Internal Revenue bulletin May 11, 1998 · May 11, 1998 4 1998–19 I.R.B. Section 162.—Trade or Business Expenses 26 CFR 1.162–1: Business expenses. (Also section 263; 1.263(a)–1;

INCOME TAX

Rev. Rul. 98–25, page 4.Business expenses; storage tanks. Under the circum-stances described in this revenue ruling, the costs incurredto replace underground storage tanks containing waste by-products (including the cost of removing, cleaning, and dis-posing of the old tanks, and acquiring, installing, and fillingthe new tanks) are deductible as ordinary and necessarybusiness expenses under section 162 of the Code.

EMPLOYEE PLANSAnnouncement 98–38, page 26.Notice of proposed rulemkaing (REG–209476–82, 1998–8I.R.B. 36) under section 72(p) of the Code, relating to loansmade from a qualified employer plan to plan participants orbeneficiaries, is corrected.

EXEMPT ORGANIZATIONSAnnouncement 98–37, page 24.A list is given of organizations now classified as private foun-dations.

ESTATE TAX

Rev. Rul. 98–22, page 5.Special use value; farms; interest rates. The 1998 inter-est rates to be used in computing the special use value offarm real property for which an election is made under sec-tion 2032A of the Code are listed for estates of decedents.

EXCISE TAXRev. Rul. 98–24, page 6.Exemption from certain federal excise taxes for con-sular officers and employees. If consular officers andemployees and members of their families forming part oftheir households purchase from the manufacturer an articleotherwise subject to a federal excise tax on sales by manu-facturers, or purchase from a retailer an article otherwisesubject to a federal excise tax on sales by retailers, thetransaction will not be taxed. Rev. Rul. 73–198 modified andRev. Rul. 68–352 obsoleted.

ADMINISTRATIVENotice 98–28, page 7.Credit for producing fuel from a nonconventionalsource, Code section 29 inflation adjustment factorand reference price. This notice publishes the Code sec-tion 29 inflation adjustment factor, the nonconventionalsource fuel credit, and the section 29 reference price forcalendar year 1997. These data are used to determine thecredit allowable on fuel produced from a nonconventionalsource.

Rev. Proc. 98–33, page 7.General rules and specifications for private printing ofForms W–2 and W–3. Specifications are set forth for theprivate printing of paper substitutes for tax year 1998 FormW–2, Wage and Tax Statement, and Form W–3, Transmittalof Wage and Tax Statements. Rev. Procs. 97–24 and97–24A superseded.

Internal Revenue

bbuulllleettiinnBulletin No. 1998–19

May 11, 1998

HIGHLIGHTSOF THIS ISSUEThese synopses are intended only as aids to the reader inidentifying the subject matter covered. They may not berelied upon as authoritative interpretations.

Department of the TreasuryInternal Revenue Service

Finding Lists begin on page 28.

Mission of the Service

The purpose of the Internal Revenue Service is to collectthe proper amount of tax revenue at the least cost; servethe public by continually improving the quality of our prod-

ucts and services; and perform in a manner warrantingthe highest degree of public confidence in our integrity, effi-ciency, and fairness.

2

Statement of Principlesof Internal RevenueTax AdministrationThe function of the Internal Revenue Service is to adminis-ter the Internal Revenue Code. Tax policy for raising revenueis determined by Congress.

With this in mind, it is the duty of the Service to carry out thatpolicy by correctly applying the laws enacted by Congress;to determine the reasonable meaning of various Code provi-sions in light of the Congressional purpose in enacting them;and to perform this work in a fair and impartial manner, withneither a government nor a taxpayer point of view.

At the heart of administration is interpretation of the Code. Itis the responsibility of each person in the Service, chargedwith the duty of interpreting the law, to try to find the truemeaning of the statutory provision and not to adopt astrained construction in the belief that he or she is “protect-ing the revenue.” The revenue is properly protected onlywhen we ascertain and apply the true meaning of the statute.

The Service also has the responsibility of applying andadministering the law in a reasonable, practical manner.Issues should only be raised by examining officers whenthey have merit, never arbitrarily or for trading purposes.At the same time, the examining officer should never hesi-tate to raise a meritorious issue. It is also important thatcare be exercised not to raise an issue or to ask a court toadopt a position inconsistent with an established Serviceposition.

Administration should be both reasonable and vigorous. Itshould be conducted with as little delay as possible andwith great courtesy and considerateness. It should nevertry to overreach, and should be reasonable within thebounds of law and sound administration. It should, howev-er, be vigorous in requiring compliance with law and itshould be relentless in its attack on unreal tax devices andfraud.

The Internal Revenue Bulletin is the authoritative instrumentof the Commissioner of Internal Revenue for announcing offi-cial rulings and procedures of the Internal Revenue Serviceand for publishing Treasury Decisions, Executive Orders, TaxConventions, legislation, court decisions, and other items ofgeneral interest. It is published weekly and may be obtainedfrom the Superintendent of Documents on a subscriptionbasis. Bulletin contents of a permanent nature are consoli-dated semiannually into Cumulative Bulletins, which are soldon a single-copy basis.

It is the policy of the Service to publish in the Bulletin all sub-stantive rulings necessary to promote a uniform applicationof the tax laws, including all rulings that supersede, revoke,modify, or amend any of those previously published in theBulletin. All published rulings apply retroactively unless other-wise indicated. Procedures relating solely to matters of in-ternal management are not published; however, statementsof internal practices and procedures that affect the rightsand duties of taxpayers are published.

Revenue rulings represent the conclusions of the Service onthe application of the law to the pivotal facts stated in therevenue ruling. In those based on positions taken in rulingsto taxpayers or technical advice to Service field offices,identifying details and information of a confidential natureare deleted to prevent unwarranted invasions of privacy andto comply with statutory requirements.

Rulings and procedures reported in the Bulletin do not havethe force and effect of Treasury Department Regulations,but they may be used as precedents. Unpublished rulingswill not be relied on, used, or cited as precedents by Servicepersonnel in the disposition of other cases. In applying pub-lished rulings and procedures, the effect of subsequent leg-islation, regulations, court decisions, rulings, and proce-

dures must be considered, and Service personnel and oth-ers concerned are cautioned against reaching the same con-clusions in other cases unless the facts and circumstancesare substantially the same.

The Bulletin is divided into four parts as follows:

Part I.—1986 Code.This part includes rulings and decisions based on provisionsof the Internal Revenue Code of 1986.

Part II.—Treaties and Tax Legislation.This part is divided into two subparts as follows: Subpart A,Tax Conventions, and Subpart B, Legislation and RelatedCommittee Reports.

Part III.—Administrative, Procedural, and Miscellaneous.To the extent practicable, pertinent cross references tothese subjects are contained in the other Parts and Sub-parts. Also included in this part are Bank Secrecy Act Admin-istrative Rulings. Bank Secrecy Act Administrative Rulingsare issued by the Department of the Treasury’s Office of theAssistant Secretary (Enforcement).

Part IV.—Items of General Interest.With the exception of the Notice of Proposed Rulemakingand the disbarment and suspension list included in this part,none of these announcements are consolidated in the Cumu-lative Bulletins.

The first Bulletin for each month includes a cumulative indexfor the matters published during the preceding months.These monthly indexes are cumulated on a semiannual basisand are published in the first Bulletin of the succeeding semi-annual period, respectively.

3

Introduction

The contents of this publication are not copyrighted and may be reprinted freely. A citation of the Internal Revenue Bulletin as the source would be appropriate.

For sale by the Superintendent of Documents, U.S. Government Printing Office, Washington, DC 20402.

May 11, 1998 4 1998–19 I.R.B.

Section 162.—Trade or BusinessExpenses

26 CFR 1.162–1: Business expenses.(Also section 263; 1.263(a)–1; 1.162-3.)

Business expenses; storage tanks.Under the circumstances described in thisrevenue ruling, the costs incurred to re-place underground storage tanks contain-ing waste by-products (including the costof removing, cleaning, and disposing ofthe old tanks, and acquiring, installing,and filling the new tanks) are deductibleas ordinary and necessary business ex-penses under section 162 of the Code.

Rev. Rul. 98–25

ISSUE

Under the circumstances describedbelow, are the costs incurred to replaceunderground storage tanks (“USTs”) con-taining waste by-products (including thecost of removing, cleaning, and disposingof the old USTs, and acquiring, installing,and filling the new USTs) deductible bythe taxpayer as business expenses under § 162 of the Internal Revenue Code ormust they be capitalized under § 263?

FACTS

X, a corporation, employs the accrualmethod of accounting and uses a calendaryear. X operates a manufacturing facility.In the past, X’s manufacturing operationshad produced waste by-products in thecourse of its operations. Consistent withthe industry-wide practice at that time, Xplaced this waste in steel USTs (“oldUSTs”) that X buried on its land.

In 1998, X incurred costs to remove itsold USTs and replace them with USTsmade of a steel-fiberglass-reinforced plas-tic composite material (“new USTs”) thatcomply with current federal, state, andlocal environmental laws. X excavated ahole in the ground large enough to gainaccess to the old USTs. X then drainedthe waste from the old USTs and placed itin a temporary repository. X then liftedthe old USTs out of the hole, cleanedthem, and disposed of them at an appro-priate disposal facility. In the same tax-able year, X placed the new USTs in thesame hole, and transferred the waste from

the temporary repository into the newUSTs. Finally, X sealed the new USTsand filled the hole with soil.

The new USTs will not be emptied andreused, but will remain filled with thesame waste indefinitely. Applicable lawrequires that X continue to monitor theburied new USTs to detect leaks, if any.Once they are filled with waste and sealed,the new USTs have no salvage value.

LAW AND ANALYSIS

Sections 162 and 1.162–1(a) of the In-come Tax Regulations allow a deductionfor all the ordinary and necessary ex-penses paid or incurred during the taxableyear in carrying on any trade or business.

Section 1.162–3 provides, in part, thattaxpayers carrying materials and supplieson hand should include in expenses thecharges for materials and supplies only inthe amount that they are actually con-sumed and used in operation during thetaxable year for which the return is made.

Sections 263 and 1.263(a)–1(a) providethat no deduction is allowed for anyamounts paid out for new buildings or forpermanent improvements or bettermentsmade to increase the value of any prop-erty. Section 1.263(a)–2(a) provides thatcapital expenditures include the cost ofacquisition, construction, or erection ofbuildings, machinery and equipment, fur-niture and fixtures, and similar propertyhaving a useful life substantially beyondthe taxable year.

Through provisions such as §§ 162(a),263(a), and related sections, the Codegenerally endeavors to match expenseswith the revenues of the taxable period towhich the expenses are properly attribut-able, thereby resulting in a more accuratecalculation of net income for tax pur-poses. See, e.g., INDOPCO, Inc. v. Com-missioner, 503 U.S. 79, 84 (1992); Com-missioner v. Idaho Power Co., 418 U.S. 1,16 (1974). Moreover, as the SupremeCourt specifically recognized, the “deci-sive distinctions [between capital and or-dinary expenditures] are those of degreeand not of kind,” and a careful examina-tion of the particular facts of each case isrequired. Welch v. Helvering,290 U.S.111, 114 (1933); Deputy v. du Pont,308U.S. 488, 496 (1940); see also INDOPCO,503 U.S. at 87.

The useful life of an asset for § 263purposes is its useful life to the taxpayer,not its inherent useful life. See Silvertonv. Commissioner,T.C.M. 1977–198;Massey Motors, Inc. v. United States,364U.S. 92 (1960). Unlike most storagetanks, which are used to hold a substancetemporarily and are emptied and refilledrepeatedly throughout their useful lives,X’s new USTs are filled with waste once,sealed indefinitely, and thereafter have nosalvage value. Upon being filled withwaste and sealed, the new USTs have noremaining useful life to X. X’s new USTsare used merely to facilitate the disposalof waste and therefore are similar to a ma-terial or supply that is consumed and usedin operation during the taxable year. Ac-cordingly, because X acquired, filled, andsealed the new USTs all in 1998, the costsof acquiring and installing the new USTsare not capital expenditures, but are ordi-nary and necessary business expenses de-ductible under § 162. The new USTs,which are used once and then sealed in-definitely, are distinguishable from thegroundwater treatment facilities in Rev.Rul. 94–38, 1994–1 C.B. 35, which areused by the taxpayer substantially beyondthe taxable year.

Further, X’s costs of removing, clean-ing, and disposing of the old USTs, andfilling and on-going monitoring of thenew USTs are deductible as business ex-penses under § 162.

The results would be the same if X hadinstead ceased to operate the manufactur-ing facility in 1998 or in a previous tax-able year. The results would also be thesame if X had instead used storage tanksthat were designed to store waste aboveground.

HOLDING:

Under the circumstances describedabove, the costs incurred to replace USTscontaining waste by-products (includingthe cost of removing, cleaning, and dis-posing of the old USTs, and acquiring, in-stalling, and filling the new USTs) are de-ductible by the taxpayer as ordinary andnecessary business expenses under § 162.

EFFECT ON OTHER DOCUMENTS

Rev. Rul. 94-38 is distinguished.

Part I. Rulings and Decisions Under the Internal Revenue Code of 1986

DRAFTING INFORMATION

For further information contact MerrillFeldstein of the Income Tax and Account-ing division of the Office of Chief Coun-sel at (202) 622-4950 (not a toll free call).

