1996 Revenue Rulings
A "Revenue Ruling" is an official interpretation by the Service of the Internal Revenue Code, related statutes, tax treaties, and regulations. It is the conclusion of the Service on how the law is applied to a specific set of facts. A revenue ruling states the Service position on an issue. Revenue rulings are issued only by the National Office and are published in the Internal Revenue Bulletin for the information and guidance of taxpayers, Service personnel, and others concerned.
For more information about revenue procedures see Revenue Procedure 89-14, or, the Guide to Understanding the Differences Among Official IRS Documents.
Revenue Rulings are in the Adobe Acrobat PDF format.
Internal Revenue Bulletin Summary pages are in HTML format.
| Revenue Rulings |
Bulletin |
Date of IRB |
 |
| Rev. Rul. 96-65(PDF, 33K) |
IRB #1996-53(HTML) |
Dec. 30, 1996 |
| Damages received on account of personal injuries or sickness. Under current section 104(a)(2) of the Code, back pay and damages for emotional distress received to satisfy a claim for disparate treatment employment discrimination under Title Vll of the 1964 Civil Rights Act are not excludable from gross income. Under former section 104(a)(2), back pay received to satisfy such a claim was not excludable from gross income, but damages received for emotional distress were excludable. Rev. Ruls. 72-341, 94-92, and 93-88 obsoleted. Notice 95-45 superseded. Rev. Proc. 96-3 modified. |
| Rev. Rul. 96-64(PDF, 9K) |
IRB #1996-53(HTML) |
Dec. 30, 1996 |
| CPI adjustment for below-market loans for 1997. The amount that section 7872(g) of the Code permits a taxpayer to lend to a qualified continuing care facility without incurring imputed interest is published and adjusted for inflation for years 1987-1997. Rev. Rul. 96-5 supplemented and superseded. |
| Rev. Rul. 96-63(PDF, 30K) |
IRB #1996-53(HTML) |
Dec. 30, 1996 |
| Section 1274A inflation-adjusted numbers for 1997. This ruling provides the dollar amounts, increased by the 1997 inflation adjustment, for section 1274A of the Code. Rev. Rul. 96-4 supplemented and superseded. |
| Rev. Rul. 96-62(PDF, 19K) |
IRB #1996-53(HTML) |
Dec. 30, 1996 |
| Training costs; business expenses. The Supreme Court's decision in INDOPCO, Inc. v. Commissioner, 503 U.S. 79 (1992), does not affect the treatment of training costs as business expenses which are generally deductible under section 162 of the Code. |
| Rev. Rul. 96-61(PDF, 24K) |
IRB #1996-52(HTML) |
Dec. 23, 1996 |
| Interest rates; underpayments and overpayments. The rate of interest determined under section 6621 of the Code for the calendar quarter beginning January 1, 1997, will be 8 percent for overpayments, 9 percent for underpayments, and 11 percent for large corporate underpayments. The rate of interest paid on the portion of a corporate overpayment exceeding $10,000 is 6.5 percent. |
| Rev. Rul. 96-60(PDF, 36K) |
IRB #1996-51(HTML) |
Dec. 16, 1996 |
| LIFO; price indexes; department stores. The October 1996 Bureau of Labor Statistics price indexes are accepted for use by department stores employing the retail inventory and last-in, first-out inventory methods for valuing inventories for tax years ended on, or with reference to, October 31, 1996. |
| Rev. Rul. 96-59(PDF, 13K) |
IRB #1996-50(HTML) |
Dec. 9, 1996 |
| Low-income housing credit; satisfactory bond; "bond factor" amounts for the period October through December 1996. This ruling announces the monthly bond factor amounts to be used by taxpayers who dispose of qualified low-income buildings or interests therein during the period October through December 1996. |
| Rev. Rul. 96-58(PDF, 23K) |
IRB #1996-50(HTML) |
Dec. 9, 1996 |
| Fringe benefits aircraft valuation formula. For purposes of section 1.61-21(g) of the Regulations, relating to the rule for valuing non-commercial flights on employer-provided aircraft, the Standard Industry Fare Level (SIFL), cents-per-mile rates and terminal charges in effect for 1996, are set forth. Rev. Rul. 96-25 modified. |
