IRB 1998-38 9/16/98 11:49 AM Page 1 Internal Revenue ...

1 INCOME TAXRev. Rul. 98 45, page housing credit; satisfactory bond; bondfactor amounts for the period July through Septem-ber ruling announces the monthly bond factoramounts to be used by taxpayers who dispose of qualifiedlow-income buildings or interests therein during the periodJuly through September PLANSA nnouncement 98 85, page 5300, 5303, 5307 and 6406, and Schedule Q (Form5300), used for requesting determination letters for ongoingemployee benefit plans, have been revised. The new revisiondate is July ORGANIZATIONSA nnouncement 98 86, page list is provided of organizations that no longer qualify as or-ganizations to which contributions are deductible under sec-tion 170 of the Proc.

2 98 48, page small business stock; rollover of gain; are provided for taxpayers to make anelection under section 1045 of the Code to defer recogni-tion of gain on the sale of qualified small business Proc. 98 50, page 1040 IRS in the Form1040 IRS e-fileprogram are informed of their obligations tothe Service, taxpayers, and other participants. Rev. 60 Proc. 98 51, page 1040 on-line filing in theForm 1040 on-line filing program are informed of their oblig-ations to the Service, taxpayers, and other participants. 97 61 98 49, page 408A; Roth IRAs, reporting describes certain reporting requirements for RothIRAs as described in section 408A of the Code and certainchanges to IRAs contained in the Internal Revenue ServiceRestructuring and Reform Act of 1998.

3 Notice 87 13 andNotice 87 16 98 84, page Service announces a delay in changes to Forms W 2 andW 3 until tax year 2000. In Announcement 98 55, 1998 41, the Service requested comments on proposedchanges to the 1999 Forms W 2 and W 3. Based on a re-view of those comments, the Service will postpone makingmajor revisions to Forms W 2 and W 3 until tax year 2000forms, which will be filed in RevenuebbuulllleettiinnBulletin No. 1998 38 September 21, 1998 HIGHLIGHTSOF THIS ISSUET hese synopses are intended only as aids to the reader inidentifying the subject matter covered. They may not berelied upon as authoritative of the TreasuryInternal Revenue ServiceFinding Lists begin on page of Declaratory Judgment Proceedings Under section 7428 begins on page 1998-38 9/16/98 11:49 AM Page 1 Mission of the ServiceThe purpose of the Internal Revenue Service is to collectthe proper amount of tax Revenue at the least cost; servethe public by continually improving the quality of our prod- ucts and services ; and perform in a manner warrantingthe highest degree of public confidence in our integrity, effi-ciency, and of Principlesof Internal RevenueTax AdministrationThe function of the Internal Revenue Service is to adminis-ter the Internal Revenue Code.

4 Tax policy for raising revenueis determined by this in mind, it is the duty of the Service to carry out thatpolicy by correctly applying the laws enacted by Congress;to determine the reasonable meaning of various Code provi-sions in light of the Congressional purpose in enacting them;and to perform this work in a fair and impartial manner, withneither a government nor a taxpayer point of the heart of administration is interpretation of the Code. Itis the responsibility of each person in the Service, chargedwith the duty of interpreting the law, to try to find the truemeaning of the statutory provision and not to adopt astrained construction in the belief that he or she is protect-ing the Revenue .

5 The Revenue is properly protected onlywhen we ascertain and apply the true meaning of the Service also has the responsibility of applying andadministering the law in a reasonable, practical should only be raised by examining officers whenthey have merit, never arbitrarily or for trading the same time, the examining officer should never hesi-tate to raise a meritorious issue. It is also important thatcare be exercised not to raise an issue or to ask a court toadopt a position inconsistent with an established should be both reasonable and vigorous. Itshould be conducted with as little delay as possible andwith great courtesy and considerateness.

6 It should nevertry to overreach, and should be reasonable within thebounds of law and sound administration. It should, howev-er, be vigorous in requiring compliance with law and itshould be relentless in its attack on unreal tax devices 1998-38 9/16/98 11:49 AM Page 2 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 of a permanent nature are consoli-dated semiannually into Cumulative Bulletins, which are soldon a single-copy 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.

7 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 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 and procedures reported in the Bulletin do not havethe force and effect of Treasury Department Regulations,but they may be used as precedents.

8 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 Bulletin is divided into four parts as follows:Part I. 1986 part includes rulings and decisions based on provisionsof the Internal Revenue Code of II. Treaties and Tax part is divided into two subparts as follows: Subpart A,Tax Conventions, and Subpart B, Legislation and RelatedCommittee III.

9 Administrative, Procedural, and 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 the exception of the Notice of Proposed Rulemakingand the disbarment and suspension list included in this part,none of these announcements are consolidated in the Cumu-lative first Bulletin for each month includes a cumulative indexfor the matters published during the preceding monthly indexes are cumulated on a semiannual basisand are published in the first Bulletin of the succeeding semi-annual period, contents of this publication are not copyrighted and may be reprinted freely.

10 A citation of the Internal Revenue Bulletin as the source would be sale by the Superintendent of Documents, Government Printing Office, Washington, DC 1998-38 9/16/98 11:49 AM Page 3 For a list of bond factor amounts ap-plicable to dispositions occurring duringother calendar years, see the followingrevenue rulings: Rev. Rul. 95 83, 1995 2 8, for dispositions occurring dur-ing calendar year 1995; Rev. Rul. 98 3,1998 2 4, for dispositions occur-ring during the calendar years 1996 and1997; Rev. Rul. 98 13, 1998 11 4,for dispositions occurring during the pe-riod January through March 1998; andRev. Rul. 98 31, 1998 25 4, fordispositions occurring during the periodApril through June 1998.