Section 263.—CapitalExpenditures

26 CFR 1.263(a)–1: Capital expenditures; ingeneral.

Are the costs incurred to replace undergroundstorage tanks containing waste by-products (includ-ing the cost of removing, cleaning, and disposing ofthe old tanks, and acquiring, installing, and fillingthe new tanks) deductible by the taxpayer as busi-ness expenses under § 162 of the Code, or must theybe capitalized under § 263? See Rev. Rul. 98–25, page 4.

Section 2032A.—Valuation ofCertain Farm, Etc., RealProperty

26 CFR 20.2032A–4: Method of valuing farm realproperty.

Special use value; farms; interestrates. The 1998 interest rates to be usedin computing the special use value offarm real property for which an election ismade under section 2032A of the Codeare listed for estates of decedents.

Rev. Rul. 98–22

This revenue ruling contains a list ofthe average annual effective interest rateson new loans under the Farm Credit Banksystem. This revenue ruling also containsa list of the states within each Farm CreditBank District.

Under § 2032A(e)(7)(A)(ii) of the Inter-nal Revenue Code, rates on new FarmCredit Bank loans are used in computingthe special use value of real property usedas a farm for which an election is madeunder § 2032A. The rates in this revenueruling may be used by estates that valuefarmland under § 2032A as of a date in1998.

Average annual effective interest rates, calculated in accordance with § 2032A(e)(7)(A) and § 20.2032A-4(e) ofthe Estate Tax Regulations, to be usedunder § 2032A(e)(7)(A)(ii), are set forthin the accompanying Table of InterestRates (Table 1). The states within eachFarm Credit Bank District are set forth inthe accompanying Table of Farm CreditBank Districts (Table 2).

Rev. Rul. 81–170, 1981–1 C.B. 454,contains an illustrative computation of anaverage annual effective interest rate.The rates applicable for valuation in 1997are in Rev. Rul. 97–13, 1997–16 I.R.B. 4.For rate information for years prior to1997, see Rev. Rul. 96–23, 1996–1 C.B.

198, and other revenue rulings that arereferenced therein.


The principal author of this revenueruling is Lane Damazo of the Office ofAssistant Chief Counsel (Passthroughsand Special Industries). For further infor-mation regarding this revenue ruling, con-tact Lane Damazo on (202) 622-3090 (nota toll-free call).

1998–19 I.R.B. 5 May 11, 1998

REV. RUL. 98–22 TABLE 1

TABLE OF INTEREST RATES(Year of Valuation 1998)

Farm Credit Bank District in InterestWhich Property Is Located Rate

Columbia . . . . . . . . . . . . . . . . . . 9.32Omaha . . . . . . . . . . . . . . . . . . . . 8.17Sacramento . . . . . . . . . . . . . . . . . 8.38 St. Paul . . . . . . . . . . . . . . . . . . . . 8.28Spokane . . . . . . . . . . . . . . . . . . . 8.22Springfield . . . . . . . . . . . . . . . . . 8.74Texas . . . . . . . . . . . . . . . . . . . . . 8.19Wichita . . . . . . . . . . . . . . . . . . . . 8.27

REV. RUL. 98–22 TABLE 2

TABLE OF FARM CREDIT BANK DISTRICTS

District States

Columbia . . . . . . . . . . . . . . . . . . . . . . . Delaware, District of Columbia, Florida, Georgia, Maryland, North Carolina, Pennsyl-vania, South Carolina, Virginia, West Virginia.

Omaha . . . . . . . . . . . . . . . . . . . . . . . . . Iowa, Nebraska, South Dakota, Wyoming. Sacramento . . . . . . . . . . . . . . . . . . . . . Arizona, California, Hawaii, Nevada, Utah. St. Paul . . . . . . . . . . . . . . . . . . . . . . . . Arkansas, Illinois, Indiana, Kentucky, Michigan, Minnesota, Missouri, North Dakota,

Ohio, Tennessee, Wisconsin.Spokane . . . . . . . . . . . . . . . . . . . . . . . Alaska, Idaho, Montana, Oregon, Washington. Springfield . . . . . . . . . . . . . . . . . . . . . . Connecticut, Maine, Massachusetts, New Hampshire, New Jersey, New York, Rhode

Island, Vermont.Texas . . . . . . . . . . . . . . . . . . . . . . . . . . Alabama, Louisiana, Mississippi, Texas. Wichita . . . . . . . . . . . . . . . . . . . . . . . . Colorado, Kansas, New Mexico, Oklahoma.

Section 4041.—Imposition ofTax

26 CFR 48.4041–3: Application of tax on sales ofspecial motor fuel for use in motor vehicles andmotorboats.(Also sections 4071, 4081, 4091, 4161; 48.4071–1,48.4081–2, 48.4161(a)–1, 48.4161(b)–1.)

Exemption from certain federal ex-cise taxes for consular officers and em-ployees. If consular officers and employ-ees and members of their familiesforming part of their households purchasefrom the manufacturer thereof an articleotherwise subject to a federal excise taxon sales by manuacturers, or purchasefrom a retailer an article otherwise subjectto a federal excise tax on sales by retail-ers, the transaction will not be taxed. Rev.Rul. 73–198 modified and Rev. Rul.68–352 obsoleted.

Rev. Rul. 98–24This revenue ruling modifies Rev. Rul.

73–198, 1973–1 C.B. 425, which dis-cusses exemptions from certain federalexcise taxes extended to foreign diplo-matic, consular, and other officers, andagencies or commissions of foreign gov-ernments.

Rev. Rul. 73–198 provides that if am-bassadors, ministers, other duly accred-ited diplomatic representatives of foreigngovernments, the members of their fami-lies living with them, members of theirhouseholds (but not servants), attaches,secretaries, clerks, and also officers ofmissions to the United Nations and theOrganization of American States servingin a representative capacity and familymembers living with such officers, pur-chase from the manufacturer thereof anarticle otherwise subject to a federal ex-cise tax on sales by manufacturers, or pur-chase from a retailer an article otherwisesubject to a federal excise tax on sales byretailers, the transaction will not be taxed.Rev. Rul. 73–198 does not extend thisbenefit to consular officers and employ-ees of foreign governments and membersof their families forming part of theirhouseholds.

Under section 201(c) of the ForeignMissions Act, 22 U.S.C. § 4301 (1994),the Secretary of State is authorized to de-termine the treatment that should be ac-corded a foreign mission in the United

States based on due consideration of thebenefits, privileges, and immunities pro-vided to missions of the United States inthe country or territory represented by theforeign mission. The Secretary of State,after due consideration of the benefits,privileges, and immunities provided tomissions of the United States under theVienna Convention on Consular Relationsand other governing treaties, has deter-mined that if consular officers and em-ployees (not including honorary consuls)and members of their families formingpart of their households purchase from themanufacturer thereof an article otherwisesubject to a federal excise tax on sales bymanufacturers, or purchase from a retaileran article otherwise subject to a federalexcise tax on sales by retailers, the trans-action will not be taxed.

This benefit does not extend to U.S. na-tionals or permanent residents of theUnited States or to consular officers andemployees (and their family members) ofa consular mission representing a countryor territory that does not provide benefits,privileges, and immunities to missions ofthe United States on a reciprocal basis asdetermined by the Secretary of State.“Consular officer” is defined as any per-son, including the head of a consular post,entrusted in that capacity with the exer-cise of consular functions, and “consularemployee” is defined as any person em-ployed in the administrative or technicalservice of the consular post.

As a result of this revenue ruling, Rev.Rul. 68–352, 1968–2 C.B. 487, is nolonger determinative of the exemptionfrom federal retailers and manufacturersexcise taxes with respect to consular offi-cers and employees (not including hon-orary consuls) of the Government ofFrance and members of their familiesforming part of their households. Ac-cordingly, Rev. Rul. 68–352 is declared obsolete.

EFFECT ON OTHER REVENUERULINGS

Rev. Rul. 73–198 is modified. Rev.Rul. 68–352 is obsoleted.


The principal author of this revenueruling is Susan Athy of the Office of As-

sistant Chief Counsel (Passthroughs andSpecial Industries). For further informa-tion regarding this revenue ruling contactSusan Athy on (202) 622-3130 (not a toll-free call).


26 CFR 48.4071–1: Imposition and rates of tax.

If consular officers or employees purchase di-rectly from the manufacturer thereof an article oth-erwise subject to federal excise tax on sales by man-ufacturers, or purchase from a retailer an articleotherwise subject to federal excise tax on sales byretailers, will the transaction be taxed? See Rev. Rul.98–24, on this page.


26 CFR 48.4081–2: Taxable fuel; tax on removal atthe rack.





26 CFR 48.4161(a)–1: Imposition and rate of tax;fishing equipment.

26 CFR 48.4161(b)–1: Imposition and rates of tax;bows and arrows.


May 11, 1998 6 1998–19 I.R.B.

1998–19 I.R.B. 7 May 11, 1998

Credit for Producing Fuel Froma Nonconventional Source,Section 29 Inflation AdjustmentFactor, and Section 29Reference Price

Notice 98–28This notice publishes the § 29 inflation

adjustment factor, the nonconventionalsource fuel credit, and the §29 referenceprice for calendar year 1997. These areused to determine the credit allowable onfuel produced from a nonconventionalsource under § 29 of the Internal RevenueCode. The calendar year 1997 inflation-adjusted credit applies to the sales of bar-rel-of-oil equivalent of qualified fuelssold by a taxpayer to an unrelated personduring the 1997 calendar year, the domes-tic production of which is attributable tothe taxpayer.

BACKGROUND

Section 29(a) provides for a credit forproducing fuel from a nonconventionalsource, measured in barrel-of-oil equiva-lent of qualified fuels, the production ofwhich is attributable to the taxpayer andsold by the taxpayer to an unrelated per-son during the tax year. The credit isequal to the product of $3.00 and the ap-propriate inflation adjustment factor.

Section 29(b)(1) and (2) provides for aphaseout of the credit. The credit allow-able under § 29(a) must be reduced by anamount which bears the same ratio to theamount of the credit (determined withoutregard to § 29(b)(1)) as the amount bywhich the reference price for the calendaryear in which the sale occurs exceeds$23.50 bears to $6.00. The $3.00 in § 29(a) and the $23.50 and $6.00 musteach be adjusted by multiplying theseamounts by the 1997 inflation adjustmentfactor. In the case of gas from a tight for-mation, the $3.00 amount in § 29(a) mustnot be adjusted.

Section 29(c)(1) defines the term“qualified fuels” to include oil producedfrom shale and tar sands; gas producedfrom geopressurized brine, Devonianshale, coal seams, or a tight formation, orbiomass; and liquid, gaseous, or solidsynthetic fuels produced from coal (in-

cluding lignite), including such fuelswhen used as feedstocks.

Section 29(d)(1) provides that thecredit is to be applied only for sale ofqualified fuels the production of which iswithin the United States (within themeaning of § 638(1)) or a possession ofthe United States (within the meaning of § 638(2)).

Section 29(d)(2)(A) requires that theSecretary, not later than April 1 of eachcalendar year, determine and publish inthe Federal Register the inflation adjust-ment factor and the reference price for thepreceding calendar year.

Section 29(d)(2)(B) defines “inflationadjustment factor” for a calendar year asthe fraction the numerator of which is theGNP implicit price deflator for the calen-dar year and the denominator of which isthe GNP implicit price deflator for calen-dar year 1979. The term “GNP implicitprice deflator” means the first version ofthe implicit price deflator for the gross na-tional product as computed and publishedby the Department of Commerce.

Section 29(d)(2)(C) defines “referenceprice” to mean with respect to a calendaryear the Secretary’s estimate of the annualaverage wellhead price per barrel of alldomestic crude oil the price of which isnot subject to regulation by the UnitedStates.

Section 29(d)(3) provides that in thecase of a property or facility in whichmore than one person has an interest, ex-cept to the extent provided by regulationsprepared by the Secretary, productionfrom the property or facility (as the casemay be) must be allocated among the per-sons in proportion to their respective in-terests in the gross sales from the propertyor facility.

Section 29(d)(5) and (6) provides thatthe term “barrel-of-oil equivalent” withrespect to any fuel generally means thatamount of the fuel which has a Btu con-tent of 5.8 million.

INFLATION ADJUSTMENT FACTORAND REFERENCE PRICE

The inflation adjustment factor for cal-endar year 1997 is 2.0331. The referenceprice for calendar year 1997 is $17.24.As required by § 29(d)(2)(A), the infla-

tion adjustment factor and reference pricefor calendar year 1997 were published inthe Federal Register on April 1, 1998 (63Fed. Reg. 15916).

PHASE-OUT CALCULATION

Because the calendar year 1997 refer-ence price does not exceed $23.50 multi-plied by the inflation adjustment factor,the phaseout of the credit provided for in§ 29(b)(1) does not occur for any quali-fied fuel sold in calendar year 1997.

CREDIT AMOUNT

The nonconventional source fuel creditunder § 29(a) is $6.10 per barrel-of-oilequivalent of qualified fuels ($3.00 32.0331). This amount was published inthe Federal Register on April 1, 1998 (63Fed. Reg. 15916).

DRAFTING INFORMATIONCONTACT

The principal author of this notice isDavid G. McMunn of the Office of Assis-tant Chief Counsel (Passthroughs andSpecial Industries). For further informa-tion regarding this notice contact Mr. Mc-Munn on (202)622-3110 (not a toll-freecall).

