For Tax Professionals  

1999 Chief Counsel's
Written Determinations

199910000 to 199914999

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.

4/2/1999
Waiver of Internal Revenue Code § 6532(b) Limitations Period By way of an electronic mail message on November 4, 1998, you asked our views regarding a taxpayer's ability to waive the I.R.C. § 6532(b) two/five year limitation period on suits brought by the Service to recover erroneous refunds.
4/2/1999
July 14, 1998, requesting rulings under § 280G of the Internal Revenue Code. Specifically, you requested rulings that under the facts outlined below, the merger of Corporation Y with and into Corporation X will constitute a change of control of Corporation X; and will not constitute a change in the ownership or effective control of Corporation Y, or a change in the ownership of a substantial portion of the assets of Corporation Y within the meaning of § 280G(b)(2) of the Code.
4/2/1999
November 20, 1998, for supplemental rulings with respect to a ruling letter dated September 25, 1997, (Control Number PLR-105973-97, published as PLR 9751043) (the "Prior Ruling") involving the income tax consequences of a proposed transaction. You submitted additional information in a letter dated December 30, 1998.
4/2/1999
July 7, 1998, requesting a private letter ruling on behalf of A, addressing issues arising under § 1033 of the Internal Revenue Code of 1986, as amended.
4/2/1999
July 30, 1998, requesting a ruling under § 877(c) of the Internal Revenue Code of 1986 that A's termination of long-term U.S. residence did not have for one of its principal purposes the avoidance of U.S. taxes under subtitle A or subtitle B of the Code.
4/2/1999
Request dated December 8, 1998, submitted on your behalf by your authorized representative, that we supplement our letter ruling dated March 27, 1998 (PLR-121669-97) (the "Prior Ruling") regarding certain federal income tax consequences of a series of transactions, which included the distribution of all of the outstanding capital stock of the successor to Controlled 2
4/2/1999
September 1, 1998, submitted on your behalf by your authorized representative, that we supplement our letter ruling dated March 27, 1998 (PLR-121669-97) (the "Prior Ruling") regarding certain federal income tax consequences of a series of transactions...
4/2/1999
September 30, 1998, 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.
4/2/1999
Requesting consent to Taxpayer's revocation of its election under § 831(b) of the Internal Revenue Code to be taxed on only its investment income.
4/2/1999
September 9, 1998, in which Taxpayer requests an extension of time under Treasury Regulation § 301.9100-3 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 January 1, 1998.
4/2/1999
Requests relief under §1362(b)(5) of the Internal Revenue Code. FACTS X began doing business on Date (1) X's sole shareholder desired S corporation treatment for X, effective Date 1, but an election to be treated as an S corporation was not timely filed.
4/2/1999
Requesting that Partnership be given an extension of time in which to make an election under § 754 of the Internal Revenue Code.
4/2/1999
November 19, 1998, and prior correspondence submitted on behalf of X and requesting relief under § 1362(b)(5) of the Internal Revenue Code.
4/2/1999
November 6, 1998, requesting a ruling on behalf of Company under § 1362(b)(5) of the Internal Revenue Code.
4/2/1999
June 19, 1998, submitted on behalf of X that requests relief under §1362(b)(5) of the Internal Revenue Code.
4/2/1999
Issue: Whether Internal Revenue Code § 482 applies to a lease-stripping transaction where the parties to the transaction, some of which are related by overlapping ownership, act pursuant to a common plan to distort the taxable income of one of the parties to the transaction, thereby satisfying the control requirement of I.R.C. § 482.
4/2/1999
May 18, 1998, and November 9, 1998, in which rulings were requested as to the federal income tax consequences of proposed transactions.
4/2/1999
November 30, 1998, that was submitted on behalf of X, requesting a ruling that X's S corporation election be effective as of X's first taxable year beginning Date.
4/2/1999
Requesting relief under § 1362(b)(5) of the Internal Revenue Code. FACTS X was incorporated on Date (1) The shareholder desired S corporation treatment for X effective on Date 1, but an election to be treated as an S corporation was not timely filed.
4/2/1999
Responds to a letter submitted on behalf of X and requesting relief under § 1362(b)(5) of the Internal Revenue Code. FACTS X was incorporated on Date (1) The shareholder desired S corporation treatment for X effective on Date 1, but an election to be treated as an S corporation was not timely filed.
4/2/1999
Requesting a ruling on behalf of the above-named shareholders regarding the substantial compliance of the shareholders with the requirements of § 1042 of the Internal Revenue Code of 1986 and the applicable regulations in connection with the sale of stock of the Company to the employee stock ownership plan (ESOP) maintained by the Company.
4/2/1999
May 15, 1998, requesting rulings concerning the federal tax consequences of a proposed transaction.
4/2/1999
Request of Taxpayer, dated April 13, 1998, and supplemental information submitted by your authorized representative on behalf of Taxpayer, for a revised schedule of ruling amounts pursuant to § 1.468A-3(i)(2) of the Income Tax Regulations.
4/2/1999
April 13, 1998, and supplemental information submitted by your authorized representative on behalf of Taxpayer, for a revised schedule of ruling amounts pursuant to § 1.468A-3(i)(2) of the Income Tax Regulations. The ruling amounts authorized in the previous ruling letter, dated February 2, 1994, Information was submitted pursuant to § 1.468A-3(h)(2).