| Rev. Rul. 96-57(PDF, 19K) |
IRB #1996-50(HTML) |
Dec. 9, 1996 |
| Federal rates; adjusted federal rates; adjusted federal long-term rate, and the long-term exempt rate. For purposes of sections 1274, 1288, 382, and other sections of the Code, tables set forth the rates for December 1996. |
| Rev. Rul. 96-56(PDF, 11K) |
IRB #1996-50(HTML) |
Dec. 9, 1996 |
| If certain conditions are satisfied, the delivery of a check to a noncharitable donee will be deemed to be complete for federal gift and estate tax purposes when the check is deposited, cashed against available funds of the donee, or presented for payment in the calendar year for which favorable gift tax treatment is sought. Rev. Rul. 67-396 modified. |
| Rev. Rul. 96-55(PDF, 15K) |
IRB #1996-49(HTML) |
Dec. 2, 1996 |
| 1996 base period T-bill rate. The "base period T-bill rate" for the period ending September 30, 1996, is published, as required by Code section 995(f)(4). |
| Rev. Rul. 96-54(PDF, 22K) |
IRB #1996-47(HTML) |
Nov. 18, 1996 |
| LIFO; price indexes; department stores. The September 1996 Bureau of Labor Statistics price indexes are accepted for use by department stores employing the retail inventory and last-in, first-out inventory methods for valuing inventories for tax years ended on, or with reference to, September 30, 1996. |
| Rev. Rul. 96-53(PDF, 15K) |
IRB #1996-47(HTML) |
Nov. 18, 1996 |
| Covered compensation tables; 1997. The covered compensation tables, for the 1997 calendar year for determining contributions to defined benefit plans and permitted disparity, are set forth. |
| Rev. Rul. 96-52(PDF, 13K) |
IRB #1996-45(HTML) |
Nov. 4, 1996 |
| Federal rates; adjusted federal rates; adjusted federal long-term rate, and the long-term exempt rate. For purposes of sections 1274, 1288, 382, and other sections of the Code, tables set forth the rates for November 1996. |
| Rev. Rul. 96-51(PDF, 15K) |
IRB #1996-43(HTML) |
Oct. 21, 1996 |
| Taxes, accrual of deduction. Under the all events test of section 461 of the Code, an accrual method employer may deduct in Year 1 its otherwise deductible FICA and FUTA taxes imposed with respect to year-end wages properly accrued in Year 1, but paid in Year 2, if the requirements of the recurring item exception are met. |
| Rev. Rul. 96-50(PDF, 37K) |
IRB #1996-42(HTML) |
Oct. 15, 1996 |
| LIFO; price indexes; department stores. The August 1996 Bureau of Labor Statistics price indexes are accepted for use by department stores employing the retail inventory and last-in, first-out inventory methods for valuing inventories for tax years ended on, or with reference to, August 31, 1996. |
| Rev. Rul. 96-49(PDF, 14K) |
IRB #1996-41(HTML) |
Oct. 7, 1996 |
| Federal rates; adjusted federal rates; adjusted federal long-term rate, and the long-term exempt rate. For purposes of sections 1274, 1288, 382, and other sections of the Code, tables set forth the rates for October 1996. |
| Rev. Rul. 96-48(PDF, 32K) |
IRB #1996-40(HTML) |
Sept. 30, 1996 |
| Nondiscrimination and coverage; rollover. The nondiscrimination, actual deferral percentage, and actual contribution percentage tests of a qualified plan are not affected by a qualified rollover to that plan prior to the individual who makes the rollover meeting the plan's age and service requirements. In addition, the rollover will not trigger the minimum nonintegrated benefit or minimum nonintegrated contribution requirements of section 416(c) of the Code. |
| Rev. Rul. 96-47(PDF, 15K) |
IRB #1996-40(HTML) |
Sept. 30, 1996 |
| Participant consent; significant detriment. Based on the facts and circumstances described in the revenue ruling, the loss of the right to choose among a broad range of investment alternatives with materially different risk and return characteristics is a significant detriment that invalidates a participant's consent to an immediate distribution. |
| Rev. Rul. 96-46(PDF, 48K) |
IRB #1996-39(HTML) |
Sept. 23, 1996 |