26 CFR 601.602: Forms and instructions. (Also Part I, sections 6011, 6041, 6051, 6071, 6081,6091; 1.6041–1, 1.6041–2, 31.6051–1, 31.6051–2,31.6071(a)–1, 31.6081(a)–1.)

Rev. Proc. 98–33PART A. GENERAL

SECTION 1. PURPOSE

.01 The purpose of this revenue proce-dure is to provide the general rules for fil-ing and to state the requirements of the In-ternal Revenue Service (IRS) and theSocial Security Administration (SSA) forreproducing paper substitutes for FormW–2, Wage and Tax Statement, and FormW–3, Transmittal of Wage and Tax State-ments, for amounts paid during the 1998calendar year. The information reportedon Forms W–2 and W–3 is required to es-tablish tax liability for employees andtheir eligibility for Social Security andMedicare benefits.

Part III. Administrative, Procedural, and Miscellaneous

.02 Forms W–2 and W–3 have onlyminor changes for 1998. Please see “Na-ture of Changes” (Section 2, below) andthe exhibits at the end of this revenue pro-cedure for changes to the Form W–2 andW–3.

.03 For the purpose of this revenueprocedure, a substitute form is one that isnot printed by IRS. A substitute FormW–2 or W–3 MUST conform to thespecifications in this revenue procedureto be acceptable to the IRS.Preparersshould also refer to the separate instruc-tions for Forms W–2 and the instructionson Form W–3 for details on how to com-plete these forms. See Part C, Sec. 4.01,for information on obtaining the officialIRS forms and instructions. See Part B,Sec. 2, for requirements for substituteforms furnished to employees.

.04 IRS has a centralized call site at theIRS martinsburg Computing Center(IRS/MCC) to answer questions related toinformation returns (Forms W–2, W–3,1099, etc.). The Call-Site phone number is(304) 263-8700 (not a toll-free number).The number for Telecommunication De-vice for the Deaf (TDD) is (304) 267-3367(not a toll-free number). The hours ofoperation are Monday through Friday from8:30 A.M. to 4:30 P.M. eastern time.

.05 IRS maintains a personal computerbased Information Reporting ProgramBulletin Board System (IRP–BBS) at theIRS Martinsburg Computing Center(IRS/MCC). This system provides accessto the forms and publications relating toinformation returns, news of the latestchanges, the ability to receive answers tospecific questions, access to shareware,and other features. The IRP–BBS isavailable for public use and can bereached by dialing (304) 264-7070 (not atoll-free number). The IRP–BBS iscompatible with most modems. For moreinformation concerning this system, callIRS/MCC at (304) 263-8700 (not a toll-free number).

.06 Employers are reminded that underSection 6722 of the Internal RevenueCode (IRC) they can be assessed apenalty of $50 per Form W–2 that is notfurnished to an employee on a form ac-ceptable to the IRS (up to $100,000). Tobe acceptable to IRS, the Form W–2 mustbe either the “official” form or a substi-tute form with the core data placed ex-actly as specified in Part B., Section 2.04

of this Revenue Procedure. No IRS officeis authorized to allow deviations from thisRevenue Procedure.

.07 This revenue procedure supersedesRev. Procs. 97–24 and 97–24A, 1997–16I.R.B., dated April 21, 1997, and 1997–20I.R.B., dated May 19, 1997 (Reprinted asPublication 1141).

SEC. 2. NATURE OF CHANGES

.01 The text and exhibits were updatedfor tax year 1998.

.02 Box 15 check boxes for House-hold Employee and Subtotal were deletedfrom the Forms W–2. All employers in-cluding household employers must nowfile Form W–3 even for a single submis-sion of Forms W–2 thus eliminating theneed for the check box. Also SSA nolonger needs subtotals to process FormsW–2 allowing the elimination of anothercheckbox.

.03 Added sentence at the bottom ofForm W–2 reminding filers not to sepa-rate forms, not to staple forms, and notto send in photocopies,

.04 Added last item to back of in-structions on copy C to make filersaware that Form W–2 should be re-tained until you start to receive benefitsfrom SSA. Also employees should con-firm their work record with SSA fromtime to time.

.05 Added additional boxes to FormsW–3 just before the signature area forname of contact person, telephonenumber, fax number, and E-Mail ad-dress. This was done at SSA’s requestso that they could more easily contactthe filer to resolve any processing prob-lems.

.06 SSA recommended inserting a noteat the bottom of Forms W–3 and just be-fore the W–3 instructions informing thefiler that the entire first page of the FormsW–3 and the entire first page of the FormsW–2 should be sent to SSA. Filers arealso informed not to send in any paymentswith these forms to SSA.

.07 Deleted the Paper Work ReductionAct Notice from Form W–3 page 1 as aspace saving measure. The notice infor-mation is located inside the Forms W–2instructions.

.08 The Earned Income Credit notifica-tion to employees may now be placed onthe back of copy B or the back of copy C.

See Part B, Section 2.05.5 for new infor-mation.

.09 The tax year (1998)must be printedin non-reflective black ink on copy A ofForm W–2 and Form W–3 using 24 ptOCR-A font. The forms identificationnumbers, e.g., 22222 or 33333, at the topof the forms must be printed in non-re-flective black ink. It is imperative thatSSA’s scanning equipment be able to rec-ognize the form number so that, for exam-ple, a Form W–3 is recognized and is notscanned or keyed as a Form W–2. Theform number (W–3), and the signatureline information on Form W–3, must beprinted in non-reflective black ink. Theword “Form” as well as the form title(s),e.g., Wage and Tax Statement and Trans-mittal of Wage and Tax Statements,should be printed in red OCR drop-outink. Tax Year (1998) Copies B,C, and 2are not required to be 24 pt OCR-Afont (See Part B, Section 2.05.

.10 The Catalog Number, shown on the1998 Form W–2 as “Cat. No. 10134D”,and the Catalog Number shown on the1998 Form W–3 as “Cat No. 10159Y”, isused for IRS distribution purposes andshould not be printed on substitute FormsW–3 or W–2 (Copy A or employee copies).

.11 Added information on how formscan be obtained through computer on-lineservices.

.12 Various editorial changes weremade.

SEC. 3. GENERAL RULES FORFILING FORMS W–2

.01 Employers MUST use magneticmedia for filing with SSA if they prepareand file 250 or more 1998 Forms W–2(Copy A). This requirement applies un-less:

1 The employer can establish that fil-ing on magnetic media will result inundue hardship, AND

2. The employer is granted a waiver ofthe requirement by IRS.

To request a waiver of the magneticmedia filing requirement, for the currenttax year only, submit Form 8508, Requestfor Waiver From Filing Information Re-turns on Magnetic Media,to:

If by Postal Service:

Internal Revenue ServiceMartinsburg Computing Center

May 11, 1998 8 1998–19 I.R.B.

P.O. Box 1359Martinsburg, WV25402-1359

Or, if by truck or air freight:

IRS – Martinsburg Computing CenterMagnetic Media ReportingRoute 9 and Needy RoadMartinsburg, WV 25401.

Forms may also be FAXED to theIRS/MCC at (304) 264-5602.

Form 8508 may be obtained throughelectronic options on the Internet athttp://www.irs.ustreas.gov, or by calling1-800-829-3676. Form 8508 also may beobtained directly from the IRS Martins-burg Computing Center (IRS/MCC) at theabove address or by calling (304) 263-8700 (not a toll-free number). The num-ber for Telecommunication Device for theDeaf (TDD) is (304) 267-3367 (not a toll-free number). It is recommended thatcompleted requests for waivers (Form8508) be submitted at least 45 days beforebut no later than the due date of the return(see Sec. 3.06, below). The requestor willreceive an approval or denial letter fromIRS, but must allow at least 30 days forIRS to respond. If you have any ques-tions concerning Form 8508, contactIRS/MCC at the address or phone numbershown above. Employers who do notcomply with the magnetic media filing re-quirements for Form W–2 and who arenot granted a waiver may be subject tocertain penalties. Since many states andlocal governments accept Form W–2 dataon magnetic media, savings may be ob-tained if magnetic media is used for filingwith both SSA and state or local govern-ments. In many instances, the state orlocal government is willing to accept thedata format specifications set out in SSA’sTechnical Information Bulletin (TIB) No.4, Magnetic Media Reporting. You mustcontact each individual state or local tax-ing agency to receive approval and makearrangements to file on magnetic media.

EMPLOYERS WHO FILE FORMW–2 INFORMATION ON MAGNETICMEDIA WITH SSA MUST NOT SENDTHE SAME DATA TO SSA ON PAPERFORMS W–2. This would result in dupli-cate reporting and may subject the filer toan unnecessary contact by the IRS.

.02 TIB–4, Magnetic Media Reporting,Submitting Annual W–2 Copy A Informa-

tion to the Social Security Administration,(SSA Pub. No. 42–007, revised Oct.,1997) contains the specifications and pro-cedures for filing Form W–2 informationon magnetic media with SSA. Specifica-tions for both tape and diskette reportingfor Forms W–2 are included in the TIB-4.

.03 TIB–4 may be obtained by writingto:

Social Security AdministrationOCO, DESAttn: Employer Reporting ServicesCenter300 North Greene StreetBaltimore, MD 21201.

Employers may call their local SSA Mag-netic Media Coordinator (MMC) to ob-tain the TIB–4 (see list of MagneticMedia Coordinators’ telephone numbersin the Appendix). The TIB–4 is also onthe SSA Annual Wage Reporting BulletinBoard System (AWRBBS). The numberfor the AWRBBS is (410) 965-1133 (not atoll-free number). Employers usingmagnetic media are cautioned to obtainthe most recent revision of the TIB–4 andsupplementsdue to possible changes inthe specifications and procedures.

.04 Employers not using magneticmedia must file a paper Copy A of FormW–2 with SSA on either the IRS printedofficial form or a privately printed substi-tute paper form that exactly meets thespecifications shown in Parts B and C.

.05 Employers can design their ownstatements to give to employees. This ap-plies to both employers who file withSSA either on magnetic media or paperForms W–2, Copy A. Employee state-ments designed by employers mustcom-ply with the requirements shown in PartsB and C, below.NOTE: Copy A must not be filed onpaper with SSA when the same FormW–2 information is filed on magneticmedia. Therefore, magnetic media fil-ers who use the official IRS printedform or any other pre-printed form areadvised not to print Copy A, or to dis-card a printed Copy A, to prevent du-plicate information from being submit-ted to SSA.

.06 If you are terminating your busi-ness, you must provide your employeeswith Forms W–2 on or before the duedate of the business filing its final Form941. Employers must also file Forms

W–2 and W–3 with SSA on or beforethe last day of the month following thedue date of the final Form 941. SeeRev. Proc. 96–57, Automatic Extensionsfor Forms W–2, Internal Revenue Cu-mulative Bulletin 1996–2 page 389,dated 12/30/96, for more information.

Note: Use of a reporting agent orother third-party payroll serviceprovider does not relieve an employerof the responsibility to ensure that taxand information returns are sent outand/or filed correctly and on time.

.07 1998Forms W–2, whether filed onmagnetic media or paper, must be submit-ted to SSA on or before March 1, 1999.In addition, the employee copies must befurnished to the employee on or beforeFebruary 1, 1999. If employment endedbefore December 31, 1998, the employeemay be furnished his/her copy any timeafter employment ends, but no later thanFebruary 1, 1999. However, if the em-ployee requests Form W–2, you must fur-nish him or her the completed copieswithin 30 days of the request or of thefinal wage payment, whichever is later.This requirement is met if the form isproperly addressed, mailed, and post-marked on or before the due date. Failureto timely file with SSA or to timely pro-vide the employee copies may subject theemployer to penalties. Employers need-ing additional time to file Form W–2 in-formation (paper or magnetic media) withSSA may request an extension of time tofile by submitting Form 8809, Request forExtension of Time to File Information Re-turns, to the IRS/MCC at the address (oralternative address) listed in Sec. 3.01,above. The extension request should befiled as early as possible, but must bepostmarked no later than the due date ofthe forms (March 2, 1999). DO NOTSEND FORM 8809 TO SSA.

NOTE: APPROVAL OF THE EXTEN-SION IS NOT AUTOMATIC. Approvalor denial is based on administrative crite-ria and guidelines. The requestor will re-ceive an approval or denial letter fromIRS and must allow at least 30 days forIRS to respond. You do not have to waitfor a response before filing your return.File your return as soon as they are ready.If you have received a response, do notsend a copy of the letter or Form 8809with your return. Form 8809 may be ob-tained through electronic options on the

1998–19 I.R.B. 9 May 11, 1998

Internet at http://www.irs.ustreas.gov; bymodem to IRIS (703) 321-8020; or byusing the IRS Fax Forms Program (703)487-4160, or by calling 1-800-829-3676.You can also contact IRS/MCC (See theaddress and phone number in Sec. 3.01,above).

.08 If requesting extensions of time formore than 10 employers, IRS encouragesfilers to submit the request on tape, tapecartridge, 5 1⁄4 or 3 1⁄2-inch diskette, orelectronically through the InformationReporting Program Bulletin Board Sys-tem (IRP–BBS). Transmitters request-ing an extension of time to file morethan 50 payers are required to file theextension request on magnetic media orelectronically. Transmitters who submitrequests for multiple payers will receiveone approval letter with an attached list ofpayers covered under that approval. Pub-lication 1220, Specifications for FilingForms 1098, 1099, 5498, and W–2GMagnetically or Electronically, providesinformation on how to file requests forextensions of time on tape, tape car-tridge/quarter inch cartridge, diskette, orelectronically.NOTE: To file a request for extensionsof time magnetically or electronicallyfor multiple payers, third party filersand transmitters, must have an IRSTransmitter Control Code (Authoriza-tion to file information returns).

