INCOME TAX

Rev. Rul. 2000–40, page 208.Fringe benefits, aircraft valuation formula. For pur-poses of section 1.61–21(g) of the Income Tax Regulations,relating to the rule for valuing noncommercial flights on em-ployer-provided aircraft, the Standard Industry Fare Level(SIFL) cents-per-mile rates and terminal charges in effect forthe second half of 2000 are set forth.

EMPLOYEE PLANS

Announcement 2000–74, page 230.This document contains corrections to final regulations (T.D.8873, 2000–9 I.R.B. 713) relating to the transmission of cer-tain notices and consents through electronic media.

EXEMPT ORGANIZATIONS

Announcement 2000–72, page 226.This announcement requests comments on a proposedrevenue ruling regarding the notice and reporting require-ments for political organizations described in section 527of the Code.

ADMINISTRATIVE

Notice 2000–43, page 209.LMSB Comprehensive Case Resolution Program.This notice announces a pilot program under which largebusiness taxpayers may request accelerated and combinedresolution of all years they have open in Appeals, before theTax Court, and in Examination.

Rev. Proc. 2000–35, page 211.This document provides the procedures to be followed toobtain a withholding certificate under section 1445 of theCode to reduce the tax withheld on the disposition of U.S.real property interests by foreign persons. Rev. Proc. 88–23superseded.

Announcement 2000–73, page 230.This document contains corrections to final regulations(T.D. 8884, 2000–24 I.R.B. 1250) relating to certaincredits of corporations that become members of a consol-idated group.

Internal Revenue

bbuulllleettiinnBulletin No. 2000–35

August 28, 2000

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 ii.Announcement of Disbarments and Suspensions begins on page 232.Announcement of Declaratory Judgment Proceedings Under Section 7428 is on page 233.

August 28, 2000 2000–35 I.R.B.

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 are consolidated semiannually intoCumulative Bulletins, which are sold on 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.This part includes notices of proposed rulemakings, disbar-ment and suspension lists, and announcements.

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 basis,and are published in the first Bulletin of the succeeding semi-annual period, respectively.

The IRS Mission

Provide America’s taxpayers top quality service by help-ing them understand and meet their tax responsibilities

and by applying the tax law with integrity and fairness toall.

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.

August 28, 2000 208 2000–35 I.R.B.

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

Section 61.—Gross IncomeDefined

26 CFR 1.61–21: Taxation of fringe benefits.

Fringe benefits, aircraft valuation for-mula. For purposes of section 1.61–21(g)of the Income Tax Regulations, relating tothe rules for valuing non-commercialflights on employer-provided aircraft, theStandard Industry Fare Level (SIFL)cents-per-mile rates and terminal chargesin effect for the second half of 2000 areset forth.

Rev. Rul. 2000–40

For purposes of the taxation of fringebenefits under section 61 of the InternalRevenue Code, section 1.61–21(g) of theIncome Tax Regulations provides a rulefor valuing noncommercial flights on em-ployer-provided aircraft. Section1.61–21(g)(5) provides an aircraft valua-tion formula to determine the value ofsuch flights. The value of a flight is de-termined under the base aircraft valuationformula (also known as the Standard In-dustry Fare Level formula or SIFL) by

multiplying the SIFL cents-per-mile ratesapplicable for the period during which theflight was taken by the appropriate air-craft multiple provided in section1.61–21(g)(7) and then adding the applic-able terminal charge. The SIFL cents-per-mile rates in the formula and the terminalcharge are calculated by the Departmentof Transportation and are reviewed semi-annually.

The following chart sets forth the ter-minal charges and SIFL mileage rates:

Period During Which Terminal SIFL Mileagethe Flight Is Taken Charge Rates

7/1/00 - 12/31/00 $34.57 Up to 500 miles= $.1891 per mile

501-1500 miles= $.1442 per mile

Over 1500 miles= $.1386 per mile

DRAFTING INFORMATION

The principle author of this revenueruling is Kathleen Edmondson of the Of-fice of Division Counsel/Associate ChiefCounsel (Tax Exempt and GovernmentEntities). For further information regard-ing this revenue ruling, contact Ms. Ed-mondson on (202) 622-6040 (not a toll-free call).

Section 871.—Tax onNonresident Alien Individuals

26 CFR 1.871–8: Taxation of nonresident alienindividuals engaged in U.S. business or treated ashaving effectively connected income.

What are the procedures to be followed to obtaina withholding certificate under section 1445 for thereduction of withholding tax under section 1445 onthe disposition of U.S. real property interests by for-eign persons? See Rev. Proc. 2000–35, page 211.

Section 882.—Tax on Income ofForeign Corporations ConnectedWith United States Business

26CFR 1.882–2: Income of foreign corporationtreated as effectively connected with U.S. business.

What are the procedures to be followed to obtaina withholding certificate under section 1445 for thereduction of withholding tax under section 1445 onthe disposition of U.S. real property interests by for-eign persons? See Rev. Proc. 2000–35, page 211.

Section 897.—Disposition ofInvestment in United States RealProperty

26 CFR 1.897–1: Taxation of foreign investment inUnited States real property interests, definition ofterms.

What are the procedures to be followed to obtaina withholding certificate under section 1445 for thereduction of withholding tax under section 1445 onthe disposition of U.S. real property interests by for-eign persons? See Rev. Proc. 2000–35, page 211.

Comprehensive Case ResolutionPilot Program

Notice 2000–43

1. INTRODUCTION OFCOMPREHENSIVE CASERESOLUTION PILOT PROGRAM

This Notice announces a program underwhich large business taxpayers may re-quest resolution of all years they haveopen under examination by the Large andMid-Size Business Division (LMSB), inAppeals, and in docketed status before theUnited States Tax Court (Tax Court),through an Internal Revenue Service(IRS) team process. The purpose of theprogram is to enable taxpayers and theIRS to work together to resolve all openissues on all open years currently or pre-viously under examination. The programis intended to reduce costs, burden anddelays by expediting completion of thesecases through a cooperative effort.The program is jointly administered byLMSB, Appeals, and, if a taxpayer has adocketed case for any year, the Office ofChief Counsel (Chief Counsel). In thepilot phase, the program is available tolarge businesses that currently have atleast one open year under examination in aCoordinated Examination and at least oneprior year in Appeals (including docketedcases currently under Appeals’ jurisdic-tion). Taxpayers interested in participat-ing in the pilot program or with questionsabout the program should contact theirTeam Manager or the ComprehensiveCase Resolution Pilot Coordinator to dis-cuss their suitability for the program. During the pilot phase of the program,LMSB, Appeals and, if there is a docketedcase, Chief Counsel, plan to select eightto ten taxpayers from among those re-questing participation in the program.Applications will be solicited throughSeptember 29, 2000, and the IRS will se-lect participants by October 31, 2000.Taxpayers participating in the pilot pro-gram will be asked to assist in monitoringand evaluating the process. After evaluat-ing the pilot cases, the IRS may then offerthe program, with or without modifica-tion, on a permanent basis.The IRS believes that the ComprehensiveCase Resolution program offers signifi-

cant potential benefits for taxpayers aswell as the IRS, and invites large businesstaxpayers to participate.

2. DESCRIPTION OF THECOMPREHENSIVE CASERESOLUTION PROGRAM

The goal of the program is to help taxpay-ers that have tax years under examinationby LMSB and in Appeals (includingdocketed cases under Appeals jurisdic-tion) resolve all open issues in all suchyears through an IRS ComprehensiveCase Resolution (CCR) process. In somesituations it may also be appropriate to in-clude tax years which are docketed beforethe Tax Court and not under Appeals’ ju-risdiction. The effect of this program willbe to expedite the taxpayer’s LMSByears, where the audit is substantiallycomplete, into a resolution process. Thisprocess will be the taxpayer’s formal ad-ministrative appeal for the LMSB years.The program’s goal is to resolve all taxcontroversies, without litigation, on abasis that is fair and impartial to both thegovernment and the taxpayer. The CCRprocess will plan aggressive timelines forcompletion, with a target of closing allyears within six to twelve months. Ifagreement cannot be reached using thisprocess, Appeals will not again considerthe unagreed issues from the years underexamination by LMSB.Taxpayers with an LMSB CoordinatedExamination that is substantially com-plete may request to participate in thisprogram. “Substantially complete”means: (1) audit work on all significantissues is complete and the taxpayer hasindicated agreement or disagreement witheach proposed adjustment; and (2) allclaims and affirmative issues have beenraised by the taxpayer and audited. Inter-ested taxpayers with questions as towhether audit work is sufficiently com-plete should consult with their TeamManager.Each affected IRS function (LMSB, Ap-peals, and Chief Counsel) will indepen-dently recommend whether the taxpayershould be accepted into the program.When a taxpayer is accepted for the pilotprogram, the IRS will form a team repre-senting LMSB, Appeals, and, if appro-priate, Chief Counsel to work with the

taxpayer to resolve outstanding unagreedissues. For taxpayers accepted into the CCR pilotprogram, the IRS will not issue a notice ofproposed deficiency, commonly called a“30-day letter,” for the years currentlyunder examination by LMSB upon com-mencement of the program. Accordingly,for those years, the accrual of increasedinterest on large corporate underpaymentsunder § 6621(c) of the Internal RevenueCode will not begin at that time. How-ever, if those years are not resolved within12 months after the initial issue discus-sion conference is held under the CCRprogram, the IRS will issue a letter of pro-posed deficiency to begin the accrual ofinterest at the increased rate.Taxpayers not accepted for the pilot pro-gram will continue to follow existingLMSB, Appeals, and, where relevant, TaxCourt, procedures for resolution of theircases.

3. SUBJECT MATTER FOR THECOMPREHENSIVE CASERESOLUTION PROGRAM

The CCR program is intended to expediteresolution of all disputed issues on allopen tax years that have been or are beingexamined. Generally, all issues that couldappropriately be considered by Appealswill be suitable for the program. To en-sure fair treatment of the taxpayer, issuesalready agreed between the taxpayer andIRS in LMSB or Appeals generally willnot be re-opened. Certain issues may not be appropriate forthis process. The IRS and the taxpayermay agree to exclude these issues but pro-ceed with the program on the remainingissues. If the Office of Chief Counsel de-termines that it would be inappropriate toinclude some or all docketed years in theprocess, the IRS may proceed under theprogram with the remaining years withthe taxpayer’s concurrence. Further, theIRS may determine that certain issues willnot be part of the process. Specific issuesexcluded from the program include:(1) Issues that (for the taxpayer) in-

volve a partnership item as definedin § 6231 of the Internal RevenueCode, or are subject to the proce-dures set forth in § 6221 through § 6233; and

2000–35 I.R.B. 209 August 28, 2000

Part III. Administrative, Procedural, and Miscellaneous

(2) Issues that have been designated forlitigation by Chief Counsel.

This list is not all-inclusive as situationsmay arise where other issues are deter-mined inappropriate for the process.

4. PROCEDURES FORREQUESTING COMPREHENSIVECASE RESOLUTION PROCESS

Before initiating a formal request. Tax-payers interested in participating in thepilot program, or with questions about theprogram and its suitability for their cases,may contact the LMSB Team Managerfor the year currently under examination.Taxpayers also may contact Cary Russ,the CCR Coordinator, at (202) 283-8330(not a toll-free number), for further infor-mation about this pilot program.Initiating the request for the CCR pilot.The taxpayer must submit its request toparticipate in the CCR pilot program inwriting to the Team Manager on or beforeSeptember 29, 2000. The CCR Coordina-tor and the Team Manager are available toassist the taxpayer in preparing its pilotrequest.Contents of the request. A concise writ-ten statement requesting the CCR processshould include:(1) The taxpayer’s name, EIN, and ad-

dress and the name, title, address andtelephone number of a person to con-tact.

(2) The tax years for which Comprehen-sive Case Resolution is sought, theIRS office considering each year, andthe name of the IRS Appeals Officerand counsel of record handling anymatter not under the jurisdiction ofLMSB.

(3) For the years currently under LMSBexamination, a list of all unagreedissue(s). The taxpayer should includecopies of unagreed Forms 5701, No-tice of Proposed Adjustment, or ashort description of the unagreed is-sues if no Form 5701 has been issued.Although a formal protest is not re-quired, the request must contain abrief explanation of the taxpayer’sposition regarding each issue. (If ac-cepted into the program, a taxpayerwill have an opportunity to present amore complete statement of its posi-tion at a later stage.)

(4) For the years in Appeals, the currentstatus of each issue, including

whether agreement (oral or written)has been reached.

(5) If docketed year(s) under ChiefCounsel’s jurisdiction are included,the current status of all unresolvedissues, including whether agreement(oral or written) has been reached,the date calendared for trial, if any,and any other deadlines establishedby the Court.

(6) An acknowledgment that the tax-payer consents to ex parte communi-cations between IRS Appeals Offi-cers and any other IRS personnel inthe context of the CCR process.

(7) An acknowledgment that participa-tion in the CCR process constitutesthe administrative appeal for allyears under LMSB examination in-cluded in this application.

(8) A statement that the taxpayer will notfile new claims or raise new affirma-tive issues for any year, regardless ofjurisdiction, during the CCR process.Claims and affirmative issues mustbe raised and audit work completedbefore the CCR process begins.

(9) An acknowledgment that this is anexpedited program in which the tax-payer will work with the IRS CCRteam to establish accelerated time-lines for completion of the process.

(10) A statement of the taxpayer’s will-ingness to participate in a pilot pro-gram and to assist in monitoringand evaluating the process.

Perjury statement. A request for theCCR process must include a declaration,signed by a person currently authorized tosign the taxpayer’s federal income tax re-turn, in the following form:

Under penalties of perjury, I declarethat I have examined this request, in-cluding accompanying documents, and,to the best of my knowledge and belief,the facts presented in support of the re-quest for Comprehensive Case Resolu-tion are true, correct and complete.

If the request is signed by an authorizedrepresentative, a copy of Form 2848,Power of Attorney and Declaration ofRepresentative, must accompany the re-quest.