| LIFO; price indexes; department stores. The July 1996 Bureau of Labor Statistics price indexes are accepted for use by department stores employing the retail inventory and last-in, first-out inventory methods for valuing inventories for tax years ended on, or with reference to, July 31, 1996. |
| Rev. Rul. 96-45(PDF, 13K) |
IRB #1996-39(HTML) |
Sept. 23, 1996 |
| Low-income housing credit; satisfactory bond; "bond factor" amounts for the period July through September 1996. This ruling announces the monthly bond factor amounts to be used by taxpayers who dispose of qualified low-income buildings or interests therein during the period July through September 1996. |
| Rev. Rul. 96-44(PDF, 19K) |
IRB #1996-38(HTML) |
Sept. 16, 1996 |
| Interest rates; underpayments and overpayments. The rate of interest determined under section 6621 of the Code for the calendar quarter beginning October 1, 1996, will be 8 percent for overpayments, 9 percent for underpayments, and 11 percent for large corporate underpayments. The rate of interest paid on the portion of a corporation overpayment exceeding $10,000 is 6.5 percent. |
| Rev. Rul. 96-43(PDF, 14K) |
IRB #1996-36(HTML) |
Sept. 3, 1996 |
| Federal rates; adjusted federal rates; adjusted federal long-term rate; and the long-term exempt rate. For purposes of sections 1274, 1288, 382, and other sections of the Code, tables set forth the rates for September 1996. |
| Rev. Rul. 96-42(PDF, 12K) |
IRB #1996-35(HTML) |
Aug. 26, 1996 |
| Mutual life insurance companies; differential earnings rate. The differential earnings rate for 1995 and the recomputed differential earnings rate for 1994 are set forth for use by mutual life insurance companies to compute their income tax liabilities for 1995. |
| Rev. Rul. 96-41(PDF, 21K) |
IRB #1996-45(HTML) |
Nov. 4, 1996 |
| Educational assistance after termination of employment. Educational assistance plans that provide benefits to participants by reason of their employment with the employer will not fail to qualify as educational assistance programs described in section 127(b) of the Code merely because eligible participants include former employees. |
| Rev. Rul. 96-39(PDF, 36K) |
IRB #1996-34(HTML) |
Aug. 19, 1996 |
| LIFO; price indexes; department stores. The June 1996 Bureau of Labor Statistics price indexes are accepted for use by department stores employing the retail inventory and last-in, first-out inventory methods for valuing inventories for tax years ended on, or with reference to, June 30, 1996. |
| Rev. Rul. 96-38(PDF, 24K) |
IRB #1996-33(HTML) |
Aug. 12, 1996 |
| Pooled income fund; community trust; maintenance requirement. This ruling provides guidance on when a fund maintained by a community trust satisfies the maintenance requirement for a pooled income fund under section 642(c)(5)(E) of the Code. |
| Rev. Rul. 96-37(PDF, 16K) |
IRB #1996-32(HTML) |
Aug. 5, 1996 |
| Federal rates; adjusted federal rates; adjusted federal long-term rate, and the long-term exempt rate. For purposes of sections 1274, 1288, 382, and other sections of the Code, tables set forth the rates for August 1996. |
| Rev. Rul. 96-36(PDF, 36K) |
IRB #1996-30(HTML) |
July 22, 1996 |
| LIFO; price indexes; department stores. The May 1996 Bureau of Labor Statistics price indexes are accepted for use by department stores employing the retail inventory and last-in, first-out inventory methods for valuing inventories for tax years ended on, or with reference to, May 31, 1996. |
| Rev. Rul. 96-35(PDF, 19K) |
IRB #1996-31(HTML) |
July 29, 1996 |
| Low-income housing tax credit. Assistance provided by the Federal Emergency Management Agency to the owner of property that is damaged by a disaster will not result in a reduction of the eligible basis of the property under section 42(d)(5), or the recharacterization of the property under section 42(i)(2) as federally subsidized. |
| Rev. Rul. 96-34(PDF, 10K) |
IRB #1996-28(HTML) |
July 8, 1996 |
