For Tax Professionals  

1999 Chief Counsel's
Written Determinations

199930000 to 199934999

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.

8/27/1999
Acknowledging that the Service had, before the debtor filed bankruptcy, done all that was necessary to obtain a tax lien against the debtor's after-acquired property, the Fourth CInternal Revenue Codeuit in United States v. Gold (In re Avis), 1999 U.S. App. LEXIS 14217 (4 th Cir. June 28, 1999) held that the automatic stay prevented the Service's lien from attaching to an inheritance acquired by the debtor during the bankruptcy.
8/18/1999
Issues: (1) Whether Internal Revenue Code § 6330(e)(1) refers only to levy and seizure actions. (2) Whether § 6330, and other Code sections, limit the use of summonses for collection information during the pendency of the CDP appeal. (3) Whether § 6330(e)(1), and other Code sections, limit the filing of liens and/or nominee liens during the pendency of the CDP appeal.
8/19/1999
Issue: Are foster care payments considered "earned income" for purposes of the earned income credit (EIC)?
8/18/1999
Issue: In applying the tie-breaker rule in cases where an eligible individual with a qualifying child resides with the eligible individual's parents, how is the modified adjusted gross income (modified AGI) for those parents computed when they file a joint return? What if they file separate returns? What if they fail to file a return?
8/18/1999
Request filed on behalf of X for permission to change to the deferred expense method of deducting software development costs relating to four computer software projects, for the taxable year beginning (year of change).
12/14/1999
November 18, 1998, as supplemented by letters dated February 2, 1999, and March 24, 1999. You request a ruling that premiums received by A on policies of insurance or reinsurance of United States risks are exempt from the insurance excise tax imposed by § 4371 of the Internal Revenue Code of 1986, as amended.
8/18/1999
January 11, 1999, and a subsequent submission, from your authorized representative requesting a letter ruling under § 38 and 47 of Internal Revenue Code in regard to the rehabilitation of a building.
8/18/1999
Response to your letter of,, submitted on behalf of X and Y (the Associations), Z (a corporation) and Receiver. Those parties seek a ruling that their receipt of proceeds pursuant to the sale of residential and recreational property be treated as a nontaxable event for Federal income tax purposes.
8/16/1999
August 18, 1998, requesting an extension of time under §§ 301.9100-1 and 301.9100-3 of the Procedure and Administration Regulations to file elections.
8/16/1999
Ruling is requested on the federal gift tax consequences of a proposed disclaimer. This letter responds to that request. The facts and representations submitted are as follows. On Date 1, Decedent executed a Will. On Date 2, Decedent by Codicil ratified and confirmed his Will. Decedent died on Date (3)
8/18/1999
January 28, 1999, 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 on May 11, 1994.
8/16/1999
Issue: Whether taxpayer may report on a timely filed return that sums booked as receivables for royalties, services and sales are properly constructive dividends?
8/16/1999
Requesting a ruling regarding your substantial compliance 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.
8/16/1999
Requesting a ruling regarding your substantial compliance 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.
8/16/1999
Requesting a ruling regarding your substantial compliance 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.
8/16/1999
December 21, 1998, submitted on behalf of X requesting relief under § 1362(f) of the Internal Revenue Code. FACTS: X elected to be treated as an S corporation effective Date 1.
8/18/1999
February 4, 1999, submitted on behalf of X requesting relief under § 1362(f) of the Internal Revenue Code.
8/18/1999
Issues: (1) Whether the accounts receivable described below are appropriately treated as assets producing general limitation income pursuant to Step 3 of the DASTM computation under § 1.985-3(e)(3)(iii). (2) How is DASTM gain in excess of interest on related person indebtedness allocated among the § 904(d) baskets.
8/18/1999
Issues: (1) Whether, under the rules of § 461 of the Internal Revenue Code, Taxpayer's vacation pay was properly accrued for its vacation plans that included a "use-or-lose" provision and for its employees whose employment could be terminated for cause. (2) Whether Taxpayer's purchases of letters of credit to secure its promises to pay employee benefits had a sufficient nontax business purpose and sufficient economic substance to cause them to be respected for federal tax purposes.
8/16/1999
Issue: When Shareholder A exchanged its Corporation Series A voting convertible preferred stock ("Series A Stock") for cash and Corporation common stock, should the cash (i.e. n cents per share) be taxable under § 356(a)(1) or should it be taxable under § 356(a)(2) because it had "the effect of the distribution of a dividend?"
8/13/1999
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:
8/4/1999
Issues: (1) Whether a revenue officer has delegated authority from the District Director to request and receive hand-carried, delinquent income tax returns? (2) Whether a revenue officer can require a taxpayer to file delinquent returns directly with the revenue officer rather than mailing the returns to the appropriate Service Center?
8/4/1999
Issue: Whether the Service has the authority to waive the 60-day rollover rule of Internal Revenue Code § 408(d)(3)(1) and the early distribution tax under § 72(t).
8/4/1999
Issue: Whether § 3402(e) applies when a nonresident alien employee performs a portion of his or her services as an employee within the United States and the remainder of the services outside the United States.
8/4/1999
October 22, 1998 letter requesting an extension of time, under § 301.9100-1 through 301.9100-3 of the Procedure and Administration Regulations, for Purchaser to make late elections.
8/4/1999
November 23, 1998, and subsequent correspondence, submitted on behalf of X by its authorized representative, requesting relief under § 1362(f) of the Internal Revenue Code.
8/4/1999
November 18,1998, and prior correspondence, in which rulings were requested concerning the gift, estate, and generation-skipping transfer tax consequences of the proposed transactions described below.
8/13/1999
Request dated January 13, 1999 requesting a ruling under § 72(u)(1) of the Internal Revenue Code regarding a deferred annuity contract to be purchased by Trust. Additional information was submitted in a letter dated March 19, 1999.
