(b)(5) of the Internal Revenue Code. The information submitted discloses that Company was incorporated on a in State. Company has four shareholders, Shareholders. It is represented that Company has intended to be an S corporation since its incorporation. |
| 199938009(PDF, 7K) |
9/14/1999 |
| February 19, 1999, requesting a ruling on behalf of Company under § 1362(b)(5) of the Internal Revenue Code. The information submitted discloses that Company was incorporated on a in State. Company has two shareholders, Shareholders. It is represented that Company has intended to be an S corporation since its incorporation. |
| 199938008(PDF, 22K) |
9/14/1999 |
| Railroad Retirement Act Tax Status Attached for your information and appropriate action is a copy of a letter from the Railroad Retirement Board concerning the status under the Railroad Retirement Act and the Railroad Unemployment Insurance Act of: |
| 199938007(PDF, 62K) |
9/14/1999 |
| Issues: (1) Are transfers of the Px partnership interests by domestic affiliates of US1 and US2 to foreign partnerships FPshp1 and FPshp2, followed by transfers of the FPshp1 and FPshp2 partnership interests by the domestic affiliates to FCorp1, a foreign corporation, treated as transfers by each partner of its pro rata share of the partnership assets under � 367(a)(4) of the Code? Do the TEFRA partnership provisions under � 6221 - 6234 of the Code apply to the transfer of the partnership interests? (2) Assuming � 367(a)(4) applies to treat the transfer of the partnership interests as a transfer by each partner of its pro rata share of the partnership assets, did the partners make a permissible election under Treasury Regulation 1.367(d)-1T(g)(2) to treat the transfer of the partnerships' operating intangibles as a deemed sale at the date of the transfer?(3) Is the taxpayer required to recognize gain under � 904(f)(3) on the transfer to a foreign partnership of (i) tangible business assets, (ii) stock of foreign corporations, and (iii) operating intangibles? If so, to what separate limitation category under � 904(d) should the gain be assigned?(4) Does the gain recognized on the deemed sale of the operating intangibles under Treas. Reg. 1.367(d)-1T(g)(2) reduce the amount of foreign branch losses which is potentially recaptured as income under Treas. Reg. 1.367(a)-6T? |
| 199938006(PDF, 8K) |
9/15/1999 |
| Request dated April 20, 1999. This document is not to be cited as precedent. We have reviewed the MOU between the United State Department of Labor, Wage and Hour Division (USDOLWH), the Florida Department of Labor and Employment Security (FDLES) and the Service regarding the Farm Labor Contractor Licensing Project, which the North/South Carolina District would like to use as a model for its MOU. |
| 199938005(PDF, 17K) |
9/14/1999 |
| Issue: Is the value of the closely held stock transferred by Decedent to Partnership includible in Decedent's gross estate under § 2036(b), because, in his capacity as general partner, Decedent retained the right to vote the stock? |
| 199938004(PDF, 27K) |
9/23/1999 |
| Issue: Whether amounts offset under Internal Revenue Code § 6402(c) against an overpayment should be retrieved by the Service from the State of and credited to the taxpayer's account, when it is subsequently discovered that the taxpayer was not entitled to the refund against which the offset was applied. |
| 199938003(PDF, 43K) |
9/23/1999 |
| Issues: (1) Whether Taxpayer's method of accounting for the upfront payments received under the swap agreements and the premiums received for the swaptions clearly reflects income under Notice 89-21, 1989-1 C.B. 651, and Internal Revenue Code § 446. (2) With respect to the callable corporate debentures in issue, whether the clear reflection of income requirement of � 446(b) requires Taxpayer to amortize certain call premium and accrued interest expenses (which would otherwise be deductible in full in the year incurred) in the same fashion as, and over the same time period that, the related up front payments from the swaps and premiums for the swaptions are taken into income.(3) Whether the transactions in issue lacked economic substance and should be disregarded for tax purposes. |
| 199938002(PDF, 28K) |
9/14/1999 |
| Proposed advice to the Chief, Examination Division,, and we have the following comments. We concur with the proposed consent directives as drafted. Per our e-mail messages, the proposed summonses should be redrafted to request documents for the period January 1, 1996, through December 31, 1997, since the 1996 and 1997 tax years are being examined, and it does not appear from the information that you have provided that documents for prior and subsequent periods are relevant to the examination. |
| 199938001(PDF, 22K) |
9/23/1999 |
| Issue: Whether a Court opinion involving the same taxpayer has collateral estoppel consequences with respect to a pending Tax Court proceeding. |
| 199937041(PDF, 50K) |
9/7/1999 |
| Issue: Whether service members assigned to NATO are eligible to elect the � 911 exclusion. |
| 199937040(PDF, 22K) |
9/7/1999 |
| June 22, 1999, which ruled on a proposed transaction described in a letter dated December 18, 1998. FACTS: Parent is the common parent of an affiliated group of corporations which includes Company and which files a consolidated return with Company. |
| 199937039(PDF, 27K) |
9/7/1999 |
| Issue: Whether the Service should issue an individual taxpayer identification number (ITIN) to an individual who requests the ITIN solely for the purpose of obtaining a driver's license. |
| 199937038(PDF, 44K) |
9/7/1999 |
| Request our views on this issue based on the following fact patterns: (1) FC2 elects to check the box, or liquidates into FC1, immediately prior to the sale transaction. (2) FC2 elects to check the box, or liquidates into FC1, at the time FC1 enters into a contract for sale, but the actual sale transaction is not consummated for a period of time (e.g. 3 months or less). |
| 199937037(PDF, 8K) |
9/8/1999 |
| February 10, 1999 ruling request and subsequent correspondence submitted on behalf of Company concerning § 1362(d)(3) of the Internal Revenue Code. Historically, Company and several wholly owned subsidiaries comprised a consolidated return group for federal income tax purposes. |
| 199937036(PDF, 10K) |
9/7/1999 |
| January 20, 1999, and subsequent correspondence, submitted on behalf of Fund A and Fund B (Funds) requesting an extension of time for each Fund to make an election under § 851(b)(1) of the Internal Revenue Code to be treated as a regulated investment company (RIC) beginning with its initial taxable year. |
| 199937035(PDF, 9K) |
9/7/1999 |
| February 10, 1999, letter on behalf of your client, Taxpayer, in which you request rulings as to the following: (1) Whether the communications excise tax imposed by § 4251 of the Internal Revenue Code applies to amounts paid to Taxpayer for its "telecommunications based processing transactions and software download services" (the Services). (2) Whether amounts paid by Taxpayer to purchase "bulk telecommunication services" from communications providers are subject to the § 4251 tax. |
