1998 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. 98-62(PDF, 30K) |
IRB #1998-51(HTML) |
Dec. 21, 1998 |
| LIFO; price indexes; department stores. The October 1998 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, 1998. |
| Rev. Rul. 98-61(PDF, 32K) |
IRB #1998-51(HTML) |
Dec. 21, 1998 |
| Interest rates; underpayments and overpayments. The rate of interest determined under section 6621 of the Code for the calendar quarter beginning January 1, 1999, will be 7 percent for overpayment (6 percent in the case of a corporation), 7 percent for underpayments, and 9 percent for large corporate underpayments. The rate of interest paid on the portion of a corporate overpayment exceeding $10,000 is 4.5 percent. |
| Rev. Rul. 98-60(PDF, 36K) |
IRB #1998-51(HTML) |
Dec. 21, 1998 |
| REIT impermissible tenant service income. If a REIT receives impermissible tenant service income of one percent or less of its total income from a property, then only the impermissible tenant service income fails to qualify as rents from real property. If the impermissible tenant service income exceeds one percent, then all income derived by the REIT from that property fails to qualify as rents from real property. |
| Rev. Rul. 98-59(PDF, 15K) |
IRB #1998-52(HTML) |
Dec. 28, 1998 |
| CPI adjustment for below-market loans for 1999. 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 -1999. Rev. Rul. 97-57 supplemented and superseded. |
| Rev. Rul. 98-58(PDF, 24K) |
IRB #1998-52(HTML) |
Dec. 28, 1998 |
| Section 1274A inflation-adjusted numbers for 1999. This ruling provides the dollar amounts, increased by the 1999 inflation-adjustment, for section 1274A of the Code. Rev. Rul. 97-56 supplemented and superseded. |
| Rev. Rul. 98-57(PDF, 18K) |
IRB #1998-49(HTML) |
Dec. 7, 1998 |
| Federal rates; adjusted federal rates; adjusted federal long-term rate; and long-term exempt rate. For purposes of sections 1274, 1288, 382, and other sections of the Code, tables set forth the rates for December 1998. |
| Rev. Rul. 98-56(PDF, 17K) |
IRB #1998-47(HTML) |
Nov. 23, 1998 |
| Earned income credit; disqualified income. Gain that is treated as long-term capital gain under section 12 31 (a)(1) of the Code is not disqualified income for purposes of the earned income credit. |
| Rev. Rul. 98-55(PDF, 23K) |
IRB #1998-47(HTML) |
Nov. 23, 1998 |
| 1998 base period T-bill rate. The "base period T-bill rate" for the period ending September 30, 1998, is published, as required by section 995(f) of the Code. |
| Rev. Rul. 98-54(PDF, 18K) |
IRB #1998-46(HTML) |
Nov. 16, 1998 |
| LIFO; price indexes; department stores. The September 1998 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, 1998. |
| Rev. Rul. 98-53(PDF, 22K) |
IRB #1998-46(HTML) |
Nov. 16, 1998 |
| Covered compensation tables; 1999. The covered compensation tables for the 1999 calendar year for determining contributions to defined benefit plans and permitted disparity are set forth. |
| Rev. Rul. 98-52(PDF, 21K) |
IRB #1998-45(HTML) |
Nov. 9, 1998 |
| 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 1998. |
| Rev. Rul. 98-51(PDF, 18K) |
IRB #1998-43(HTML) |
Oct. 26, 1998 |
| LIFO; price indexes; department stores. The August 1998 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, 1998. |
| Rev. Rul. 98-50(PDF, 15K) |
IRB #1998-40(HTML) |
Oct. 5, 1998 |
| 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 1998. |
| Rev. Rul. 98-49(PDF, 18K) |
IRB #1998-40(HTML) |
Oct. 5, 1998 |
| Low-income housing tax credit. This ruling advises taxpayers that payments made to a building owner on behalf or in respect of a tenant under the Section 8 Assistance For Single-Room Occupancy Dwellings Program or under the Shelter Plus Care Program are not grants made with respect to a building or its operation under section 42(d)(5) of the Code. |
| Rev. Rul. 98-48(PDF, 18K) |
IRB #1998-39(HTML) |
Sept. 28, 1998 |
| LIFO; price indexes; department stores. The July 1998 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, 1998. |
| Rev. Rul. 98-47(PDF, 25K) |
IRB #1998-39(HTML) |
Sept. 28, 1998 |
| Residential rental property. For purposes of section 142(d) and 145(d) of the Code, the ruling provides that the availability of continual or frequent medical, nursing, or psychiatric services in a facility for the residents of the facility will cause the facility to be other than residential rental property. Other non-housing services available in a facility for the residents of the facility generally will not cause the facility to be other than residential rental property. |
| Rev. Rul. 98-46(PDF, 21K) |
IRB #1998-39(HTML) |
Sept. 28, 1998 |
