Internal Revenue Bulletin: 2003-29

July 21, 2003


Highlights of This Issue

 

These synopses are intended only as aids to the reader in identifying the subject matter covered. They may not be relied upon as authoritative interpretations.

INCOME TAX

Rev. Rul. 2003-74 Rev. Rul. 2003-74

Section 355 management ruling. Where two different businesses operate within the same corporate group, and senior management wishes to focus on only one, the separation of the businesses to enable the management of each to concentrate on its own business satisfies the business purpose requirement of section 1.355-2(b) of the regulations.

Rev. Rul. 2003-75 Rev. Rul. 2003-75

Section 355 capital allocation ruling. Where two different businesses within the same corporate group are competing for limited capital, the separation of these businesses to resolve the capital allocation problem satisfies the business purpose requirement of section 1.355-2(b) of the regulations.

Rev. Rul. 2003-77 Rev. Rul. 2003-77

Community service facility. This ruling describes the type of facility that qualifies as a community service facility under section 42(d)(4)(C)(iii) of the Code.

Rev. Rul. 2003-78 Rev. Rul. 2003-78

Advance refunding bonds. This ruling concludes that tax-exempt bonds are advance refunding bonds within the meaning of section 149(d)(5) of the Code if proceeds of the bonds are loaned to a governmental unit (the conduit borrower) that uses the proceeds to redeem an outstanding tax-exempt obligation on which the conduit borrower is the obligor (the prior obligation) more than 90 days after the issue date of the bonds.

Rev. Rul. 2003-79 Rev. Rul. 2003-79

Section 355 reverse Morris trust. The acquisition by an unrelated corporation of all the assets of a newly formed controlled corporation following distribution of the controlled corporation's stock under section 355 of the Code will satisfy the "substantially all" requirement of section 368(a)(1)(C) even though the acquired assets represent only half of the assets held by the distributing corporation before it formed the controlled corporation.

Rev. Rul. 2003-80 Rev. Rul. 2003-80

Statute of limitations, bankruptcy. This ruling explains the effect of a bankruptcy on the running of the statute of limitations on assessment set forth in section 6501 of the Code. The ruling illustrates that when the IRS issues a Notice of Deficiency less than 90 days before the taxpayer files a bankruptcy petition, the same day the taxpayer files a bankruptcy petition, or after the taxpayer files a bankruptcy petition, and before the termination of the automatic stay imposed by the bankruptcy, the assessment period is suspended not only by the 60-day period provided by section 6503(a), but also by the additional 60-day period provided by section 6213(f).

Rev. Rul. 2003-87 Rev. Rul. 2003-87

LIFO; price indexes; department stores. The May 2003 Bureau of Labor Statistics price indexes are accepted for use by department stores employing the retail inventory and last-in, first-out inventory methods for valuing inventories for tax years ended on, or with reference to, May 31, 2003.

Announcement 2003-47 Announcement 2003-47

This announcement notifies the public of changes to Form 8873, Extraterritorial Income Exclusion, and its Instructions. This announcement also provides the reasons for these changes.

ADMINISTRATIVE

Notice 2003-45 Notice 2003-45

Depreciation, mid-quarter convention relief. This notice announces that a taxpayer qualifying under either Notice 2001-70 or Notice 2001-74 who filed a timely return for the taxable year that includes September 11, 2001, but failed to make the election provided under Notice 2001-70 or Notice 2001-74, is granted an automatic extension of time until December 31, 2003, to amend its tax return for the taxable year that includes September 11, 2001, and any subsequent taxable years, in order to make the election under Notice 2001-70 or Notice 2001-74 and reflect any necessary adjustments resulting from the election. Notices 2001-70 and 2001-74 amplified.

Rev. Proc. 2003-48 Rev. Proc. 2003-48

Section 355; update of section 355 checklist questionnaire. The Service will no longer determine whether a distribution of controlled corporation stock (1) satisfies the business purpose requirement, (2) is used principally as a device for the distribution of earnings and profits, or (3) is part of a plan under section 355(e) of the Code. Taxpayers will be required to address these factual issues by submitting appropriate representations. Rev. Proc. 96-30 modified and amplified, and Rev. Proc. 2003-3 modified.

Rev. Proc. 2003-49 Rev. Proc. 2003-49

This procedure corrects errors found in Rev. Proc. 2003-15, 2003-4 I.R.B. 321. This procedure provides issuers of qualified mortgage bonds, as defined in section 143(a) of the Code, and issuers of mortgage credit certificates, as defined in section 25(c), with a list of qualified census tracts for each state and the District of Columbia. The qualified census tracts are based on data from the 2000 census. Rev. Proc. 2003-15 modified and superseded.

Rev. Proc. 2003-50 Rev. Proc. 2003-50

Additional first year depreciation. This procedure provides additional time for any taxpayer that timely filed its federal tax return for the taxable year that included September 11, 2001, to deduct, or elect not to deduct, the 30-percent additional first year depreciation deduction for qualified property and qualified New York Liberty Zone property placed in service after September 11, 2001, during the taxable year that included September 11, 2001. This procedure also permits an automatic extension of time to allow certain taxpayers to change their selection of section 179 property for the taxable year that included September 11, 2001. Rev. Procs. 2002-9 and 2002-33 amplified and modified.

Rev. Proc. 2003-51 Rev. Proc. 2003-51

Inventories. Guidelines are provided for taxpayers and IRS personnel in making fair market value determinations for inventory items acquired when a taxpayer purchases the assets of a business for a lump sum or a corporation acquires the stock of another corporation and makes an election pursuant to section 338 of the Code. Rev. Proc. 77-12 amplified, modified, and superseded.

Preface

The IRS Mission

Provide America's taxpayers top quality service by helping them understand and meet their tax responsibilities and by applying the tax law with integrity and fairness to all.

Introduction

The Internal Revenue Bulletin is the authoritative instrument of the Commissioner of Internal Revenue for announcing official rulings and procedures of the Internal Revenue Service and for publishing Treasury Decisions, Executive Orders, Tax Conventions, legislation, court decisions, and other items of general interest. It is published weekly and may be obtained from the Superintendent of Documents on a subscription basis. Bulletin contents are consolidated semiannually into Cumulative Bulletins, which are sold on a single-copy basis.

It is the policy of the Service to publish in the Bulletin all substantive rulings necessary to promote a uniform application of the tax laws, including all rulings that supersede, revoke, modify, or amend any of those previously published in the Bulletin. All published rulings apply retroactively unless otherwise indicated. Procedures relating solely to matters of internal management are not published; however, statements of internal practices and procedures that affect the rights and duties of taxpayers are published.

Revenue rulings represent the conclusions of the Service on the application of the law to the pivotal facts stated in the revenue ruling. In those based on positions taken in rulings to taxpayers or technical advice to Service field offices, identifying details and information of a confidential nature are deleted to prevent unwarranted invasions of privacy and to comply with statutory requirements.

Rulings and procedures reported in the Bulletin do not have the force and effect of Treasury Department Regulations, but they may be used as precedents. Unpublished rulings will not be relied on, used, or cited as precedents by Service personnel in the disposition of other cases. In applying published rulings and procedures, the effect of subsequent legislation, regulations, court decisions, rulings, and procedures must be considered, and Service personnel and others concerned are cautioned against reaching the same conclusions in other cases unless the facts and circumstances are substantially the same.

The Bulletin is divided into four parts as follows:

Part I.—1986 Code. This part includes rulings and decisions based on provisions 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 Other Related Items, and Subpart B, Legislation and Related Committee Reports.

Part III.—Administrative, Procedural, and Miscellaneous. To the extent practicable, pertinent cross references to these subjects are contained in the other Parts and Subparts. Also included in this part are Bank Secrecy Act Administrative Rulings. Bank Secrecy Act Administrative Rulings are issued by the Department of the Treasury's Office of the Assistant Secretary (Enforcement).

Part IV.—Items of General Interest. This part includes notices of proposed rulemakings, disbarment and suspension lists, and announcements.

The first Bulletin for each month includes a cumulative index for the matters published during the preceding months. These monthly indexes are cumulated on a semiannual basis, and are published in the first Bulletin of the succeeding semiannual period, respectively.

Part I. Rulings and Decisions Under the Internal Revenue Code of 1986

Rev. Rul. 2003-77

Community service facility. This ruling describes the type of facility that qualifies as a community service facility under section 42(d)(4)(C)(iii) of the Code.

ISSUE

Does the facility described below qualify as a community service facility under § 42(d)(4)(C)(iii) of the Internal Revenue Code?

FACTS

A qualified low-income building (the Building) received a housing credit allocation on October 1, 2002, and was placed in service in 2003. The Building is located in a qualified census tract (as defined in § 42(d)(5)(C)). A portion of the Building (the Facility) is used throughout the year to provide services to residents of the Building as well as nonresidents. The Facility consists of a meeting room, an administrative office, a storage room, and several multi-purpose rooms. The services provided at the Facility include day care, career counseling, literacy training, education (including tutorial services), recreation, and outpatient clinical health care. The services are provided free of charge or for a fee that is affordable to individuals whose income is 60 percent or less of area median income (within the meaning of § 42(g)(1)(B)). The adjusted basis of the property comprising the Facility (of a character subject to the allowance for depreciation and not otherwise taken into account in the adjusted basis of the Building) does not exceed 10 percent of the eligible basis of the Building.

As required by § 42(m)(1)(A)(iii), prior to the allocation of housing credit to the Building, a comprehensive market study was conducted to assess the housing needs of the low-income individuals in the area to be served by the Building. The study found, among other things, that providing day care, career counseling, literacy training, education (including tutorial services), recreation, and outpatient clinical health care services would be appropriate and helpful to individuals in the area of the Building whose income is 60 percent or less of area median income.

LAW AND ANALYSIS

Section 42(a) provides that the amount of the low-income housing credit determined for any taxable year in the credit period is an amount equal to the applicable percentage of the qualified basis of each qualified low-income building.

Section 42(c)(1)(A) defines the qualified basis of any qualified low-income building for any taxable year as an amount equal to the applicable fraction (as defined in § 42(c)(1)(B)), determined as of the close of the taxable year, of the eligible basis of the building, determined under § 42(d)(5).

Section 42(d)(1) provides that the eligible basis of a new building is its adjusted basis as of the close of the first taxable year of the credit period. Section 42(d)(4)(A) provides that, except as provided in § 42(d)(4)(B) and (C), the adjusted basis of any building is determined without regard to the adjusted basis of any property that is not residential rental property. Section 42(d)(4)(B) provides that the adjusted basis of any building includes the adjusted basis of property (of a character subject to the allowance for depreciation) used in common areas or provided as comparable amenities to all residential rental units in the building.

Section 42(d)(4)(C)(i) provides that the adjusted basis of any building located in a qualified census tract is determined by taking into account the adjusted basis of property (of a character subject to the allowance for depreciation and not otherwise taken into account) used throughout the taxable year in providing any community service facility. Section 42(d)(5)(C)(ii)(I) defines the term “qualified census tract” as any census tract which is designated by the Secretary of Housing and Urban Development (HUD) and, for the most recent year for which census data are available on household income in the tract, either in which 50 percent or more of the households have an income which is less than 60 percent of the area median gross income for the year or which has a poverty rate of at least 25 percent. See http://www.huduser.org/datasets/qct.html for census tracts designated by the Secretary of HUD.

Section 42(d)(4)(C)(ii) provides that the increase in the adjusted basis of any building which is taken into account by reason of § 42(d)(4)(C)(i) may not exceed 10 percent of the eligible basis of the qualified low-income housing project of which it is a part. For this purpose, § 42(d)(4)(C)(ii) provides that all community service facilities which are part of the same qualified low-income housing project are treated as one facility.

Section 42(d)(4)(C)(iii) provides that the term “community service facility” means any facility designed to serve primarily individuals whose income is 60 percent or less of area median income (within the meaning of § 42(g)(1)(B)).

Section 42(m)(1)(A)(iii) provides that the housing credit dollar amount with respect to any building will be zero unless a comprehensive market study of the housing needs of low-income individuals in the area to be served by the project is conducted before the credit allocation is made and at the developer’s expense by a disinterested party who is approved by the housing credit agency.

Under § 42(d)(4)(C)(iii), a community service facility must be designed to serve primarily individuals whose income is 60 percent or less of area median income. This requirement will be satisfied if the following conditions are met. First, the facility must be used to provide services that will improve the quality of life for community residents. Second, the taxpayer must demonstrate that the services provided at the facility will be appropriate and helpful to individuals in the area of the project whose income is 60 percent or less of area median income. This may, for example, be demonstrated in the market study required to be conducted under § 42(m)(1)(A)(iii), or another similar study. Third, the facility must be located on the same tract of land as one of the buildings that comprises the qualified low-income housing project. Finally, if fees are charged for services provided, they must be affordable to individuals whose income is 60 percent or less of area median income.

Under the facts presented, the Facility is designed to serve primarily individuals whose income is 60 percent or less of area median income for the following reasons:

(1) the services provided at the Facility—day care, career counseling, literacy training, education (including tutorial services), recreation, and outpatient clinical health care—are services that will help improve the quality of life for community residents; (2) the market study required to be conducted under § 42(m)(1)(A)(iii) found that the services provided at the Facility would be appropriate and helpful to individuals in the area of the Building whose income is 60 percent or less of area median income; (3) the Facility is located within the Building; and (4) the services provided at the Facility are affordable to individuals whose income is 60 percent or less of area median income.

HOLDING

The Facility qualifies as a community service facility under § 42(d)(4)(C)(iii). Because the other requirements set forth in § 42(d)(4)(C) are met, the adjusted basis of the Building will be determined by taking into account the adjusted basis of the Facility.

DRAFTING INFORMATION

The principal author of this revenue ruling is Gregory N. Doran of the Office of Associate Chief Counsel (Passthroughs and Special Industries). For further information regarding this revenue ruling, contact Mr. Doran at (202) 622-3040 (not a toll-free call).

Rev. Rul. 2003-78

Advance refunding bonds. This ruling concludes that tax-exempt bonds are advance refunding bonds within the meaning of section 149(d)(5) of the Code if proceeds of the bonds are loaned to a governmental unit (the conduit borrower) that uses the proceeds to redeem an outstanding tax-exempt obligation on which the conduit borrower is the obligor (the prior obligation) more than 90 days after the issue date of the bonds.

ISSUE

Whether bonds are advance refunding bonds within the meaning of § 149(d)(5) of the Internal Revenue Code if the issuer loans proceeds of the bonds to a governmental unit, and within 90 days of the date the loan is made, but more than 90 days after the issue date of the bonds, the governmental unit uses the proceeds to redeem outstanding tax-exempt obligations of the governmental unit.

FACTS

Issuer X, a governmental unit, issues bonds (Bonds) to make loans to other governmental units to finance or refinance governmental projects of those units. X loans a portion of the proceeds of the Bonds to a governmental unit (the Borrower) that uses the proceeds to redeem tax-exempt bonds (Prior Bonds) issued by the Borrower. The Borrower is the obligor of the Prior Bonds within the meaning of § 1.150-1(d)(2)(ii)(B) of the Income Tax Regulations. The redemption of the Prior Bonds occurs within 90 days of the date the loan to the Borrower is made, but more than 90 days after the issue date of the Bonds.

LAW AND ANALYSIS

Section 103(a) provides that, except as otherwise provided, gross income does not include interest on any State or local bond. Section 103(b)(3) provides that this exclusion does not apply to any bond unless the bond meets the applicable requirements of § 149.

Section 149(d)(1) provides that nothing in § 103(a) or any other provision of the law shall be construed to provide an exemption from federal income tax for interest on any bond issued as part of an issue described in paragraph (2), (3), or (4) of § 149(d). Section 149(d)(3) provides, in part, that an issue is described in paragraph (3) of § 149(d) if any bond issued as part of the issue is issued to advance refund a bond, unless the refunding bond is only (a) the first advance refunding of the original bond if the original bond is issued after 1985, or (b) the first or second advance refunding of the original bond if the original bond is issued before 1986. Section 149(d)(5) provides that a bond is treated as issued to advance refund another bond if it is issued more than 90 days before the redemption of the refunded bond. See also § 1.150-1(d)(3), (d)(4).

Pursuant to § 1.150-1(a)(1), except as otherwise provided, the definitions in § 1.150-1 apply for all purposes of §§ 103 and 141 through 150.

Section 1.150-1(d)(1) provides that a refunding issue means an issue of obligations the proceeds of which are used to pay principal, interest, or redemption price on another issue, including issuance costs, accrued interest, capitalized interest on the refunding issue, a reserve or replacement fund, or similar costs, if any, properly allocable to that refunding issue. An issue is not a refunding issue, however, to the extent that the obligor of one issue is neither the obligor of the other issue nor a related party with respect to the obligor of the other issue. § 1.150-1(d)(2)(ii)(A).

In general, § 1.150-1(d)(2)(ii)(B) provides that the obligor of an issue means the actual issuer of the issue, except that the obligor of the portion of an issue properly allocable to an investment in a purpose investment means the conduit borrower under that purpose investment. Section 1.150-1(b) defines the term “conduit borrower” as the obligor on a purpose investment (as defined in § 1.148-1). For example, if an issuer invests proceeds in a purpose investment in the form of a loan, lease, installment sale obligation, or similar obligation to another entity and the obligor uses the proceeds to carry out the governmental purpose of the issue, the obligor is a conduit borrower. The obligor of an issue used to finance qualified mortgage loans, qualified student loans, or similar program investments (as defined in § 1.148-1) does not include the ultimate recipient of the loan (e.g., the homeowner, the student). § 1.150-1(d)(2)(ii)(B).

Section 1.148-1(b) defines the terms “purpose investment” and “program investment”. A purpose investment is an investment that is acquired to carry out the governmental purpose of an issue. A program investment is a purpose investment that is part of a governmental program in which, among other requirements, at least 95 percent (90 percent for qualified student loans under § 144(b)(1)(A)) of the cost of the purpose investments acquired under the program represents one or more loans to a substantial number of persons representing the general public, states or political subdivisions, 501(c)(3) organizations, persons who provide housing and related facilities, or any combination of the foregoing.

Section 1.150-1(b) defines the issue date of an issue as the first date on which the issuer receives the purchase price in exchange for delivery of the evidence of indebtedness representing any bond included in the issue. In reference to a bond, the issue date is the date on which the issuer receives the purchase price in exchange for that bond. In no event is the issue date earlier than the first day on which interest begins to accrue on the bond or bonds for federal income tax purposes.

The proceeds of the Bonds loaned to the Borrower are used to pay principal, interest, or redemption price on another issue, the Prior Bonds. Thus, under the general definition of refunding issue contained in § 1.150-1(d)(1), the portion of the Bonds allocable to the loan to the Borrower constitutes a refunding issue. There is no change in obligor under § 1.150-1(d)(2)(ii) to alter this conclusion. The loan to the Borrower from proceeds of the Bonds is a purpose investment, and it is not a “similar program investment” within the meaning of § 1.150-1(d)(2)(ii)(B). Although the loans of proceeds of the Bonds may be program investments, loans to governmental units to finance or refinance their governmental projects are not similar to qualified mortgage loans or qualified student loans for purposes of § 1.150-1(d)(2)(ii)(B) because they are not loans made to natural persons not engaged in a trade or business (with respect to the loans). Thus, the Borrower is an obligor of the Bonds. The Borrower is also the obligor of the Prior Bonds. Accordingly, the portion of the Bonds allocable to the loan to the Borrower constitutes a refunding issue. Because the redemption date of the Prior Bonds is more than 90 days after the issue date of the Bonds, the portion of the Bonds allocable to the loan to the Borrower are advance refunding bonds within the meaning of § 149(d)(5).

