INCOME TAX EXEMPT ORGANIZATIONS EXCISE TAX … · Part I. Rulings and Decisions Under the Internal Revenue Code of 1986 Section 72.—Annuities; Certain Proceeds of Endowment and

HIGHLIGHTSOF THIS ISSUEThese synopses are intended only as aids to the reader inidentifying the subject matter covered. They may not berelied upon as authoritative interpretations.

INCOME TAX

Notice 2002–66, page 715.This notice extends through the end of calendar year 2002 thetransitional documentation and reporting relief for foreign part-nerships, Qualified Intermediaries (QIs), and U.S. withholdingagents specified in Notice 2001–4.

Notice 2002–67, page 715.Gain or loss; payments to peanut quota holders. Informa-tion is provided, in a question and answer format, to holders ofpeanut quotas regarding the tax treatment of federal paymentsmade under section 1309 of the Farm Security and Rural Invest-ment Act of 2002.

Announcement 2002–94, page 727.This document contains corrections to proposed regulations(REG–136311–01, 2002–36 I.R.B. 485) that explain when a for-eign corporation engaged in the international operation of shipsor aircraft may exclude its U.S. source income from gross in-come for U.S. federal income tax purposes.

EMPLOYEE PLANS

Rev. Rul. 2002–62, page 710.Substantially equal periodic payments; premature distri-butions. This ruling provides that a change to the required mini-mum distribution method of calculating substantially equal periodicpayments within the meaning of section 72(t)(2)(A)(iv) of the Codewill not generate additional income tax under section 72(t)(1).Notice 89–25 modified.

EXEMPT ORGANIZATIONS

Rev. Proc. 2002–64, page 717.This procedure provides a modified and supplemented list ofIndian tribal governments that are to be treated similarly to statesfor specified purposes under the Internal Revenue Code. This listhas been coordinated with the list of recognized tribes pub-lished by the Department of Interior, Bureau of Indian Affairs. Rev.Proc. 2001–15 superseded.

EXCISE TAX

Announcement 2002–95, page 727.This document contains a notice of public hearing scheduled forFebruary 27, 2003, on proposed regulations (REG–103829–99, 2002–27 I.R.B. 59) relating to the definition of a highway ve-hicle for purposes of various excise taxes.

ADMINISTRATIVE

Notice 2002–66, page 715.This notice extends through the end of calendar year 2002 thetransitional documentation and reporting relief for foreign part-nerships, Qualified Intermediaries (QIs), and U.S. withholdingagents specified in Notice 2001–4.

Rev. Proc. 2002–66, page 724.Penalties; substantial understatement. Guidance is pro-vided concerning when information shown on a return in accor-dance with the applicable forms and instructions will be adequatedisclosure for purposes of reducing an understatement of in-come tax under section 6662(d) of the Code. Rev. Proc. 2001–52updated.

Bulletin No. 2002–42October 21, 2002

Finding Lists begin on page ii.

The IRS Mission

Provide America’s taxpayers top quality service by helping themunderstand and meet their tax responsibilities and by applyingthe tax law with integrity and fairness to all.

IntroductionThe Internal Revenue Bulletin is the authoritative instrument of theCommissioner of Internal Revenue for announcing official rul-ings and procedures of the Internal Revenue Service and for pub-lishing Treasury Decisions, Executive Orders, Tax Conventions,legislation, court decisions, and other items of general inter-est. It is published weekly and may be obtained from the Super-intendent of Documents on a subscription basis. Bulletin contentsare consolidated semiannually into Cumulative Bulletins, whichare sold on a single-copy basis.

It is the policy of the Service to publish in the Bulletin all sub-stantive rulings necessary to promote a uniform application ofthe tax laws, including all rulings that supersede, revoke, modify,or amend any of those previously published in the Bulletin. All pub-lished rulings apply retroactively unless otherwise indicated. Pro-cedures relating solely to matters of internal management arenot published; however, statements of internal practices and pro-cedures that affect the rights and duties of taxpayers are pub-lished.

Revenue rulings represent the conclusions of the Service on theapplication of the law to the pivotal facts stated in the revenueruling. In those based on positions taken in rulings to taxpay-ers or technical advice to Service field offices, identifying de-tails and information of a confidential nature are deleted to preventunwarranted invasions of privacy and to comply with statutoryrequirements.

Rulings and procedures reported in the Bulletin do not have theforce and effect of Treasury Department Regulations, but theymay be used as precedents. Unpublished rulings will not be re-lied on, used, or cited as precedents by Service personnel in thedisposition of other cases. In applying published rulings and pro-cedures, the effect of subsequent legislation, regulations, court

decisions, rulings, and procedures must be considered, and Ser-vice personnel and others concerned are cautioned against reach-ing the same conclusions in other cases unless the facts andcircumstances are substantially the same.

The Bulletin is divided into four parts as follows:

Part I. — 1986 Code.This part includes rulings and decisions based on provisions ofthe Internal Revenue Code of 1986.

Part II.—Treaties and Tax Legislation.This part is divided into two subparts as follows: Subpart A, TaxConventions and Other Related Items, and Subpart B, Legisla-tion and Related Committee Reports.

Part III.—Administrative, Procedural, and Miscellaneous.To the extent practicable, pertinent cross references to these sub-jects are contained in the other Parts and Subparts. Also in-cluded in this part are Bank Secrecy Act Administrative Rulings.Bank Secrecy Act Administrative Rulings are issued by the De-partment of the Treasury’s Office of the Assistant Secretary (En-forcement).

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

The first Bulletin for each month includes a cumulative index forthe matters published during the preceding months. Thesemonthly indexes are cumulated on a semiannual basis, and arepublished in the first Bulletin of the succeeding semiannual pe-riod, respectively.

The contents of this publication are not copyrighted and may be reprinted freely. A citation of the Internal Revenue Bulletin as the source would be appropriate.

For sale by the Superintendent of Documents, U.S. Government Printing Office, Washington, DC 20402.

October 21, 2002 2002–42 I.R.B.

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

Section 72.—Annuities;Certain Proceeds ofEndowment and LifeInsurance Contracts

Substantially equal periodic payments;premature distributions. This ruling pro-vides that a change to the required mini-mum distribution method of calculatingsubstantially equal periodic payments withinthe meaning of section 72(t)(2)(A)(iv) of theCode will not generate additional incometax under section 72(t)(1). Q&A–12 of No-tice 89–25 modified.

Rev. Rul. 2002–62

SECTION 1. PURPOSE ANDBACKGROUND

.01 The purpose of this revenue rulingis to modify the provisions of Q&A–12 ofNotice 89–25, 1989–1 C.B. 662, which pro-vides guidance on what constitutes a se-ries of substantially equal periodic paymentswithin the meaning of § 72(t)(2)(A)(iv) ofthe Internal Revenue Code from an indi-vidual account under a qualified retire-ment plan. Section 72(t) provides for anadditional income tax on early withdraw-als from qualified retirement plans (as de-fined in § 4974(c)). Section 4974(c)provides, in part, that the term “qualifiedretirement plan” means (1) a plan describedin § 401 (including a trust exempt from taxunder § 501(a)), (2) an annuity plan de-scribed in § 403(a), (3) a tax-sheltered an-nuity arrangement described in § 403(b), (4)an individual retirement account describedin § 408(a), or (5) an individual retire-ment annuity described in § 408(b).