8/4/1999
April 23, 1999, together with subsequent correspondence, submitted on behalf of X, requesting relief under § 1362(b)(5) of the Internal Revenue Code. FACTS: X was incorporated on Date (1) The first date on which X had shareholders, acquired assets, or began doing business was Date 2.
8/10/1999
February 12, 1999 requesting, on 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.
8/13/1999
November 18,1998, and prior correspondence, in which rulings were requested concerning the gift, estate, and generation-skipping transfer tax consequences of the proposed transactions described below.
8/10/1999
Issue: Do donations by Fraternity alumni and others to Foundation, a qualified charitable donee, to be used in Foundation's discretion to maintain and preserve the facade and certain interior portions of Chapter House, which is listed on the National Register of Historic Places and owned by Housing Corporation, not a qualified charitable donee, qualify as charitable deductions where a preservation and conservation easement in the facade and certain interior portions of Chapter House is to be granted to a § 170(h) qualified organization?
8/4/1999
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.
8/10/1999
Response to your letter dated April 1, 1999, and prior correspondence submitted by your authorized representatives, in which you requested several ruling concerning the partition of three trusts. Settlor A and Settlor B created Trust A, an irrevocable trust, on Date (1)
8/4/1999
July 8, 1997, on behalf of Taxpayer, requesting a ruling under § 877(c) of the Internal Revenue Code of 1986, as amended , that Taxpayer's loss of U.S. citizenship did not have as 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 October 23, 1997, and January 29, 1999.
8/4/1999
June 30, 1998 ruling request and subsequent correspondence submitted on behalf of Company 1 concerning § 1362(d)(3) of the Internal Revenue Code.
8/13/1999
March 1, 1999, requesting rulings on behalf of Fund. You have requested consent for Fund to revoke its election under § 4982(e)(4)(A) of the Internal Revenue Code effective for the calendar year ending December 31, 1999.
8/4/1999
January 29, 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.
8/4/1999
February 5, 1999, requesting certain rulings regarding the proper federal income tax treatment, including any reporting and/or withholding obligations, for certain stipends paid by you, X, to individuals in connection with the research training programs and activities briefly described below.
8/4/1999
November 18,1998, and prior correspondence, in which rulings were requested concerning the gift, estate, and generation-skipping transfer tax consequences of the proposed transactions described below.
8/10/1999
January 7, 1999, requesting a ruling concerning the federal income tax consequences of a proposed transaction.
8/4/1999
March 29, 1999, letter on behalf of your client, X, in which you request a ruling whether X is liable for the tax imposed by § 4081 of the Internal Revenue Code on the sale or removal of Racing Fuels #1, #2, or #3 from X's blending facility.
8/4/1999
Issues: (1) Is an otherwise valid assessment of tax rendered invalid by the Service's failure to retain or locate the administrative file supporting the assessment? (2) Is an otherwise valid extension of the collection period rendered invalid by the Service's failure to retain or locate the original Form 900, Tax Collection Waiver, executed by the taxpayer?(3) Is an extension of the collection statute obtained after the expiration of the original or previously agreed upon collection period valid?(4) Is a formal claim required to initiate the refund process with respect to overpayments for which the claim period is open?(5) Must the Service notify the taxpayer of a potential refund or credit?(6) Are there any exceptions to the § 6511(b) limitations period for refunds?(7) If the taxpayer who made the overpayment is now deceased, can the Service transfer the funds to excess collection account?
8/4/1999
Issues: (1) Is an otherwise valid assessment of tax rendered invalid by the Service's failure to retain or locate the administrative file supporting the assessment? (2) Is an otherwise valid extension of the collection period rendered invalid by the Service's failure to retain or locate the original Form 900, Tax Collection Waiver, executed by the taxpayer?(3) Is an extension of the collection statute obtained after the expiration of the original or previously agreed upon collection period valid?(4) Is a formal claim required to initiate the refund process with respect to overpayments for which the claim period is open?(5) Must the Service notify the taxpayer of a potential refund or credit?(6) Are there any exceptions to the § 6511(b) limitations period for refunds?(7) If the taxpayer who made the overpayment is now deceased, can the Service transfer the funds to excess collection account? (8) What is the impact of Restructuring and Reform Act (RRA) § 3461 on waivers obtained in connection with installment agreements? (9) Prior to the Bankruptcy Reform Act of 1994, what was the impact of B.C. § 362 upon the Service's ability to assess a tax against a non-petitioning spouse?
8/4/1999
January 21, 1999, submitted on behalf of A, requesting rulings under 1362(d)(3) and 1375(a) of the Internal Revenue Code.
8/4/1999
November 14, 1994, the Internal Revenue Service issued a letter ruling, LTR 9507013, to Taxpayer concerning the applicability of § 4251 of the Internal Revenue Code to amounts paid for certain audio conferencing services.
8/4/1999
July 27, 1995, the Internal Revenue Service issued a letter ruling, LTR 9543025, to Taxpayer concerning the applicability of § 4251 of the Internal Revenue Code to amounts paid for certain audio conferencing services.
8/4/1999
Issue: Whether amounts paid by Taxpayer's operating subsidiaries to Taxpayer's captive insurance subsidiary are deductible under Internal Revenue Code § 162 as insurance premiums.
8/4/1999
Issue: Whether a Form 1120X, filed on Date 8, claiming a refund for the year ended on Date 9, is timely where such claim for refund is based on a specified liability net operating loss carryback from the short Year A.
8/4/1999
Issue: Whether payments made pursuant to a collateral agreement may be deducted in computing "annual income" on Forms 2261, Collateral Agreement - Future Income and 3439, Statement of Annual Income (Individual)?
