1997 Revenue Rulings
A "Revenue Ruling" is an official interpretation by the Service of the Internal Revenue Code, related statutes, tax treaties, and regulations. It is the conclusion of the Service on how the law is applied to a specific set of facts. A revenue ruling states the Service position on an issue. Revenue rulings are issued only by the National Office and are published in the Internal Revenue Bulletin for the information and guidance of taxpayers, Service personnel, and others concerned.
For more information about revenue procedures see Revenue Procedure 89-14, or, the Guide to Understanding the Differences Among Official IRS Documents.
Revenue Rulings are in the Adobe Acrobat PDF format.
Internal Revenue Bulletin Summary pages are in HTML format.
| Revenue Rulings |
Bulletin |
Date of IRB |
 |
| Rev. Rul. 97-57(PDF, 14K) |
IRB #1997-52(HTML) |
Dec. 29, 1997 |
| CPI adjustment for below-market loans-1998. The amount that section 7872(g) of the Code permits a taxpayer to lend to a qualified continuing care facility without incurring imputed interest is published and adjusted for inflation for years 1987-1998. Rev. Rul. 96-64 supplemented and superseded. |
| Rev. Rul. 97-56(PDF, 18K) |
IRB #1997-52(HTML) |
Dec. 29, 1997 |
| Section 1274A inflation-adjusted numbers for 1998. This ruling provides the dollar amounts, increased by the 1998 inflation adjustment, for section 1274A of the Code. Rev. Rul. 96-63 supplemented and superseded. |
| Rev. Rul. 97-55(PDF, 22K) |
IRB #1997-52(HTML) |
Dec. 29, 1997 |
| Certain cost-sharing payments. The Wetlands Reserve Program, the Environmental Quality Incentives Program, and the Wildlife Habitat Incentives Program are substantially similar to the type of programs described in section 126(a)(1) through (8) of the Code so that cost-share payments made under such programs and in connection with small watersheds are within the scope of section 126(a)(9) and, thereby, cost-share payments received under the programs are eligible for exclusion from gross income to the extent permitted by section 126. |
| Rev. Rul. 97-54(PDF, 25K) |
IRB #1997-52(HTML) |
Dec. 29, 1997 |
| Line pack gas; cushion gas. The cost of recoverable line pack gas or cushion gas is a capital expenditure and is not depreciable. The cost of non-recoverable line pack gas or cushion gas is a capital expenditure and is depreciable. |
| Rev. Rul. 97-53(PDF, 19K) |
IRB #1997-52(HTML) |
Dec. 29, 1997 |
| Interest rates; underpayments and overpayments. The rate of interest determined under section 6621 of the Code for the calendar quarter beginning January 1, 1998, will be 8 percent for overpayments, 9 percent for underpayments, and 11 percent for large corporate underpayments. The rate of interest paid on the portion of a corporate overpayment exceeding $10,000 is 6.5 percent. |
| Rev. Rul. 97-52(PDF, 17K) |
IRB #1997-50(HTML) |
Dec. 15, 1997 |
| LIFO; price indexes; department stores. The October 1997 Bureau of Labor Statistics price indexes are accepted for use by department stores employing the retail inventory and last-in, first-out inventory methods for valuing inventories for tax years ended on, or with reference to, October 31, 1997. |
| Rev. Rul. 97-51(PDF, 17K) |
IRB #1997-49(HTML) |
Dec. 8, 1997 |
| Loan to community development corporation is eligible for general business credit. The full amount of the loan made to a community development corporation (CDC) is a "transfer of cash" to the CDC for purposes of the definition of a "qualified CDC contribution." |
| Rev. Rul. 97-50(PDF, 16K) |
IRB #1997-49(HTML) |
Dec. 8, 1997 |
| Federal rates; adjusted federal rates; adjusted federal long-term rate, and the long-term exempt rate. For purposes of sections 1274, 1288, 382, and other sections of the Code, tables set forth the rates for December 1997. |
| Rev. Rul. 97-49(PDF, 21K) |
IRB #1997-48(HTML) |
Dec. 1, 1997 |
| 1997 base period T-bill rate. The "base period T-bill rate" for the period ending September 30, 1997, is published, as required by section 995(f)(4) of the Code. |
| Rev. Rul. 97-48(PDF, 12K) |
IRB #1997-49(HTML) |
Dec. 8, 1997 |