| 199937034(PDF, 10K) |
9/7/1999 |
| January 31, 1999, and subsequent correspondence submitted by you on behalf of X as X's authorized representative, requesting rulings under §§ 1362 and 1375 of the Internal Revenue Code. |
| 199937033(PDF, 30K) |
9/7/1999 |
| January 26, 1999 request for rulings on certain federal income tax consequences of a proposed transaction. |
| 199937032(PDF, 13K) |
9/7/1999 |
| February 17, 1999, and subsequent correspondence, requesting a ruling on behalf of Bank. The requested ruling concerns whether the reduction of Bank's loans outstanding that resulted from the transfer of loans described below requires recapture of Bank's suspended reserves for bad debts. |
| 199937031(PDF, 27K) |
9/7/1999 |
| Withdrawl of application for change in accounting method in accordance with � 8.07(2) of Rev. Proc. 99-1, 1999 I.R.B. 6, 34, this memorandum advises you that a taxpayer within your district has withdrawn a Form 3115, Application for Change in Accounting Method. |
| 199937030(PDF, 9K) |
9/7/1999 |
| April 16, 1999, written on behalf of PRS, requesting a ruling that PRS be given an extension of time to elect to adjust the basis of partnership property pursuant to § 754 of the Internal Revenue Code. |
| 199937029(PDF, 11K) |
9/7/1999 |
| December 1, 1997, from your authorized representative requesting a ruling under � 877(c) of the Internal Revenue Code of 1986 that your loss of long-term resident status (expatriation) did not have for one of its principal purposes the avoidance of U.S. taxes under subtitle A or subtitle B of the Code. Additional information was submitted in letters dated December 19, 1997, and October 13, 1998, and March 8, March 11, and April 6, 1999. |
| 199937028(PDF, 7K) |
9/7/1999 |
| December 14, 1998, and subsequent correspondence, submitted on behalf of X, requesting a ruling under § 1362(b)(5) of the Internal Revenue Code. The information submitted states that X was incorporated on D1. |
| 199937027(PDF, 11K) |
9/8/1999 |
| December 12, 1998, submitted by your authorized representative requesting a ruling under � 877(c) of the Internal Revenue Code of 1986 that your loss of lawful permanent U.S. resident status did not have for one of its principal purposes the avoidance of U.S. taxes under subtitle A or subtitle B of the Code. |
| 199937026(PDF, 22K) |
9/8/1999 |
| February 10, 1999, requesting a ruling concerning the application of § 2632 of the Internal Revenue Code to certain trusts established under the terms of an irrevocable trust agreement. This letter responds to that request. |
| 199937025(PDF, 9K) |
9/8/1999 |
| February 26, 1999, in which you requested a supplemental ruling that the proposed liquidation of Target will have no effect upon the validity of the rulings contained in PLR 199908036 issued by our office on December 1, 1998 ("Prior Letter Ruling"). |
| 199937024(PDF, 16K) |
9/8/1999 |
| May 10, 1999, submitted on behalf of Agency and Partnership, requesting a private letter ruling under § 42(n)(4) of the Internal Revenue Code and § 1.42-13(b) of the Income Tax Regulations to correct an administrative error in an allocation of the low-income housing tax credit dollar amounts. |
| 199937023(PDF, 10K) |
9/8/1999 |
| February 26, 1999 request (as amended in later correspondence) for a supplement to (i) the ruling letter we issued to Distributing 2 on December 16, 1998 (the "Ruling Letter") and (ii) certain other ruling letters described in the Ruling Letter (collectively, the "Prior Rulings"). Capitalized terms retain the meanings assigned in the Prior Rulings. |
| 199937022(PDF, 34K) |
9/8/1999 |
| Issue: Whether taxpayer may rely on Proposed Treasury Regulation § 1.168-6(a)(3) to take a loss deduction on its fiscal year Date 1 tax return for a manufacturing facility actually sold in fiscal year Date 2. |
| 199937021(PDF, 8K) |
9/8/1999 |
| March 3, 1999, submitted by your authorized representative requesting a ruling under � 877(c) of the Internal Revenue Code of 1986 that your loss of lawful permanent U.S. resident status did not have for one of its principal purposes the avoidance of U.S. taxes under subtitle A or subtitle B of the Code. |
| 199937020(PDF, 14K) |
9/8/1999 |
| Issues: (1) Whether an election made by Taxpayer under � 172(b)(3)(C)1 of the Internal Revenue Code to relinquish the carryback period with respect to a net operating loss may be disregarded based on a material mistake of fact. (2) Whether Taxpayer's election under � 172(b)(3)(C) is technically defective. |
| 199937019(PDF, 12K) |
9/8/1999 |
| February 26, 1999 request (as amended in later correspondence) for a supplement to (i) the ruling letter we issued to Distributing 2 on December 16, 1998 (the "Ruling Letter") and (ii) certain other ruling letters described in the Ruling Letter (collectively, the "Prior Rulings"). Capitalized terms retain the meanings assigned in the Prior Rulings. |
| 199937018(PDF, 7K) |
9/8/1999 |
| January 16, 1999, and subsequent correspondence, requesting a ruling under § 1362(b)(5) of the Internal Revenue Code. The information submitted states that X was incorporated on D1 of Year (1) The sole shareholder of X is A. |
| 199937017(PDF, 6K) |
9/8/1999 |
| Requests relief under §1362(b)(5) of the Internal Revenue Code. FACTS: X began doing business on Date (1) The shareholder desired S corporation treatment for X, effective Date 1, but an election to be treated as an S corporation was not timely filed. |
| 199937016(PDF, 8K) |
9/8/1999 |
| January 19, 1999, requesting a ruling under � 1362(b)(5) of the Code that will be treated as an S corporation for Year 1 and Year (2) |
| 199937015(PDF, 7K) |
9/7/1999 |
| December 30, 1998, requesting a ruling on behalf of Company under § 1362(b)(5) of the Internal Revenue Code. The information submitted discloses that Company was incorporated on a in State. Company has one shareholder, Shareholder. It is represented that Company has intended to be an S corporation since its incorporation. |
| 199937014(PDF, 18K) |
9/7/1999 |
| October 2, 1998, in which you requested rulings on behalf of the above-captioned taxpayers. Specifically, you requested rulings under § 355 of the Internal Revenue Code. Additional information regarding your request has been submitted in letters dated December 16, 1998; December 21, 1998; January, 13, 1999; March 17, 1999; and March 30, 1999. |
| 199937013(PDF, 10K) |
9/7/1999 |
| October 2, 1998, in which you requested rulings on behalf of the above-captioned taxpayers. Specifically, you requested rulings under § 355 of the Internal Revenue Code. Additional information regarding your request has been submitted in letters dated December 16, 1998; December 21, 1998; January, 13, 1999; March 17, 1999; and March 30, 1999. |
