CHECKLIST PROVIDED FOR LIQUIDATING TRUST RULING REQUESTS.
Rev. Proc. 91-15; 1991-1 C.B. 484
- Institutional AuthorsInternal Revenue Service
- Cross-Reference
Rev. Proc. 82-58, 1982-2 C.B. 847
- Code Sections
- Index Termstrusts, investment
- Jurisdictions
- LanguageEnglish
- Tax Analysts Electronic Citation91 TNT 33-19
Amplified by Rev. Proc. 94-45
Rev. Proc. 91-15
SECTION 1. PURPOSE
This revenue procedure amplifies Rev. Proc. 82-58, 1982-2 C.B. 847, which specifies the conditions that must be present before the Internal Revenue Service will consider issuing advance rulings concerning the classification of an entity as a liquidating trust under section 301.7701-4 of the Procedure and Administration Regulations. This revenue procedure provides a checklist that must accompany all such requests.
SEC. 2. BACKGROUND
The Internal Revenue Service receives many requests for rulings in which the information identified as necessary in the appropriate revenue procedure is not provided. In such a case, it is necessary to get additional information from the taxpayer before the ruling request can be considered. This is time consuming for both Service personnel and the taxpayer and delays the issuance of the ruling letter.
Careful completion of this checklist will facilitate processing of a ruling request under section 301.7701-4 of the regulations because all of the information required by Rev. Proc. 82-58 will be in the request. This should avoid much needless delay and permit rulings to be issued sooner.
SEC. 3. CHECKLIST
See Appendix A.
SEC. 4. USE OF COPIES OR OTHER REPRODUCTIONS
Photocopies of this checklist from the Internal Revenue Bulletin or the Cumulative Bulletin may be used. If the I.R.B. or the C.B. is not available to copy, copies of this checklist may be obtained by calling T. Wayne Thomas at (202) 566-3129 (not a toll-free call). In addition, a reproduction of this checklist in substantially the same form as it appears in this revenue procedure may be used.
SEC. 5. COMMENTS OR INQUIRIES
Comments or inquiries regarding this revenue procedure should refer to its number and should be addressed to the Associate Chief Counsel (Technical), Attention: CC:P&SI:03, Internal Revenue Service, Washington, D.C. 20224.
SEC. 6. EFFECT ON OTHER REVENUE PROCEDURES
Rev. Proc. 82-58 is amplified.
SEC. 7. EFFECTIVE DATE
This revenue procedure is effective March 13, 1991, thirty days after this revenue procedure was published in the Internal Revenue Bulletin.
DRAFTING INFORMATION
The principal author of this revenue procedure is Charles Alton of the Office of Assistant Chief Counsel (Passthroughs and Special Industries). For further information regarding this revenue procedure, contact Mr. Alton on (202) 377-9660 (not a toll-free call).
APPENDIX A
CHECKLIST FOR CLASSIFICATION OF AN ENTITY AS A LIQUIDATING TRUST
NAME OF TAXPAYER ___________________________________________________
INSTRUCTIONS________________________________________________________
The Service will be able to respond more quickly to your ruling request if it is carefully prepared and complete. Please use this checklist to ensure that your request is in order.
Answer each question by circling the appropriate answer: "Yes," "No," or "N/A" (not applicable). Where space is provided, insert the page number of the trust document, if applicable, that contains the information necessary to substantiate the circled answer. The taxpayer or authorized representative should sign and date the checklist and place it on top of the request.
Failure to (1) provide the information required by Rev. Proc. 82-58, (2) provide any other information required by other revenue procedures referred to in this checklist, or (3) complete and submit the checklist with your ruling request will result in the request being returned to you. In extraordinary circumstances, the Service may retain the request and defer substantive consideration until the checklist is provided.
CIRCLE ONE ITEM
Yes No N/A 1. Have you read and complied with the requirements
and procedures of the Associate Chief Counsel
(Technical), including the checklist, as set forth
in the "-1" revenue procedure of the current
calendar year, e.g., Rev.