5. SELECTION OF TAXPAYERSFOR THE PILOT PROGRAM

Team Manager’s Role: The Team Man-ager will immediately forward a copy of

the taxpayer’s application to the CCR Co-ordinator, Appeals and, if appropriate,Chief Counsel. The Team Manager willassess the readiness of the LMSB yearsfor the CCR process. This assessment willinclude whether the years are, or will be,substantially complete by October 31,2000. Appeals Management Role: Appealsmanagement will assess the status of eachissue and the anticipated completiondate(s) of the years before Appeals (in-cluding docketed years in Appeals settle-ment jurisdiction).Chief Counsel’s Role: If years are dock-eted before the Tax Court, Chief Counselwill provide an assessment similar to Ap-peals of the status of those years. ChiefCounsel may direct the CCR Pilot Coor-dinator not to include a docketed year oryears in the CCR process. CCR Pilot Coordinator Role: The CCRPilot Coordinator will provide guidanceto taxpayers and to IRS personnel on theprogram, will ensure that LMSB, Appealsand Chief Counsel timely provide infor-mation listed above, and will keep theCCR Pilot Executive informed of all pro-gram activity.CCR Pilot Executive Role: The CCRPilot Executive will provide general over-sight for the program, interface with Ap-peals and Chief Counsel, lead in the train-ing effort, and meet with taxpayers asappropriate. The CCR Pilot Executivewill convene an evaluation team to in-clude LMSB, Appeals and, if appropriate,Chief Counsel. The team will be respon-sible for determining whether the appli-cant meets the selection criteria.Selection Criteria: In general, the teamwill evaluate the request using criteriathat include the following:

General criteria:

(1) Application by September 29,2000;

(2) Taxpayer under Coordinated Ex-amination by LMSB and also inAppeals;

(3) LMSB examination years are sub-stantially complete; and

(4) The Appeals years will not be set-tled before the first issue resolu-tion conference is held.

Additional Pilot criteria:(1) Having a cross-section of taxpay-

ers of varying sizes, representingdifferent industry lines, a geo-

August 28, 2000 210 2000–35 I.R.B.

2000–35 I.R.B. 211 August 28, 2000

graphical dispersion of cases, anda variety of issues;

(2) IRS resource availability inLMSB, Appeals and Chief Coun-sel;

(3) The likelihood of the case beingresolved through this process;and

(4) In the case of a docketed year, theability to comply with the TaxCourt’s procedures and deadlines.

Communication with taxpayer. TheCCR Pilot Executive will advise taxpay-ers in writing on or about October 31,2000, whether they will be included in thepilot program. A taxpayer may not appealthe decision that it not be included in thepilot program.

6. CONDUCTING THECOMPREHENSIVE CASERESOLUTION PROCESS

Initial 60 days. Once a case is acceptedinto the pilot program, the IRS will form aresolution team composed of membersfrom LMSB and Appeals (and ChiefCounsel, if there is a docketed case).Within the first 30 days, the CCR teamwill contact the taxpayer to schedule aninitial planning meeting. At the planningmeeting, the parties will confirm the is-sues to be resolved, identify who will beinvolved in the process and their respec-tive authorities, answer any questionsabout the process, and establish a timelinefor resolution of all issues. Additionally,the team and the taxpayer will schedulethe first issue resolution conference nolater that 60 days after the case is ac-cepted into the pilot.Resolution process. ComprehensiveCase Resolution constitutes the tax-payer’s formal exercise of its appealrights for the years under examination byLMSB. Therefore, conferences betweenthe taxpayer and the IRS CCR team willfollow existing Appeals procedures. Ifthe IRS and taxpayer reach agreement,years will be closed using Appealsprocesses and closing documents. If theparties are unable to reach agreement onany issue(s), Appeals will issue a statu-tory notice of deficiency on the unagreedissue(s). Should any case be subject to re-view by U. S. Competent Authority or theJoint Committee on Taxation, the casewill be closed after those approvals areobtained.

7. WITHDRAWAL FROM THECOMPREHENSIVE CASERESOLUTION PROCESS

Taxpayers may withdraw from the CCRpilot by submitting a written request, butonly within 30 days after acceptance intothe program or 20 days after the initialplanning meeting, whichever is later.Thereafter, with respect to the years underLMSB jurisdiction at the time of applica-tion for CCR, the process will be com-pleted with a total or partial agreement orissuance of a statutory notice of defi-ciency. A taxpayer’s withdrawal from the CCRpilot returns each open year to the juris-diction of the IRS function it was underprior acceptance into the program. Tax-payers will be afforded administrative ap-peal on the years under LMSB jurisdic-tion as if the taxpayer had not applied forCCR.

8. MISCELLANEOUS

Record keeping requirements. No as-pect of the CCR process will affect therecord keeping requirements imposed byany section of the Internal Revenue Code.No user fee. There is no user fee for par-ticipating in the CCR program.

9. COMMENTS

The IRS invites interested persons tocomment on this program. Send submis-sions to:

Internal Revenue ServiceAtt’n Cary RussLarge and Mid-Size Business DivisionLM:PFTGMint Building, 3rd Floor, M-3-3121111 Constitution Avenue, NWWashington, DC 20224

Submissions also may be hand deliveredMonday through Friday between thehours of 8 a.m. and 5 p.m. to the Courier’sDesk, Internal Revenue Service, 1111Constitution Avenue, NW, Washington,DC. Such submissions should be marked:Att’n Cary Russ, Large and Mid-SizeBusiness Division LM:PFTG, MintBuilding, 3rd Floor, M-3-312.Alternatively, interested persons may sub-mit comments via e-mail to:

PFTG1@irs.govThese addresses are for comments on thepilot program. Requests by eligible tax-

payers to participate in the pilot programshould be submitted as describe in section4 above.

10. FURTHER INFORMATION

For further information regarding this No-tice, contact Cary Russ, the CCR PilotCoordinator, at (202) 283-8330 (not atoll-free number), or the Team Managerfor your current examination.

26 CFR 601.602: Tax forms and instructions.

Rev. Proc. 2000-35

SECTION 1. PURPOSE

This revenue procedure supersedesRev. Proc. 88-23, 1988-1 C.B. 787, whichprovided the procedures to be followed toobtain a withholding certificate under sec-tions 1.1445-3 and 1.1445-6 of the In-come Tax Regulations.

SEC. 2. BACKGROUND

The Tax Reform Act of 1984, section129, 1984-3 (Vol. 1) C.B. 163, added sec-tion 1445 to the Internal Revenue Code asa means of enforcing the tax imposed pur-suant to section 897 on dispositions byforeign persons of investments in U.S.real property. Section 1445(a) providesthat a transferee of a U.S. real property in-terest from a foreign person must deductand withhold a tax equal to 10 percent ofthe amount realized by the foreign personon the disposition.

Section 1445(b) and the regulationsthereunder provide several exceptions tothis requirement, including an exemptionfrom withholding for persons who pur-chase property for use as a residence for$300,000 or less. Other exemptions in-clude cases where the transferor furnishesan affidavit of nonforeign status, wherethe property transferred is stock that isregularly traded on an established securi-ties market, where the transferor is not re-quired to recognize any gain or loss withrespect to the transfer and the require-ments of section 1.1445-2(d)(2) are met,and where a statement is obtained fromthe Internal Revenue Service that excuseswithholding. Similarly, section 1445(c)provides that the amount required to bewithheld can be reduced pursuant to a de-termination by the Service of the trans-feror’s maximum tax liability upon the

disposition. Sections 1.1445-3 and1.1445-6 of the regulations provide rulesconcerning the issuance by the Service ofa withholding certificate that reduces oreliminates withholding.

Rev. Proc. 88-23 provided additionalguidance concerning applications forwithholding certificates. This revenueprocedure supersedes Rev. Proc. 88-23,and provides additional guidance by wayof modifications and clarifications to theprovisions of former Rev. Proc. 88-23concerning applications for withholdingcertificates.

SEC. 3. WITHHOLDINGCERTIFICATES—IN GENERAL

.01 Purpose of Withholding Certificate.Withholding under section 1445 of theCode may be reduced or eliminated pur-suant to a withholding certificate issuedby the Service in accordance with therules set forth in this revenue procedure.A withholding certificate may be issuedby the Service in cases where reducedwithholding is appropriate, where thetransferor is exempt from U.S. tax, orwhere an agreement for the payment oftax is entered into with the Service. Awithholding certificate that is obtainedprior to a transfer notifies the transfereethat no withholding is required or that re-duced withholding is required. A with-holding certificate that is obtained after atransfer has been made may authorize anormal refund or an early refund. Seesection 1.1445-3(g) of the regulations. Awithholding certificate issued pursuant tothe provisions of this revenue procedureserves to fulfill the requirements, as ap-plicable, of section 1445(b)(4) concerningqualifying statements, section 1445(c)(1)concerning the transferor’s maximum taxliability, or section 1445(c)(2) concerningthe Secretary’s authority to prescribe re-duced withholding.

.02 Limited Effect of a WithholdingCertificate. A withholding certificateserves only to adjust withholding obliga-tions to correspond as closely as possibleto the probable tax liability arising out ofa transfer. Therefore, all determinationsthat are made by the Service in connec-tion with the issuance of a withholdingcertificate apply solely for the limitedpurpose of determining withholdingobligations under section 1445 of theCode, and do not necessarily represent the

Service’s final view with respect to anysubstantive issue that may arise in con-nection with a transfer. Similarly, the Ser-vice’s acceptance in connection with theissuance of a withholding certificate ofany evidence provided or any representa-tion made by a taxpayer is made only forthat purpose, is not binding for any otherpurpose, and does not constitute a finaldetermination of the truth or accuracy ofany such evidence or representation.

.03 Types of Withholding CertificatesAvailable. Pursuant to section 1.1445-3of the regulations, a withholding certifi-cate may be issued on the basis of any ofthe following:

1. A determination by the Servicethat reduced withholding is appropriatebecause either:

(a) The amount otherwise requiredto be withheld would exceedthe transferor’s maximum taxliability; or

(b) Withholding of a reducedamount would not jeopardizecollection of the tax.

2. The exemption from U.S. tax ofall gain realized by the transferor; or

3. An agreement entered into by thetransferee or transferor for the payment oftax providing security for the tax liability.

SEC. 4. APPLICATIONS FORWITHHOLDING CERTIFICATES

.01 General rules. An application for awithholding certificate must be submittedto the Internal Revenue Service Center,P.O. Box 21086, Drop Point 8731FIRPTA Unit, Philadelphia, PA 19114-0586. Either a transferee or a transferormay apply for a withholding certificate,but only a transferor may apply for a blan-ket withholding certificate. The Serviceordinarily will act upon an application notlater than the 90th day after all informa-tion necessary for the Service to make adetermination is received. However, inthe case of an application for a certificatedescribed in section 4.03(6) below, or inunusually complicated cases, the Servicemay be unable to provide a withholdingcertificate by the 90th day. In such a case,the Service will notify the applicant bythe 45th day after all information neces-sary for the Service to make a determina-tion is received that additional processingtime will be necessary. The Service’s no-tice may request additional information or

explanation concerning particular aspectsof the application and will provide a tar-get date for final action (contingent uponthe applicant’s timely submission of anyrequested information).

If an application for a withholding cer-tificate is submitted before or on the dateof a transfer and on the date of the transferthe application remains pending with theService, the amount required to be with-held by the transferee is not required to bereported and paid over immediately. Simi-larly, if an application for a blanket with-holding certificate is submitted before oron the date of the first transfer covered bythe application, and on the date of the firsttransfer the application remains pendingwith the Service, the amount required to bewithheld by the transferee is not requiredto be reported and paid over immediately.Instead, that amount (or such other amountas is appropriate) must be reported andpaid over by the 20th day following theday upon which a copy of the withholdingcertificate or notice of denial is mailed bythe Service. If the application is not sub-mitted before or on the date of the transfer,or in the case of a blanket withholding cer-tificate application, before or on the date ofthe first transfer, the transferee must reportand pay over any tax withheld by the 20thday after the date of the transfer. Treas.Reg. § 1.1445-1(c)(1).

.02 Required signatures. An applica-tion for a withholding certificate must besigned by a responsible officer in the caseof a corporation, by a general partner inthe case of a partnership, by a trustee, ex-ecutor, or equivalent fiduciary in the caseof a trust or estate, and, in the case of anindividual, by that individual. In addi-tion, an application may be signed by anagent authorized to do so by a power ofattorney. Form 2848 may be used for thispurpose. The person signing the applica-tion must verify under penalties of perjurythat all representations made in connec-tion with the application are true, correct,and complete to the best of that person’sknowledge and belief. To the extent thatan application is premised in whole or inpart on information provided by anotherparty to the transaction, this informationis to be supported by a written verificationattached to that application signed underpenalties of perjury by the party to whomit pertains. The application must followthe format set forth in section 4.04 below.

August 28, 2000 212 2000–35 I.R.B.

.03 Categorizing of applications. Tofacilitate the processing of applicationsfor withholding certificates, this revenueprocedure divides all applications into sixbasic categories as follows:

1. Applications for withholding cer-tificates based on a claim that the trans-feror is entitled to nonrecognition treat-ment or is exempt from tax;

2. Applications for withholding cer-tificates based solely on a calculation ofthe transferor’s maximum tax liability;

3. Applications for withholding cer-tificates under the special installmentsales rules of section 7 of this revenueprocedure;

4. Applications for withholding cer-tificates based on an agreement for thepayment of tax with conforming security;

5. Applications for blanket withhold-ing certificates under section 9 of this rev-enue procedure; and

6. Applications for withholding cer-tificates on any other basis.

.04 Format for application. All appli-cations for withholding certificates mustprovide the following information inparagraphs labeled to correspond with thenumbers and letters set forth below. Place“N/A” in the relevant space if the infor-mation requested is not applicable to theapplication being submitted.

1. (a) State which category of sec-tion 4.03, above, describes theapplication;

(b) In the case of category 4 appli-cations (agreement for thepayment of tax with conform-ing security):

(1) State whether the proposedagreement secures (A) thetransferor’s maximum taxliability, or (B) the amountthat would otherwise berequired to be withheld; and

(2) State whether the proposedagreement and securityinstrument conform to thestandard formats set forth inthis revenue procedure.

2. (a) Provide the name, taxpayeridentification number (to theextent required in regulations),and home address (for an indi-vidual) or office address (foran entity) of the person apply-ing for the withholding certifi-cate. A mailing address should

also be included if different.(b) State whether the applicant is

the transferee or transferor.(c) Provide the name, address, and

taxpayer identification number(to the extent required in regula-tions) of all other transfereesand transferors (specifyingwhether such party is a trans-feree or transferor) of the U.S.real property interest with re-spect to which the withholdingcertificate is sought. The appli-cant must determine if a tax-payer identification number ex-ists for each party concernedand if none exists for a particu-lar party the application must sostate. Any application that iscombined with the transferor’srequest for an early refund mustinclude the transferor’s taxpayeridentification number.

3. Provide the following informationconcerning the U.S. real property interestwith respect to which the withholding cer-tificate is sought:

(a) Type of interest (that is, inter-est in real property, in associ-ated personal property, or in adomestic U.S. real propertyholding corporation);

(b) The contract price;(c) Date of transfer;(d) In the case of an interest in real

property, its location and ageneral description of theproperty (for example, “10-story, 100 unit luxury apart-ment building”); and

(e) In the case of an interest in aU.S. real property holding cor-poration, the class or type andamount of the interest.

(f) Whether in the three precedingtaxable years: (1) U.S. incometax returns were filed relating tothe U.S. real property interest,and if so, when and where thosereturns were filed, and if not,why returns were not filed; and(2) whether U.S. income taxeswere paid relating to the U.S.real property interest, and if so,the amount of the tax paid.

