INCOME TAX EXCISE TAX - Internal Revenue Service .application of the tax laws, including all rulings
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Bulletin No. 199619May 6, 1996
HIGHLIGHTSOF THIS ISSUE
These synopses are intended only as aids to the reader inidentifying the subject matter covered. They may not berelied upon as authoritative interpretations.
Rev. Rul. 9624, page 5.Federal rates; adjusted federal rates; adjusted federallong-term rate, and the long-term exempt rate. Forpurposes of sections 1274, 1288, 382, and othersections of the Code, tables set forth the rates for May1996.
Rev. Rul. 9625, page 4.Fringe benefits aircraft valuation formula. For purposes ofsection 1.6121(g) of the regulations, relating to therule for valuing non-commercial flights on employer-provided aircraft, the Standard Industry Fare Level(SIFL), cents-per-mile rates, and terminal charges ineffect for 1996 are set forth. Rev. Rul. 9566modified.
INTL06290; INTL003293; INTL5286;INTL5294, page 26.General revision of regulations under Chapter 3 of theCode relating to withholding of tax on U.S. sourceincome paid to foreign persons and related collection,refunds, and credits; revision of information reportingregulations under subpart B of Chapter 61 and backupwithholding regulations under section 3406; andremoval of regulations under part 35a and certainregulations under income tax treaties.
Announcement 9639, page 84.Families for Children, Golden Valley, MN, no longerqualifies as an organization to which contributions aredeductible under section 170 of the Code.
Notice 9628, page 7.A determination has been made to add butyl benzylphthalate to the list of taxable substances in section4672(a)(3) of the Code.
Notice 9629, page 7.Credit for producing fuel from a nonconventional source,section 29 inflation adjustment factor, and section 29reference price. This notice publishes the section 29inflation adjustment factor, nonconventional source fuelcredit, and the section 29 reference price for calendaryear 1995. These data are used to determine the creditallowable on fuel produced from a nonconventionalsource under section 29 of the Code.
Rev. Proc. 9630, page 8.Section 355 checklist questionnaire. This procedure setsforth in a checklist questionnaire the information thatmust be included in a request for rulings under section355.
Announcement 9638, page 84.The instructions for Schedule SSA (Form 5500),Annual Registration Statement Identifying SeparatedParticipants With Deferred Vested Benefits, arecorrected.
Announcement 9640, page 85.T.D. 8653, 199612 I.R.B. 4, relating to the characterand timing of gain or loss from certain hedgingtransactions entered into by members of a consolidatedgroup, is corrected.
Finding Lists begin on page 87.
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Mission of the ServiceThe purpose of the Internal Revenue Service is tocollect the proper amount of tax revenue at the leastcost; serve the public by continually improving the
quality of our products and services; and perform in amanner warranting the highest degree of publicconfidence in our integrity, efficiency and fairness.
Statement of Principlesof Internal RevenueTax AdministrationThe function of the Internal Revenue Service is toadminister the Internal Revenue Code. Tax policyfor raising revenue is determined by Congress.
With this in mind, it is the duty of the Service tocarry out that policy by correctly applying the lawsenacted by Congress; to determine the reasonablemeaning of various Code provisions in light of theCongressional purpose in enacting them; and toperform this work in a fair and impartial manner,with neither a government nor a taxpayer point ofview.
At the heart of administration is interpretation of theCode. It is the responsibility of each person in theService, charged with the duty of interpreting thelaw, to try to find the true meaning of the statutoryprovision and not to adopt a strained construction inthe belief that he or she is protecting the revenue.The revenue is properly protected only when we as-certain and apply the true meaning of the statute.
The Service also has the responsibility of applyingand administering the law in a reasonable,practical manner. Issues should only be raised byexamining officers when they have merit, neverarbitrarily or for trading purposes. At the sametime, the examining officer should never hesitateto raise a meritorious issue. It is also importantthat care be exercised not to raise an issue or toask a court to adopt a position inconsistent withan established Service position.
