CONSENT DIVIDEND PROCEDURE REMOVED FROM NO-RULING LIST.

Rev. Proc. 88-38

SECTION 1. PURPOSE

This revenue procedure removes from the no-ruling list the issue of whether the consent dividend procedure under section 565 of the Internal Revenue Code is applicable to corporations other than those corporations to which sections 535, 545, 556, 852 and 857 are applicable.

SEC. 2. BACKGROUND

01 Section 5 of Rev. Proc. 88-3, 1988-1 I.R.B. 29, contains a list of areas under extensive study in which rulings or 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 5.22 of Rev. Proc. 88-3 includes in the "no-ruling list" the issue of whether the consent dividend procedure under section 565 of the Code applies to corporations other than those corporations to which sections 535, 545, 556, 852, and 857 are applicable.

03 The issue described in section 5.22 of Rev. Proc. 88-3 has been resolved by section 1.565-1T of the temporary Income Tax Regulations, adopted in T.D. 8166, effective for tax years ending after December 15, 1987.

SEC. 3 PROCEDURE

Rev. Proc. 88-3 is modified by deleting section 5.22.

SEC. 4. COMMENTS OR INQUIRIES

Comments or inquiries regarding this revenue procedure should be addressed to the Associate Chief Counsel (Technical and International), Attention CC:C:2 Internal Revenue Service, 1111 Constitution Ave., N.W., Washington, D.C. 20224.

SEC. 5. EFFECT ON OTHER DOCUMENTS

Rev. Proc. 88-3 is modified.

SEC. 6. EFFECTIVE DATE

This revenue procedure is effective August 8, 1988, the date of its publication in the Internal Revenue Bulletin.

DRAFTING INFORMATION

This principal author of this revenue procedure is Paul F. Handleman of the Corporation Tax Division. For further information regarding this revenue procedure contact Mr. Handleman on (202) 566- 6203 (not a toll-free call).