8/10/1999
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:
8/10/1999
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:
8/10/1999
Issue: Whether for purposes of computing the net operating loss (NOL) carryforward under Internal Revenue Code § 172(b)(2), taxable income must be reduced by the special deduction provided by I.R.C. §833(b).
8/4/1999
Issue: Whether § 3402(e) applies when a nonresident alien employee performs a portion of his or her services as an employee within the United States and the remainder of the services outside the United States.
8/10/1999
Administrative Claim under Internal Revenue Code § 7431 By letter dated December 18, 1998, addressed to the Commissioner of Internal Revenue Service, and the Southern California and Southwest District Directors, Taxpayer Husband, through his attorneys, submitted an administrative claim for unauthorized disclosure of return information under I.R.C. § 7431 and the Federal Tort Claims Act, 28 U.S.C. § 2671, as well as improper conduct by an agent under I.R.C. § 7433, the Federal Tort Claims Act and the Fourth and Fifth Amendments to the Constitution of the United States.
8/4/1999
Issues: (1) What legal theories, if any, should be developed to challenge the taxpayer's reporting of a transaction in which the taxpayer redeemed stock for less than its aggregate trading value? (2) Assuming an economic substance approach is viable, what facts should be developed in connection with that argument?
8/4/1999
Issues: (1) Whether the Service is required to abate the assessments and refund the overpayments to the partners of X for Tax Year 2 and Tax Year 3, when the assessments and collections were made after the partner's appeal to the United States Court of Appeals for A in Year 1, and A reversed and remanded the case to the Tax Court for a further determination. (2) Whether the Service is required to refund the overpayments made by the partners of X for Tax Year 1 pursuant to the Service's authority to abate the assessment, or may the Service apply the overpayments to other tax liabilities of the partners of X, including the liabilities for Tax Year 2 and Tax Year 3 assessments.
8/4/1999
Issue: Is the limited partnership interest of Partnership of the same class as (or in a class proportional to) the general partnership interest under § 2701(a)(2) of the Internal Revenue Code thus excluding Donor's transfer of an interest in Trust to form Partnership and subsequent transfer of a general partnership interest from the application of the special valuation rules of § 2701?
8/4/1999
Issues: (1) Did the Taxpayer acquire the right to conduct business in State B (State B Branching Rights) with a fair market value basis pursuant to § 597 of the Internal Revenue Code of 1954? (2) In any event, has the Taxpayer properly determined the fair market value of the State B Branching Rights upon their acquisition?(3) In any event, did the Taxpayer abandon the State B Branching Rights in Year A so that a deduction is permitted under § 165(a) of the Code?
8/4/1999
Issue: Whether, for income tax purposes, the Taxpayer is estopped from reporting the basis of stock in a closely-held corporation inherited from a decedent different from the fair market value used in calculating the tax on the decedent's estate.
8/3/1999
Request for technical advice dated May 14, 1999. As was discussed in a telephone conversation on May 28, 1999, with a member of this office, Rev. Proc. 99-2, 1999-1 I.R.B. 73, contemplates that technical advice may be issued on questions under the jurisdiction of the examination division or the appeals office that arise during the examination of a taxpayer's return, consideration of a claim for refund, or the appeals process.
8/3/1999
April 1, 1999, asking us to review your proposed answers to a request for advice sent to you from the North Central District RRA 98 Collection Coordinator. That request sets forth various hypothetical fact patterns and questions regarding proper procedures to follow when sending a Collection Due Process ("CDP") notice.
8/3/1999
Issues: (1) Does the saving clause of the U.S.–Canada income tax treaty , as amended by the protocol that entered into force on December 16, 1997 (Fourth Protocol), apply to the taxation of social security benefits paid by the United States to U.S. citizens who are resident in Canada? (2) Does the Fourth Protocol require the Service to pay refunds to Revenue Canada on U.S. tax withheld during 1996 and 1997 on social security benefits paid to certain Canadian residents if (a) the taxpayers are in a balance due status; (b) payment of the refunds would put the taxpayers in a balance due status; or (c) the taxpayers previously requested refunds on their own that were granted, but were offset against their balances due for prior years, some of which are years for which the statute of limitations on collection has expired? If the Service must pay refunds that would put taxpayers in a balance due status, how should penalties and interest on the resulting deficiencies be computed?
8/3/1999
October 1998 and subsequent correspondence, on behalf of Entity E, requesting a ruling concerning the proposed restated deferred compensation plan (the "Plan") which E intends to be an eligible deferred compensation plan under § 457(b) of the Internal Revenue Code of 1986, as amended under § 1447 and 1448 of the Small Business Job Protection Act of 1996.
8/3/1999
Form 1128, Application to Adopt, Change, or Retain a Tax Year, submitted on behalf of the above-named taxpayers, requesting permission to change their accounting period, for federal income tax purposes, from to a taxable year ending effective The taxpayers have requested that the Form 1128 be considered timely filed under the authority contained in §301.9100-3 of the Procedure and Administration Regulations.
8/3/1999
March 24, 1999, in which you requested a ruling under § 2652 of the Internal Revenue Code and § 301.9100-1 of the Procedure and Administration Regulations.
8/3/1999
December 17, 1998, and subsequent correspondence, in which you requested that we rule that a surviving spouse's proposed disclaimer will be a qualified disclaimer under § 2518 of the Internal Revenue Code.
8/3/1999
January 4, 1999 request for rulings on certain federal income tax consequences of a proposed transaction.
8/3/1999
November 24, 1998, 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. The information submitted for consideration in your letter of November 24, 1998, and supplemented by your letter of March 1, 1999, and by the discussion we had on March 18, 1999, is substantially as set forth below.
8/9/1999
April 2, 1998, as supplemented by a letter dated December 7, 1998, submitted by A's authorized representative 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.
8/3/1999
Ruling request dated April 13, 1999, you submitted on behalf of X which requests relief under § 1362(b)(5) of the Internal Revenue Code.