4. Provide full information concern-ing the basis for the issuance of the with-holding certificate, in accordance with the

rules of sections 4.05 through 4.11 below.Although the information to be includedin this section of the application will nec-essarily vary from case to case, the rulesset forth below provide general guidelinesfor the inclusion of appropriate informa-tion with respect to each category of ap-plication.

5. The use of Form 8288-B to applyfor a withholding certificate under cate-gories 1 through 3 will expedite the appli-cation process. An application that is notsubstantially complete when submittedwill be rejected. For example, an applica-tion without a specific or estimated dateof transfer will not be considered to besubstantially complete.

.05 Information concerning category 1applications (nonrecognition or exempttransfer). If a withholding certificate issought on the basis of a claim that thetransaction is entitled to nonrecognitiontreatment or is exempt from U.S. taxation,provide the following:

1. A brief description of the transfer;2. A brief summary of the law and

facts supporting the claim of nonrecogni-tion or exemption;

3. Evidence that the transferor has nounsatisfied withholding liability, as de-scribed in section 4.06(3); and

4. The contract price (if any), or if nocontract price is available, the most recentassessed value, for state or local propertytax purposes, of the U.S. real property in-terest to be transferred, or, if such as-sessed value is not available, then thegood faith estimate of its fair marketvalue (no supporting evidence concerningthe value of the property need be sup-plied).

.06 Information concerning category 2applications (determination of maximumtax liability).

1. In general. If a withholding cer-tificate is sought on the basis of a determi-nation of the transferor’s maximum tax li-ability, information must be provided toestablish the two elements of that liabil-ity: (a) the maximum tax that may be im-posed on the disposition, and (b) thetransferor’s unsatisfied withholding lia-bility. Paragraphs 4.06(2) and .06(3),below, provide guidelines for the furnish-ing of such information. For further in-formation concerning the determinationof the transferor’s maximum tax liability,see section 1.1445-3(c) of the regulations.

2000–35 I.R.B. 213 August 28, 2000

2. Maximum tax on disposition. (a)The applicant must provide a calculationof the maximum tax that may be imposedon the disposition, including the follow-ing information:

(1) The amount to be realized bythe transferor plus evidenceconfirming this amount, suchas a copy of the signed con-tract relating to the transfer;

(2) Adjusted basis of the prop-erty plus evidence confirm-ing the basis claimed, suchas schedules of depreciationfor tax purposes (if nodepreciation schedules areprovided, the applicationmust state the nature of theuse of the property and whydepreciation was notallowed);

(3) Amounts to be recapturedwith respect to depreciation,investment tax credit, orother items subject to recap-ture;

(4) Maximum capital gainand/or ordinary income taxrates applicable to the trans-fer;

(5) Tentative tax owed;(6) Amount of any increase or

reduction of tax to which thetransferor is subject, includ-ing any reduction to whichthe transferor is entitledunder a provision of a U.S.income tax treaty as well asevidence supporting theadjustment claimed. Seesection 1.1445-3(c)(2) ofthe regulations.

(b) For purposes of calculating themaximum tax that may be imposed upona disposition, unused credit carryoversshall not be taken into account, and netoperating loss carry-overs (NOLs) (seesection 172 of the Code) may be takeninto account only if:

(1) The transferor claiming theNOL has been engaged in atrade or business in the U.S.during the three precedingtax years and has timelyfiled an income tax returnfor each of those years(copies of which should beattached);

(2) The claimed NOL has beenreflected on previously-filedreturns (no anticipated losswith respect to current yearoperations may be consid-ered);

(3) The claimed NOL is not cur-rently the subject of anexamination by or a disputewith the Service;

(4) The transferor agrees that, ifthe amount of gain that thetransferor claimed would beoffset by the NOL exceedsthe amount of the gain actu-ally recognized and offsetby the claimed NOL whenthe transferor files its taxreturn for the current taxyear, the transferor will payinterest upon the excess ofthe amount that should havebeen subject to withholdingover the amount, if any,actually withheld, whichinterest will be computed:

(A) At the rates and in themanner prescribed bysections 6621 and6622 of the Code; and

(B) With respect to the pe-riod between the dateon which withholdingwould otherwise havebeen required and thedate on which pay-ment is made (for pur-poses of determiningwhether gain recog-nized on the disposi-tion was in fact offsetby the claimed NOL,the NOL is deemedfirst to offset incomefrom sources otherthan the disposition ofU.S. real property in-terests, and then tooffset gain from suchdispositions with re-spect to which a with-holding certificatewas issued in theorder to which suchdispositions oc-curred);

(5) The claimed NOL has notpreviously been used to

reduce withholding uponother dispositions of U.S.real property interests or toreduce the amount of anyother obligation or liabilityunder U.S. internal revenuelaws; and

(6) As part of the application,the transferor representsthat:

(A) At least 80 percent ofits gross income sub-ject to U.S. taxation inthe taxable year ofdisposition will be de-rived from U.S. realproperty interests; and

(B) In calculating themaximum tax thatmay be imposed onthe disposition, theapplication calculatesthe NOL in the man-ner prescribed by theprovisions of this sec-tion 4.06(2)(b), andthe NOL is taken intoaccount only to theextent permitted bysuch provisions.

3. Transferor’s unsatisfied withhold-ing liability. The applicant must provide acalculation of the transferor’s unsatisfiedwithholding liability or evidence that itdoes not exist. That liability is the amountof any tax that the transferor was requiredto but did not withhold and pay over undersection 1445 of the Code upon the acquisi-tion of the subject U.S. real property inter-est or a predecessor interest. The trans-feror’s unsatisfied withholding liability isincluded in the calculation of maximumtax liability so that such prior withholdingliability may be satisfied by the trans-feree’s withholding upon the current trans-fer. For purposes of this paragraph 3, apredecessor interest is one that was ex-changed for the subject U.S. real propertyinterest in a transaction in which the trans-feror was not required to recognize the fullamount of the gain or loss realized uponthe transfer. For further information, seesection 1.1445-3(c)(3) of the regulations.Evidence that the transferor has no unsat-isfied withholding liability includes anyone of the following items:

(a) Evidence that the transferor ac-quired the subject or predecessor

August 28, 2000 214 2000–35 I.R.B.

U.S. real property interest beforeJanuary 1, 1985;

(b) A copy of the Form 8288 thatwas filed by the transferor, andproof of payment of the amountshown due thereon, with respectto the transferor’s acquisition ofthe subject or predecessor U.S.real property interest;

(c) A copy of a withholding certifi-cate issued with respect to thetransferor’s acquisition of thesubject or predecessor U.S. realproperty interest, plus a copy ofForm 8288 and proof of paymentwith respect to any withholdingrequired under that certificate;

(d) A copy of the nonforeign certifi-cate (see Treas. Reg. §1.1445-2(b)(2))furnished by the personfrom whom the subject U.S. realproperty interest was acquired,executed at the time of that ac-quisition;

(e) Evidence that the transferor pur-chased the subject or predecessorU.S. real property interest for$300,000 or less and a statement,signed by the transferor underpenalties of perjury, that the trans-feror purchased the property foruse as a residence within the mean-ing of section 1.1445-2(d)(1);

(f) Evidence that the person fromwhom the transferor acquired thesubject or predecessor U.S. realproperty interest fully paid anytax imposed on that transactionpursuant to section 897;

(g) A copy of a notice of nonrecogni-tion treatment provided to thetransferor pursuant to section1.1445-2(d)(2) by the personfrom whom the transferor ac-quired the subject or predecessorU.S. real property interest; and

(h) A statement, signed by the trans-feror under penalties of perjury,setting forth the facts and cir-cumstances that support thetransferor’s conclusion that nowithholding was required undersection 1445(a) with respect tothe transferor’s acquisition of thesubject or predecessor U.S. realproperty interest.

.07 Information concerning category 3applications (installment sales). See sec-

tion 7 of this revenue procedure..08 Information concerning category 4

applications (agreement for the paymentof tax with conforming security). If awithholding certificate is sought on thebasis of an agreement for the payment oftax, the application must include:

1. Information establishing:(a) The transferor’s maximum tax

liability, in accordance withsection 4.06; or

(b) The amount otherwise re-quired to be withheld pursuantto section 1445(a) of the Code;

2. A signed copy of the agreementproposed by the applicant; and

3. A copy of the security instrumentproposed by the applicant. For further in-formation concerning agreements for thepayment of tax and security instruments,see sections 5 and 6 of this revenue proce-dure and section 1.1445-3 of the regula-tions.

.09 Information concerning category 5applications (blanket withholding certifi-cate). See section 9 of this revenue pro-cedure.

.10 Information concerning Category 6applications (non-standard applications).

1. Agreement for payment of tax withnonconforming security. If the applicantseeks to enter into an agreement for thepayment of tax, but wishes to provide anonconforming type of security, the appli-cation must include:

(a) The information required bysection 4.08 concerning cate-gory 4 applications;

(b) A description of the noncon-forming security proposed bythe applicant; and

(c) A memorandum of law andfacts establishing that the pro-posed security is valid and en-forceable and that it adequatelyprotects the government’s in-terest.

2. Other non-standard applications.An application for a withholding certifi-cate not otherwise described in this rev-enue procedure must explain in detail theproposed basis for the issuance of the cer-tificate and set forth the reasons justifyingthe issuance of a certificate on that basis.

.11 Information submitted by foreigngovernments. In addition to the informa-tion required in Sec. 4.04 and Sec. 4.05, aforeign government submitting an appli-

cation on the basis that the subject U.S.real property is used by the foreign gov-ernment for a diplomatic mission shouldsubmit the following information:

1. Information identifying the diplo-matic property;

2. Information establishing that theproperty is used by the foreign govern-ment for a diplomatic mission; and

3. Information describing whetherthe property has been recognized by theState Department as being diplomaticproperty subject to the Foreign MissionsAct, § 202, 22 U.S.C. § 4305 (1982).

.12 Availability of records. The appli-cant shall make available to the Commis-sioner, within the time prescribed by theCommissioner, all information that maybe required by the Commissioner in orderto verify that representations relied uponby the Commissioner in accepting theagreement are accurate, and that theobligations assumed by the applicant willbe performed pursuant to the agreement.Failure to provide requested informationpromptly will usually result in rejection ofthe application. Instead of such rejection,the Commissioner, in his discretion, mayalso consider extension of an establishedtarget date for issuing a withholding cer-tificate. The parties shall agree that thereview of books and records pursuant tothe agreement shall not constitute an ex-amination for purposes of section 7605(b)of the Code.

SEC. 5. AGREEMENT FOR THEPAYMENT OF TAX

.01 In general. The Service will issue awithholding certificate that excuses with-holding or that permits a transferee towithhold a reduced amount if either thetransferor or the transferee enters into anagreement for the payment of tax. Anagreement for the payment of tax is a con-tract between the Service and any otherperson that consists of two necessary ele-ments. Those elements are:

1. A detailed description of the rightsand obligations of each; and

2. A security instrument or otherform of security acceptable to the Com-missioner.

.02 Contents of agreement—In general.An agreement for the payment of tax musteither provide adequate security for thepayment of the tax in accordance with sec-tion 6 of this revenue procedure or provide

2000–35 I.R.B. 215 August 28, 2000

for the payment of the tax through a com-bination of security and withholding of taxby the transferee. The agreement mustcover an amount described in subdivision(a) or (b) of this paragraph.

(a) Tax that would otherwise be with-held. An agreement for the payment oftax may cover the tax that would other-wise be required to be withheld pursuantto section 1445(a) of the Code. In addi-tion to securing the amount computedpursuant to section 1445(a), the agree-ment must provide that the applicant willpay interest upon that amount, at the ratesand in the manner prescribed by section6621 and 6622, with respect to the periodbetween the date on which the tax im-posed by section 1445(a) would otherwisebe due (i.e., the 20th day after the date oftransfer) and the date on which the trans-feror’s payment of tax with respect to thedisposition will be due. Interest and addi-tions with respect to the tax also must besecured. In most instances, payments ofinterest and additions to tax may be se-cured by the same agreement that securespayment of taxes. At the discretion of theCommissioner, however, separate secu-rity agreements may be required.

(b) Maximum tax liability. An agree-ment for the payment of tax may providefor the payment of the transferor’s maxi-mum tax liability, determined in accor-dance with section 4.06(2) of this revenueprocedure. The agreement must also pro-vide for the payment of an additionalamount equal to 25 percent of the amountdetermined under section 4.06(2). Thisadditional amount secures the interest andadditions to tax that would accrue be-tween the date of a failure to file a returnand pay tax with respect to the dispositionand the date on which the Service collectsthe tax pursuant to the agreement.

.03 Parties to the agreement. Allagreements for the payment of tax will bebetween the Commissioner and the appli-cant furnishing the security or personallyguaranteeing payment of any tax later de-termined to be due. In addition, the Com-missioner may require as a signatory anyother party deemed to be appropriate.The Commissioner may require suchother terms and conditions, or vary theformat as appropriate in the particularcase, to provide adequate security.

.04 Contents of agreement—Stated pur-pose and warranties. The agreement for

the payment of tax should state the pur-pose and basis of the agreement. Itshould also recite any warranties or repre-sentations upon which the Commissionerwill be required to place material reliancein accepting the agreement.

.05 Contents of agreement—Identifica-tion of security. The agreement for thepayment of tax must set forth in detail theobligations to be assumed and identify thenature of the security that is being offered.To the extent that the security is embodiedin an instrument or document collateral tothe agreement, such instrument or docu-ment must be incorporated by reference inthe agreement.

.06 Sample agreement. The followingexample sets forth the language of anagreement for the payment of tax that inmost circumstances will be acceptable tothe Service:

1. This agreement is entered intopursuant to the provisions of section 1445of the Internal Revenue Code (the“Code”) and the regulations thereunder.

The signatories warrant that they areauthorized under applicable law to enterinto the agreement and undertake the ac-tions and obligations specified herein.

2. (name)warrants that (s)he/it will make timelypayment of any liability (including tax,penalties, interest, and additions to tax)that may become lawfully due and owingunder the Code as a result of the disposi-tion or distribution by ofthe interest, or any part thereof, describedin Exhibit(s) [the“subject interest(s)”] giving rise to tax lia-bility by reason of the operation of sec-tions 871(b), 882, and/or 897 of the Code.The related security secures payment ofsuch amounts. Security for the paymentof such liability is provided in the amountof , inaccordance with the requirements of sec-tion 1.1445-3(e)(2) of the Income TaxRegulations. The computation of theproper amount of security to be providedis set forth in Exhibit andsuch computation is hereby incorporatedby reference.

3. The provisions of this agreementshall be construed as binding upon all sig-natories to this agreement, unless the in-tent to exclude any one or more signato-ries is clearly set forth in the provisions oris clearly implicit in the terms hereof.