SEC. 4. GENERAL RULES FORFILING FORM W–3

.01 Employers submitting Form W–2(Copy A) on paperto SSA must sendForms W–2 with Form W–3.

.02 Form W–3 must be the same width(7 inches) as the Forms W–2 filed.

.03 Form W–3 should only be used totransmit paper Forms W–2 (Copy A).Magnetic media filers do not file FormW–3. Employers using magnetic mediamust transmit Form W–2 data with Form6559, Transmitter Report and Summaryof Magnetic Media,(and Form 6559-A,Continuation Sheet for Form 6559,if nec-essary). These forms may be obtained bycalling either your SSA MMC (see listingin Appendix) or IRS at 1-800-829-3676.

PART B. REQUIREMENTS FORFILING PAPER SUBSTITUTES

SEC. 1. REQUIREMENTS FORSUBSTITUTE “PRIVATELYPRINTED” FORMS SUBMITTED TOSSA (FORMS W–2, COPY A, ANDFORMS W–3)

.01 Employers may file privatelyprinted substitute Forms W–2 and W–3with SSA. The substitute form must bean exact replica of the IRS printed form(or official reproduction proof) with re-spect to layout and contents because itwill be read by machine. The Govern-ment Printing Office (GPO) symbol mustbe deleted (see Sec. 1.16, below). Thespecifications and allowable tolerancesfor the Copy A of substitute Forms W–2are provided later in this Revenue Proce-dure. See Exhibit A for Form W–2 speci-fications. The specifications for FormsW–3 are provided in Exhibit B.

.02 Paper for substitute Forms W–2,Copy A, and Form W–3 (cut sheets andcontinuous pinfeed forms) that are to befiled with SSA must be white 100%bleached chemical wood, 18–20 poundpaper only, optical character recognition(OCR) bond produced in accordance withthe specifications shown as follows:

Paper Requirements

1 Acidity: pH value, average, not less than . . . . . . . . . . . . . . . 4.5

2 Basis Weight 17 3 22500 cut sheets . . . . . . . . . . . 18–20Metric equivalent gramsper. sq. meter . . . . . . . . . . . . 60–75A tolerance of +5 pct. shallbe allowed.

3 Stiffness: Average, eachdirection, not less thanGurley milligrams —Cross direction . . . . . . . . . . . . . 50Machine direction . . . . . . . . . . . 80

4 Tearing Strength: Average,each direction, not lessthan—Grams . . . . . . . . . . . . . . . 40

5 Opacity: Average, not lessthan—Percent . . . . . . . . . . . . . . 82

6 Reflectivity: Average notless than—percent . . . . . . . . . . . 68

7 Thickness:Average . . . . . . . . . . . inch 0.0038Metric equivalent . . . . . mm 0.097A tolerance of ±0.0005 inch(0.0127mm) shall be allowed.

Paper shall not vary morethan 0.0004 inch (0.012mm)from one edge to the other.

8 Porosity: Average, not lessthan—seconds . . . . . . . . . . . . . . 10

9 Finish (smoothness): Average, each side—econds . . . . . . . . . . . . . . . . . 20–55(For information only, theSheffield equivalent unit . . . . . . . . . . . . . . . . 170–d100

10 Dirt: Average, each side, not to exceed—Parts per million . . . . . . . . . . . . . . . . . 8

NOTE: Reclaimed fiber in any per-centage is permitted, provided the re-quirements of this standard are met. DONOT USE RECYCLED PAPER.

.03 All printing for Copy A of FormsW–2 and Form W–3 will be in red OCRdrop-out ink, except as specified below.

1. The identifying control number‘22222’ (Exhibit C) at the top of FormW–2 must be printed in non-reflectiveblack ink.

2. The Form W–2 tax year at the bot-tom of the form (see Exhibit C) must beprinted in non-reflective black ink.

3. The identifying control number‘33333’ (Exhibit D) at the top of FormW–3 must be printed in non-reflectiveblack ink.

4. The Form W–3 tax year at the bot-tom of the form (Exhibit D) must beprinted in non-reflective black ink.

5. The form identification at the bottom‘W–3’ must be printed in non-reflectiveblack ink (Exhibit D).All other printing will be in red OCRdrop-out ink meeting, or comparable to,the specifications in this paragraph. TheOCR drop-out ink for paper Forms W–2,Copy A, and W–3 is specified as Flint Ink(formerly Sinclair and Valentine) J-6983red ink or equivalent. This is the sameink that is used for Copy A of the Form1099 series. The use of this is requiredfor 1998Forms W–3 and W–2, Copy A.NOTE: Printing in any other red OCRdrop-out ink must be cleared by contact-ing Banc-Tech Corp., Attn: Forms De-signer & Analyst, P.O. Box 660204,MS–77, Dallas, TX 75266 (214-579-6927—This is a voice mail number.Leave a message and your call will be re-turned).

May 11, 1998 10 1998–19 I.R.B.

.04 Type must be substantially identi-cal in size and shape with correspondingtype on the official form. The form iden-tifying number MUST be printed in non-reflective black ink using an OCR-A font;10 characters per inch.

1. On Form W–3 and Copy A of FormsW–2, all the perimeter rules must be 1-point (0.014 inch), while all other rulesmust be one-half point (0.007 inch).

2. Vertical rules must be parallel to theleft edge of the form; horizontal rules par-allel to the top edge.

.05 Two official Forms W–2 (Copy A),or one official Form W–3 are containedon a single page that is 7 inches wide (ex-clusive of any snap-stubs) by 11 inchesdeep. The form identifying control num-ber for the official forms (7 inches wide)is ‘22222’ (5 digits) for Form W–2 and‘33333’ (5 digits) for Form W–3. The topmargin for 1998 Forms W–3 and W–2,Copy A is .375 inch (3/8 inch). The rightmargin must be .15 inch and the left mar-gin .35 inch (plus or minus .0313 inch).The margins are unchanged from 1997.Margins must be free of all printing. Noprinting should appear anywhere near theForm ID control number (33333, 22222).For Forms W–2, Copy A, the combinationwidth of Box a, “Control number”, andthe box containing the form identifyingnumber (22222) must always be 2.0inches. For Form W–3, the combinedwidth of these boxes must always be 2.2inches.

NOTE: All form identifying num-bers are to be printed in non-reflectiveblack ink, using OCR-A font, printed 10characters per inch.

.06 The depth of the individualscannable image on a page must be thesame as that of the IRS printed forms.For Form W–2, the depth is 4.92 inches(see Exhibit A). The scannable imagedepth of the Form W–3 on a page must be4.47 inches (see Exhibit B).

.07 The words “Do Not Cut, Staple, orSeparate Forms on This Page” must beprinted in red OCR drop-out ink betweenthe two Forms W–2 on Copy A only (seeExhibit A). Perforations are required onall copies (except Copy A) to enable theseparation of individual forms. Continu-ous pinfeed Copy A forms must be sepa-rated at the page perforation into individ-ual 11” deep pages before submission toSSA. The pinfeed strips must also be re-

moved. However, the two W–2 docu-ments contained on the 110 deep pagemust notbe separated.

.08 The words “For Privacy Act andPaperwork Reduction Act Notice, seeseparate instructions”, must be printedin red OCR drop-out ink on Forms W–2,Copy A (see Exhibit A for format and lo-cation). The Notice has been removedfrom the Form W–3, and placed insidethe Forms W–2 Instructions. (See Ex-hibit B)

.09 The Office of Management andBudget (OMB) Number mustbe printedon eachply of Form W–2 and W–3 (seeExhibits A and B for format and location).

.10 The section titled “Where to File”in the general instructions on the em-ployer’s copy of the official Form W–3,must beprinted in its entirety on all sub-stitute Forms W–3 (see Exhibit B).Household employers filing Forms W–2for household employees should send theforms to the same address listed in theinstructions.

Note: Household employers, eventhose with only one household em-ployee, must file Form W–3 with FormW–2. On Form W–3 mark the“Hshld.” Box in Box b.

.11 The Privacy Act and PaperworkReduction Act Notice was deleted fromForm W–3 in the interest of space conser-vation (see Exhibit B). The Notice wasplaced inside the Form W–2 instruc-tions.

.12 Privately printed continuous sub-stitute Forms W–2, Copy A, must be per-forated at each 110 page depth. No perfo-rations are allowed between theindividual forms (51⁄2-inch Forms W–2)on a single copy page of Copy A. Contin-uous pinfeed Copy A forms must be sepa-rated at the page perforation prior to sub-mitting them to SSA. Two Copy A formsare contained on one page. The twocopies must remain together on the page.Only the pages are to be separated (burst).Perforations are required between all theother individual copies on a page (Copies1, B, C, 2, and D) included in the set.

.13 The back of a substitute FormW–2, Copy A, and Form W–3 (page 1)must be free of all printing.

.14 Spot carbons are NOT permittedfor Copy A of Forms W–2 or for FormW–3. Interleaved carbon should be blackand must be of good quality to assure leg-

ibility of information on all copies and topreclude smudging.

.15 Chemical transfer paper is permit-ted for Form W–2, Copy A, and Form W–3only if the following standards are met:

1. Only chemically backedpaper is ac-ceptable for Copy A.

2. Carbon coated forms are notpermit-ted. Front and back chemically treatedpaper cannot be processed properly bymachine.

3. Chemically transferred images mustbe black in color.

.16 The GPO symbol must not beplaced on substitute Copy A of FormsW–2.

.17 The Catalog Number, shown on the1998 Form W–2 as “Cat. No. 10134D”,and the Catalog Number shown on the1998 Form W-3 as “Cat. No. 10159Y”, isused for IRS distribution purposes andshould not be printed on substitute forms.

SEC. 2. REQUIREMENTS FORSUBSTITUTE FORMS FURNISHEDTO EMPLOYEES (COPIES B, C,AND 2 OF FORMS W–2)

.01 All employers (including thosewho file on magnetic media and do notfile a paper Copy A) must furnish em-ployees with at least two copies of theForms W–2 (three or more for employeesrequired to file a state, city, or local in-come tax return). The dimensions ofthese copies (Copies B, C, etc.) but notCopy A, may be expanded from the di-mensions of the official form to allowspace for conveying additional informa-tion, such as additional entries requiredfor Boxes 13 or 14, withholding from payfor health insurance, union dues, bonds,charity, etc. The requirement that a maxi-mum of three itemsare permitted in Box13 of Form W–2 applies only to the paperCopy A that is filed with SSA. As long assufficient space is provided on the substi-tute employee copies, as many items asneeded may be placed in Box 13 or Box14. Also, on these copies (Copies B, C,etc.), the size of these boxes may be ad-justed. (However, see the minimum sizefor certain boxes, below). This may per-mit the employer to eliminate other state-ments or notices that would otherwise befurnished to employees.

1. The MAXIMUM allowable dimen-sions for employee copies of Forms W–2are:

1998–19 I.R.B. 11 May 11, 1998

(a) depth should be no more than 6.5inches;

(b) width should be no more than 8.5inches.

2. The MINIMUM allowable dimen-sions for employee copies of Forms W–2are:

(a) 2.67 inches by 5.0 inches.(b) horizontal or vertical format is per-

mitted.NOTE: These minimum and maximumsize specifications are for 1998only andmay change for future years. The maxi-mum width of 8.5 inches is for employeecopies of Form W–2 only. The width ofthe paper Copy A, submitted to SSA, isspecified in Part B, section 1.05 above.

.02 The paper for all copies should bewhite. The substitute Copy B (or itsequal), that employees are instructed toattach to their Federal income tax return,must be at least 12 pound paper (basis 173 22-500), while the other copies fur-nished the employee should be at least 9-pound paper (basis 17 3 22-500).

.03 Interleaved carbon and chemicaltransfer paper for employee copies mustmeet the following standards:

1. All copies must be CLEARLYLEGIBLE;

2. All copies must have the capabil-ity to be photocopied; and

3. Fading must not be of such a de-gree as to preclude legibility and the abil-ity to photocopy.

In general, black chemical transfer inksare preferred; other colors are permittedonly if the above standards are met.“Spot carbons” are NOT permitted (SeePart B, Sec. 1.15, above, for standards forchemical transfer paper for Copy A.)

.04 The following requirements governthe private printing of employee copies ofForms W–2. All substitutes must be aform, which contains boxes, box num-bers, and box titles that, where applicable,match the IRS printed form. Please in-sure that the employee copy of FormsW–2 (Copy C) contains the note “ Thisinformation is being furnished to theInternal Revenue Service. If you arerequired to file a tax return, a negli-gence penalty or other sanction may beimposed on you if this income is taxableand you fail to report it.” The place-ment, numbering, and size of certainboxes (the “core” information) is speci-fied as follows:

1. The items and box numbers thatconstitute the core data are:

Box 1 – Wages, tips, other compensa-tion,

Box 2 – Federal income tax withheld,Box 3 – Social Security Wages/Rail-

road Retirement Compensa-tion,

Box 4 – Social Security tax withheld/Railroad Retirement TaxWithheld,

Box 5 – Medicare wages and tips/Rail-road Retirement Tips, and

Box 6 – Medicare tax withheld/Rail-road Retirement Tax Withheld.

