IRS OPENS RULING PROCESS TO LIKE-KIND EXCHANGES OF ASSETS OF SIMILAR OR IDENTICAL BUSINESSES.

Rev. Proc. 91-61

SECTION 1. BACKGROUND

01 Rev. Proc. 91-3, 1991-1 C.B. 364, sets forth areas under the jurisdiction of the Associate Chief Counsel (Technical) in which advance rulings and determination letters will not be issued by the Internal Revenue Service. Section 5 of Rev. Proc. 91-3 is entitled "AREAS UNDER EXTENSIVE STUDY IN WHICH RULINGS AND DETERMINATION LETTERS WILL NOT BE ISSUED UNTIL THE SERVICE RESOLVES THE ISSUE THROUGH PUBLICATION OF A REVENUE RULING, REVENUE PROCEDURE, REGULATIONS OR OTHERWISE."

02 Section 5.17 of Rev. Proc. 91-3 concerns the determination of like-kind property (other than real property) under section 1031 of the Internal Revenue Code in a transaction involving an exchange of the assets of similar or identical businesses.

03 The Service has issued final regulations relating to exchanges of personal property and multiple properties under section 1031 of the Code. See sections 1.1031(a)-2 and 1.1031(j)-1 of the Income Tax Regulations.

SEC. 2. PROCEDURE

Because of the issuance of the above regulations, Rev. Proc. 91- 3 is modified by deleting section 5.17.

SEC. 3. EFFECT ON OTHER REVENUE PROCEDURES

Rev. Proc. 91-3 is modified.

SEC. 4. EFFECTIVE DATE

This revenue procedure is effective December 2, 1991, the date of its publication in the Internal Revenue Bulletin.

SEC. 5. DRAFTING INFORMATION

The principal author of this revenue procedure is Douglas Fahey of the Office of Assistant Chief Counsel (Income Tax and Accounting). For further information regarding this revenue procedure, contact Mr. Fahey on (202) 535-5983 (not a toll-free call).