4/2/1999
April 13, 1998, and supplemental information submitted by your authorized representative on behalf of Taxpayer, for a revised schedule of ruling amounts pursuant to § 1.468A-3(i)(2) of the Income Tax Regulations. The ruling amounts authorized in the previous ruling letter, dated February 2, 1994, Information was submitted pursuant to § 1.468A-3(h)(2).
4/2/1999
November 18, 1998, and prior correspondence submitted on behalf of X, requesting a ruling that X's S corporation status will be effective as of D1.
4/2/1999
March 13, 1998, requesting rulings as to the federal income tax consequences of certain proposed transactions.
4/2/1999
December 11, 1998, and prior correspondence, requesting rulings under §§ 707 and 721 of the Internal Revenue Code and § 301.7701-3 of the Procedure and Administration Regulations concerning the proposed contribution of real estate property (the "Property") to a partnership.
4/2/1999
November 16, 1998, submitted on behalf of X, requesting relief under § 1362(b)(5) of the Internal Revenue Code.
4/2/1999
October 7, 1998, together with subsequent correspondence, submitted on behalf of X, requesting relief under § 1362(b)(5) of the Internal Revenue Code.
4/2/1999
April 16, 1998, requesting a further supplemental ruling to a ruling letter issued April 28, 1997, as supplemented by ruling letter dated September 24, 1997 (the "Prior Ruling Letter").
4/2/1999
§ 382(h)(8) of the Code As requested, set forth below is the substance of a memorandum prepared with respect to a Private Letter Ruling request submitted by taxpayer. The memorandum sets forth certain conclusions regarding § 382(h)(8) reached by this office in considering the ruling request.
4/2/1999
Issues: (1) Whether the sham transaction doctrine applies to this lease stripping transaction and would support disallowance of the taxpayer's claimed deductions for expenses? (2) Is G a sham partnership?(3) Whether Internal Revenue Code § 269 applies to disallow the deductions claimed by M as a result of the lease stripping transaction described below.(4) Whether the step transaction doctrine should be applied to the lease stripping transaction described below.(5) What are the tax effects of the Guaranteed Income Agreement? International will provide an analysis of § 482 in a separate memorandum.
3/29/1999
Issues: (1) May the taxpayer value its inventory at zero using the cost or market, whichever is lower, method (hereinafter referred to as "the LCM method) when the taxpayer either gives away its finished goods at no charge or sells these goods for a nominal amount? (2) Is the taxpayer required to capitalize costs under § 263A of the Internal Revenue Code to its inventory?
3/29/1999
Issue: What amounts are deductible by Taxpayer as policyholder dividends for tax years 19XX, 19YY and 19ZZ under § 832(c)(11) of the Internal Revenue Code.
3/29/1999
Issues: Whether the U.S. competent authority is required to obtain information to respond to a request from the competent authority of Country A for years for which the U.S. statute of limitations on assessment is closed but the statute of limitations of Country A is open?
3/29/1999
Issue: Whether the Internal Revenue Service may reverse an overpayment credited to a taxpayer's account to satisfy a prior outstanding tax liability so that the Taxpayer Advocate may issue a Taxpayer Assistance Order ("TAO") requiring the Service to issue a refund for the overpayment on the grounds of hardship?
3/29/1999
October 16, 1998 and subsequent correspondence, submitted by you on X's behalf as X's authorized representative, requesting that X be given an extension of time in which to elect to treat Y as a qualified subchapter S subsidiary (QSSS) under § 1361(b)(3)(B) of the Internal Revenue Code.
3/29/1999
September 3, 1998 request for rulings on certain federal income tax consequences of a proposed transaction. Summary of Facts Distributing and wholly owned subsidiaries Controlled 1, Controlled 2, Sub 3, and Sub 4 join in filing a consolidated federal income tax return (the "Distributing Group").
3/29/1999
Requesting relief under § 1362(f) of the Internal Revenue Code. FACTS You have represented that the facts are as follows. X was incorporated on Date1.
3/29/1999
September 1, 1998, and subsequent correspondence, requesting a ruling under § 1362(b)(5) of the Internal Revenue Code.
3/29/1999
Issues: (1) May a taxpayer's request under Rev. Proc. 91-51, 1991-2 C.B. 779, to change its method of accounting for mortgage sales authorize a change in the taxpayer's method of amortizing mortgage servicing rights that are stripped coupons under Internal Revenue Code § 1286 (Internal Revenue Code) (stripped mortgage servicing rights)? (2) If a taxpayer properly requests under Rev. Proc. 91-51 to change its method of accounting for mortgage sales, may the taxpayer use the sum of the years-digits method to amortize its stripped mortgage servicing rights before 1997?
3/29/1999
August 28, 1998, regarding the above captioned estate. On August 3, 1998, the Service issued PLR-104090-98 granting an extension of time under § 301.9100 of the Procedure and Administration Regulations to make the transitional rule election under § 26.2652-2(c) of the Generation-Skipping Transfer Tax Regulations. Rulings were also issued under §§ 1001 and 1015 of the Internal Revenue Code.