NOTE: Railroad employees may not besubject to Social Security coverage butare subject to Railroad Retirement TaxTier I and II coverage. Railroad Compen-sation employers may make the abovemodifications to Forms W–2 but only forsubstitute Forms W–2 furnished to em-ployees and notfor any Copy A forms tobe filed with SSA.

The “core” boxes must be printed inthe exact order on each line as on the IRSprinted form (see the Exhibits at the endof this revenue procedure). Boxes 1 and 2must be next to each other, with Boxes 3and 4 below on the next line, and Boxes 5and 6 on the line below Boxes 3 and 4.

2. The block of core data (Boxes 1through 6) must be placed in the upperright of the form. Substitute employeecopies of Form W–2, which are printedusing a vertical format with dimensionssmaller than the IRS printed form, mayhave the core data entirely on the top ofthe form (see Exhibit F). In no instancewill boxes or other information be permit-ted to the right of the core data. Standardmargins or a small amount of other blankspace may appear to the top or right ofthis data. The form title, number, or copy(Copy B, C, etc.) may be at the top of theform. Also, a reversed or blocked-outarea to accommodate a postal permitnumber or other postal considerations ispermitted at the upper right of the form.

3. Boxes 1 through 6 must each be aminimum of 1 3/8 inches wide and 1/4inch deep.

4. Other required boxes:– Employer identification number

(EIN),– Employer’s name, address, and ZIP

code,– Employee’s Social Security number,

and

– Employee’s name, address, and ZIPcode.

These items are required to be present onthe form and must be in boxes similar tothose on the IRS printed form. However,they may be placed in any location, otherthan the top or upper right. The letteringsystem used on the IRS printed form (“a”through “f”) need not be used. The em-ployer’s EIN may be included in the boxfor the employer’s name and address. Ifthis is done, a separate box for the EIN isnot required. The Control number box(Box “a” on the IRS printed form) is notrequired.

5. The Tax Year (1998) MUST beclearly printed (in non-reflective blackink) on all copies of substitute FormsW–2. It is recommended (but not re-quired) that this information be located tothe right of the form title on the lower leftof the Form W–2. The use of 24 ptOCR-A font is recommended but notrequired.

6. If applicable, Social Security tipsMUST be shown separately from SocialSecurity wages. A separate box is not re-quired unless Social Security tips are tobe reported.

Boxes 1 and 2 on Copy B are requiredto be outlined in bold 2-point rule (seeExhibit E) or highlighted in some mannerto distinguish these boxes.

7. If a box for Advance EIC (EarnedIncome Credit) payments (Box 9) is pre-sent, the box must be outlined in bold 2-point rule or highlighted in some mannerto distinguish this box. However, if noamounts are paid for Advance EIC, thisbox is not required and may be omitted byprinters. Do not use Box 9 for any otherpurpose than reporting Advance EIC pay-ments.

8. If Allocated tips (Box 8) are beingreported for the individual employee (orclass of employees that are being pro-vided Forms W–2), it is recommended(but not required) that this box also beoutlined in bold 2-point rule or high-lighted on Copy B. However, if allocatedtips are not being reported, this box maybe omitted by printers.

9. If Form W–2 contains additionaldata concerning payroll deductions (e.g.,saving bonds withholding, retirementwithholding, or payroll savings), thereshould be a special highlighting of theareas pertaining to Federal income tax

May 11, 1998 12 1998–19 I.R.B.

withheld; wages, tips, and other compen-sation; or Advance EIC (Earned IncomeCredit) payments that are related to thoseitems.

10. Employers who are required to re-port or withhold state income tax infor-mation are required to include the follow-ing boxes on substitute Forms W–2:

Box 16 - State and Employer’s stateidentification (I.D.) number,

Box 17 – State wages, tips, etc., andBox 18 – State income tax withheld.11. Employers who are required to re-

port or withhold local income tax infor-mation are required to include the follow-ing boxes on substitute Forms W–2:

Box 19 – Locality name Box 20 – Local wages, tips, etc., andBox 21 – Local income tax.12. If state or local tax information is

required, this information is also consid-ered “core data.” The state and local in-formation MUST be placed at the bottomof the form. See the exhibits at the end ofthis revenue procedure.

13. Other boxes on the IRS printedform (Boxes 7 through 15) need not ap-pear on substitute Forms W–2 provided toemployees unlessan employer has thatitem of information to report to an em-ployee. For example, if an employee didnot have Social Security tips (Box 7), Al-located tips (Box 8), or Advance EIC pay-ments (Box 9), the form could be printedwithout these boxes. However, if the em-ployer had provided amounts for depen-dent care benefits, those amounts wouldbe required to be reported separately andshown in a box labeled “Box 10, Depen-dent care benefits,” as on the IRS printedform and the exhibits in this revenue pro-cedure.

14. Employers may provide multipleentries in Box 13, but each entry shoulduse the same codes as assigned by the IRSfor that type of item. (See ReferenceGuide for Box 13 Codes in the 1998 FormW–2 instructions). For example, employ-ers reporting deferred compensation mustlabel the box as “13d” and not as “13a”,even though it is the first or only item togo in this box. Use the codes shown withthe dollar amount. On Copy A, FormW–2, do not enter more than three codesin this box. If more than three items needto be reported in box 13, use a separateForm W–2 to report the additional items(see Multiple Forms in the 1998 Form

W–2 instructions). However, employersmay enter more than three codes in box13 of Copies 1, 2, B, C, and D of FormW–2. Do not report in box 13 any itemsthat are not listed as codes A-T in theForm W–2 instructions. Do not report thesame Federal tax data to the SSA on morethan one Copy A, Form W–2.

15. For codes D,E,F,G,H, and S, if anyelective deferrals, salary reductionamounts, or non-elective contributions toa section 457(b) plan during the year aremake-up amounts under the UniformedService Employment and Reemploy-ment Rights Act of 1994 (USERRA)fora prior year, you must enter prior yearcontributions separately. You must enterthe code, the year, and the amount. Forexample, elective deferrals to a section401(k) plan are reported in box 13 as fol-lows: D–1996–2250.00, D–1997–1250.00. The 1998 contribution does notrequire a year designation, enter it as D7000.00.

16. If you are a military employer andprovide your employee with basic quar-ters, subsistence allowances, and combatzone compensation, report the amount inBox 13, Form W–2, using code Q.

17. Employers contributions to an em-ployees Medical Savings Account’s(MSA), must be reported in Box 13, FormW–2, using code R.

18. An employee elective contributionto a salary reduction SIMPLE retirementaccount must be included in Box 13,Form W–2, using code S. However, if theamount is contributed to a SIMPLE thatpart of section 401(K) arrangement, thatamount must be reported in Box 13, FormW–2, using Code D.

19. Amounts paid or expenses incurredby an employer to or for an employee forqualified adoption expenses must be reported in Box 13, Form W–2, usingcode T.

20. Employers may use Box 14 for anyother information you want to give youremployee. Please label each item. Exam-ples are union dues, health insurance, pre-miums deducted, nontaxable income, vol-untary after-tax contributions, oreducational assistance payments.

21. If you are reporting prior year pay-ments contributions under USERRA (seeitem 15 above), you may report Box 14make-up amounts for non-elective em-ployer contributions, voluntary after-tax

contributions, required employee contri-butions, and employer matching contribu-tions. Report such amounts separately foreach year.

.05 Substitute forms for employees(Copies B, C, and 2 of Forms W–2) mustmeet the following requirements:

1. All copies of Forms W–2 mustclearly show the form number, the formtitle, and the tax year. The title of FormW–2 is “Wage and Tax Statement.” It isrecommended (but not required) that thisbe located on the bottom left of FormW–2. The reference to the Department ofthe Treasury - Internal Revenue Servicemust be on all copies of Form W–2 pro-vided to the employee. It is recom-mended (but not required) that this be lo-cated on the bottom right of Form W–2.

2. If the substitute forms are not la-beledas to the disposition of the copies,then written notification must be providedto each employee as specified below:

(a) The first copy of the form (CopyB) is filed with the employee’s Federaltax return.

(b) The second copy of the form(Copy C) is for the employee’s records.

(c) If applicable, the third copy(Copy 2) of the form is filed with the em-ployee’s state, city, or local income tax re-turn.

3. If the substitute forms are labeled,the forms must contain the applicable de-scription:

“Copy B, to be filed with employee’sFederal tax return,” and “Copy C, for em-ployee’s records.” It is recommended (butnot required) that this be located on thelower left of Form W–2. The designation“Form W–2, is recommended (but not re-quired) to be located on the lower left ofForm W–2 and Department of the Trea-sury - Internal Revenue Service.” It isrecommended (but not required) that thisbe located on the lower right of FormW–2.

4. Instructions similar to those con-tained on the back of Copies B and C ofthe official Form W–2 must be providedto each employee. Employers may mod-ify or delete certain information in theseinstructions (such as modification for em-ployees of railroads to cover Railroad Re-tirement Tier I and II Compensation andTaxes). Employers are allowed to deleteinstructions that do not apply to the em-ployee. For example, if none of the em-

1998–19 I.R.B. 13 May 11, 1998

ployees have dependent care benefits(Box 10), the employer may delete the in-structions for that item. Also, if an em-ployer will only be reporting amounts fora 401(k) plan in Box 13, those instruc-tions may be modified to cover only Sec-tion 401(k) contributions.

5. You must notify employees whohave no income tax withheld that theymay be able to claim a tax refund becauseof the earned income credit (EIC). Youwill meet this notification requirement ifyou issue the IRS Form W–2 with the EICnotice on the back of the employee’s copy(Copy B), or a substitute Form W–2 withthe same statement. You may also meetthe requirement by providing a substituteForm W–2 without the EIC notice andNotice 797, Possible Federal Tax RefundDue to the Earned Income Credit (EIC),or your own statement that contains thesame wording. You also may change thefont on Employee Copy C (back pageonly) so that the EIC notification andW–2 instructions may fit entirely on theback of Copy C. For more informationabout notification requirements, see No-tice 1015(formerly Pub. 1325), Employ-ers-Have You Told Your EmployeesAbout the Earned Income Credit (EIC).

NOTE: Printers are cautioned that therules set forth here (Part B. Sec. 2) applyto employee copies (Copies B, C, etc.)only. Paper filers who send Copy A ofForm W–2 to SSA mustfollow the re-quirements in Part B. Sec. 3, below forthose paper submissions.

SEC. 3. GENERAL RULES FORFILING “PAPER SUBSTITUTES”FOR FORMS W–2 AND W–3

.01 Paper substitutes that conform to-tally to the specifications contained in thisrevenue procedure may be privatelyprinted without the prior approval of theIRS. Penalties may be assessed for notcomplying with the form specificationsset forth in this publication. SUBSTI-TUTE FORMS THAT DO NOT CON-FORM TOTALLY TO THESE SPECIFI-CATIONS ARE NOT ACCEPTABLE.This applies to both paper substitutes thatare filed with SSA and those that aregiven to employees. Forms should notbe submitted to IRS or SSA for specificapproval. However, if you are uncertainof any specification set forth herein andwant that specification clarified, you may

submit a letter citing the specification inquestion, your interpretation of that speci-fication, and an example of how the formwould appear if produced using your un-derstanding of the specification. Anyquestions pertaining to Copies B, C, and 2of Forms W–2 should be sent to:

Internal Revenue ServiceATTN: Substitute Form W–2

CoordinatorT:C:A:C:I,Room C7-4435000 Ellin Rd.Lanhan, MD.20706

Any questions pertaining to Copy A,Form W–2, and Form W–3 should be for-warded to:

Social Security AdministrationData Operations Center1150 E. Mountain DriveAttn: Program Analyst Office Room

449Wilkes-Barre, PA 18702-7997

NOTE: You should allow at least 30 daysfor the IRS and SSA to respond.

.02 Forms W–2 and W–3 are subject toannual review and possible change. Em-ployers are cautioned against overstock-ing supplies of privately printed substi-tutes.

.03 Copies of the current year IRSprinted Forms W–2 and W–3 and the in-structions for these forms may be ob-tained through electronic options on theInternet at http://www.irs.ustreas.gov, orfrom most IRS offices or by calling 1-800-829-3676. The IRS provides onlycut sheet sets.

.04 Substitute Forms W–2 and W–3transmitted to SSA should generally con-tain only data that is required by the FormW–2, the Form W–2 instructions, and thisrevenue procedure.

.05 Substitute Forms W–2, Copy A,and W–3 are machine imaged andscanned by Social Security, thereforethese forms must meet the same specifica-tions as Forms W–2 and W–3 producedby IRS. The vertical and horizontal spac-ing for all Federal payment and databoxes on Form W–2 must be in compli-ance with the specifications containedherein.

.06 All ballot boxes on Forms W–2,Copy A (Box 15), and W–3 (Box “b”)must be 8-point boxes. NOTE: If a box is marked, more than50% of the applicable ballot box must becovered by an “X”.

.07 Copy A of Form W–2 and FormW–3 must have the form producer’s EINentered to the left of “Department of Trea-sury”.

PART C. ADDITIONALINSTRUCTIONS

SEC. 1. INSTRUCTIONS FORFORMS PRINTERS

.01 Except as provided below, if mag-netic media is not used for filing withSSA, the substitute copies of Forms W–2assembly should be arranged in the sameorder as the IRS printed Forms W–2.Copy A should be first, followed sequen-tially by perforated sets (Copies 1, B, C,2, and D). The substitute form to be filedby the employer with SSA must carry thedesignation “Copy A.”NOTE: Magnetic media filers do notsubmit Copy A of Form W–2 or FormW–3. Form 6559 is the transmittal formagnetic media filed Form W–2 data.