8/2/1999
April 29, 1999, written on behalf of X, requesting a ruling that X's S corporation status will be effective as of D1.
8/2/1999
November 30, 1998 ruling request and subsequent correspondence submitted on behalf of X, requesting relief under § 1362(b)(5) of the Internal Revenue Code.
8/2/1999
January 23, 1998, as supplemented by a letter dated February 18, 1999, submitted by A's authorized representative 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.
8/2/1999
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) for its Year One tax year and the annual certification required by § 1.1503-2(g)(2)(vi)(B) for its Year Two tax year.
8/2/1999
Request filed on behalf of the above-named taxpayer regarding the late filing of a Form 8716, Election To Have a Tax Year Other Than a Required Tax Year. The taxpayer has requested an extension of time for making this election under authority contained in §301.9100-3 of the Procedure and Administration Regulations.
8/2/1999
Request dated January 27, 1999, requesting rulings with respect to the transfer of assets held in Fund, which provides post-retirement life insurance benefits for active and retired employees of Company, to Trust.
8/2/1999
May 4, 1998, and subsequent correspondence requesting rulings on the income tax consequences of a trust established to pay benefits under a Plan to participating employees.
8/2/1999
November 16, 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.
8/2/1999
December 21, 1998, requesting a ruling on behalf of Company under § 1362(b)(5) of the Internal Revenue Code.
8/2/1999
October 20, 1998, submitted by your authorized representative requesting a ruling under § 877(c) of the Internal Revenue Code of 1986 that your 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.
8/3/1999
November 6, 1998, 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.
8/3/1999
January 28, 1999 ruling request and subsequent correspondence submitted on behalf of X by its authorized representative requesting relief under § 1362(f) of the Internal Revenue Code.
8/2/1999
January 15, 1999, requesting an extension of time under §§ 301.9100-1 through 301.9100-3 of the Procedure and Administration Regulations to file an election. Purchaser and Sellers are requesting an extension to file a "section 338(h)(10) election" under §§ 338(g) of the Internal Revenue Code and 338(h)(10) and § 1.338(h)(10)-1(d) of the Income Tax Regulations (the "Election"), with respect to the acquisition of Target, an S corporation, on Date A.
8/2/1999
April 26, 1999, and prior correspondence, submitted on behalf of X, requesting a ruling under § 7704(d)(1)(E) of the Internal Revenue Code. FACTS: X is a limited partnership organized under State law in Year 1.
8/2/1999
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 52-53 week taxable year ending on the, 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. (5) Whether the notices of deficiency to the U.S. related supplier are valid, if neither the FSC nor its transferees are entitled to claim refunds for the years at issue.
8/2/1999
Issues: (1) Whether certain extensions executed after the dissolution of a foreign sales corporation (FSC) were effective to extend the periods of limitation for assessment or refund applicable to the FSC. (2) Whether the Service may assess additional tax against the transferees of a FSC, based on the tax liability of the dissolved FSC.(3) Whether the transferees of the FSC may claim refunds with respect to taxes paid by the FSC.(4) Whether the court-appointed receiver for the dissolved FSC was entitled to file protective claims for refund of taxes paid by the FSC.(5) Whether the notices of deficiency to the U.S. related supplier are valid, if neither the FSC nor its transferees are entitled to claim refunds for the years at issue.
8/12/1999
Issues: (1) Whether Corporation C properly allocated and apportioned research and development (R&D, also referred to as research and experimental) expenses for purposes of determining its intangible property income under the profit-split method of § 936(h). (2) If, as a result of making adjustments to its R&D expenses, Corporation C's properly allocated and apportioned deductions exceed the relevant gross income from covered sales, can Corporation C's share of combined taxable income (CTI) be a negative amount? If so, can this negative amount reduce its qualified possession source investment income (QPSII)?
8/2/1999
January 11, 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.
8/12/1999
Issue: Whether assets held by taxpayer and his spouse as tenants by the entirety should be included in determining whether taxpayer falls within the insolvency exception to the recognition of cancellation of indebtedness income set forth in Internal Revenue Code § 108(a)(1)(B).
8/2/1999
March 15, 1999, requesting an extension of time to elect to treat X as an association taxable as a corporation under the Internal Revenue Code. FACTS: X is an entity that is eligible to elect to be taxed as a corporation.
8/2/1999
Issues: (1) Whether a private corporation's operation of a correctional facility constructed with the proceeds of bonds that are purportedly tax-exempt results in private use. (2) Whether a private corporation's guarantee of the payment of debt service on the bonds satisfies the private payment or security test.(3) Whether an examining agent should rely on the Trust Indenture or the Official Statement when the two documents are inconsistent with respect to the property that secures payment of debt service on the bonds.
8/2/1999
Issue: Should X's remittance to the Internal Revenue Service be treated as a refundable payment of tax on which interest accrues? If there was a payment, when should it be treated as having been made?
8/3/1999
Issues: (1) Whether three closing agreements relating to a docketed Tax Court case drafted on Forms 906 (Rev. 1/87), and executed by the Appeals Team Chief, who has joint jurisdiction over the case under Rev. Proc. 87-24, 1987-1 C.B. 720, are binding upon the Service without additional signatures in the signature blocks provided for "Receiving Officer" and for "Reviewing Officer" under Paragraph 5 and/or 6 of Delegation Order No. 97, Revision 34. (2) Whether a closing agreement (fourth closing agreement) drafted on Form 906 (Rev. 1/87), executed by an Examination Team Chief, in a Coordinated Examination Program (CEP) case under his jurisdiction, is binding upon the Service without additional signatures in the signature blocks for "Receiving Officer" and for "Reviewing Officer" under Delegation Order No. 236, Rev.(3) (3) Whether execution of the signature blocks for "Receiving Officer" and for "Reviewing Officer", located on the reverse side of Form 906 (Rev. 1/87) closing agreements is optional or required.