.02 (a) Section 72(t)(1) provides that ifan employee or IRA owner receives anyamount from a qualified retirement plan be-fore attaining age 591⁄2, the employee’s orIRA owner’s income tax is increased by anamount equal to 10-percent of the amountthat is includible in the gross income un-less one of the exceptions in § 72(t)(2) ap-plies.

(b) Section 72(t)(2)(A)(iv) provides, inpart, that if distributions are part of a se-ries of substantially equal periodic pay-ments (not less frequently than annually)made for the life (or life expectancy) of theemployee or the joint lives (or joint life ex-

pectancy) of the employee and benefi-ciary, the tax described in § 72(t)(1) will notbe applicable. Pursuant to § 72(t)(5), in thecase of distributions from an IRA, the IRAowner is substituted for the employee forpurposes of applying this exception.

(c) Section 72(t)(4) provides that if theseries of substantially equal periodic pay-ments that is otherwise excepted from the10-percent tax is subsequently modified(other than by reason of death or disabil-ity) within a 5-year period beginning on thedate of the first payment, or, if later, age591⁄2, the exception to the 10-percent taxdoes not apply, and the taxpayer’s tax forthe year of modification shall be increasedby an amount which, but for the excep-tion, would have been imposed, plus in-terest for the deferral period.

(d) Q&A–12 of Notice 89–25 sets forththree methods for determining whether pay-ments to individuals from their IRAs or, ifthey have separated from service, from theirqualified retirement plans constitute a se-ries of substantially equal periodic pay-ments for purposes of § 72(t)(2)(A)(iv).

(e) Final Income Tax Regulations thatwere published in the April 17, 2002, is-sue of theFederal Register (T.D. 8987,2002–19 I.R.B. 852) under § 401(a)(9) pro-vide new life expectancy tables for deter-mining required minimum distributions.

SECTION 2. METHODS

.01 General rule. Payments are consid-ered to be substantially equal periodic pay-ments within the meaning of§ 72(t)(2)(A)(iv) if they are made in ac-cordance with one of the three calcula-tions described in paragraphs (a) – (c) ofthis subsection (which is comprised of thethree methods described in Q&A–12 of No-tice 89–25).

(a) The required minimum distributionmethod. The annual payment for each yearis determined by dividing the account bal-ance for that year by the number from thechosen life expectancy table for that year.Under this method, the account balance, thenumber from the chosen life expectancytable and the resulting annual payments areredetermined for each year. If this methodis chosen, there will not be deemed to bea modification in the series of substan-tially equal periodic payments, even if theamount of payments changes from year to

year, provided there is not a change to an-other method of determining the payments.

(b) The fixed amortization method. Theannual payment for each year is deter-mined by amortizing in level amounts theaccount balance over a specified number ofyears determined using the chosen life ex-pectancy table and the chosen interest rate.Under this method, the account balance, thenumber from the chosen life expectancytable and the resulting annual payment aredetermined once for the first distributionyear and the annual payment is the sameamount in each succeeding year.

(c) The fixed annuitization method. Theannual payment for each year is deter-mined by dividing the account balance byan annuity factor that is the present valueof an annuity of $1 per year beginning atthe taxpayer’s age and continuing for thelife of the taxpayer (or the joint lives of theindividual and beneficiary). The annuity fac-tor is derived using the mortality table inAppendix B and using the chosen interestrate. Under this method, the account bal-ance, the annuity factor, the chosen inter-est rate and the resulting annual paymentare determined once for the first distribu-tion year and the annual payment is thesame amount in each succeeding year.

.02 Other rules. The following rules ap-ply for purposes of this section.

(a) Life expectancy tables. The life ex-pectancy tables that can be used to deter-mine distribution periods are: (1) theuniform lifetime table in Appendix A, or (2)the single life expectancy table in§ 1.401(a)(9)–9, Q&A–1 of the Income TaxRegulations or (3) the joint and last survi-vor table in § 1.401(a)(9)–9, Q&A–3. Thenumber that is used for a distribution yearis the number shown from the table for theemployee’s (or IRA owner’s) age on his orher birthday in that year. If the joint and sur-vivor table is being used, the age of the ben-eficiary on the beneficiary’s birthday in theyear is also used. In the case of the re-quired minimum distribution method, thesame life expectancy table that is used forthe first distribution year must be used ineach following year. Thus, if the taxpayeruses the single life expectancy table for therequired minimum distribution method inthe first distribution year, the same tablemust be used in subsequent distributionyears.

2002–42 I.R.B. 710 October 21, 2002

(b) Beneficiary under joint tables. If thejoint life and last survivor table in§ 1.401(a)(9)–9, Q&A–3, is used, the sur-vivor must be the actual beneficiary of theemployee with respect to the account forthe year of the distribution. If there is morethan one beneficiary, the identity and ageof the beneficiary used for purposes of eachof the methods described in section 2.01 aredetermined under the rules for determin-ing the designated beneficiary for pur-poses of § 401(a)(9). The beneficiary isdetermined for a year as of January 1 of theyear, without regard to changes in the ben-eficiary in that year or beneficiary deter-minations in prior years. For example, if ataxpayer starts distributions from an IRAin 2003 at age 50 and a 25-year-old and 55-year-old are beneficiaries on January 1, the55-year-old is the designated beneficiary andthe number for the taxpayer from the jointand last survivor tables (age 50 and age 55)would be 38.3, even though later in 2003the 55-year-old is eliminated as a benefi-ciary. However, if that beneficiary is elimi-nated or dies in 2003, under the requiredminimum distribution method, that indi-vidual would not be taken into account infuture years. If, in any year there is no ben-eficiary, the single life expectancy table isused for that year.

(c) Interest rates. The interest rate thatmay be used is any interest rate that is notmore than 120 percent of the federalmid-term rate (determined in accordancewith § 1274(d) for either of the two monthsimmediately preceding the month in whichthe distribution begins). The revenue rul-ings that contain the § 1274(d) federal mid-term rates may be found at www.irs.gov/taxpros/lists/0,,id=98042,00.html.

(d) Account balance. The account bal-ance that is used to determine paymentsmust be determined in a reasonable man-ner based on the facts and circumstances.For example, for an IRA with daily valu-ations that made its first distribution on July15, 2003, it would be reasonable to deter-mine the yearly account balance when us-ing the required minimum distributionmethod based on the value of the IRA fromDecember 31, 2002, to July 15, 2003. Forsubsequent years, under the required mini-mum distribution method, it would be rea-sonable to use the value either on December31 of the prior year or on a date within areasonable period before that year’s distri-bution.