HOLDING

The portion of the Bonds allocable to the loan to the Borrower are advance refunding bonds within the meaning of § 149(d)(5) if X loans proceeds of the Bonds to the Borrower, and within 90 days of the date the loan is made, but more than 90 days after the issue date of the Bonds, the Borrower uses the proceeds to redeem the Prior Bonds.

DRAFTING INFORMATION

The principal authors of this revenue ruling are David White and Rebecca Harrigal of the Office of the Associate Chief Counsel (Tax-Exempt and Government Entities), Internal Revenue Service. For further information regarding this revenue ruling, contact David White at (202) 622-3980 (not a toll free call).

Rev. Rul. 2003-74

Section 355 management ruling. Where two different businesses operate within the same corporate group, and senior management wishes to focus on only one, the separation of the businesses to enable the management of each to concentrate on its own business satisfies the business purpose requirement of section 1.355-2(b) of the regulations.

ISSUE

Whether, in the situation described below, the distribution of the stock of a controlled corporation by a distributing corporation to enable the management of each corporation to concentrate on its own business satisfies the business purpose requirement of § 1.355-2(b) of the Income Tax Regulations.

FACTS

Distributing is a publicly traded corporation that conducts a software technology business. Controlled, a wholly owned subsidiary of Distributing, conducts a paper products business. One shareholder, who does not actively participate in the management or operations of Distributing or Controlled, owns eight percent of the outstanding Distributing stock.

The software business develops and markets software for various applications. It is a high-growth business that depends for its success on innovation and acquisitions of related businesses. It is the business around which Distributing originally developed and remains the core operation. The paper products business manufactures and distributes paper products. It was acquired five years ago to support the software business and is significantly smaller than the software business. The paper products business grows at a slow to moderate rate largely through increased efficiencies in productivity.

Distributing's senior management devotes more of its time to the software business because it believes that business presents better opportunities for growth. Indeed, it would like to concentrate solely on the software business but is prevented from doing so by the need to service the paper products business. The management of the paper products business, on the other hand, believes that the disproportionate attention paid the software business deprives the paper products business of the management resources needed for its full development.

To enable Distributing's senior management to concentrate on the software business and the management of the paper products business to concentrate on its own operation, Distributing distributes the Controlled stock to Distributing's shareholders, pro rata. Because Distributing's senior management would have continued responsibility for the paper products business as long as Distributing owns a controlling interest in the stock of the corporation operating the paper products business, there is no other nontaxable transaction that would permit Distributing's senior management to concentrate on the software business and permit the paper products business to have a senior management that adequately serves that business. Distributing's directors and senior management expect that each business will benefit in a real and substantial way from the separation.

Following the distribution, no officer will serve both Distributing and Controlled. However, two of Distributing's eight directors will also serve on Controlled's six-person board. Director A will help with administrative aspects of the transition. His term will expire after two years, and he cannot seek reelection. Director B is recognized as an expert in corporate finance. His presence on the Controlled board is intended to reassure the financial markets by providing a sense of continuity. His term will expire after six years, at which time he may seek reelection. Both directors are officers of Distributing, but neither will be an officer or employee of Controlled.

Apart from the issue of whether the business purpose requirement of § 1.355-2(b) is satisfied, the distribution meets all of the requirements of § 355.

LAW

Section 355 provides that if certain requirements are met, a corporation may distribute stock and securities in a controlled corporation to its shareholders and security holders without causing the distributing corporation or the distributees to recognize gain or loss.

To qualify as a distribution described in § 355, a distribution must, in addition to satisfying the statutory requirements of § 355, satisfy certain requirements in the regulations, including the business purpose requirement. Section 1.355-2(b)(1) provides that a distribution must be motivated, in whole or substantial part, by one or more corporate business purposes. A corporate business purpose is a real and substantial non-federal tax purpose germane to the business of the distributing corporation, the controlled corporation, or the affiliated group to which the distributing corporation belongs. Section 1.355-2(b)(2). The principal reason for the business purpose requirement is to provide nonrecognition treatment only to distributions that are incident to readjustments of corporate structures required by business exigencies and that effect only readjustments of continuing interests in property under modified corporate forms. Section 1.355-2(b)(1). If a corporate business purpose can be achieved through a nontaxable transaction that does not involve the distribution of stock of a controlled corporation and that is neither impractical nor unduly expensive, then the separation is not carried out for that corporate business purpose. Section 1.355-2(b)(3).

ANALYSIS

The distribution of Controlled stock by Distributing to Distributing's shareholders will enable Distributing's senior management to concentrate its efforts on the software business, which it believes presents better opportunities for growth, and allow the management of the paper products business to secure for that business the management resources needed for its full development. There is no other nontaxable transaction that would permit Distributing's senior management to concentrate on the software business and permit the paper products business to have a senior management that adequately serves that business, and it is expected that the separation of the two businesses will enhance the success of each business in a real and substantial way.

Although the continuing relationship between Distributing and Controlled evidenced by the two common directors appears inconsistent with the assertion that the software business and the paper products business require independent management teams, this relationship does not conflict with the business purpose for the separation. Director A will serve for only a short period and will further that purpose by aiding in the creation of two independently administered operations. Director B will assist the separation by calming market concerns that might otherwise adversely affect one or both businesses. Further, the two directors together constitute only a minority of each board.

Hence, the distribution of Controlled stock by Distributing to Distributing's shareholders is motivated in whole or substantial part by a real and substantial non-federal tax purpose germane to the businesses of Distributing and Controlled and satisfies the corporate business purpose requirement of § 1.355-2(b).

HOLDING

In the situation described above, the distribution of the stock of a controlled corporation by a distributing corporation to enable the management of each corporation to concentrate on its own business satisfies the business purpose requirement of § 1.355-2(b).

DRAFTING INFORMATION

The principal author of this revenue ruling is Richard M. Heinecke of the Office of Associate Chief Counsel (Corporate). For further information regarding this revenue ruling, contact Mr. Heinecke at (202) 622-7930 (not a toll-free call).

Rev. Rul. 2003-75

Section 355 capital allocation ruling. Where two different businesses within the same corporate group are competing for limited capital, the separation of these businesses to resolve the capital allocation problem satisfies the business purpose requirement of section 1.355-2(b) of the regulations.

ISSUE

Whether, in the situation described below, the distribution of the stock of a controlled corporation to resolve a capital allocation problem between the distributing and controlled corporations satisfies the business purpose requirement of § 1.355-2(b) of the Income Tax Regulations.

FACTS

Distributing is a publicly traded corporation that conducts a pharmaceuticals business. Controlled, a wholly owned subsidiary of Distributing, conducts a cosmetics business. One shareholder, who does not actively participate in the management or operations of Distributing or Controlled, owns six percent of the outstanding Distributing stock.

The pharmaceuticals business develops, manufactures, and markets specialty drugs. It is a high-margin business that emphasizes rapid growth through innovation. The cosmetics business develops, manufactures, and markets cosmetics. It is a low-margin business that grows at a moderate rate by increasing its productivity and market share. Both businesses require substantial capital for reinvestment and research and development.

Distributing does all of the borrowing for both Distributing and Controlled and makes all decisions regarding the allocation of capital spending between the pharmaceuticals and cosmetics businesses. Because Distributing's capital spending in recent years for both the pharmaceuticals and cosmetics businesses has outpaced internally generated cash flow from the businesses, it has had to limit total expenditures to maintain its credit ratings. Although the decisions reached by Distributing's senior management regarding the allocation of capital spending usually favor the pharmaceuticals business due to its higher rate of growth and profit margin, the competition for capital prevents both businesses from consistently pursuing development strategies that the management of each business believes are appropriate.

To eliminate this competition for capital, Distributing distributes the Controlled stock to Distributing's shareholders, pro rata. Because the total capital available to the two businesses would continue to be limited as long as the two businesses remained within the same corporate group, there is no other nontaxable transaction that would solve the competition problem. It is expected that both businesses will benefit from the separation, and that the cosmetics business will benefit in a real and substantial way as a result of increased control over its capital spending and direct access to the capital markets.

To facilitate the separation, Distributing and Controlled will enter into transitional agreements that relate to information technology, benefits administration, and accounting and tax matters. Other than the tax matters agreement, each agreement will terminate after two years absent extraordinary circumstances, in which case the affected agreement may be extended on arm's-length terms for a limited period. Following the separation, there will be no cross-guarantee or cross-collateralization of debt between Distributing and Controlled, and an arm's-length loan from Distributing to Controlled for working capital will have a term of two years.

Apart from the issue of whether the business purpose requirement of § 1.355-2(b) is satisfied, the distribution meets all the requirements of § 355.

LAW

Section 355 provides that if certain requirements are met, a corporation may distribute stock and securities in a controlled corporation to its shareholders and security holders without causing the distributing corporation or the distributees to recognize gain or loss.

To qualify as a distribution described in § 355, a distribution must, in addition to satisfying the statutory requirements of § 355, satisfy certain requirements in the regulations, including the business purpose requirement. Section 1.355-2(b)(1) provides that a distribution must be motivated, in whole or substantial part, by one or more corporate business purposes. A corporate business purpose is a real and substantial non-federal tax purpose germane to the business of the distributing corporation, the controlled corporation, or the affiliated group to which the distributing corporation belongs. Section 1.355-2(b)(2). The principal reason for the business purpose requirement is to provide nonrecognition treatment only to distributions that are incident to readjustments of corporate structures required by business exigencies and that effect only readjustments of continuing interests in property under modified corporate forms. Section 1.355-2(b)(1). If a corporate business purpose can be achieved through a nontaxable transaction that does not involve the distribution of stock of a controlled corporation and that is neither impractical nor unduly expensive, then the separation is not carried out for that corporate business purpose. Section 1.355-2(b)(3).

ANALYSIS

The operation of the pharmaceuticals business and the cosmetics business within the same corporate group causes capital allocation problems that prevent each business from pursuing the development strategies most appropriate to its operation. The separation of the two businesses is the only nontaxable transaction that will resolve these problems. It is expected that both businesses will benefit from the separation, and that the separation will enhance the success of the cosmetics business in a real and substantial way.

The limited continuing relationship between Distributing and Controlled evidenced by the various administrative agreements and the loan for working capital is not incompatible with the extent of separation contemplated by § 355. The administrative agreements, except for the tax matters agreement, and the loan are transitional and short-term, and all are designed to facilitate, rather than impede, the separation of the pharmaceuticals business from the cosmetics business.

Hence, the distribution of Controlled stock by Distributing to Distributing's shareholders is motivated in whole or substantial part by a real and substantial non-federal tax purpose germane to the business of Controlled and satisfies the corporate business purpose requirement of § 1.355-2(b).

HOLDING

In the situation described above, the distribution of the stock of a controlled corporation to resolve a capital allocation problem between the distributing and controlled corporations satisfies the business purpose requirement of § 1.355-2(b).

DRAFTING INFORMATION

The principal author of this revenue ruling is Richard M. Heinecke of the Office of Associate Chief Counsel (Corporate). For further information regarding this revenue ruling, contact Mr. Heinecke at (202) 622-7930 (not a toll-free call).

Rev. Rul. 2003-79

Section 355 reverse Morris trust. The acquisition by an unrelated corporation of all the assets of a newly formed controlled corporation following distribution of the controlled corporation's stock under section 355 will satisfy the "substantially all" requirement of section 368(a)(1)(C) even though the acquired assets represent only half of the assets held by the distributing corporation before it formed the controlled corporation.

ISSUE

Whether the acquisition by an unrelated corporation of all the assets of a newly formed controlled corporation following the distribution of the stock of the controlled corporation by a distributing corporation will satisfy the requirement of § 368(a)(1)(C) of the Internal Revenue Code that substantially all of the properties of the acquired corporation be acquired where the assets of the controlled corporation represent less than substantially all of the assets that the distributing corporation held before it formed the controlled corporation.

FACTS

D, a domestic corporation, directly conducts Business X and Business Y. D's assets are equally divided between the two businesses. A, a domestic corporation unrelated to D, conducts Business X and wishes to acquire D's Business X, but not D's Business Y.

To accomplish the acquisition, D and A agree to undertake the following steps in the following order: (i) D will transfer its Business X assets to C, a newly formed domestic corporation, in exchange for 100 percent of the stock of C, (ii) D will distribute the C stock to D's shareholders, (iii) A will acquire all the assets of C in exchange solely for voting stock of A, and (iv) C will liquidate. Apart from the question of whether the acquisition of C's assets by A will satisfy the requirement of § 368(a)(1)(C) that the acquiring corporation acquire substantially all of the properties of the acquired corporation, steps (i) and (ii) together meet all the requirements of § 368(a)(1)(D), step (ii) meets all the requirements of § 355(a), and steps (iii) and (iv) together meet all the requirements of § 368(a)(1)(C).

LAW

Section 355 provides that if certain requirements are met, a corporation may distribute stock and securities in a controlled corporation to its shareholders and security holders without causing the distributees to recognize gain or loss.

Section 368(a)(1)(C) defines a reorganization to include the acquisition by one corporation, in exchange solely for all or a part of its voting stock, of substantially all of the properties of another corporation.

Section 368(a)(1)(D) defines a reorganization to include a transfer by a corporation of all or a part of its assets to another corporation if immediately after the transfer the transferor, or one or more of its shareholders (including persons who were shareholders immediately before the transfer), or any combination thereof, is in control of the corporation to which the assets are transferred; but only if, in pursuance of the plan, stock or securities of the corporation to which the assets are transferred are distributed in a transaction that qualifies under § 354, 355, or 356.

In Helvering v. Elkhorn Coal Co., 95 F.2d 732 (4th Cir. 1937), cert. denied, 305 U.S. 605, reh'g denied, 305 U.S. 670 (1938), Elkhorn Coal, in anticipation of being acquired by Mill Creek, transferred part of its operating assets to a newly formed subsidiary and distributed the subsidiary's stock to Elkhorn Coal's shareholders. The court concluded that the distribution of subsidiary stock prevented the subsequent acquisition from qualifying under a predecessor of § 368(a)(1)(C) because, as a result of the distribution, Mill Creek did not acquire substantially all of Elkhorn Coal's historical assets.

In Commissioner v. Mary Archer W. Morris Trust, 367 F.2d 794 (4th Cir. 1966), aff'g 42 T.C. 779 (1964), the taxpayer, in anticipation of a merger with a national bank, contributed its insurance business to a new subsidiary and distributed the subsidiary's stock to its shareholders. The divestiture was necessary to comply with national banking laws. The court held that the distribution satisfied the requirements for nonrecognition under § 355(a) and, therefore, that the contribution qualified as a reorganization under § 368(a)(1)(D).

In Rev. Rul. 68-603, 1968-2 C.B. 148, the Internal Revenue Service announced that it would follow the decision in Mary Archer W. Morris Trust to the extent it held that (1) the active business requirements of § 355(b)(1)(A) were satisfied even though the distributing corporation, immediately after the spin-off, merged into the unrelated acquiring corporation, (2) the control immediately after requirement of § 368(a)(1)(D) implies no limitation upon a reorganization of the transferor corporation (the distributing corporation) after the distribution of the stock of the controlled corporation, and (3) there was a business purpose for the spin-off and the merger.

Rev. Rul. 98-27, 1998-1 C.B. 1159, states that the Service will not apply any formulation of the step transaction doctrine to determine whether the distributed corporation was a controlled corporation immediately before a distribution under § 355(a) solely because of any post-distribution acquisition or restructuring of the distributed corporation, whether prearranged or not. The holding of Rev. Rul. 98-27 is based on § 1012(a) and § 1012(c) of the Taxpayer Relief Act of 1997 (the “1997 Act”), Pub. L. No. 105-34, 111 Stat. 788, 916-17. Section 1012(c) amended the control requirements of §§ 368(a)(1)(D) and 351 to provide that, generally for transactions seeking qualification after August 5, 1997, under either provision and § 355, the shareholders of the distributing corporation must own stock possessing more than 50 percent of the voting power and more than 50 percent of the total value of the controlled corporation's stock immediately after the distribution. See §§ 368(a)(2)(H) and 351(c). Section 1012(a) amended § 355 by adding subsection (e), which provides rules for the recognition of gain on certain distributions of stock or securities of a controlled corporation in connection with acquisitions of stock representing a 50 percent or greater interest in the distributing corporation or any controlled corporation.

The Conference Report accompanying the 1997 Act states, in part, that:

The . . . bill does not change the present-law requirement under section 355 that the distributing corporation must distribute 80 percent of the voting power and 80 percent of each other class of stock of the controlled corporation. It is expected that this requirement will be applied by the Internal Revenue Service taking account of the provisions of the proposal regarding plans that permit certain types of planned restructuring of the distributing corporation following the distribution, and to treat similar restructurings of the controlled corporation in a similar manner. Thus, the 80-percent control requirement is expected to be administered in a manner that would prevent the tax-free spin-off of a less-than-80-percent controlled subsidiary, but would not generally impose additional restrictions on post-distribution restructurings of the controlled corporation if such restrictions would not apply to the distributing corporation.

H.R. Rep. No. 105-220, at 529-30 (1997); 1997-4 C.B. 1457, at 1999-2000.

Section 6010(c)(2) of the Internal Revenue Service Restructuring and Reform Act of 1998 (the “1998 Act”), P.L. 105-206, 1998-3 C.B. 145, amended § 1012(c) of the 1997 Act to provide that, in the case of a § 368(a)(1)(D) or § 351 transaction that is followed by a § 355 transaction, solely for purposes of determining the tax treatment of any transfer of property by the distributing corporation to the controlled corporation, the fact that the shareholders of the distributing corporation dispose of part or all of the controlled corporation's stock after the § 355 distribution shall not be taken into account in determining whether the control requirement of either § 368(a)(1)(D) or § 351 has been satisfied.

The Senate Report accompanying the 1998 Act contains three examples in which distributing corporation D transfers appreciated business X to newly created subsidiary C in exchange for at least 85 percent of the C stock and then distributes its C stock to the D shareholders. As part of the same plan, C then merges into unrelated acquiring corporation A. Each example concludes that if the distribution satisfies the requirements of § 355, the control immediately after requirement will be satisfied solely for purposes of determining the tax treatment of the transfer of business X by D to C. See S. Rep. No. 105-174, at 173-176 (1998); 1998-3 C.B. 537, at 709-712.

ANALYSIS

Section 1012 of the 1997 Act, as amended by § 6010(c) of the 1998 Act, evidences the intention of Congress that a corporation formed in connection with a distribution that qualifies for nonrecognition under § 355 will be respected as a separate corporation for purposes of determining (i) whether the corporation was a controlled corporation immediately before the distribution and (ii) whether a pre-distribution transfer of property to the controlled corporation satisfies the requirements of § 368(a)(1)(D) or § 351, even if a post-distribution restructuring causes the controlled corporation to cease to exist. See Rev. Rul. 98-44, 1998-2 C.B. 315; Rev. Rul. 98-27, supra; S. Rep. No. 105-174, supra. Therefore, the controlled corporation should also be considered independently from the distributing corporation in determining whether an acquisition of the controlled corporation will qualify as a reorganization under § 368. Accordingly, in determining under § 368(a)(1)(C) whether an acquiring corporation has acquired substantially all of the properties of a newly formed controlled corporation, reference should be made solely to the properties held by the controlled corporation immediately following the distributing corporation's transfer of properties to the controlled corporation, rather than to the properties held by the distributing corporation immediately before its formation of the controlled corporation.

Hence, the acquisition by A of all the properties held by C immediately after the distribution will satisfy the requirement of § 368(a)(1)(C) that A acquire substantially all the properties of C. This result obtains even though an acquisition by A of the same properties from D would have failed this requirement if D had retained Business X, contributed Business Y to C, and distributed the stock of C. See Helvering v. Elkhorn Coal Co., supra.