1. It is not a requirement that privatelyprinted substitute forms contain a copy tobe retained by employers (Copy D). How-ever, employers must be prepared to ver-ify or duplicate this information if it is re-quested by the IRS or SSA. Paper filersthat do not keep Copy D should be able togenerate a facsimile of Copy A in case ofloss.

2. Except as provided in the arrange-ment of the official assemblies, additionalcopies that may be prepared by employersshall not be placed ahead of the copy “ForEMPLOYEE’S RECORDS,” Form W–2(Copy C).

3. Instructions similar to those con-tained on the back of Copies B and Cofthe official form MUST be provided toeach employee. These instructions maybe printed on the back of the substituteCopy B and C or may be provided to em-ployees on a separate statement. Do notprint these instructions on the back ofcopies 1 or 2 that is to be filed with theemployee’s state or local returns.

.02 All privately printed Forms W–3and Forms W–2 (Copy A), must have thetax year, form number, and form titleprinted on the bottom face of each formusing identical type to that of the officialformat. The tax year must be printed innon-reflective black ink using 24 ptOCRA-font (copy A), of Forms W–2,and Forms W–3. The form title, e.g.,

May 11, 1998 14 1998–19 I.R.B.

Wage and Tax Statement must beprinted in red OCR drop-out ink onForm W–2, Copy A, and Form W–3.The form identifying control number ofForms W–2 and Form W–3, must beprinted in non-reflective black ink,using OCRA-font, printed 10 charac-ters per inch. The word “Form” on theW–2 and W–3 must be printed in redOCR drop-out ink.

.03 The substitute Form W–2, Copy B,which employees attach to their Federalincome tax return, must be at least 12-pound paper (basis 17 3 22–500) whilethe other copies furnished to employee’sshould be at least 9-pound paper (basis 173 22–500).

.04 Employee copies of Forms W–2(Copies B, C, etc.), including those thatare printed on a single sheet of paper,MUST be produced so as to be easily sep-arated by the employee. Perforations be-tween the individual copies that areprinted on a single sheet of paper satisfythis requirement.

.05 The Form W–2, Copy A, and theOCR bond Form W–3 that are filed withSSA must have no printing on the reverseside.

.06 Instructions similar to those pro-vided as part of the official form must beprovided as part of any substitute FormW–3.

.07 The copy of the substitute FormW–3 that contains the instructions and isto be retained by the employer should beat least 18-pound paper (basis 17 322–500).

SEC. 2. INSTRUCTIONS FOREMPLOYERS

.01 Only originals or ribbon copies ofCopy A (Forms W–2) and Form W–3 maybe filed with SSA. Carbon copies andphotocopies are not acceptable.

.02 Employers should type or machineprint entries on forms whenever possibleand provide good quality data entries byusing a high quality type face, insertingdata in the middle of blocks that are wellseparated from other printing and guide-lines, and taking any other measures thatwill guarantee clear, sharp images. Theprint character size must be no more than12 characters per inch.Omit dollar signsbut include decimal points for all centsamounts. The employer must provide amachine scannable form for Copy A. The

employer must refrain from printing anydata in the top margin of the forms. Theemployer must also provide payee copies(Copies B, C, and 2) that are legible andcapable of being photocopied (by the em-ployee).

.03 The Employer Identification Num-ber (EIN) may be entered in the Em-ployer’s name and address box on Copy Aof Forms W–2 (Box “c” on the IRS printedForm W–2). If this is done, the EIN neednot be entered in the box provided for theEIN (Box “b” on the IRS printed FormW–2). The EIN must be entered in Box“e” of the Form W–3. Note: EIN enteredon Form W–3 Box “e” must be the sameEIN entered on Forms W–2 Box “b”,and on Form 941 as well.

.04 The employer’s name, address, andEIN may be preprinted.

.05 The optional employer ’s statenumber may be pre-printed in the em-ployer’s name, address, and ZIP codebox. If this is done, the Employer’s stateI.D. Number section in Box 16 of FormsW–2 need not be completed, as long asthe applicable state taxing authority doesnot object. Please check with the appro-priate state taxing authority beforedoing this.

.06 Generally, an agent that has an ap-proved Form(s) 2678, Employer Appoint-ment of Agent, should enter its name asthe employer in Box c of Form W–2, andfile one Form W–2. However, if the agentis acting as an agent for two or more em-ployers, or is an employer and is acting asan agent for another employer, and payssocial security wages in excess of thewage base to an individual, special report-ing for payments to that individual isneeded. The agent should file separateForms W–2 reflecting the wages paid byeach employer. Box “c” of Form W–2should include name of agent, agent for(name of employer), and address of agent.Each Form W–2 should reflect the EIN ofthe agent in Box “b”. In addition the em-ployer’s EIN should be shown in Box “h”of Form W–3.

.07 The preparation and filing instruc-tions for Forms W–2 are contained in the1998 Instructions for Form W–2. Thepreparation and filing instructions forForm W–3 are contained as part of the1998 Form W–3 snap set assembly.

.08 To avoid confusion and questionsby employees, employers are encouraged

to delete the following items from the em-ployee copies of Forms W–2 that are pro-vided to employees:

1 Form identifying number (e.g.,22222);

2 The word “void” and associated box3 Any other captions or box number

that would not be of any informationaluse to employees (unless otherwise re-quired).

.09 Employers should use the IRS sup-plied label when filing Form W–3 withSSA. The label should be placed insidethe brackets printed in Boxes “e” and “f”.

SEC. 3. OFFICE OF MANAGEMENTAND BUDGET (OMB)REQUIREMENTS FOR SUBSTITUTEFORMS

.01 The Paperwork Reduction Act re-quires: (1) OMB approval of IRS taxforms, (2) that each form (all copies)show the OMB approval number and,when appropriate, the form’s expirationdate, and (3) that the form (or its instruc-tions) state why IRS is collecting the in-formation, how we will use it and whetherit must be given to us. The official IRSform (or instructions) will contain this in-formation.

.02 As it applies to substitute IRSforms, this means:

1. All substitute forms (all copies)mustshow the OMB number as it appearson the official IRS printed form (see Ex-hibits A and B).

2. The OMB number must be in one ofthe following formats:

OMB No. 1545-0008 (preferred),or

OMB # 1545-00083. You must inform the users of your

substitute forms of the reasons for IRScollection, use, and requirements, asstated in the instructions for the officialIRS form.

Sec. 4. FORMS and PUBLICATIONS

.01 Electronic access to IRS tax forms,instructions, publications, and other taxdata is available through the following:

Modem: IRIS at FedWorld (703)321-8020Technical questions regarding Fed-

World can be directed to the FedWorldhelp desk 24 hours a day at (703) 487-4608.

1998–19 I.R.B. 15 May 11, 1998

Internet: Telnet - iris.irs.ustreas.govFTP - ttp.irs.ustreas.govWWW - http://www.irs.ustreas.govFax Forms: (703) 487-4160

.02 Over 100 of the most requestedforms and instructions may be obtainedvia your fax machine. Just call (703) 487-4160 from the telephone connected toyour fax machine.

.03 A CD-ROM containing over 2,000tax forms, instructions, and publicationsmay be purchased from the Government

Printing Office (GPO), Superintendent ofDocuments (Supt. Docs.). Current taxyear materials, and tax forms from 1991and publications from 1994, are includedon the disc. To order the CD-ROM, con-tact Supt. Docs. At (202) 512-1800 (selectOption #1), or by computer throughGPO’s Internet Web Site (http;//www.access.gpo.gov/su docs).

.04 List of Social Security Administra-tions Magnetic Media Coordinators is in-cluded in the Appendix.

Sec. 5 EFFECT ON OTHER REVENUEPROCEDURES

.01 Rev. Procs. 97–24 and 97–24A,I.R.B. 1997–16, dated April 21, 1997, andI.R.B. 1997–20, dated May 19, 1997,(Reprinted as Publication 1141, Revised4–97), is superseded.

May 11, 1998 16 1998–19 I.R.B.

1998–19 I.R.B. 17 May 11, 1998

May 11, 1998 18 1998–19 I.R.B.

1998–19 I.R.B. 19 May 11, 1998

May 11, 1998 20 1998–19 I.R.B.

1998–19 I.R.B. 21 May 11, 1998

May 11, 1998 22 1998–19 I.R.B.

1998–19 I.R.B. 23 May 11, 1998

May 11, 1998 24 1998–19 I.R.B.

Foundations Status of CertainOrganizations

Announcement 98–37The following organizations have

failed to establish or have been unable tomaintain their status as public charities oras operating foundations. Accordingly,grantors and contributors may not, afterthis date, rely on previous rulings or des-ignations in the Cumulative List of Orga-nizations (Publication 78), or on the pre-sumption arising from the filing of noticesunder section 508(b) of the Code. Thislisting does not indicate that the organiza-tions have lost their status as organiza-tions described in section 501(c)(3), eligi-ble to receive deductible contributions.

Former Public Charities.The followingorganizations (which have been treated asorganizations that are not private founda-tions described in section 509(a) of theCode) are now classified as private foun-dations:Hospice of the Heart Inc., Whitney, TXHot Rod Hundley Foundation, Salt Lake

City, UTHot Springs Documentary Film Festival,

Hot Springs, ARHugs Inc., Paulsboro, NJHuman Touch, Kansas City, MOHumane Society of Van Buren County,

Spencer, TNHumanitarian Aid for Ethiopia,

Washington, DCHumanities Corporation, Phoenix, AZHundred Club of Alvin, Alvin, TXHundred Club of Greater Charleston Inc.,

Charleston, SCHungarian Baptist Union of Romania

Incorporated, Dallas, TXHunterdon County Housing Corporation,

W. Orange, NJHuntsville Firefighters Retirees

Association Inc., Huntsville, ALHurricane Andrew Relief Association of

IRS Employees, Plantation, FLHurricane Proof and Flood Resistant

Housing Foundation, Houston, TXHutchinson Archives Inc., Hutchinson,

KSHyde County Childrens Center Inc.,

Engelhard, NCHydrocephalus Association of

Philadelphia, Philadelphia, PA

Hytowl Inc., Chicago, ILJireh Development Corporation,

Cincinnati, OHJoe Wibel III Memorial Scholarship

Fund, Crossville, TNJoedy P. Hendrix Jr. Ministries Inc.,

Checotah, OKJoeys Shelter Inc., Atlanta, GAJohn & Lisa Mcdaniel Ministries Inc.,

Memphis, TNJohn Christian Charity Trust Inc.,

Pittsburgh, PAJohnson County Fire Training

Association Inc., Cleburne, TXJohnson Volunteer Fire Department,

Ellisville, MSJr Pantherettes, Newark, OHJust Because Inc., Arvada, COJust for the Kids of N P C Inc., Danville,

INJustice Building Inc., Corpus Christi, TXJuvenile Officers Association of

Michigan & Ontario, Detroit, MIJuvenile Awareness in Law Enforcement

and Life Inc., Lithonia, GAKent County Central Committee, Grand

Rapids, MIKentucky Baptist Disaster Relief

Southeastern Region, Barbourville,KY

Kentucky Center To Prevent GunViolence, Prospect, KY

Kentucky Educational Fund for HandicapChildren Inc., Frankfort, KY

Kentucky High School Junior All StarsInc., Madisonville, KY

Kentucky Homeless Shelter Inc., Detroit,MI

Kentucky Recycling Association Inc.,Independence, KY

Kentucky Refugee Ministries Inc.,Louisville, KY

Kentucky Society of Healthcare Planningand Marketing Inc., Louisville, KY

Kerr County Sheriffs Reserve, Kerrville,TX

Kids for Education, Dearborn Heights,MI

Kids Like Me of Johnson County,Shawnee Mission, KS

Kids Network Inc., Superior, WIKids Unlimited, Tucson, AZKings Ambassadors Inc., Argyle, TXKings Kids Day Care Inc., Gardner, KSKingston Township Raiders Junior

Football Inc., Shavertown, PA

Kingston Youth League, Chillicothe, OHKiwanis Club of Longmont Foundation,

Longmont, COKiwanis Club of Sarasota Sunrise

Foundation Inc., Sarasota, FLKiwanis Park Inc., Irvine, KYKnightlife Inc., Memphis, TNKnights of Christ Inc., Clarksville, INKnoxville Concert Band, Knoxville, TNKnoxville Fall Baseball League,

Knoxville, TNKoala Lebanon Alumni Association Inc.,

Lebanon, INKoinonia Agape Ministries Inc., Orlando,

FLKoinonia House of Jackson County,

Jackson, MIKokopelli Notes, Asheville, NCKorean American Citizens Coalition,

Chicago, ILKorner Klub Inc., Hillsboro, WIKPCH Inc., Winston Salem, NCKrewe of Christmas Inc., New Orleans,

LALife Choice Mission Inc., Cocoa Beach,

FLLife Conservation Inc., Atlanta, GALife Cycle of Indiana Inc., Indianapolis,

INLife Education Network of Florida Inc.,

Maitland, FLLife Giver Inc. of Hampton Roads,

Virginia Beach, VALife Line Ministries Inc., Lafayette, LALife Rescue Mission, Norristown, PALife Styles Inc., Hoisington, KSLife Transition Therapy Institute, Santa

Fe, NMLifeline Ministries, Marshall, MNLight Club No. 2 Inc., Jacksonville, TXLighthouse Childrens Home and