(e) Changes to account balance. Un-der all three methods, substantially equal pe-riodic payments are calculated with respectto an account balance as of the first valu-ation date selected in paragraph (d) above.Thus, a modification to the series of pay-ments will occur if, after such date, thereis (i) any addition to the account balanceother than gains or losses, (ii) any nontax-able transfer of a portion of the account bal-ance to another retirement plan, or (iii) arollover by the taxpayer of the amount re-ceived resulting in such amount not be-ing taxable.

.03 Special rules. The special rules de-scribed below may be applicable.

(a) Complete depletion of assets. If, asa result of following an acceptable methodof determining substantially equal peri-odic payments, an individual’s assets in anindividual account plan or an IRA are ex-hausted, the individual will not be sub-ject to additional income tax under§ 72(t)(1) as a result of not receiving sub-stantially equal periodic payments and theresulting cessation of payments will not betreated as a modification of the series ofpayments.

(b) One-time change to required mini-mum distribution method. An individualwho begins distributions in a year using ei-ther the fixed amortization method or thefixed annuitization method may in any sub-sequent year switch to the required mini-mum distribution method to determine thepayment for the year of the switch and allsubsequent years and the change in methodwill not be treated as a modification withinthe meaning of § 72(t)(4). Once a changeis made under this paragraph, the requiredminimum distribution method must be fol-lowed in all subsequent years. Any subse-quent change will be a modification forpurposes of § 72(t)(4).

SECTION 3. EFFECTIVE DATE ANDTRANSITIONAL RULES

The guidance in this revenue ruling re-places the guidance in Q&A–12 of No-tice 89–25 for any series of paymentscommencing on or after January 1, 2003,and may be used for distributions com-mencing in 2002. If a series of paymentscommenced in a year prior to 2003 that sat-isfied § 72(t)(2)(A)(iv), the method of cal-culating the payments in the series ispermitted to be changed at any time to therequired minimum distribution method de-

scribed in section 2.01(a) of this guid-ance, including use of a different lifeexpectancy table.

SECTION 4. EFFECT ON OTHERDOCUMENTS

Q&A–12 of Notice 89–25 is modified.

SECTION 5. REQUEST FORCOMMENTS

The Service and Treasury invite com-ments with respect to the guidance pro-vided in this revenue ruling. Commentsshould reference Rev. Rul. 2002–62.

Comments may be submitted toCC:ITA:RU (Rev. Rul. 2002–62, room5226, Internal Revenue Service, POB 7604,Ben Franklin Station, Washington, DC20044. Comments may be hand deliveredbetween the hours of 8:30 a.m. and 5 p.m.Monday to Friday to: CC:ITA:RU (Rev.Rul. 2002–62), Courier’s Desk, InternalRevenue Service, 1111 Constitution Av-enue NW, Washington, D.C. Alternatively,comments may be submitted via the Inter-net at [email protected]. All comments will be availablefor public inspection and copying.

Drafting Information

The principal author of this revenue rul-ing is Michael Rubin of the EmployeePlans, Tax Exempt and Government Enti-ties Division. For further information re-garding this revenue ruling, please contactMr. Rubin at 1–202–283–9888 (not a toll-free number).

October 21, 2002 711 2002–42 I.R.B.

Appendix AUniform Lifetime Table

Taxpayer’s Age LifeExpectancy

Taxpayer’s Age LifeExpectancy

10 86.2 63 33.911 85.2 64 33.012 84.2 65 32.013 83.2 66 31.114 82.2 67 30.215 81.2 68 29.216 80.2 69 28.317 79.2 70 27.418 78.2 71 26.519 77.3 72 25.620 76.3 73 24.721 75.3 74 23.822 74.3 75 22.923 73.3 76 22.024 72.3 77 21.225 71.3 78 20.326 70.3 79 19.527 69.3 80 18.728 68.3 81 17.929 67.3 82 17.130 66.3 83 16.331 65.3 84 15.532 64.3 85 14.833 63.3 86 14.134 62.3 87 13.435 61.4 88 12.736 60.4 89 12.037 59.4 90 11.438 58.4 91 10.839 57.4 92 10.240 56.4 93 9.641 55.4 94 9.142 54.4 95 8.643 53.4 96 8.144 52.4 97 7.645 51.5 98 7.146 50.5 99 6.747 49.5 100 6.348 48.5 101 5.949 47.5 102 5.550 46.5 103 5.251 45.5 104 4.952 44.6 105 4.553 43.6 106 4.254 42.6 107 3.955 41.6 108 3.756 40.7 109 3.457 39.7 110 3.158 38.7 111 2.959 37.8 112 2.660 36.8 113 2.461 35.8 114 2.162 34.9 115 1.9

2002–42 I.R.B. 712 October 21, 2002

Appendix BMortality Table Used to Formulate the Single Life Table in § 1.401(a)(9)–9, Q&A–1

age qx lx age qx lx0 0.001982 1000000 58 0.004736 9410781 0.000802 998018 59 0.005101 9366212 0.000433 997218 60 0.005509 9318433 0.000337 996786 61 0.005975 9267094 0.000284 996450 62 0.006512 9211725 0.000248 996167 63 0.007137 9151736 0.000221 995920 64 0.007854 9086417 0.000201 995700 65 0.008670 9015058 0.000222 995500 66 0.009591 8936899 0.000241 995279 67 0.010620 88511810 0.000259 995039 68 0.011778 87571811 0.000277 994781 69 0.013072 86540412 0.000292 994505 70 0.014519 85409113 0.000306 994215 71 0.016139 84169014 0.000318 993911 72 0.017950 82810615 0.000331 993595 73 0.019958 81324116 0.000344 993266 74 0.022198 79701017 0.000359 992924 75 0.024699 77931818 0.000375 992568 76 0.027484 76007019 0.000392 992196 77 0.030582 73918020 0.000411 991807 78 0.034010 71657421 0.000432 991399 79 0.037807 69220322 0.000454 990971 80 0.042010 66603323 0.000476 990521 81 0.046652 63805324 0.000501 990050 82 0.051766 60828725 0.000524 989554 83 0.057392 57679826 0.000547 989035 84 0.063583 54369427 0.000567 988494 85 0.070397 50912428 0.000584 987934 86 0.077892 47328329 0.000598 987357 87 0.086124 43641830 0.000608 986767 88 0.095238 39883231 0.000615 986167 89 0.105068 36084832 0.000619 985561 90 0.115518 32293433 0.000622 984951 91 0.126487 28562934 0.000625 984338 92 0.137876 24950135 0.000629 983723 93 0.149419 21510136 0.000636 983104 94 0.161176 18296137 0.000657 982479 95 0.173067 15347238 0.000696 981834 96 0.185008 12691139 0.000749 981151 97 0.196920 10343140 0.000818 980416 98 0.210337 83063.441 0.000904 979614 99 0.224861 65592.142 0.001007 978728 100 0.241017 50843.043 0.00113 977742 101 0.259334 38589.044 0.00127 976637 102 0.280356 28581.645 0.001426 975397 103 0.303142 20568.646 0.001597 974006 104 0.329482 14333.447 0.001783 972451 105 0.359886 9610.8048 0.001979 970717 106 0.394865 6152.0149 0.002187 968796 107 0.434933 3722.8050 0.002409 966677 108 0.480599 2103.6351 0.002646 964348 109 0.532376 1092.6352 0.002896 961796 110 0.590774 510.94053 0.003167 959011 111 0.656307 209.09054 0.003453 955974 112 0.729484 71.862855 0.003754 952673 113 0.810817 19.440056 0.004069 949097 114 0.900819 3.6777257 0.004398 945235 115 1.000000 0.364760

October 21, 2002 713 2002–42 I.R.B.