| 199937012(PDF, 56K) |
9/7/1999 |
| Issue: Whether employees working in institutions leased by Taxpayer are common law employees of Taxpayer, rather than employees of the institution owners. |
| 199937011(PDF, 21K) |
9/7/1999 |
| February 6, 1999, for rulings relating to the federal income tax consequences of a proposed and partially completed transaction. You submitted additional information in letters dated May 1, 1999, May 18, 1999, May 26, 1999, and June 4, 1999. |
| 199937010(PDF, 28K) |
9/7/1999 |
| Issue: Whether Taxpayer, a mortgage guaranty insurer, may increase its unpaid loss reserve upon notification by the insured lender that the loan is in default, or whether it is precluded from increasing its reserves until foreclosure proceedings have been completed. |
| 199937009(PDF, 12K) |
9/7/1999 |
| December 21, 1998, as well as subsequent correspondence, submitted on behalf of Company, requesting a ruling that the rental income received by Company from the Properties is not passive investment income within the meaning of § 1362(d)(3)(C)(i) of the Internal Revenue Code. |
| 199937008(PDF, 26K) |
9/7/1999 |
| October 26, 1998, in which you requested rulings under § 355 of the Internal Revenue Code. The information submitted in that letter and later correspondence is summarized below. Distributing, a State A corporation, is the parent of a consolidated group of corporations and uses the accrual method of accounting. |
| 199937007(PDF, 38K) |
9/7/1999 |
| Issue: (1) Whether the taxpayer in the instant case meets the SRLY exception under Treasury Regulation § 1.1502-1(f)(2)(ii). (2) Whether Service position is that the member-by-member SRLY fragmentation rules under Treas. Reg. § 1.1502-21(c) apply for the tax year at issue. (3) What litigation hazards exist in taking the position that the member-by-member SRLY fragmentation rules under Treas. Reg. § 1.1502-21(c) apply for the tax year at issue? |
| 199937006(PDF, 29K) |
9/8/1999 |
| Issue: May the Internal Revenue Service retain a refund for the taxable year 1999 where an offer in compromise is accepted during 1999 and the Form 656 states that refunds for tax periods extending through the calendar year that the offer is accepted will be retained but the acceptance letter states that refunds made in 1999 for the prior tax year will be retained. |
| 199937005(PDF, 32K) |
9/7/1999 |
| Issue: Whether Taxpayer may reduce its basis in other property under Internal Revenue Code § 1071 and Treasury Regulation § 1.1071-2(a)(3) in the absence of a prior election to do so. |
| 199937004(PDF, 26K) |
9/7/1999 |
| Proposed motion in the above case. You noted that the is sending Notices of Deficiency to non- filers asserting a penalty under Internal Revenue Code § 6651(a)(2). The service center is not preparing substitutes for returns pursuant to I.R.C. § 6020. You correctly concluded that the penalty under I.R.C. § 6651(a)(2) cannot be asserted if no return or substitute for return is filed. See Rev. Rul. 76-562, 1976-2 C.B. 430; Johnson v. Commissioner, T.C. Memo. 1983-398, 46 T.C.M. (CCH) 694. |
| 199937003(PDF, 48K) |
9/7/1999 |
| Issues: (1) Whether the Receiver of S Corporation has standing to file a refund claim for income tax withheld, and FICA tax withheld and paid, with respect to the unreasonable portion of the salary paid to Shareholder. (2) Whether the Receiver's actions satisfy S Corporation's duty to first adjust overpaid employee FICA tax before filing a refund claim for its portion of the FICA tax. |
| 199937002(PDF, 28K) |
9/8/1999 |
| Issue: Whether a federal tax lien that arose after decedent's death attaches to the proceeds of a decedent's individual retirement annuity? |
| 199937001(PDF, 55K) |
9/7/1999 |
| November 25, 1998 request for rulings on certain federal income tax consequences of a partially completed series of transactions. Summary of Facts Distributing is the common parent of an affiliated group of corporations that files a consolidated federal income tax return. Distributing has outstanding one class of common stock ("Distributing Common Stock") and one class of preferred stock ("Distributing Preferred Stock"), both of which are widely held and publicly traded. |
| 199936044(PDF, 49K) |
9/1/1999 |
| Issues: You have asked us to address the following issues (1) Are participation payments covered under the deferred compensation provisions of � 404(a) and (d) of the Code? (2) How does Transamerica Corp. v. United States, 999 F.2d 1362 (9th Cir. 1993), affect the analysis in (1)? (3) How does � 404 apply when participation payments are made to a personal service corporation formed by an actor or director (a "loan out" corporation)? (4) Does the "2�-month rule" of Treasury Regulation §1.404(b)-1T apply to each contract entered into with a producer, director, actor, or other service provider that provides for payments of participations? (5) How does � 404(a)(5) apply to a payor on a fiscal tax year when participation payments are paid to an actor who is a cash-basis calendar year taxpayer? |
| 199936043(PDF, 22K) |
8/30/1999 |
| Railroad Retirement Act Tax Status Attached for your information and appropriate action is a copy of a letter from the Railroad Retirement Board concerning whether the services performed by for may be credited as railroad services for purposes of determining benefit entitlement under the Railroad Retirement Act and the Railroad Unemployment Insurance Act. |
| 199936042(PDF, 6K) |
8/30/1999 |
| Form 1128, Application to Adopt, Change, or Retain a Tax Year, submitted on behalf of the above-named taxpayer, requesting permission to change its accounting period, for federal income tax purposes, from a taxable year ending, to a taxable year ending, effective The taxpayer has requested that the Form 1128 be considered timely filed under the authority contained in §301.9100-3 of the Procedure and Administration Regulations. |
| 199936041(PDF, 37K) |
8/30/1999 |
| Issues: (1) Whether the Service may levy upon and collect the assets in a taxpayer's pension plan when the taxpayer has no immediate right to commence receipt of benefits but has a vested right to future distribution. (2) Whether the Service can levy upon and collect the assets in a taxpayer's pension plan when the taxpayer has an immediate right to elect early retirement benefits but has not yet made an election. |
| 199936040(PDF, 11K) |
8/30/1999 |
| February 8, 1999, and subsequent correspondence submitted by your authorized representative on behalf of Company, requesting a ruling that Company's income from certain properties is not passive investment income within the meaning of § 1362(d)(3)(C)(i) of the Internal Revenue Code. |
| 199936039(PDF, 9K) |
8/30/1999 |
| February 10, 1999, submitted on behalf of X requesting that we rule that X may make an S election and Qualified Subchapter S Subsidiary elections as to Y and Z effective D3. |