3/29/1999
June 5, 1998, and subsequent correspondence, requesting a ruling on behalf of Corporation. We have been asked to rule that Corporation's income is excludable from gross income under § 115 of the Internal Revenue Code.
3/29/1999
September 24, 1998 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.
3/29/1999
September 1, 1998, submitted by your authorized representative on behalf of Company, requesting a ruling under § 1362(b)(5) of the Internal Revenue Code that Company's S corporation election will be effective as of the taxable year beginning D1.
3/29/1999
Issue: Should the "open transaction" principle embodied in Treasury Regulation § 1.1233-1(a)(1) be applied to determine when an obligation incurred by a partnership taxpayer in connection with a short sale transaction of Treasury Bills is able to be included in the basis of partnership assets?
3/29/1999
October 2, 1998, and subsequent correspondence, written on behalf of X, requesting relief under § 1362(b)(5) of the Internal Revenue Code.
3/29/1999
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 December 18, December 23, and December 28, 1998.
3/29/1999
August 19, 1998, submitted on behalf of Company, requesting a ruling under § 1362(b)(5) of the Internal Revenue Code that Company's S corporation election will be effective d1.
3/29/1999
November 4, 1998, 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 corporation for federal tax purposes under § 301.7701-3(c).
3/29/1999
Issue: In determining the "combined taxable income" of the affiliated group of a corporation that has elected the application of the possession tax credit and the profit split method of accounting for intangible property income under Internal Revenue Code § 936(h)(5)(C)(ii), how are interest expenses incurred by affiliated corporations apportioned?
3/29/1999
July 20, 1998, requesting an extension of time under §§ 301.9100-1of the Procedure and Administration Regulations to file an election.
3/29/1999
Issues: (1) Whether the Service should give effect to agency agreements executed by a U.S. taxpayer and foreign controlled taxpayers, which required payments to the U.S. taxpayer of specified percentages of net income as compensation for services performed in the United States on behalf of the controlled taxpayers. (2) Whether, in the cInternal Revenue Codeumstances described, the Service should make adjustments pursuant to § 482, in order to reflect the "true taxable income" of the controlled taxpayers.
3/29/1999
November 17, 1998, written on behalf of X, requesting relief under § 1362(b)(5) of the Internal Revenue Code. FACTS X was incorporated under State law and began business operations on D1. X's shareholders intended that X be a subchapter S corporation, effective D1; however, an S corporation election under § 1362 was not timely filed.
3/29/1999
Issues: (1) Whether income derived from rendering personal services by taxpayer (Taxpayer) as an employee of X Corporation on Johnston Island during Year 4 may be excluded by the Taxpayer from his gross income under § 931(a) of the Internal Revenue Code of 1986 (Internal Revenue Code) ? (2) Whether the taxpayer can qualify for the I.R.C.§ 911 "foreign earned income exclusion" on that basis that Johnston Island is a "foreign country" under I.R.C.§ 9 11(b)(1) (A)?
3/29/1999
Issues: Whether a Form 1139, which is based on an attached unfiled, revised Form 1120, which has been altered from the actual filed return, is an acceptable processible form.
3/29/1999
November 17, 1998, written on behalf of X, requesting relief under § 1362(b)(5) of the Internal Revenue Code.
3/29/1999
September 10, 1998, request for Field Service advice in connection with the above referenced taxpayer. Specifically, you asked whether a purported loan transaction created a valid debtor- creditor relationship between an unrelated bank and a foreign subsidiary of the taxpayer, or whether the transaction created an interest that should more appropriately be classified as an equity investment in the foreign subsidiary by the taxpayer.
3/29/1999
Issue: When a member of one consolidated group is acquired by a different consolidated group under the specific facts of this case, and the acquired corporation makes a "grace period" contribution to its defined benefit plan, how should the grace period contribution be allocated between the two consolidated return groups? That is, may the acquiring group deduct the entire grace period contribution, as opposed to only deducting the portion of the contribution allocable to the period during which the acquired corporation was a member of the acquiring corporation's consolidated group?
3/29/1999
February 16, 1998, requesting certain rulings under § 355 of the Internal Revenue Code. Additional information has been submitted in letters dated September 2, 1998; October 5, 1998; October 28, 1998; November 3, 1998; December 2, 1998; and December 10, 1998.
3/29/1999
Issues: (1) Whether there has been a violation of Internal Revenue Code § 7433? (2) Whether the taxpayer has filed a proper administrative claim under § 7433?(3) If the administrative claim is proper, what information should the Service request in order to evaluate the amount of the claim?
3/22/1999
Issue: Whether, during the course of an examination of a taxpayer participating in the merchant marine capital construction funds program, the IRS may contact the Department of Transportation, Maritime Administration (MARAD) in order to obtain from MARAD the capital construction deductions and contract ceiling amounts of that taxpayer for purposes of the examination.
3/22/1999
August 5, 1998, and subsequent correspondence, written on behalf of X, requesting a ruling under § 1362(b)(5) of the Internal Revenue Code.
3/21/1999
June 2, 1998 and subsequent correspondence on behalf of Company concerning Company's continued reliance on a prior letter ruling issued to Company.
3/21/1999
September 14, 1998, in which you requested that, pursuant to § 884 of the Internal Revenue Code, Corp X be treated as a qualified resident of Country B for Corp X's taxable year ending December 31, 1997.