| This ruling revokes Rev. Rul. 75-7, 1975-1 C.B. 244, and holds that the activities of a contract manufacturer cannot be attributed to a controlled foreign corporation for purposes of either section 954(d)(1) or section 954(d)(2) of the Code to determine whether the income of a controlled foreign corporation is foreign base company sales income. The ruling, however, provides section 7805(b) relief for taxable years of a controlled foreign corporation beginning before December 8,1997. Rev. Rul. 75-7 revoked. |
| Rev. Rul. 97-47(PDF, 14K) |
IRB #1997-47(HTML) |
Nov. 24, 1997 |
| LIFO; price indexes; department stores. The September 1997 Bureau of Labor Statistics price indexes are accepted for use by department stores employing the retail inventory and last-in, first-out inventory methods for valuing inventories for tax years ended on, or with reference to, September 30, 1997. |
| Rev. Rul. 97-46(PDF, 8K) |
IRB #1997-46(HTML) |
Nov. 17, 1997 |
| Insurance companies; segregated asset accounts. A life insurance company is not prohibited from transferring assets other than cash from its general asset account to a segregated asset account for qualified pension plans. Rev. Rul. 73-67 revoked. |
| Rev. Rul. 97-45(PDF, 16K) |
IRB #1997-46(HTML) |
Nov. 17, 1997 |
| Covered compensation tables; 1998. The covered compensation tables for the 1998 calendar year for determining contributions to defined benefit plans and permitted disparity are set forth. |
| Rev. Rul. 97-44(PDF, 12K) |
IRB #1997-45(HTML) |
Nov. 10, 1997 |
| Federal rates; adjusted federal rates; adjusted federal long-term rate, and the long-term exempt rate. For purposes of sections 1274, 1288, 382, and other sections of the Code, tables set forth the rates for November 1997. |
| Rev. Rul. 97-43(PDF, 14K) |
IRB #1997-42(HTML) |
Oct. 20, 1997 |
| LIFO; price indexes; department stores. The August 1997 Bureau of Labor Statistics price indexes are accepted for use by department stores employing the retail inventory and last-in, first-out inventory methods for valuing inventories for tax years ended on, or with reference to, August 31, 1997. |
| Rev. Rul. 97-42(PDF, 31K) |
IRB #1997-41(HTML) |
Oct. 14, 1997 |
| Last-in, first-out inventories, automobile dealers. A franchised automobile dealer that elected the LIFO inventory method violates the LIFO conformity requirement of section 472 of the Code by providing to the credit subsidiary of its franchisor an income statement that fails to reflect the LIFO inventory method in the computation of net income. |
| Rev. Rul. 97-41(PDF, 34K) |
IRB #1997-40(HTML) |
Oct. 6, 1997 |
| Federal rates; adjusted federal rates; adjusted federal long-term rate, and the long-term exempt rate. For purposes of sections 1274, 1288, 382, and other sections of the Code. tables set forth the rates for October 1997. |
| Rev. Rul. 97-40(PDF, 35K) |
IRB #1997-39(HTML) |
Sept. 29, 1997 |
| Interest rates; underpayments and overpayments. The rate of interest determined under section 6621 of the Code for the calendar quarter beginning October 1, 1997, will be 8 percent for overpayments, 9 percent for underpayments, and 11 percent for large corporate underpayments. The rate of interest paid on the portion of a corporate overpayment exceeding $10,000 is 6.5 percent. |
| Rev. Rul. 97-39(PDF, 51K) |
IRB #1997-39(HTML) |
Sept. 29, 1997 |
| Mark-to-market accounting method for dealers in securities. This ruling provides guidance to enable taxpayers to comply with the mark-to-market requirements of section 475 of the Code. Rev. Ruls. 94-7 and 93-76 clarified, modified, partially obsoleted, and superseded. |
| Rev. Rul. 97-38(PDF, 49K) |
IRB #1997-38(HTML) |
Sept. 22, 1997 |
| Calculation of a partner's limited deficit restoration obligation. This ruling holds that the amount of a partner's limited deficit restoration obligation is the amount of money that the partner would be required to contribute to the partnership to satisfy partnership liabilities if all partnership property were sold for the amount of the partnership's book basis in the property. |
| Rev. Rul. 97-37(PDF, 22K) |
IRB #1997-37(HTML) |
Sept. 15, 1997 |