HOLDING

The acquisition by an unrelated corporation of all the assets of a newly formed controlled corporation following the distribution of the stock of the controlled corporation by a distributing corporation will satisfy the requirement of § 368(a)(1)(C) that substantially all of the properties of the acquired corporation be acquired where the assets of the controlled corporation represent less than substantially all of the assets that the distributing corporation held before it formed the controlled corporation.

DRAFTING INFORMATION

The principal author of this revenue ruling is Gene Raineri of the Office of Associate Chief Counsel (Corporate). For further information regarding this revenue ruling, please contact Mr. Raineri at (202) 622-7530 (not a toll-free call).

Rev. Rul. 2003-87

LIFO; price indexes; department stores. The May 2003 Bureau of Labor Statistics price indexes are accepted for use by department stores employing the retail inventory and last-in, first-out inventory methods for valuing inventories for tax years ended on, or with reference to, May 31, 2003.

The following Department Store Inventory Price Indexes for May 2003 were issued by the Bureau of Labor Statistics. The indexes are accepted by the Internal Revenue Service, under § 1.472-1(k) of the Income Tax Regulations and Rev. Proc. 86-46, 1986-2 C.B. 739, for appropriate application to inventories of department stores employing the retail inventory and last-in, first-out inventory methods for tax years ended on, or with reference to, May 31, 2003.

The Department Store Inventory Price Indexes are prepared on a national basis and include (a) 23 major groups of departments, (b) three special combinations of the major groups — soft goods, durable goods, and miscellaneous goods, and (c) a store total, which covers all departments, including some not listed separately, except for the following: candy, food, liquor, tobacco, and contract departments.

BUREAU OF LABOR STATISTICS, DEPARTMENT STORE INVENTORY PRICE INDEXES BY DEPARTMENT GROUPS (January 1941 = 100, unless otherwise noted)
Groups May 2002 May 2003 Percent Change from May 2002 to May 20031
1. Piece Goods 490.1 456.3 -6.9
2. Domestics and Draperies 586.9 557.6 -5.0
3. Women's and Children's Shoes 647.5 637.0 -1.6
4. Men's Shoes 924.6 855.8 -7.4
5. Infants' Wear 614.9 599.6 -2.5
6. Women's Underwear 542.9 519.8 -4.3
7. Women's Hosiery 345.4 349.5 1.2
8. Women's and Girls' Accessories 558.0 550.2 -1.4
9. Women's Outerwear and Girls' Wear 386.7 374.5 -3.2
10. Men's Clothing 597.7 562.3 -5.9
11. Men's Furnishings 602.1 587.2 -2.5
12. Boys' Clothing and Furnishings 495.5 463.5 -6.5
13. Jewelry 901.3 877.9 -2.6
14. Notions 797.6 789.7 -1.0
15. Toilet Articles and Drugs 975.0 979.7 0.5
16. Furniture and Bedding 626.4 620.2 -1.0
17. Floor Coverings 620.1 578.9 -6.6
18. Housewares 758.4 730.9 -3.6
19. Major Appliances 220.7 213.7 -3.2
20. Radio and Television 50.4 45.9 -8.9
21. Recreation and Education2 86.9 83.4 -4.0
22. Home Improvements2 125.4 126.1 0.6
23. Auto Accessories2 110.9 111.6 0.6
         
Groups 1-15: Soft Goods 586.0 568.1 -3.1
Groups 16-20: Durable Goods 413.1 397.1 -3.9
Groups 21-23: Misc. Goods2 96.8 94.7 -2.2
       
  Store Total3 522.3 506.0 -3.1
         
1 Absence of a minus sign before the percentage change in this column signifies a price increase.
2 Indexes on a January 1986 = 100 base.
3 The store total index covers all departments, including some not listed separately, except for the following: candy, food, liquor, tobacco and contract departments.

DRAFTING INFORMATION

The principal author of this revenue ruling is Michael Burkom of the Office of Associate Chief Counsel (Income Tax and Accounting). For further information regarding this revenue ruling, contact Mr. Burkom at (202) 622-7718 (not a toll-free call).

Rev. Rul. 2003-80

Statute of limitations, bankruptcy. This ruling explains the effect of a bankruptcy on the running of the statute of limitations on assessment set forth in section 6501 of the Code. The ruling illustrates that when the IRS issues a Notice of Deficiency less than 90 days before the taxpayer files a bankruptcy petition, the same day the taxpayer files a bankruptcy petition, or after the taxpayer files a bankruptcy petition, and before the termination of the automatic stay imposed by the bankruptcy, the assessment period is suspended not only by the 60-day period provided by section 6503(a), but also by the additional 60-day period provided by section 6213(f).

ISSUE

How is the running of the period of limitations for assessing a deficiency affected when the Internal Revenue Service (Service) issues a Notice of Deficiency before or after the taxpayer files a bankruptcy petition?

FACTS

The issue presented arises in the three different situations described below. In each situation, the taxpayer files a bankruptcy petition on Date 1, and the automatic stay terminates on Date 2, the 100th day after Date 1. Also, the Notice of Deficiency is not addressed to a person outside the United States, and the taxpayer does not file a Tax Court petition for redetermination of the deficiency.

Situation A. The Service issues a Notice of Deficiency on or after Date 1 and before the termination of the automatic stay on Date 2.

Situation B. The Service issues a Notice of Deficiency less than 90 days before Date 1.

Situation C. The Service issues a Notice of Deficiency 90 or more days before Date 1.

LAW AND ANALYSIS

Section 362 of title 11 of the United States Code (Bankruptcy Code) provides that certain acts are automatically stayed upon the filing of a bankruptcy petition. Section 362 does not stay the issuance of a Notice of Deficiency or the assessment of a tax by the Service. 11 U.S.C. § 362(b)(9)(B), (D). Section 362 does, however, stay the commencement or continuation of a Tax Court proceeding concerning the debtor. 11 U.S.C. § 362(a)(8). Pursuant to section 362(c)(2), the stay terminates upon the earliest of the time the bankruptcy case is closed, the time the case is dismissed, or the time a discharge is granted or denied.

Section 6501(a) of the Internal Revenue Code generally affords the Service three years from the time a return is filed to assess the tax for the return period. Under section 6503(a)(1) of the Internal Revenue Code, the running of the section 6501(a) assessment period is suspended for any period during which the Service is prohibited from making an assessment (and in any event, if a proceeding in respect of the deficiency is placed on the docket of the Tax Court, until the decision of the Tax Court becomes final), and for 60 days thereafter.

Section 6213(a) generally affords the taxpayer 90 days from the time a Notice of Deficiency is issued to file a Tax Court petition for redetermination of the deficiency. In addition, section 6213(a) prohibits the Service from assessing the deficiency during the 90-day period. Section 6213(f) suspends the running of the 90-day period while the taxpayer is prohibited by reason of the bankruptcy case from filing a petition in the Tax Court with respect to the deficiency, and for 60 days thereafter.

Section 6503(h)(1) provides that the running of the period of limitations on assessment is suspended while the Service is prohibited by a bankruptcy case from making the assessment, and for 60 days thereafter. Prior to 1994, section 362(a)(6) of the Bankruptcy Code, which generally prohibits assessment of claims against a debtor, operated to prevent the Service from assessing taxes for the period the stay was in effect. Section 362(b)(9)(D), which provides that the filing of a bankruptcy petition does not stay the making of tax assessments, was added to the Bankruptcy Code by section 116 of the Bankruptcy Reform Act of 1994, Pub. L. No. 103-394, 108 Stat. 4106 (1994), and is effective with regard to bankruptcy cases commenced on or after October 22, 1994. With the addition of section 362(b)(9)(D), the Service is no longer precluded solely by the automatic stay from assessing taxes during the pendency of bankruptcies. Thus, section 6503(h)(1) no longer has any impact on the running of the assessment period.

The following situations illustrate the application of these provisions.

Situation A. The Service issues a Notice of Deficiency on or after the day on which the bankruptcy petition is filed (Date 1) and before the termination of the automatic stay on Date 2.

Under section 362(a)(8) of the Bankruptcy Code, a Tax Court proceeding cannot be commenced while the automatic stay is in effect. Under section 6213(f), the running of the 90-day period for filing a Tax Court petition is suspended while the automatic stay prevents the filing of a Tax Court petition, and for 60 days thereafter. Thus, the 90-day period for filing a Tax Court petition begins to run 61 days after Date 2. The period for filing a Tax Court petition ends on Date 3A, 150 (60+90) days after Date 2.

Under section 6213(a), the Service is prohibited from making an assessment during the period from issuance of the Notice of Deficiency through Date 3A, the last day for filing a Tax Court petition. Under section 6503(a)(1), the running of the period of limitations on assessment is suspended during this period. Also, under section 6503(a)(1), because no Tax Court petition was filed, the running of the period of limitations on assessment is further suspended for an additional 60 days after Date 3A. On the next day, which is 61 days after Date 3A and 211 (60+90+61) days after Date 2, any portion of the assessment period that had not run when the Notice of Deficiency was issued begins to run.

Situation B. The Service issues a Notice of Deficiency less than 90 days before the day on which the bankruptcy petition is filed (Date 1). In the discussion below, assume that the Notice of Deficiency is issued 10 days before Date 1.

As in Situation A, a Tax Court proceeding cannot be commenced while the automatic stay is in effect, and the running of the period for filing a Tax Court petition is suspended under section 6213(f) while the automatic stay prevents the filing of a Tax Court petition, and for 60 days thereafter. Here, however, only 80 days of the 90-day period for filing a Tax Court petition remain as of Date 1. Thus, the 80-day period remaining for filing a Tax Court petition begins to run 61 days after the termination of the automatic stay on Date 2. The period for filing a Tax Court petition ends on Date 3B, 140 (60+80) days after Date 2. This is 240 (100+60+80) days after Date 1, the date on which the bankruptcy petition was filed.

Under section 6213(a), the Service is prohibited from making an assessment during the period from issuance of the Notice of Deficiency through Date 3B, the last day for filing a Tax Court petition. Under section 6503(a)(1), the running of the period of limitations on assessment is suspended during this period. Also, under section 6503(a)(1), because no Tax Court petition was filed, the running of the period of limitations on assessment is further suspended for an additional 60 days after Date 3B. On the next day, which is 61 days after Date 3B, 201 (60+80+61) days after Date 2, and 301 (100+60+80+61) days after Date 1, the portion of the assessment period that had not run when the Notice of Deficiency was issued begins to run.

Situation C. The Service issues a Notice of Deficiency 90 or more days before the day on which the bankruptcy petition is filed (Date 1).

Since the 90-day period for filing a Tax Court petition expired before the filing of the bankruptcy petition, the Service may assess the deficiency at any time after the expiration of the 90-day period, including while the automatic stay is in effect. See section 362(b)(9)(D) of the Bankruptcy Code. Section 6213(f) does not apply because the 90-day period for filing a Tax Court petition expired before the filing of the bankruptcy petition. The bankruptcy case has no effect on the running of the period of limitations on assessment or on the suspension of the running of this period under section 6503(a)(1).

HOLDING

The timing of the issuance of a Notice of Deficiency and the filing of a bankruptcy petition determines whether and how the running of the period of limitations on assessment is affected by the bankruptcy. When the Notice of Deficiency is issued on or after the day on which the bankruptcy commences and before the termination of the automatic stay, or is issued less than 90 days before the bankruptcy commences (Situations A and B, respectively), the bankruptcy has an effect on the running of the period of limitations on assessment because of the application of section 362(a)(8) of the Bankruptcy Code and section 6213(a) and (f) of the Internal Revenue Code. When the Notice of Deficiency is issued 90 or more days before the bankruptcy commences (Situation C), the running of the period of limitations on assessment is not affected by the bankruptcy.

DRAFTING INFORMATION

The principal author of this revenue ruling is Debra A. Kohn of the Office of the Associate Chief Counsel (Procedure and Administration), Collection, Bankruptcy & Summonses Division. For further information regarding this revenue ruling, contact Branch 2 of Collection, Bankruptcy & Summonses at (202) 622-3620 (not a toll-free call).

Part III. Administrative, Procedural, and Miscellaneous

Notice 2003-45

Extension of Time to Elect Mid-quarter Convention Relief Under Notice 2001-70 and Notice 2001-74.

This notice amplifies the tax relief granted in Notice 2001-70, 2001-2 C.B. 437 (November 5, 2001), and in Notice 2001-74, 2001-2 C.B. 551 (December 3, 2001), by permitting an automatic extension of time to make the election provided under Notice 2001-70 and Notice 2001-74.

Section 168(d)(3) of the Internal Revenue Code generally provides that, except as provided in regulations, if the aggregate basis of property placed in service during the last three months of the taxable year exceeds 40 percent of the aggregate basis of property (other than property described in § 168(d)(3)(B)) placed in service during the taxable year, the applicable depreciation convention is the mid-quarter convention for all property (other than property described in § 168(d)(2)) subject to § 168 that is placed in service during the taxable year.

In Notice 2001-70, the Treasury Department and the Internal Revenue Service announced their intention to issue regulations permitting taxpayers to elect not to apply the mid-quarter convention rules contained in § 168(d)(3) to property placed in service in the taxable year that included September 11, 2001, if the third quarter of the taxpayer's taxable year included September 11, 2001. Notice 2001-70 provided that, pending the issuance of the regulations, an eligible taxpayer that wished to elect not to apply the mid-quarter convention rules could make the election by writing “Election Pursuant to Notice 2001-70” across the top of the taxpayer's Form 4562, Depreciation and Amortization, for the taxpayer's taxable year that included September 11, 2001. Notice 2001-74 expanded Notice 2001-70 by permitting taxpayers to elect not to apply the mid-quarter convention rules to property placed in service in the taxable year that included September 11, 2001, if the fourth quarter of the taxpayer's taxable year included September 11, 2001. Notice 2001-74 also provided guidance for taxpayers that file Form 2106, Employee Business Expenses, rather than Form 4562, or that file their tax returns electronically, to elect not to apply the mid-quarter convention rules. Under both notices, the election was required to be made on the taxpayer's tax return for the taxable year that included September 11, 2001. No provision was made for an eligible taxpayer wishing to amend its tax return to make the election.

Treasury and the Service have been made aware that certain taxpayers did not receive notice of the availability of this election until after the tax returns for their taxable year that included September 11, 2001, were filed. This notice is intended to relieve taxpayers of the burden of applying for an extension of time pursuant to § 301.9100-3 of the Procedure and Administration Regulations to make the election on an amended tax return for that year.

Accordingly, Notice 2001-70 and Notice 2001-74 are amplified to provide that a taxpayer qualifying under either notice who filed a timely tax return for the taxable year that includes September 11, 2001, but failed to make the election provided under Notice 2001-70 or Notice 2001-74, is granted an automatic extension of time until December 31, 2003, to amend its tax return for the taxable year that includes September 11, 2001, and any subsequent taxable years, in order to make the election under Notice 2001-70 or Notice 2001-74 and reflect any necessary adjustments resulting from the election. For example, a sole proprietor that timely filed its 2001 and 2002 twelve-month calendar year tax returns and qualified under Notice 2001-70 to elect not to apply the mid-quarter convention rules for its taxable year ending December 31, 2001, would be granted an automatic extension of time until December 31, 2003, to make the election on an amended 2001 tax return and reflect any necessary adjustments resulting from the election, as well as amend its 2002 tax return to reflect any necessary adjustments resulting from the election. The election on the amended tax return is made in the same manner provided in Notice 2001-70 and in Notice 2001-74.

Treasury and the Service intend to amend the regulations under § 168 to incorporate the guidance set forth in this notice. Until the regulations are amended, taxpayers may rely on the guidance set forth in this notice.

The principal author of this notice is Bernard P. Harvey of the Office of Associate Chief Counsel, Passthroughs and Special Industries. For further information regarding this notice, contact Mr. Harvey at (202) 622-3110 (not a toll-free call).

Rev. Proc. 2003-48

SECTION 1. PURPOSE

This revenue procedure modifies and amplifies Rev. Proc. 96-30, 1996-1 C.B. 696, which sets forth in a checklist questionnaire the information that must be included in a request for a ruling under § 355 of the Internal Revenue Code. In addition, this revenue procedure modifies Rev. Proc. 2003-3, 2003-1 I.R.B. 113, which sets forth the areas of the Internal Revenue Code under the jurisdiction of the Associate Chief Counsel (Corporate), the Associate Chief Counsel (Financial Institutions and Products), the Associate Chief Counsel (Income Tax and Accounting), the Associate Chief Counsel (Passthroughs and Special Industries), the Associate Chief Counsel (Procedure and Administration), and the Division Counsel/Associate Chief Counsel (Tax Exempt and Government Entities) relating to issues on which the Internal Revenue Service will not issue letter rulings or determination letters.

SECTION 2. BACKGROUND

Section 355(a) applies to distributions of stock or securities of a corporation controlled by the distributing corporation if the requirements of § 355 are satisfied. Rev. Proc. 96-30 sets forth in a checklist questionnaire the information that must be included in a request for rulings under § 355.

Section 1.355-2(b) of the Income Tax Regulations provides that to qualify as a distribution described in § 355, a distribution must not only satisfy the statutory requirements of § 355, but also must satisfy certain requirements in the regulations, including the business purpose requirement. Section 1.355-2(b)(1) provides that a distribution must be motivated, in whole or substantial part, by one or more corporate business purposes. A corporate business purpose is a real and substantial non-federal tax purpose germane to the business of the distributing corporation, the controlled corporation, or the affiliated group to which the distributing corporation belongs. Section 1.355-2(b)(2). Section 4.04 and Appendix A of Rev. Proc. 96-30 provide guidelines and request certain information and representations regarding whether a distribution satisfies the business purpose requirement.

Section 355(a)(1)(B) provides that a distribution will not qualify for nonrecognition treatment under § 355 if it is used principally as a device for the distribution of the earnings and profits of the distributing corporation, the controlled corporation, or both. Generally, the determination of whether a transaction was used principally as a device will be made from all the facts and circumstances, including, but not limited to, the presence of certain device and nondevice factors. Section 1.355-2(d)(1). Section 4.05 of Rev. Proc. 96-30 requests certain information and representations regarding whether a distribution is used principally as a device.

Section 355(e) provides that the stock of a controlled corporation will not be qualified property under § 355(c)(2) or § 361(c)(2) if the stock is distributed as “part of a plan (or series of related transactions) pursuant to which 1 or more persons acquire directly or indirectly stock representing a 50-percent or greater interest in the distributing corporation or any controlled corporation.” See § 355(e)(2)(A)(ii). For this purpose, a 50-percent or greater interest means stock possessing at least 50 percent of the total combined voting power of all classes of stock entitled to vote or at least 50 percent of the total value of shares of all classes of stock. See § 355(e)(4)(A) (referring to § 355(d)(4) for the definition of 50-percent or greater interest). Section 1.355-7T generally provides that whether a distribution and an acquisition are part of a plan (or series of related transactions) (hereinafter, plan) is determined based on all the facts and circumstances. That section provides a nonexclusive list of factors to consider in determining whether a plan exists, as well as a number of safe harbors that may be relied upon in determining whether a plan exists.

Ordinarily, the Service refrains from issuing letter rulings requesting determinations on issues that are primarily factual. See Rev. Proc. 2003-1, 2003-1 I.R.B. 1, section 7.01, and Rev. Proc. 2003-3, sections 2.01 and 4.02(1). Moreover, it generally is the policy of the Service not to issue “comfort rulings” on transactions the treatment of which is clearly and adequately addressed in published guidance. See Rev. Proc. 2003-1, section 5.17, and Rev. Proc. 2003-3, section 4.02(9). Nonetheless, the Service has not strictly applied its policies of not ruling on factual issues and not issuing comfort rulings in the context of letter ruling requests regarding transactions intended to qualify under § 355.