3/21/1999
June 23, 1998. Taxpayer requests a ruling concerning two factors of the indirect ownership portion of the limited Derivative Benefits Test under paragraph 7 of the revised Memorandum of Understanding accompanying the Income Tax Convention between the United States and Switzerland (the "Swiss Treaty") and under Article 22, Limitation on Benefits, of the Swiss Treaty.
3/21/1999
April 22, 1998, requesting a ruling on behalf of Trustee concerning the application of § 2511 of the Internal Revenue Code. This letter responds to your request.
3/21/1999
August 10, 1998, requesting rulings on whether Taxpayer will be treated as the owner of the Residence for federal income tax purposes under § 676 and 671 of the Internal Revenue Code ("the Code") and whether Taxpayer will be considered the owner of the Residence for purposes of excluding from gross income gain from the sale of a principal residence under § 121 of the Code.
3/22/1999
August 19, 1998, and subsequent correspondence, submitted on X's behalf by X's authorized representative, requesting that X be given an extension of time in which to elect to treat each of Y1, Y2, Y3, and Y4 as a qualified subchapter S subsidiary (QSSS) under § 1361(b)(3)(B) of the Internal Revenue Code.
3/21/1999
August 5, 1998, which requests a ruling on behalf of Taxpayer regarding certain federal tax consequences resulting from a proposed modification and assumption reinsurance of certain of Taxpayer's life insurance and annuity contracts pursuant to a state supervised rehabilitation proceeding.
3/21/1999
August 18, 1998, and subsequent submissions, on behalf of Partnership, requesting a letter ruling that, provided the requirements of § 42(h)(4) of the Internal Revenue Code are otherwise satisfied with respect to the Project, the acquisition and rehabilitation costs of the buildings and land comprising the Project will be treated as being financed by tax-exempt bonds for purposes of § 42(h)(4).
3/21/1999
June 25, 1998, requesting an extension of time under §§ 301.9100-1 and 301.9100-3 of the Procedure and Administration Regulations to file an election.
3/21/1999
August 28, 1998, requesting, or behalf of the taxpayers identified above, an extension of time under § 301.9100-1 through 301.9100- 3 of the Procedure and Administration Regulations to file an election.
3/21/1999
August 28, 1998, requesting, or behalf of the taxpayers identified above, an extension of time under § 301.9100-1 through 301.9100- 3 of the Procedure and Administration Regulations to file an election.
3/22/1999
November 23, 1998 request for a supplement to our prior letter ruling dated November 12, 1998 (the "Prior Letter Ruling"). The legend abbreviations, factual summary, and representations appearing in our Prior Letter Ruling are incorporated by reference unless otherwise indicated.
3/21/1999
April 13, 1998, and supplemental information submitted by your authorized representative on behalf of Taxpayer, for a revised schedule of ruling amounts pursuant to § 1.468A-3(i)(2) of the Income Tax Regulations.
3/21/1999
April 13, 1998, and supplemental information submitted by your authorized representative on behalf of Taxpayer, for a revised schedule of ruling amounts pursuant to § 1.468A-3(i)(2) of the Income Tax Regulations.
3/21/1999
December 14, 1998,and prior correspondence in which you requested rulings regarding Trust 1 and Trust (2)
3/21/1999
July 8, 1997, submitted on behalf of A, requesting a ruling pursuant to Notice 97-19, 1997-10 I.R.B. 40, under § 877 of the Internal Revenue Code of 1986 that A's termination of long-term residence did not have for one of its principal purposes the avoidance of U.S. taxes under subtitle A or subtitle B of the Code.
3/21/1999
July 8, 1997, submitted on behalf of A, requesting a ruling pursuant to Notice 97-19, 1997-10 I.R.B. 40, under § 877 of the Internal Revenue Code of 1986 that A's termination of long-term residence did not have for one of its principal purposes the avoidance of U.S. taxes under subtitle A or subtitle B of the Code.
3/21/1999
August 28, 1998, and supplemental information submitted on behalf of Taxpayer, 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 by the Internal Revenue Service on November 29, 1994.
3/22/1999
December 3, 1998, and prior correspondence, submitted on behalf of the trustees of the Trust and Family Trust requesting several rulings concerning the merger of those two trusts.
3/21/1999
November 11, 1998, that was submitted on behalf of Agency and Partnership, requesting a 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 credit dollar amounts.
3/22/1999
October 1, 1998, requesting a ruling substantially identical to the private letter ruling, PLR 106079-97 issued to Parent on May 23, 1998. The subject of that ruling was the creditability under § 901 and 903 of the Internal Revenue Code of amounts payable to Country X by Sub 2, under of a production sharing contract.
3/21/1999
August 3, 1998, requesting a ruling concerning the federal income tax consequences of a proposed transaction.
3/21/1999
October 15, 1998 request that we supplement our ruling dated August 19, 1997 (PLR-112573-97) (the "Ruling Letter"), which was issued in response to your request for a ruling, dated June 27, 1997 (the "Ruling Request").
3/21/1999
Issue: Whether a consolidated group that excludes cancellation of indebtedness ("COD") income under § 108(a) must, pursuant to § 108(b), reduce the group's consolidated net operating loss ("CNOL") as a tax attribute, even if no portion of the CNOL is attributable to the member having the excluded income.