| LIFO; price indexes; department stores. The July 1997 Bureau of Labor Statistics price indexes are accepted for use by department stores employing the retail inventory and last-in, first-out inventory methods for valuing inventories for tax years ended on, or with reference to, July 31, 1997. |
| Rev. Rul. 97-36(PDF, 33K) |
IRB #1997-36(HTML) |
Sept. 9, 1997 |
| Federal rates; adjusted federal rates; adjusted federal long-term rate, and the long-term exempt rate. For purposes of sections 1274, 1288, 382, and other sections 1274, 1288, 382, and other sections of the Code, tables set forth the rates for September 1997. |
| Rev. Rul. 97-35(PDF, 18K) |
IRB #1997-35(HTML) |
Aug. 2, 1997 |
| Mutual life insurance companies; differential earnings rate The differential earnings rate for 1996 and the recomputed differential earnings rate for 1995 are set forth for use by mutual life insurance companies to compute their income tax liabilities for 1996. |
| Rev. Rul. 97-34(PDF, 11K) |
IRB #1997-34(HTML) |
Aug. 25, 1997 |
| Low-income housing credit; satisfactory bond; "bond factor" amounts for the period July through September 1997. This ruling announces the monthly bond factor amounts to be used by taxpayers who dispose of qualified low-income buildings or interests therein during the period July through September 1997. |
| Rev. Rul. 97-33(PDF, 18K) |
IRB #1997-34(HTML) |
Aug. 25, 1997 |
| Fringe benefits aircraft valuation formula. For purposes of section 1.61-21(g) of the regulations, relating to the rule for valuing non-commercial flights on employer-provided aircraft, the Standard Industry Fare Level, cents-per-mile rates and terminal charges in effect for the second half of 1997 are set forth. |
| Rev. Rul. 97-32(PDF, 17K) |
IRB #1997-33(HTML) |
Aug. 18, 1997 |
| LIFO; price indexes; department stores. The June 1997 Bureau of Labor Statistics price indexes are accepted for use by department stores employing the retail inventory and last-in, first-out inventory methods for valuing inventories for tax years ended on, or with reference to, June 30, 1997. |
| Rev. Rul. 97-31(PDF, 26K) |
IRB #1997-32(HTML) |
Aug. 11, 1997 |
| International operation of ships and aircraft; income exempt from tax. Those countries that currently provide exemptions from tax to U.S. persons for income from the international operation of ships and aircraft through income tax conventions, diplomatic notes, or the country's domestic law are listed. Rev. Rul. 89-42 supplemented. |
| Rev. Rul. 97-30(PDF, 32K) |
IRB #1997-31(HTML) |
Aug. 4, 1997 |
| Federal rates; adjusted federal rates; adjusted federal long-term rate, and the long-term exempt rate. For purposes of sections 1274, 1288, 382, and other sections of the Code, tables set forth the rates for August 1997. |
| Rev. Rul. 97-29(PDF, 41K) |
IRB #1997-28(HTML) |
July 14, 1997 |
| Retail motor fuels outlet. A retail motor fuels outlet is 15-year property for depreciation purposes whether or not the taxpayer-owner is the operator of the motor fuels business. |
| Rev. Rul. 97-28(PDF, 45K) |
IRB #1997-28(HTML) |
July 14, 1997 |
| LIFO; price indexes; department stores. The May 1997 Bureau of Labor Statistics price indexes are accepted for use by department stores employing the retail inventory and last-in, first-out inventory methods for valuing inventories for tax years ended on, or with reference to, May 31, 1997. |
| Rev. Rul. 97-27(PDF, 12K) |
IRB #1997-27(HTML) |
July 7, 1997 |
| Federal rates; adjusted federal rates, adjusted federal long-term rate; and the long-term exempt rate. For purposes of sections 1274, 1288, 382, and other sections of the Code, tables set forth the rates for July 1997. |
| Rev. Rul. 97-26(PDF, 42K) |
IRB #1997-24(HTML) |
June 16, 1997 |
| LIFO; price indexes; department stores. The April 1997 Bureau of Labor Statistics price indexes are accepted for use by department stores employing the retail inventory and last-in, first-out inventory methods for valuing inventories for tax years ended on, or with reference to, April 30, 1997. |
| Rev. Rul. 97-25(PDF, 14K) |
IRB #1997-23(HTML) |
June 9, 1997 |