Section 103(c).—Definition.Interest on State and LocalBonds

For what purposes are Indian tribal governmentstreated as states? See Rev. Proc. 2002–64, page 717.

Section 105(e).—AmountsReceived Under Accident andHealth Plans


Section 117(b)(2)(A).—Qualified Scholarships


Section 164.—Taxes


Section 170.—Charitable,etc., Contributions and Gifts


Section 403(b)(1)(A)(ii).—Taxation of Employee Annu-ities —Taxability of Benefi-ciary Under AnnuityPurchased by Section501(c)(3) Organization orPublic School


Section 454(b)(2).—Obliga-tions Issued at Discount —Short-Term Obligations Issuedon Discount Basis

For what purposes are Indial tribal governmentstreated as states? See Rev. Proc. 2002–64, page 717.

Section 511(a)(2)(B).—Imposition of Tax on Unre-lated Business Income ofCharitable, etc., Organiza-tions — Organizations Subjectto Tax


Section 2055.—Transfers forPublic, Charitable, and Reli-gious Uses


Section 2106(a)(2).—TaxableEstate — Transfers for Public,Charitable, and ReligiousUses


Section 2522.—Charitableand Similar Gifts


Section 4041(g).—Retail Ex-cise Taxes — Special Fuels —Other Exceptions


Section 4216.—Definition ofPrice


Section 4253(i).—Exemptions— State and Local Govern-mental Exemption


Section 4483(a).—Exemptions


Section 4911.—Tax on Ex-cess Expenditures to Influ-ence Legislation

For what purposes are Indial tribal governmentstreated as states? See Rev. Proc. 2002–64, page 717.

Section 4940(c).—Excise TaxBased on Investment Income— Net Investment IncomeDefined


Section 4941(d).—Taxes onSelf-Dealing


Section 4942(f).—Taxes onFailure to Distribute Income— Adjusted Net Income


Section 4945(f).—Taxes onTaxable Expenditures — Non-partisan Activities Carried onby Certain Organizations


Section 4946(c).—Definitionsand Special Rules — Govern-ment Official


2002–42 I.R.B. 714 October 21, 2002

Part III. Administrative, Procedural, and Miscellaneous

Extension of Transition Relieffor Foreign Partnerships andTheir Withholding AgentsUnder Notice 2001–4

Notice 2002–66

SECTION 1. PURPOSE

This notice extends the transitional docu-mentation and reporting relief specified inSection IV of Notice 2001–4, 2001–1 C.B.267, for foreign partnerships, Qualified In-termediaries (QI), and U.S. withholdingagents through the end of calendar year2002.

SECTION 2. BACKGROUND

In T.D. 8734, 1999–1 C.B. 455, as modi-fied by T.D. 8881, 2000–1 C.B. 1158, theIRS issued comprehensive regulations (with-holding regulations) under sections 1441–1446 and 6041–6050S of the InternalRevenue Code (the Code). These regula-tions became effective January 1, 2001. Un-der the withholding regulations, as well asthe qualified intermediary withholdingagreement (QI Agreement), a foreign part-nership generally is treated as a flow-through entity. Therefore, prior to receivinga payment, it must provide a withholdingagent, including a QI, with a FormW–8IMY together with documentation fromeach partner and a withholding statementthat allocates the payment to each of thepartners in the partnership.

The IRS recognizes that, under theserules, the withholding agent may receive ahigh volume of documentation and maytherefore experience significant process-ing problems. The withholding regula-tions address this problem by allowing aforeign partnership to become a withhold-ing foreign partnership under an agree-ment with the IRS similar to the QIAgreement. A withholding foreign partner-ship generally would not be required to pro-vide documentation for its partners to thewithholding agent.

As transition relief, pending the publi-cation of a model agreement for enteringinto a withholding foreign partnership ar-rangement, the IRS issued Notice 2001–4,applicable to calendar year 2001. Notice2001–4 allowed foreign partnerships to pro-

vide the withholding agent with a with-holding statement based on withholding ratepools, along with certain other documen-tation. In addition, under Notice 2001–4, therequired documentation for partners thatwere foreign persons or U.S. exempt re-cipients could be provided to the withhold-ing agent at any time during the calendaryear 2001.

In Notice 2002–41, 2002–24 I.R.B. 1153,the IRS published proposed guidance forentering into a withholding foreign part-nership (WP) or withholding foreign trust(WT) agreement. These proposed WP andWT agreements addressed the unique fea-tures of partnerships and trusts by adopt-ing tailored procedures for documentation,reporting, and audit that were intended tofacilitate compliance and reduce adminis-trative and audit costs.

To allow time for comments on the pro-posed WP and WT agreements, the IRS hasdetermined that it is appropriate to ex-tend the transition relief for foreign part-nerships under Section IV of Notice 2001–4to calendar year 2002. The IRS antici-pates that it will finalize the WP and WTagreements in the near future and will en-ter into WP and WT agreements with for-eign partnerships and trusts in 2003. Suchpartnerships and trusts will be able to func-tion as WPs or WTs as of the beginning of2003. The transition relief for foreign part-nerships under Section IV of Notice 2001–4will be rendered obsolete when the guid-ance for entering into a WP agreement isfinalized. Accordingly, this notice will ex-tend the relief provided in Section IV ofNotice 2001–4, through the end of calen-dar year 2002.

SECTION 3. TRANSITION RELIEF

Under the transition relief of Section IVof Notice 2001–4, as extended by this no-tice, for calendar year 2002, the IRS willpermit a foreign partnership to provide awithholding agent, including a QI, with aForm W–8IMY together with a withhold-ing statement that provides the withhold-ing agent with information regardingwithholding rate pools. The foreign part-nership must provide a separate withhold-ing rate pool for each U.S. non-exemptrecipient partner. The foreign partnershipmust associate the documentation from eachof its partners with the Form W–8IMY. If

a partner is a foreign person or a U.S. ex-empt recipient (e.g., a corporation), thatdocumentation may be provided to the with-holding agent at any time during calendaryear 2002. If a partner is a U.S. non-exemptrecipient, a Form W–9 must be providedbefore a payment is made to a partner-ship. For more detailed information regard-ing this transition relief, see Section IV ofNotice 2001–4.