| Federal rates; adjusted federal rates; adjusted federal long term rate, and the long-term exempt rate. For purposes of sections 1274, 1288, 382, and other sections of the Code, tables set forth the rates for July 1996. |
| Rev. Rul. 96-33(PDF, 8K) |
IRB #1996-27(HTML) |
July 1, 1996 |
| Low-income housing credit; satisfactory bond; "bond factor" amounts for the period April through June 1996. This ruling announces the monthly bond factor amounts to be used by taxpayers who dispose of qualified low income buildings or interests therein during the period April through June 1996. |
| Rev. Rul. 96-32(PDF, 21K) |
IRB #1996-25(HTML) |
June 17, 1996 |
| Involuntary conversion of a residence; deduction for qualified residence interest. If a principal residence is destroyed, and the land portion is later sold, gain on the scale may be deferred under section 1033(a) if the requirements of that section are met. Taxpayers may continue to deduct otherwise deductible mortgage interest on a destroyed residence during a reasonable period between the destruction of the residence and its sale or reconstruction and reoccupation. |
| Rev. Rul. 96-31(PDF, 16K) |
IRB #1996-25(HTML) |
June 17, 1996 |
| LIFO; price indexes; department stores. The April 1996 Bureau of Labor Statistics price indexes are accepted for use by department stores employing the retail inventory and last-in, first-out inventory methods for valuing inventories for tax years ended on, or with reference to, April 30, 1996. |
| Rev. Rul. 96-30(PDF, 19K) |
IRB #1996-24(HTML) |
June 10, 1996 |
| Spin-off of subsidiary, followed by its merger with unrelated corporation. The form of the transaction, consisting of the distribution by a parent corporation of the stock of a subsidiary to its shareholders followed by a merger of the former subsidiary into an unrelated corporation, reflected its substance, determined on the basis of all of the relevant facts and circumstances, and was respected for federal income tax purposes. |
| Rev. Rul. 96-29(PDF, 19K) |
IRB #1996-24(HTML) |
June 10, 1996 |
| Reorganizations under section 368(a)(1)(F); series of steps in overall plan. The merger of a corporation with one created in another state is a section 368(a)(1)(F) reorganization even though it is a step in a larger transaction that includes a series of steps. |
| Rev. Rul. 96-28(PDF, 17K) |
IRB #1996-24(HTML) |
June 10, 1996 |
| Interest rates; underpayments and overpayments. The rate of interest determined under section 6621 of the Code for the calendar quarter beginning July 1, 1996, is 8 percent for overpayments, 9 percent for underpayments, and 11 percent for large corporate underpayments. The rate of interest paid on the portion of a corporate overpayment exceeding $10,000 is 6.5 percent. |
| Rev. Rul. 96-27(PDF, 11K) |
IRB #1996-24(HTML) |
June 10, 1996 |
| Federal rates; adjusted federal rates; adjusted federal long-term rates, and the long-term exempt rate. For purposes of sections 1274, 1288, 382, and other sections of the Code, tables set forth the rates for June 1996. |
| Rev. Rul. 96-26(PDF, 14K) |
IRB #1996-21(HTML) |
May 20, 1996 |
| LIFO; price indexes; department stores. The March 1996 Bureau of Labor Statistics price indexes are accepted for use by department stores employing the retail inventory and last-in, first-out inventory methods for valuing inventories for tax years ended on, or with reference to, March 31, 1996. |
| Rev. Rul. 96-25(PDF, 9K) |
IRB #1996-19(HTML) |
May 6, 1996 |
| Fringe benefits aircraft valuation formula. For purposes of section 1.61-21(g) of the regulations, relating to the rule for valuing non-commercial flights on employer-provided aircraft, the Standard Industry Fare Level (SIFL), cents-per-mile rates, and terminal charges in effect for 1996 are set forth. Rev. Rul. 95-66 modified. |
| Rev. Rul. 96-24(PDF, 7K) |
IRB #1996-19(HTML) |
May 6, 1996 |
| Federal rates; adjusted federal rates; adjusted federal long-term rate, and the long-term exempt rate. For purposes of sections 1274, 1288, 382, and other sections of the Code, tables set forth the rates for May 1996. |