| 199936038(PDF, 10K) |
8/30/1999 |
| June 11, 1999, and prior correspondence, in which you request several rulings concerning the application of § 2702 of the Internal Revenue Code. Settlor A and Settlor B propose to establish an irrevocable charitable lead unitrust, Trust. |
| 199936037(PDF, 7K) |
8/30/1999 |
| March 17, 1999, requesting a ruling on behalf of Company under § 1362(b)(5) of the Internal Revenue Code. The information submitted discloses that Company was incorporated on a in State. Company has two shareholders, Shareholders. |
| 199936036(PDF, 12K) |
8/30/1999 |
| May 14, 1999, and prior correspondence, in which you request a ruling concerning the application of §§ 2511 and 2519 of the Internal Revenue Code to a proposed transaction. Under Decedent's will, executed on Date 1, Decedent bequeathed the residue of his estate to a revocable trust that Decedent and Spouse had created on Date (2) On Date 3, prior to Decedent's death, the revocable trust, was amended, restated, and renamed (Trust). |
| 199936035(PDF, 8K) |
8/30/1999 |
| Requests relief under §1362(b)(5) of the Internal Revenue Code. FACTS: X was incorporated on Date (1) The shareholders desired S corporation treatment for X, effective Date 1, but an election to be treated as an S corporation was not timely filed. |
| 199936034(PDF, 8K) |
8/30/1999 |
| Requests relief under §1362(b)(5) of the Internal Revenue Code. FACTS: X was incorporated on Date (1) The shareholders desired S corporation treatment for X, effective Date 1, but an election to be treated as an S corporation was not timely filed. |
| 199936033(PDF, 8K) |
9/1/1999 |
| May 11, 1999, submitted on behalf of X, requesting relief under § 1362(b)(5) of the Internal Revenue Code. FACTS: X was incorporated on Date (1) The shareholders of X desired that X elect S corporation treatment for X, effective on Date 1, but the election to be treated as an S corporation was not timely filed. Accordingly, X requests a ruling that it will be treated as an S corporation effective Date 1. |
| 199936032(PDF, 11K) |
8/30/1999 |
| July 15, 1998, and supplemental correspondence submitted on behalf of Taxpayer, in which you requested a ruling that Taxpayer is treated as a trust for federal income tax purposes under § 301.7701-4 of the Procedure and Administration Regulations. |
| 199936031(PDF, 28K) |
8/30/1999 |
| August 11, 1998, and subsequent correspondence, in which you requested rulings concerning the federal income, gift, and estate tax consequences of the creation of a proposed guaranteed annuity trust. |
| 199936030(PDF, 28K) |
8/30/1999 |
| Request submitted on behalf of Claimant regarding the application of § 104(a)(2) of the Internal Revenue Code to certain payments received by Claimant in a factoring transaction. FACTS: Claimant is an individual residing in State M. Claimant uses the cash receipts and disbursement method of accounting for filing his federal income tax returns. |
| 199936029(PDF, 12K) |
8/30/1999 |
| December 30, 1998, and subsequent correspondence, in which a ruling was requested concerning the federal gift and estate tax consequences of the Court Order construing and modifying Trust. |
| 199936028(PDF, 8K) |
8/30/1999 |
| February 3, 1999, and subsequent correspondence, written on behalf of X, requesting a ruling under § 1362(b)(5) of the Internal Revenue Code. |
| 199936027(PDF, 7K) |
8/30/1999 |
| March 16, 1999, requesting a ruling on behalf of Company under § 1362(b)(5) of the Internal Revenue Code. The information submitted discloses that Company was incorporated on a under the laws of State. Company has two shareholders, Shareholders. |
| 199936026(PDF, 24K) |
9/1/1999 |
| February 26, 1999, for a revised schedule of ruling amounts in accordance with § 1.468A-3(i)(2) of the Income Tax Regulations. Taxpayer was previously granted a revised schedule of ruling amounts on June 18, 1996. Information for the schedule of ruling amounts was submitted on behalf of the Taxpayer pursuant to § 1.468A-3(h)(2). |
| 199936025(PDF, 24K) |
8/30/1999 |
| February 26, 1999, for a revised schedule of ruling amounts in accordance with § 1.468A-3(i)(2) of the Income Tax Regulations. Taxpayer was previously granted a revised schedule of ruling amounts on June 18, 1996. Information for the schedule of ruling amounts was submitted on behalf of the Taxpayer pursuant to § 1.468A-3(h)(2). |
| 199936024(PDF, 13K) |
8/30/1999 |
| February 10, 1999, request for rulings on certain federal income tax consequences of a proposed transaction. The information in that request is summarized below. Summary of Facts Mutual Bank is a federally chartered mutual savings association engaged in banking and banking related business in State X. |
| 199936023(PDF, 11K) |
8/30/1999 |
| April 15, 1999, together with subsequent correspondence, submitted on behalf of Company, requesting a ruling that the rental income received by Company from certain properties is not passive investment income within the meaning of � 1362(d)(3)(C)(i) of the Code. |
| 199936022(PDF, 10K) |
8/30/1999 |
| December 1, 1998 submitted on behalf of Taxpayer requesting an extension of time to elect to treat suspended investment interest expense as amounts allocable to a passive activity pursuant to Notice 89-36, 1989-1 C.B. 677, and � 1005(c)(11) of the Technical and Miscellaneous Revenue Act of 1988 (TAMRA), Pub. L. No. 100-647, 102 Stat. 3342. |
| 199936021(PDF, 18K) |
8/30/1999 |
| July 24, 1998, on behalf of Portfolio, requesting a ruling under § 704(c) of the Internal Revenue Code. Specifically, a ruling has been requested that Portfolio may aggregate built-in gains and losses from qualified financial assets contributed to Portfolio with built-in gains and losses from revaluations of qualified financial assets held by Portfolio for making § 704(c)(1)(A) and reverse § 704(c) allocations. |
| 199936020(PDF, 18K) |
8/30/1999 |
| July 24, 1998, on behalf of Portfolio, requesting a ruling under § 704(c) of the Internal Revenue Code. Specifically, a ruling has been requested that Portfolio may aggregate built-in gains and losses from qualified financial assets contributed to Portfolio with built-in gains and losses from revaluations of qualified financial assets held by Portfolio for making § 704(c)(1)(A) and reverse § 704(c) allocations. |
| 199936019(PDF, 18K) |
8/30/1999 |
| July 24, 1998, on behalf of Portfolio, requesting a ruling under § 704(c) of the Internal Revenue Code. Specifically, a ruling has been requested that Portfolio may aggregate built-in gains and losses from qualified financial assets contributed to Portfolio with built-in gains and losses from revaluations of qualified financial assets held by Portfolio for making § 704(c)(1)(A) and reverse § 704(c) allocations. |
| 199936018(PDF, 7K) |
9/1/1999 |
