SAFE HARBOR PROVIDED FOR PUBLICLY TRADED PARTNERSHIPS.

Rev. Proc. 92-101

SECTION 1. PURPOSE

This revenue procedure provides certain publicly traded partnerships a safe harbor for determining whether a new business activity is closely related to a pre-existing line of business under section 1.7704-2(d) of the Income Tax Regulations.

SEC. 2. BACKGROUND

Under section 1.7704-2(d) of the regulations, a business activity of an "existing partnership" (as defined under section 1.7704-2(b)) is not a "new line of business" if the activity is "closely related" to the "pre-existing business" of the partnership. The regulations determine what is a new line of business based on all of the facts and circumstances and specify eight factors to be taken into account. Included in the factors is whether the pre-existing business and the new business activity are assigned the same four- digit Industry Number Standard Identification Code (Industry SIC Code), as set forth in the Standard Industrial Classification Manual, prepared,and from time to time revised, by the Statistical Policy Division of the United States Office of Management and Budget.

This revenue procedure designates certain Industry SIC Codes as containing businesses all of which are closely related for purposes of section 1.7704-2(d) of the regulations.

SEC. 3. SCOPE

The safe harbor provided by this revenue procedure is available to certain publicly traded partnerships if they satisfy the following conditions:

01 Taxpayer must be an existing partnership as defined in section 1.7704-2(b) of the regulations; and

02 The existing partnership must have a pre-existing business as defined in section 1.7704-2(d) (2) of the regulations.

SEC. 4. APPLICATION

If the conditions of section 3 are satisfied, the Internal Revenue Service will treat the new business activity of an existing partnership as closely related to the pre-existing line of business of that partnership for purposes of section 1.7704-2(d) of the regulations if both the new business activity and the pre-existing line of business are described within the same Industry SIC Codes among those listed below:

      Tree Nuts                     Industry SIC Code 0173

DRAFTING INFORMATION

The principal author of this revenue procedure is Ann Veninga of the Office of the Assistant Chief Counsel (Passthroughs and Special Industries). For further information regarding this revenue procedure, contact Ms. Veninga on (202) 622-3080 (not a toll-free call).