Ministries Inc., Fort Valley, GALil Pardners Child Care and Learning

Center Inc., Terrell, TXLima Area Parkinson Support Group Inc.,

Lima, OHLincoln County Band Boosters of the

Lincoln County Bands, Stanford, KYLiving Alternatives Inc., Tyler, TXLiving Alternatives of Jacksonville Inc.,

Jacksonville, TXLiving Faith Group A Member Group of

Alcoholics Anonymous, Austin, TXLiving Sanctuary of Faith, Broadview, ILLloyd E Collins Scholarship Fund,

Danbury, NC

Part IV. Items of General Interest

1998–19 I.R.B. 25 May 11, 1998

Lo-Tech Research & Development Inc.,St. Petersburg, FL

Los Barrios Unidos Health Foundation,Dallas, TX

Los-Islenos Heritage & Cultural Society,Violet, LA

Los Ninos Inc., Albuquerque, NMLosers Inc., Kennesaw, GALost Pines Industries, Cedar Creek, TXLotus Production Company Inc., Kansas

City, MOLouisiana Cancer Coalition, Baton

Rouge, LALouisiana Feed-a-Meal Inc., Ruston, LALouisiana Oilmans Charity Invitational

Inc., New Orleans, LALove for Children of Clark County,

Jeffersonville, INLove Inc. of Bradley County Tennessee,

Cleveland, TNLove the People Inc., Bozeman, MTLove To Serve Incorporated, Chicago, ILLoveland Police Dept. Racing Team,

Loveland, COLow Income Housing Foundation of New

Mexico Inc., Albuquerque, NMLower 9th Ward Coalition Inc., New

Orleans, LALower Woodville Youth Development

Club, Natchez, MSLRGS Educational Foundation Inc.,

Baker, WVLt. Ben Benjamin O. Davis Jr. Chapter

Tuskegee Airmen, Box Elder, SDLuis H. Garcia Memorial Scholarship

Fund Inc., Trenton, NJLuther Heights Inc., Bettendorf, IALutheran Bears Football Association Inc.,

Saginaw, MILutheran Social Services of the Greater

Charleston Area, N. Charleston, SCLuthern Family Services of Tennessee,

Knoxville, TNLycoming Animal Protection Society

Inc., Montoursville, PALydia Rose Hummel-Dosmann

Educational Foundation Inc.,Milwaukee, WI

Lyman Adult Foster Care, Detroit, MILyme Disease Institute Inc., Cape

Girardeau, MOMichael E. Griffith Memorial

Foundation, Inc., Copperas Cove, TXMichigan Black Shell Service Station

Dealers, Detroit, MIMichigan Chiropractic Foundation, East

Lansing, MI

Michigan Environmental Trust Ltd,Bloomfield Hills, MI

Michigan Theatre Center Inc., Detroit,MI

Mid-Del Food Pantry Inc., Midwest City,OK

Mississippi Junior Chamber of SourceFoundation, Inc., Meridian, MS

Mississippi Writers Association Inc.,Jackson, MS

Missoula on Ice Inc., Missoula, MTMissouri Valley Historical Society,

Bismarck, NDMissouri Valley Tennis E&R Foundation,

Kansas City, MOMNI SOSE Water Rights Coalition,

Rapid City, SDMobile Beauty-N-Massage Inc., Dallas,

TXMobile City Relief, Memphis, TNMohave Literacy Council Incorporated,

Fort Mohave, AZMoms Day Care Center, St. Thomas, VIMontgomery Dancers Unlimited, Mt.

Carbon, WVMontrose Community Foundation,

Montrose, MIMonumental Rifle & Pistol Club-Junior

Division Incorporated, Clarksville, MDMoon Hut, Boulder, COMount Pocono Sports Complex Fund

Committee, Inc., Mt. Pocono, PAMountain State Art and Craft Fair

Scholarship and Grant Fund, Kenna,WV

Mount Sneffels Education Foundation,Ridgway, CO

Mount Zion Fellowship Inc., New Bern,NC

Mountain Meadow Ranch Bible Camp,Phoenix, AZ

Mt. St. Alban Independent ScholasticNewspaper, Inc., Washington, DC

Mt. Vernon Optimist Youth Baseball-Softball, Inc., Mt. Vernon, IL

Multi-Cultural Initiatives Alliance, St.Paul, MN

Muslimat Al Nissa Jamiyatt Inc., Atlanta,GA

Mustard Seed Ministries Inc.,Springfield, IL

My Brothers Keeper Ministry KeepersInn, Youngstown, OH

My Friends House Inc., College Park,GA

My Life Development Corps, Decatur,GA

Neighborhood Senior Center Inc., NewOrleans, LA

Neighborhood Visions Inc., Kansas City,KS

Neolaia of Pasco Inc., Holiday, FLNew Hanover Adolescent Health

Council, Incorporated, Wilmington,NC

New Hope Baptist Ministries of SummitCounty-Akron, OH, Akron, OH

New Hope Boys Ranch Inc., Overton, TXNew Hope for Tomorrow Foundation,

Columbus, OHNew Hope Housing Ministries Inc.,

Hudsonville, MINew Horizons Community Services Inc.,

Prescott Valley, AZNew Life Programs Inc., Dawsonville,

GANew Mexico Clogging Association,

Albuquerque, NMNew Mexico Elite Volleyball Club,

Albuquerque, NMNew Mexico National Guard Historical

Foundation, Inc., Santa Fe, NMNew Mexico Open Land Trust, Santa Fe,

NMNew Mexico State D A R E Board, Santa

Fe, NMNew Orleans Technology Council

Corporation, New Orleans, LANew World Foundation Inc., Miami, FLO. J. Esquivel Foundation, Kingsville,

TXOak Cliff Christian Housing Inc., Dallas,

TXOak Grove Missions to Russia,

Poplarville, MSOconto Falls Area School Age Child Care

Inc., Oconto Falls, WIOconto Falls Partners in Education Inc.,

Oconto Falls, WIOdessa Pony League, Odessa, MOOfallon Community Center Inc., Ofallon,

ILOffice of Black and Minority Health for

the State of Wisconsin, Glendale, WIOhio Entrepreneurship Association,

Reynoldsburg, OHOhio Eta Foundation of Sigma Phi

Epsilon, Cincinnati, OHOhio Leadership Institute Inc., Ironton,

OHOhio Psychiatric Nurses Network,

Cleveland, OHOhio Schools Development Corporation,

Columbus, OH

May 11, 1998 26 1998–19 I.R.B.

Ohio Valley Harvest Inc., Wheeling, WV

Oki Wildlife Cooperative, Pleasant Plain,OH

Oklahoma Association of ResourceConservation & DevelopmentCouncils, Burns Flat, OK

Oklahoma Association of Scholars,Oklahoma City, OK

Oklahoma Special Rescue Team Inc.,Duncan, OK

Oklahoma Tamil Sangam, OklahomaCity, OK

Oklahoma Toxics Campaign Fund Inc.,Oklahoma City, OK

Okmulgee Art Guild Inc., Okmulgee, OKOlathe Sister Cities Association Inc.,

Olathe, KSOld Camp Meeting Ministries, Arlington,

TXOld East Dallas Renaissance Project,

Dallas, TXOld Fourth Ward Redevelopment Inc.,

Atlanta, GAOld Mill Hill Society Inc., Trenton, NJOld Neighborhood Rehab Inc.,

Springfield, ILOld Rockport Inc., Rockport, INOldham County Heritage Farm and

Branch Museum of Vega Texas Inc.,Vega, TX

Olive Gardens Development CorporationInc., Brinly, AR

Omaha South High School AlumniAssociation, Omaha, NE

Omega Kappa Kappa GammaEducational Foundation, Leawood, KS

One Love Inc., Savannah, GAOne Veterans Crusade for Christ Inc.,

Green Cove Springs, FLOne World Now Inc., Houston, TXOnslow Arts & Crafts Association,

Jacksonville, NCOpen Air Recovery Productions Inc.,

Seminole, FLOpen Door Health Clinic Inc., Frankfort,

INOpen Door Theater Inc., Ft. Wayne, INOpera Piccola, Arlington, VAOperation Education Incorporated,

Plainsboro, NJOperation Fresh Start, Columbus, OHOperation Luz de Sol Incorporated,

Washington, DCOperation Orphan Wildlife

Rehabilitation, Akron, OHOperation Playground, Crystal Lake, ILOperation Reach Out, Detroit, MI

Orange County Radio AmateursIncorporated, Chapel Hill, NC

Orchard Manor Resident ManagementCorporation, Charleston, WV

Organico Institute Corporation, Ashland,WI

Orion Institute, Salt Lake City, UTOrlando Wheelchair Games Inc.,

Orlando, FLOrthopaedic Research Foundation Inc.,

Fayetteville, AROsage Community Day School Inc.,

Aurora, COOsceola County Intergroup of Alcoholics

Anonymous, St. Cloud, FLOsprey Baseball Alumni Club, Savannah,

GAOthers Inc., Atlanta, GAOttawa Kiwanis Retirement Community

Inc., Ottawa, OHOur Children in the Courts Foundation,

Chicago, ILOur Daily Bread of Bradenton Inc.,

Bradenton, FLOur Industries, San Marcos, TXOur Jobs Our Children Our Future Inc.,

Huntington, WVOur Little Angels Inc., Lebanon, INOutreach Community Services Inc., Lake

Providence, LAOutreach Ministries Inc., Green Forest,

AROwen County Art Guild Inc., Spencer,

INOwensboro Metropolitan Parks

Foundation Inc., Owensboro, KYOwl Feather War Bonnet Womens

Resource Center, St. Francis, SDOzark Alternative Crop Education

Training and Promotion AssociationInc., Searcy, AR

Ozarks 285 Amateur Radio Club,Clarksville, ARIf an organization listed above submits

information that warrants the renewal of itsclassification as a public charity or as a pri-vate operating foundation, the InternalRevenue Service will issue a ruling or de-termination letter with the revised classifi-cation as to foundation status. Grantors andcontributors may thereafter rely upon suchruling or determination letter as providedin section 1.509(a)–7 of the Income TaxRegulations. It is not the practice of theService to announce such revised classifi-cation of foundation status in the InternalRevenue Bulletin.

Loans to Plan Participants;Correction

Announcement 98–38

AGENCY: Internal Revenue Service,Treasury.

ACTION: Correction to a notice of pro-posed rulemaking.

SUMMARY: This announcement con-tains corrections to the notice of proposedrulemaking (REG–209476–82 [1998–8I.R.B. 36]), which was published in theFederal RegisterFriday, January 2, 1998(63 F.R. 42), relating to loans made froma qualified employer plan to plan partici-pants or beneficiaries.

FOR FURTHER INFORMATION CON-TACT: Vernon Carter (202) 622-6070(not a toll-free number).

SUPPLEMENTARY INFORMATION:

Background

The notice of proposed rulemaking thatis the subject of these corrections is undersections 72(p) of the Internal RevenueCode.

Need for Correction

As published, REG–209476–82 con-tains errors which may prove to be mis-leading and are in need of clarification.

Correction of Publication

Accordingly, the publication of the no-tice of proposed rulemaking (REG–209476–82), which was the subject of F.R.Doc. 97–33983, is corrected as follows:

1. On page 43, column 2, in the pream-ble under the paragraph heading “Expla-nation of Provisions”, the first full para-graph in the column, line 18, the language“However, a special rule applies if a plan”is corrected to read “In addition, a specialrule applies if a plan”.

2. On page 43, column 2, in the pream-ble under the paragraph heading “Expla-nation of Provisions”, the first full para-graph in the column, line 26, the language“increase in basis thereafter is less than”is corrected to read “increase in basisthereafter (e.g., from after-tax contribu-tion) is less than”.

Cynthia E. Grigsby,Chief, Regulations Unit,

Assistant Chief Counsel (Corporate).

1998–19 I.R.B. 27 May 11, 1998

Revenue rulings and revenue procedures(hereinafter referred to as “rulings”) thathave an effect on previous rulings use thefollowing defined terms to describe theeffect:

Amplified describes a situation whereno change is being made in a prior pub-lished position, but the prior position isbeing extended to apply to a variation ofthe fact situation set forth therein. Thus,if an earlier ruling held that a principleapplied to A, and the new ruling holdsthat the same principle also applies to B,the earlier ruling is amplified. (Comparewith modified, below).

Clarified is used in those instanceswhere the language in a prior ruling isbeing made clear because the languagehas caused, or may cause, some confu-sion. It is not used where a position in aprior ruling is being changed.

Distinguisheddescribes a situationwhere a ruling mentions a previouslypublished ruling and points out an essen-tial difference between them.

Modified is used where the substanceof a previously published position isbeing changed. Thus, if a prior rulingheld that a principle applied to A but notto B, and the new ruling holds that it ap-

plies to both A and B, the prior ruling ismodified because it corrects a publishedposition. (Compare with amplified andclarified, above).

Obsoleted describes a previously pub-lished ruling that is not considered deter-minative with respect to future transac-tions. This term is most commonly usedin a ruling that lists previously publishedrulings that are obsoleted because ofchanges in law or regulations. A rulingmay also be obsoleted because the sub-stance has been included in regulationssubsequently adopted.

Revoked describes situations where theposition in the previously published rul-ing is not correct and the correct positionis being stated in the new ruling.