| Request, dated, and the supplemental information submitted by Taxpayers, dated, and. Taxpayers request a ruling that Vehicle is neither a passenger automobile as defined in § 280F(d)(5) of the Internal Revenue Code nor listed property as defined in § 280F(d)(4) and that § 280F does not limit Taxpayer's depreciation deductions for Vehicle. |
| 199936017(PDF, 8K) |
8/30/1999 |
| February 8, 1999, submitted on behalf of X, requesting relief under §1362(b)(5) of the Internal Revenue Code. FACTS: X was incorporated on D1 and began doing business on D2. The shareholders of X desired that X make an election to be treated as an S corporation effective on D2, but the election to be treated as an S corporation was not timely filed. |
| 199936016(PDF, 14K) |
8/30/1999 |
| May 13, 1999, and prior correspondence, submitted on behalf of Y requesting an extension of time pursuant to § 301.9100-3(a) of the Procedure and Administration Regulations to file an election to be disregarded as an entity separate from its owner for federal tax purposes under § 301.7701-3(c). FACTS Fund3 is a limited partnership formed under the laws of State. Fund3 is the sole owner of Y, an entity formed under the laws of Country1 on D1. Y represents that Fund3 has limited liability as to the debts of or claims against Y. |
| 199936015(PDF, 14K) |
8/30/1999 |
| May 13, 1999, and prior correspondence, submitted on behalf of Y requesting an extension of time pursuant to § 301.9100-3(a) of the Procedure and Administration Regulations to file an election to be treated as a partnership for federal tax purposes under § 301.7701-3(c). |
| 199936014(PDF, 14K) |
8/30/1999 |
| May 13, 1999, and prior correspondence, submitted on behalf of Y requesting an extension of time pursuant to § 301.9100-3(a) of the Procedure and Administration Regulations to file an election to be disregarded as an entity separate from its owner for federal tax purposes under § 301.7701-3(c). |
| 199936013(PDF, 15K) |
8/30/1999 |
| May 13, 1999, and prior correspondence, submitted on behalf of Y requesting an extension of time pursuant to § 301.9100-3(a) of the Procedure and Administration Regulations to file an election to be disregarded as an entity separate from its owner for federal tax purposes under § 301.7701-3(c). |
| 199936012(PDF, 71K) |
8/30/1999 |
| Lease Stripping The facts are as laid out in the proposed RAR (the "report"). The analysis described below is stated in general terms. That is, it is generally applicable to lease stripping transactions. However, not all arguments are applicable to all lease stripping transactions. |
| 199936011(PDF, 38K) |
8/30/1999 |
| Issues: (1) Whether a payment by the limited liability company to a partner is treated as a sale or exchange under � 707. (2) Whether the anti-abuse regulations promulgated under � 701 apply to the transaction. |
| 199936010(PDF, 24K) |
8/30/1999 |
| Submitted on behalf of Estate, of which you are Executor. Rulings are sought concerning the application of § 2055(e)(3) of the Internal Revenue Code to the proposed reformation of Trust, of which you are Trustee. |
| 199936009(PDF, 77K) |
8/30/1999 |
| Issues: (1) Whether several series of Bonds (as defined hereafter) issued by a number of school districts to provide financing to all school districts within a state are arbitrage bonds where the proceeds of the Bonds were placed in a guaranteed investment contract with an earnings rate above the stated interest rate on the Bonds. (2) Whether the six month temporary period under Internal Revenue Code § 148(c)(2)(A) applies where the proceeds of the Bonds are to be used to provide financing to all school districts within a state.(3) Whether the debt service reserve fund was not reasonable due to the existence of a state program that directs appropriations from a defaulting school district to the bondholders of such school district.(4) Whether each series of Bonds issued in an amount less than $5,000,000 meets the small issuer exception for rebate provided in I.R.C. 148(f)(4)(D).(5) Whether the Bonds are subject to rebate as pooled financing issues under the provisions of Treasury Regulation § 1.148-8(d)(1).(6) Whether the Bonds were issued for the purpose of avoiding the $5,000,000 size limitation of I.R.C. § 148(f)(4)(D).(7) Whether the issuance of the Bonds violates the anti-abuse rules of Treas. Reg. § 1.148-10. (8) Whether fees paid to the issuers from the proceeds of the Bonds in return for issuing the Bonds are unspent proceeds. |
| 199936008(PDF, 8K) |
8/30/1999 |
| January 15, 1999, requesting rulings under � 280G and 4999 of the Internal Revenue Code. Specifically, you requested rulings that the merger of Corporation B into Corporation A constitutes a change of ownership in Corporation A under � 280G of the Code; this merger does not constitute a change in the ownership or effective control of Corporation B or a substantial portion of its assets under � 280G; and no part of any payments made by Corporation A to a former officer or executive of Corporation B as a result of the merger is subject to the excise tax under � 4999. |
| 199936007(PDF, 51K) |
9/12/1999 |
| Issue: Whether � 482 may apply to prevent a misallocation of income and deductions when burned-out leveraged leases are contributed to a limited liability corporation (treated for Federal income tax purposes as a partnership) that is controlled by the contributing member and almost all of the "phantom" income from the leases is specially allocated to a foreign (tax- exempt) minority partner. |
| 199936006(PDF, 31K) |
9/12/1999 |
| Issue: Whether litigating hazards exist in arguing that A's sale of the assets to B is in substance a distribution of those assets from B to A, followed by a capital contribution from CC to B, in light of the Tax Court's opinion in Turner Broadcasting System, Inc. v. Commissioner, 111 T.C. 315 (1998). |
| 199936005(PDF, 6K) |
8/30/1999 |
| Form 1128, Application to Adopt, Change, or Retain a Tax Year, submitted on behalf of the above-named taxpayer, requesting permission to change its accounting period, for federal income tax purposes, from a taxable year ending, to a taxable year ending, effective The taxpayer has requested that the Form 1128 be considered timely filed under the authority contained in §301.9100-3 of the Procedure and Administration Regulations. |
| 199936004(PDF, 31K) |
8/30/1999 |
| Requested several rulings on your behalf concerning the proposed testamentary exercise of a limited power of appointment granted to you as the beneficiary of trust that is currently exempt from the generation-skipping transfer tax. This letter is in response to that request and several subsequent submissions from your authorized representative. |
| 199936003(PDF, 32K) |
9/1/1999 |
| December 31, 1998, in which you ask that our office pre-review your proposed response to an advisory request from the Appeals Office in the. The case you describe involves a taxpayer who operated a business as a sole-proprietorship before. Thereafter, the taxpayer implemented a strategy to avoid federal taxes by using trusts and a Limited Liability Company (LLC). |