| Interest rates; underpayments and overpayments. The rate of interest determined under section 6621 of the Code for the calendar quarter beginning October 1, 1998, will be 7 percent for overpayments, 8 percent for underpayments, and 10 percent for large corporate underpayments. The rate of interest paid on the portion of a corporate overpayment exceeding $10,000 is 5.5 percent. |
| Rev. Rul. 98-45(PDF, 16K) |
IRB #1998-38(HTML) |
Sept. 21, 1998 |
| Low-income housing credit; satisfactory bond; "bond factor" amounts for the period July through September 1998. 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 1998. |
| Rev. Rul. 98-44(PDF, 19K) |
IRB #1998-37(HTML) |
Sept. 14, 1998 |
| Section 355. This ruling declares Rev. Rul. 70-225 obsolete because it is no longer determinative following modifications made by the Taxpayer Relief Act of 1997, as amended by the Tax Technical Corrections Act of 1998. Rev. Rul. 70-225 addresses a distribution of the stock of a newly formed controlled corporation followed by an acquisition of the stock of the controlled corporation. Rev. Rul. 70-225 obsoleted. |
| Rev. Rul. 98-43(PDF, 18K) |
IRB #1998-36(HTML) |
Sept. 8, 1998 |
| Federal rates; adjusted federal rates; adjusted federal long-term rate, and the long-term exempt rate. For purposes of sections 1274, 1288, 382, and other sections of the Code, tables set forth the rates for September 1998. |
| Rev. Rul. 98-42(PDF, 18K) |
IRB #1998-35(HTML) |
Aug. 31, 1998 |
| LIFO; price indexes; department stores. The June 1998 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, 1998. |
| Rev. Rul. 98-41(PDF, 11K) |
IRB #1998-35(HTML) |
Aug. 31, 1998 |
| Employees' trust's unrelated business taxable income. An employees' trust's proportionate share of the income of a common trust fund is unrelated business taxable income (UBTI) to the extent that it would have been if the investment producing the income had been made directly by the employees' trust. Rev. Rul. 67-301 modified. |
| Rev. Rul. 98-40(PDF, 17K) |
IRB #1998-33(HTML) |
Aug. 17, 1998 |
| Fringe benefits aircraft valuation formula. For purposes of section 1. 61 -21 (g) of the Income Tax 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 second half of 1998 are set forth. |
| Rev. Rul. 98-39(PDF, 30K) |
IRB #1998-33(HTML) |
Aug. 17, 1998 |
| All events test; cooperative advertising. Under the all events test of section 461 of the Code, an accrual method manufacturer's liability for cooperative advertising services of a retailer is incurred in Year 1, the year the services are performed, provided the manufacturer is able to reasonably estimate the liability, even though the retailer does not submit the required claim form until Year 2. Rev. Proc. 97-37 modified and amplified. |
| Rev. Rul. 98-38(PDF, 20K) |
IRB #1998-32(HTML) |
Aug. 10, 1998 |
| Mutual life insurance companies; differential earnings rate. The differential earnings rate for 1997 and the recomputed differential earnings rate for 1996 are set forth for use by mutual life insurance companies to compute their income tax liabilities for 1997. |
| Rev. Rul. 98-37(PDF, 15K) |
IRB #1998-32(HTML) |
Aug. 10, 1998 |
| Rulings; obsolete. A list is given of rulings under the jurisdiction of the Associate Chief Counsel (Domestic) that have been identified as no longer determinative. |
| Rev. Rul. 98-36(PDF, 16K) |
IRB #1998-31(HTML) |
Aug. 3, 1998 |
| 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 1998. |
| Rev. Rul. 98-35(PDF, 18K) |
IRB #1998-30(HTML) |
July 27, 1998 |
| LIFO; price indexes; department stores. The May 1998 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, 1998. |
| Rev. Rul. 98-34(PDF, 16K) |
IRB #1998-31(HTML) |
Aug. 3, 1998 |
| Below-market loans; exempted loans; second mortgage Loans under the MAHRA Act. A below-market second mortgage loan made under the Multifamily Assisted Housing Reform and Affordability Act of 1997, by the Department of Housing and Urban Development (HUD) to the owner of a multifamily low-income rental property in connection with restructuring the existing first mortgage on the property, is exempted from section 7872 of the Code. |
| Rev. Rul. 98-33(PDF, 16K) |
IRB #1998-27(HTML) |
July 6, 1998 |
| 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 1998. |
| Rev. Rul. 98-32(PDF, 20K) |
IRB #1998-25(HTML) |
June 22, 1998 |
| Interest rates; underpayments and overpayments. The rate of interest determined under section 6621 of the Code for the calendar quarter beginning July 1, 1998, will be 7 percent for overpayments, 8 percent for underpayments, and 10 percent for large corporate underpayments. The rate of interest paid on the portion of a corporate overpayment exceeding $10,000 is 5.5 percent. |
