SERVICE WILL NO LONGER RULE ON WHETHER A PENSION PLAN DISTRIBUTION TO A RETIRED MINISTER IS A PARSONAGE ALLOWANCE.

Rev. Proc. 89-54

SECTION 1. BACKGROUND

Rev. Proc. 89-3, 1989-1 I.R.B. 29, sets forth areas in which advance rulings or determination letters will not be issued by the Internal Revenue Service. Section 5 of Rev. Proc. 89-3 is entitled "Areas Under Extensive Study in Which Ruling Or Determination Letters Will Not Be Issued Until The Service Resolves The Issue Through Publication Of A Revenue Ruling, Revenue Procedure, Regulations Or Otherwise."

SEC. 2. PROCEDURE

Rev. Proc. 89-3 is hereby amplified by adding to section 5 the following new section:

Section 107. -- Rental value of Parsonages. -- Whether amounts distributed to a retired minister from a pension or annuity plan should be excludible from the minister's gross income as a parsonage allowance under section 107.

SEC. 3. EFFECTIVE DATE

This revenue procedure will apply to all ruling requests on hand in the National Office on September 11, 1989, the date of publication of this revenue procedure in the Internal Revenue Bulletin, as well as to requests received thereafter.

SEC. 4. EFFECT ON OTHER REVENUE PROCEDURES

Rev. Proc. 89-3 is amplified.

SEC. 5. DRAFTING INFORMATION

The principal author of this revenue procedure is John T. Ricotta of the Office of the Assistant Chief Counsel (Employee Benefits and Exempt Organizations). For further information regarding this revenue procedure contact Mr. Ricotta on (202) 566-4747 (not a toll-free call).