Tax Notes logo
HOMETax Notes ResearchFederalIRS Guidancerevenue procedures

SERVICE WILL ACCEPT RULINGS REQUESTS ON ALL ASPECTS OF '86 ACT.

APR. 21, 1988

Rev. Proc. 88-18; 1988-1 C.B. 694

DATED APR. 21, 1988
DOCUMENT ATTRIBUTES
  • Institutional Authors
    Internal Revenue Service
  • Cross-Reference
    26 CFR 601.201
  • Index Terms
    revenue ruling
  • Jurisdictions
  • Language
    English
  • Tax Analysts Document Number
    Doc 88-4037
  • Tax Analysts Electronic Citation
    88 TNT 88-7
Citations: Rev. Proc. 88-18; 1988-1 C.B. 694

Rev. Proc. 88-18 1

SECTION 1. PURPOSE

To deal more efficiently with the need for guidance occasioned by the Tax Reform Act of 1986 and the Revenue Act of 1987, this revenue procedure provides conditions under which the Associate Chief Counsel (Technical and International) will consider requests for letter rulings pending the adoption of either temporary or final regulations. The objective of these changes is to expand the letter rulings process so that the Service will be able to issue rulings that previously would have been precluded by the provisions of section 5.07(2) of Rev. Proc. 88-1, 1988-1 I.R.B. 7.

SEC. 2.

01 Section 5.07(2) of Rev. Proc. 88-1 is modified to except from its conditions all Code sections added or revised by the Tax Reform Act of 1986 or the Revenue Act of 1987.

02 For Code sections described in section 2.01 above, the appropriate Branch in Technical and International will entertain all ruling requests and do its best to issue a ruling. However, the Service reserves in all cases the right not to rule when the issue cannot be properly resolved in advance of regulations.

03 When the Service has closed a regulations project (see, for example, the extensive list published in IR 86-167, dated December 9, 1986) or does not intend to open a regulations project (see list below), section 5.07 of Rev. Proc. 88-1 does not apply and the appropriate Branch will entertain all ruling requests unless the issue is covered by the no-rule provisions of section 7 of Rev. Proc. 88-1 or by Rev. Proc. 88-3, 1988-1 I.R.B. 29, or later updates of these two revenue procedures. The following is a partial list of Tax Reform Act of 1986 Code sections for which a tentative decision has been made not to open up a regulations project:

 IRC                 TRA-86                   SUBJECT

 

 SECTION(S)          SECTION(S)

 

 

 38, 46                212               Effective 15-year Carryback

 

                                         of Existing Carryforwards

 

                                         of Steel Companies

 

 

 38, 46                213               Effective 15-year Carryback

 

                                         of Existing Carryforwards

 

                                         of Qualified Farmers

 

 

 48(1)                 421               Extension of the Energy

 

                                         Investment Credit for

 

                                         Solar, Geothermal, Ocean

 

                                         Thermal, and Biomass

 

                                         Property

 

 

 49                    211               Repeal of Regular Investment

 

                                         Tax Credit

 

 

 51                    1701              Extension and Revision of

 

                                         Targeted Jobs Credit

 

 

 162                   142               Educational Travel

 

 

 168                   203 & 204         Transitional Rules for

 

                                         Property Depreciable Under

 

                                         Section 167(a) of the Code

 

 

 274                   142               Expenditures for Meals,

 

                                         Travel, and Entertainment

 

 

 301,302,1059          614(e)            Reduction of Stock Basis

 

                                         for Untaxed Portion of

 

                                         Extraordinary Dividends

 

 

 332,338               1804(e)(6)        80-percent Voting and

 

                       and (8)           Value Test

 

 361                   1804(g)           Recognition of Gain on

 

                                         Distribution of Property in a

 

                                         Reorganization

 

 

 451(f)                821               Utilities Using Accrual

 

                                         Accounting

 

 

 469                   502(c)            Transition Rule for Low-

 

                                         Income Housing

 

 

 832(b)                1021(c)           Inclusion in Income of 2

 

                                         Percent of Unearned Premium

 

                                         Reserve

 

 