Proc. 91-1, 1991-1 I.R.B. 9? The "-1" revenue
procedure is published in the first I.R.B. of the
year.
Yes No N/A 2. Have you read section 3 of the "-3" revenue
procedure of the current calendar year, which sets
forth issues on which the Service will not rule?
The "-3," revenue procedure is published in the
first I.R.B. of the year.
Yes No N/A 3. Is the requested ruling within the no-rule area in
the "-3" revenue procedure?
Yes No N/A 4. Have you attached the trust document?
Yes No N/A 5. Does the ruling request contain a representation,
Page __ and does the trust instrument provide, that the
trust is organized for the primary purpose of
liquidating the assets transferred to it with no
objective to continue or engage in the conduct of a
trade or business?
Yes No N/A 6. Does the trust instrument contain a fixed or
Page __ determinable termination date that is generally not
more than 3 years from the date of creation of the
trust and that is reasonable based on all the facts
and circumstances?
Yes No N/A 7. Does the trust contain installment obligations,
Page __ such as those described in section 453(h) of the
Internal Revenue Code, that are payable over a
period that ends more than 3 years after the date
of creation of the trust? If the answer to this
item is no, circle N/A for Items 8 and 9 and go to
Item 10.
Yes No N/A 8. If the answer to Item 7 is yes, does the trust
Page __ instrument provide that the trust term, with
respect to those obligations only, may extend for a
period that is reasonably necessary to collect and
distribute installments on the obligations?
Yes No N/A 9. If the answer to Item 7 is yes, does the ruling
Page __ request contain a representation that the trustee
annually will compile and disseminate to known
shareholders all available tax return information
with respect to interest (stated or unstated) and
otherwise necessary or useful in reporting under
the installment method?
Yes No N/A 10. Is the trust created incident to a corporate
liquidation? If the answer to this item is no,
circle N/A for Items 11 and 12 and go to Item 13.
Yes No N/A 11. If the answer to Item 10 is yes, does the trust
Page __ instrument provide, or does the ruling request
contain a representation, that the trustee is
selected by the shareholders of record or by a
court of competent jurisdiction?
Yes No N/A 12. If the answer to Item 10 is yes and if the trust is
Page __ to hold assets for unlocated shareholders, does
the ruling request contain a representation that
due notice has been given to those shareholders in
accordance with local law?
Yes No N/A 13. Does the trust instrument provide that the
Page __ investment powers of the trustee are limited to
powers to invest in demand and time deposits in
banks or savings institutions, or temporary
investments such as short-term certificates of
deposit or Treasury bills?
Yes No N/A 14. Does the trust instrument provide, or the ruling
Page __ request contain a representation, that the trust
does not receive transfers of any listed stocks or
securities, any readily-marketable assets, or any
operating assets of a going business?
Yes No N/A 15. Does the trust instrument provide, or the ruling
Page __ request contain a representation, that the trust
does not receive or retain cash in excess of a
reasonable amount to meet claims and contingent
liabilities?
Yes No N/A 16. Does the trust instrument provide, or the ruling
Page __ request contain a representation, that the trust
does not receive transfers of any unlisted stock of
a single issuer that represents 80 percent or more
of the stock of such issuer and does not receive
transfers of any general or limited partnership
interests?
Yes No N/A 17. Does the trust instrument provide that the trust is
Page __ required to distribute at least annually to
known shareholders any proceeds from the sale of
assets or income from investments?
Yes No N/A 18. Does the ruling request contain a representation
Page __ that the trustee will make continuing efforts to
dispose of the trust assets, make timely
distributions, and not unduly prolong the duration
of the trust?
_____________________________________________________________________
Printed Name of Taxpayer or Authorized Representative
_____________________________________________________________________
Signature of Taxpayer or Authorized Representative Date
- Institutional AuthorsInternal Revenue Service
- Cross-Reference
Rev. Proc. 82-58, 1982-2 C.B. 847
- Code Sections
- Index Termstrusts, investment
- Jurisdictions
- LanguageEnglish
- Tax Analysts Electronic Citation91 TNT 33-19
