Rev. Proc. 77-1

Rev. Proc. 76-13, 1976-1 C.B. 553, amplified Rev. Proc. 72-9, 1972-1 C.B. 718, by including the following areas in section 3.01 of Rev. Proc. 72-9, which lists specific areas of the Internal Revenue Code of 1954 in regard to which the Internal Revenue Service will not issue advance rulings or determination letters:

(a) Section 368(a)(1)(A), (B), or (C). Whether these sections are applicable to an acquisition of assets or stock of or by an investment company (including a regulated investment company described in section 851).

(b) Section 721. Whether gain or loss is recognized on transfers of property to a partnership, if the property is transferred to a partnership that would be treated as an investment company (within the meaning of section 351) if the partnership were incorporated.

Section 368(a)(2)(F)(i) of the Code, as added by section 2131(a) of the Tax Reform Act of 1976 (the Act), Pub. L. No. 94-455, 1976-3 C.B., 94th Cong., 2d Sess. (October 4, 1976), provides that if immediately before a transaction described in section 368(a)(1)(A), (B), (C), (D), or (F), two or more parties to the transaction were investment companies, then the transaction shall not be considered to be a reorganization with respect to any such investment company (and its shareholders and security holders) unless it was a regulated investment company, a real estate investment trust, or a corporation that meets the requirements of section 368(a)(2)(F)(ii).

Section 721(b) of the Code, as added by section 2131(b) of the Act, provides that the nonrecognition of gain or loss on contributions of property to a partnership provided by section 721(a) shall not apply to gain realized on a transfer of property to a partnership that would be treated as an investment company (within the meaning of section 351) if the partnership were incorporated.

In general, section 2131(f) of the Act provides that the amendment made by sections 2131(a) and 2131(b) shall apply to transfers made after February 17, 1976, in taxable years ending after such date.

Rev. Proc. 76-13 is revoked and requests for rulings and regarding transactions described therein will be considered.