| 199936002(PDF, 46K) |
8/30/1999 |
| Issue: Whether net operating losses sustained by Taxpayer as a result of payments made in connection with various lawsuits, workers compensation claims, state tax liabilities, and interest on federal income and state tax liabilities are specified liability losses qualified for the ten-year carryback period under the provisions of Internal Revenue Code §§ 172(b)(1)(C) and 172(f)(1). |
| 199936001(PDF, 13K) |
9/1/1999 |
| Issues: (1) Where a member of a consolidated group has an overpayment of tax for a taxable year prior to its affiliation with the group, may the Internal Revenue Service credit such overpayment against an outstanding income tax liability of the group for a taxable year in which the member joined in the filing of a consolidated return? (2) Whether the Service may apply the net interest rate of zero under § 6621(d) of the Internal Revenue Code to a period where there is an equivalent overpayment of one member of a consolidated group and underpayment of the group. |
| 199935059(PDF, 5K) |
8/23/1999 |
| Internal Revenue Code § 6330 - Appeal of Levy Notices - Spousal Issues Pursuant to your request, we have reviewed the Collection Due Process aspect of your draft response to the request for advice from the RRA '98 Coordinator in your district. The RRA '98 Coordinator requested advice for the situation where both spouses receive an I.R.C. § 6330 notice but where only one spouse requests a Collection Due Process ("CDP") hearing. |
| 199935058(PDF, 28K) |
8/23/1999 |
| Issue: Whether Portuguese citizens and residents who were at one time admitted to the United States as lawful permanent residents may elect to be treated as resident aliens for U.S. tax purposes so that the U.S. social security benefits they are receiving will be taxed under � 86 instead of � 871(a)(3). |
| 199935057(PDF, 28K) |
8/23/1999 |
| Issue: How should the limitations under § 274(n) be applied under the cInternal Revenue Codeumstances described in the facts below. |
| 199935056(PDF, 21K) |
8/23/1999 |
| March 30, 1999, we concluded that where an individual debtor continues to make voluntary payments by check from post-petition income of a prepetition nondischargeable tax liability pursuant to an installment agreement, after the filing of a Chapter 7 petition, the Service can continue to accept such payments without violating the automatic stay. As a follow up question, you ask whether the Service can continue to accept such payments made pursuant to automatic debit agreements. |
| 199935055(PDF, 32K) |
8/23/1999 |
| Issues: (1) Whether the Service should issue a "protective" statutory notice of deficiency against TP2 pursuant to Internal Revenue Code §408(d)(6) to avoid potential "whipsaw" where TP1 received a distribution from IRA A and transferred the funds to TP2 before a marital settlement agreement was executed and before a divorce decree was entered. (2) Whether the Service should issue a "protective" statutory notice of deficiency against TP2 pursuant to Internal Revenue Code §408(d)(1) to avoid potential "whipsaw" where TP1 and TP2 reside in a community property state, TP1 received a distribution from IRA A and transferred the funds to TP2 before a marital settlement agreement was executed and before a divorce decree was entered. |
| 199935054(PDF, 39K) |
9/3/1999 |
| A bankruptcy court has found the Service's policy not to consider an offer in compromise submitted by a debtor in bankruptcy to be discriminatory and a violation of B.C. § 525. While the Service's decision whether or not to accept an offer in compromise ("OIC") remains discretionary, the bankruptcy court of In re Chapman, 84 AFTR2d ¶ 99- 5068 (Bankr. S. W.Va. June 23, 1999) used its equitable power under B.C. § 105 to require the Service to at least consider the OIC. |
| 199935053(PDF, 27K) |
8/23/1999 |
| Issues: (1) When Taxpayer inherits a one-sixth interest in Partnership in Year 1 and sells the partnership interest in Year 7, how is Taxpayer's adjusted basis in the partnership interest determined for purposes of measuring gain or loss from the sale? (2) When Taxpayer sells the partnership interest in Year 7, should Taxpayer include in the amount realized Taxpayer's share of partnership liabilities assumed by the purchasing partner? |
| 199935052(PDF, 36K) |
8/24/1999 |
| Issues: (1) May all or a portion of the foreign tax credits relating to Country V taxes paid by T on the sale (for Country V purposes) of the TA1 assets in Year 4 be denied to T (and the PCP consolidated group) and allocated to S, based on the principles of Rev. Rul. 75-532? (2) If PCP calculated its purchase price paid for the worldwide Business A assets in Year 2 included an amount equal to the Country V tax paid by T in Year 4 on the sale of the TA1 stock, and if PCP improperly claimed (and the Closing Agreement improperly allowed) basis for those contingent future liabilities, under §1.338(b)-2T, may we reduce the amount of the basis allocated under §1.338(b)-2T or disallow the foreign tax credit to T (and the PCP consolidated group) for the Country V taxes paid by T in Year 4 on the actual sale of the assets of TA1? |
| 199935051(PDF, 10K) |
8/23/1999 |
| May 28, 1998, and subsequent correspondence, requesting a ruling with respect to the federal tax classification of the. The information submitted provides that A, a United States citizen, intends to contribute a collection of paintings and drawings, which she inherited from her father, F, who was a citizen of Country, to the. F died on D1. F had amassed a significant collection of paintings and drawings during his lifetime and expressed a desire to have this art collection displayed in an appropriate building in City. |
| 199935050(PDF, 10K) |
8/23/1999 |
| June 30, 1998 request for rulings on the federal income tax consequences of a proposed transaction. |
| 199935049(PDF, 5K) |
8/23/1999 |
| Reference to a Form 1128, Application to Adopt, Change, or Retain a Tax Year, submitted on behalf of the above-named taxpayer, requesting permission to change its accounting period, for federal income tax purposes, from a taxable year ending, to a taxable year ending, effective The taxpayer has requested that the Form 1128 be considered timely filed under the authority contained in §301.9100-3 of the Procedure and Administration Regulations. |
| 199935048(PDF, 7K) |
8/24/1999 |
| October 21, 1997, requesting a ruling under � 877(c) of the Internal Revenue Code of 1986 that A's loss of U.S. citizenship did not have for one of its principal purposes the avoidance of U.S. taxes under subtitle A or subtitle B of the Code. Additional information was submitted in a letter dated September 10, 1998, April 27 and April 30, 1999. |
| 199935047(PDF, 10K) |
10/12/1999 |
| March 12, 1999, submitted on behalf of Trust, requesting a ruling that the trust is an eligible S corporation shareholder under § 1361(c)(2)(A)(i) of the Internal Revenue Code. |