8/2/1999
Issue: Whether the taxpayer's claim for a refund in the amount of $K for Period 3 is barred by the statute of limitations, or whether the mitigation provisions at Internal Revenue Code §§ 1311 - 1314 apply to mitigate the effect of the statute of limitations and allow payment of a refund.
8/2/1999
March 19, 1991, the Internal Revenue Service issued LTR 9125010 (TR-31-519-90) to you. The purpose of this letter is to inform you that LTR 9125010 is hereby revoked.
8/2/1999
Issues: (1) Whether Company's transactions are part of a hedging transaction within the meaning of Treasury Regulation § 1.1221-2(b), with the result that losses realized on these transactions are ordinary. (2) Whether the requirement of Internal Revenue Code § 446 that a taxpayer's method of accounting must clearly reflect income should be applied to require that certain hedging transactions be accounted for in accordance with the hedge accounting principles of Reg. § 1.446-4.
8/12/1999
Issues: (1) Whether securities in Subsidiary 1, Parent's wholly-owned subsidiary, become wholly worthless in the tax Year 4 such that Parent may claim an ordinary loss pursuant to Internal Revenue Code § 165(g). (2) Whether Treasury Regulation § 1.1502-80(c) precludes Parent from taking a worthless stock loss under I.R.C. § 165(g)(1) for the tax year 4 with respect to the stock of Subsidiary 1?(3) Whether the loss disallowance rules of Treas. Reg. § 1.1502-20 limit the amount of any worthless stock loss to which Parent would otherwise be allowed for the tax year 4 with respect to the stock of Subsidiary 1?
8/12/1999
Issue: The field attorney has requested further explanation of the Service's position stated in the Field Service Advice dated November 10, 1998, as to when underpayment interest begins to accrue on X's deficiency in tax for Year 1.
8/2/1999
Issues: (1) Whether the Internal Revenue Service (IRS) may levy on social security payments of a taxpayer in reliance on a Notice of Federal Tax Lien (NFTL) after a judgment on a suit to foreclose the tax lien. (2) Whether the Federal Debt Collection Procedures Act (FDCPA) controls collection of the judgment received by the IRS on its suit to foreclose the tax lien.
8/2/1999
Issue: Whether the taxpayer's assignee is entitled to priority over the federal tax lien pursuant to Internal Revenue Code § 6323(a) as either the holder of a security interest or a purchaser.
8/2/1999
Issue: Whether the amounts paid by Taxpayer covering its liability on extended service contracts are deductible insurance premiums?
8/2/1999
To inform you that we recently issued no rule letters in response to two Form 3115s (Application for a Change in Accounting Method), dated June 23, 1998. Both Form 3115s were submitted by X on behalf of its subsidiaries, Sub 1 through Sub13.
8/2/1999
Issue: Whether members of advisory boards appointed by the City are "officers" under State law for purposes of § 3401(c) of the Code.
8/2/1999
November 13, 1998, in connection with a question concerning the information reporting requirements applicable to payments to jurors.
8/3/1999
Issues: (1) What is the correct method of calculating reportable compensation for employees of international organizations who are U.S. citizens? (2) How should U.S. citizen employees report their compensation on Form 1040?(3) Should the advice in this memorandum be applied retroactively?
8/2/1999
Issue: Whether the Taxpayer is liable for the § 6656 failure to deposit penalty for the Tax Periods.
8/2/1999
Issue: Whether the terms of Decedent's will provide the surviving spouse, (Spouse), with a qualifying income interest for life within the meaning of § 2056(b)(7)(B)(ii) of the Internal Revenue Code.
7/26/1999
Delays Due to Customer Service Staffing/Interest Abatement During the recent tax filing season, the Commissioner's office directed the temporary reassignment of Internal Revenue Service employees from Examination and (other functions) to Customer Service.
7/26/1999
Issue: Can a taxpayer designate the application of a Federal Tax Deposit?
8/6/1999
The Eleventh CInternal Revenue Codeuit reluctantly held in Griffith v. United States, 1999 U.S. App. LEXIS 8804 (11 th Cir. May 12, 1999), that a debtor's fraudulent efforts to escape tax collection was not a willful "attempt to evade or defeat such tax" under B.C. § 523(a)(1)(C) and In re Haas, 48 F.3d 1153 (11 th Cir. 1994). Reversing the lower courts, the Eleventh CInternal Revenue Codeuit discharged the debtor from his tax debts, but urged an en banc reconsideration to narrow the scope of Haas.
7/27/1999
Issue: What efforts can be made to prevent Financial Management Service (FMS) from reclaiming tax refund amounts from a Chapter 13 trustee's bank account.
7/26/1999
Update On Brazilian Foreign Tax Credit Litigation -- Riggs National Corporation & Subsidiaries V. Commissioner, 107 T.C. 301 (1996), Rev'D And Remanded, 163 F.3d 1363 (D.C. Cir. 1999) This memorandum updates my May 6, 1997, and January 18, 1995, memorandums regarding Brazilian foreign tax credit litigation.
7/26/1999
Withdrawal Of Application For Change In Accounting Method In accordance with § 8.07(2)(a) of Rev. Proc. 99-1, 1999-1 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.
7/26/1999
Received your letter dated, and subsequent submissions, requesting certain rulings concerning the income and estate tax consequences of transactions involving an individual retirement account (IRA).
7/26/1999
December 11, 1998 ruling request and subsequent correspondence submitted on behalf of X, requesting relief under § 1362(b)(5) of the Internal Revenue Code.