| Rev. Rul. 96-23(PDF, 8K) |
IRB #1996-15(HTML) |
April 8, 1996 |
| Special use value; farms; interest rates. The 1996 interest rates to be used in computing the special use value of farm real property for which an election is made under section 2032A of the Code are listed for estates of decedents. |
| Rev. Rul. 96-22(PDF, 15K) |
IRB #1996-15(HTML) |
April 8, 1996 |
| LIFO; price indexes; department stores. The February 1996 Bureau of Labor Statistics price indexes are accepted for use by department stores employing the retail inventory and last-in, first-out inventory methods for valuing inventories for tax years ended on, or with reference to, February 29, 1996. |
| Rev. Rul. 96-21(PDF, 21K) |
IRB #1996-15(HTML) |
April 8, 1996 |
| Phase-in of increases in funding. Questions and answers pertaining to the election to phase in increases in additional funding requirements for certain plans under section 412(l)(11) of the Internal Revenue Code as amended by the Uruguay Round Amendments Act, which includes the Retirement Protection Act of 1994, are set forth. |
| Rev. Rul. 96-20(PDF, 15K) |
IRB #1996-15(HTML) |
April 8, 1996 |
| Additional funding requirements for certain plans. Questions and answers with respect to the establishment and maintenance of amortization bases for certain plans that have additional funding requirements described in section 412(l) of the Internal Revenue Code as amended by the Uruguay Round Agreements Act, which includes the Retirement Protection Act of 1994, are set forth. |
| Rev. Rul. 96-19(PDF, 42K) |
IRB #1996-14(HTML) |
April 1, 1996 |
| Federal rates; adjusted federal rates; adjusted federal long-term rate, and the long-term exempt rate. For purposes of sections 1274, 1288, 382, and other sections of the Code, tables set forth the rates for April 1996. |
| Rev. Rul. 96-18(PDF, 15K) |
IRB #1996-13(HTML) |
March 25, 1996 |
| LIFO; price indexes; department stores. The January 1996 Bureau of Labor Statistics price indexes are accepted for use by department stores employing the retail inventory and last-in, first-out inventory methods for valuing inventories for tax years ended on, or with reference to, January 31, 1996. |
| Rev. Rul. 96-17(PDF, 17K) |
IRB #1996-13(HTML) |
March 25, 1996 |
| Interest rates; underpayments and overpayments. The rate of interest determined under section 6621 of the Code for the calendar quarter beginning April 1, 1996, is 7 percent for overpayments, 8 percent for underpayments, and 10 percent for large corporate underpayments. The rate of interest paid on the portion of a corporate overpayment exceeding $10,000 is 5.5 percent. |
| Rev. Rul. 96-16(PDF, 8K) |
IRB #1996-11(HTML) |
March 11, 1996 |
| Low-income housing credit; satisfactory bond; "bond factor" amounts for the period January through March 1996. This ruling announces the monthly bond factor amounts to be used by taxpayers who dispose of qualified low-income buildings or interests therein during the period January through March 1996. |
| Rev. Rul. 96-15(PDF, 16K) |
IRB #1996-11(HTML) |
March 11, 1996 |
| Federal rates; adjusted federal rates; adjusted federal long-term rate, and the long-term exempt rate. For purposes of sections 1274, 1288, 382, and other sections of the Code, tables set forth for March 1996. |
| Rev. Rul. 96-14(PDF, 10K) |
IRB #1996-6(HTML) |
Feb. 5, 1996 |
| Federal rates; adjusted federal rates; adjusted federal long-term rate, and the long-term exempt rate. For purposes of sections 1274, 1288, 382, and other sections of the Code, tables set forth the rates for February 1996. |
| Rev. Rul. 96-13(PDF, 24K) |
IRB #1996-10(HTML) |
March 4, 1996 |
| Election in respect of losses attributable to a disaster. This ruling lists the areas declared by the President to qualify as major disaster areas under the Disaster Relief and Emergency Assistance Act since the publication of Rev. Rul. 95-17. |
| Rev. Rul. 96-12(PDF, 14K) |
IRB #1996-9(HTML) |
Feb. 26, 1996 |
