Rev. Rul. 55-204

Advice has been requested concerning the information necessary to be filed by an individual employer supporting deductions claimed under section 23(p) of the Internal Revenue Code of 1939 for contributions to an employee's trust or annuity plan on an industry-wide or area-wide basis negotiated by a labor union, when the trustees of the plan file the complete data required under section 39.23(p)-2 of Regulations 118 for all contributing employers.

Employers who claim deductions under section 23(p) of the Code are required to file the information specified in section 39.23(p)-2 of Regulations 118, to the extent applicable, by way of supporting the deductions claimed. Such information must be filed in the office of the District Director of Internal Revenue in which the employer files his tax returns. However, section 39.23(p)-2(e) of Regulations 118 authorizes the Commissioner to require any further information considered necessary to determine allowable deductions under section 23(p) of the Code or qualification under section 165(a) and to waive the filing of such information required by section 39.23(p)-2 of Regulations 118 which he finds unnecessary in a particular case. Pursuant to this authority, certain changes as noted below, will be made in the information required to be filed.

In the case of an employees' trust or annuity plan established on an industry-wide or area-wide basis and negotiated by a labor union for the benefit of employees who are employed by one or more of a group of contributing employers, in which the contributions of the employers are based on such determinable factors as man-hours worked or units produced, it will not be necessary for each individual employer to furnish all of the information required by section 39.23(p)-2 of Regulations 118 provided the plan trustees or an authorized association of the employers furnishes such data for the entire group of participating employers. In such cases, where it is desired to limit the information to be furnished by the several individual employers, the plan trustee or the association of employers should furnish once each year the information required by section 39.23(p)-2(a) of Regulations 118, as follows:

(1) the information listed under subparagraphs (1), (2), and (7), except that when such information has once been furnished, it need not be repeated unless a change in the facts makes a resubmission necessary; in which case, see subparagraph (b) of section 39.23(p)-2 of Regulations 118;

(2) the information listed under subparagraphs (4)(i) and (5) on an over-all basis for the entire plan, unless each participating employer furnishes such information with respect to his own employees; and

(3) the information required by subparagraphs (6) and (8).

If the information specified above is furnished by the trustees or the authorized association for the entire group of employers, each individual employer claiming a deduction under section 23(p) of the Code may limit the information he furnishes by attaching to his income tax return a statement showing:

(1) that the deduction claimed is for contributions under (name of plan) and that a favorable ruling with respect thereto was issued on (date), containing symbols (- - -), and reference should also be made to this Revenue Ruling;

(2) the information required by subparagraph (9) of section 39.23(p)-2(a) of Regulations 118;

(3) that no other deductions are claimed under section 23(p) of the Code, except that if other deductions are claimed under this section, full information as called for under the above-cited section of Regulations 118 is to be furnished with respect to such other plans of deferred compensation; and

(4) that the plan trustees, or association of employers, have undertaken to furnish all other information required to be furnished under this Revenue Ruling.

Although this Revenue Ruling waives the requirement of filing certain information, it will not have the effect of precluding a District Director of Internal Revenue from requiring such additional information as is considered necessary to determine allowable deductions under section 23(p) of the Code or qualification under section 165(a) of the Code.

This Revenue Ruling is issued under the provisions of the Internal Revenue Code of 1939; however, it will also be effective under the Internal Revenue Code of 1954 to the extent that it will not be inconsistent with the provisions of regulations to be issued under section 404 of the 1954 Code