| 199935046(PDF, 10K) |
10/12/1999 |
| March 12, 1999, submitted on behalf of Trust, requesting a ruling that the trust is an eligible S corporation shareholder under § 1361(c)(2)(A)(i) of the Internal Revenue Code. |
| 199935045(PDF, 10K) |
8/24/1999 |
| March 30, 1999, and subsequent correspondence written on behalf of Company requesting inadvertent termination relief under § 1362(f) of the Internal Revenue Code. FACTS: Company was incorporated on Date 1, and elected to be an S corporation effective Date 1. |
| 199935044(PDF, 11K) |
8/23/1999 |
| February 12, 1999, submitted on behalf of X requesting relief under § 1362(f) of the Internal Revenue Code. |
| 199935043(PDF, 13K) |
8/24/1999 |
| February 24, 1999, and subsequent correspondence, written on behalf of X, requesting relief under § 1362(f) of the Internal Revenue Code. |
| 199935042(PDF, 11K) |
8/23/1999 |
| November 20, 1998 requesting that we rule on a significant sub-issue present in a proposed transaction. See � 3.01(24) of Rev. Proc. 99-3, 1998-1 I.R.B. 106. Additional information was submitted in letters dated February 26, 1999, April 20, 1999, May 25, 1999, and June 1, 1999. |
| 199935041(PDF, 15K) |
8/23/1999 |
| November 2, 1998, and subsequent correspondence, from your authorized representative requesting a ruling on behalf of Estate regarding a proposed reformation of Trust A pursuant to § 2055(e) (3) of the Internal Revenue Code. |
| 199935040(PDF, 9K) |
8/23/1999 |
| January 29, 1999, and subsequent correspondence written by your authorized representative on behalf of Company, requesting a ruling that Company's rental income from the Properties is not passive investment income within the meaning of § 1362(d)(3)(C)(i) of the Internal Revenue Code. |
| 199935039(PDF, 8K) |
8/23/1999 |
| September 16, 1997, requesting a ruling under � 877(c) of the Internal Revenue Code of 1986 that A's loss of long-term resident status did not have for one of its principal purposes the avoidance of U.S. taxes under subtitle A or subtitle B of the Code. Additional information was submitted in letters dated September 17 and December 12, 1997, October 30, 1998, and February 24 and April 20, 1999. |
| 199935038(PDF, 8K) |
8/23/1999 |
| December 10, 1997, requesting a ruling under � 877(c) of the Internal Revenue Code of 1986 that A's proposed loss of U.S. citizenship (expatriation) will not have for one of its principal purposes the avoidance of U.S. taxes under subtitle A or subtitle B of the Code. Additional information was submitted in letters dated June 18, 1998, and April 20 and April 23, 1999. |
| 199935037(PDF, 12K) |
8/23/1999 |
| January 28, 1999 request for rulings on certain federal income tax consequences of four proposed mergers. Additional information was submitted in letters dated April 16, 1999 and May 20, 1999. Related rulings concerning exempt organization issues appear in separate letters issued by the Internal Revenue Service on Date D. |
| 199935036(PDF, 9K) |
8/23/1999 |
| September 17, 1998, requesting a ruling under � 877(c) of the Internal Revenue Code of 1986 that A's surrender of his U.S. Alien Registration Card (Green Card) did not have for one of its principal purposes the avoidance of U.S. taxes under subtitle A or subtitle B of the Code. Additional information was submitted in letters dated May 4 and January 21, 1999. |
| 199935035(PDF, 8K) |
8/26/1999 |
| Responds to your February 24, 1999, and subsequent correspondence, submitted on behalf of X, requesting a ruling as to whether X's subchapter S election was terminated on D2. |
| 199935034(PDF, 12K) |
8/23/1999 |
| January 28, 1999 request for rulings on certain federal income tax consequences of four proposed mergers. Additional information was submitted in letters dated April 16, 1999 and May 20, 1999. Related rulings concerning exempt organization issues appear in separate letters issued by the Internal Revenue Service on Date D. |
| 199935033(PDF, 17K) |
8/23/1999 |
| Railroad Retirement Act Tax Status Attached for your information and appropriate action is a copy of a letter from the Railroad Retirement Board concerning the status under the Railroad Retirement Act and the Railroad Unemployment Insurance Act of: |
| 199935032(PDF, 7K) |
8/23/1999 |
| December 28, 1998, concerning whether the permanent disability benefits you receive pursuant to Statute A are excludable from your gross income under � 104(a)(1) of the Internal Revenue Code. |
| 199935031(PDF, 19K) |
8/23/1999 |
| January 29, 1999, requesting rulings as to the federal income tax consequences of a proposed transaction. Additional information was provided in letters dated April 19, and May 10, 1999. |
| 199935030(PDF, 6K) |
8/23/1999 |
| November 23, 1998, requesting a ruling under � 1362(b)(5) of the Code that X's S corporation election will be effective as of Date 2. |
| 199935029(PDF, 8K) |
8/23/1999 |
| November 30, 1998, and subsequent correspondence, requesting that Fund be granted an extension of time under § 301.9100-1 of the Procedure and Administration Regulations to make an election under § 855(a) of the Internal Revenue Code. |
| 199935028(PDF, 16K) |
8/23/1999 |
| December 31, 1998, on behalf of City, concerning whether line of duty disability benefits paid to disabled participants in the Plan (or to the survivor or survivors of deceased participants) are excludable from the gross income of the recipients under � 104(a)(1) of the Internal Revenue Code. |
| 199935027(PDF, 7K) |
8/24/1999 |
| December 31, 1998, requesting that Bank be granted an extension of time under § 301.9100-3 of the Procedure and Administration Regulations to complete its compliance with the requirements of Rev. Proc. 97-18, 1997-1 C.B. 642. |
| 199935026(PDF, 17K) |
8/23/1999 |
| October 6, 1998, requesting that we supplement our letter ruling dated August 12, 1997 (PLR-105126- 97, the "Prior Letter Ruling"). Additional information was submitted in letters dated November 2, December 18, December 23, and December 28, 1998, and January 28, March 5, March 9, May 3, May 24, and May 28, 1999. |
| 199935025(PDF, 6K) |
8/23/1999 |
| March 5, 1999, requesting a ruling on behalf of Company under § 1362(b)(5) of the Internal Revenue Code. The information submitted discloses that Company was incorporated on a in State. Company has one shareholder, Shareholder. |
| 199935024(PDF, 39K) |
8/23/1999 |
| Issues: (1) Whether accrued but unpaid management fees and working capital advances transferred between related parties qualify as securities which can be marked to market under Internal Revenue Code § 475? (2) What is the relationship between a zero fair market value under I.R.C. § 475 and whether debts were bad and therefore deductible under § 166? |
| 199935023(PDF, 6K) |
8/23/1999 |
| March 1, 1999, requesting a ruling on behalf of Company under § 1362(b)(5) of the Internal Revenue Code. The information submitted discloses that Company was incorporated on a in State. |