| Low-income housing credit; satisfactory bond; "bond factor" amounts for the period April through June 1997. This ruling announces the monthly bond factor amounts to be used by taxpayers who dispose of qualified low-income buildings or interests therein during the period April through June 1997. |
| Rev. Rul. 97-24(PDF, 14K) |
IRB #1997-22(HTML) |
June 2, 1997 |
| Federal rates; adjusted federal rates; adjusted federal long-term rate, and the long-term exempt rate. For purposes of sections 1274, 1288, 382, and other sections of the Code, tables set forth the rates for June 1997. |
| Rev. Rul. 97-23(PDF, 20K) |
IRB #1997-22(HTML) |
June 2, 1997 |
| Interest rates; underpayments and overpayments. The rate of interest determined under section 6621 of the Code for the calendar quarter beginning July 1, 1997, will be 8 percent for overpayments, 9 percent for underpayments, and 11 percent for large corporate underpayments. The rate of interest paid on the portion of a corporate overpayment exceeding $10,000 is 6.5 percent. |
| Rev. Rul. 97-22(PDF, 36K) |
IRB #1997-20(HTML) |
May 19, 1997 |
| LIFO; price indexes; department stores. The March 1997 Bureau of Labor Statistics price indexes are accepted for use by department stores employing the retail inventory and last-in, first-out inventory methods for valuing inventories for tax years ended on, or with reference to, March 31, 1997. |
| Rev. Rul. 97-21(PDF, 43K) |
IRB #1997-18(HTML) |
May 5, 1997 |
| Tax consequences of physician recruitment incentives provided by hospitals described in section 501(c)(3) of the Code. This ruling provides examples illustrating whether nonprofit hospitals that provide incentives to physicians to join their medical staffs or to provide medical services in the community violate the requirements for exemption as organizations described in section 501(c)(3) of the Code. |
| Rev. Rul. 97-20(PDF, 18K) |
IRB #1997-19(HTML) |
May 12, 1997 |
| Medical savings accounts-high-deductible plan. Guidance is given concerning the definition of the term "high-deductible plan" under section 220(c)(2)(A)(ii) of the Code. |
| Rev. Rul. 97-19(PDF, 15K) |
IRB #1997-18(HTML) |
May 5, 1997 |
| Federal rates; adjusted federal rates; adjusted federal long-term rate, and the long-term exempt rate. For purposes of sections 1274, 1288, 382, and other sections of the Code, tables set forth the rates for May 1997. |
| Rev. Rul. 97-18(PDF, 43K) |
IRB #1997-15(HTML) |
April 14, 1997 |
| LIFO; price indexes; department stores. The February 1997 Bureau of Labor Statistics price indexes are accepted for use by department stores employing the retail inventory and the last-in, first-out inventory methods for valuing inventories for tax years ended on, or with reference to, February 28, 1997. |
| Rev. Rul. 97-17(PDF, 13K) |
IRB #1997-14(HTML) |
April 7, 1997 |
| Federal rates; adjusted federal rates; adjusted federal long-term rate, and the long-term exempt rate. For purposes of sections 1274, 1288, 382, and other sections of the Code, tables set forth the rates for April, 1997. |
| Rev. Rul. 97-16(PDF, 13K) |
IRB #1997-13(HTML) |
March 31, 1997 |
| Low-income housing credit; satisfactory bond; "bond factor" amounts for the period January through March 1997. This ruling announces the monthly bond factor amounts to be used by taxpayers who dispose of qualified low-income buildings or interests therein during the period January through March 1997. |
| Rev. Rul. 97-15(PDF, 41K) |
IRB #1997-12(HTML) |
March 24, 1997 |
| LIFO; price indexes, department stores. The January 1997 Bureau of Labor Statistics price indexes are accepted for use by department stores employing the retail inventory and last-in, first-out inventory methods for valuing inventories for tax years ended on, or with reference to, January 31, 1997. |
| Rev. Rul. 97-14(PDF, 17K) |
IRB #1997-11(HTML) |
March 17, 1997 |
| Fringe benefits aircraft valuation formula. For purposes of section 1.61-21(9) of the regulations, relating to the rule for valuing noncommercial flights on employer-provided aircraft, the Standard Industry Fare Level (SIFL), cents-per-mile rates, and terminal charges in effect for the first half of 1997 are set forth. |
| Rev. Rul. 97-13(PDF, 10K) |
IRB #1997-16(HTML) |
April 21, 1997 |