4. The amount of each deposit of es-timated tax that will be required with re-spect to the amount recognized on thesubject disposition may be collected bylevy upon or recourse to the security as ofthe date following the date on which eachsuch deposit is due (unless such deposit istimely made).

5. The entire amount of the liabilitymay be collected by levy upon or recourseto the security at any time during the ninemonths following the date on which thepayment of tax with respect to the subjectdisposition is due, subject to release of thesecurity upon the full payment of the taxand any interest and penalties due. If thetransferor requests an extension of time tofile a return with respect to the disposi-tion, the Commissioner may require thatthe term of the security instrument be ex-tended until the date that is nine monthsafter the filing deadline as extended.

6. The applicant shall make availableto the Commissioner within 30 days of arequest from the Commissioner all infor-mation that may be required by the Com-missioner in order to verify that represen-tations relied upon by the Commissionerin accepting the agreement are accurate,and that the obligations assumed by theapplicant are performed pursuant to thisagreement.

7. The parties agree that the reviewof books and records pursuant to thisagreement shall not constitute an exami-nation for purposes of section 7605(b) ofthe Code.

8. Nothing in this agreement shalllimit the Commissioner from performingthe obligations imposed upon or dele-gated to him under the law.

9. Upon the occurrence of any defaultby the applicant under the applicable provi-sions of this agreement, in addition to anyand all other rights and remedies which theCommissioner may have hereunder, orunder any other applicable law, or other-wise, the Commissioner may reduce theclaim to judgment, otherwise enforce thesecurity interests by any available judicialprocedure, and exercise any other rightsand remedies the Commissioner may haveat law, or in equity, or otherwise, including,but not limited to the right to apply towardpayment of the obligations hereunder, with-out notice to the applicant, any sums whichmay then be held by the Commissioner forsaid applicant.

August 28, 2000 216 2000–35 I.R.B.

10. For purposes of this agreement,the term “default” means a material mis-representation of material fact or a failureto honor an obligation or warranty agreedto herein.

11. Except as otherwise provided inthis agreement, no provision of this agree-ment shall be deemed to constitute awaiver of any right that any party mayhave to recover any amount in accordancewith the laws, statutes, and regulations ofthe United States, nor shall any provisionof the agreement be deemed to be an ad-mission by any person, whether or not aparty hereto, that such person is liable forany federal income tax, or, if a foreigncorporation or nonresident alien, that suchperson is subject to the taxing jurisdictionof the United States, or if the Commis-sioner, that the facts upon which thisagreement is based are true and accurate.

12. This agreement and all of itsterms and conditions shall inure to thebenefit of, and be binding upon, the Com-missioner and the applicant, and their re-spective successors.

13. All notices, instructions and othercommunications (“Notices”) required orpermitted to be given, forwarded, or trans-mitted hereunder or necessary or conve-nient in connection herewith shall be inwriting and addressed to:

Internal Revenue Service CenterP.O. Box 21086DP 8731 FIRPTA UnitPhiladelphia, PA 19144-0586

or

To [the applicant: the applicant’s ad-dress etc]. and shall be deemed to havebeen given only when delivered person-ally or by private delivery service asdesignated by the Internal Revenue Ser-vice under I.R.C. §7502(f) (see Notice99-41, 1999-35 I.R.B. 325, or its succes-sor for a listing of private delivery ser-vices); or sent by first class U.S. mail

(postage pre-paid, by registered or certi-fied mail, return receipt requested); orsent by cable, telex, telegram or facsim-ile transmission (for example, tele-copier) and confirmed by letter mailedthe same day to the party receiving thenotice. Any notice sent by mail to orfrom a place outside the continentalUnited States shall be sent by air mail.Any notice sent by cable, telegram, ortelex may be addressed to any publishedcable, telegram, or telex address that theaddressee may have specified by noticeto all the signatories. Any signatorymay change the address or addresses towhich communications are to be di-rected to it by giving written notice ofsuch change to the persons above speci-fied in the manner provided above, pro-vided, however, that [the applicant] mayestablish or change an address to whichnotices are to be directed only if the newaddress is the address of [the applicant]itself or the address of a person withpower of attorney to act for [the appli-cant] with respect to the disposition ordistribution described in paragraph 2.

14. This agreement may not beamended, modified, superseded, or can-celed and none of the terms hereof may bewaived, except by a written instrumentexecuted by the Commissioner and theother party or parties hereto sought to becharged thereby. In the case of a waiverof the breach of any term contained in thisagreement in any one or more instances,the waiver shall be neither deemed to benor construed as a further or continuingwaiver of any such breach or term or anyother term contained in this agreement.

15. This agreement may be in anynumber of counterparts with all the coun-terparts together constituting one and thesame agreement.

16. The term “Commissioner” asused herein also shall include any succes-sors in office, and any and all agents or

employees thereof duty authorized for thepurpose.

17. This agreement shall not be bind-ing upon any signatory hereto until it hasbeen signed by the Commissioner and theCommissioner has received counterpartsthereof duly executed by each of the sig-natories whose names appear at the end ofthis agreement.

18. No provision of this agreementshall relieve any party or person of anyobligation or liability under the internalrevenue laws of the United States, exceptas specifically provided in this agreement.

19. This agreement is made withoutprejudice to the assertion and/or collec-tion of tax liabilities other than for any taximposed by section 871(b)(1) or 882(a)(1)of the Code on any gain realized by thetransferor on the disposition of the subjectUnited States real property interest.

20. This agreement shall be gov-erned, construed, and enforced in accor-dance with the laws of the United Statesof America and, where applicable, thelaws of the State of [insert applicablelocal jurisdiction.]

21. It is agreed that nothing hereinshall be construed to increase, decrease,or otherwise affect in any way the sub-stantive tax liability of the taxpayer underany other provision of the Code.

22. The Commissioner will not, inpart or in full, release, subordinate, or re-turn the security held with respect to thisagreement except upon the payment ofany liability determined to be due or uponthe deposit of an acceptable amount of es-timated tax or upon a showing to the satis-faction of the Commissioner that the lia-bility is zero.

2000–35 I.R.B. 217 August 28, 2000

I accept this Agreement Under penalties of perjury, I declare that I have examined this Agreement, related exhibits, sched-ules and statements and to the best of my knowledge and belief it is true, correct and complete.

Signature Signature of Signatory/Power of Attorney

Title

[Commissioner or person acting on behalf of the Commissioner]

SEC. 6. SECURITY

.01 Major types of security. There arefour major types of security acceptable tothe Service. These are:

1. Bond with surety or guarantor.The Service may accept as security

with respect to a transferor’s tax liability abond that is executed with a satisfactorysurety or guarantor. Only the followingpersons may act as surety or guarantor forthis purpose:

(a) A surety company holding acertificate of authority fromthe Secretary as an acceptablesurety on Federal bonds, aslisted in Treasury DepartmentCircular No. 570, publishedannually in the Federal Regis-ter on the first working day inJuly and as supplemented fromtime to time thereafter;

(b) A person who is engaged withinor without the United States inthe conduct of a banking, fi-nancing, or similar businessunder the principles of section1.864-4(c)(5) of the regulations,and who is subject to U.S. orforeign (local or national) regu-lation of such business, if thatperson is otherwise acceptableto the Service; and

(c) A person who is engaged withinor without the United States inthe conduct of an insurancebusiness that is subject to U.S. or

foreign (local or national) regu-lation, if that person is otherwiseacceptable to the Service.

2. Bond with collateral. The Servicemay accept as security with respect to atransferor’s tax liability a bond that is se-cured by acceptable collateral. All collat-eral must be deposited with a responsiblefinancial institution acting as escrowagent, or in the Service’s discretion, withthe Service. Only the following types ofcollateral are acceptable:

(a) Bonds, notes, or other publicdebt obligations of the UnitedStates, in accordance with therules of 31 CFR Part 225; and

(b) A certified, cashier’s, or trea-surer’s check, drawn on an en-tity acceptable to the Servicethat is engaged within or with-out the United States in theconduct of a banking, financ-ing, or similar business underthe principles of section 1.864-4(c)(5) of the regulations andthat is subject to U.S. or for-eign (local or national) regula-tion of such business.

3. Letter of credit. The Service mayaccept as security with respect to a trans-feror’s tax liability an irrevocable letter orcredit issued by an entity acceptable to theService that is engaged within or withoutthe United States in the conduct of abanking, financing, or similar businessunder the principles of section 1.864-4(c)(5) of the regulations and that is sub-

ject to U.S. or foreign (local or national)regulation of such business. The Servicewill accept a letter of credit from an entitythat is not engaged in a trade or businessin the United States only if such lettermay be drawn on an advising bank withinthe United States.

4. Guarantee. The Service may ac-cept as security with respect to a corpo-rate transferor’s tax liability a guaranteeof the payment of such liability. The Ser-vice will accept such a guarantee only if(a) the corporation providing the guaran-tee is a corporation, foreign or domestic,any class of the stock of which is regu-larly traded on an established securitiesmarket on the date of the transfer; (b) thecorporation providing the guarantee (1) isthe transferor or holds, directly or indi-rectly, more than 80 percent of the votingstock of the transferor and (2) is engagedin a trade or business within the UnitedStates; and (c) the corporation providingthe guarantee has net assets in the UnitedStates at least $25 million in excess of thevalue of the U.S. real property interestwhich is being disposed of.

5. Other forms of security. The Ser-vice, at its discretion, may in unusual cir-cumstances accept any additional form ofsecurity that it finds to be adequate.

.02 Sample Forms. Listed below aresample forms of security instruments thatin most circumstances are acceptable tothe Service, to be used when requesting awithholding certificate pursuant to section1.1445-3 of the regulations.

August 28, 2000 218 2000–35 I.R.B.

1. BOND WITH SURETY/GUARANTOR

OBLIGATION. The undersigned, , the Guarantor(s), is (or if more than one, jointly and severallyare) irrevocably held and firmly bound to pay the Internal Revenue Service the following portion of any tax (including any penalties,interest, and additions to tax) lawfully due and owing by any person listed below as a specified taxpayer as a result of the dispositionor distribution of all or part of the subject interest in U.S. real property listed below as the subject interest(s):

* * *

CONDITIONS OF THIS OBLIGATION. The Internal Revenue Service may demand payment of the secured liability or any portionthereof at any time and for any reason. If the secured liability or requested portion is paid when requested by the Internal RevenueService, this Guarantee shall be released to the extent so paid; otherwise, it shall remain in full force and effect until released in writ-ing by the Internal Revenue Service.

SUBJECT INTEREST(S):SPECIFIED TAXPAYER(S):SIGNED, SEALED, AND DATED THIS day of 20 ,

Guarantor [Seal]

Guarantor [Seal]

2000–35 I.R.B. 219 August 28, 2000

Corporate Guarantor

(Corporate Seal)Attest:

By: [Corporate Seal]

Surety/Guarantor

By: [Corporate Seal]Secretary Title

2. BOND WITH COLLATERAL

OBLIGATION: The undersigned, the Guarantor(s) (or if more than one, jointly and severally are) irrev-ocably held and firmly bound to pay the Internal Revenue Service the following portion of any tax (including any penalties, interest,and additions to tax) lawfully due and owing by any person listed below as a specified taxpayer as a result of the disposition or dis-tribution of all or part of the subject interest in U.S. real property listed below as the subject interest(s):

SECURITY: The above-bound Guarantor(s), in order to more fully secure the Internal Revenue Service in the payment of this oblig-ation, hereby pledge(s) as security therefor the following collateral:

* * *

CONDITIONS OF THE OBLIGATION. The Internal Revenue Service may demand payment of the secured liability or any portionthereof at any time and for any reason. If the Guarantor(s) fail(s) to pay the amount requested by the Internal Revenue Service. TheCommissioner and his designates are authorized and empowered, in their sole discretion, in whole or in part, to exercise the power ofattorney, contemporaneously executed and delivered to collect, sell, transfer, or assign the above described security and apply thefunds so received in full or partial satisfaction of any liability for taxes, interest, penalties, or additions to tax secured hereby. If thesecured liability or portion requested is paid by the Guarantor(s) when requested by the Internal Revenue Service, this security shallbe released to the extent so paid; otherwise, this obligation shall remain in full force and effect until released in writing by the Inter-nal Revenue Service.

SUBJECT INTEREST(S):SPECIFIED TAXPAYER(S):SIGNED, SEALED, AND DATED THIS day of 20 ,

Guarantor [Seal]

Guarantor [Seal]

Corporate Guarantor

By:Title [Corporate Seal]

(Corporate Seal)Attest:

SecretaryIndividual’s power of attorney

3. POWER OF ATTORNEY

I (we)... do hereby constitute and appoint the Commissioner (and his/her designate) as attorney for me (us) and in my (our) name tocollect, sell, assign, and transfer the following:

* * *

which has been deposited by me (us) as security for the faithful performance of my (our) bond, which is attached and incorporatedby reference, and I (we) agree that, in case of any default in the performance of any of the conditions and stipulations of the bond,my (our) said attorney shall have full power to collect said security or any part thereof, or to sell, assign to another for the purposes

of effecting either public or private sale, free from any equity of redemption and without appraisal or valuation notice and right toredeem being waived, and the proceeds of such sale for collection, in whole or in part, to be applied to the satisfaction of the liabilitysecured by the bond in such manner as may be deemed in the best interest of the United States. I (We) further agree that the author-ity herein granted is irrevocable.And for myself (ourselves), my (our several) administrators, executors, and assigns, I (we) hereby ratify and confirm whatever my(our) said attorney shall do by virtue of this power of attorney.In witness whereof, I (we), herein above named, have executed this instrument and affixed my (our) seal this day of

, 20 .

[SEAL]State of )

ssCounty of )

Before me, the undersigned, a notary public within and for the said county and State, personally appeared... [name(s) of Guaran-tor(s)], and acknowledged the execution of the foregoing power of attorney.

Witness my hand and notarial seal this day of , 20 .

Notary PublicMy Commission expires Corporation’s power of attorney

4. POWER OF ATTORNEY

, a corporation duly incorporated under the laws of the State of and having its principal office in the city of, State of in pursuance of a resolution of the Board of Directors, of said corporation passed on the day

of , 20 , a duly certified copy of which resolution is attached hereto, does hereby constitute and appoint the Com-missioner (and his designates) as attorney for said corporation, for and in the name of said corporation, to collect or to sell, assign,and transfer the following:

* * *

which has been deposited by it as security for the faithful performance of the bond, a copy of which is attached, and which is incor-porated by reference, and the undersigned agrees that, in case of any default in the performance of any of the conditions and stipula-tions of the bond, its said attorney shall have full power to collect said security or any part thereof, or to sell, assign, and transfer saidsecurity or any part thereof without notice, at public or private sale, or to transfer or assign to another for the purpose of effecting ei-ther public or private sale, free from any equity of redemption and without appraisal or valuation, notice and right to redeem beingwaived, and the proceeds of such sale for collection, in whole or in part, to be applied to the satisfaction of the liability secured bythe bond, in such manner as may be deemed in the best interests of the United States. The undersigned further agrees that the au-thority granted is irrevocable.

