SERVICE WILL ACCEPT RULINGS REQUESTS ON ALL ASPECTS OF '86 ACT.
Rev. Proc. 88-18; 1988-1 C.B. 694
- Institutional AuthorsInternal Revenue Service
- Cross-Reference26 CFR 601.201
- Index Termsrevenue ruling
- Jurisdictions
- LanguageEnglish
- Tax Analysts Document NumberDoc 88-4037
- Tax Analysts Electronic Citation88 TNT 88-7
Rev. Proc. 88-18 1
SECTION 1. PURPOSE
To deal more efficiently with the need for guidance occasioned by the Tax Reform Act of 1986 and the Revenue Act of 1987, this revenue procedure provides conditions under which the Associate Chief Counsel (Technical and International) will consider requests for letter rulings pending the adoption of either temporary or final regulations. The objective of these changes is to expand the letter rulings process so that the Service will be able to issue rulings that previously would have been precluded by the provisions of section 5.07(2) of Rev. Proc. 88-1, 1988-1 I.R.B. 7.
SEC. 2.
01 Section 5.07(2) of Rev. Proc. 88-1 is modified to except from its conditions all Code sections added or revised by the Tax Reform Act of 1986 or the Revenue Act of 1987.
02 For Code sections described in section 2.01 above, the appropriate Branch in Technical and International will entertain all ruling requests and do its best to issue a ruling. However, the Service reserves in all cases the right not to rule when the issue cannot be properly resolved in advance of regulations.
03 When the Service has closed a regulations project (see, for example, the extensive list published in IR 86-167, dated December 9, 1986) or does not intend to open a regulations project (see list below), section 5.07 of Rev. Proc. 88-1 does not apply and the appropriate Branch will entertain all ruling requests unless the issue is covered by the no-rule provisions of section 7 of Rev. Proc. 88-1 or by Rev. Proc. 88-3, 1988-1 I.R.B. 29, or later updates of these two revenue procedures. The following is a partial list of Tax Reform Act of 1986 Code sections for which a tentative decision has been made not to open up a regulations project:
IRC TRA-86 SUBJECT
SECTION(S) SECTION(S)
38, 46 212 Effective 15-year Carryback
of Existing Carryforwards
of Steel Companies
38, 46 213 Effective 15-year Carryback
of Existing Carryforwards
of Qualified Farmers
48(1) 421 Extension of the Energy
Investment Credit for
Solar, Geothermal, Ocean
Thermal, and Biomass
Property
49 211 Repeal of Regular Investment
Tax Credit
51 1701 Extension and Revision of
Targeted Jobs Credit
162 142 Educational Travel
168 203 & 204 Transitional Rules for
Property Depreciable Under
Section 167(a) of the Code
274 142 Expenditures for Meals,
Travel, and Entertainment
301,302,1059 614(e) Reduction of Stock Basis
for Untaxed Portion of
Extraordinary Dividends
332,338 1804(e)(6) 80-percent Voting and
and (8) Value Test
361 1804(g) Recognition of Gain on
Distribution of Property in a
Reorganization
451(f) 821 Utilities Using Accrual
Accounting
469 502(c) Transition Rule for Low-
Income Housing
832(b) 1021(c) Inclusion in Income of 2
Percent of Unearned Premium
Reserve
1092 331 Straddles -- Year End Rule
1254 413 Gain From Disposition of
Interest in Oil, Gas,
Geothermal, or Other
Mineral Properties
1504(a) 1804(e)(4) Exception for Alaska Native
Corporations to File
Consolidated Income Tax
Returns Without Equity
Ownership in Subsidiaries
04 The following is a partial list of Revenue Act of 1987 Code sections for which a tentative decision has been made not to open a regulation project:
IRC RA-87 SUBJECT
SECTION(S) SECTIONS
11(b) 10224(a) Benefits of graduated
corporate rates not allowed
to personal service
corporations
21(b) 10101 Dependent care credit;
overnight camps
51(c) 10601 Targeted jobs credit;
wages during labor
disputes
56(a)(6) 10202(d) Minimum tax: Installment
sales of certain property
56(f)(2) 10243 Treatment of mutual life
insurance co. policy holder
dividends for purpose of book
income
81 10201(b)(1) Repeal of section 81,
relating to vacation pay
243 10221 Reduction in
245(c)(1) dividends received
246(b) deduction for
246A(a)(1) dividends from
805(a)(4)(B) corporations not 20
854(b)(1)(A) percent owned
861(a)(2)
463 10201(a) Repeal of section 463,
relating to vacation pay
2001(C) 10401 5-year extension of existing
rates; phaseout of benefits
of existing rates and unified
credit
4121(e)(2) 10503 Extension of temporary
increase in amount of tax
imposed on coal producers
4251(b) 10501 Extension of telephone excise
tax
* * * 10511 Fees for request for ruling,
determination, and similar
letters
05 The appropriate Branch Chief will discuss with taxpayers or their representatives whether a ruling concerning any Code section not listed above can be issued.
SEC. 3. USER FEE
01 Section 4.05 of Rev. Proc. 88-8, 1988-4 I.R.B. 22, as modified by Rev. Proc. 88-13, 1988-7 I.R.B. 7, provides generally that all requests for rulings received after February 1, 1988, must be accompanied by a check or money order, payable to the Internal Revenue Service, in the appropriate amount.
02 Each request for a ruling submitted under the instant revenue procedure and pursuant to Rev. Proc. 88-1 or Rev. Proc. 87-4, 1987-1 I.R.B. 33, should be sent to the Internal Revenue Service, Associate Chief Counsel (Technical and International), Attention: CC:IND:D:C, P.O. Box 7604, Ben Franklin Station, Washington, D.C. 20044; Requests may be hand-delivered to Room 6561, 1111 Constitution Avenue, N.W., Washington, D.C.
SEC. 4. EFFECT ON OTHER REVENUE PROCEDURES
Rev. Proc. 88-1 is modified.
Rev. Proc. 87-7, 1987-2 I.R.B. 15, is superseded.
SEC. 5. EFFECTIVE DATE
This revenue procedure is effective for requests received prior to May 16, 1988, the date of its publication in the Internal Revenue Bulletin, as well as to those received thereafter.
1 Also released as News Release IR-88-79, dated April 21, 1988.
- Institutional AuthorsInternal Revenue Service
- Cross-Reference26 CFR 601.201
- Index Termsrevenue ruling
- Jurisdictions
- LanguageEnglish
- Tax Analysts Document NumberDoc 88-4037
- Tax Analysts Electronic Citation88 TNT 88-7