CONTACT INFORMATION

The principal author of this notice isMarc J. Korab of the Office of the Asso-ciate Chief Counsel (International), Inter-nal Revenue Service, 1111 ConstitutionAvenue, NW, Washington, D.C. 20224. Forfurther information regarding this notice,contact Mr. Korab at 202–622–3840 (nota toll-free call).

Tax Treatment of PaymentsMade Under the USDA PeanutQuota Buyout Program

Notice 2002–67

PURPOSE

This notice provides answers to fre-quently asked questions regarding the taxtreatment of federal payments made pur-suant to § 1309 of the Farm Security andRural Investment Act of 2002, Pub. L. No.107–171, 116 Stat. 134, 179 (2002) (theAct).

BACKGROUND

Section 1309(a)(1) of the Act repeals themarketing quota programs for peanuts inpart VI of subtitle B of title III of the Ag-ricultural Adjustment Act of 1938, asamended (7 U.S.C. §§1357–1359a). The re-peal is effective May 13, 2002, the date theAct became law.

Section 1309(b)(1) of the Act directs theUnited States Department of Agriculture(USDA) to offer to enter into a contractwith each eligible peanut quota holder forthe purpose of providing compensation forthe lost value of the quota on account ofthe repeal. The Act provides for five an-nual, equal payments of 11¢ per pound ofpeanut quota to be paid during 2002 through

October 21, 2002 715 2002–42 I.R.B.

2006, and does not provide for the pay-ment of any interest. A quota holder alsohas an option of receiving a single lumpsum payment in any one of those five years.The contract between a quota holder andUSDA will set forth the payment terms se-lected by the quota holder.

QUESTIONS AND ANSWERS

Q–1. Are the payments received by aquota holder under the Act subject to fed-eral income tax?

A–1. Yes. If the amount paid for thequota is more than the quota holder’s ad-justed basis in the quota, the quota holderhas a taxable gain; if the amount paid forthe quota is less than the adjusted basis, thequota holder has a loss that may be de-ductible for tax purposes. The amount paidfor the quota does not include any amounttreated as interest for federal tax purposes,and the total amount paid to the quotaholder is reduced by amounts treated as in-terest before determining the quota hold-er’s gain or loss. See Q & A–7 for help indetermining whether any portion of theamount paid is treated as interest for fed-eral tax purposes.

Q–2. How does a quota holder deter-mine the adjusted basis of a quota?

A–2. The adjusted basis of a quota is de-termined differently depending upon howthe quota came into the hands of the quotaholder.

• A quota holder who holds a quota thatis derived from an original grant bythe Federal government of an acre-age allotment has a basis of zero in thequota.

• The basis of a quota that was pur-chased is the price the quota holderpaid for it. The basis of a quota thatis derived from an acreage allotmentthat was purchased is the price that thequota holder paid for the acreage al-lotment.

• Generally a quota holder who receiveda quota as a gift has the same basis inthe quota as the person who gave it tothe quota holder. Under certain cir-cumstances, the basis is increased byan amount related to the amount ofgift tax paid. If the basis is greater thanthe fair market value of the quota atthe time of the gift, the basis for de-termining loss is that fair market value.

• The basis of a quota that was inher-ited generally is the fair market valueof the quota at the time of the dece-dent’s death.

The basis of a peanut quota is not sub-ject to adjustment through amortization,depletion, or depreciation. However, if aquota holder has previously deductedamounts for these purposes, the basis shouldbe reduced by a corresponding amount be-fore determining the quota holder’s gain orloss. A similar reduction in the basis of aquota should be made for any amount pre-viously deducted as a loss because of a re-duction in the number of pounds of peanutsallowable under the quota. If a quota holderpurchased a quota or acreage allotment anddeducted the entire cost in the year of pur-chase, then the quota holder’s basis in thepurchased quota or the quota derived fromthe acreage allotment is zero.

Q–3. If a quota holder has a gain andeither receives a lump sum payment in thetaxable year that includes May 13, 2002,or elects not to use the installment method,when should the gain be included in in-come for tax purposes?

A–3. The entire gain should be takeninto account on the quota holder’s federalincome tax return for the taxable year thatincludes May 13, 2002. The amount of gainto include in income is the excess of the to-tal amount to be received, reduced by anyamount treated as interest, over the quotaholder’s adjusted basis in the quota. SeeQ & A–7 for help in determining whetherany portion of the amount to be receivedis treated as interest for federal tax pur-poses.

Q–4. If a quota holder has a gain andreports the transaction using the install-ment method, when should the gain be in-cluded in income for tax purposes?

A–4. The installment method may beused to report a gain if a quota holder re-ceives at least one payment after the closeof the holder’s taxable year that includesMay 13, 2002. The amount of gain is theexcess of the total amount to be received,reduced by any amount treated as inter-est, over the quota holder’s adjusted ba-sis in the quota. Under the installmentmethod, a proportionate amount of the gainis taken into account in each year in whicha payment is received. See the instruc-tions for Form 6252, Installment Sale In-come, for help in determining the amount

of gain to take into account. See Q & A–7for help in determining whether any por-tion of the amount to be received is treatedas interest for federal tax purposes.

Q–5. Is the gain or loss ordinary orcapital gain or loss?

A–5. Whether the gain or loss is ordi-nary or capital depends on how the quotaholder made use of the quota.

• If the quota holder used the quota inthe trade or business of farming and,on May 13, 2002, the quota holder’sholding period for the quota was morethan one year, then the transaction isreported as a section 1231 transac-tion on Form 4797, Sales of Busi-ness Property. Assuming a quotaholder has no other section 1231 trans-actions reportable on Form 4797, anygain is treated as long-term capital gainand any loss is treated as ordinary loss.Even if a quota holder has other re-portable section 1231 transactions, thenet result of all section 1231 transac-tions reported is generally either long-term capital gain or ordinary loss. Seethe instructions for Form 4797 formore detailed information.

• If the quota holder held the quota forinvestment purposes, any gain or lossis capital gain or loss. The same re-sult also applies if the quota holderheld the quota for the production of in-come, though not connected with atrade or business.

Under certain circumstances, some or allof the capital gain must be recharacter-ized and reported as ordinary income. If thequota holder previously deducted (a) thecost of acquiring a quota; (b) amounts foramortization, depletion, or depreciation; or(c) amounts to reflect a reduction in thequota pounds, any resulting capital gain istaxed as ordinary income up to the amountpreviously deducted. This amount of ordi-nary income should be included in incomein the quota holder’s return for the tax-able year that includes May 13, 2002, evenif the quota holder uses the installmentmethod to report the remainder of the gain.