The Service has concluded that it is appropriate to adhere more closely to its general policies in the context of requests for letter rulings under § 355 and that it can better serve taxpayers by dedicating its resources to increasing the amount of published guidance regarding § 355, including the business purpose requirement, and other legal questions. Thus, this revenue procedure provides that the National Office will not determine whether a proposed or completed distribution of the stock of a controlled corporation is being carried out for one or more corporate business purposes, whether the transaction is used principally as a device, or whether the distribution and an acquisition are part of a plan under § 355(e). Rather, these determinations may be made upon an examination of the taxpayer’s return. Hence, sections 4.01, 4.02, and 4.03 of this revenue procedure require taxpayers seeking a ruling under § 355 to submit representations regarding the business purpose and device requirements and whether there is a plan under § 355(e)(2)(A)(ii). The request for a letter ruling, including representations, must be accompanied by a penalties of perjury statement signed and dated by the taxpayer indicating that the submission contains all the relevant facts relating to the request and such facts are true, correct, and complete. See Rev. Proc. 2003-1, sections 8.01(15) and 10.07(1).

This is a pilot program that applies to ruling requests postmarked or, if not mailed, received after August 8, 2003. This pilot program is intended to operate for at least one year. After that time, the Service may consider further changes, including ruling only on significant issues (as defined in Section 3.01(29) of Rev. Proc. 2003-3) under § 355.

Section 4.05 of this revenue procedure provides that the Service will decline a request for a ruling regarding a proposed or completed transaction if the Service has previously declined to rule on that transaction (or a similar transaction) because the Service was not satisfied that the distribution met the corporate business purpose requirement, was not a device for the distribution of earnings and profits, or was not part of a plan under § 355(e).

Section 4.06 of this revenue procedure provides that the Service will decline a request for a supplemental ruling, unless the request presents a significant issue (as defined in section 3.01(29) of Rev. Proc. 2003-3).

Section 4.01(30) of Rev. Proc. 2003-3 provides that a letter ruling ordinarily will not be issued regarding the issue of whether the active business requirement of § 355(b) is met when the gross assets of the trades or businesses relied on to satisfy that requirement will have a fair market value that is less than 5 percent of the total fair market value of the gross assets of the corporation directly conducting the trades or businesses. Section 4.07 of this revenue procedure modifies Rev. Proc. 2003-3 by deleting section 4.01(30).

SECTION 3. REQUEST FOR COMMENTS

The Service requests comments regarding issues under § 355 that should be addressed in published guidance. Moreover, the Service continues to study language for, and requests comments regarding, § 355(e) representations. Comments should refer to Rev. Proc. 2003-48, and should be submitted to:

P.O. Box 7604Ben Franklin Station Washington, DC 20044Attn: CC:PA:RURoom 5226

or electronically via the Service internet site at: Notice.Comments@irscounsel.treas.gov (the Service comments e-mail address). All comments will be available for public inspection and copying.

SECTION 4. PROCEDURE

.01 Rev. Proc. 96-30 is modified by deleting section 4.04(1) through 4.04(7) and Appendices A and C, and amplified by adding new section 4.04(1) as follows:

(1) Detailed Description. Describe in narrative form each corporate business purpose for the distribution of the stock of Controlled. Do not provide any documentation or substantiation in support thereof. Submit the following REPRESENTATION : The distribution of the stock, or stock and securities, of the controlled corporation is carried out for the following corporate business purposes: [list these corporate business purposes]. The distribution of the stock, or stock and securities, of the controlled corporation is motivated, in whole or substantial part, by one or more of these corporate business purposes. The Service will decline to issue a letter ruling in all cases in which the taxpayer fails to submit the required representation. The National Office will not determine whether the distribution is being carried out for one or more corporate business purposes. This determination may be made upon an examination of the taxpayer’s return.

.02 Rev. Proc. 96-30 is modified by deleting section 4.05(1) through 4.05(5) and amplified by adding new section 4.05(1) as follows:

(1) Dispositions of stock or securities. Submit the following REPRESENTATION : The transaction is not used principally as a device for the distribution of the earnings and profits of the distributing corporation or the controlled corporation or both. See § 355(a)(1)(B). The Service will decline to issue a letter ruling in all cases in which the taxpayer fails to submit the required representation. The National Office will not determine whether the transaction is used principally as a device for the distribution of the earnings and profits of the distributing corporation, the controlled corporation, or both. This determination may be made upon an examination of the taxpayer’s return.

.03 Rev. Proc. 96-30 is amplified by adding new section 4.08(12) as follows:

(12) Distributions in Connection with Acquisitions. Regarding whether there is a plan (or series of related transactions) under § 355(e)(2)(A)(ii), submit one of the following REPRESENTATIONS: (i) There is no acquisition of stock of the distributing corporation or any controlled corporation (including any predecessor or successor of any such corporation) that is part of a plan or series of related transactions (within the meaning of § 1.355-7T) that includes the distribution of the controlled corporation stock; (ii) Each of the following acquisitions of stock of the distributing corporation or any controlled corporation (including any predecessor or successor of any such corporation) is or may be part of a plan or series of related transactions (within the meaning of § 1.355-7T) that includes the distribution of controlled corporation stock: [DESCRIBE ACQUISITIONS HERE]. Taking all of these acquisitions into account, stock representing a 50-percent or greater interest (within the meaning of § 355(d)(4)) in the distributing or controlled corporation (including any predecessor or successor of any such corporation) will not be acquired by any person or persons; or (iii) The distribution is not part of a plan or series of related transactions (within the meaning of § 1.355-7T) pursuant to which one or more persons will acquire directly or indirectly stock representing a 50-percent or greater interest (within the meaning of § 355(d)(4)) in Distributing or Controlled (including any predecessor or successor of any such corporation). If a representation cannot be submitted exactly as requested, an explanation must be given. The taxpayer must submit one of the three representations set forth above (as set forth above or in appropriately modified form to the satisfaction of the Service) before the Service will issue a letter ruling. While the National Office will not determine whether a distribution and an acquisition are part of a plan (or series of related transactions) under § 355(e)(2)(A)(ii), the Service may rule on related significant issues (as defined in section 3.01(29) of Rev. Proc. 2003-3, 2003-1 I.R.B. 113 at 115). The determination of whether a distribution and an acquisition are part of a plan (or series of related transactions) may be made upon an examination of the taxpayer’s return.

.04 Rev. Proc. 96-30 is amplified by adding new section 4.08(13) as follows:

(13) Regulatory filings. Provide copies of any proxy statements, information statements, or prospectuses filed or prepared in connection with the distribution or any related transaction.

.05 Rev. Proc. 96-30 is amplified by adding new section 4.08(14) as follows:

(14) Previously Declined Request for Ruling. The Service will not entertain any ruling request regarding a proposed or completed transaction if the Service has previously declined to rule on that transaction (or a similar transaction) because the Service was not satisfied that the distribution met the corporate business purpose requirement, was not a device for the distribution of earnings and profits, or was not part of a plan (or series of related transactions) under § 355(e).

.06 Rev. Proc. 96-30 is amplified by adding new section 4.08(15) as follows:

(15) Request for Supplemental Ruling. The Service will decline a request for a supplemental letter ruling, unless the request presents a significant issue (as defined in section 3.01(29) of Rev. Proc. 2003-3). A change in circumstances arising after the transaction ordinarily does not present a significant issue.

.07 Rev. Proc. 2003-3, 2003-1 I.R.B. 113, is modified by deleting section 4.01(30).

SECTION 5. EFFECT ON OTHER DOCUMENTS

Rev. Proc. 96-30, 1996-1 C.B. 696, is modified and amplified and Rev. Proc. 2003-3, 2003-1 I.R.B. 113, is modified.

SECTION 6. EFFECTIVE DATE

This revenue procedure applies to all ruling requests postmarked or, if not mailed, received after August 8, 2003. Ruling requests postmarked or received after June 24, 2003, and on or before August 8, 2003, that are not in compliance with Rev. Proc. 2003-1 and Rev. Proc. 96-30 will be, in the sole discretion of the Service, either returned to the taxpayer or treated as being subject to this revenue procedure. Taxpayers, however, may use the guidelines of this revenue procedure in ruling requests filed after June 24, 2003, and on or before August 8, 2003.

SECTION 7. PAPERWORK REDUCTION ACT

The collections of information in this revenue procedure have been reviewed and approved by the Office of Management and Budget (OMB) in accordance with the Paperwork Reduction Act (44 U.S.C. 3507) under control number 1545-1846.

An agency may not conduct or sponsor, and a person is not required to respond to, a collection of information unless the collection of information displays a valid OMB control number.

The collections of information in this revenue procedure are in section 4. This information is required to determine whether a taxpayer would qualify for nonrecognition treatment under this revenue procedure. The collections of information are required to obtain a benefit. The likely respondents are corporations that control another corporation, as well as the management of the corporation the stock of which is being distributed or that controls the corporation the stock of which is being distributed.

The estimated total annual reporting burden is 36,000 hours.

The estimated annual burden per respondent varies from 150 hours to 250 hours, depending on individual circumstances, with an estimated average of 200 hours. The estimated number of respondents is 180.

The estimated annual frequency of responses is on occasion.

Books or records relating to a collection of information must be retained as long as their contents may become material in the administration of any internal revenue tax law. Generally tax returns and tax return information are confidential, as required by 26 U.S.C. 6103.

SECTION 8. DRAFTING INFORMATION

The principal author of this revenue procedure is Richard M. Heinecke of the Office of Associate Chief Counsel (Corporate). For further information regarding this revenue procedure, contact Mr. Heinecke at (202) 622-7930 (not a toll-free call).

Rev. Proc. 2003-49

SECTION 1. PURPOSE

This revenue procedure provides issuers of qualified mortgage bonds, as defined in section 143(a) of the Internal Revenue Code, and issuers of mortgage credit certificates, as defined in section 25(c), with a list of qualified census tracts for each state and the District of Columbia. It modifies and supersedes Rev. Proc. 2003-15, 2003-4 I.R.B. 321.

SECTION 2. CHANGES

This revenue procedure corrects errors found in Rev. Proc. 2003-15, 2003-4 I.R.B. 321. On page 341 of the Internal Revenue Bulletin 2003-4 (“IRB”), census tract 000300 is now under Yellowstone County, Montana. On page 342 of the IRB, census tract 010302 is now under Sarpy County, Nebraska. On page 352 of the IRB, census tracts 000300, 001200, 001500, 001600, 001900, and 002000 are now under Hamilton County, Tennessee.

SECTION 3. BACKGROUND

.01 Section 103(a) of the Code provides that, except as provided in section 103(b), gross income does not include interest on any state or local bond. Section 103(b)(1) provides that section 103(a) shall not apply to any private activity bond that is not a “qualified bond” within the meaning of section 141. Section 141(e) provides that the term “qualified bond” includes any private activity bond if that bond: (1) is a qualified mortgage bond; (2) meets the volume cap requirements under section 146; and (3) meets the applicable requirements under section 147.

.02 Section 143(a)(1) of the Code provides that the term “qualified mortgage bond” means a bond which is issued as part of a “qualified mortgage issue”. Section 143(a)(2)(A) provides that the term “qualified mortgage issue” means an issue by a state or political subdivision thereof of one or more bonds but only if: (i) all proceeds of the issue (exclusive of issuance costs and a reasonably required reserve) are to be used to finance owner occupied residences; (ii) the issue meets the requirements of subsections (c), (d), (e), (f), (g), (h), (i), and (m)(7); (iii) the issue does not meet the private business tests of paragraphs (1) and (2) of section 141(b); and (iv) with respect to amounts received more than 10 years after the date of issuance, repayments of $250,000 or more of principal on financing provided by the issue are used not later than the close of the first semi-annual period beginning after the date the prepayment (or complete repayment) is received to redeem bonds that are part of the issue.

.03 An issue of bonds meets the requirements of subsection (h) of section 143 of the Code only if at least 20 percent of the proceeds of the issue is made available for owner financing of “targeted area residences” for at least 1 year after the date on which owner financing is first made available with respect to targeted area residences. Subsection (h)(2) provides, however, that the amount made available need not exceed 40 percent of the average annual aggregate principal amount of mortgages executed during the immediately preceding 3 calendar years for single-family, owner-occupied residences located in targeted areas within the jurisdiction of the issuing authority.

.04 Targeted area residences are defined in section 143(j)(1)(A) to include residences in a qualified census tract. A “qualified census tract”, according to section 143(j)(2)(A), is a census tract in which 70 percent or more of the families have income that is 80 percent or less of the statewide median family income. Section 143(j)(2)(B) of the Code provides that the determination that a census tract is a “qualified census tract” must be based on the most recent decennial census for which data are available. The last list of qualified census tracts, published in Rev. Proc. 2003-15, 2003-4 I.R.B. 321, was based on the 2000 Census.

.05 Section 6a.103A-2(b)(4)(ii) of the Temporary Income Tax Regulations provides that, with respect to any particular bond issue, the determination that a census tract is a “qualified census tract” may be based upon the decennial census data available 3 months prior to the date of issuance and shall not be affected by official changes to the data during or after that 3-month period.

.06 Section 143(k)(2)(A) of the Code provides that the term “statistical area” means (i) a metropolitan statistical area (“MSA”), and (ii) any county (or the portion thereof) that is not within an MSA.

.07 An MSA is currently defined as an area containing at least one urbanized area with a population of at least 50,000, plus adjacent territory having a high degree of social and economic integration with the core as measured through commuting ties. See Office of Management and Budget (“OMB”), Standards for Defining Metropolitan and Micropolitan Statistical Areas; Notice, 65 FR 249 (December 27, 2000); OMB Bulletin No. 03-04 (June 6, 2003).

.08 A state or local government may elect to exchange all or part of its qualified mortgage bond authority for authority to issue mortgage credit certificates. In general, the recipient of a mortgage credit certificate may claim a federal income tax credit equal to the product of the certificate credit rate and the interest paid or accrued during the tax year on the remaining principal of the certified indebtedness amount. Section 25(c)(2)(A)(iii)(V) of the Code provides that the indebtedness certified by mortgage credit certificates must meet the requirements of section 143(h) concerning the portion of loans to be placed in targeted areas.

.09 The list of qualified census tracts is developed by HUD for publication by the service. HUD's determination is based upon decennial census data received by HUD from the Bureau of the Census.

SECTION 4. APPLICATION

The qualified census tracts for each state and the District of Columbia as listed below are based on the 2000 census. In 2000, the Bureau of the Census has provided data for all areas, not only the metropolitan statistical areas. Thus, the list of qualified census tracts includes tracts in Block Numbering Areas (BNA) in nonmetropolitan counties as well as tracts in Metropolitan Statistical Areas (MSA).

List of Census Tracts by State and County
State and County or County Equivalent Qualified Census Tracts
ALABAMA        
Butler County 953100      
Calhoun County 000500 000600    
Dallas County 996400 996500    
Etowah County 000700 001400    
Houston County 040600      
Jefferson County 000300 000500 000700 001500
  002700 002900 003200 003400
  003900 004500 005101 010100
  010302      
Lauderdale County 010300 010700    
Lee County 040700 040800 041600  
Madison County 000201 001100 001200 001600
  002100 002501    
Mobile County 000401 000402 000600 001200
  001400 001501 001502 002700
  004000 004100 004200 004300
  004600 004800    
Montgomery County 000100 000200 000300 000600
  001000 001100 001200 003000
Perry County 987200      
Russell County 030200 030800    
Tuscaloosa County 011200 011701 011800  
Wilcox County 994700      
         
ALASKA        
Anchorage Municipality 000600 001000    
Bethel Census Area 000100 000300    
Fairbanks North Star Borough 001100 001800    
Kenai Peninsula Borough 000100      
Skagway-Hoonah-Angoon Census Area 000200      
Wade Hampton Census Area 000100      
Yukon-Koyukuk Census Area 000100 000400    
         
ARIZONA        
Apache County 940100 942600 942700 944100
  944200 944300    
Cochise County 000600 000900    
Coconino County 000800 001000 941100 944500
Gila County 940200 940400    
Graham County 940500      
La Paz County 020100 020500    
Maricopa County 061400 092900 103306 107201
  108601 108602 109000 110200
  110701 111202 111203 111602
  112507 112602 112800 113201
  113202 113203 113300 113500
  113601 113700 113800 113900
  114200 114302 114401 114402
  114500 114701 114702 114703
  114800 114900 115200 115300
  115801 115900 116100 116602
  941000 941100    
Mohave County 940400 951700 951800  
Navajo County 940300 941000 942400 944400
  944500 944700 944800  
Pima County 000100 001000 001301 001302
  002100 002300 002400 002601
  002801 002802 003702 003801
  004104 004111 004900 005100
  940600 940700 940800  
Pinal County 941100 941200    
Santa Cruz County 996402      
Yuma County 000301 000302 000401 000402
  000700 001300 011401 011600
         
ARKANSAS        
Craighead County 000602      
Crittenden County 030501 030502    
Jefferson County 001300      
Miller County 020400 020600    
Phillips County 980500      
Pulaski County 000900 001700 002800  
Washington County 010900      
         
