Rev. Rul. 72-517

Advice has been requested whether, under the circumstances described below, a taxpayer may file a Notice of Acquisition of Original or New Canadian Stock or Debt Obligation (Form 3779) on behalf of another United States person claiming an exclusion from interest equalization tax on the acquisition of such Canadian stock.

The taxpayer is a managing underwriter of a group of United States underwriters that participate from time to time, in the acquisition of original or new issues of Canadian stock or debt obligations. The taxpayer, as managing underwriter, acts in an agency capacity for the group.

Section 147.4-1(c)(1) of the Temporary Regulations provides, in part, that pursuant to applicable Executive Orders, the exclusion from tax provided in paragraph (a) of this section applies to any acquisition of original or new Canadian stock or debt obligations.

Section 147.4-1(c)(2) of the regulations provides that, except as otherwise provided in the instructions accompanying Form 3779, each United States person claiming an exclusion for an acquisition of original or new Canadian stock or debt obligations under section 4917(a) of the Internal Revenue Code of 1954 in accordance with Executive Order 11175, C.B. 1964-2, 460, as amended by Executive Order 11304, C.B. 1966-2, 482, shall file the notice of acquisition, (Form 3779) with the Internal Revenue Service Center, 310 Lowell Street, Andover, Massachusetts, 01812, and such notice shall set forth the information required by the form.

The definition of a person, as contained in the general instructions accompanying Form 3779, includes an underwriter who has purchased stock or debt obligations from the issuer or obligor or from another underwriter, with a view to the distribution through resale of such stock or debt obligations.

Section 147.4-1(d) of the regulations, pertaining to the acquisitions of Japanese issues provides, in part, that one managing United States member of an underwriting group may file the Notice of Acquisition (Part I) on behalf of the United States persons who are or may become members of the group.

Accordingly, it is held that the managing underwriter, acting on behalf of the underwriting group, may file Form 3779 for such group, in lieu of a separate filing by each underwriter that is a member of the underwriting group provided the Form 3779 or statement attached thereto identifies the United States persons who are members of the group.