Administration should be both reasonable andvigorous. It should be conducted with as littledelay as possible and with great courtesy andconsiderateness. It should never try to overreach,and should be reasonable within the bounds of lawand sound administration. It should, however, bevigorous in requiring compliance with law and itshould be relentless in its attack on unreal taxdevices and fraud.
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IntroductionThe Internal Revenue Bulletin is the authoritativeinstrument of the Commissioner of Internal Revenue forannouncing official rulings and procedures of theInternal Revenue Service and for publishing TreasuryDecisions, Executive Orders, Tax Conventions, legisla-tion, court decisions, and other items of generalinterest. It is published weekly and may be obtainedfrom the Superintendent of Documents on a subscrip-tion basis. Bulletin contents of a permanent nature areconsolidated semiannually into Cumulative Bulletins,which are sold on a single-copy basis.
It is the policy of the Service to publish in the Bulletinall substantive rulings necessary to promote a uniformapplication of the tax laws, including all rulings thatsupersede, revoke, modify, or amend any of thosepreviously published in the Bulletin. All publishedrulings apply retroactively unless otherwise indicated.Procedures relating solely to matters of internalmanagement are not published; however, statements ofinternal practices and procedures that affect the rightsand duties of taxpayers are published.
Revenue rulings represent the conclusions of theService on the application of the law to the pivotal factsstated in the revenue ruling. In those based onpositions taken in rulings to taxpayers or technicaladvice to Service field offices, identifying details andinformation of a confidential nature are deleted toprevent unwarranted invasions of privacy and to complywith statutory requirements.
Rulings and procedures reported in the Bulletin do nothave the force and effect of Treasury DepartmentRegulations, but they may be used as precedents.Unpublished rulings will not be relied on, used, or citedas precedents by Service personnel in the disposition ofother cases. In applying published rulings and proce-dures, the effect of subsequent legislation, regulations,court decisions, rulings, and procedures must beconsidered, and Service personnel and others con-cerned are cautioned against reaching the sameconclusions in other cases unless the facts andcircumstances are substantially the same.
The Bulletin is divided into four parts as follows:
Part I.1986 Code.This part includes rulings and decisions based onprovisions of the Internal Revenue Code of 1986.
Part II.Treaties and Tax Legislation.This part is divided into two subparts as follows:Subpart A, Tax Conventions, and Subpart B, Legislationand Related Committee Reports.
Part III.Administrative, Procedural, and Miscellaneous.To the extent practicable, pertinent cross references tothese subjects are contained in the other Parts andSubparts. Also included in this part are Bank SecrecyAct Administrative Rulings. Bank Secrecy Act Admin-istrative Rulings are issued by the Department of theTreasurys Office of the Assistant Secretary(Enforcement).
Part IV.Items of General Interest.With the exception of the Notice of Proposed Rulemak-ing and the disbarment and suspension list included inthis part, none of these announcements are consoli-dated in the Cumulative Bulletins.
The first Bulletin for each month includes an index forthe matters published during the preceding month.These monthly indexes are cumulated on a quarterlyand semiannual basis, and are published in the firstBulletin of the succeeding quarterly and semi-annualperiod, respectively.
The Bulletin Index-Digest System, a research andreference service supplementing the Bulletin, may beobtained from the Superintendent of Documents on asubscription basis. It consists of four Services: ServiceNo. 1, Income Tax; Service No. 2, Estate and GiftTaxes; Service No. 3, Employment Taxes; Service No.4, Excise Taxes. Each Service consists of a basicvolume and a cumulative supplement that provides (1)finding lists of items published in the Bulletin, (2)digests of revenue rulings, revenue procedures, andother published items, and (3) indexes of Public Laws,Treasury Decisions, and Tax Conventions.
The contents of this publication are not copyrighted and may be reprinted freely. A citation of the Internal Revenue Bulletin as the source would be appropriate.
For sale by the Superintendent of Documents U.S. Government Printing Office, Washington, D.C. 20402.
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