Q–6. Is the compensation received un-der the Act self-employment income?

A–6. No.Q–7. How does a quota holder deter-

mine if a portion of the amount paid willbe treated as interest for federal tax pur-poses?

2002–42 I.R.B. 716 October 21, 2002

A–7. In the following three situations,no part of the amount paid is treated as in-terest for federal tax purposes:

• The total amount paid will not ex-ceed $3,000;

• All of the payments will be made onor before November 13, 2002; or

• The total amount paid will not ex-ceed $250,000, and all of the pay-ments will be made on or before May13, 2003.

In all other cases, there is a possibilitythat a portion of each payment will betreated as interest for federal tax purposes.Sections 483 and 1274 of the Internal Rev-enue Code determine whether a portion ofa payment is treated as interest and, if so,the amount of interest allocable to a pay-ment. In some cases, even a quota holderthat uses the cash receipts and disburse-ments method of accounting may have toinclude this interest in income prior to re-ceipt of any payment (for example, if thetotal payments exceed $250,000 and thecash method election under § 1274A is un-available). Except in the three situations de-scribed above, therefore, you should consultyour tax advisor to determine whether anyportion of the amount to be received istreated as interest for federal tax purposesand, if so, when the interest is includiblein income.

Q–8. For an individual quota holder,does gain or loss resulting from the ex-change of a quota qualify for farm incomeaveraging?

A–8. No. A peanut quota is consideredan interest in land, and farm income aver-aging is not available for gain or loss aris-ing from the sale or other disposition ofland.

Q–9. Are the payments under the Actsubject to information reporting?

A–9. Yes. Because a peanut quota isconsidered an interest in land, the totalamount to be received under a contract gen-erally will be reported by USDA on Form1099–S for 2002 if the amount is $600 ormore. In addition, any portion of a pay-ment treated as interest for federal tax pur-poses in an amount of $600 or moregenerally will be reported by USDA onForm 1099–INT for the year in which thepayment is made.

Q–10. Is the buyout of the peanut quo-tas under the Act an involuntary conver-sion of the quotas?

A–10. No, it is not an involuntary con-version.

DRAFTING INFORMATION

The principal author of this notice isRobert Basso of the Office of AssociateChief Counsel (Income Tax and Account-ing). For further information regardingQ & A–7 of this notice, contact PamelaLew of the Office of Associate Chief Coun-sel (Financial Institutions and Products) at(202) 622–3950 (not a toll-free call). Forfurther information regarding the remain-der of this notice, contact Mr. Basso at (202)622–4950 (not a toll-free call).

26 CFR 601.201: Rulings and determination

letters.

(Also Part I, Sections 103(c), 105(e), 117(b)(2)(A), 164,

170, 403(b)(1)(A)(ii), 454(b)(2), 511(a)(2)(B), 2055,

2106(a)(2), 2522, 4041(g), 4216, 4253(i), 4483(a),

4911, 4940(c), 4941(d), 4942(f), 4945(f), 4946(c).)

Rev. Proc. 2002–64

SECTION 1. GENERAL

.01 PURPOSE The purpose of this rev-enue procedure is to provide a modified andsupplemented list of Indian tribal govern-ments that are to be treated similarly tostates for specified purposes under the In-ternal Revenue Code.

.02 CHANGES One tribe was added tothe list of Indian tribal governments pub-lished in Rev. Rul. 2001–15. In addition,there were several tribal name changes.

.03 BACKGROUND The Indian TribalGovernmental Tax Status Act of 1982 (TitleII of Pub. L. No. 97–473, 1983–1 C.B. 510,511, as amended by Pub. L. No. 98–21,1983–2 C.B. 309, 315) added certain pro-visions to the Code that pertain to the sta-tus of Indian tribal governments. Section7871(a) of the Internal Revenue Code andSection 305.7871–1 of the Income TaxRegulations provide that Indian tribal gov-ernments (or subdivisions thereof) will betreated as states for certain enumerated fed-eral tax purposes. For example, charitablecontributions to or for the use of a tribalgovernment may be deductible under thefederal income, gift, and estate tax laws; atribal government is entitled to exemp-tion from certain excise taxes; taxes im-posed by a tribe may be deductible; andpublic activity bonds may be tax exempt

obligations. Section 1065 of the Tax Re-form Act of 1984, 1984–3 (Vol. 1) C.B.556, made permanent the rules treating In-dian tribal governments (or subdivisionsthereof) as states (or political subdivisionsthereof).

.04 DEFINITIONS The term “ Indiantribal government” is defined under sec-tion 7701(a)(40) of the Code, as amended,to mean the governing body of any tribe,band, community, village or group of In-dians, or (if applicable) Alaska Natives thatis determined by the Secretary of Trea-sury, after consultation with the Secretaryof the Interior, to exercise governmentalfunctions. Section 7871(d) of the Codestates that, for purposes of section 7871(a),a subdivision of an Indian tribal govern-ment shall be treated as a political subdi-vision of a state if (and only if) theSecretary of the Treasury determines (af-ter consultation with the Secretary of theInterior) that such subdivision has been del-egated the right to exercise one or more ofthe substantial governmental functions ofthe Indian tribal government.

SECTION 2. APPLICATION

.01 QUALIFICATIONS The follow-ing modified and supplemented list of In-dian tribal entities, including Indian tribes,bands, communities, villages, and groupsof Indians, as well as Alaska Natives, rep-resents Indian tribal governments and issubject to these qualifications:

(1) The list does not include Indian tribalsubdivisions because the determination ofwhich entities qualify as subdivisions is dis-cussed in Rev. Proc. 84–36, 1984–1 C.B.510, as modified by Rev. Proc. 86–17,1986–1 C.B. 550.

(2) Temporary Regulation section305.7701–1(a) defines “governmental func-tions” for purposes of defining an Indiantribal government or political subdivisionthereof. Tribal entities not appearing on thislist may apply for a ruling on whether theyqualify pursuant to all applicable proce-dural rules set forth in the Statement of Pro-cedural Rules (26 CFR Part 601), andguidelines set forth in Rev. Proc. 84–37,1984–1 C.B. 513, as modified by Rev. Proc.86–17, 1986–1 C.B. 550, and Rev. Proc.2001–1, 2001–1 C.B. 1.

(3) Inclusion on a published list does notnecessarily establish that a tribe qualifiesfor a particular tax benefit. For example,when a tribal entity seeks exemption from

October 21, 2002 717 2002–42 I.R.B.

excise taxes, the entity must be able to dem-onstrate that the underlying transaction in-volves the exercise of an essentialgovernmental function of the Indian tribalgovernment.

SECTION 3. LIST

.01 INDIAN TRIBAL ENTITIES THATEXERCISE GOVERNMENTAL FUNC-TIONS FOR PURPOSES OF TITLE IIPUB. L. NO. 97–473.