7/27/1999
December 15, 1998, submitted on behalf of Pool, requesting a ruling under § 301.9100-1 and 301.9100-3 of the Regulations on Procedure and Administration. The requested ruling would grant Pool an extension of time to make an election under § 860D(b)(1) of the Internal Revenue Code and § 1.860D-1( d) of the Income Tax Regulations to be treated as a real estate mortgage investment conduit (REMIC).
7/27/1999
Responds to the letter dated January 26, 1999 (and to the supplemental letters dated February 24 th, March 29 th, April 14 th, 19 th, 20 th, and 26 th, 1999) submitted to the Internal Revenue Service on behalf of Parent by its representative.
7/26/1999
October 30, 1998, requesting rulings as to the federal income tax consequences of a proposed transaction.
7/26/1999
Responds to your letter dated April 21, 1999, and prior correspondence, in which you request rulings on behalf of Taxpayers that the proposed trusts, holding property as described below, will be qualified personal residence trusts (QPRTs) satisfying the requirements of § 25.2702-5(c) of the Gift Tax Regulations, and that the property placed in the trusts will not be includible in each Taxpayer's gross estate under § 2036 of the Internal Revenue Code if the Taxpayers survive the terms of the trusts.
7/26/1999
June 1, 1998, submitted by A's authorized representative requesting a ruling under § 877(c) of the Internal Revenue Code of 1986 that A's 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. Additional information was submitted in letters dated January 6, 1999, and March 16, 1999.
7/26/1999
December 29, 1998, for a ruling on behalf of the Plan for the proper federal tax treatment under § 104 of the Internal Revenue Code of certain work-related disability benefit payments to employees made pursuant to the Statute.
7/26/1999
January 18, 1999, written on behalf of Company, requesting a ruling that Company be granted an extension of time in which to elect to treat its subsidiary, Subsidiary, as a qualified subchapter S subsidiary under § 1361(b)(3) of the Internal Revenue Code.
7/26/1999
March 17, 1999 request that we supplement our letter ruling of October 23, 1998 (PLR-111345-98) (the Prior Letter Ruling). The legend abbreviations, factual summary, and representations appearing in the Prior Letter Ruling are incorporated by reference in this letter unless otherwise indicated.
7/26/1999
Response to a letter dated July 4, 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 received in a letter dated January 26, 1999.
7/26/1999
December 29, 1998, in which a supplemental ruling is requested, on behalf of Company and its subsidiaries, regarding the treatment, under § 83 of the Internal Revenue Code, of Awards to be granted to employees of Sub A and Sub B under the Plan as a result of certain amendments made to the Plan.
7/26/1999
December 29, 1998, in which a supplemental ruling is requested, on behalf of Company and its subsidiaries, regarding the treatment, under § 83 of the Internal Revenue Code, of Awards to be granted to employees of Sub A and Sub B under the Plan as a result of certain amendments made to the Plan.
7/26/1999
December 30, 1998, and subsequent correspondence by your authorized representative on behalf of Company, requesting a ruling under § 1362(f) of the Internal Revenue Code.
7/26/1999
January 11, 1999, and subsequent correspondence, submitted on behalf of X, requesting a ruling under § 1362(b)(5) of the Internal Revenue Code.
7/26/1999
December 29, 1998, and subsequent correspondence submitted by X's authorized representative on behalf of X, requesting a ruling under § 1362(f) of the Internal Revenue Code.
7/26/1999
October 15, 1998, and subsequent correspondence submitted by X's authorized representative on behalf of X, requesting a ruling under § 1362(f) of the Internal Revenue Code.
7/26/1999
February 22, 1999, written on behalf of X, requesting a ruling that Y be given an extension of time to elect to be treated as a disregarded entity for federal tax purposes for its taxable year beginning D1.
7/26/1999
October 5, 1998 and subsequent correspondence, on behalf of State X, requesting a ruling concerning the proposed deferred compensation plan ("Plan") which State X intends to be an eligible deferred compensation plan under § 457 of the Internal Revenue Code of 1986 . State X is an eligible employer as described in § 457(e)(1)(A).
7/26/1999
October 15, 1998, and subsequent correspondence submitted by X's authorized representative on behalf of X, requesting relief for a late election to be an S corporation and for late elections under § 1361(d)(2).
7/27/1999
December 15, 1998, in which you requested an extension of time under § 301.9100-1 and § 301.9100-3 of the Procedure and Administration Regulations to file an election. The election is requested for Acquiring (as the common parent of the consolidated group) to file an election under § 338(g) and § 1.338-1(d), with respect to Acquiring's purchase of all of Target's stock. Additional information was received in letters dated March 2 and March 12, 1999.
7/26/1999
Issues: (1) Whether separation payments from an employer to its downsized employees constitute "wages" for purposes of Internal Revenue Code § 3401(a). (2) If the separation payments constitute "wages" for purposes of § 3401(a), whether, under the given facts, the separation payments qualify for the credit for increasing research activities under § 41.
7/26/1999
November 16, 1998, submitted by your authorized representative on behalf of X, requesting a ruling that X's S corporation election be effective as of X's taxable year beginning Date 1.
7/26/1999
Responds to a letter dated April 2,1999, submitted on behalf of Company, requesting relief under § 1362(f) of the Internal Revenue Code. According to the information submitted, Company was incorporated on Date1 in State. At the time of incorporation, A was Company's sole shareholder.
7/26/1999
December 22, 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 two shareholders, Shareholders.
7/26/1999
December 31, 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.
7/26/1999
Refers to the transmittal from your office forwarding for pre-review a memorandum to Person A, with regard to the issue of whether the refund for Year 3 should be characterized as an erroneous refund because the Service did not treat it as part of a Joint Committee case prior to making the refund.
7/27/1999
Responds to the letter dated February 18, 1999, submitted on behalf of X requesting a ruling under § 1362(g) of the Internal Revenue Code. FACTS: X is a corporation formed under the laws of State on D1.