CALIFORNIA        
Alameda County 401300 401400 401600 401700
  401800 402100 402200 402500
  402600 402700 402800 402900
  403000 403300 405400 407500
  420400 422800    
Butte County 000604 001000 002800 002900
  003000 003200    
Contra Costa County 328000 365002 379000  
Fresno County 000100 000200 000300 000400
  000500 000600 000700 000800
  000900 001000 001100 001201
  001202 001301 001302 001405
  001500 002000 002100 002300
  002400 002501 002502 002601
  002701 002702 002800 002902
  003001 003102 003300 003400
  004404 004704 004800 005202
  005403 005602 005604 006200
  006500 006801 006802 007100
  007800 008200 008301 008302
  008402      
Humboldt County 000100 000200    
Imperial County 010400 011400 011500 012100
  012302 012400 012500  
Kern County 000200 000300 000400 000600
  001101 001102 001103 001201
  001202 001300 001400 001500
  001600 002000 002100 002200
  002301 002302 002500 002600
  002812 003000 003400 004000
  004102 004402 004500 004700
  004800 004901 005202 005300
  005900 006202 006301 006302
  006401 006402    
Kings County 000300 000900 001002 001100
  001300 001400 001701  
Lake County 000500 000700 000800  
Los Angeles County 104701 106404 117405 117406
  117510 117530 119340 120030
  120101 120102 122410 123203
  123204 123205 123206 123410
  124202 127220 127520 128210
  128302 128303 134305 183520
  183810 183820 186401 190200
  190400 190510 190520 190700
  190800 190901 190902 191000
  191110 191120 191201 191203
  191204 191300 191410 191420
  191500 191610 191620 191710
  191720 191810 191820 192520
  192610 192620 192700 195600
  195710 195720 195802 197300
  197420 197600 197700 199000
  199120 199201 199400 199700
  199800 199900 203100 203200
  203300 203500 203600 203710
  203720 204120 204200 204300
  204410 204420 204600 204700
  204810 204910 205110 205120
  206010 206020 206030 206200
  206300 207100 207300 207710
  208000 208300 208400 208500
  208620 208710 208720 208800
  208902 208903 208904 209101
  209102 209200 209300 209401
  209402 209403 209510 209520
  209810 209820 210010 211110
  211200 211310 211320 211410
  211801 211802 211910 211920
  212100 212202 212203 212204
  212303 212304 212305 212306
  212410 212420 212500 212610
  212620 212900 213201 213202
  213310 213320 213401 213402
  218120 218210 218800 218900
  221110 221120 221220 221301
  221302 221400 221500 221600
  221710 221810 221820 222200
  222500 222600 222700 224010
  224020 224200 224310 224320
  224410 224420 224600 224700
  226000 226410 226420 226700
  227010 227020 228100 228210
  228220 228310 228320 228410
  228420 228500 228600 228710
  228720 228800 228900 229200
  229300 229410 229420 231100
  231210 231220 231300 231600
  231710 231720 231800 231900
  232110 232120 232400 232500
  232600 232700 232800 234900
  235202 236100 236201 236202
  237100 237200 237500 237600
  237710 237720 238310 238320
  239200 239310 239330 239500
  239600 239700 239800 240010
  240020 240200 240300 240400
  240500 240600 240700 240800
  240900 241000 241120 241400
  242100 242200 242300 242600
  242700 243000 243100 265301
  269600 275520 291120 293202
  294700 294810 294820 294830
  294900 296210 296220 297110
  302201 302501 402302 402501
  402702 402801 402802 408800
  432801 432802 433301 433402
  433403 433502 433901 462000
  481714 482303 482304 504102
  530901 531101 531201 531202
  531301 531602 531702 531800
  532605 532606 532700 532800
  532900 533000 533103 533104
  533105 533107 533201 533300
  533401 533403 533501 533503
  533601 533702 533801 533901
  533902 534001 534102 534201
  534301 534404 534405 534406
  535000 535101 535200 535300
  535501 535503 535605 535606
  540000 540202 540400 540502
  540600 540700 541400 541500
  541603 541604 541605 541606
  542601 542602 570203 570304
  570603 571600 572500 572800
  572900 573001 573002 573201
  573202 573300 575101 575102
  575103 575201 575202 575300
  575401 575402 575500 575801
  575802 575803 575901 575902
  576000 576200 576300 576401
  576402 576403 576501 576502
  576503 576901 576902 600100
  600201 600202 600301 600602
  601100 601211 601501 601600
  601700 601802 601900 602105
  602501 602502 602503 900602
  900704 900806 910402 910403
  910501 910502    
Madera County 000601 000602 000800 000900
Mendocino County 011600      
Merced County 000504 001003 001005 001301
  001302 001502 001503 001601
  001602 001901 002201  
Monterey County 001000 001300    
Orange County 074403 074405 074406 074902
  075002 075003 075004 089104
Riverside County 030300 030400 030502 030503
  040203 040204 041500 041600
  041703 041704 042202 042209
  042211 042504 042505 042515
  042710 042723 042800 043006
  043308 043401 043403 043405
  043503 043507 043600 044000
  044101 044503 044506 044507
  044509 044510 044915 045207
  045301 045400 045502 045604
  045605 045705 045706 940100
Sacramento County 000500 000700 000900 001000
  001100 001300 001800 002100
  002700 002800 003700 004203
  004402 004500 004602 004903
  005002 005201 005300 005506
  006202 006400 006600 006702
  006800 007300 007413 007503
  008800 009110    
San Bernardino County 001400 001500 001600 003402
  003700 004201 004202 004700
  004800 004900 005000 005400
  005500 005600 005800 005900
  006202 006302 006401 006402
  006500 006800 006900 007000
  007107 007407 007408 007601
  009400 009800 010014 010402
  010414 940100 940500  
San Diego County 000900 001200 001600 001700
  001800 002201 002202 002301
  002302 002401 002402 002501
  002601 002602 002707 002708
  002709 002710 003302 003303
  003404 003501 003601 003602
  003603 003901 003902 004000
  004100 004501 004502 004600
  004700 004800 004900 005000
  005100 005600 005700 005800
  006200 006600 010012 010013
  010015 010112 010401 010502
  011400 011500 011601 011602
  011802 012500 013103 013206
  014400 015701 015703 015801
  015802 015901 018200 018400
  019501 020009 020207 020212
San Francisco County 010700 011300 011400 011500
  011700 011800 012400 012500
  016100 023103 060300 060502
  060700      
San Joaquin County 000100 000300 000402 000500
  000600 000700 000800 001700
  001900 002200 002300 003308
  003309 003406 003407 004401
San Luis Obispo County 010901      
Santa Barbara County 002304 002403 002404 002702
  002911 002912    
Santa Clara County 500902      
Shasta County 011200 012000    
Siskiyou County 000200      
Stanislaus County 000803 001604 001700 001800
  002100 002200 003802 003906
  003908      
Sutter County 050102 050202    
Trinity County 000300      
Tulare County 000302 000501 000600 000702
  001004 001100 001200 001601
  002008 002202 002601 002800
  002901 003001 003100 003200
  003802 003901 003902 004101
  004102 004200 004300 004400
Ventura County 002300 004301 004706 005002
Yolo County 010101 010203 010501  
Yuba County 040100 040300 040400  
         
COLORADO        
Adams County 007800 007900 008952 009320
  009606      
Arapahoe County 004950 006501 007040 007202
  007300      
Baca County 984600      
Boulder County 012300      
Chaffee County 000100      
Conejos County 974800      
Costilla County 982600 982700    
Crowley County 989600      
Denver County 000600 000702 000800 001101
  001600 001900 002403 002701
  003602 004101 004404 004502
  005103 008313    
El Paso County 002200 002300 002800 002900
  004009 004400 005201 006100
Huerfano County 980600      
Lake County 961600      
Larimer County 000600      
Las Animas County 000100      
Mesa County 000300 000602 000700  
Montezuma County 941000      
Otero County 987700 988000    
Prowers County 000200 000500    
Pueblo County 000200 000600 000700 000800
  001000 001100 001200 001300
  001400 001800 001900 002000
  002100 002200 002300 002400
  002600 002901    
Rio Grande County 976800      
Saguache County 977700      
Weld County 000100 000200 000500 000600
  000701 000800 001002  
         
CONNECTICUT        
Fairfield County 022200 044100 070300 070500
  070600 070900 071000 071100
  071200 071300 071400 071600
  071700 071900 073200 073500
Fairfield County 073600 073700 073800 073900
  074000 074300 074400  
Hartford County 415900 416100 416200 416600
  417100 417300 480600 490200
  500100 500200 500300 500400
  500500 500900 501000 501100
  501200 501300 501400 501500
  501700 501800 502400 502500
  502600 502700 502800 502900
  503000 503100 503200 503300
  503400 503500 503700 503800
  504100 504300 504700 504900
Litchfield County 310300      
Middlesex County 541100 541600 541800  
New Haven County 140200 140300 140400 140500
  140600 140700 140800 141300
  141500 141600 142100 142300
  142400 142500 170100 170200
  170300 171000 171500 350100
  350200 350300 350400 350500
  350800 351200 351400 351700
  352200      
New London County 690100 690300 690400 690500
  696800 702202 702500  
Windham County 800600      
         
DELAWARE        
New Castle County 000100 000700 000800 000900
  001700 001900 002000 002200
  002300 014501    
         
DISTRICT OF COLUMBIA        
District of Columbia 004700 004901 006002 006400
  007200 007401 007404 007406
  007408 007504 008803 008804
  008904 009602 009801 009802
  009806 009808 009904  
         
FLORIDA        
Alachua County 000200 000600 000901 000902
  001502 001902    
Bay County 001800      
Brevard County 060700 062600    
Broward County 030301 030402 041400 041500
  041600 041700 060303 080500
  100500      
Collier County 011204 011205    
Duval County 000400 001000 001300 001500
  001600 001700 001800 002600
  002901 011500    
Escambia County 000400 001500 001700 001800
  002000      
Hillsborough County 000700 001800 003000 003200
  003400 003600 003900 004000
  004300 010807 010808 012900
Lee County 000302 000502 000600  
Leon County 000500 000600 001001 001101
  001200 001400 002001 002002
Marion County 001700 001800    
Miami-Dade County 000408 000503 000703 000803
  000903 001004 001401 001402
  001501 001502 001702 001801
  001803 001901 001903 001904
  002001 002003 002004 002401
  002402 002500 002600 002800
  003001 003003 003004 003100
  003400 003601 003602 003701
  003702 003907 004402 004901
  005201 005202 005301 005302
  005402 005703 006602 009310
  010206 010602 010800 010900
  011001 011300    
Orange County 010400 010500 010600 011400
  011702 011901 014502  
Palm Beach County 001404 001909 002200 002400
  002600 006801 008201 008202
  008301      
Pinellas County 020500 020700 020900 021000
  021200 021300 021600  
Polk County 010100 010200 011000 011201
  012004 013300 013701  
St. Lucie County 000100 000200 000300  
Seminole County 020500      
Volusia County 081500 081900 082000 082100
         
GEORGIA        
Ben Hill County 960400      
Bibb County 010100 010400 010500 010600
  010700 011100 011200 011300
  011400 011500 012700 012900
  013000      
Burke County 950400 950800    
Carroll County 990502      
Chatham County 000100 000601 001100 001200
  001800 001900 002000 002300
  002400 002800 003200 004400
  010101      
Clarke County 000100 000400 000900 001900
  030200      
Clay County 960100      
Cobb County 030800      
Colquitt County 970300      
Decatur County 970400      
DeKalb County 020600 022100 023802  
Dougherty County 000100 000200 000300 000800
  001200 001300 001401 001402
  001500 010302 010601 010700
Evans County 970300      
Floyd County 001500      
Fulton County 000800 001000 001700 001900
  002100 002200 002300 002400
  002500 002600 002800 003300
  003500 003700 003800 003900
  004100 004300 004400 004600
  004800 005501 005502 005600
  005700 006200 006300 006400
  006602 006700 006802 006900
  007002 007100 007200 007300
  007400 007601 007808 008202
  008301 008302 008400 008500
  008601 008602 008701 008702
  010900 011000 011201  
Glynn County 000700 000800    
Hall County 000800      
Hancock County 980100 980200    
Houston County 020400      
Laurens County 950300 950900    
Liberty County 010100      
Lowndes County 010500 010800 010900 011000
  011302      
Mitchell County 980300      
Muscogee County 000300 000500 001300 001400
  001500 001600 001800 002200
  002400 002500 002700 002800
  003000 003200 003400 010800
  011000      
Richmond County 000200 000300 000600 000700
  000900 001300 001400 001500
  010300 010400 010504 010600
Screven County 970200      
Spalding County 160400      
Stewart County 950200      
Terrell County 980300      
Thomas County 960100      
Tift County 990600      
Ware County 950400 950700 950800  
         
HAWAII        
Honolulu County 003900 005200 005400 005700
  005800 006202 006302 008610
  009501 009502 009503 009505
  010801      
Kalawao County 031900      
Kauai County 041000      
Maui County 031300      
         
IDAHO        
Canyon County 020200      
Owyhee County 940300      
         
ILLINOIS        
Adams County 000400 000700 000800  
Alexander County 957900      
Champaign County 000100 000300 000700 005200
  005300 006000    
Cook County 031200 031500 031600 050400
  080500 080800 081900 222300
  222600 222800 222900 230100
  230200 230300 230900 231100
  231500 231600 231700 240100
  240600 240700 241000 241100
  242700 251700 251900 260100
  260300 260400 260500 260600
  260700 260800 270200 270300
  270500 270600 270700 271100
  271200 271300 271400 280400
  280500 280600 280800 280900
  281000 281300 281400 281500
  282700 283500 283600 283800
  283900 284000 284100 284200
  290200 290300 290400 290500
  290600 290700 290900 291000
  291100 291200 291300 291400
  291500 291600 291700 291800
  291900 292000 292200 300100
  300200 300400 300700 300800
  300900 301000 301200 301300
  301400 301500 310100 310500
  310600 310800 310900 311000
  311200 320400 330300 340400
  340600 350200 350400 350600
  351100 351400 351500 360100
  360200 360300 360400 370100
  370200 370400 380100 380200
  380500 380600 380700 380800
  381300 381400 381500 381600
  381700 381800 382000 390300
  390400 400100 400200 400300
  400500 400600 400700 400800
  410400 420400 420500 420600
  420700 420800 420900 421100
  430300 430500 430700 431300
  440100 440800 460100 460200
  460600 460700 460800 460900
  461000 490200 491400 500200
  540100 560200 610200 610300
  610400 610500 610600 611100
  611200 611300 611400 611700
  611800 611900 612000 612100
  630100 670200 670300 670600
  670800 670900 671000 671100
  671200 671500 671700 680100
  680200 680300 680400 680500
  680600 680700 680900 681000
  681100 681200 681300 690100
  690200 690300 690700 710100
  710200 710900 821500 826800
  826901 826902 829000 829100
Crawford County 980400      
DeKalb County 001000 001100 001200  
Franklin County 041000      
Greene County 973900      
Jackson County 011100 011200 011300 011400
Jefferson County 050900 051000    
Kane County 853700      
Kankakee County 011000 011600 012300  
Lake County 862300 862605 862700 862902
McDonough County 010500      
McLean County 000200      
Macon County 000100 000300 000600 000700
  000800 000900 001000  
Madison County 400300 400700 400901  
Marion County 952500      
Peoria County 000100 000200 000300 000500
  000600 000700 000800 000900
  001200 001300 001500  
Rock Island County 020600 022300 022600 023600
St. Clair County 500400 500500 500600 500900
  502200 502401 502500 502700
  502800 504201 504500  
Saline County 955500      
Sangamon County 000800 000900 001400 001500
  001600 001700 002400 002802
Stephenson County 000700      
Vermilion County 000100 000200 000300  
White County 958000      
Will County 881900 882000    
Winnebago County 001000 001100 001300 002100
  002400 002500 002600 002800
         
INDIANA        
Allen County 001600 001700 002100 002700
Delaware County 000100 000200 000300 000400
  000600 000902 001901  
Elkhart County 002600 002800    
Floyd County 070200      
Henry County 976300      
Lake County 010202 011400 011900 012100
  012200 020600 030100 030300
  031000      
LaPorte County 040200      
Madison County 000500      
Marion County 330801 350300 350700 350800
  350900 351100 351600 351700
  352800 353100 353500 353600
  354400 354700 355000 355600
  355700 356900 357200  
Monroe County 000201 000600    
St. Joseph County 002800      
Tippecanoe County 005500 010300 010500  
Vanderburgh County 001900 002500 002600  
Vigo County 000100 000300 000500 000800
  010500      
Wayne County 000200      
         
IOWA        
Black Hawk County 000100 000900    
Dubuque County 000100      
Johnson County 002100      
Polk County 004900 005000 005200  
Scott County 010800 010900    
Story County 000500      
Webster County 000700      
Woodbury County 001500 001600    
         
KANSAS        
Douglas County 000400      
Geary County 000100 000200    
Montgomery County 950500 950900 951200  
Reno County 000600 000800    
Riley County 000802 001000    
Saline County 000200      
Sedgwick County 000600 000800 000900 001800
  002600 003700 006800  
Shawnee County 000400 000500 001100 001200
  004000      
Wyandotte County 040300 040800 041000 041100
  041200 043000    
         
KENTUCKY        
Bell County 960100 960900 961000  
Breathitt County 980400 980700    
Campbell County 050100      
Clay County 950100 950400 950500 950600
Fayette County 000400 000801 000900 001800
Floyd County 980800      
Harlan County 970300 970600 971000 971100
  971200      
Jefferson County 000600 001800 002300 002400
  002700 003000 003500 003700
  004301 004302 005900 006200
Knox County 990100      
Lawrence County 990300      
Letcher County 950300      
Lewis County 990400      
McCracken County 030100 030200 030300 030400
McCreary County 960100 960200 960400  
Madison County 010500      
Martin County 950100 950300    
Owsley County 990200      
Perry County 970700      
Warren County 010200      
Whitley County 980800      
         
LOUISIANA        
Bossier Parish 010400 011300    
Caddo Parish 020400 020600 020800 020900
  021300 021700 023300 023700
  024601      
Calcasieu Parish 000400      
East Baton Rouge Parish 000200 001000 001104 001300
  001500 002100 002200 002800
  003102      
East Carroll Parish 990300      
Evangeline Parish 950500 950600    
Iberia Parish 030800      
Jefferson Parish 020600 026200 027602  
Lafayette Parish 000800 000900    
Lincoln Parish 960900      
Madison Parish 960300 960400    
Natchitoches Parish 990700      
Orleans Parish 000200 000300 000601 000603
  000901 000902 000903 001301
  001304 001500 001600 001714
  001733 001900 002000 002700
  002800 002900 003000 003305
  003306 003500 004401 004402
  004500 004800 004900 006000
  006700 006800 006900 007100
  007200 008101 008500 008600
  008700 009200 009301 009302
  009400 013100    
Ouachita Parish 000600 000700 000900 001100
  001500 010700    
Rapides Parish 011000 011100 011400 011900
  012000 012700    
St. Landry Parish 961300 961600    
St. Mary Parish 041600      
Vermilion Parish 950800      
Webster Parish 031700      
MAINE        
Androscoggin County 010100 020100 020400  
Cumberland County 000500      
         
MARYLAND        
Allegany County 000300 000500 000700 000800
  001000 001503 002100 002200
Anne Arundel County 740105      
Baltimore County 401602 421300 450504 450800
  490605 491401    
Dorchester County 970500      
Frederick County 750100 750300    
Garrett County 000700      
Harford County 302901      
Prince George's County 803200 803401 803509 804300
  804800 805601 805602  
Somerset County 980101 980200 980600  
Washington County 000302 000400 000700 000900
Wicomico County 000100 000300 000500 010200
Worcester County 990300      
Baltimore City 030100 050100 060100 060200
  060300 060500 070100 070200
  070300 070400 080102 080200
  080301 080302 080400 080500
  080600 080700 080800 090400
  090500 090600 090700 090800
  090900 100100 100200 100400
  120400 120500 120700 130100
  130200 130300 130400 130804
  140200 140300 150100 150200
  150300 150400 150500 150600
  150800 151200 151300 160100
  160200 160300 160400 160500
  160600 160700 160802 170100
  170200 170300 180100 180300
  190100 190300 200100 200200
  200300 200400 200500 200600
  200701 200702 200800 210100
  210200 230300 250203 250204
  250207 250301 250302 250402
  250500 260202 260303 260401
  260402 260404 260501 260604
  260700 260800 261000 270701
  271700 271801 271802 280301
  280404      
         
MASSACHUSETTS        
Barnstable County 012300 012400 014100  
Berkshire County 900100 900200 900600 901200
  921100 921400    
Bristol County 640200 640300 640600 640900
  641000 641100 641200 641300
  641400 641900 642000 650600
  650700 650800 650900 651100
  651200 651300 651400 651500
  651700 651800 651900 652400
  652500 652600 652700  
Essex County 204300 206000 206800 206900
  207000 207200 250100 250300
  250400 250500 250600 250700
  250900 251000 251100 251200
  251300 251500 251600  
Hampden County 800100 800600 800700 800800
  800900 801101 801102 801200
  801300 801401 801700 801800
  801900 802000 802200 802300
  810800 810901 811400 811500
  811600 811700 811800 812300
Hampshire County 820102 820400    
Middlesex County 302200 310100 310400 310800
  311000 311100 311900 312400
  352400 383100    
Norfolk County 417802      
Plymouth County 510900 511000    
Suffolk County 000602 010300 050200 050300
  050400 050700 060700 061000
  061100 070200 070400 071200
  080100 080300 080400 080500
  080600 080800 081000 081200
  081300 081700 082100 090300
  090400 091300 091700 091800
  092400 100100 101102 160200
  160400      
Worcester County 710500 710700 731201 731202
  731300 731400 731500 731600
  731700 731800 731900 732001
  732400 732500 732600 732700
  757200 757300    
         