| LIFO; price indexes; department stores. The December 1995 Bureau of Labor Statistics price indexes are accepted for use by department stores employing the retail inventory and last-in, first-out inventory methods for valuing inventories for tax years ended on, or with reference to. December 31, 1995. |
| Rev. Rul. 96-11(PDF, 20K) |
IRB #1996-4(HTML) |
Jan. 22, 1996 |
| Charitable contribution by partnership. A charitable contribution of property by a partnership reduces each partner's basis in the partnership by the amount of the partner's share of the partnership's basis in the property contributed. |
| Rev. Rul. 96-10(PDF, 19K) |
IRB #1996-4(HTML) |
Jan. 22, 1996 |
| Basis of partner's interest; sale between partnerships. Partners' bases in their partnership interests are decreased to reflect losses on the sale of partnership property to a related partnership that are disallowed under section 707(b)(1) of the Internal Revenue Code. Partners' bases in their partnership interests are increased to reflect gain from the sale of partnership property that is not recognized under sections 267(d) and 707(b)(1) of the Code. |
| Rev. Rul. 96-9(PDF, 15K) |
IRB #1996-4(HTML) |
Jan. 22, 1996 |
| LIFO; price indexes; department stores. The November 1995 Bureau of Labor Statistics price indexes are accepted for use by department stores employing the retail inventory and last-in, first-out inventory methods for valuing inventories for tax years ended on, or with reference to, November 30, 1995. |
| Rev. Rul. 96-8(PDF, 23K) |
IRB #1996-4(HTML) |
Jan. 22, 1996 |
| Two COBRA premium issues. Guidance is given on two premium issues that arise under the continuation coverage requirements for group health plans in section 4980B of the Code. |
| Rev. Rul. 96-7(PDF, 32K) |
IRB #1996-3(HTML) |
Jan. 16, 1996 |
| Disability mortality tables. This ruling provides mortality tables for use under section 412(1) for plan years after 1995 to calculate current liability for individuals entitled to benefits on account of disability. |
| Rev. Rul. 96-6(PDF, 16K) |
IRB #1996-2(HTML) |
Jan. 8, 1996 |
| Federal rates; adjusted federal rates; adjusted federal long-term rate, and the long-term exempt rate. For purposes of sections 1274, 1288, 382, and other sections of the Code, tables set forth the rates for January 1996. |
| Rev. Rul. 96-5(PDF, 9K) |
IRB #1996-3(HTML) |
Jan. 16, 1996 |
| CPI adjustment for below-market loans-1996. The amount that section 7872(g) of the Code permits a taxpayer to lend to a qualified continuing care facility without incurring imputed interest is published and adjusted for inflation for years 1987-1996. Rev. Rul. 95-11 supplemented and superseded. |
| Rev. Rul. 96-4(PDF, 15K) |
IRB #1996-3(HTML) |
Jan. 16, 1996 |
| Section 1274A inflation-adjusted numbers for 1996. This ruling provides the dollar amounts, increased by the 1996 inflation adjustment, for section 1274A of the Code. Rev. Rul. 95-10 supplemented and superseded. |
| Rev. Rul. 96-3(PDF, 8K) |
IRB #1996-2(HTML) |
Jan. 8, 1996 |
| Valuation of annuities. Interest for life or a term of years, and remainder and reversionary interests when the individual, who is the measuring life, is terminally ill. Rev. Ruls. 80-80 and 66-307 are obsolete effective December 14, 1995. |
| Rev. Rul. 96-2(PDF, 20K) |
IRB #1996-2(HTML) |
Jan. 8, 1996 |
| Insurance companies; interest rate tables. Prevailing state assumed interest rates are provided for the determination of reserves under section 807 of the Code for contracts issued in 1995 and 1996. Rev. Rul. 92-19 supplemented in part. |
| Rev. Rul. 96-1(PDF, 9K) |
IRB #1996-1(HTML) |
Jan. 2, 1996 |
| Valuation of a remainder interest in property transferred to a new pooled income fund under section 642(c)(5). The deemed rate of return computed under section 7520 of the Code is provided for transfers in calendar year 1996 to new pooled income funds that have been in existence for less than 3 taxable years. |
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