| Rev. Rul. 98-31(PDF, 13K) |
IRB #1998-25(HTML) |
June 22, 1998 |
| Low-income housing credit; satisfactory bond; "bond factor" amounts for the period April through June 1998. 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 1998. |
| Rev. Rul. 98-30(PDF, 18K) |
IRB #1998-25(HTML) |
June 22, 1998 |
| Qualified cash or deferred arrangement; participation. This ruling describes certain criteria that must be met before an employee's compensation can be contributed to an employer's section 401 (k) plan in the absence of an affirmative election by the employee. |
| Rev. Rul. 98-29(PDF, 15K) |
IRB #1998-24(HTML) |
June 15, 1998 |
| LIFO; price indexes; department stores. The April 1998 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, 1998. |
| Rev. Rul. 98-28(PDF, 16K) |
IRB #1998-22(HTML) |
June 1, 1998 |
| 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 1998. |
| Rev. Rul. 98-27(PDF, 20K) |
IRB #1998-22(HTML) |
June 1, 1998 |
| Spin-off of subsidiary, followed by its merger with unrelated corporation. Based on the enactment of section 1012 of the Taxpayer Relief Act of 1997, the Service will not apply Court Holding (or any formulation of the step transaction-doctrine) to determine whether the distributed corporation was a controlled corporation immediately before the distribution under section 355(a) solely because of any post distribution acquisition or restructuring of the distributed corporation, whether prearranged or not. Rev. Ruls. 96-30 and 75-406 obsoleted. Rev. Rul. 70-225 modified. |
| Rev. Rul. 98-26(PDF, 15K) |
IRB #1998-21(HTML) |
May 26, 1998 |
| LIFO; price indexes; department stores. The March 1998 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, 1998. |
| Rev. Rul. 98-25(PDF, 21K) |
IRB #1998-19(HTML) |
May 11, 1998 |
| Business expenses; storage tanks. Under the circumstances described in this revenue ruling, the costs incurred to replace underground storage tanks containing waste byproducts (including the cost of removing, cleaning, and disposing of the old tanks, and acquiring, installing, and filling the new tanks) are deductible as ordinary and necessary business expenses under section 162 of the Code. |
| Rev. Rul. 98-24(PDF, 16K) |
IRB #1998-19(HTML) |
May 11, 1998 |
| Exemption from certain federal excise taxes for consular officers and employees. If consular officers and employees and members of their families forming part of their households purchase from the manufacturer an article otherwise subject to a federal excise tax on sales by manufacturers, or purchase from a retailer an article otherwise subject to a federal excise tax on sales by retailers, the transaction will not be taxed. Rev. Rul. 73-198 modified and Rev. Rul. 68-352 obsoleted. |
| Rev. Rul. 98-23(PDF, 18K) |
IRB #1998-18(HTML) |
May 4, 1998 |
| 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 1998. |
| Rev. Rul. 98-22(PDF, 17K) |
IRB #1998-19(HTML) |
May 11, 1998 |
| Special use value; farms; interest rates. The 1998 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. 98-21(PDF, 18K) |
IRB #1998-18(HTML) |
May 4, 1998 |
| Transfer of non-statutory stock option. This ruling provides guidance on the time that a completed gift occurs when a non-statutory stock option is transferred without consideration by the optioned to a family member. |
| Rev. Rul. 98-20(PDF, 19K) |
IRB #1998-15(HTML) |
April 13, 1998 |
| LIFO; price indexes; department stores. The February 1998 Bureau of Labor Statistics price indexes are accepted for use by department stores employing the retail inventory and last-in, first-out inventory methods for valuing inventories for tax years ended on, or with reference to, February 28, 1998. |
| Rev. Rul. 98-19(PDF, 15K) |
IRB #1998-15(HTML) |
April 13, 1998 |
| Relocation payments; Housing and Community Development Act. A relocation payment, authorized by section 105(a)(1 1) of the Housing and Community Development Act and funded under the 1997 Emergency Supplemental Appropriations-Act for Recovery From Natural Disasters, made by a local jurisdiction to an individual moving from a flood-damaged residence to another residence, is not includible in the individual's gross income. |
| Rev. Rul. 98-18(PDF, 15K) |
IRB #1998-14(HTML) |
April 6, 1998 |
| 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 1998. |
| Rev. Rul. 98-17(PDF, 15K) |
IRB #1998-13(HTML) |
March 30, 1998 |
| Interest rates; underpayments and overpayments. The rate of interest determined under section 6621 of the Code for the calendar quarter beginning April 1, 1998, will be 7 percent for overpayments, 8 percent for underpayments, and 10 percent for large corporate underpayments. The rate of interest paid on the portion of a corporate overpayment exceeding $10,000 is 5.5 percent. |