Absentee-Shawnee Tribe of Indians ofOklahoma

Agua Caliente Band of Cahuilla Indiansof the Agua Caliente IndianReservation, California

Ak Chin Indian Community of theMaricopa (Ak Chin) IndianReservation, Arizona

Alabama-Coushatta Tribes of Texas

Alabama-Quassarte Tribal Town,Oklahoma

Alturas Indian Rancheria, California

Apache Tribe of Oklahoma

Arapahoe Tribe of the Wind RiverReservation, Wyoming

Aroostook Band of Micmac Indians ofMaine

Assiniboine and Sioux Tribes of the FortPeck Indian Reservation, Montana

Augustine Band of Cahuilla MissionIndians of the Augustine Reservation,California

Bad River Band of the Lake SuperiorTribe of Chippewa Indians of the BadRiver Reservation, Wisconsin

Bay Mills Indian Community, Michigan(previously listed as the Bay MillsIndian Community of the Sault Ste.Marie Band of Chippewa Indians,Bay Mills Reservation, Michigan)

Bear River Band of the RohnervilleRancheria, California

Berry Creek Rancheria of Maidu Indiansof California

Big Lagoon Rancheria, California

Big Pine Band of Owens ValleyPaiute Shoshone Indians of the Big PineReservation, California

Big Sandy Rancheria of Mono Indiansof California

Big Valley Band of Pomo Indians of theBig Valley Rancheria, California

Blackfeet Tribe of the Blackfeet IndianReservation of Montana

Blue Lake Rancheria, California

Bridgeport Paiute Indian Colony ofCalifornia

Buena Vista Rancheria of Me-WukIndians of California

Burns Paiute Tribe of the Burns PaiuteIndian Colony of Oregon

Cabazon Band of Cahuilla MissionIndians of the Cabazon Reservation,California

Cachil DeHe Band of Wintun Indians ofthe Colusa Indian Community of theColusa Rancheria, California

Caddo Indian Tribe of Oklahoma

Cahto Indian Tribe of the LaytonvilleRancheria, California

Cahuilla Band of Mission Indians of theCahuilla Reservation, California

California Valley Miwok Tribe,California (formerly the Sheep RanchRancheria of Me-Wuk Indiansof California)

Campo Band of Diegueno MissionIndians of the Campo IndianReservation, California

Capitan Grande Band of DieguenoMission Indians of California

Barona Group of Capitan Grande Bandof Mission Indians of the BaronaReservation, California

Viejas (Baron Long) Group of CapitanGrande Band of Mission Indians of theViejas Reservation, California

Catawba Indian Nation (aka Catawba Tribeof South Carolina)

Cayuga Nation of New York

Cedarville Rancheria, California

Chemehuevi Indian Tribe of theChemehuevi Reservation, California

Cher-Ae Heights Indian Community of theTrinidad Rancheria, California

Cherokee Nation, Oklahoma

Cheyenne-Arapaho Tribes of Oklahoma

Cheyenne River Sioux Tribe of theCheyenne River Reservation,South Dakota

Chickasaw Nation, Oklahoma

Chicken Ranch Rancheria of Me-WukIndians of California

Chippewa-Cree Indians of the Rocky Boy’sReservation, Montana

Chitimacha Tribe of Louisiana

Choctaw Nation of Oklahoma

Citizen Potawatomi Nation, Oklahoma

Cloverdale Rancheria of Pomo Indians ofCalifornia

Cocopah Tribe of Arizona

Coeur D’Alene Tribe of the Coeur D’AleneReservation, Idaho

Cold Springs Rancheria of Mono Indiansof California

Colorado River Indian Tribes of theColorado River Indian Reservation,Arizona and California

Comanche Nation, Oklahoma (formerly theComanche Indian Tribe)

Confederated Salish & Kootenai Tribes ofthe Flathead Reservation, Montana

Confederated Tribes of the ChehalisReservation, Washington

Confederated Tribes of the ColvilleReservation, Washington

Confederated Tribes of the Coos, LowerUmpqua and Siuslaw Indians of Oregon

Confederated Tribes of the GoshuteReservation, Nevada and Utah

Confederated Tribes of the Grand RondeCommunity of Oregon

Confederated Tribes of the SiletzReservation, Oregon

Confederated Tribes of the UmatillaReservation, Oregon

Confederated Tribes of the Warm SpringsReservation of Oregon

Confederated Tribes and Bands of theYakama Nation, Washington, (formerlythe Confederated Tribes and Bands of theYakama Indian Nation of the YakamaReservation)

Coquille Tribe of Oregon

Cortina Indian Rancheria of WintunIndians of California

Coushatta Tribe of Louisiana

Cow Creek Band of Umpqua Indians ofOregon

Cowlitz Indian Tribe, Washington

2002–42 I.R.B. 718 October 21, 2002

Coyote Valley Band of Pomo Indians ofCalifornia

Crow Tribe of Montana

Crow Creek Sioux Tribe of the Crow CreekReservation, South Dakota

Cuyapaipe Community of DieguenoMission Indians of the CuyapaipeReservation, California

Death Valley Timbi-Sha Shoshone Band ofCalifornia

Delaware Nation, Oklahoma (formerly theDelaware Tribe of Western Oklahoma)

Delaware Tribe of Indians, Oklahoma

Dry Creek Rancheria of Pomo Indians ofCalifornia

Duckwater Shoshone Tribe of theDuckwater Reservation, Nevada

Eastern Band of Cherokee Indians of NorthCarolina

Eastern Shawnee Tribe of Oklahoma

Elem Indian Colony of Pomo Indians of theSulphur Bank Rancheria, California

Elk Valley Rancheria, California

Ely Shoshone Tribe of Nevada

Enterprise Rancheria of Maidu Indians ofCalifornia

Flandreau Santee Sioux Tribe of SouthDakota

Forest County Potawatomi Community,Wisconsin (previously listed as theForest County Potawatomi Community ofWisconsin Potawatomi Indians,Wisconsin)

Fort Belknap Indian Community of the FortBelknap Reservation of Montana

Fort Bidwell Indian Community of the FortBidwell Reservation of California

Fort Independence Indian Community ofPaiute Indians of the Fort IndependenceReservation, California

Fort McDermitt Paiute and Shoshone Tribesof the Fort McDermitt IndianReservation, Nevada and Oregon

Fort McDowell Yavapai Nation, Arizona(formerly the Fort McDowell Mohave-Apache Community of the FortMcDowell Indian Reservation)

Fort Mojave Indian Tribe of Arizona,California and Nevada

Fort Sill Apache Tribe of Oklahoma

Gila River Indian Community of the GilaRiver Indian Reservation, Arizona

Grand Traverse Band of Ottawa andChippewa Indians, Michigan (previouslylisted as the Grand Traverse Band ofOttawa & Chippewa Indians ofMichigan)