Superseded describes a situation wherethe new ruling does nothing more thanrestate the substance and situation of apreviously published ruling (or rulings).Thus, the term is used to republish underthe 1986 Code and regulations the sameposition published under the 1939 Codeand regulations. The term is also usedwhen it is desired to republish in a singleruling a series of situations, names, etc.,that were previously published over a pe-riod of time in separate rulings. If the

new ruling does more than restate thesubstance of a prior ruling, a combinationof terms is used. For example, modifiedand superseded describes a situationwhere the substance of a previously pub-lished ruling is being changed in part andis continued without change in part and itis desired to restate the valid portion ofthe previously published ruling in a newruling that is self contained. In this casethe previously published ruling is firstmodified and then, as modified, is super-seded.

Supplemented is used in situations inwhich a list, such as a list of the names ofcountries, is published in a ruling andthat list is expanded by adding furthernames in subsequent rulings. After theoriginal ruling has been supplementedseveral times, a new ruling may be pub-lished that includes the list in the originalruling and the additions, and supersedesall prior rulings in the series.

Suspended is used in rare situations toshow that the previous published rulingswill not be applied pending some futureaction such as the issuance of new oramended regulations, the outcome ofcases in litigation, or the outcome of aService study.

AbbreviationsThe following abbreviations in current use and for-merly used will appear in material published in theBulletin.

A—Individual.

Acq.—Acquiescence.

B—Individual.

BE—Beneficiary.

BK—Bank.

B.T.A.—Board of Tax Appeals.

C.—Individual.

C.B.—Cumulative Bulletin.

CFR—Code of Federal Regulations.

CI—City.

COOP—Cooperative.

Ct.D.—Court Decision.

CY—County.

D—Decedent.

DC—Dummy Corporation.

DE—Donee.

Del. Order—Delegation Order.

DISC—Domestic International Sales Corporation.

DR—Donor.

E—Estate.

EE—Employee.

E.O.—Executive Order.

ER—Employer.

ERISA—Employee Retirement Income Security Act.

EX—Executor.

F—Fiduciary.

FC—Foreign Country.

FICA—Federal Insurance Contribution Act.

FISC—Foreign International Sales Company.

FPH—Foreign Personal Holding Company.

F.R.—Federal Register.

FUTA—Federal Unemployment Tax Act.

FX—Foreign Corporation.

G.C.M.—Chief Counsel’s Memorandum.

GE—Grantee.

GP—General Partner.

GR—Grantor.

IC—Insurance Company.

I.R.B.—Internal Revenue Bulletin.

LE—Lessee.

LP—Limited Partner.

LR—Lessor.

M—Minor.

Nonacq.—Nonacquiescence.

O—Organization.

P—Parent Corporation.

PHC—Personal Holding Company.

PO—Possession of the U.S.

PR—Partner.

PRS—Partnership.

PTE—Prohibited Transaction Exemption.

Pub. L.—Public Law.

REIT—Real Estate Investment Trust.

Rev. Proc.—Revenue Procedure.

Rev. Rul.—Revenue Ruling.

S—Subsidiary.

S.P.R.—Statements of Procedral Rules.

Stat.—Statutes at Large.

T—Target Corporation.

T.C.—Tax Court.

T.D.—Treasury Decision.

TFE—Transferee.

TFR—Transferor.

T.I.R.—Technical Information Release.

TP—Taxpayer.

TR—Trust.

TT—Trustee.

U.S.C.—United States Code.

X—Corporation.

Y—Corporation.

Z—Corporation.

Definition of Terms

May 11, 1998 28 1998–19 I.R.B.

1 A cumulative list of all revenue rulings, revenueprocedures, Treasury decisions, etc., published inInternal Revenue Bulletins 1997–27 through1997–52 will be found in Internal Revenue Bulletin1998–1, dated January 5, 1998.

Numerical Finding List1Bulletins 1998–1 through 1998–18

Announcements:

98–1, 1998–2 I.R.B. 3898–2, 1998–2 I.R.B.3898–3, 1998–2 I.R.B.3898–4, 1998–4 I.R.B.3198–5, 1998–5 I.R.B. 2598–6, 1998–5 I.R.B. 2598–7, 1998–5 I.R.B. 2698–8, 1998–6 I.R.B. 9698–9, 1998–7 I.R.B. 3598–10, 1998–7 I.R.B. 3598–11, 1998–8 I.R.B. 4298–12, 1998–8 I.R.B. 4398–13, 1998–8 I.R.B. 4398–14, 1998–8 I.R.B. 4498–15, 1998–10 I.R.B.3698–16, 1998–9 I.R.B. 1798–17, 1998–9 I.R.B. 1698–18, 1998–10 I.R.B.4498–19, 1998–10 I.R.B.4498–20, 1998–11 I.R.B. 2598–21, 1998–11 I.R.B. 2698–22, 1998–12 I.R.B. 3398–23, 1998–12 I.R.B. 3498–24, 1998–12 I.R.B. 3598–25, 1998–13 I.R.B.4398–26, 1998–14 I.R.B. 2898–27, 1998–15 I.R.B. 3098–28, 1998–15 I.R.B. 3098–29, 1998–16 I.R.B. 4898–30, 1998–17 I.R.B. 3898–32, 1998–17 I.R.B. 3998–33, 1998–17 I.R.B. 3998–34, 1998–17 I.R.B. 3998–35, 1998–17 I.R.B. 4098–36, 1998–18 I.R.B. 18

Notices:

98–1, 1998–3 I.R.B. 4298–2, 1998–2 I.R.B. 2298–3, 1998–3 I.R.B. 4898–4, 1998–2 I.R.B. 2598–5, 1998–3 I.B.R.4998–6, 1998–3 I.R.B. 5298–7, 1998–3 I.R.B. 5498–8, 1998–4 I.R.B. 698–9, 1998–4 I.R.B. 898–10, 1998–6 I.R.B.998–11, 1998–6 I.R.B. 1898–12, 1998–5 I.R.B.1298–13, 1998–6 I.R.B.1998–14, 1998–8 I.R.B. 2798–15, 1998–9 I.R.B. 898–16, 1998–15 I.R.B. 1298–17, 1998–11 I.R.B. 698–18, 1998–12 I.R.B. 1198–19, 1998–13 I.R.B.2498–20, 1998–13 I.R.B.2598–21, 1998–15 I.R.B. 1498–22, 1998–17 I.R.B. 598–23, 1998–18 I.R.B. 998–24, 1998–17 I.R.B. 598–25, 1998–18 I.R.B. 1198–26, 1998–18 I.R.B. 1498–27, 1998–18 I.R.B. 14

Proposed Regulations:

PS–158–86, 1998–11 I.R.B. 13REG–100841–97, 1998–8 I.R.B. 30REG–102144–98, 1998–15 I.R.B.25REG–102894–97, 1998–3 I.R.B. 59REG–104062–97, 1998–10 I.R.B. 34REG–104537–97, 1998–16 I.R.B. 21REG–104691–97, 1998–11 I.R.B. 13REG–105163–97, 1998–8 I.R.B. 31REG–109333–97, 1998–9 I.R.B. 9REG–109704–97, 1998–3 I.R.B. 60REG–110965–97, 1998–13 I.R.B. 42REG–115795–97, 1998–8 I.R.B.33REG–119449–97, 1998–10 I.R.B. 35REG–120200–97, 1998–12 I.R.B. 32REG–120882–97, 1998–14 I.R.B. 25REG–121755–97, 1998–9 I.R.B. 13REG–208299–90, 1998–16 I.R.B. 26REG–209276–87, 1998–11 I.R.B. 18REG–209322–82, 1998–15 I.R.B. 26REG–209373–81, 1998–14 I.R.B. 26REG–209463–82, 1998–4 I.R.B. 27REG–209476–82, 1998–8 I.R.B. 36REG–209484–87, 1998–8 I.R.B.40REG–209485–86, 1998–11 I.R.B. 21REG–209682–94, 1998–17 I.R.B. 20REG–209807–95, 1998–8 I.R.B. 40REG–243025–96, 1998–18 I.R.B. 18REG–251502–96, 1998–9 I.R.B. 14

Revenue Procedures:

98–1, 1998–1 I.R.B. 798–2, 1998–1 I.R.B. 7498–3, 1998–1 I.R.B. 10098–4, 1998–1 I.R.B. 11398–5, 1998–1 I.R.B. 15598–6, 1998–1 I.R.B. 18398–7, 1998–1 I.R.B. 22298–8, 1998–1 I.R.B. 22598–9, 1998–3 I.R.B. 5698–10, 1998–2 I.R.B. 3598–11, 1998–4 I.R.B.998–12, 1998–4 I.R.B. 1898–13, 1998–4 I.R.B. 2198–14, 1998–4 I.R.B. 2298–15, 1998–4 I.R.B. 2598–16, 1998–5 I.R.B. 1998–17, 1998–5 I.R.B. 2198–18, 1998–6 I.R.B. 2098–19, 1998–7 I.R.B. 3098–20, 1998–7 I.R.B. 3298–21, 1998–8 I.R.B. 2798–22, 1998–12 I.R.B. 1198–23, 1998–10 I.R.B. 3098–24, 1998–10 I.R.B. 3198–25, 1998–11 I.R.B. 798–26, 1998–13 I.R.B.2698–27, 1998–15 I.R.B.1598–28, 1998–15 I.R.B.1498–29, 1998–15 I.R.B. 2298–30, 1998–17 I.R.B. 698–32, 1998–17 I.R.B. 1198–34, 1998–18 I.R.B. 15

Revenue Rulings:

98–1, 1998–2 I.R.B. 598–2, 1998–2 I.R.B. 1598–3, 1998–2 I.R.B. 4

Revenue Rulings—Continued

98–4, 1998–2 I.R.B. 1898–5, 1998–2 I.R.B. 2098–6, 1998–4 I.R.B. 498–7, 1998–6 I.R.B.698–8, 1998–7 I.R.B. 2498–9, 1998–6 I.R.B. 598–10, 1998–10 I.R.B. 1198–11, 1998–10 I.R.B. 1398–12, 1998–10 I.R.B. 598–13, 1998–11 I.R.B. 498–14, 1998–11 I.R.B. 498–15, 1998–12 I.R.B. 698–16, 1998–13 I.R.B. 1898–17, 1998–13 I.R.B. 2198–18, 1998–14 I.R.B. 2298–19, 1998–15 I.R.B. 598–20, 1998–15 I.R.B. 898–21, 1998–18 I.R.B. 798–23, 1998–18 I.R.B. 5

Treasury Decisions:

8740, 1998–3 I.R.B. 48741, 1998–3 I.R.B. 68742, 1998–5 I.R.B.48743, 1998–7 I.R.B. 268744, 1998–7 I.R.B. 208745, 1998–7 I.R.B. 158746, 1998–7 I.R.B. 48747, 1998–7 I.R.B. 188748, 1998–8 I.R.B. 248749, 1998–7 I.R.B. 168750, 1998–8 I.R.B. 48751, 1998–10 I.R.B. 238752, 1998–9 I.R.B. 48753, 1998–9 I.R.B. 68754, 1998–10 I.R.B. 158755, 1998–10 I.R.B. 218756, 1998–12 I.R.B.48757, 1998–13 I.R.B.48758, 1998–13 I.R.B. 158759, 1998–13 I.R.B. 198760, 1998–14 I.R.B. 48761, 1998–14 I.R.B. 138762, 1998–14 I.R.B. 158763, 1998–15 I.R.B. 58764, 1998–15 I.R.B. 98765, 1998–16 I.R.B. 118766, 1998–16 I.R.B. 178767, 1998–16 I.R.B. 4

1998–19 I.R.B. 29 May 11, 1998

Finding List of Current Action onPreviously Published Items1

Bulletins 1998–1 through 1998–18

Revenue Procedures:

91–59Updated and superseded by98–25, 1998–11 I.R.B. 7

94–16Modified and superseded by98–22, 1998–12 I.R.B. 11


95–3595–35ASuperseded by98–19, 1998–7 I.R.B. 30


97–1Superseded by98–1, 1998–1 I.R.B. 7









97–26Obsoleted by 98–28, 1998–15 I.R.B. 14


Revenue Rulings:

75–17Supplemented and superseded by98–5, 1998–2 I.R.B. 20

92–19Supplemented in part by98–2, 1998–2 I.R.B. 15

1 A cumulative finding list for previously publisheditems mentioned in Internal Revenue Bulletins1997–27 through 1997–52 will be found in InternalRevenue Bulletin 1998–1, dated January 5, 1998.

Notes

May 11, 1998 30 1998–19 I.R.B.

INTERNAL REVENUE BULLETINThe Introduction on page 3 describes the purpose and content of this publication. The weekly Internal Revenue Bulletin is sold

on a yearly subscription basis by the Superintendent of Documents. Current subscribers are notified by the Superintendent ofDocuments when their subscriptions must be renewed.

CUMULATIVE BULLETINSThe contents of this weekly Bulletin are consolidated semiannually into a permanent, indexed, Cumulative Bulletin. These are

sold on a single copy basis and are not included as part of the subscription to the Internal Revenue Bulletin. Subscribers to the week-ly Bulletin are notified when copies of the Cumulative Bulletin are available. Certain issues of Cumulative Bulletins are out of printand are not available. Persons desiring available Cumulative Bulletins, which are listed on the reverse, may purchase them from theSuperintendent of Documents.

HOW TO ORDERCheck the publications and/or subscription(s) desired on the reverse, complete the order blank, enclose the proper remittance,

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