7/26/1999
December 19, 1998, in which a ruling is requested as to whether the Plan qualifies as an "employee stock purchase plan," as defined in § 423(b) of the Internal Revenue Code.
7/27/1999
Issue: Whether, on the facts presented, sales of Product A to the United States Government by Corp A through Corp A-FSC generated foreign trading gross receipts within the meaning of Internal Revenue Code § 924.
7/26/1999
December 17, 1998 request for rulings on certain federal income tax consequences of a proposed transaction.
7/26/1999
Issues: (1) Whether Taxpayer was entitled to nonrecognition of gain treatment under Internal Revenue Code § 1031(a) in Year 2 on the exchange of Property X for an interest in Property Z. (2) Whether there are grounds either under § 1031(f)(1), or under another theory for including the gain on the exchange of Property X in Year 3.
7/26/1999
October 6, 1998 memorandum to your office, the Manager of the Group outlined four questions regarding the above captioned check cashing project and requested Counsel's assistance to address those questions.
7/16/1999
Issue: Whether Plan A is required to honor a levy by the Internal Revenue Service with respect to funds held on behalf of TP1 under Plan A if TP1 is not entitled to an immediate distribution from Plan A at the time the levy is received.
7/19/1999
Issue: Whether § 6651(g) is effective for purposes of asserting the failure to pay penalty under § 6651(a)(2) with regard to 1995 and 1996 federal tax returns prepared by the Service under the authority of § 6020(b).
7/16/1999
Issues: (1) Whether the government may provide tax sale purchasers, or title examiners associated with the purchasers, a copy of Record 21-Record of Seizure and Sale of Real Estate (Part 1-Spf copy). (2) Whether the government may provide tax sale purchasers, or title examiners associated with the purchasers, copies of the underlying sale and seizure documentation, such as Form 2433-Notice of Seizure and Form 2434- Notice of Sale.(3) If the answers to questions 1 and 2 are negative, whether it would be appropriate to modify the Record-21-Record of Seizure and Sale of Real Estate (Part 2-Public Copy) or the currently used quitclaim deed form to satisfy the title examiners' concerns.
7/16/1999
February 24, 1998, and subsequent correspondence, requesting rulings with respect to the federal tax consequences of a proposed partition of Trust 1 into three separate trusts.
7/19/1999
August 6, 1998, submitted on behalf of Trust, requesting a ruling under § 1361(e) of the Internal Revenue Code. The information submitted states that Trust was established on Date 1, by A and B ("Grantors") for the benefit of the children of their marriage and the issue of such children.
7/16/1999
November 11, 1998, and subsequent correspondence, submitted on behalf of X, requesting a ruling under § 1362(b)(5) of the Internal Revenue Code.
7/16/1999
November 10, 1998 requesting an extension of time under §§ 301.9100-1 and 301.9100-3 of the Procedure and Administration Regulations to file elections. The extension is being requested for Parent (as the common parent of the consolidated group of which Sub (the United States shareholder of Purchaser, the controlled foreign purchasing corporation) is a member) to file elections under § 338(g) of the Internal Revenue Code and §§ 1.338-1(d) and 1.338-1(g) of the Income Tax Regulations with respect to the Purchaser's acquisition of the stock of Target #1, Target #2, Target #3 and Target #4 (sometimes hereinafter referred to collectively as the "Elections" or "Election") on Date A.
7/16/1999
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.
7/16/1999
Issue: At what date does interest commence to run on an underpayment of tax for a particular year, where X reported an overpayment of tax on its return and elected to have the overpayment credited against its estimated tax liability for the succeeding year, but the Service subsequently determined a deficiency in tax.
7/16/1999
January 15, 1999, and other correspondence, asking the Internal Revenue Service to rule on the transaction described below. FACTS: Parent is the common parent of an affiliated group of corporations that includes Company. Parent files a consolidated return for the group.
7/16/1999
January 22, 1999, in which you request several rulings concerning the partition of Trust. Decedents created an irrevocable trust (Trust) on date 1, for the benefit of Daughter A and her descendants.
7/16/1999
March 22, 1999, requesting a ruling that (1) the income of Utility is excludable from gross income under § 115(1) of the Internal Revenue Code, and (2) Utility is not required to file a Form 990 under § 6033.
7/19/1999
Ruling request dated January 21, 1999, that was submitted by your representative and which requests relief under § 1362(b)(5) of the Internal Revenue Code.
7/16/1999
Issues: (1) Under Internal Revenue Code § 2041(a)(2), did the Decedent possess at his death a general power of appointment over the corpus of the trust created by indenture on Date 2 so that the entire corpus is includible in his gross estate? (2) If Decedent did not possess a general power of appointment over all of the trust property at his death, can the trust instrument be construed to confer a general power of appointment over twenty-five percent of the trust property at his date of death?(3) If Decedent did not possess a general power of appointment over any of the trust property at his date of death, is the Decedent deemed to have held a general power of appointment over twenty-five percent of the trust property while his children were minors because Decedent could have used the trust income to satisfy his legal obligation to support his children, and if so, did the power of appointment lapse when his children reached the age of majority, resulting in taxable gifts?
7/16/1999
December 16, 1998, and subsequent correspondence, submitted on behalf of X, concerning certain stock arising from a recapitalization.
7/19/1999
September 29, 1998 letter and your subsequent correspondence submitted on behalf of Trust requesting a ruling that amounts derived from parking facilities operated by independent contractors will qualify as rents from real property within the meaning of § 856(d) of the Internal Revenue Code.
7/16/1999
March 23, 1999, submitted on behalf of X, requesting a ruling that the rental income received by X from renting commercial real estate (the "Properties") is not passive investment income within the meaning of § 1362(d)(3)(C)(i).