MICHIGAN        
Bay County 280100 280200    
Berrien County 000300 000400 000500 000600
  002100 002200 002300  
Calhoun County 000400 000600 000700  
Clare County 980100      
Genesee County 000200 000400 000700 000800
  001000 001100 001400 001500
  001700 001800 001900 002000
  002200 002300 002500 002600
  002800 003200 003400 003800
  010304 012202    
Gladwin County 990800      
Houghton County 990300      
Ingham County 000700 001300 001500 002000
  004200 004302 004402  
Jackson County 000200 000600 001100  
Kalamazoo County 000202 001504 001507  
Kent County 001400 002000 002600 002800
  003100 003600 003800  
Lake County 960600      
Marquette County 000500 002400    
Muskegon County 000200 000300 000500 000602
  001200 001300 001402  
Oakland County 141200 141700 142300 142500
  172400      
Ogemaw County 950700 950800    
Oscoda County 970300      
Roscommon County 970200 970800    
Saginaw County 000100 000200 000400 000600
  000700 000800 000900 001000
  001100 001300 001800  
St. Clair County 624000 625000    
St. Joseph County 040200      
Shiawassee County 030600      
Washtenaw County 400200 402200 410600 411000
  411100 411200    
Wayne County 500400 501700 503400 503600
  503700 503900 504100 504500
  504600 504700 504800 507400
  507600 507700 507800 508000
  510400 510500 510700 510800
  510900 511200 511600 512100
  512200 512300 512400 512600
  512900 513600 513900 514000
  514100 514300 514500 514600
  514700 514800 514900 515100
  515200 516100 516300 516600
  516800 517200 517600 517800
  518400 518500 518600 518800
  520100 520300 520400 520500
  520600 521300 521800 522100
  522200 522300 522400 523100
  523200 523500 523600 523700
  524000 524300 525100 525200
  525300 525400 525500 525700
  526000 526400 526500 530700
  530800 531100 531500 531600
  531700 531800 531900 532400
  532500 532700 533000 533100
  533300 533500 533600 533700
  534100 534500 537200 537800
  543500 543600 543700 543800
  543900 544200 545100 545200
  545300 545400 552100 552300
  553200 553300 553400 553800
  573500 584800 586000  
         
MINNESOTA        
Beltrami County 950800      
Hennepin County 002200 003300 003501 005901
  005902 006800 007301 007700
  007801 007802 007900 008300
  008400 101400 101500 101600
  102100 102800 102900 103400
  104100 104800 105400 105700
  106000 106900 107000 107100
  107200      
Itasca County 980200      
Mower County 000410      
Polk County 020200      
Ramsey County 030500 032700 032900 033100
  033700 040802    
St. Louis County 001300 001400 001600 001700
  001800 001900 002500 002800
  003200 012200    
Stearns County 000100      
         
MISSISSIPPI        
Adams County 000400      
Coahoma County 950600      
Forrest County 000100 000500    
Hinds County 001100 001800 002000 002700
  010801      
Jackson County 041200      
Lauderdale County 000100 000400 000600  
Leflore County 950200 950800 950900  
Pike County 950300      
Washington County 000400 001100    
Yazoo County 950500      
         
MISSOURI        
Adair County 951000      
Boone County 000100 000401 000402 000500
  000800 000900    
Buchanan County 001000      
Butler County 950500 950700    
Cape Girardeau County 981400      
Clay County 020000      
Cole County 010100      
Dunklin County 960100      
Greene County 000100 000200 000500 000800
  001900 005500    
Hickory County 970300      
Howell County 990200 990700    
Jackson County 001400 001500 001600 001700
  002100 002200 002400 002900
  003200 003502 003602 005500
  005801 005901 006300  
Marion County 960800      
Oregon County 980100      
Pemiscot County 970200 970400    
St. Louis County 213900 214100    
Shannon County 970200      
St. Louis City 105400 106100 106200 106300
  106600 109700 110200 110500
  111200 111400 111500 112300
  116400 118100 119300 120100
  120300 121100 121200 121300
  122400 124100 124200 124600
  125700 126600 126700  
         
MONTANA        
Blaine County 940200      
Cascade County 000600      
Chouteau County 940100      
Daniels County 940200      
Sheridan County 940200      
Yellowstone County 000300      
List of Census Tracts by State and County, continued
State and County or County Equivalent Qualified Census Tracts
NEBRASKA        
Blaine County 972400      
Douglas County 000500 000700 000800 001100
  001200 001600 001900 005200
  005300      
Lancaster County 000700      
Sarpy County 010302      
         
NEVADA        
Clark County 000400 000503 000504 000700
  000800 000900 001100 002204
  002404 002405 002406 002506
  002706 002955 004300 004400
  004707 004710 004713  
Elko County 940300      
Washoe County 000100 000900 001004  
         
NEW HAMPSHIRE        
Hillsborough County 001400 001500 001600 001900
  010700      
         
NEW JERSEY        
Atlantic County 000100 000400 001100 001400
  001500 001900 002300 002400
  002500      
Burlington County 701204 702101 702109  
Camden County 600100 600200 600300 600400
  600500 600700 600800 600900
  601000 601101 601102 601200
  601300 601400 601500 601600
  601700 601800 601900 602000
  605000 607701 608204  
Cape May County 020500 021400 021500  
Cumberland County 010200 020100 020200 020300
  020501 040100 040200 040500
Essex County 000200 000300 000700 000900
  001000 001300 001400 001500
  001600 001700 001800 001900
  002600 002700 002800 002900
  003000 003100 003400 003500
  003800 003900 004000 004100
  004200 004300 004600 004801
  004802 004900 005000 005300
  005400 005700 005800 006200
  006600 006700 006800 006900
  007501 007502 008000 008100
  008200 008600 008700 008800
  008900 009000 009100 009200
  009300 009600 009700 010600
  010900 011100 011300 013100
  013200 013300 018300 018400
  018600 022700 022800  
Gloucester County 501402      
Hudson County 000200 001202 001601 001700
  001800 003000 003100 003300
  004102 004200 004400 004600
  005100 005500 005801 015100
  015300 015500 015600 015900
  016000 016200 016300 016400
  016500 016600 016700 016800
  016900 017000 017200 017400
  017500 017600 017700 019000
  032400      
Mercer County 000800 000900 001000 001100
  001401 001402 001500 001600
  001700 001900 002000  
Middlesex County 004600 005300 005500 005600
  005800 005900    
Monmouth County 805600 805800 807003 807200
  807300 807600 809903  
Morris County 045601      
Ocean County 715200 715302 715402 720101
  720102 720103 722200 731201
  731202 731203 731204 731205
  731206      
Passaic County 125100 175200 175300 175400
  175500 175800 175900 180400
  180500 180700 180800 180900
  181200 181300 181400 181500
  181702 181800 182000 182200
  182300 182800 182900 183000
  183200      
Salem County 020300 022000 022100  
Union County 030200 030300 030400 030600
  030801 031000 031100 031200
  031901 039300    
         
NEW MEXICO        
Bernalillo County 000901 940300    
Cibola County 945900      
Curry County 000100      
Dona Ana County 001000 001704    
Lea County 000300      
Luna County 000600      
McKinley County 940200 943400    
Rio Arriba County 000600 943300    
Sandoval County 940900 943300    
San Juan County 942900      
Socorro County 946100      
         
NEW YORK        
Albany County 000200 000600 000800 002100
  002500 002600    
Bronx County 001500 001700 002000 002300
  002500 002701 002702 003100
  003300 003500 003700 003900
  004100 004300 004400 004600
  004700 004800 004900 005000
  005200 005302 005400 005600
  005800 005901 006000 006200
  006500 006600 006700 006900
  007300 007500 007700 007900
  008300 008500 008600 008700
  008900 009100 009900 010500
  011000 011501 011502 011900
  012101 012102 012300 012701
  012901 012902 013100 013300
  013500 013700 013900 014100
  014300 014500 014700 014900
  015100 015300 015500 015700
  016100 016500 016700 016900
  017300 017500 017700 017900
  018100 018900 019300 019500
  019600 019700 019900 020100
  020500 021100 021301 021302
  021501 021502 021701 021702
  021900 022000 022100 022300
  022500 022701 022702 022901
  022902 023100 023301 023302
  023501 023502 023701 023702
  023900 024100 024200 024300
  024500 025300 025500 026300
  026500 026700 027101 027700
  032400 033400 035900 036100
  036300 036501 036502 036700
  036901 036902 037100 037300
  037400 037501 037502 037503
  037700 037900 038100 038300
  038500 038700 038900 039100
  039300 039700 039901 039902
  040100 040302 040500 040701
  041900 042500 045800  
Broome County 000300 000500 000600 001100
  001200 001300 013500 013900
Cattaraugus County 940000 940200 961700  
Chautauqua County 030300 030500 940000  
Chemung County 000100 000700 000800 001000
Clinton County 101600      
Columbia County 991200      
Dutchess County 220300 220400 220700  
Erie County 000300 000400 000500 001302
  001402 001500 001600 001800
  002000 002502 002600 002701
  002702 002800 002900 003100
  003201 003202 003301 003302
  003400 003500 003600 003700
  003901 004002 004402 005600
  006000 006100 006900 007000
  007101 007102 008300 012100
  016100 940000    
Fulton County 990800      
Genesee County 940100      
Herkimer County 010600      
Jefferson County 062100      
Kings County 001100 001800 002000 002300
  002500 002901 003700 005900
  008500 009000 010400 011200
  012700 018501 022500 022600
  022800 023500 023900 024100
  025500 025901 025902 026100
  027700 028100 028300 028502
  028700 030300 030700 031100
  031300 032600 033000 033100
  034000 034200 034300 034700
  034802 035200 035300 035700
  035900 036002 036100 036200
  036300 036900 038100 038200
  038900 039100 039500 039700
  039900 040100 040900 041100
  041300 041500 041700 041900
  042100 042300 042500 042700
  042900 043100 043300 043900
  044100 044300 044700 045300
  046500 048900 049300 050800
  050900 051600 052300 052500
  052700 052900 053100 053300
  053500 053700 053900 054500
  054700 057200 057900 089000
  089200 090000 090200 090600
  090800 091000 091200 091400
  091600 094402 098200 103400
  110600 111000 111400 112000
  112600 113000 113200 113400
  113600 113800 114000 114800
  115000 115200 115400 115600
  118800 119000 119400 121000
  121400      
Monroe County 000200 000700 001300 001500
  002200 002300 002400 002700
  003200 003900 004000 004100
  004602 004800 004900 005000
  005100 005200 005300 005500
  005600 005700 005900 006400
  006500 006600 006900 007900
  008000 008900 009200 009301
  009302 009400 009601 009602
  009603 009604    
Montgomery County 070900      
New York County 000201 000600 000800 001002
  001600 001800 002000 002400
  002500 002900 004100 011700
  015602 016200 016400 016600
  017201 017202 017401 017800
  018000 018200 018400 018600
  018800 019000 019200 019400
  019600 020200 020400 020901
  020902 021301 021302 021702
  021900 022200 022301 022400
  022600 022702 022900 023000
  023102 023200 023300 023400
  023501 023502 023900 024301
  024302 024500 024900 025100
  026100 026700 026900 027700
  028300 028500 028900 029100
  029300      
Niagara County 020200 020600 020900 021100
  021200 021300    
Oneida County 020100 020300 020701 020802
  020803 020900 021000 021101
  021201 021404 021500 021800
  022000 022600    
Onondaga County 000500 001300 001400 001600
  002000 002100 002200 002300
  002400 003000 003200 003400
  003500 003900 004000 004200
  004300 005200 005300 005400
  005500 005602 005800 006101
Ontario County 051800      
Orange County 000400 000500 001700 015001
  015002      
Queens County 002500 002900 003700 004300
  008700 010700 024800 025000
  026000 054500 054900 086500
  087100 095200 097201 097202
  122702 156700    
Rensselaer County 040400      
Richmond County 002900 013301 018500  
Rockland County 011503      
St. Lawrence County 991100      
Schenectady County 020800 020900 021001 021002
  021400 021500 021700  
Warren County 070200      
Westchester County 000103 000500 001000 001101
  003100      
         
NORTH CAROLINA        
Buncombe County 000100 000200 000900  
Cumberland County 000200 001000 001300  
Davidson County 061400      
Durham County 000500 000900 001100 001201
  001202 001400 001501  
Edgecombe County 020100      
Forsyth County 000400 000500 000700 000801
  000802 001602    
Gaston County 031900      
Guilford County 011000 011101 011400 013900
  014408      
Lee County 030300      
Lenoir County 010300 010400 010500  
Mecklenburg County 000600 000700 002300 003700
  003901 004500 004700 005000
  005100 005200    
Nash County 010100      
New Hanover County 011000 011100 011400  
Onslow County 000800 000900 001900 002000
Orange County 011600      
Pasquotank County 960300      
Pitt County 000701 000702    
Robeson County 960800      
Surry County 990400      
Vance County 960600 960700    
Wake County 050800 050900 051100 052405
Wayne County 001600 001700 001800  
Wilson County 000200 000801    
         
NORTH DAKOTA        
Grand Forks County 010300      
Mercer County 940300      
Sioux County 940100 940200    
Ward County 940300      
         
OHIO        
Allen County 012500 012800 012900 013400
  013600 013700 013800  
Athens County 973101 973102    
Belmont County 011500 011600 012100  
Butler County 000300 000400 000702 010104
  012900      
Clark County 000100 000200 000901  
Columbiana County 952100      
Cuyahoga County 101200 101800 102600 102700
  102800 103100 103300 103400
  103500 103800 103900 104100
  104200 104400 104500 104600
  104701 104800 104900 105100
  106400 107200 107500 107700
  107900 108200 108300 108400
  108600 108700 108800 108900
  109300 109600 109700 109800
  110500 110800 111100 111200
  111300 111401 111402 111500
  111600 111700 111800 111901
  111902 112100 112200 112400
  112600 112700 112900 113100
  113200 113300 113500 113600
  113700 113800 113900 114100
  114200 114300 114400 114500
  114600 114700 114800 114900
  115200 115300 115500 116100
  116500 116600 116700 116800
  116900 117300 118601 118602
  118700 119202 119300 119402
  119502 119600 119702 119800
  119900 120100 120200 120802
  121300 121401 121600 150300
  150400 151400 151500 151800
Fairfield County 031700      
Franklin County 000720 000730 000910 000920
  001110 001200 001300 001400
  001500 001600 001700 001810
  002300 002600 002710 002800
  002900 003000 003600 004200
  005000 005100 005300 005410
  005610 006000 006100 007410
  009326 009331    
Guernsey County 977600      
Hamilton County 000200 000301 000302 000900
  001000 001100 001500 001600
  001700 002100 002300 002800
  003200 003400 003500 003600
  003700 003800 004702 006700
  007400 007700 008000 008502
  008601 008700 008900 009100
  010002      
Jefferson County 000200 000800 000900  
Lawrence County 050600      
Licking County 750100      
Lorain County 070800      
Lucas County 000800 001202 001700 001800
  002200 002300 002500 002700
  002900 003000 003300 003400
  003500 003600 003700 003800
  004100 004200 004301 005100
  005400      
Mahoning County 800200 800500 800600 800700
  800900 801000 801600 801700
  801900 802000 802100 802200
  802300 802400 803100 803400
  803500 803700 804400 810300
Montgomery County 000300 001200 001700 002200
  002300 003500 003600 003700
  004000 004100 004300 060200
  070201      
Muskingum County 981900      
Portage County 601502      
Richland County 000100 000200 000300 000600
  000700      
Ross County 956500      
Scioto County 993500 993600    
Stark County 700100 700500 701800 702300
  710400 713800    
Summit County 501100 501200 501301 501302
  501700 501800 502500 503400
  504200 504400 505300 505600
  506700 506800 506900 507400
  510100      
Trumbull County 920100 920500 920600 920800
  932400      
Washington County 020500      
Wood County 021800      
         
OKLAHOMA        
Bryan County 996400      
Canadian County 300400      
Cleveland County 201201      
Comanche County 001200 001300 001700  
Grady County 000100      
Jackson County 968700      
Muskogee County 000600      
Oklahoma County 102500 102600 102800 102900
  103000 103500 103602 103700
  103800 103900 104100 104200
  104700 105400 105600 105800
Payne County 010400 010500    
Pittsburg County 986300      
Pontotoc County 989100      
Pottawatomie County 500200      
Tulsa County 000500 000600 001300 002100
  004600 008001    
         
OREGON        
Jackson County 000100 000202    
Josephine County 360701      
Klamath County 971600      
Lane County 003800      
Malheur County 970400      
Multnomah County 003301 003402    
         
PENNSYLVANIA        
Allegheny County 010300 020300 040600 050100
  050700 050900 051000 051100
  101600 101700 111500 120300
  120400 120800 130100 130300
  130400 150400 160400 160600
  192100 220400 250300 250700
  250900 260900 280800 464400
  486700 486900 505000 512900
  513800 514000 551900 552100
  560400 561000 561100  
Beaver County 604500      
Berks County 000100 000200 001200 002200
  002300 002500 002600  
Blair County 100700 101900    
Cambria County 000100 000200 000300 000800
  000900 001000 001100 001300
  001400      
Centre County 012100 012500    
Clinton County 970600      
Dauphin County 020600 020700 021300 021400
Delaware County 405200 405800    
Erie County 000100 000700 000800 001200
  001300 001400 001500 001800
Fayette County 262300      
Lackawanna County 100200      
Lancaster County 000100 000800 000900 001400
  001500 001600    
Lawrence County 000400 000600 000900  
Lebanon County 000300      
Lehigh County 000800 000900 001000 001100
  001200 001300    
Luzerne County 201000 214100 217400  
Lycoming County 000400 000800    
Mercer County 030200 030600 030700 030800
Northampton County 010500      
Northumberland County 961700      
Philadelphia County 000200 001900 002000 002100
  002800 003000 003100 003200
  003400 003500 003600 004600
  005100 005600 006600 006700
  006900 007400 007700 008900
  009200 009300 009500 010200
  010500 010600 010700 010800
  010900 012700 013100 013800
  013900 014000 014100 014500
  014700 014800 015100 015200
  015300 015500 015700 016100
  016200 016300 016400 016500
  016600 016700 016800 016901
  017100 017200 017400 017500
  017601 017602 017700 017800
  018200 018900 019000 019200
  019300 019400 019500 019600
  019700 019800 019900 020300
  020500 024100 024500 024600
  028700 028800 029300 032200
Venango County 200700      
Washington County 704100      
Westmoreland County 800100 800700    
York County 000200 000300 000700 001000
  001100 001500 001600  
         
RHODE ISLAND        
Newport County 041200      
Providence County 000200 000300 000500 000600
  000700 000900 001000 001200
  001300 001400 001700 001900
  002000 002200 002500 002600
  002700 010800 011100 015100
  015200 015300 015400 016600
  018000 018100    
         
SOUTH CAROLINA        
Charleston County 000900 001000 001100 001300
  001400 003300 003400 003600
  003700 004300 004500  
Darlington County 010700      
Florence County 000700      
Greenville County 000800 000900 002108 002303
  002304      
Lancaster County 010700      
Orangeburg County 011200 011300    
Richland County 000500 000900 001000 001300
  001400 002002 002800 010900
Spartanburg County 020301 020400 020500 020800
  021001      
Sumter County 000897 000898 001500  
         
SOUTH DAKOTA        
Bennett County 940600 940800    
Buffalo County 940100      
Corson County 940500 940700 940800 940900
Dewey County 941600      
Jackson County 940100 940200    
Lyman County 940100      
Shannon County 940300 940400 940600 940700
Todd County 940100 940200    
Ziebach County 941200 941400 941500  
         
TENNESSEE        
Anderson County 020700      
Bradley County 010400 010700    
Campbell County 950300      
Claiborne County 970400      
Coffee County 970900      
Davidson County 011800 012400 012500 013600
  013900 014000 014200 014300
  014400 014800 016200  
Hamblen County 100300      
Hamilton County 000300 001200 001500 001600
  001900 002000    
Hancock County 960100 960300    
Knox County 000200 000400 000600 000700
  001200 001300 001400 002400
  002800      
Madison County 000500 000800 001000 001100
Montgomery County 100400 100900    
Scott County 975300      
Shelby County 000200 000300 000400 000500
  000800 000900 001800 001900
  002000 002100 002200 002300
  002400 002800 003700 003800
  004000 004100 004400 004500
  004600 004700 004800 004900
  005000 005100 005400 005700
  005800 005900 006000 006700
  007810 008110 008400 010300
  010420 022022    
Washington County 060700 060900    
         