| Special use value; farms; interest rates. The 1997 interest rates to be used in computing the special use value of farm real property for which an election is made under section 2032A of the Code are listed for estates of decedents. |
| Rev. Rul. 97-12(PDF, 24K) |
IRB #1997-11(HTML) |
March 17, 1997 |
| Interest rates; underpayments and overpayments. The rate of interest determined under section 6621 of the Code for the calendar quarter beginning April 1, 1997, will be 8 percent for overpayments, 9 percent for underpayments, and 11 percent for large corporate underpayments. The rate of interest paid on the portion of a corporate overpayment exceeding $10,000 is 6.5 percent. |
| Rev. Rul. 97-11(PDF, 44K) |
IRB #1997-10(HTML) |
March 10, 1997 |
| Election in respect of losses attributable to a disaster. This ruling lists the areas declared by the President to qualify as major disaster areas under the Disaster Relief and Emergency Assistance Act since the publication of Rev. Rul. 96-13. |
| Rev. Rul. 97-10(PDF, 13K) |
IRB #1997-10(HTML) |
March 10, 1997 |
| Federal rates; adjusted federal rates; adjusted federal long-term rate, and the long-term exempt rate. For purposes of sections 1274, 1288, 382, and other sections of the Code, tables set forth the rates for March 1997. |
| Rev. Rul. 97-9(PDF, 24K) |
IRB #1997-9(HTML) |
March 3, 1997 |
| Medical and dental expenses. Amounts paid to obtain a controlled substance (such as marijuana), in violation of federal law, are not deductible expenses for medical care under section 213 of the Code. |
| Rev. Rul. 97-8(PDF, 36K) |
IRB #1997-7(HTML) |
Feb. 18, 1997 |
| LIFO; price indexes; department stores. The December 1996 Bureau of Labor Statistics price indexes are accepted for use by department stores employing the retail inventory and last-in, first-out inventory methods for valuing inventories for tax years ended on, or with reference to, December 31, 1996. |
| Rev. Rul. 97-7(PDF, 18K) |
IRB #1997-5(HTML) |
Feb. 3, 1997 |
| Federal rates; adjusted federal rates; adjusted federal long-term rate, and the long-term exempt rate. For purposes of sections 1274, 1288, 382, and other sections of the Code, tables set forth the rates for February 1997. |
| Rev. Rul. 97-6(PDF, 43K) |
IRB #1997-4(HTML) |
Jan. 27, 1997 |
| LIFO; price indexes; department stores. The November 1996 Bureau of Labor Statistics price indexes are accepted for use by department stores employing the retail inventory and last-in, first-out inventory methods for valuing inventories for tax years ended on, or with reference to, November 30, 1996. |
| Rev. Rul. 97-5(PDF, 16K) |
IRB #1997-4(HTML) |
Jan. 27, 1997 |
| Insurance companies; premium stabilization reserves. A non-life-insurance company's surplus does not include amounts held on behalf of a group of insurers in a premium stabilization reserve. Rev. Rul. 70-480, revoked. |
| Rev. Rul. 97-4(PDF, 24K) |
IRB #1997-3(HTML) |
Jan. 21, 1997 |
| Low-income housing tax credit. This ruling clarifies that section 502(e)(3) of the Tax Reform Act of 1986 does not prevent a taxpayer from claiming a low-income housing tax credit under section 42 of the Code for a building's credit period beginning after 1995. |
| Rev. Rul. 97-3(PDF, 36K) |
IRB #1997-2(HTML) |
Jan. 13, 1997 |
| SBA guaranteed payment rights; participating securities. The Small Business Administration (SBA) is the primary obligor of the guaranteed payment rights that are created under its participating security program and investors in those rights are treated as owning SBA debt. |
| Rev. Rul. 97-2(PDF, 13K) |
IRB #1997-2(HTML) |
Jan. 13, 1997 |
| Insurance companies; interest rate tables. Prevailing state assumed interest rates are provided for the determination of reserves under section 807 of the Code for contracts issued in 1996 and 1997. Rev. Rul. 92-19 supplemented in part. |
| Rev. Rul. 97-1(PDF, 16K) |
IRB #1997-2(HTML) |
Jan. 13, 1997 |
| Federal rates; adjusted federal rates; adjusted federal long-term rate, and the long-term exempt rate. For purposes of sections 1274, 1288, 382, and other sections of the Code, tables set forth the rates for January 1997. |
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