And said corporation, hereby for itself, its successors and assigns, ratifies and confirms whatever its said attorney shall do byvirtue of this power of attorney.

In witness whereof, , the corporation above named, by (Name and title of officer), duly au-thorized to execute this instrument has caused the seal of the corporation to be affixed hereto this day of 20 .

Attest:

(Corporate seal) SecretaryBy:

TitleState of )

ssCounty of )

Before me, the undersigned, a notary public within and for the said county and State, personally appeared (nameand title of officer), and for and in behalf of said corporation, acknowledged the execution of the foregoingpower of attorney.

Witness my hand and notarial seal this day of , 20 .[Notarial seal]

August 28, 2000 220 2000–35 I.R.B.

Notary PublicMy Commission expires

5. LETTER OF CREDIT

Place: Cable Address:Date:

IRREVOCABLE All drafts must be marked: Advising bank STANDBY Drawn under credit no. reference toLETTER OFCREDIT

Advising bank For account of

To beneficiaryInternal Revenue Service

950 L’Enfant Plaza South, S.W.Washington, DC 20224

Attention: Collection

Expiration date

This refers to preliminary cable adviceof this credit

Gentlemen:

We hereby establish our irrevocable letter of credit in your favor available by your drafts drawn at SIGHT and accompanied by doc-uments specified below: NONE

We hereby engage with you that Advising bank’s notificationall drafts drawn under and in compliance with the terms ofthis credit will be duly honoredif drawn and presented for paymentat this office on or before theexpiration date of this credit. Place, date, name, andThe advising bank is requested to signature of thenotify the beneficiary without advising bankadding their confirmation.

Sincerely yours,Authorized counter signature

Authorized signature

6. GUARANTEE

OBLIGATION: The undersigned, , the Guarantor(s), is (or if more than one, jointlyand severally are) irrevocably held and firmly bound to pay the Internal Revenue Service the following portion of any tax (includingany penalties, interest, and additions to tax) lawfully due and owing by any person listed below as a specified taxpayer as a result ofany disposition or distribution taxable by reason of sections 871(b)(1), 882(a)(1), and/or 897 of the Code as to all or part of the sub-ject interest in U.S. real property listed below as the subject interest:

CONDITIONS OF THIS OBLIGATION: The Internal Revenue Service may demand payment of the secured liability or any portionthereof at any time and for any reason. If the secured liability or requested portion is paid when requested by the Internal RevenueService, this Guarantee shall be released to the extent so paid; otherwise, it shall remain in full force and effect until released in writ-ing by the Internal Revenue Service.

SUBJECT INTEREST(S):2000–35 I.R.B. 221 August 28, 2000

SPECIFIED TAXPAYER(S):SIGNED, SEALED, AND DATED THIS day of 20 ,

Guarantor [Seal]

Corporate Guarantor

By:[Corporate Seal]

Attest:

Secretary

August 28, 2000 222 2000–35 I.R.B.

SEC. 7. INSTALLMENT SALES

01. In general. A transferee as a resultof a disposition of a U.S. real property in-terest occurring after December 31, 1984,is required to satisfy its withholdingobligation based on the amount realizedregardless of the amount of the paymentby the transferee. If the transferor is aperson other than a dealer and will reportgain from the disposition under section453 of the Code, a withholding certificatethat permits the transferee to withhold at areduced rate may be obtained under therules of this section. Any withholdingcertificate must provide for payment ofthe interest on the deferred tax liabilityunder section 453A(c) of the Code whenapplicable. No refund of the amountwithheld will be made unless such a with-holding certificate is obtained.

.02 Withholding certificate requests.With respect to installment sales subjectto withholding under section 1445(a) ofthe Code, the Service will entertain re-quests for certificates based on the trans-feree’s agreement to do the following:

1. Withhold and pay over 10 percent,or such lesser amount as determined bythe Commissioner, of any down payment,including any liabilities of the transferorassumed by the transferee or liabilities towhich the subject U.S. real property inter-est was subject immediately before andafter the transfer;

2. Withhold 10 percent, or suchlesser amount as may be determined bythe Commissioner, of each subsequentpayment and the interest on the deferredtax liability under section 453A(c) of theCode (these amount are in addition to anyother amount required to be withheldunder section 1441 or 1442);

3. Pay over all amounts withheld

using Forms 8288 and 8288-A, includingthereon the taxpayer identification num-ber of the transferor; and

4. Notify the Commissioner prior tothe disposition or encumbrance of thesubject U.S. real property interest, andupon such disposition or encumbrancepay over to the Service the amount re-maining to be withheld pursuant to sec-tion 1445(a).

5. If the transferor pledges the in-stallment obligation in exchange for all ora portion of the proceeds due on the in-stallment obligation and includes in grossincome under section 453A(d) of theCode the net proceeds of the secured in-debtedness, the transferee’s obligation towithhold under a reduced withholdingcertificate nevertheless continues until anamended withholding certificate is issuedeven though the transferor includes theproceeds in gross income.

SEC. 8. APPLICATION FORWITHHOLDING CERTIFICATESFOR AMOUNTS REQUIRED TO BEWITHHELD UNDER SECTION1445(e)

.01 In general. Pursuant to the provi-sions of sections 1.1445-5(c), (d), and (e)of the regulations, withholding under sec-tion 1445(e) of the Code may be reducedor eliminated pursuant to a withholdingcertificate issued by the Service in accor-dance with the rules of section 1.1445-6.A withholding certificate may be issued incases where adjusted withholding is ap-propriate, where the relevant taxpayersare exempt from U.S. tax, or where anagreement for the payment of tax is en-tered into with the Service. If a domesticpartnership’s transfer of a U.S. real prop-erty interest is subject to both section1445(e)(1) and section 1446, a withhold-

ing certificate will not be issued. See Rev.Proc. 89-31, 1989-1 C.B. 899. The term“relevant taxpayer” shall mean any for-eign person that will bear substantive in-come tax liability by reason of a transac-tion upon which withholding is requiredunder section 1445(e).

.02 Applications. An application for awithholding certificate pursuant to section1.1445-6 of the regulations must followthe format set forth in section 4.04 of thisrevenue procedure and provide the infor-mation described in sections 4.05 through4.10, with the following adjustments:

1. The application must include apreliminary item stating that it relates towithholding under section 1445(e) of theCode and specifying the applicable provi-sions of that section;

2. Item 2(b) of section 4.04 muststate whether the applicant is a relevanttaxpayer or a person required to withhold(and in what capacity that person is re-quired to withhold; for example, astrustee);

3. Item 2(c) of section 4.04 must pro-vide the required information with respectto each relevant taxpayer with respect towhich adjusted withholding is sought; and

4. Information concerning the basisfor the issuance of the certificate must beprovided with respect to each relevanttaxpayer.

.03 Installment sales. With respect toinstallment sales subject to withholdingunder section 1445(e) of the Code, theService will entertain requests for with-holding certificates based on the entity’sor the fiduciary’s agreement to do the fol-lowing:

1. Withhold and pay over a portion,in an amount determined appropriateunder section 1445(e) by the Commis-sioner, of any down payment received, in-

cluding any liabilities of the entity as-sumed by the transferee or liabilities towhich the subject U.S. real property inter-est was subject immediately before andafter the transfer;

2. Withhold a portion, in an amountdetermined appropriate under section1445(e) by the Commissioner, of eachsubsequent payment received (thisamount is in addition to any other amountrequired to be withheld under sections1441 or 1442);

3. Pay over all amounts withheldusing Forms 8288 and 8288-A, includingthereon the taxpayer identification num-ber of the interest holder subject to with-holding; and

4. Notify the Commissioner, prior tothe disposition or encumbrance of thesubject installment obligation, and uponsuch disposition or encumbrance pay overto the Service the amount remaining to bewithheld under section 1445(e).

SEC. 9. BLANKET WITHHOLDINGCERTIFICATE

.01 In general. The Commissionermay issue a withholding certificate (blan-ket withholding certificate) that excuseswithholding with respect to multiple dis-positions of U.S. real property interests bythe transferor or the transferor’s legal rep-resentative during a period of no morethan 12 months. A blanket withholdingcertificate may be issued if the transferorholding the U.S. real property interestsprovides a letter of credit as specified inparagraph 1 of this subsection .01 or aguarantee as specified in paragraph 2 ofthis subsection .01 and enters into anagreement with the Service that meets therequirements of paragraphs 3 and 4 of thissubsection .01.

1. For dispositions not subject to sec-tion 1445(e) of the Code, the transferormust provide an irrevocable letter ofcredit in an amount equal to the greater of(i) $100,000 or (ii) 10 percent of theamount to be realized on the projecteddispositions covered by the certificate.For dispositions subject to section1445(e), the transferor must provide an ir-revocable letter of credit in an amountequal to the greater of (i) $100,000 or (ii)the tax that section 1445(e) would requireto be withheld. The letter of credit mustmeet the requirements of paragraph 3 ofsubsection 6.01 of this revenue procedure

and otherwise must be acceptable to theCommissioner. In addition, the letter ofcredit by its terms must be valid until atleast the last day of the ninth month fol-lowing the date (including extensions oftime) on which a return will be required tobe filed with respect to the tax year inwhich the 12th month covered by thewithholding certificate falls. A letter ofcredit in the form specified in subsection6.02(5) in most circumstances will be ac-ceptable to the Service when requesting ablanket withholding certificate.

2. Alternatively, the Service may ac-cept as security for a blanket withholdingcertificate with respect to a corporatetransferor’s tax liability a guarantee of thepayment of such liability. The Servicewill accept such a guarantee only if (a) thecorporation providing the guarantee is acorporation, foreign or domestic, any classof the stock of which is regularly tradedon an established securities market on thedate of the transfer; (b) the corporationproviding the guarantee (1) is the trans-feror or holds, directly or indirectly, morethan 80 percent of the voting stock of thetransferor and (2) is engaged in a trade orbusiness within the United States; and (c)has gross assets in the United States atleast $25 million in excess of the U.S. realproperty interest being disposed of.

Additionally, the transferor corporationmust have filed United States corporateincome tax returns for the prior consecu-tive three years and the guarantee other-wise must be acceptable to the Commis-sioner. The guarantee by its terms mustbe valid until at least the last day of theninth month following the date (includingextensions of time) on which a return willbe required to be filed with respect to thetax year in which the 12th month coveredby the withholding certificate falls. Aguarantee in the form specified in subsec-tion 6.02(6) will be acceptable to the Ser-vice in most circumstances when request-ing a blanket withholding certificate.

3. The transferor must provide withthe letter of credit described in paragraph1 of this subsection or the guarantee de-scribed in paragraph 2 of this subsectionan executed tax payment and securityagreement securing the payment of taxwith respect to the projected dispositionscovered by the blanket withholding cer-tificate. The agreement must generallymeet the requirements of subsections 5.02

through 5.05 of this revenue procedure asmodified to take account of this subsec-tion 9.01 and otherwise must be accept-able to the Commissioner. The agreementmust also list all the U.S. real property in-terests covered by the agreement and givea brief description of each interest. In ad-dition, the agreement must contain theterms as to notification of specific dispo-sitions required by paragraph 4 of thissubsection 9.01 and must provide that, inthe event of a failure by the transferor toprovide such notification or to file a re-turn in a timely manner, deposit estimatedtax in a timely manner, or to pay tax in atimely manner, with respect to the gain onone or more of the dispositions coveredby the certificate, the Commissioner maydraw upon the letter of credit or demandpayment under the guarantee to satisfy thetransferor’s liability for any tax imposedby 871(b)(1) or 882(a)(1) of the Code,plus interest and penalties, if any, on anyone or more dispositions covered by thecertificate.

4. The agreement required by para-graph 3 of this subsection must state thatthe transferor agrees to notify the Com-missioner before or on the date of any dis-position of a U.S. real property interestcovered by the blanket certificate. Thenotice shall include the following infor-mation:

(a) The name, legal address, andtaxpayer identification number(to the extent required in regu-lations) of the transferor or thename and legal address of alegal representative of thetransferor with the power tobind the transferor with respectto the disposition;

(b) The name, legal address, andtaxpayer identification number(to the extent required in regu-lations) of the transferee or thename and legal address of alegal representative of thetransferee with the power tobind the transferee with re-spect to the disposition:

(c) A description of the U.S. realproperty interest to be trans-ferred and the anticipated dateof the transfer;

(d) The amount that would other-wise have been required to bewithheld on the transfer (10

2000–35 I.R.B. 223 August 28, 2000

percent of the amount realizedunreduced by the maximumtax calculation or for any otherreason);

(e) The cumulative total ofamounts that would otherwisehave been required to be with-held with respect to disposi-tions (i) which have alreadytaken place or are scheduled totake place prior to the disposi-tion with respect to which no-tice is being given and (ii) withrespect to which the Commis-sioner has not sent the noticedescribed in subsection .02(l)below;

(f) The amount of the original let-ter of credit provided or theamount the guarantor is boundto pay the Service under theguarantee; and

(g) A copy of the transferor ’swithholding certificate, or ifthe application is pending, acopy of the withholding cer-tificate application.

An agreement in the form prescribedby subsection 5.06 of this revenue proce-dure in most cases will be acceptable tothe Service for purposes of paragraphs 3and 4 of this subsection 9.01, with thefollowing modifications: (i) The formshould reflect and describe, as the “sub-ject interests,” the projected dispositionsto be covered by the blanket withholdingcertificate to which the agreement willrelate, (ii) paragraph 2 of the formshould be modified to state that theagreement is entered into in connectionwith an application for a blanket with-holding certificate and will extend to alldispositions covered by the blanket with-holding certificate, (iii) the third sen-tence of paragraph 2 should be revised toread “Security for the payment of suchliability is provided by an irrevocableletter of credit in the amount of in ac-cordance with the requirements of sub-section 9.01(1) of Rev. Proc. 2000–35 orby a guarantee in accordance with the re-quirements of subsection 9.01(2) of Rev.Proc. 2000–35,” (iv) a new paragraphshould be added to the form (designatedas paragraph 3, with the other paragraphsbeing renumbered accordingly), contain-ing the terms of paragraph 4 of this sub-section 9.01, and (v) paragraph 5 of the

form (paragraph 6 as renumbered)should be revised to read:

“6. In the event of any failure by thetransferor or the transferor’s legal repre-sentative (i) to notify the Commissionerproperly, in accordance with paragraph4, of a disposition of a U.S. real propertyinterest covered by this agreement andthe blanket withholding certificate towhich it relates, or (ii) to file a return in atimely manner, to deposit estimated taxin a timely manner, or to pay tax in atimely manner, with respect to the gainon one or more dispositions covered bythis agreement and such certificate, theCommissioner may draw upon the letterof credit provided or the guarantee as re-lated security under this agreement infull to the extent of the tax imposed bysection 871(b)(1) or section 882(a)(1) ofthe Code on any one or more disposi-tions covered by this agreement and suchcertificate, plus interest and additions totax, if any. This amount shall be in addi-tion to any other civil or criminal penal-ties that may apply with respect to theapplicant’s use of the withholding cer-tificate in violation of the terms thereof.”

