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SERVICE ANNOUNCES NEW PROCEDURES FOR SEEKING DETERMINATION LETTERS ON EMPLOYEE PLANS.

AUG. 17, 1987

Rev. Proc. 87-40; 1987-2 C.B. 514

DATED AUG. 17, 1987
DOCUMENT ATTRIBUTES
  • Institutional Authors
    Internal Revenue Service
  • Cross-Reference
    Rev. Proc. 83-36, 1983-1 C.B. 763
  • Code Sections
  • Index Terms
    employee plans
  • Jurisdictions
  • Language
    English
  • Tax Analysts Electronic Citation
    87 TNT 159-10
Citations: Rev. Proc. 87-40; 1987-2 C.B. 514

Superseded by Rev. Proc. 90-5

Rev. Proc. 87-40

SECTION 1. PURPOSE

As one step in the process of dealing more efficiently with the need for guidance occasioned primarily by the Tax Reform Act of 1986 (TRA), this revenue procedure provides, for specific Code sections, new conditions under which the Employee Plans Technical and Actuarial Division will consider requests for letter rulings pending the adoption of either temporary or final regulations. Under this procedure the Service will be able to issue some rulings that previously would have been precluded by the provisions of section 4.04 of Rev. Proc. 83-36, 1983-1 C.B. 763.

SEC. 2 PROCEDURE

01 Section 4.04 of Rev. Proc. 83-36 is modified to provide that pending the adoption of final or temporary regulations, the Employee Plans Technical and Actuarial Division will consider ruling requests that involve issues within its jurisdiction where the answer seems reasonably certain, but not entirely free from doubt, without any showing that a business emergency exists or that an unusual hardship will result from failure to obtain a ruling.

02 Section 4.04 of Rev. Proc. 83-36 is further modified to except from its conditions the following Code sections:

                      TRA-86

 

 IRC SECTIONS        SECTION        SUBJECT

 

 ___________________________________________________________________

 

 402(A)(5)          1898(a)(3)      Rollovers

 

 402(a)(6)

 

 402(f)(2)(A)       1898(e)(2)      Eligible rollover distribution

 

 403(a)(1)          1122(d)(1)      Taxation of distributions from

 

                                      qualified annuities

 

 403(b)(1)          1122(d)(2)      Taxation of tax-sheltered

 

                                      annuities

 

 72(t)              1123(d)         10% additional tax on early

 

                                      distributions

 

 ____________________________________________________________________

 

 

03 For Code sections listed in section 2.02 above, even if the answer does not seem reasonably certain the Employee Plans Technical and Actuarial Division (OP:E:EP) 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.

04 When the Service has closed a regulations project (see, for example, the employee plans projects listed in IR 86-18 dated December 9, 1986) or does not intend to open a regulations project (see list below), the Employee Plans Technical and Actuarial Division will entertain all ruling requests unless the issue is covered by the no ruling provisions of Rev. proc. 83-36. The following is a partial list of TRA Code sections for which a tentative decision has been made not to open a regulations project:

                      TRA-86

 

 IRC SECTION(s)      SECTIONS       SUBJECT

 

 _____________________________________________________________________

 

 

 219(b)(3)           1109(a)        Deduction Limits for a section

 

                                      501(c)(18) trust

 

 7701(a)(46)         1137           Requirement that the collective

 

                                      bargaining agreement be bona

 

                                      fide

 

 6659A               1138           Addition to tax for overstatement

 

                                      of pension liabilities

 

 401(c)(6)           1143           Fishermen treated as self-employed

 

                                      individuals

 

 408(m)(3)           1144(a)        IRA's acquisition of certain gold

 

                                      & silver coins not treated as a

 

                                      distribution.

 

 _____________________________________________________________________

 

 

05 The appropriate Branch Chief in the Employee Plans Technical and Actuarial Division will discuss with taxpayers or their representatives whether a ruling concerning any Code section not listed in sections 2.02 and 2.04 above can be issued.

SEC 3. EFFECT ON OTHER REVENUE PROCEDURES

01 This revenue procedure does not deal with the determination letter program or issues which, pursuant to Section 3.01 of Rev. Proc. 80-30, 1980-1 C.B. 685 would ordinarily be the subject of a request for a determination letter rather than a request for ruling. Notice 86-13, 1986-2 C.B. 377, contains guidance regarding the extent to which the Service is currently issuing determination letters on issues affected by TRA.

02 Section 4.04 of Rev. Proc. 83-36 is modified.

SEC 4. EFFECTIVE DATE

This revenue procedure is effective for requests received prior to August 17, 1987, the date of its publication in the Internal Revenue Bulletin, as well as those received thereafter.

DOCUMENT ATTRIBUTES
  • Institutional Authors
    Internal Revenue Service
  • Cross-Reference
    Rev. Proc. 83-36, 1983-1 C.B. 763
  • Code Sections
  • Index Terms
    employee plans
  • Jurisdictions
  • Language
    English
  • Tax Analysts Electronic Citation
    87 TNT 159-10
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