| 199935022(PDF, 6K) |
8/24/1999 |
| February 8, 1999, and subsequent correspondence submitted by X's authorized representative on behalf of X, requesting a ruling under § 1362(b)(5) of the Internal Revenue Code. |
| 199935021(PDF, 6K) |
8/23/1999 |
| Responds to a letter dated February 1, 1999, requesting a ruling on behalf of Company under § 1362(b)(5) of the Internal Revenue Code. The information submitted discloses that Company was incorporated on a in State. Company has one shareholder, Shareholder. |
| 199935020(PDF, 9K) |
8/23/1999 |
| February 25, 1999, and subsequent correspondence, requesting a ruling under § 1362(f) of the Internal Revenue Code. |
| 199935019(PDF, 36K) |
8/23/1999 |
| Issue: Whether the transfer of a foreign currency denominated debt by a foreign parent to its U.S. subsidiary and the subsequent transfer of that debt by the U.S. subsidiary to a second- tier U.S. subsidiary constitute valid contributions to capital under Internal Revenue Code §351. |
| 199935018(PDF, 14K) |
8/27/1999 |
| October 6, 1998, submitted on behalf of A, requesting rulings under � 1362(d)(3) and 1375(a) of the Internal Revenue Code. |
| 199935017(PDF, 31K) |
8/23/1999 |
| Issues: (1) Whether the Agreements at issue constitute "securities" within the meaning of � 475(c) (2)(E) of the Internal Revenue Code (Code). (2) If the answer to Issue 1, above, is answered in the affirmative, how should the Agreements be valued for purposes of marking the Agreements to market pursuant to � 475.(3) Whether x that the taxpayer used in its Sales transactions should be marked to market under � 475 even though the taxpayer had purportedly identified the x as being held for investment? |
| 199935016(PDF, 13K) |
8/23/1999 |
| Request submitted on Date 1, and subsequent correspondence, on behalf of Investment Manager requesting rulings with respect to the operation of Fund 1, Fund 2, Fund 3, and Fund 4 (collectively "the Funds"). |
| 199935015(PDF, 14K) |
8/27/1999 |
| October 6, 1998, submitted on behalf of A, requesting rulings under � 1362(d)(3) and 1375(a) of the Internal Revenue Code. |
| 199935014(PDF, 15K) |
8/27/1999 |
| October 6, 1998, submitted on behalf of A, requesting rulings under � 1362(d)(3) and 1375(a) of the Internal Revenue Code. |
| 199935013(PDF, 14K) |
8/27/1999 |
| October 6, 1998, submitted on behalf of A, requesting rulings under � 1362(d)(3) and 1375(a) of the Internal Revenue Code. |
| 199935012(PDF, 6K) |
8/23/1999 |
| February 25, 1999, submitted on X's behalf by X's authorized representative, requesting a ruling under § 1362(b)(5) of the Internal Revenue Code. |
| 199935011(PDF, 37K) |
8/24/1999 |
| Issues: (1) Does the Closing Agreement between A and the Service bind A to a determination that its Dealer Relationship Intangible was not of a character subject to the allowance for depreciation? (2) What factual development is needed to determine if the Dealer Relationship Intangible is of a character subject to the allowance for depreciation under pre-197 law? |
| 199935010(PDF, 5K) |
8/26/1999 |
| November 24, 1998, submitted on behalf of X, requesting a ruling under § 1362(b)(5) of the Internal Revenue Code. |
| 199935009(PDF, 30K) |
8/23/1999 |
| Issue: Whether Norwest supports treating only a pro rata share of the SL deductions of a member having a separate net operating loss ("NOL") as contributing to the group's CNOL. |
| 199935008(PDF, 30K) |
8/23/1999 |
| Issue: For purposes of calculating the exempt foreign trade income under � 923(a) of a commission FSC, should losses on the forward sale of foreign currency be allocated to combined gross income of the commission FSC and its related supplier in determining combined taxable income, when the foreign currency forwards were entered into for bona fide hedging purposes? |
| 199935007(PDF, 26K) |
8/23/1999 |
| Issues: (1) May dissolved State A and State C corporations enter into valid consents extending the period of limitations to assess federal income tax? (2) During what period of time may a dissolved State A corporation enter into a valid consent extending the period of limitations to assess federal income tax?(3) During what period of time may a dissolved State C corporation enter into a valid consent extending the period of limitations to assess federal income tax?(4) Who is authorized to execute a consent on behalf of a dissolved State A corporation?(5) Who is authorized to execute a consent on behalf of a dissolved State C corporation? |
| 199935006(PDF, 26K) |
8/23/1999 |
| Issue: Whether there is an administrative or policy exception to the disallowance of a dependency exemption under Internal Revenue Code § 151(e) where failure to list an individual's TIN on a return is based on Taxpayers' religious objections to using TIN for their children. |
| 199935005(PDF, 20K) |
8/24/1999 |
| Remedies available for erroneous abatements and credits By way of a memorandum dated, you asked that we post-review an advisory opinion from your office regarding the remedies available for erroneous abatement of tax that results in credits to unpaid tax liabilities in this case. |
| 199935004(PDF, 3K) |
8/23/1999 |
| Issue: For purposes of § 108(d)(3) of the Internal Revenue Code, which, if any, of the taxpayers' assets are not included in a determination of whether the taxpayers are insolvent. |
| 199935003(PDF, 13K) |
8/24/1999 |
| Issues: (1) Is the value of the corpus of the grantor retained income trust created by the Decedent includible in the Decedent's gross estate under § 2035 of the Internal Revenue Code? (2) Alternatively, did the Decedent make a gift to the trust remainder men when the trustee commuted the Decedent's interest in the trust and paid the decedent less than the fair market value of the interest. |
| 199935002(PDF, 9K) |
8/23/1999 |
| Issue: Whether the Taxpayer's distributions of surplus to certain of its policyholders, as part of a state mandated plan in which Taxpayer became the successor life insurance company to a Number of insurance departments ("LIDs"), constitute deductible policyholder dividends under Internal Revenue Code � 808, or instead nondeductible expenditures in a capital transaction in which the policyholders exchanged an ownership interest in their respective LIDs for the distributions of surplus? |
| 199935001(PDF, 30K) |
8/23/1999 |
| Issue: Whether the Taxpayer's distributions of surplus to certain of its policyholders, as part of a state mandated plan in which Taxpayer became the successor life insurance company to a Number of insurance departments ("LIDs"), constitute deductible policyholder dividends under Internal Revenue Code � 808, or instead nondeductible expenditures in a capital transaction in which the policyholders exchanged an ownership interest in their respective LIDs for the distributions of surplus? |
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