.02 Withholding certificates—Provi-sions. A withholding certificate issued bythe Commissioner under this section willstate that no withholding is required withrespect to any disposition of a U.S. realproperty interest by the applicant pro-vided that (1) before the date of the trans-fer, the Commissioner does not providenotice to the person who would otherwisebe required to withhold (discussed inparagraph 1 below) that such withholdingis required, and (2) the person who wouldotherwise be required to withhold timelyprovides the information and material de-scribed in paragraph 2 below and the dis-position as consummated does not materi-ally fail to correspond to the informationso provided.

1. If one of the following conditionsoccurs, the Commissioner will providenotice to the applicant, and to the personrequired to withhold, that withholding isrequired despite the prior issuance of awithholding certificate:

(a) The applicant’s letter of creditor amount under the guarantee,in light of prior dispositions, isnot sufficient to cover theamount otherwise required tobe withheld on the transfer, or

(b) The applicant has otherwiseviolated the provisions of thissection.

2. To be exempt from withholdingtax liability, the person that would other-wise be required to withhold must, beforeor on the day of the closing of a transac-tion, provide a statement to the Commis-sioner containing the following informa-tion and material:

(a) The name, legal address, andtaxpayer identification number(to the extent required in regu-lations) of the transferee or thename and legal address of alegal representative of thetransferee with the power tobind the transferee with respectto the acquisition;

(b) The name, legal address, andtaxpayer identification number(to the extent required in regu-lations) of the transferor or thename and legal address of alegal representative of thetransferor with the power tobind the transferor with re-spect to the acquisition;

(c) A description of the acquiredU.S. real property interest andthe anticipated date of the ac-quisition;

(d) The total contract price of theacquired U.S. real property in-terest; the amount of liabilities,if any, to be assumed by thetransferee; and the amount ofliabilities, if any, to which theproperty is to be acquired issubject; and

(e) A copy of the transferor ’swithholding certificate.

.03 Copy of security agreement. TheCommissioner will, upon request, providethe transferor with a copy of a securityagreement submitted pursuant to para-graph 9.01(2) executed by the Commis-sioner, but such an executed copy is notneeded to establish the validity of theblanket withholding certificate for pur-poses of the subject disposition. Providedthat notice is not given by the Commis-sioner under section 9.02(1), and pro-vided that the transferee timely providesthe required information and materials,the withholding certificate remains valid.

.04 Consequences of failure to notify.In the event of any failure by the trans-

August 28, 2000 224 2000–35 I.R.B.

feror or the transferor’s legal representa-tive to notify the Commissioner properly,in accordance with section 9.01(3), of adisposition of a U.S. real property inter-est, or to file a return in a timely manner,to deposit estimated tax in a timely man-ner, or to pay tax in a timely manner, withrespect to the gain on one or more dispo-sitions covered by the blanket withhold-ing certificate, the letter of credit pro-vided under section 9.01(l) or theguarantee provided under section 9.01(2)may be drawn upon in full to the extent ofthe tax imposed by section 871(b)(1) orsection 882(a)(1) of the Code, plus inter-est and additions to tax, if any, on any oneor more dispositions covered by the blan-ket withholding certificate. This amountshall be in addition to any other civil orcriminal penalties that may apply with re-spect to the applicant’s use of the with-holding certificate in violation of theterms thereof.

SEC. 10. AUTHORIZEDREPRESENTATIVE

In any situation covered by this rev-enue procedure in which a person acts foror is designated as a legal representativeof either a transferor or a transferee, suchperson must be authorized to so act by apower of attorney on file with the Com-missioner. Form 2848 may be used forthis purpose.

SEC. 11. INQUIRIES

Address all inquiries to:

Internal Revenue Service CenterP.O. Box 21086Drop Point 8731 FIRPTA Unit Philadelphia, PA 19114-0586

SEC. 12. EFFECTIVE DATE

This revenue procedure is effective forall applications for withholding certifi-cates submitted after September 27, 2000.

SEC. 13. EFFECT ON OTHERDOCUMENTS

Rev. Proc. 88-23, 1988-1 C.B. 787, issuperseded as of the date Rev. Proc. 2000-35 is effective.

SEC. 14. PAPERWORKREDUCTION ACT

The collections of information con-tained in this revenue procedure havebeen reviewed and approved by the Of-fice of Management and Budget in accor-dance with the Paperwork Reduction Act(44 U.S.C. 3507) under control number1545-1697.

An agency may not conduct or sponsor,and a person is not required to respond to,a collection of information unless the col-lection of information displays a validOMB control number.

The collections of information are con-tained in sections 4 through 9 of this rev-enue procedure. This information will beused to enable the Commissioner to deter-mine whether to issue a withholding cer-tificate to an applicant which reduces oreliminates withholding under section

1445 of the Code. The likely respondentsare individuals, corporations, partner-ships, and foreign governments.

The estimated total annual reportingand/or recordkeeping burden is 60,000hours.

The estimated average annual burdenper applicant is 10 hours. The estimatednumber of applicants is 6,000.

The estimated number of responses ison occasion.

Books and records relating to a collec-tion of information must be retained aslong as their contents may become mater-ial in the administration of any internalrevenue law. Generally, tax returns andtax return information are confidential, asrequired by 26 U.S.C. 6103.

DRAFTING INFORMATION

The principal authors of this revenueprocedure are Sharon J. Bomgardner, for-merly of the Office of Associate ChiefCounsel (International), and Robert W.Lorence, of the Office of Associate ChiefCounsel (International). For further infor-mation, contact Tom Logan of Foreign Pay-ments, Pre-filing and Technical Guidanceat (202) 283-8410 (not a toll-free number).

2000–35 I.R.B. 225 August 28, 2000

August 28, 2000 226 2000–35 I.R.B.

Reporting Requirements forSection 527 Organizations

Announcement 2000–72

The Internal Revenue Service is con-sidering the issuance of a revenue rulingaddressing questions concerning the re-porting requirements for political organi-zations described in § 527 of the InternalRevenue Code.

BACKGROUND

On July 1, 2000, Pub. L. 106–230 wasenacted, amending § 527 of the Code.The new law imposes three reporting anddisclosure requirements on political orga-nizations described in § 527: (1) an initialnotice of status, (2) periodic reports ofcontributions and expenditures, and(3) annual returns.

The following proposed revenue rulingprovides questions and answers relatingto the reporting and disclosure require-ments for political organizations de-scribed in § 527. Because the new lawwas effective upon enactment, § 527 or-ganizations may rely upon this proposedrevenue ruling until the revenue ruling isfinalized and issued.

The Service is soliciting public com-ment on the proposed revenue ruling.The Service asks for comments not onlyon the questions and answers posed in theproposed revenue ruling, but also on otherquestions concerning the reporting re-quirements for § 527 organizations.

Public comments should be submittedin writing on or before September 8,2000. The Service plans to finalize therevenue ruling as soon as possible afterthis date. Comments should be sent to thefollowing address:

Internal Revenue Service1111 Constitution Ave, NWWashington, DC 20224Attn: Judith E. Kindell

T:EO:RA:T:P, Room 6033Comments may also be sent electronicallyvia the Internet to *TE/GE-Exempt-1@irs.gov.

DRAFTING INFORMATION

The principal author of this announce-ment is Judith E. Kindell of the ExemptOrganizations Technical Division. For

further information regarding this an-nouncement contact Judith E. Kindell on(202) 622-6494 (not a toll-free call).

PROPOSED REVENUE RULINGISSUES

On July 1, 2000, Pub. L. 106-230 wasenacted, amending § 527 of the Code.The new law imposes three reporting anddisclosure requirements on political orga-nizations described in § 527: (1) an initialnotice of status, (2) periodic reports ofcontributions and expenditures, and(3) annual returns. This revenue rulingprovides questions and answers relatingto the reporting and disclosure require-ments for political organizations de-scribed in § 527.

QUESTIONS AND ANSWERS

I. Notice of Status

1. Q. What is the notice of status require-ment for an organization described in§ 527?A. Under § 527(i)(1)(A), a political or-

ganization is required to give notice bothelectronically and in writing to the Ser-vice that it is a political organization de-scribed in § 527.2. Q. What is the required notice form?

A. The required notice form isForm 8871, Political Organization Noticeof Section 527 Status.3. Q. Are all political organizations re-

quired to file the Form 8871 notice?A. No. Under § 527(i)(5) and

§ 527(i)(6), three types of organizationsare not required to file the Form 8871 no-tice:

(a) Persons required to report underthe Federal Election Campaign Actof 1971 (FECA) as a political com-mittee (see 2 U.S.C. § 431(4));

(b) Organizations that reasonably an-ticipate that their annual gross re-ceipts will always be less than$25,000; and

(c) Organizations described in§ 501(c) that are subject to§ 527(f)(1) because they havemade an “exempt function” expen-diture.

All other political organizations, includ-ing state and local candidate committees,are required to file the notice.

4. Q. Is an organization that financesboth federal and non-federal electionactivity required to file the Form 8871notice?A. As a general rule, any political orga-

nization (whether or not separately incor-porated) that is organized and operated foran exempt function under § 527(e)(2) (seeQ&A-15) must file Form 8871 unless itmeets one of the exceptions discussedabove (see Q&A-3), one of which is beingrequired to report under FECA as a politi-cal committee. An organization that fi-nances election activity (within the mean-ing of FECA) for both federal andnon-federal elections may establish a polit-ical committee to receive contributions andmake expenditures for both federal andnon-federal election activity. In that case,the organization must register as a politicalcommittee and comply with the FECAcontribution limitations and reporting re-quirements. 11 C.F.R. 102.5(a)(1)(ii).Such an organization is, therefore, not re-quired to file Form 8871.

If, however, the organization sets upseparate accounts to conduct its federalelection activity and its non-federal elec-tion activity, the federal account is treatedas a separate political committee that isrequired to register and report underFECA. 11 C.F.R. 102.5(a)(1)(i). Thetreatment of the federal account as a sepa-rate committee is consistent with the or-ganizational requirements for political or-ganizations under § 527, as discussedbelow in Q&A-10. Accordingly, the sep-arate federal account is not required to fileForm 8871. However, a separate non-federal account is not required to registerand report under FECA as a political com-mittee. Therefore, a separate non-federalaccount that is described in § 527(e)(1) isrequired to file Form 8871.5. Q. Are political organizations that are

required to report to state or local elec-tion agencies excepted from the noticerequirement?A. Section 527(i) does not except po-

litical organizations that file reports withstate or local election agencies from thenotice of status requirement. Therefore,unless the political organization meetsone of the exceptions discussed above inQ&A-3, it must file Form 8871 with theService.

Part IV. Items of General Interest

2000–35 I.R.B. 227 August 28, 2000

6. Q. When must the organization fileForm 8871?A. Form 8871 must be filed within 24

hours after the date on which the organiza-tion was established. See Notice 2000–36,2000–33 I.R.B. 173, for information aboutfiling requirements for organizations in ex-istence before July 30, 2000.7. Q. What are the methods of filing

Form 8871?A. Section 527(i)(1)(A) requires that

the organization file Form 8871 both elec-tronically and in writing. Therefore, themethods for filing Form 8871 are as fol-lows:

(a) Electronically via the Internal Rev-enue Service Internet Web Site(IRS Web Site) at www.irs.gov./bus_info/eo/pol-file.html, and

(b) In writing by sending a signedcopy of Form 8871 to the InternalRevenue Service Center, Ogden,UT 84201. An organization canfill in and print out the form fromthe IRS Web Site.

8. Q. Must an organization take any addi-tional steps before filing Form 8871?A. Before filing Form 8871, the politi-

cal organization must have its own em-ployer identification number (EIN) evenif it has no employees. To obtain an EIN,an organization must file Form SS-4, Ap-plication for Employer IdentificationNumber, with the Service. The organiza-tion may obtain the EIN either by tele-phone or by mail. If the organization ap-plies by telephone, it can obtain the EINimmediately.9. Q. What information must be provided

in the Form 8871 notice?A. Under § 527(i)(3), an organization

must provide in its Form 8871 notice itsname and address (including any businessaddress, if different) and electronic mail-ing address; its purpose; the names andaddresses of its officers, highly compen-sated employees, contact person, custo-dian of records, and members of its Boardof Directors; and the name and address of,and relationship to, any related entities(within the meaning of § 168(h)(4)).10. Q. Does § 527(i) change the organi-

zational requirements for § 527 orga-nizations?

A. No. Section 527 does not require anorganization to have formal organizationaldocuments, such as articles of incorpora-tion. Under § 1.527–2(a)(2) of the Income

Tax Regulations, a political organizationmeets the organizational test if it is orga-nized for the primary purpose of carryingon exempt function activities as defined in§ 527. The regulation specifically statesthat the organization need not be formallychartered or established as a corporation,trust, or association. For example, a sepa-rate bank account in which political cam-paign funds are deposited and disbursedonly for political campaign expenses canqualify as a political organization. SeeRev. Rul. 79–11, 1979–1 C.B. 207.

The requirement that a § 527 organiza-tion include the names and addresses ofits officers, highly compensated employ-ees, and members of its Board of Direc-tors does not change the organizationaltest for § 527. Section 527(i) does not re-quire political organizations to be orga-nized with Boards of Directors, officersand highly compensated employees. Itmerely requires the organization to pro-vide their names and addresses if it is soorganized.11. Q. What is a “related entity” for this

purpose?A. An entity is a “related entity” with-

in the meaning of § 168(h)(4), which pro-vides that an organization is related to an-other entity as follows:

(a) The two entities have (i) significantcommon purposes and substantialcommon membership or (ii) di-rectly or indirectly substantial com-mon direction or control; or

(b) Either entity owns (directly orthrough one or more entities) a 50percent or greater interest in thecapital or profits of the other. Forthis purpose, entities treated as re-lated entities under (a) above shallbe treated as one entity.

12. Q. What are “highly compensatedemployees” for this purpose?

A. Highly compensated employees forthis purpose are the five employees (otherthan officers and directors) who are ex-pected to have the highest annual com-pensation over $50,000. Compensationincludes both cash and noncash amounts,whether paid currently or deferred, for the12-month period that began with the datethe organization was formed (if the orga-nization was formed after June 30, 2000).If the organization was already in exis-tence on June 30, 2000, it must use the ac-counting period that includes July 1,

2000.13. Q. What if an organization described

in § 527(e)(1) does not file theForm 8871 notice?