7/16/1999
December 23, 1998, in which Taxpayer requests a ruling under Treasury Regulation § 301.9100-3 for an extension of time to file an agreement described in Treas. Reg. § 1.1503-2(g)(2), and an election pursuant to Treas. Reg. § 301.7701- 3(c)(1).
7/16/1999
Request for a ruling you submitted in a letter dated October 19, 1998, and in subsequent correspondence on behalf of Company C, which is a wholly owned subsidiary of Parent Company P, a distributor of a particular brand of manufactured goods.
7/19/1999
April 12, 1999 request that we supplement our letter ruling dated March 30, 1999 (PLR-121425-98) (the "Prior Letter Ruling"). Capitalized terms retain the meanings assigned them in the Prior Letter Ruling.
7/16/1999
July 3, 1997, submitted on your behalf by your authorized representative, 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 letters dated October 21, 1997, December 5, 1997, and December 17, 1998.
7/16/1999
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 services performed by for We have reviewed the opinion of the Railroad Retirement Board and, based solely upon the information submitted, concur in the conclusion that the services performed by for since, constitute self-employment.
7/16/1999
Withdrawal Of Application For Change In Accounting Method In accordance with § 8.07(2)(a) of Rev. Proc. 99-1, 1999-1 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.
7/16/1999
Issue: Whether the taxpayer's expenditures were for the acquisition of another's production or process or incurred in connection with the construction or manufacture of depreciable property by another, not at the taxpayer's risk or pursuant to a performance guarantee.
7/19/1999
December 9, 1998, requesting rulings on behalf of Taxpayer, concerning the federal income tax treatment of certain long-term disability plans under § 104 and 105 of the Internal Revenue Code .
7/16/1999
Issues: (1) Did X authorize the transfer of $b from its Year 5 estimated tax payments to pay other assessed liabilities? (2) If the transfer of $b million was not authorized, is X now entitled to a credit election or refund with respect to that amount?
7/16/1999
Issue: Can the Service levy on the assets of a one-member Limited Liability Company solely owed by an individual taxpayer to satisfy the tax liability of the taxpayer?
7/16/1999
December 14, 1998, and subsequent correspondence, submitted by X's authorized representative on behalf of X requesting relief under § 1362(f) of the Internal Revenue Code.
7/16/1999
Request by the authorized representative of Trust, Daughter and Son (Taxpayers) for rulings concerning the income, estate, gift, and generation-skipping transfer tax consequences of a proposed division of a Trust.
7/16/1999
Request by the authorized representative of Trust, Granddaughter, and Grandson (Taxpayers) for rulings concerning the income, estate, gift, and generation-skipping transfer tax consequences of a proposed division of Trust.
7/19/1999
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:
7/26/1999
Issues: (1) Whether X must pay interest on a tax deficiency for Year 1, from March 15, Year 2 (the last date prescribed for payment of the Year 1 tax) through September 15, Year 2 (the extended due date for the Year 1 return), where X's Year 1 return reflected an overpayment, which X elected to credit against its Year 2 estimated tax, but the Service subsequently determined a deficiency in an amount less than the credit elect, and no amount of the excessive credit was required to satisfy X's estimated tax liabilities for Year(2) (2) Whether X must pay interest from September 15, Year 2, through March 15, Year 3, where the facts are the same as Issue 1. above.(3) Whether X must pay interest on the Year 1 deficiency from March 15, Year 3, through October 17, Year 3, where the facts are the same as in Issue 1. above, but X filed a return for Year 2 on October 17, Year 3, which reflected a refund of $e.
7/19/1999
Issue: At what date does interest commence to run on an underpayment of tax for a particular year, where X reported an overpayment of tax on its return and elected to have the overpayment credited against its estimated tax liability for the succeeding year, but the Service subsequently determined a deficiency in tax.
7/16/1999
Issue: Whether a taxpayer can defeat the federal tax lien by filing a disclaimer with respect to property on which he/she was placed in title as joint tenant after the death of the other joint tenant.
8/11/1999
Issue: Whether the facts in this transaction should be characterized to better reflect the proper Federal income tax consequences?
9/21/1999
Issues: (1) (a) Whether the lease stripping transactions at issue are sham transactions lacking business purpose and economic substance. (1)(b) Whether the "Sham the Partner and/or Partnership" argument applies to the lease stripping transactions at issue and would support disallowance of the taxpayer's claimed deductions for rental expenses. (2) Whether the step transaction doctrine applies to the series of lease stripping transactions described below.(3) Whether Internal Revenue Code § 269 applies to disallow the deductions claimed by B as a result of the series of lease stripping transactions described below.(4) Whether the business purpose requirement of I.R.C. § 351 is not satisfied, in the case of the series of lease stripping transactions described below, so that the transferee corporation, B, is required to take a fair market value basis in the property received, and is not entitled to take a carryover basis in such property.(5) Whether the purported sale of the rights to the lease receivables (the Lessor Rights) by C to D. should be recharacterized as a financing?(6) Whether I.R.C. § 482 applies to B and the other parties to the lease stripping transactions described below, and, if so, what are the consequences of applying I.R.C. § 482.
8/11/1999
Issue: Whether payments issued to an independent contractor who provides both equipment and labor are considered to be continuous payments of salary and wages under Internal Revenue Code § 6331(e).
7/16/1999
Issue: What is the amount of the Taxpayer's available unified credit to be applied with respect to unreported gifts made in a prior taxable year where the Taxpayer utilized almost the entire unified credit allowable in determining the gift tax liability with respect to gifts made in a subsequent taxable year, and the statute of limitations with respect to the subsequent year is closed?
7/19/1999
Issues: Is the gain or loss from the termination of Taxpayer's liability hedging transactions ordinary or capital in character? Should Taxpayer be granted relief under § 7805(b) of the Internal Revenue Code from the retroactive application of the character rules of § 1.1221-2 of the Income Tax Regulations?

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