Rev. Proc. 64-29

Transitional rules will be promulgated in the final regulations under section 963 of the Internal Revenue Code of 1954 relating to the application of such section to taxable years of United States shareholders ending on or before the date such regulations are published in the Federal Register. The transitional rules will supplement rather than replace those set forth in Revenue Procedure 64-14, C.B. 1964-1 (Part 1), 676, (based on TIR-540 issued on January 29, 1964). Consequently, United States shareholders will still be afforded for such taxable years any exclusion under section 963 of the Code to which they would have been entitled under the provisions of the proposed regulations published in the Federal Register on December 20, 1963, with due regard to the election period prescribed by Revenue Procedure 64-14.

An election to receive a minimum distribution may be made with the return of the United States shareholder filed on or before the last day prescribed by law for filing such return, including any extensions of time under section 6081 of the Code. However, if that day occurs on or before the date the final regulations under section 963 of the Code are published in the Federal Register or within 90 days thereafter, the election may be made with an amended return filed on or before the 90th day after such publication. Any election made prior to the 90th day may be revoked or modified by a statement to that effect attached to a return (or an amended return) of the United States shareholder filed on or before that day. Unless so modified or revoked, elections made in accordance with the proposed regulations or in accordance with Revenue Procedure 64-14, shall be given effect.

For a taxable year of an electing United States shareholder ending on or before the date final regulations are published under section 963 of the Code, distributions otherwise made too late to count toward a minimum distribution for such year will nevertheless be deemed to qualify if they are made during the 90-day period immediately following such date and if they would have so qualified if made on the last day of that year, but only to the extent specified by the United States shareholder in a statement attached to its return (or an amended return) for such year filed prior to the expiration of such 90-day period. For purposes of determining the year of taxability, and the tax due thereon, such distributions shall be treated in the same manner as deficiency distributions to which section 963(e) of the Code applies. However, the United States shareholder will not be subject to interest or penalties solely by virtue of its failure to actually receive such distributions during the taxable year for which the election to receive a minimum distribution is made. Notwithstanding any of the foregoing, distributions will continue to count toward a minimum distribution if they would have qualified as such under the proposed regulations under section 963 of the Code or within the period prescribed by Revenue Procedure 64-14.

Revenue Procedure 64-14 is hereby supplemented.

¹ Based on Technical Information Release 600, dated May 25, 1964.