TEXAS        
Bee County 950500      
Bell County 020702 020900 022600 022801
  022900 023500    
Bexar County 110200 110500 110600 110700
  110800 110900 111000 130100
  130300 130500 130600 130700
  141000 150300 150800 160100
  160900 170101 170102 170200
  170300 170401 170900 171000
  171200 181003 191004  
Bowie County 010500 010600    
Brazos County 001400      
Brewster County 950400      
Brooks County 950200      
Brown County 950600 950700    
Cameron County 010500 010900 011000 011100
  011600 011700 011903 012200
  012303 012304 012507 012604
  012609 012610 012700 013203
  013207 013208 013305 013306
  013307 013308 013309 013401
  013402 013700 013801 013802
  013901 013902 013903 014001
  014002      
Cherokee County 950400 950500 950700  
Dallas County 000405 001503 002000 002701
  002702 002900 003400 003500
  003800 003901 003902 004000
  004100 004800 007201 007202
  008603 008604 008703 008704
  008900 009304 009804 010200
  010400 011401 011500 012208
  019013 019209    
Dimmit County 950100      
Ector County 001100 001200 001500 001800
  001900 002000    
El Paso County 000301 000302 000404 000800
  000900 001203 001400 001600
  001700 001800 001900 002000
  002100 002201 002202 002600
  002800 002900 003000 003200
  003602 003701 003702 003901
  003903 004105 010102 010208
  010309 010319 010403 010404
  010501 010502 010503 010504
Falls County 990400      
Frio County 950300      
Galveston County 724000 724600    
Gray County 950600 950800    
Gregg County 001400      
Grimes County 180104      
Hale County 950200      
Harris County 210400 210800 210900 211000
  211100 211200 211300 211400
  211700 220500 220800 220900
  222600 222700 230300 230400
  230700 230900 231000 233600
  240500 310200 310500 310900
  311600 312200 312300 312400
  312800 313500 313600 321500
  322000 331200 331400 332100
  420100 420500 421200 421400
  421500 421600 422200 423100
  433100 433500 453100 533300
Hidalgo County 020100 020202 020501 020503
  020600 020723 021100 021301
  021302 021303 021500 021600
  021801 021802 021901 021902
  022002 022101 022102 022202
  022501 022502 022600 022702
  022800 023000 023101 023102
  023503 023506 023508 023700
  024101 024102 024103 024104
  024105 024201 024202 024301
  024302 024401 024402 024500
  024600      
Hill County 960900 961000    
Hockley County 950400      
Howard County 950300      
Hudspeth County 950100      
Jefferson County 000600 000700 000900 005300
  005900 006100 006300  
Jim Wells County 950500      
Kleberg County 020200      
Lamar County 000600      
Lamb County 950500      
La Salle County 950100 950200    
Limestone County 970400      
Lubbock County 000202 000301 000500 000603
  000605 000607 001000 001200
  002400      
McLennan County 000400 000598 001100 001200
  001400 001500 001900 003300
Maverick County 950100 950201 950202 950203
  950500 950601 950602  
Midland County 000900 001400 001600 001700
Montgomery County 693400      
Nacogdoches County 950700 950900    
Nolan County 950300      
Nueces County 000400 000500 000900 001000
  001100 001200 001300 001500
  001601 005602    
Potter County 010600 012000 012200 012800
  013000 014600 014800  
Presidio County 950200      
Reeves County 950100 950200 950300 950500
Smith County 000202 000300 000400 000700
Starr County 950102 950103 950201 950202
  950400 950500 950600 950701
  950702      
Tarrant County 100300 101000 101100 101600
  101700 102500 103100 103500
  103601 103701 103800 103900
  104000 104604 106516 122200
Taylor County 010700 010800 011700 011900
Terry County 950300      
Titus County 950600 950700    
Tom Green County 000500 000700 000900  
Travis County 000604 000802 000804 001000
  002311 002316    
Val Verde County 950601 950602    
Walker County 790600      
Webb County 000103 000104 000300 000400
  000500 000600 000700 000902
  001002 001200 001300 001801
  001804 001805    
Wharton County 740300      
Wichita County 010100 010400 011100 011300
Willacy County 950300 950700    
Zapata County 950200      
Zavala County 950100 950200 950301 950302
         
UTAH        
Cache County 000702 000800    
Davis County 125600      
Salt Lake County 100302 101400 102100 102400
  111500      
San Juan County 942000 942100    
Utah County 001601 001602 001603 001801
  001802 001803 001900 002300
  002400 002500 002800  
Wasatch County 940300      
Weber County 200900 201200 201800 201900
         
VERMONT        
Chittenden County 000400      
         
VIRGINIA        
Albemarle County 010902      
Amherst County 010502      
Buchanan County 990100 990200 990300 990700
Chesterfield County 100406      
Dickenson County 990100 990200 990300 990400
Halifax County 990100      
Henrico County 200805      
James City County 080102      
Lee County 990100 990500 990600  
Prince William County 900903      
Russell County 990100 990600    
Scott County 030200 030300    
Smyth County 990600      
Tazewell County 990500 991000    
Wise County 991100 991500    
York County 050500      
Bristol City 020100 020300    
Chesapeake City 020100 020502    
Danville City 000300 000400 000500 000600
  001000 001300    
Franklin City 090200      
Hampton City 010502 010602 011400  
Hopewell City 820300 820700    
Lynchburg City 000203 000400 000600 000700
  001200 001300 001400  
Martinsville City 000200 000400    
Newport News City 030100 030400 030600 030800
  030900 032300    
Norfolk City 000900 001100 001300 001600
  002500 002600 002700 002900
  003501 003502 004100 004200
  004300 004400 004600 004700
  004800 005000 005200 005300
  005901 006501 006502 007001
Petersburg City 810100 810200 810600 810700
  810800      
Portsmouth City 210500 211400 211800 211900
  212000 212100 212400 212600
  213101      
Richmond City 010300 010900 011000 020100
  020200 020400 020700 021000
  030100 030200 030500 060100
  060200 060300 060400 060700
  060800 060900 070600  
Roanoke City 000200 000700 000800 000900
  001000 001300 001400  
Suffolk City 065100 065400 065500  
Virginia Beach City 040600 043200 045810  
Waynesboro City 003100 003300    
         
WASHINGTON        
Adams County 950400      
Asotin County 980400      
Benton County 011200 012000    
Clark County 041005 041600 041700 042400
  042700      
Cowlitz County 000300 000502 001000  
Franklin County 020100 020200    
Grays Harbor County 000100      
Island County 970200 970900    
King County 005301 007300 008500 009100
  009200 026500 029004 030501
Kitsap County 080500 080800 090300  
Okanogan County 970200      
Pierce County 061400 061602 062200 062801
  071703 071704 071805 071806
  072000 072904    
Snohomish County 040200 040700 041904  
Spokane County 000200 000400 001400 001600
  002300 002400 002600 003000
  003300 003500 003600 011101
  013800      
Stevens County 951000      
Walla Walla County 920500      
Whitman County 000500 000600    
Yakima County 000100 000200 000600 001500
  002001 002300 002500 002701
         
WEST VIRGINIA        
Cabell County 000500 000600    
Kanawha County 000900      
McDowell County 953600 953900    
Ohio County 000100 000700 000800  
         
WISCONSIN        
Dane County 001100 001601 001602 003200
Douglas County 020100 020200    
La Crosse County 000200 000400    
Milwaukee County 001100 001200 002000 002100
  002500 002800 004000 004400
  004600 004700 006300 006400
  006500 006600 006700 006800
  006900 007000 007900 008000
  008100 008200 008300 008400
  008500 008600 008700 008800
  008900 009000 009100 009600
  009700 009800 009900 010000
  010100 010200 010300 010400
  010500 010600 010700 011500
  011600 011700 011800 012000
  012200 012300 013400 013500
  013600 013700 013800 014000
  014100 014600 014700 014800
  014900 015000 015400 015600
  015700 015800 016300 016400
  016500 016600 016700 016800
  016900 017400 017500 017600
  017700 017800 018800  
Racine County 000400 000500    
         
WYOMING        
Albany County 963500      
Natrona County 000200      
         
PUERTO RICO        
Cataño Municipio 020404      
Lofza Municipio 110101 110400    
Mayagnez Municipio 081200      
Orocovis Municipio 954902      
Ponce Municipio 070400 070800 071300  
San Juan Municipio 001300 003501 004400 004800
  005402 008201    
Yauco Municipio 750101      

SECTION 5. EFFECT ON OTHER DOCUMENTS

Rev. Proc. 2003-15 is modified and superceded by this revenue procedure. Issuers can continue to rely on Rev. Proc. 2003-15 until the effective date of this revenue procedure, which is the date of publication of this revenue procedure in the Internal Revenue Bulletin.

SECTION 6. EFFECTIVE DATE

This revenue procedure is effective on July 21, 2003.

SECTION 7. DRAFTING INFORMATION

The principal authors of this revenue procedure are Laura Lederman and Timothy Jones of the Office of Chief Counsel. For further information regarding this revenue procedure contact Laura Lederman at (202) 622-3980 (not a toll-free call).

Rev. Proc. 2003-50

SECTION 1. PURPOSE

This revenue procedure amplifies and modifies Rev. Proc. 2002-33, 2002-1 C.B. 963, by extending the relief provided in Rev. Proc. 2002-33 to any taxpayer that timely filed its 2000 or 2001 federal tax return for the taxable year that included September 11, 2001. This revenue procedure also permits an automatic extension of time to allow certain taxpayers to change their selection of § 179 property for the taxable year that included September 11, 2001.

SECTION 2. BACKGROUND

.01 Rev. Proc. 2002-33 provided additional time for certain taxpayers that filed their 2000 or 2001 federal tax return before June 1, 2002, to (1) claim the 30-percent additional first year depreciation provided by §§ 168(k)(1) and 1400L(b) of the Internal Revenue Code for a class of property that is qualified property or qualified New York Liberty Zone (Liberty Zone) property placed in service after September 10, 2001, during the 2000 or 2001 taxable year, (2) elect the increased § 179 amount provided by § 1400L(f) for § 179 property that is Liberty Zone property placed in service by the taxpayer after September 10, 2001, during the 2000 or 2001 taxable year, and (3) depreciate under § 168 Liberty Zone leasehold improvement property (as defined in § 1400L(c)(2)) placed in service by the taxpayer after September 10, 2001, during the 2000 or 2001 taxable year, as 5-year property using the straight-line method of depreciation. See sections 4.01, 4.03, and 4.04 of Rev. Proc. 2002-33.

.02 Rev. Proc. 2002-33 also explained how taxpayers may make the election provided by § 168(k)(2)(C)(iii) and § 1400L(b)(2)(C)(iv) not to deduct the 30-percent additional first year depreciation for any class of property that is qualified property or Liberty Zone property placed in service after September 10, 2001. Special provisions, including a deemed election, were provided for taxpayers that filed their 2000 or 2001 federal tax return before June 1, 2002. See sections 3 and 4.02 of Rev. Proc. 2002-33.

.03 The Treasury Department and the Internal Revenue Service have learned that some taxpayers were unaware of the relief provided by Rev. Proc. 2002-33 or were precluded from the relief because their federal tax returns for the taxable year that included September 11, 2001, were filed on or after June 1, 2002. As a result, Treasury and the Service have determined that it is appropriate to extend the relief provided in section 4 of Rev. Proc. 2002-33 to any taxpayer that timely filed its federal tax return for the taxable year that included September 11, 2001. Treasury and the Service also have determined that it is appropriate to allow certain taxpayers additional time to change their selection of § 179 property. Accordingly, section 3 of this revenue procedure amplifies and modifies section 4 of Rev. Proc. 2002-33.

SECTION 3. PROCEDURES FOR RETURNS TIMELY FILED FOR A TAXABLE YEAR THAT INCLUDED SEPTEMBER 11, 2001

 

.01 30-Percent Additional First Year Depreciation.

(1) In general. If a taxpayer timely filed its federal tax return for a taxable year that included September 11, 2001, and did not claim on that return the 30-percent additional first year depreciation for a class of property that is qualified property or Liberty Zone property placed in service by the taxpayer after September 10, 2001, during the taxable year that included September 11, 2001, but wants to do so, the taxpayer may claim the 30-percent additional first year depreciation for that class of property under this section 3.01, provided the taxpayer did not make an election in the manner described in section 3.02(1) or (2) of this revenue procedure not to deduct the 30-percent additional first year depreciation for the class of property. The taxpayer has the option of claiming the 30-percent additional first year depreciation for the taxable year that included September 11, 2001:

(a) by filing an amended federal tax return (or a qualified amended return under Rev. Proc. 94-69, 1994-2 C.B. 804, if applicable; hereinafter, referred to in this document as a “qualified amended return”) on or before December 31, 2003, for the taxable year that included September 11, 2001, and any affected subsequent taxable year, and including the statement “Filed Pursuant to Rev. Proc. 2003-50” at the top of any amended federal tax return (or qualified amended return);

(b) by filing a Form 3115, Application for Change in Accounting Method, with the taxpayer’s timely filed federal tax return for the first taxable year succeeding the taxable year that included September 11, 2001, if this return has not been filed on or before July 21, 2003, and the taxpayer owns the property as of the first day of this taxable year; or

(c) if the taxpayer’s federal tax return for the first taxable year succeeding the taxable year that included September 11, 2001, was filed on or before July 21, 2003, by

(i) filing an amended federal tax return (or a qualified amended return) on or before December 31, 2003, for the first taxable year succeeding the taxable year that included September 11, 2001, attaching a Form 3115 to the amended federal tax return, and including the statement “Filed Pursuant to Rev. Proc. 2003-50” at the top of the amended federal tax return (or qualified amended return); or

(ii) filing a Form 3115 with the taxpayer’s timely filed federal tax return for the second taxable year succeeding the taxable year that included September 11, 2001, and ending on or before July 31, 2004, if the taxpayer owns the property as of the first day of this taxable year.

(2) Automatic change in method of accounting. The Form 3115 is to be completed and filed in accordance with the automatic change in method of accounting provisions in Rev. Proc. 2002-9, 2002-1 C.B. 327 (as modified and amplified by Rev. Proc. 2002-19, 2002-1 C.B. 696, as amplified, clarified, and modified by Rev. Proc. 2002-54, 2002-35 I.R.B. 432, and as modified and clarified by Announcement 2002-17, 2002-1 C.B. 561) or any successor, with the following modifications:

(a) The scope limitations in section 4.02 of Rev. Proc. 2002-9 do not apply; and

(b) To assist the Service in processing changes in method of accounting under this section of the revenue procedure, and to ensure proper handling, section 6.02(4)(a) of Rev. Proc. 2002-9 is modified to require that a Form 3115 filed under this revenue procedure include the statement: “Automatic Change Filed Under Rev. Proc. 2003-50.” This statement should be legibly printed or typed on the appropriate line on any Form 3115 filed under this revenue procedure.

.02 Election Not to Deduct 30-Percent Additional First Year Depreciation.

(1) In general. A taxpayer that timely filed its federal tax return for the taxable year that included September 11, 2001, has made the election not to deduct the 30-percent additional first year depreciation for a class of property that is qualified property or Liberty Zone property during the taxable year that included September 11, 2001, if:

(a) the taxpayer made the election within the time prescribed in section 3.03(1) or 3.03(2)(a) of Rev. Proc. 2002-33, and in the manner prescribed in the instructions for the 2001 Form 4562, Depreciation and Amortization (Rev. March 2002); or

(b) the taxpayer made the election within the time prescribed in section 3.03(1) or 3.03(2)(a) of Rev. Proc. 2002-33 and included with the taxpayer’s federal tax return for the taxable year that included September 11, 2001, an affirmative statement to the effect that the taxpayer is not deducting the 30-percent additional first year depreciation for the class of property. The affirmative statement may be a statement attached to, or written on, the return (for example, writing on the Form 4562 “not deducting 30 percent”).

(2) Deemed election. If section 3.02(1) of this revenue procedure does not apply, a taxpayer that timely filed its federal tax return for the taxable year that included September 11, 2001, also will be treated as making the election not to deduct the 30-percent additional first year depreciation for a class of property that is qualified property or Liberty Zone property placed in service by the taxpayer after September 10, 2001, during the taxable year that included September 11, 2001, if the taxpayer:

(a) on that return, did not claim the 30-percent additional first year depreciation for that class of property but did claim depreciation; and

(b) does not file an amended federal tax return (or a qualified amended return) or a Form 3115 within the time and in the manner prescribed in section 3.01 of this revenue procedure to claim the 30-percent additional first year depreciation for the class of property for the taxable year that included September 11, 2001.

.03 Increased Section 179 Expensing for Liberty Zone Property. If a taxpayer timely filed its federal tax return for the taxable year that included September 11, 2001, and did not elect on that return to expense the increased § 179 amount provided by § 1400L(f) for § 179 property that is Liberty Zone property placed in service by the taxpayer after September 10, 2001, during the taxable year that included September 11, 2001, but wants to do so, the taxpayer must file an amended federal tax return (or a qualified amended return) on or before December 31, 2003, for the taxable year that included September 11, 2001, and any affected subsequent taxable year, and attach to the amended federal tax return for the taxable year that included September 11, 2001, the election and any necessary information required by § 1.179-5 of the Income Tax Regulations. The taxpayer must also include the statement “Filed Pursuant to Rev. Proc. 2003-50” at the top of any amended federal tax return (or qualified amended return).

.04 Changing Selection of Section 179 Property.

(1) Application. If a taxpayer timely filed its federal tax return for the taxable year that included September 11, 2001, and, on that return, made a § 179 election for property, the taxpayer may change the selection of the § 179 property on that return if:

(a) on that return, the taxpayer did not deduct the 30-percent additional first year depreciation for any property or did not elect out of the 30-percent additional first year depreciation;

(b) the taxpayer made the § 179 election for property placed in service after September 10, 2001; and

(c) the taxpayer now wants to claim the 30-percent additional first year depreciation for that same property and apply the § 179 election to other property placed in service by the taxpayer in the taxable year that included September 11, 2001.

(2) Time and manner of changing selection. A taxpayer described in section 3.04(1) of this revenue procedure changes the selection of the § 179 property by filing an amended federal tax return (or a qualified amended return) on or before December 31, 2003, for the taxable year that included September 11, 2001, and any affected subsequent taxable year, and attaching to the amended federal tax return for the taxable year that included September 11, 2001, the election and any necessary information required by § 1.179-5. The taxpayer must also include the statement “Filed Pursuant to Rev. Proc. 2003-50” at the top of any amended federal tax return (or qualified amended return).

.05 Liberty Zone Leasehold Improvement Property. If a taxpayer timely filed its federal tax return for the taxable year that included September 11, 2001, and did not depreciate on that return Liberty Zone leasehold improvement property placed in service by the taxpayer after September 10, 2001, during the taxable year that included September 11, 2001, as 5-year property for purposes of § 168 using the straight-line method of depreciation, the taxpayer must depreciate the Liberty Zone leasehold improvement property as 5-year property by either filing an amended federal tax return (or qualified amended return) or a Form 3115 within the time and in the manner prescribed in section 3.01 of this revenue procedure for claiming the 30-percent additional first year depreciation for a class of property for the taxable year that included September 11, 2001.

SECTION 4. EFFECT ON OTHER DOCUMENTS

.01 Rev. Proc. 2002-33 is amplified and modified.

.02 Rev. Proc. 2002-9 is amplified and modified to include the accounting method change provided in section 3.01 of this revenue procedure in section 2 of the APPENDIX.