3/21/1999
August 10, 1998, submitted on behalf of X by X's authorized representative, requesting a ruling under § 1362(b)(5) of the Internal Revenue Code.
3/21/1999
Issue: Whether under a valid conformity election, loans classified as "substandard" or "doubtful" for bank regulatory purposes and charged to a specific allowance qualify as deductible bad debts.
3/21/1999
June 26, 1998 and subsequent correspondence, on behalf of the above Employer requesting a ruling on the federal tax consequences of Employer's deferred compensation plan and related trust.
3/21/1999
Issue: Whether Internal Revenue Code §4980A (as applicable to certain excess distributions from qualified plans occurring before January 1, 1997) applies to a corrective distribution from X corporation to TP.
3/21/1999
July 24, 1998, and in subsequent correspondence on behalf of Company C, which is represented to be a for-profit, taxable entity.
3/21/1999
Request, we have post-reviewed your memorandum to the Chief, Examination Division, concerning whether wages earned by participants in the State's Plan are subject to Federal Insurance Contributions Act (FICA) tax.
3/14/1999
January 5, 1999 on the anti-gratuity statute, 18 U.S.C. § 201(c)(2), the Tenth CInternal Revenue Codeuit, en banc, reheard and decided the Singleton case on January 8, 1999. United States v. Singleton, No. 97-3178, 1999 U.S. App. LEXIS 222 (10th Cir. Jan. 8, 1999) (Singleton II).
3/14/1999
Issue: Whether the effect of entering certain masterfile transaction codes, which "zero out" a taxpayer's account module, is best described as an "abatement" of the assessment or as a reversible "adjustment."
3/14/1999
FED State Matter - Review of Draft Memorandum of Understanding (MOU) Between IRS and State of Maryland Comptroller of the Treasury We have completed review of the draft Memorandum of Understanding (MOU) referenced above and conclude there are no substantive criminal tax issues raised by its provisions.
3/14/1999
FED State Matter - Review of Draft Memorandum of Understanding (MOU) Between IRS and State of Maryland Comptroller of the Treasury We have completed review of the draft Memorandum of Understanding (MOU) referenced above and conclude there are no substantive criminal tax issues raised by its provisions.
3/14/1999
May 22, 1998, as supplemented by your letter of September 24, 1998. You request a ruling that premiums received by Taxpayer A and Taxpayer B on policies of reinsurance of United States risks are exempt from the insurance excise tax imposed by § 4371 of the Internal Revenue Code of 1986.
3/14/1999
Issue: Should the Intangibles Settlement Initiatiive ("ISI") be applied in this case?
3/14/1999
September 16, 1998, and additional information submitted on behalf of X, requesting relief under § 1362(b)(5) of the Internal Revenue Code.
3/14/1999
August 13, 1998, and subsequent correspondence, submitted on behalf of X, requesting a ruling under § 1362(b)(5) of the Internal Revenue Code.
3/14/1999
September 2, 1997 request for rulings on behalf of Company and its affiliates in regard to certain federal income tax consequences of a proposed transaction. Additional information was submitted in letters dated February 20, 1998, June 30, 1998, October 15, 1998, and December 10, 1998.
3/14/1999
Requests relief under §1362(b)(5) of the Internal Revenue Code. FACTS X was incorporated 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.
3/14/1999
November 10, 1998, and prior correspondence submitted on behalf of Trust and requesting rulings under §§ 1031 and 7701 of the Internal Revenue Code.
3/14/1999
November 11, 1998, submitted on behalf of X requesting relief under § 1362(b)(5) of the Internal Revenue Code. FACTS X was incorporated on D1. X intended to be treated as an S corporation for federal income tax purposes effective on D1, but the S election was not timely filed.
3/14/1999
June 18, 1998, requesting a ruling as to the federal income tax consequences of a proposed transaction. Additional information was submitted in letters dated October 27, 1998 and December 14, 1998.
3/14/1999
November 24, 1998, and prior correspondence in which you request an extension of time under § 301.9100-1 of the Procedure and Administration Regulations to make an election under § 2032A of the Internal Revenue Code.
3/14/1999
Request dated June 29, 1998, submitted on your behalf by your authorized representative, for rulings on the federal income tax consequences of a proposed transaction.
3/14/1999
Request dated June 29, 1998, submitted on your behalf by your authorized representative, for rulings on the federal income tax consequences of a proposed transaction. Additional information was submitted in letters dated August 28, September 18, October 14, October 21, and November 9, 1998.
3/14/1999
September 3, 1998, and prior correspondence submitted by your authorized representative, in which you request several rulings on the application of the generation-skipping transfer tax provisions of Chapter 13 of the Internal Revenue Code.
3/14/1999
September 3, 1998, and prior correspondence submitted by your authorized representative, in which you request several rulings on the application of the generation-skipping transfer tax provisions of Chapter 13 of the Internal Revenue Code.
3/14/1999
May 4, 1998, regarding your church's application for exemption from the payment of employer social security taxes. You were denied the exemption because you did not timely file Form 8274, Certification by Churches and Qualified Church-Controlled Organizations Electing Exemption From Employer Social Security Taxes.