| Rev. Rul. 98-16(PDF, 17K) |
IRB #1998-13(HTML) |
March 30, 1998 |
| LIFO; price indexes; department stores. The January 1998 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, 1998. |
| Rev. Rul. 98-15(PDF, 38K) |
IRB #1998-12(HTML) |
March 23, 1998 |
| Tax consequences of participation by hospitals described in section 501(c)(3) of the Code injoint ventures with for-profit entities. This ruling provides examples illustrating whether nonprofit hospitals that participate in joint ventures with for-profit entities continue to qualify for exemption as organizations described in section 501(c)(3) of the Code. |
| Rev. Rul. 98-14(PDF, 15K) |
IRB #1998-11(HTML) |
March 16, 1998 |
| Fringe benefits aircraft valuation formula. For purposes of section 1.61-21 (g) of the Income Tax Regulations, relating to the rule for valuing noncommercial flights on aircraft, the Standard Industry Fare Level (SIFL) cents-per-mile rates and terminal charge in effect for the first half of 1998 are set forth. |
| Rev. Rul. 98-13(PDF, 14K) |
IRB #1998-11(HTML) |
March 16, 1998 |
| Low-income housing credit; satisfactory bond; "bond factor" amounts for the period January through March 1998. 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 1998. |
| Rev. Rul. 98-12(PDF, 30K) |
IRB #1998-10(HTML) |
March 9, 1998 |
| 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. 97-11. |
| Rev. Rul. 98-11(PDF, 13K) |
IRB #1998-10(HTML) |
March 9, 1998 |
| 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 1998. |
| Rev. Rul. 98-10(PDF, 24K) |
IRB #1998-10(HTML) |
March 9, 1998 |
| Reorganizations; exchange of securities. An acquisition of stock for solely voting stock, accompanied under the reorganization plan by an exchange of securities for securities that are of equal fair market value and equal principal amount, qualifies as a corporate reorganization under section 368(a)(1)(B) of the Code. Section 354(a)(1) non-recognition applies to the securities-for-securities exchange. |
| Rev. Rul. 98-9(PDF, 19K) |
IRB #1998-6(HTML) |
Feb. 9, 1998 |
| LIFO; price indexes; department stores. The December 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, December 31, 1997. |
| Rev. Rul. 98-8(PDF, 28K) |
IRB #1998-7(HTML) |
Feb. 17, 1998 |
| Disposition of qualifying income interest. If a surviving spouse acquires the remainder interest in a trust subject to a QTIP election under section 2056(b)(7) of the Code in connection with the transfer by the surviving spouse of property or cash to the holder of the remainder interest, the surviving spouse makes a gift under sections 2511, 2512, and 2519 of the Code. |
| Rev. Rul. 98-7(PDF, 15K) |
IRB #1998-6(HTML) |
Feb. 9, 1998 |
| 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 1998. |
| Rev. Rul. 98-6(PDF, 21K) |
IRB #1998-4(HTML) |
Jan. 26, 1998 |
| LIFO; price indexes; department stores. The November 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, November 30, 1997. |
| Rev. Rul. 98-5(PDF, 20K) |
IRB #1998-2(HTML) |
Jan. 12, 1998 |
| Bows and arrows; taxable and nontaxable articles. A list of taxable and nontaxable articles is provided for use by manufacturers, producers, and importers in determining their liability for the manufacturers tax on archery equipment imposed by section 4161 of the Code. The list reflects changes to the tax on archery equipment made by the Taxpayer Relief Act of 1997. Rev. Rul. 75-17 supplemented and superseded. |
| Rev. Rul. 98-4(PDF, 13K) |
IRB #1998-2(HTML) |
Jan. 12, 1998 |
| 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 1998. |
| Rev. Rul. 98-3(PDF, 17K) |
IRB #1998-2(HTML) |
Jan. 12, 1998 |
| Low-income housing credit; satisfactory bond; "bond factor" amounts for the period October through December 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 October through December 1997. The ruling also corrects errors in the bond factor amounts for properties placed in service in 1987 and disposed of between January through September 1997. |
| Rev. Rul. 98-2(PDF, 21K) |
IRB #1998-2(HTML) |
Jan. 12, 1998 |
| 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 1997 and 1998. Rev. Rul. 92-19 supplemented in part. |
| Rev. Rul. 98-1(PDF, 65K) |
IRB #1998-2(HTML) |
Jan. 12, 1998 |
| Limitations on benefits and contributions. Questions and answers on the limitations on benefits and contributions under section 415 of the Code, as amended by the Uruguay Round Agreements Act, and taking into account the applicable provisions of the Small Business Job Protection Act of 1996, are set forth. |
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