SECTION 5. EFFECTIVE DATE

This revenue procedure is effective June 26, 2003.

DRAFTING INFORMATION

The principal author of this revenue procedure is Douglas Kim of the Office of Associate Chief Counsel (Passthroughs and Special Industries). For further information regarding this revenue procedure, contact Mr. Kim at (202) 622-3110 (not a toll-free call).

Rev. Proc. 2003-51

SECTION 1. PURPOSE

This revenue procedure sets forth guidelines for use by taxpayers and Internal Revenue Service personnel in making fair market value determinations for inventory items acquired when a taxpayer purchases the assets of a business for a lump sum or a corporation acquires the stock of another corporation and makes an election pursuant to § 338 of the Internal Revenue Code with respect to the acquisition. The Service invites public comment on issues relating to the inventory valuation methods discussed herein and to whether additional valuation methods are appropriate. This revenue procedure modifies, amplifies, and supersedes Rev. Proc. 77-12, 1977-1 C.B. 569.

SECTION 2. BACKGROUND

If the assets of a business are purchased for a lump sum or if a corporation acquires the stock of another corporation and makes an election pursuant to § 338 with respect to the acquisition, the purchase price (actual or deemed) must be allocated among the assets acquired to determine the basis of each of the assets. In making the allocation, a taxpayer must determine the fair market value of any inventory items acquired. This revenue procedure describes methods that may be used to determine the fair market value of inventory items for purposes of the purchase price allocation.

In the situations set forth in this revenue procedure, the quantity of inventory to be valued generally would be different from the quantity usually purchased. In addition, the fair market value of the goods in process and finished goods on hand must be determined in light of what a willing purchaser would pay and a willing seller would accept for the inventory at the various stages of completion, when the former is not under any compulsion to buy and the latter is not under any compulsion to sell, both parties having reasonable knowledge of relevant facts. In making the inventory valuation determination, it is necessary to allow for a fair division between the buyer and the seller of the profit on the inventory, taking into account that the quantity of inventory purchased may be greater than the quantity of inventory usually purchased. See Knapp King-Size Corp. v. United States, 527 F.2d 1392 (Ct. Cl. 1975).

SECTION 3. PROCEDURES FOR DETERMINATION OF FAIR MARKET VALUE.

Three basic methods a taxpayer may use to determine the fair market value of inventory are the replacement cost method, the comparative sales method, and the income method.

.01 Replacement Cost Method. The replacement cost method generally provides a good indication of fair market value if inventory is readily replaceable in a wholesale or retail business, but generally should not be used in establishing the fair market value of the work in process or finished goods of a manufacturing concern. In valuing a bulk inventory of raw materials or goods purchased for resale under this method, the determination of the replacement cost of the individual items should be only a base or starting point. This base amount must be adjusted for factors that are generally relevant. For example, a willing purchaser might be expected to pay (and a willing seller might be expected to demand) a price for inventory that would compensate the seller not only for the current replacement cost, but also for a fair return on expenditures in accumulating and preparing the inventory for distribution. Thus, an amount equal to the fair value of the related costs that the taxpayer would have incurred in acquiring and accumulating the same quantity of goods had the goods been purchased separately (e.g., purchasing, handling, transportation, and off-site storage costs) should be added to the base amount. Additionally, in valuing a particular inventory under this method, other factors may be relevant. For example, a well balanced inventory available to fill customers' orders in the ordinary course of business may have a fair market value in excess of its cost of replacement because it provides a continuity of business, whereas an inventory containing obsolete merchandise unsuitable for customers may have a fair market value of less than the cost of replacement.

.02 Comparative Sales Method. The comparative sales method utilizes the actual or expected selling prices of finished goods to customers in the ordinary course of business as the base amount that must be adjusted for factors that are generally relevant in determining the fair market value of the inventory. The inventory to be valued may represent a larger quantity than the normal trading volume. The expected selling price is a valid starting point only if the inventory is expected to be used to fill customers' orders in the ordinary course of business. If the expected selling price is used as a basis for valuing finished goods inventory, the base amount must be adjusted for relevant factors, including:

(1) the time that would be required to dispose of this inventory;

(2) the expenses that would be expected to be incurred in the disposition, for example, all costs of disposition, applicable discounts (including those for quantity), sales commissions, and freight and shipping charges; and

(3) a profit commensurate with the amount of investment in the assets and the degree of risk. (This analysis should include (but is not limited to) an evaluation of risks of possible changes in style/design, changes in price levels, increased competition, possible adverse economic conditions, the fact that the inventory to be valued may represent a larger quantity than the normal trading volume, etc.).

.03 Income Method. The income method, when applied to fair market value determinations for finished goods, recognizes that finished goods must generally be valued in a profit motivated business. As the amount of inventory may be large in relation to normal trading volume, the highest and best use of the inventory will be to provide for a continuity of the marketing operation of the going business. Additionally, the finished goods inventory will usually provide the only source of revenue of an acquired business during the period it is being used to fill customers' orders. The historical financial data of an acquired company can be used to determine the amount that could be attributed to finished goods in order to pay all costs of disposition and provide a return on the investment during the period of disposition.

.04 Work in Process. The fair market value of work in process should be based on the same factors used to determine the fair market value of finished goods reduced by the expected costs of completion, including a reasonable profit allowance for the completion and selling effort of the acquiring corporation.

SECTION 4. EXAMPLE OF REPLACEMENT COST AND COMPARATIVE SALES COST METHODS

On Date 1, Manufacturer A purchased all the assets of Manufacturer B for a lump-sum payment of $31,000,000. The assets of Manufacturer B included quantities of finished goods and raw material inventory that were larger than the normal trading volume. The inventories are in good condition and the raw materials include minimal obsolete or subnormal goods. On the date of sale, Manufacturer B's books reflected finished goods inventory having a book value of $4,000,000 and raw materials having a book value of $300,000.

Manufacturer A expects to sell the acquired finished goods inventory to customers in the ordinary course of business. An appraiser hired by Manufacturer A determined that under the circumstances the expected retail selling price of the acquired finished goods inventory to customers was $6,000,000. It was also determined that the cost of disposing of the finished goods inventory, including sales commissions, freight and shipping charges, was $1,000,000. Manufacturer A calculated that it would incur a holding cost of $50,000 based on the average amount invested in holding the inventory, the period of time that would reasonably be expected to be necessary to dispose of the inventory, and the available established finance rate for the period. After taking into consideration Manufacturer A's investment in the assets of Manufacturer B, the risks Manufacturer A would incur during the time it took to dispose, in the ordinary course of its business, of the quantity of acquired inventory, and a fair division of the profit on the finished goods inventory between Manufacturer A and Manufacturer B, it was determined that the allocation of profit to Manufacturer A should be $450,000.

The appraiser determined that the replacement cost of the raw materials was $310,000. The appraiser computed a fair value of approximately $4,100 for purchasing, handling, and storage costs to acquire and accumulate the raw materials. Finally, the appraiser determined that there were minimal obsolete and subnormal goods, which would decrease the value of the inventories by approximately $100. In the ordinary course of business, Manufacturer B did not resell the raw materials without further processing. Manufacturer A also does not expect to resell in the ordinary course of business the raw materials without further processing.

Using the comparative sales method for finished goods and replacement cost method for raw materials, the fair market value of inventory for purposes of allocating the lump sum payment is computed as follows:

Fair Market Value Computation
Gross expected selling price   $6,000,000
Disposition costs   (1,000,000)
Holding costs   (50,000)
Corporation A's profit   (450,000)
Fair Market Value of finished goods inventory   4,500,000
     
Current replacement cost of raw materials   310,000
Purchasing, storage, and handling costs   4,100
Obsolete and subnormal goods   (100)
Fair Market Value of raw materials inventory   314,000
Fair Market Value of acquired inventories   $4,814,000
     

SECTION 5. CONCLUSION

Valuing inventory is an inherently factual determination. No rigid formulas should be applied. Consequently, the three valuation methods outlined above serve only as guidelines for determining the fair market value of inventories. Similarly, the example serves only as a guideline for applying the methods.

SECTION 6. REQUEST FOR COMMENTS

The Service invites comments from the public on issues relating to this revenue procedure, including the current valuation methods provided herein and whether the Service should consider any additional valuation methods (for example, whether manufacturers should be permitted to apply a replacement cost method to value work in process and finished goods). Comments should be submitted by September 23, 2003, either to:

P.O. Box 7604Ben Franklin Station Washington, DC 20044Attn: CC:PA:RU (CC:ITA:6)Room 5525

or electronically via: notice.comments @.irscounsel.treas.gov (the Service comments e-mail address). All comments will be available for public inspection and copying.

SECTION 7. EFFECT ON OTHER DOCUMENTS

Rev. Proc. 77-12 is amplified, modified, and superseded.

SECTION 8. EFFECTIVE DATE

Generally, this revenue procedure is effective for taxable years ending on or after April 25, 1977. However, references in this revenue procedure to § 338 are effective for:

(1) certain acquisitions occurring before September 1, 1982, if: (a) the acquisition date with regard to an acquired corporation was after August 31, 1980, and before September 1, 1982; (b) the acquired corporation was not liquidated before September 1, 1982; and (c) the acquiring corporation made an election pursuant to § 338; and (2) acquisitions occurring after August 31, 1982.

DRAFTING INFORMATION

The principal author of this revenue procedure is Willie E. Armstrong, Jr., of the Office of Associate Chief Counsel (Income Tax and Accounting). For further information regarding this Revenue Procedure, contact Mr. Armstrong at (202) 622-4970 (not a toll-free call).

Part IV. Items of General Interest

Announcement 2003-47

Changes to Form 8873 (“ Extraterritorial Income Exclusion ”) and its Instructions

This announcement alerts taxpayers to recent changes to Form 8873 (“Extraterritorial Income Exclusion”) and its Instructions. The 2000 and 2001 Forms 8873 contained an error in the computation of the extraterritorial income exclusion (net of disallowed deductions) shown on line 55 of the form in certain instances in which a taxpayer used the foreign sale and leasing income method. This error may have led some taxpayers that used the foreign sale and leasing income method to claim excessive extraterritorial income exclusions for tax years 2000 and 2001.

The Service has revised the 2002 Form 8873 and its Instructions to correct this error and to make other clarifications. Compared to the 2000 and 2001 Forms 8873, the 2002 Form 8873 has been revised as follows: line 46 has been modified, lines 52 through 54 have been deleted, and line 55 has been redesignated as line 52 and modified to reflect the deletion of lines 52 through 54. As a result, the 2002 Form 8873 reflects the correct calculation of the extraterritorial income exclusion (net of disallowed deductions) on line 52 regardless of whether the taxpayer uses the foreign trade income, foreign trading gross receipts, or foreign sale and leasing income method to calculate the amount entered on line 45.

On June 27, 2003, the Director, International (LMSB) issued a compliance directive to LMSB executives, managers, and agents regarding these corrections to Form 8873 that instructed examiners in the identification and resolution of this issue on 2000 and 2001 Forms 8873.

For further information regarding this announcement, call (202) 435-5264 (not a toll-free call).

Definition of Terms and Abbreviations

Definition of Terms

Amplified describes a situation where no change is being made in a prior published position, but the prior position is being extended to apply to a variation of the fact situation set forth therein. Thus, if an earlier ruling held that a principle applied to A, and the new ruling holds that the same principle also applies to B, the earlier ruling is amplified. (Compare with modified, below).

Clarified is used in those instances where the language in a prior ruling is being made clear because the language has caused, or may cause, some confusion. It is not used where a position in a prior ruling is being changed.

Distinguished describes a situation where a ruling mentions a previously published ruling and points out an essential difference between them.

Modified is used where the substance of a previously published position is being changed. Thus, if a prior ruling held that a principle applied to A but not to B, and the new ruling holds that it applies to both A and B, the prior ruling is modified because it corrects a published position. (Compare with amplified and clarified, above).

Obsoleted describes a previously published ruling that is not considered determinative with respect to future transactions. This term is most commonly used in a ruling that lists previously published rulings that are obsoleted because of changes in laws or regulations. A ruling may also be obsoleted because the substance has been included in regulations subsequently adopted.

Revoked describes situations where the position in the previously published ruling is not correct and the correct position is being stated in a new ruling.

Superseded describes a situation where the new ruling does nothing more than restate the substance and situation of a previously published ruling (or rulings). Thus, the term is used to republish under the 1986 Code and regulations the same position published under the 1939 Code and regulations. The term is also used when it is desired to republish in a single ruling a series of situations, names, etc., that were previously published over a period of time in separate rulings. If the new ruling does more than restate the substance of a prior ruling, a combination of terms is used. For example, modified and superseded describes a situation where the substance of a previously published ruling is being changed in part and is continued without change in part and it is desired to restate the valid portion of the previously published ruling in a new ruling that is self contained. In this case, the previously published ruling is first modified and then, as modified, is superseded.

Supplemented is used in situations in which a list, such as a list of the names of countries, is published in a ruling and that list is expanded by adding further names in subsequent rulings. After the original ruling has been supplemented several times, a new ruling may be published that includes the list in the original ruling and the additions, and supersedes all prior rulings in the series.

Suspended is used in rare situations to show that the previous published rulings will not be applied pending some future action such as the issuance of new or amended regulations, the outcome of cases in litigation, or the outcome of a Service study.

Revenue rulings and revenue procedures (hereinafter referred to as “rulings”) that have an effect on previous rulings use the following defined terms to describe the effect:

Abbreviations

The following abbreviations in current use and formerly used will appear in material published in the Bulletin.

A—Individual.

Acq.—Acquiescence.

B—Individual.

BE—Beneficiary.

BK—Bank.

B.T.A.—Board of Tax Appeals.

C—Individual.

C.B.—Cumulative Bulletin.

CFR—Code of Federal Regulations.

CI—City.

COOP—Cooperative.

Ct.D.—Court Decision.

CY—County.

D—Decedent.

DC—Dummy Corporation.

DE—Donee.

Del. Order—Delegation Order.

DISC—Domestic International Sales Corporation.

DR—Donor.

E—Estate.

EE—Employee.

E.O.—Executive Order.

ER—Employer.

ERISA—Employee Retirement Income Security Act.

EX—Executor.

F—Fiduciary.

FC—Foreign Country.

FICA—Federal Insurance Contributions Act.

FISC—Foreign International Sales Company.

FPH—Foreign Personal Holding Company.

F.R.—Federal Register.

FUTA—Federal Unemployment Tax Act.

FX—Foreign corporation.

G.C.M.—Chief Counsel's Memorandum.

GE—Grantee.

GP—General Partner.

GR—Grantor.

IC—Insurance Company.

I.R.B.—Internal Revenue Bulletin.

LE—Lessee.

LP—Limited Partner.

LR—Lessor.

M—Minor.

Nonacq.—Nonacquiescence.

O—Organization.

P—Parent Corporation.

PHC—Personal Holding Company.

PO—Possession of the U.S.

PR—Partner.

PRS—Partnership.

PTE—Prohibited Transaction Exemption.

Pub. L.—Public Law.

REIT—Real Estate Investment Trust.

Rev. Proc.—Revenue Procedure.

Rev. Rul.—Revenue Ruling.

S—Subsidiary.

S.P.R.—Statement of Procedural Rules.

Stat.—Statutes at Large.

T—Target Corporation.

T.C.—Tax Court.

T.D. —Treasury Decision.

TFE—Transferee.

TFR—Transferor.

T.I.R.—Technical Information Release.

TP—Taxpayer.

TR—Trust.

TT—Trustee.

U.S.C.—United States Code.

X—Corporation.

Y—Corporation.

Z —Corporation.

Numerical Finding List

Numerical Finding List

A cumulative list of all revenue rulings, revenue procedures, Treasury decisions, etc., published in Internal Revenue Bulletins 2003-1 through 2003-26 is in Internal Revenue Bulletin 2003-27, dated July 7, 2003.

Bulletin 2003-27 and 2003-28

 

Announcements

Article Issue Link Page
2003-45 2003-28 I.R.B. 2003-28 73
2003-48 2003-28 I.R.B. 2003-28 73
2003-47 2003-29 I.R.B.    

 

 

Notices

Article Issue Link Page
2003-38 2003-27 I.R.B. 2003-27 9
2003-39 2003-27 I.R.B. 2003-27 10
2003-40 2003-27 I.R.B. 2003-27 10
2003-41 2003-28 I.R.B. 2003-28 49
2003-42 2003-28 I.R.B. 2003-28 49
2003-43 2003-28 I.R.B. 2003-28 50
2003-44 2003-28 I.R.B. 2003-28 52
2003-46 2003-28 I.R.B. 2003-28 53
2003-45 2003-29 I.R.B.    

 

 

Proposed Regulations

Article Issue Link Page
106736-00 2003-28 I.R.B. 2003-28 60
107618-02 2003-27 I.R.B. 2003-27 13
122917-02 2003-27 I.R.B. 2003-27 15

 

 

Revenue Procedures

Article Issue Link Page
2003-45 2003-27 I.R.B. 2003-27 11
2003-46 2003-28 I.R.B. 2003-28 54
2003-47 2003-28 I.R.B. 2003-28 55
2003-48 2003-29 I.R.B.    
2003-49 2003-29 I.R.B.    
2003-50 2003-29 I.R.B.    
2003-51 2003-29 I.R.B.    

 

 

Revenue Rulings

Article Issue Link Page
2003-70 2003-27 I.R.B. 2003-27 3
2003-71 2003-27 I.R.B. 2003-27 1
2003-73 2003-28 I.R.B. 2003-28 44
2003-74 2003-29 I.R.B.    
2003-75 2003-29 I.R.B.    
2003-77 2003-29 I.R.B.    
2003-78 2003-29 I.R.B.    
2003-79 2003-29 I.R.B.    
2003-80 2003-29 I.R.B.    
2003-87 2003-29 I.R.B.    

 

 

Treasury Decisions

Article Issue Link Page
9061 2003-27 I.R.B. 2003-27 5
9062 2003-28 I.R.B. 2003-28 46

 

Effect of Current Actions on Previously Published Items

Findings List of Current Actions on Previously Published Items

A cumulative list of current actions on previously published items in Internal Revenue Bulletins 2003-1 through 2003-26 is in Internal Revenue Bulletin 2003-27, dated July 7, 2003.

Bulletin 2003-27 and 2003-28

 

Notices

Old Article Action New Article Issue Link Page
89-79 Modified and superseded by Rev. Proc. 2003-47 2003-28 I.R.B. 2003-28 55

 

 

Proposed Regulations

Old Article Action New Article Issue Link Page
EE-86-88 (LR-279-81) Withdrawn by REG-122917-02 2003-27 I.R.B. 2003-27 15

 

 

Revenue Procedures

Old Article Action New Article Issue Link Page
2002-33 Amplified and modified by Rev. Proc. 2003-50 2003-29 I.R.B.    
2002-9 Modified by Rev. Proc. 2003-45 2003-27 I.R.B. 2003-27 11
2002-9 Amplified and modified by Rev. Proc. 2003-50 2003-29 I.R.B.    
2003-15 Modified and superseded by Rev. Proc. 2003-49 2003-29 I.R.B.    
2003-3 Modified by Rev. Proc. 2003-48 2003-29 I.R.B.    
77-12 Amplified, modified, and superseded by Rev. Proc. 2003-51 2003-29 I.R.B.    
96-30 Modified and amplified by Rev. Proc. 2003-48 2003-29 I.R.B.    

 

How to get the Internal Revenue Bulletin

INTERNAL REVENUE BULLETIN

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Internal Revenue Bulletins are available annually as part of Publication 1976 (Tax Products CD-ROM). The CD-ROM can be purchased from National Technical Information Service (NTIS) on the Internet at www.irs.gov/cdorders (discount for online orders) or by calling 1-877-233-4767. The first release is available in mid-December and the final release is available in late January.

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