3/14/1999
September 2, 1998 ruling request submitted on behalf of X requesting relief under § 1362(b)(5) of the Internal Revenue Code.
3/14/1999
July 21, 1998, and subsequent correspondence, submitted on behalf of X, requesting a ruling under § 1362(b)(5) of the Internal Revenue Code.
3/14/1999
September 1, 1998, written on behalf of X, requesting a ruling that X's S corporation status will be effective as of D1.
3/14/1999
October 23, 1998, written on behalf of X, requesting relief under §1362(f) and § 301.9100-3 of the Procedure and Administration Regulations.
3/14/1999
September 14, 1998, and additional information, submitted on behalf of X, requesting a ruling that X's S corporation status will be effective as of D1.
3/14/1999
August 24, 1998 request for rulings on certain federal income tax consequences of two proposed mergers. Related rulings concerning exempt organization issues appear in a separate letter issued by the Internal Revenue Service on November 24, 1998.
3/15/1999
December 1, 1998, and prior correspondence, submitted on behalf of X, requesting relief under § 1362(b)(5) of the Internal Revenue Code.
3/14/1999
November 3, 1998, together with subsequent correspondence, submitted on behalf of X, requesting relief under § 1362(b)(5) of the Internal Revenue Code.
3/14/1999
September 14, 1998, and supplemented by a letter dated October 26, 1998, that was submitted on your behalf by your authorized representative requesting a ruling that Corp X be permitted to use the tax book method of asset valuation for purposes of apportioning interest expense for all tax years beginning on or after January 1, 1997.
3/14/1999
September 14, 1998, and supplemented by a letter dated October 23, 1998, that was submitted on your behalf by your authorized representative requesting a ruling that Corp X be permitted to use the tax book method of asset valuation for purposes of apportioning interest expense for its short tax year beginning on January 1, 1997, and ending on Date A, 1997.
3/14/1999
August 24, 1998, requesting a further supplemental ruling that a certain proposed transaction described below will not adversely impact the private letter ruling previously issued to Corporation B on February 26, 1997. A prior supplemental ruling letter was issued on July 21, 1997, (collectively the "Prior Ruling").
3/14/1999
Issues: (1) Whether the recurring item exception to economic performance, provided at Internal Revenue Code § 461(h)(3)1, is applicable to liabilities incurred for the provision of workers' compensation insurance. (2) Whether the arrangement in this case is "insurance" for federal income tax purposes.
3/14/1999
This Field Service Advice responds to your memorandum dated September 9, 1998. Field Service Advice is not binding on Examination or Appeals and is not a final case determination. This document is not to be cited as precedent.
3/14/1999
Issue: Whether the $a loss claimed on the consolidated return of P upon the purported sale of F1's stock to X should be disallowed because the substance of the sale and management agreement was a payment to X for managing the liquidation of the assets of F1 and not a sale of F1's stock.
3/14/1999
Requesting a ruling granting a waiver under § 101(f)(3)(H) and 7702(f)(8) of the Internal Revenue Code. You ask that certain flexible premium universal life insurance contracts and certain fixed premium current assumption whole life contracts (the "Contracts") identified on Exhibit A attached to this letter be treated as life insurance contracts for federal tax purposes.
4/9/1999
Issues: Does the IRS have sufficient evidence to determine whether C's guaranty of the assets of a blind trust confer an impermissible private benefit or inurement on the beneficiary of the blind trust? You have characterized this issue as comprising the following two sub-Issues: (1) Were the premiums received by C reasonable payment for the risks it assumed? (2) Is the agreement between C and the blind trust a common means of protecting assets in a blind trust?
3/14/1999
Requested several rulings concerning the estate, gift, and generation-skipping transfer tax consequences of the proposed release of a testamentary power of appointment.
3/14/1999
Issue: (1 Whether Treasury Regulation § 1.1502-13(f)(2)(iii) provides S with a recognized loss on S's intercompany dividend distribution of its X stock to B.
3/14/1999
Issues: (1) Whether a subsidiary acquired its interest in certain custom-designed equipment from a third party by assignment-leaseback or from the parent by purchase. If the former, then the parent is required to recognize gain on the sale of the equipment to the third party. If the latter, the sale may qualify as a deferred intercompany transaction (within the meaning of Treasury Regulation § 1.1502-13). In that case, the parent would not be required to recognize gain currently on the sale of the equipment. (2) Whether the Service may assert the Danielson rationale in response to petitioner's argument that the intent of the parties was different than that reflected in the transactional documents.
3/14/1999
June 3, 1998, requesting rulings as to the federal income tax consequences of a proposed transaction.
3/14/1999
Issues: (1) Whether certain membership fees paid to the Club, were exempt from federal income tax as contributions to capital under Internal Revenue Code § 118 or taxable income as payments for goods or services. (2) If membership fees paid to a country club constitute payment of goods and services rather than contributions to capital, does the Service's correction of this item constitute a change in method of accounting.
3/14/1999
Issues: (1) How do a business and investment motives differ, and what factors do courts use in distinguishing between these motives? What was the dominant motive of A in the present case? (2) What indicia have courts set forth in identifying taxpayers in the trade or business of money lending? Does A meet these indicia?(3) Has the purchase of notes been held by courts to be within the scope of the trade or business of money lending? Was A's purchase of the note in connection with the money lending business?
