SERVICE ANNOUNCES REVISED PROCEDURE FOR ISSUANCE OF LETTER RULINGS.
Rev. Proc. 87-7; 1987-1 C.B. 542
- Institutional AuthorsInternal Revenue Service
- Cross-ReferenceSee Internal Revenue Bulletin No. 1987-2, dated Jan. 12, 1987.
- Jurisdictions
- LanguageEnglish
- Tax Analysts Electronic Citation87 TNT 1-15
Superseded by Rev. Proc. 88-18
Rev. Proc. 87-7
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, this revenue procedure provides, for specific Code sections, new conditions under which the Associate Chief Counsel (Technical) 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 some rulings that previously would have been precluded by the provisions of section 5.07(2) of Rev. Proc. 87-1, 1987-1 I.R.B. 7.
SEC 2. PROCEDURE
01 Section 5.07(2) of Rev. Proc. 87-1 is modified to except from its conditions the following Code sections:
TRA-86
IRC SECTION(S) SECTIONS SUBJECT
______________ ________ _______
(new) 42 252 Low Income Housing Credit
48(g) 251 Qualified Rehabilitated Buildings
55-58 701 Alternative Minimum Tax - Individuals
and Corporations
old 57(a)(11) 701 Items of Tax Preference - Intangible
new 57(a)(2) Drilling and Development Costs - Oil,
Gas, and Geothermal
old 58(i)(2)(C) 701 Optional 10-year Write-off of the
old 58(i)(4) Tax Preference Relating to Intangible
old 58(i)(6) Drilling and Development Costs
new 59(e)
71 and 215 1843 Revision of the Rules Regarding Excess
Front-Loading of Alimony
108 405 Discharge of Indebtedness for Farmers
141 1301 Private Activity Bond
143(k)(9) 1301 Treatment of Limited Equity Cooperative
Housing
144(a) 1301 Qualified Small Issue Bond (definition)
145 1301 Qualified 501(c)(3) Bond
146 1301 Volume Cap
147(b)(4) 1301 Special Rule for Pooled Financing of
501(c)(3) Organization
148 1301 Arbitrage (other than rebate)
163 511 Nonbusiness Interest Limits -
Disallowance for Personal Interest
168(e) 201(a) Classification of Property for the
Accelerated Cost Recovery System
168(f)(2) 201 Normalization of Accelerated
Depreciation for Public Utility
Property
170(e)(4) 231 Charitable Deduction for Donation of
Scientific Equipment
179 202 Expensing of Depreciation Assets
263A 803 Capitalization and Inclusion in
Inventory Costs of Certain Expenses
280A 143 Disallowance of Expenses of Business
Use of a Home
303, subject to 1432(b) Rules for Generation Skipping
existing no-rule Transfers
limitations
304(a) 1875 Redemption Through Use of Related
Corporations
311,332,333, 631,632 Recognition of Gain or Loss on
336,337,338, 633 Distributions of Property in
361,368,1374 Liquidation or S Corporation
Conversion
382,383 621 Limitation on Net Operating Loss
Carryforwards and Excess Credit
Carryforwards
312 1804(f) Distributions of Appreciated Property
457 1107 Deferred Compensation Plans - State &
Local Governments
465(b)(6) 503 Extension of At Risk Limitations to
Real Estate
469 501 Disallowance of Passive Activity
Losses and Credits
474 802 Simplified Dollar Value LIFO Method
for Certain Small Businesses
562 657 Certain Distributions by RICs Not
Treated as Preferential Dividends
672-673 1401-1403 Revision to the Grantor Trust
Provisions
846, except sub- 1023(c) Discounting of Unpaid Losses and
sections (d) and Certain Unpaid Expenses
(e)
851 653(a)(b) Regulated Investment Companies
(c)(d)
2601 - 2663, 1431 Generation Skipping Transfer Tax
subject to
existing no-
rule limitations
3121(w) 1882 Voluntary Revocation of Election
Out of FICA by Churches
7702, except sub- 1825 Life Insurance Contract Defined
sections (f)(7)(E)
and (g)(1)(D)
SRA-86
SECTIONS
________
4611, 4661, 4662 Sec. 511-513 Reenactment of Petroleum and Chemical
Taxes for the Superfund
COBRA
SECTIONS
________
3121(u) 13205 Extension of Medicare Tax to Newly
Hired State and Local Government
Employees
02 For Code sections listed in section 2.01 above, even if the answer does not seem reasonably certain, the appropriate Branch in the office of the Associate Chief Counsel (Technical) 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. 87-1 does not apply and the appropriate Branch in the office of the Associate Chief Counsel (Technical) will entertain all ruling requests unless the issue is covered by the no-rule provisions of section 7 of Rev. Proc. 87-1 or by Rev. Proc. 87-3, 1987-1 I.R.B. ____, 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:
TRA-86
IRC SECTION(S) SECTIONS SUBJECT
______________ ________ _______
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
150(b) and (c) 1301 Change in Use of Facilities
162 142 Educational Travel
168 203 and Transitional Rules for Property
204 Depreciable Under Section 167(a) of
the Code
265(2) 902 100% Disallowance of Financial
Institution Interest Deduction Allow-
able to Tax-Exempt Obligations
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(g)(6) 80-percent Voting and Value Test
and (8)
361 1804(g) Recognition of Gain on Distributions
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 20 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 Corpora-
tions to File Consolidated Income Tax
Returns Without Equity Ownership in
Subsidiaries
04 The appropriate Branch Chief in the office of the Associate Chief Counsel (Technical) will discuss with taxpayers or their representatives whether a ruling concerning any Code section not listed in sections 2.01 and 2.03 above can be issued.
SEC 3. EFFECT ON OTHER REVENUE PROCEDURES
Rev. Proc. 87-1 is modified.
SEC 4. EFFECTIVE DATE
This revenue procedure is effective for requests received prior to January 12, 1987, the date of its publication in the Internal Revenue Bulletin, as well as to those received thereafter.
- Institutional AuthorsInternal Revenue Service
- Cross-ReferenceSee Internal Revenue Bulletin No. 1987-2, dated Jan. 12, 1987.
- Jurisdictions
- LanguageEnglish
- Tax Analysts Electronic Citation87 TNT 1-15