A. An organization described in§ 527(e)(1) must file Form 8871 unless itis an organization described in § 527(i)(5)or § 527(i)(6) (see Q&A-3). If the organi-zation fails to file Form 8871 on a timelybasis, § 527(i)(4) provides that, for anyperiod during which the organization failsto satisfy the notice requirement, the tax-able income of the organization includesits exempt function income (includingcontributions received, membership dues,and political fundraising receipts), minusany deductions directly connected withthe production of that income. For pur-poses of computing its taxable income,the organization may not deduct its ex-empt function expenditures because§ 162(e) denies a deduction for politicalcampaign expenditures.

Under § 527(b), the tax is computed bymultiplying the organization’s taxable in-come (including its net investment in-come) by the highest corporate tax rate,currently 35 percent. The organizationmust file a Form 1120-POL to report theincome and pay the tax.14. Q. When is an organization described

in § 527(e)(1)?A. An organization is described in

§ 527(e)(1) if it meets both the organiza-tional and operational tests, that is, it mustbe organized and operated primarily forthe purpose of accepting contributions ormaking expenditures for an exempt func-tion under § 527(e)(2). See § 1.527–2(a).15. Q. What is an “exempt function”

under § 527(e)(2)?A. “Exempt function” means, under

§ 527(e)(2), influencing or attempting toinfluence the selection, nomination, elec-tion, or appointment of any individual toany federal, state, or local public office oroffice in a political organization, or theelection of Presidential or Vice-Presiden-tial electors, whether or not such individ-ual or electors are selected, nominated,elected, or appointed.16. Q. Is the Form 8871 notice publicly

available?A. Yes. Under § 6104(d), Form 8871

(including any supporting papers), andany letter or other document the Serviceissues with regard to Form 8871, will beopen to public inspection. Copies of

August 28, 2000 228 2000–35 I.R.B.

Form 8871 that have been filed are cur-rently available at the IRS Web Site. Inaddition, the organization is required tomake a copy of these materials availablefor public inspection during regular busi-ness hours at the organization’s principaloffice and at each of its regional or districtoffices having at least three paid employ-ees in the same manner as applications forexemption of § 501(c) organizations aremade available.17. Q. What is the penalty on the organi-

zation for failure to comply with thepublic inspection requirement?

A. Under § 6652(c)(1)(D), a penalty of$20 per day will be imposed on any per-son with a duty to comply with the publicinspection requirement for each day afailure to comply continues.

II. Periodic Reporting Requirements

18. Q. What are the periodic reporting re-quirements imposed upon political or-ganizations?

A. Under § 527(j), a political organiza-tion is required to periodically report con-tributions to the organization and expen-ditures made by the organization.19. Q. What is the required periodic re-

porting form?A. The required periodic reporting

form is Form 8872, Political OrganizationReport of Contributions and Expendi-tures.20. Q. When are political organizations

required to file periodic reports onForm 8872?

A. Under § 527(j)(2), political organi-zations that accept contributions or makeexpenditures for an exempt functionunder § 527 (see Q&A-15) during a cal-endar year are required to file periodic re-ports on Form 8872, beginning with thefirst month or quarter in which they ac-cept contributions or make expenditures.In addition, organizations that make con-tributions or expenditures with respect toan election for federal office (as definedin § 527(j)(6)) may be required to file pre-election reports for that election.21. Q. Are all political organizations re-

quired to file periodic reports onForm 8872?

A. No, § 527(j)(5) provides that someorganizations are not subject to this re-quirement. The organizations exceptedfrom the filing requirements are as fol-lows:

a) Organizations excepted from the re-quirement to file a Form 8871 (seeQ&A-3);

b) Political committees of a state orlocal candidate; and

c) State and local committees of politi-cal parties.

All other political organizations, in-cluding other state and local political or-ganizations, are subject to the reportingrequirements of § 527(j), even if they filereports with state or local election agen-cies.22. Q. How often must the Form 8872 be

filed?A. Political organizations subject to

the periodic reporting requirement maychoose to file Form 8872 on a monthlybasis or on a quarterly/semi-annual basis,but it must file on the same basis for theentire calendar year.23. Q. When is Form 8872 due in a non-

election year when organizations electto file on a monthly basis?

A. Pursuant to § 527(j)(2)(B), politicalorganizations that choose to file monthlymust file Form 8872 reports not later thanthe 20th day after the end of the month,which must be complete as of the last dayof the month. The monthly report for theDecember activity is included in the year-end report due not later than January 31 ofthe following year. If any due date fallson a Saturday, Sunday or legal holiday,the organization may file the report on thenext business day.24. Q. When is Form 8872 due during an

election year when organizations electto file on a monthly basis?

A. Pursuant to § 527(j)(2)(B), in anyyear in which a regularly scheduled gen-eral election is held, the organization shallnot file the reports regularly due in No-vember and December (i.e., the monthlyreports for activity in October and No-vember). Instead, the organization mustfile a Form 8872 report not later than 12days before the general election (or 15days before the general election if postedby registered or certified mail) that con-tains information through the 20th day be-fore the general election. The organiza-tion must also file a report no more than30 days after the general election whichshall contain information through the 20thday after the election. The monthly reportfor the December activity is included inthe year-end report due not later than Jan-

uary 31 of the following year. If any duedate falls on a Saturday, Sunday or legalholiday, the organization may file the re-port on the next business day.25. Q. When is Form 8872 due in a non-

election year when organizations electto file on a quarterly/semi-annualbasis?

A. Pursuant to § 527(j)(2)(A), politicalorganizations that choose not to filemonthly must file semi-annual reports innon-election years. These reports are duenot later than July 31 for the first half ofthe year and, for the second half of theyear, not later than January 31 of the fol-lowing year. If any due date falls on aSaturday, Sunday or legal holiday, the or-ganization may file the report on the nextbusiness day.26. Q. When is Form 8872 due during an

election year when organizations electto file on a quarterly/semi-annualbasis?

A. Pursuant to § 527(j)(2)(A), in anelection year, these organizations mustfile quarterly reports due not later than the15th day after the last day of the quarter,except that the return for the final quartershall be due not later than January 31 ofthe following year. In addition, the orga-nization must file pre-election reports forany election for federal office with re-spect to which the organization makes acontribution or expenditure. These re-ports shall be filed not later than 12 daysbefore the election (15 days before ifposted by registered or certified mail) andmust contain information through the20th day before the election. The organi-zations must also file a post-general elec-tion report due not later than 30 days afterthe general election and containing infor-mation through the 20th day after theelection. If any due date falls on a Satur-day, Sunday or legal holiday, the organi-zation may file the report on the nextbusiness day.27. Q. What is an election for purposes of

the reporting deadlines under§ 527(j)?

A. For purposes of determining whatis an election year and what elections trig-ger the pre-election and post-general elec-tion reports, § 527(j)(6) provides that an“election” is a general, special, primary,or runoff election for a federal office; aconvention or caucus of a political partywith authority to nominate a candidate for

2000–35 I.R.B. 229 August 28, 2000

federal office; a primary election to selectdelegates to a national nominating con-vention of a political party; or a primaryelection to express a preference for thenomination of individuals for election tothe office of President. Thus, an electionfor purpose of these reporting deadlinesdoes not include elections that are purelystate or local elections. When an electioninvolves both candidates for federal officeand candidates for state or local offices, itis an election for purposes of the reportingdeadlines, but only those organizationsthat make contributions or expenditureswith respect to the candidates for federaloffice are required to file the pre-electionreports for those elections under§ 527(j)(2)(A)(i)(II). However, all reportsfiled under § 527(j) must contain informa-tion about the contributions and expendi-tures within the reporting period, regard-less of whether they were accepted ormade with respect to candidates for fed-eral, state or local office.28. Q. What is a general election?

A. A general election is either one ofthe following:

a) an election for federal office held ineven numbered years on the Tuesdayfollowing the first Monday in No-vember or

b) an election held to fill a vacancy ina federal office (i.e., a special elec-tion) that is intended to result in thefinal selection of a single individualto the office at stake. See 11 C.F.R.100.2(b).

29. Q. How will “election” under§ 527(j)(6) be interpreted?

A. The definition of “election” under§ 527(j)(6) is virtually identical to the defi-nition of “election” under FECA (2 U.S.C.§ 431(1)). Organizations may rely on FECinterpretation of the FECA definition in theabsence of further guidance from the Ser-vice. The FEC publishes reporting datesfor pre-election reports on its Web Site athttp://www.fec.gov/pages/refer.htm.30. Q. What must the Form 8872 reports

contain?A. The reports must include the name,

address, and (if an individual) the occupa-tion and employer, of any person to whomexpenditures are made that aggregate$500 or more in a calendar year and theamount of such expenditure. The reportsmust also include the name, address, and(if an individual) the occupation and em-

ployer, of any person that contributes inthe aggregate $200 or more in a calendaryear and the amount of such contribution.However, organizations are not requiredto report independent expenditures as de-fined in § 301 of FECA. Only expendi-tures made or contributions received afterJuly 1, 2000, that are not made or re-ceived pursuant to binding contracts en-tered into before July 2, 2000, must be re-ported.31. Q. What is an independent expendi-

ture under § 301 of FECA?A. An independent expenditure is an

expenditure by a person expressly advo-cating the election or defeat of a clearlyidentified candidate for federal officewhich is made without cooperation orconsultation with any candidate for fed-eral office, or any authorized committeeor agent of such candidate, and which isnot made in concert with, or at the requestor suggestion of, any candidate for federaloffice, or authorized committee or agentof such candidate. See 2 U.S.C.§ 431(17).32. Q. Where is the Form 8872 filed?

A. The report is filed by sending asigned copy of Form 8872 to the InternalRevenue Service Center, Ogden, UT84201. The form must be signed by anofficial authorized by the organization tosign the report.33. Q. What if a political organization

does not file the required Form 8872?A. Under § 527(j)(1), a political orga-

nization that does not file the requiredForm 8872 or which fails to include theinformation required on the Form 8872 issubject to a tax equal to the amount notdisclosed multiplied by the highest corpo-rate tax rate, currently 35 percent.34. A. Is the Form 8872 filed by political

organizations publicly available?A. Yes. Under § 6104(b) and

§ 6104(d)(6), Form 8872 will be madeavailable for public inspection by the Ser-vice. In addition, under § 6104(d)(1)(A),the organization is required to make acopy of these reports available for publicinspection during regular business hoursat the organization’s principal office andat each of its regional or district officeshaving at least three paid employees inthe same manner as applications for ex-emption of § 501(c) organizations aremade available. Pursuant to § 6104(b)and § 6104(d)(3)(A), contributor informa-

tion must be disclosed to the public.35. Q. What if the political organization

does not make its Form 8872 publiclyavailable?

A. Under § 6652(c)(1)(C), a penalty of$20 per day will be imposed on any per-son with a duty to comply with the publicinspection requirement for each day afailure to comply continues. The maxi-mum penalty that may be incurred for anyfailure to disclose any one report is$10,000.

III. Annual Return Requirements

36. Q. What political organizations arerequired to file annual income tax re-turns?

A. Political organizations that havetaxable income in excess of the $100 spe-cific deduction allowed under § 527 arerequired to file an annual income tax re-turn, the Form 1120-POL. In addition, fortaxable years beginning after June 30,2000, political organizations that have$25,000 or more in gross receipts for thetaxable year are also required to file theForm 1120-POL, without regard towhether they have taxable income.37. Q. When is the Form 1120-POL due?

A. The Form 1120-POL is due on orbefore the 15th day of the third monthafter the close of the organization’s tax-able year. § 6072(b). Thus, for a calendaryear taxpayer, Form 1120-POL is due onMarch 15 of the following year. If anydue date falls on a Saturday, Sunday orlegal holiday, the organization may filethe return on the next business day.38. Q. What political organizations are

required to file an annual informationreturn?

A. Political organizations that are re-quired under § 6012(a)(6) to file an in-come tax return are also required to fileForm 990 for taxable years beginningafter June 30, 2000. § 6033(g). Organi-zations with gross receipts less than$100,000 and assets of less than $250,000may file Form 990-EZ. Organizationswith gross receipts of less than $25,000are not required to file Form 990 orForm 990-EZ.39. Q. When is the Form 990 due?

A. The Form 990 (or Form 990-EZ) isdue on or before the 15th day of the fifthmonth after the close of the organization’staxable year. Thus, for a calendar year

taxpayer, Form 990 is due on May 15 ofthe following year. If any due date fallson a Saturday, Sunday or legal holiday,the organization may file the return on thenext business day.40. Q. What if the political organization

fails to file Form 1120-POL orForm 990?

A. A political organization that fails tofile a required Form 1120-POL orForm 900 or fails to include required in-formation on those returns is subject to apenalty of $20 per day for every day suchfailure continues. The maximum penaltyimposed regarding any one return is thelesser of $10,000 or 5 percent of the grossreceipts of the organization for the year.In the case of an organization havinggross receipts exceeding $1,000,000 forany year, the penalty is increased to $100per day with a maximum penalty of$50,000. § 6652(c)(1)(A).41. Q. Are the Form 1120-POL and

Form 990 filed by political organiza-tions publicly available?

A. Yes, the Form 1120-POL and theForm 990 filed for taxable years begin-ning after June 30, 2000 will be madeavailable for public inspection by the Ser-vice. § 6104(b). The political organiza-tion must make a copy of its returns avail-able for public inspection during regularbusiness hours at its principal office andany regional or district offices havingthree employees or more in the samemanner as annual information returns of§ 501(c) organizations are made avail-able. It must also provide a copy of thereturns to any person requesting a copy inperson or in writing without charge otherthan a reasonable charge for reproductionand postage in the same manner that§ 501(c) organizations provide copies oftheir annual returns. § 6104(d)(1). If anorganization’s returns are widely avail-able under § 301.6104(d)–3 of the Proce-dure and Administration Regulations(such as on the Internet), the organizationneed not respond to requests for copies.Returns only need to be made availablefor three years after filing. § 6104(d)(2).Contributor information must be dis-closed to the public. § 6104(d)(3)(A).42. Q. What if the political organization

does not make its Form 1120-POLand Form 990 publicly available?

A. A penalty of $20 per day will beimposed on any person with a duty to

comply with the public inspection re-quirement for each day a failure to com-ply continues. The maximum penalty thatmay be incurred for any failure to discloseany one report is $10,000. § 6652(c)-(1)(C).

IV. General

43. Q. Where can organizations getcopies of the various forms?

A. The various forms (Form 8871,Form 8872, Form 1120-POL, andForm 990) and their instructions are avail-able by calling 1-800-TAX-FORM (1-800-829-3676) or via the Internet at theIRS Web Site at www.irs.gov in the“Forms and Publications” section. Formore information, organizations may callthe Customer Service Center at 1-877-829-5500.

Consolidated Returns—Limitations on the Use of CertainCredits; Correction

Announcement 2000–73

AGENCY: Internal Revenue Service(IRS), Treasury.