3/14/1999
September 15, 1998 wherein you requested that we determine that the above-captioned case be designated for litigation and then seek the concurrence of the National Director of Appeals to such designation.
3/14/1999
Issue: When does underpayment interest begin to accrue on X's deficiency in tax for Year 1.
3/7/1999
Issue: Whether any provision of Title 26 authorizes the disclosure of return information, i.e., taxpayer names, in notices of sale and advertisements of sale of property seized by the Service.
3/7/1999
United States v. $359,500 in U.S. Currency, No. 84-CV-661C (W.D.N.Y. September 28, 1998) This memorandum brings to your attention a recent decision which revisits the issue of whether a claimant of a forfeiture action must possess either actual or constructive knowledge of the currency reporting requirements before the government may institute forfeiture.
3/7/1999
Issues: (1) Whether the filing of an application for a Taxpayer Assistance Order (TAO) under I. R.C. § 7811 suspends the periods for dischargeability of taxes in bankruptcy. (2) If so, whether the Service has a requirement to track such extensions on IDRS.(3) Whether the request for a hearing under Internal Revenue Code § 6330 suspends the periods for dischargeability of taxes in bankruptcy.
3/7/1999
Issues: (1) Is an assessment under Internal Revenue Code § 6201(a)(3) (for recovery of an overstatement of prepayment credits for income tax withholding and estimated income tax) an assessment of a tax imposed by this title (Title 26, the Internal Revenue Code)? (2) Is the statute of limitations for making an assessment under § 6201(a)(3) governed by the provisions of I.R.C. § 6501?
3/7/1999
Issue: What effect does failing to revoke under Internal Revenue Code § 6325(f)(2) have on the government's lien where the lien is a self-releasing lien?
3/7/1999
Requested ruling dated June 30, 1998. The taxpayer submitted additional information on July 20, 1998 and July 28, 1998.
3/7/1999
Requested under § 1362(b)(5) of the Internal Revenue Code. The facts are represented to be as follows. X was incorporated on Date 1.
3/7/1999
October 7, 1998, requesting rulings about the federal income tax consequences of a proposed transaction.
3/7/1999
Responds to a letter submitted on behalf of X that requests relief under § 1362(b)(5) of the Internal Revenue Code.
3/7/1999
August 4, 1998, written on behalf of X, and additional information submitted, requesting a ruling that X's S corporation status will be effective as of D1.
3/7/1999
September 29, 1998 and subsequent correspondence submitted by X's authorized representative on behalf of X, requesting a ruling under §§ 1361 and 1362 of the Internal Revenue Code.
3/7/1999
September 1, 1998, written on behalf of X, requesting a ruling that X's S corporation status will be effective as of D1.
3/7/1999
October 3, 1998, in which you requested a supplemental ruling to take into account a change in facts with respect to our letter ruling issued to X dated August 6, 1998, as revised on August 25, 1998 (the "Ruling Letter").
3/7/1999
September 14, 1998, together with subsequent correspondence, submitted on behalf of X, requesting relief under § 1362(b)(5) of the Internal Revenue Code.
3/7/1999
October 19, 1998, submitted on behalf of X, requesting relief under §1362(b)(5) of the Internal Revenue Code.
3/7/1999
November 6, 1998, submitted on behalf of X, requesting relief under § 1362(b)(5) of the Internal Revenue Code.
3/7/1999
October 3, 1998, in which you requested a supplemental ruling to take into account a change in facts with respect to our letter ruling issued to Y letter dated August 31, 1998 (the "Ruling Letter").
3/7/1999
November 20, 1998, and prior correspondence, written on behalf of X, requesting relief under §1362(b)(5) of the Internal Revenue Code.
3/7/1999
October 23, 1998, submitted on behalf of X, requesting relief under § 1362(b)(5) of the Internal Revenue Code.
3/7/1999
August 7, 1998 request for rulings on certain federal income tax consequences of a proposed transaction.
3/7/1999
August 10, 1998 request for rulings on certain federal income tax consequences of a proposed transaction.
3/7/1999
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.
3/7/1999
March 12, 1998 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.
3/7/1999
July 29, 1998, as well as subsequent correspondence, submitted on behalf of Company, requesting a ruling under § 1362(f) of the Internal Revenue Code that the termination of Company's S corporation election was inadvertent.
3/7/1999
June 19, 1998, in which a ruling was requested as to the federal income tax consequences of a proposed transaction. Additional information was submitted in letters dated August 18, and October 9, 1998.
3/7/1999
August 24, 1998, in which rulings are requested as to the federal income tax consequences of a proposed transaction.
3/7/1999
June 5, 1998 request for rulings as to the federal income tax consequences of a proposed transaction.
3/7/1999
August 11, 1998 ruling request submitted by X's authorized representative requesting relief under § 1362(b)(5) of the Internal Revenue Code.
3/7/1999
July 21, 1998 ruling request and subsequent correspondence submitted on behalf of X, requesting relief under § 1362(b)(5) of the Internal Revenue Code.
