SERVICE ADDS TO NO-RULING LIST.

Rev. Proc. 87-30

SECTION 1. BACKGROUND

Rev. Proc. 87-3, 1987-1 I.R.B. 27, sets forth areas in which advance rulings or determination letters will not be issued by the Internal Revenue Service. Section 3 of Rev. Proc. 87-3 is entitled "Areas in Which Rulings or Determination Letters Will Not Be Issued."

SEC. 2. PROCEDURE

Rev. Proc. 87-3 is hereby amplified by adding to section 3.01 the following new section:

Section 453A(a). -- Installment Method For Dealers In Personal Property -- Whether sales made by a dealer under a deferred payment plan qualify for treatment as sales on the installment plan under section 1.453-2(b)(1) of the Income Tax Regulations.

SEC. 3. PURPOSE

This section is being added to Rev. Proc. 87-3 because the determination of whether a plan, by its terms and conditions, contemplates that sales will be paid for in two or more payments is dependent on the facts and circumstances. See Rev. Rul. 87-48, page 5, this Bulletin.

SEC. 4. EFFECTIVE DATE

This revenue procedure applies to all ruling requests in the National Office on June 22, 1987, the date of publication of this revenue procedure in the Internal Revenue Bulletin, and to requests received thereafter.

SEC. 5 EFFECT ON OTHER REVENUE PROCEDURES

Rev. Proc. 87-3 is amplified.