 1092                  331               Straddles -- Year End Rule

 

 

 1254                  413               Gain From Disposition of

 

                                         Interest in Oil, Gas,

 

                                         Geothermal, or Other

 

                                         Mineral Properties

 

 

 1504(a)               1804(e)(4)        Exception for Alaska Native

 

                                         Corporations to File

 

                                         Consolidated Income Tax

 

                                         Returns Without Equity

 

                                         Ownership in Subsidiaries

 

 

04 The following is a partial list of Revenue Act of 1987 Code sections for which a tentative decision has been made not to open a regulation project:

 IRC                 RA-87               SUBJECT

 

 SECTION(S)          SECTIONS

 

 

 11(b)               10224(a)            Benefits of graduated

 

                                         corporate rates not allowed

 

                                         to personal service

 

                                         corporations

 

 

 21(b)               10101               Dependent care credit;

 

                                         overnight camps

 

 

 51(c)               10601               Targeted jobs credit;

 

                                         wages during labor

 

                                         disputes

 

 

 56(a)(6)            10202(d)            Minimum tax: Installment

 

                                         sales of certain property

 

 

 56(f)(2)            10243               Treatment of mutual life

 

                                         insurance co. policy holder

 

                                         dividends for purpose of book

 

                                         income

 

 

 81                  10201(b)(1)         Repeal of section 81,

 

                                         relating to vacation pay

 

 

 243                 10221               Reduction in

 

 245(c)(1)                               dividends received

 

 246(b)                                  deduction for

 

 246A(a)(1)                              dividends from

 

 805(a)(4)(B)                            corporations not 20

 

 854(b)(1)(A)                            percent owned

 

 861(a)(2)

 

 

 463                 10201(a)            Repeal of section 463,

 

                                         relating to vacation pay

 

 

 2001(C)             10401               5-year extension of existing

 

                                         rates; phaseout of benefits

 

                                         of existing rates and unified

 

                                         credit

 

 

 4121(e)(2)          10503               Extension of temporary

 

                                         increase in amount of tax

 

                                         imposed on coal producers

 

 

 4251(b)             10501               Extension of telephone excise

 

                                         tax

 

 

  * * *              10511               Fees for request for ruling,

 

                                         determination, and similar

 

                                         letters

 

 

05 The appropriate Branch Chief will discuss with taxpayers or their representatives whether a ruling concerning any Code section not listed above can be issued.

SEC. 3. USER FEE

01 Section 4.05 of Rev. Proc. 88-8, 1988-4 I.R.B. 22, as modified by Rev. Proc. 88-13, 1988-7 I.R.B. 7, provides generally that all requests for rulings received after February 1, 1988, must be accompanied by a check or money order, payable to the Internal Revenue Service, in the appropriate amount.

02 Each request for a ruling submitted under the instant revenue procedure and pursuant to Rev. Proc. 88-1 or Rev. Proc. 87-4, 1987-1 I.R.B. 33, should be sent to the Internal Revenue Service, Associate Chief Counsel (Technical and International), Attention: CC:IND:D:C, P.O. Box 7604, Ben Franklin Station, Washington, D.C. 20044; Requests may be hand-delivered to Room 6561, 1111 Constitution Avenue, N.W., Washington, D.C.

SEC. 4. EFFECT ON OTHER REVENUE PROCEDURES

Rev. Proc. 88-1 is modified.

Rev. Proc. 87-7, 1987-2 I.R.B. 15, is superseded.

SEC. 5. EFFECTIVE DATE

This revenue procedure is effective for requests received prior to May 16, 1988, the date of its publication in the Internal Revenue Bulletin, as well as to those received thereafter.

1 Also released as News Release IR-88-79, dated April 21, 1988.

DOCUMENT ATTRIBUTES
  • Institutional Authors
    Internal Revenue Service
  • Cross-Reference
    26 CFR 601.201
  • Index Terms
    revenue ruling
  • Jurisdictions
  • Language
    English
  • Tax Analysts Document Number
    Doc 88-4037
  • Tax Analysts Electronic Citation
    88 TNT 88-7
Copy RID