3/5/1999
August 4, 1998, which requests a ruling that X qualifies as an insolvent insurance company within the meaning of § 1.848-2(i)(4)(v) of the Income Tax Regulations and, therefore, that the joint election under that provision to reduce the insolvent insurance company's excess negative capitalization carryover amount and the other party's specified policy acquisition expenses under § 848 of the Internal Revenue Code is available to X and Y, respectively.
3/7/1999
September 9, 1998, that was submitted on behalf of Agency and Partnership, requesting a 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 credit dollar amounts.
3/7/1999
Issue: At what date does interest start running on an underpayment of tax for Year 1 where X has reported an overpayment of tax on its return, and elected to have the overpayment applied to estimated taxes for the succeeding year, but the Service has subsequently determined a deficiency that is greater than the overpayment reported on the return.
3/7/1999
January 28, 1998, requesting an extension of time, under §§ 301.9100-1 and 301.9100-3 of the Procedure and Administration Regulations, for Parent to make an election.
3/7/1999
Issues: Whether amounts paid by Bank to create home equity lines of credit ("HELOCs") and fixed-term home equity loans should be capitalized and amortized over the average life of such loans.
3/7/1999
Request for a ruling concerning the deduction limitation of § 162(m) of the Internal Revenue Code and its application to Taxpayer with respect to remuneration paid to certain individuals who resign their positions as officers of Taxpayer.
3/7/1999
Issues: (1) When restricted stock, transferred in connection with the performance of services and upon which no elections under § 83(b) of the Code have been filed is canceled more than 30 days after its issuance, are elections filed within 30 days of the issuance of stock replacing the canceled stock timely filed or should an argument be raised that the transfer date of the stock remains its original transfer date in which case the elections would be untimely? (2) If the transfer date is the date the replacement stock is issued, are the § 83(b) elections filed relative to that stock and additional stock valid, timely elections under § 83(b) of the Code?(3) Whether the purported gift of stock from X and Y to Z is a valid, completed gift?
3/7/1999
Issues: (1) What facts are necessary to determine whether the debt in this case should be treated as stock for purposes of Treasury Regulation § 1.382-2T(f)(18)(iii)? (2) What facts are necessary to determine whether the warrants issued in this case should be treated as stock for purposes of Internal Revenue Code § 382(k)(6)(B)(i), Treas. Reg. § 1.382-2T(h)(4) and Treas. Reg. § 1.382-4(d)(2)?(3) What facts are necessary to determine whether the stock in this case should be treated as not stock for purposes of I.R.C. § 382(k)(6)(B)(ii) and Treas. Reg. § 1.382-2T(f)(18)(ii)?(4) Whether modifications to the debt instrument on Date 3 are material resulting in a taxable exchange under I.R.C. § 1001 and applicable regulations.
3/5/1999
Request of Taxpayer, dated March 13, 1998, and supplemental information submitted by Taxpayer, for a revised schedule of ruling amounts in accordance with § 1.468A-3(i)(1)(iii)(A)(2) of the Income Tax Regulations.
3/5/1999
Request for a ruling you submitted in a letter dated June 24, 1998, and subsequent correspondence on behalf of Company C. This private letter ruling request concerns the federal income tax consequences of establishing a trust to assist C in providing certain nonqualified deferred compensation benefits to Participant A pursuant to the nonqualified Deferred Compensation Plan ("the Plan") executed by Company C and A.
3/5/1999
Request for a ruling you submitted in a letter dated June 24, 1998, and subsequent correspondence on behalf of Company C. This private letter ruling request concerns the federal income tax consequences of establishing a trust to assist C in providing certain nonqualified deferred compensation benefits to Participant A pursuant to the nonqualified Deferred Compensation Plan ("the Plan") executed by Company C and A.
3/7/1999
Issues: (1) Is the Individual who filed the bankruptcy petition a "'debtor" as that term is used in bankruptcy code § 348(d)? (2) Does the self-employment issue have any affect upon the determination in answering (1) above?(3) If the debtor's taxable Year 4 liability is included as a "preconversion" liability, is that year now "closed" as to any future audit and deficiency determination because the liability was discharged.?(4) Can the Service claim and collect any statutory additions due on the preconversion period or is the Service limited to only the tax amount?(5) If the trustee does not have sufficient funds to fully pay this liability, is the balance administratively collectible?(6) Will this area also affect post- petition liabilities in cases that were originally filed under Chapter 13?
3/5/1999
Issues: Whether the Commissioner should join petitioner, A, in requesting the United States Tax Court to either (1) enter final judgment under Federal Rule of Civil Procedure (FRCP) 54(b) on Issue A in Opinion A or (2) certify Opinion A under Tax Court Rule 193 for interlocutory appeal.
3/5/1999
Issues: Whether interest on the fraud penalty, which runs from the due date of the return with extensions, may be deducted as an administrative expense under § 2053(a) of the Internal Revenue Code,.
3/5/1999
Request for a ruling you submitted in a letter dated April 10, 1998, and in subsequent correspondence on behalf of Corporation C and its designated subsidiaries and related entities, including Entity E, an unincorporated entity.
3/5/1999
Issues: May the Service retain an amount the Tax Court determined to be an overpayment for one tax year to cover an asserted deficiency in taxes of the same taxpayer for a separate tax year which is at issue in a separate, ongoing Tax Court case?

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