SERVICE CORRECTS LIST OF AREAS IN WHICH ADVANCE RULINGS WILL NOT BE ISSUED BY ASSOCIATE CHIEF COUNSEL (TECHNICAL).

Rev. Proc. 90-3A

Rev. Proc. 90-3 lists areas in which the Internal Revenue Service will not issue rulings or determination letters. This revenue procedure revises Rev. Proc. 90-3 to correct errors in sections 3.013, concerning section 105(h) of the Code, and 5.04, concerning sections 83 and 451 of the Code.

1. SECTION 3.013

Section 3.013 was deleted in error when Rev. Proc. 89-3, 1989-1 C.B. 761 was updated and restated in Rev. Proc. 90-3, 1990-1 I.R.B. 54. Accordingly, section 3 of Rev. Proc. 90-3 is hereby supplemented by reinserting section 3.013 of Rev. Proc. 89-3 as section 3.013(a) of Rev. Proc. 90-3, and redesignating existing section 3.013 as section 3.013(b). Section 1.02 of Rev. Proc. 90-3 is hereby corrected by striking out subsection 1, which noted the deletion of section 3.013 of Rev. Proc. 89-3, and redesignating subsections 2 through 15 as subsections 1 through 14.

The erroneously deleted and now reinstated section 3.013 material provides that the Service will not issue rulings or determination letters concerning:

"Section 105(h) -- Amount Paid to Highly Compensated Individuals Under Discriminatory Self-Insured Medical Expense Reimbursement Plan. -- Whether, following a determination that a self-insured medical expense reimbursement plan is discriminatory, that plan had previously made reasonable efforts to comply with tax discrimination rules."

2. SECTION 5.04

Rev. Proc. 89-22, 1989-1 C.B. 843, amplified section 5 of Rev. Proc. 89-3 by adding a new paragraph concerning sections 83 and 451 of the Code. In Announcement 89-42, 1989-13 I.R.B. 53, the Service corrected this paragraph, a portion of which was inadvertently omitted in publishing Rev. Proc. 89-22. When section 5 of Rev. Proc. 89-3 was updated and restated in Rev. Proc. 90-3, this paragraph was restated as it originally appeared in Rev. Proc. 89-22 without incorporating the correction made by Announcement 89-42,

Accordingly, section 5.04 of Rev. Proc. 90-3 is hereby clarified to provide that the Service will not issue rulings or determination letters concerning:

"Sections 83 and 451. -- Property Transferred in Connection with Performance of Services; General Rule for Taxable Year of Inclusion. -- When compensation is realized by a person who, in connection with the performance of services, is granted a nonstatutory option without a readily ascertainable fair market value TO PURCHASE STOCK AT A PRICE THAT IS LESS THAN THE FAIR MARKET VALUE of the stock on the date the option is granted." (Italicized [capitalized] material indicates inserted language.)

EFFECTIVE DATE

The changes set forth in this Rev. Proc. are effective as if included in Rev. Proc. 90-3.

EFFECT ON OTHER REVENUE PROCEDURES

Rev. Proc. 90-3 is supplemented and clarified. The changes set forth in this Rev. Proc. will be reflected in Rev. Proc. 90-3 when it is reprinted in 1990-1 C.B.