ACTION: Correction to final regula-tions.

SUMMARY: This document contains acorrection to final regulations (T.D. 8884,2000–24 I.R.B. 1250) that were publishedin the Federal Register on Thursday, May25, 2000 (65 F.R. 33753) relating to con-solidated returns-limitations on the use ofcertain credits.

DATES: This correction is effective May25, 2000.

FOR FURTHER INFORMATION CON-TACT: Marie C. Milnes-Vasquez (202)622-7770 (not a toll-free number).

SUPPLEMENTARY INFORMATION:

Background

The final regulations that are the sub-ject of this correction are under section1502 of the Internal Revenue Code.

Need for Correction

As published, the final regulations con-tain an error that may prove to be mis-leading and are in need of clarification.

Correction of Publication

Accordingly, the publication of thefinal regulations (T.D. 8884), that werethe subject of F.R. Doc. 00-11901, is cor-rected as follows:

§1.1502–3 [Corrected]

On page 33758, column 1,§1.1502–3(d)(5), paragraph (iv) of theExample, line 6 from the bottom of theparagraph, the language “contributions tothe consolidated section” is corrected toread “contribution to the consolidatedsection”.

LaNita Van Dyke,Acting Chief, Regulations Unit

Office of Special Counsel(Modernization and Strategic Planning).

(Filed by the Office of the Federal Register on Au-gust 7, 2000, 8:45 a.m., and published in the issueof the Federal Register for August 8, 2000, 65 F.R.48379)

New Technologies in RetirementPlans; Correction

Announcement 2000–74

AGENCY: Internal Revenue Service(IRS), Treasury.

ACTION: Correction to final regulations.

SUMMARY: This document containscorrections to final regulations, (T.D.8873, 2000–9 I.R.B. 713) which werepublished in the Federal Register Tues-day, February 8, 2000 (65 F.R. 6001), re-lating to amendments to the regulationsgoverning certain notices and consents re-quired in connection with distributionsfrom retirement plans.

DATES: This correction is effective Feb-ruary 8, 2000.

FOR FURTHER INFORMATION CON-TACT: Catherine Livingston Fernandezat (202) 622-6030 (not a toll-free num-ber).

SUPPLEMENTARY INFORMATION:

Background

The final regulations that are subject tothese corrections are under sections402(f), 411(a)(11) and 3405(e)(10)(B) ofthe Internal Revenue Code.

August 28, 2000 230 2000–35 I.R.B.

2000–35 I.R.B. 231 August 28, 2000

Need for Correction

As published, the final regulations (T.D.8873) contain errors that may prove to bemisleading and are in need of clarification.

Correction of Publication

Accordingly, the publication of thefinal regulations (T.D. 8873), which werethe subject of F.R. Doc. 00-1897, is cor-rected as follows:

1. On page 6004, column 2, line 24from the top of the column, the language“I.R.B.) provides that, pending” is cor-rected to read “I.R.B. 413) provides that,pending”.

Sec. 35.3405–1 [Corrected]

2. On page 6008, column 1, Sec.35.3405–1 d-35, lines 4 and 5 of A, thelanguage, “and the annual notice de-

scribed in d-31) to a payee either on awritten paper” is corrected to read “ofSec. 35.3405–1T and the annual noticedescribed in d-31 of Sec. 35.3405–1T) toa payee either on a written paper”.

3. On page 6008, column 2, Sec.35.3405–1 d-36 A., the first line of Example5, the language, “Example 5. (I) Same factsas Example 1,” is corrected to read “Exam-ple 5. (i) Same facts as Example 1,’’.

4. On page 6008, column 2, Sec.35.3405–1 d-36A., the first line of Exam-ple 5 (ii), the language, “(ii) In this Exam-ple 5, Plan A does not” is corrected toread “(ii) In this Example 5, the plan ad-ministrator does not”.

Sec. 602.101 [Corrected]

5. On page 6008, column 3, instruc-tional Par. 7. and the table in Sec.602.101(b) are corrected to read as fol-

lows:Par. 7. In Sec. 602.101, paragraph (b) is

amended by revising the entries for1.402(f)–1 and 1.411(a)–11 in the table toread as follows:

Sec. 602.101 OMB Control numbers.

* * * * *(b) * * *

Dale D. Goode,Federal Register Liaison,

Assistant Chief Counsel (Corporate).

(Filed by the Office of the Federal Register on March30, 2000, 8:45 a.m., and published in the issue of theFederal Register for March 31, 2000, 65 F.R. 17148)

CFR part or section where Current OMBidentified and described control No.

* * * * *

1.402(f)–1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1545-1341 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1545-1632

* * * * *

1.411(a)–11 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1545-1471 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1545-1632

* * * * *

August 28, 2000 232 2000–35 I.R.B.

Under 31 Code of Federal Regulations,Part 10, an attorney, certified public ac-countant, enrolled agent or enrolled actu-ary, in order to avoid the institution orconclusion of a proceeding for his disbar-ment or suspension from practice beforethe Internal Revenue Service, may offerhis consent to suspension from such prac-tice. The Director of Practice, in his dis-cretion, may suspend an attorney, certi-fied public accountant, enrolled agent orenrolled actuary in accordance with theconsent offered.

Attorneys, certified public accountants,enrolled agents and enrolled actuaries areprohibited in any Internal Revenue Ser-

vice matter from directly or indirectly em-ploying, accepting assistance from, beingemployed by or sharing fees with, anypractitioner disbarred or suspended frompractice before the Internal Revenue Ser-vice.

To enable attorneys, certified public ac-countants, enrolled agents and enrolledactuaries to identify practitioners underconsent suspension from practice beforethe Internal Revenue Service, the Directorof Practice will announce in the InternalRevenue Bulletin the names and ad-dresses of practitioners who have beensuspended from such practice, their desig-nation as attorney, certified public ac-

countant, enrolled agent or enrolled actu-ary, and date or period of suspension.This announcement will appear in theweekly Bulletin at the earliest practicabledate after such action and will continue toappear in the weekly Bulletins for fivesuccessive weeks or for as many weeks asis practicable for each attorney, certifiedpublic accountant, enrolled agent or en-rolled actuary so suspended and will beconsolidated and published in the Cumu-lative Bulletin.

The following individuals have beenplaced under consent suspension frompractice before the Internal Revenue Ser-vice:

Announcement of the Consent Voluntary Suspension of Attorneys,Certified Public Accountants, Enrolled Agents, and Enrolled ActuariesFrom Practice Before the Internal Revenue Service

Date ofName Address Designation Suspension

Stoppenhagen, Larry Ft. Wayne, IN CPA April 14, 2000to

April 13, 2001

Chon, James N. Hollywood, CA CPA May 22, 2000to

May 21, 2003

Bleyer, Stephen A. Bala Cynwyd, PA CPA June 26, 2000 to

December 25, 2000

Knutson, Owen Ouray, CO CPA July 3, 2000to

January 2, 2003

Silverman, Richard E. Fayetteville, NY CPA August 1, 2000to

March 31, 2004

Holt, Jeffrey Little Rock, AR Enrolled October 1, 2000Agent to

March 31, 2003

Barbagallo, Joseph Newton, PA CPA October 15, 2000

toOctober 14, 2004

2000–35 I.R.B. 233 August 28, 2000

Under Section 330, Title 31 of theUnited States Code, the Secretary of theTreasury, after due notice and opportunityfor hearing, is authorized to suspend ordisbar from practice before the InternalRevenue Service any person who has vio-lated the rules and regulations governingthe recognition of attorneys, certifiedpublic accountants, enrolled agents or en-rolled actuaries to practice before the In-ternal Revenue Service.

Attorneys, certified public accountants,enrolled agents, and enrolled actuaries areprohibited in any Internal Revenue Ser-vice matter from directly or indirectly em-

ploying, accepting assistance from, beingemployed by or sharing fees with, anypractitioner disbarred or under suspensionfrom practice before the Internal RevenueService.

To enable attorneys, certified public ac-countants, enrolled agents and enrolledactuaries to identify such disbarred or sus-pended practitioners, the Director of Prac-tice will announce in the Internal RevenueBulletin the names and addresses of prac-titioners who have been suspended fromsuch practice, their designation as attor-ney, certified public accountant, enrolledagent or enrolled actuary, and the date of

disbarment or period of suspension. Thisannouncement will appear in the weeklyBulletin for five successive weeks or aslong as it is practicable for each attorney,certified public accountant, enrolled agentor enrolled actuary so suspended or dis-barred and will be consolidated and pub-lished in the Cumulative Bulletin.

After due notice and opportunity forhearing before an administrative lawjudge, the following individuals has beendisbarred from further practice before theInternal Revenue Service:

Announcement of the Disbarment and Suspension of Attorneys,Certified Public Accountants, Enrolled Agents, and Enrolled ActuariesFrom Practice Before the Internal Revenue Service

Name Address Designation Effective Date

Luebben, William Hot Springs, AR CPA February 11, 2000

Section 7428(c) Validation ofCertain Contributions MadeDuring Pendency of DeclaratoryJudgment Proceedings

This announcement serves notice to po-tential donors that the organization listedbelow has recently filed a timely declara-tory judgment suit under section 7428 ofthe Code, challenging revocation of itsstatus as an eligible donee under section170(c)(2).

Protection under section 7428(c) of theCode begins on the date that the notice of

revocation is published in the InternalRevenue Bulletin and ends on the date onwhich a court first determines that an or-ganization is not described in section170(c)(2), as more particularly set forth insection 7428(c)(1). In the case of individ-ual contributors, the maximum amount ofcontributions protected during this periodis limited to $1,000.00, with a husbandand wife being treated as one contributor.This protection is not extended to any in-dividual who was responsible, in whole orin part, for the acts or omissions of the or-ganization that were the basis for the re-

vocation. This protection also applies(but without limitation as to amount) toorganizations described in section170(c)(2) which are exempt from taxunder section 501(a). If the organizationultimately prevails in its declaratory judg-ment suit, deductibility of contributionswould be subject to the normal limitationsset forth under section 170.

Living Truth MinistriesAustin, TX

August 28, 2000 i 2000–35 I.R.B.

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.

Distinguished describes 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 Procedural 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

2000–35 I.R.B. ii August 28, 2000

Numerical Finding List1

Bulletins 2000–27 through 2000–34

Announcements:

2000–57, 2000–28 I.R.B. 1152000–58, 2000–30 I.R.B. 1352000–59, 2000–29 I.R.B. 1202000–60, 2000–31 I.R.B. 1492000–61, 2000–30 I.R.B. 1362000–62, 2000–30 I.R.B. 1372000–63, 2000–31 I.R.B. 1492000–64, 2000–31 I.R.B. 1492000–65, 2000–31 I.R.B. 1502000–66, 2000–32 I.R.B. 1602000–67, 2000–32 I.R.B. 1602000–68, 2000–32 I.R.B. 1612000–69, 2000–33 I.R.B. 1832000–70, 2000–34 I.R.B. 204

Court Decisions:

2068, 2000–28 I.R.B. 109

Notices:

2000–33, 2000–27 I.R.B. 972000–34, 2000–33 I.R.B. 1722000–35, 2000–29 I.R.B. 1182000–36, 2000–33 I.R.B. 1732000–37, 2000–29 I.R.B. 1182000–38, 2000–33 I.R.B. 1742000–39, 2000–30 I.R.B. 1322000–40, 2000–30 I.R.B. 1342000–41, 2000–33 I.R.B. 177

Proposed Regulations:

REG–209038–89, 2000–34 I.R.B. 191REG–105316–98, 2000–27 I.R.B. 98REG–116495–99, 2000–33 I.R.B. 179REG–108522–00, 2000–34 I.R.B. 187

Railroad Retirement Quarterly Rate:

2000–28, I.R.B. 1122000–29, I.R.B. 117

Revenue Procedures:

2000–28, 2000–27 I.R.B. 602000–29, 2000–28 I.R.B. 1132000–30, 2000–28 I.R.B. 1132000–31, 2000–31 I.R.B. 1462000–32, 2000–33 I.R.B. 1722000–34, 2000–34 I.R.B. 186

Revenue Rulings:

2000–32, 2000–27 I.R.B. 12000–33, 2000–31 I.R.B. 1422000–34, 2000–29 I.R.B. 1162000–35, 2000–31 I.R.B. 1382000–36, 2000–31 I.R.B. 1402000–37, 2000–32 I.R.B. 1562000–38, 2000–32 I.R.B. 1572000–39, 2000–34 I.R.B. 184

Treasury Decisions:

8886, 2000–27 I.R.B. 38888, 2000–27 I.R.B. 38889, 2000–30 I.R.B. 1248890, 2000–30 I.R.B. 1228891, 2000–32 I.R.B. 1528892, 2000–32 I.R.B. 1588893, 2000–31 I.R.B. 1438894, 2000–33 I.R.B. 162

1 A cumulative list of all revenue rulings, revenueprocedures, Treasury decisions, etc., published inInternal Revenue Bulletins 2000–1 through 2000–26is in Internal Revenue Bulletin 2000–27, dated July3, 2000.

August 28, 2000 iii 2000–35 I.R.B.

Finding List of Current Actions onPreviously Published Items1

Bulletins 2000–27 through 2000–34

Proposed Regulations:

FI–42–90Withdrawn byAnnouncement 2000–63, 2000–31 I.R.B. 149

IA–38–93Withdrawn byAnnouncement 2000–68, 2000–32 I.R.B. 161

REG–107644–98Corrected byAnnouncement 2000–66, 2000–32 I.R.B. 160

Revenue Procedures:

98–50Modified and superseded byRev. Proc. 2000–31, 2000–31 I.R.B. 146

98–51Modified and superseded byRev. Proc. 2000–31, 2000–31 I.R.B. 146

99–18Modified by Rev. Proc. 2000–29, 2000–28 I.R.B. 113

99–34Superseded by Rev. Proc. 2000–28, 2000–27 I.R.B. 60

Treasury Decisions:

8883Corrected by Announcement 2000–57, 2000–28 I.R.B. 115

1 A cumulative list of current actions on previouslypublished items in Internal Revenue Bulletins2000–1 through 2000–26 is in Internal RevenueBulletin 2000–27, dated July 3, 2000.

INTERNAL REVENUE BULLETINThe Introduction at the beginning of this issue 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 theSuperintendent of Documents 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,

detach entire page, and mail to the Superintendent of Documents, U.S. Government Printing Office, Washington, DC 20402. Pleaseallow two to six weeks, plus mailing time, for delivery.

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If you have comments concerning the format or production of the Internal Revenue Bulletin or suggestions for improving it, wewould be pleased to hear from you. You can e-mail us your suggestions or comments through the IRS Internet Home Page(www.irs.gov) or write to the IRS Bulletin Unit, OP:FS:FP:P:1, Room 5617, 1111 Constitution Avenue NW, Washington, DC 20224.

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