Withdrawal of Guidance Under Section 1291
Relating to Mark to Market Elections for RICs

DEPARTMENT OF THE TREASURY
Internal Revenue Service 26 CFR Part 1 [INTL-941-86] RIN 1545-AI33

TITLE: Withdrawal of guidance under section 1291 relating to mark to
market elections for RICs

AGENCY: Internal Revenue Service (IRS), Treasury.

ACTION: Partial withdrawal of proposed regulations.

SUMMARY: This document withdraws §1.1291-8 of the notice of proposed
rulemaking that was published in the Federal Register on April 1,
1992, providing guidance under the passive foreign investment
company (PFIC) rules relating to the mark to market election for
regulated investment companies (RICs) that are shareholders of
PFICs.

DATES: Section 1.1291-8 of the proposed regulations published at 57
FR 11024 (April 1, 1992) is withdrawn February 2, 1999.

FOR FURTHER INFORMATION CONTACT: Robert Laudeman of the Office of
Associate Chief Counsel (International), Internal Revenue Service,
1111 Constitution Ave., NW., Washington, DC 20224.

Telephone (202) 622-3840, not a toll-free number.

SUPPLEMENTARY INFORMATION:

Background

On April 1, 1992 (57 FR 110224), the IRS issued proposed regulations
providing, in part, an election under which certain RICs could mark
to market their stock in certain PFICs. In the Taxpayer Relief Act
of 1997 Congress enacted section 1296(e)(2) of the Internal Revenue
Code, which allows certain RICs to elect to mark to market their
PFIC stock. Accordingly, the IRS is withdrawing proposed regulations
§1.1291-8. Future guidance will be issued providing rules for all
PFIC shareholders, including RICs, on how to mark to market certain
PFIC stock.

Drafting Information The principal author of this withdrawal notice
is Robert Laudeman, Office of the Associate Chief Counsel
(International).

However, other personnel from the IRS and Treasury Department
participated in developing the withdrawal notice.

List of Subjects in Part 1

Income taxes, Reporting and recordkeeping requirements.

Partial Withdrawal of Proposed Amendments to the Regulations
Accordingly, under the authority of 26 U.S.C. 7805, §1.1291-8 of the
proposed amendments to 26 CFR part 1 published at 57 FR 11024 (April
1, 1992), is withdrawn.

Robert E. Wenzel
Deputy Commissioner of Internal Revenue

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