Graton Rancheria, California

Greenville Rancheria of Maidu Indians ofCalifornia

Grindstone Indian Rancheria of Wintun-Wailaki Indians of California

Guidiville Rancheria of California

Hannahville Indian Community,Michigan (previously listed as theHannahville Indian Community ofWisconsin Potawatomi Indians ofMichigan)

Havasupai Tribe of the HavasupaiReservation, Arizona

Ho-Chunk Nation of Wisconsin (formerlythe Wisconsin Winnebago Tribe)

Hoh Indian Tribe of the Hoh IndianReservation, Washington

Hoopa Valley Tribe, California

Hopi Tribe of Arizona

Hopland Band of Pomo Indians of theHopland Rancheria, California

Houlton Band of Maliseet Indians of Maine

Hualapai Indian Tribe of the HualapaiIndian Reservation, Arizona

Huron Potawatomi, Inc., Michigan

Inaja Band of Diegueno Mission Indians ofthe Inaja and Cosmit Reservation,California

Ione Band of Miwok Indians ofCalifornia

Iowa Tribe of Kansas and Nebraska

Iowa Tribe of Oklahoma

Jackson Rancheria of Me-Wuk Indians ofCalifornia

Jamestown S’Klallam Tribe ofWashington

Jamul Indian Village of California

Jena Band of Choctaw Indians, Louisiana

Jicarilla Apache Nation, New Mexico(formerly the Jicarilla Apache Tribe of theJicarilla Apache Indian Reservation)

Kaibab Band of Paiute Indians of theKaibab Indian Reservation, Arizona

Kalispel Indian Community of theKalispel Reservation, Washington

Karuk Tribe of California

Kashia Band of Pomo Indians of theStewarts Point Rancheria, California

Kaw Nation, Oklahoma

Keweenaw Bay Indian Community,Michigan (previously listed as theKeweenaw Bay Indian Community ofL’ Anse and Ontonagon Bands ofChippewa Indians of the L’AnseReservation, Michigan)

Kialegee Tribal Town, Oklahoma

Kickapoo Tribe of Indians of theKickapoo Reservation in Kansas

Kickapoo Tribe of Oklahoma

Kickapoo Traditional Tribe of Texas

Kiowa Indian Tribe of Oklahoma

Klamath Indian Tribe of Oregon

Kootenai Tribe of Idaho

La Jolla Band of Luiseno MissionIndians of the La Jolla Reservation,California

La Posta Band of Diegueno MissionIndians of the La Posta IndianReservation, California

Lac Courte Oreilles Band of LakeSuperior Chippewa Indians ofWisconsin (previously listed as the LacCourte Oreilles Band of Lake SuperiorChippewa Indians of the Lac CourteOreilles Reservation of Wisconsin)

Lac du Flambeau Band of Lake SuperiorChippewa Indians of the Lac duFlambeau Reservation of Wisconsin

Lac Vieux Desert Band of Lake SuperiorChippewa Indians, Michigan (previouslylisted as the Lac Vieux Desert Band ofLake Superior Chippewa Indians ofMichigan)

Las Vegas Tribe of Paiute Indians of the LasVegas Indian Colony, Nevada

Little River Band of Ottawa Indians,Michigan (previously listed as the LittleRiver Band of Ottawa Indians ofMichigan)

Little Traverse Bay Bands of OdawaIndians, Michigan (previously listed as theLittle Traverse Bay Bands of OdawaIndians of Michigan)

October 21, 2002 719 2002–42 I.R.B.

Los Coyotes Band of Cahuilla MissionIndians of the Los Coyotes Reservation,California

Lovelock Paiute Tribe of the LovelockIndian Colony, Nevada

Lower Brule Sioux Tribe of the LowerBrule Reservation, South Dakota

Lower Elwha Tribal Community of theLower Elwha Reservation, Washington

Lower Lake Rancheria, California

Lower Sioux Indian Community in the Stateof Minnesota (previously listed as theLower Sioux Indian Community ofMinnesota Mdewakanton Sioux Indiansof the Lower Sioux Reservation inMinnesota)

Lummi Tribe of the Lummi Reservation,Washington

Lytton Rancheria of California

Makah Indian Tribe of the Makah IndianReservation, Washington

Manchester Band of Pomo Indians of theManchester-Point Arena Rancheria,California

Manzanita Band of Diegueno MissionIndians of the Manzanita Reservation,California

Mashantucket Pequot Tribe ofConnecticut

Match-e-be-nash-she-wish Band ofPottawatomi Indians of Michigan

Mechoopda Indian Tribe of ChicoRancheria, California

Menominee Indian Tribe of Wisconsin

Mesa Grande Band of Diegueno MissionIndians of the Mesa GrandeReservation, California

Mescalero Apache Tribe of the MescaleroReservation, New Mexico

Miami Tribe of Oklahoma

Miccosukee Tribe of Indians of Florida

Middletown Rancheria of Pomo Indians ofCalifornia

Minnesota Chippewa Tribe, Minnesota (Sixcomponent reservations: Bois Forte Band(Nett Lake); Fond du Lac Band; GrandPortage Band; Leech Lake Band; MilleLacs Band; White Earth Band)

Mississippi Band of Choctaw Indians,Mississippi

Moapa Band of Paiute Indians of the MoapaRiver Indian Reservation, Nevada

Modoc Tribe of Oklahoma

Mohegan Indian Tribe of Connecticut

Mooretown Rancheria of Maidu Indians ofCalifornia

Morongo Band of Cahuilla MissionIndians of the Morongo Reservation,California

Muckleshoot Indian Tribe of theMuckleshoot Reservation, Washington

Muscogee (Creek) Nation, Oklahoma

Narragansett Indian Tribe ofRhode Island

Navajo Nation, Arizona, New Mexico andUtah

Nez Perce Tribe of Idaho

Nisqually Indian Tribe of the NisquallyReservation, Washington

Nooksack Indian Tribe of Washington

Northern Cheyenne Tribe of the NorthernCheyenne Indian Reservation, Montana

Northfork Rancheria of Mono Indians ofCalifornia

Northwestern Band of Shoshoni Nation ofUtah (Washakie)

Oglala Sioux Tribe of the Pine RidgeReservation, South Dakota

Omaha Tribe of Nebraska

Oneida Nation of New York

Oneida Tribe of Indians of Wisconsin(previously listed as the Oneida Tribe ofWisconsin)

Onondaga Nation of New York

Osage Tribe, Oklahoma

Ottawa Tribe of Oklahoma

Otoe-Missouria Tribe of Indians,Oklahoma

Paiute Indian Tribe of Utah (Cedar CityBand of Paiutes, Kanosh Band of Paiutes,Koosharem Band of Paiutes, Indian PeaksBand of Paiutes, and Shivwits Band ofPaiutes)

Paiute-Shoshone Indians of the BishopCommunity of the Bishop Colony,California

Paiute-Shoshone Tribe of the FallonReservation and Colony, Nevada

Paiute-Shoshone Indians of the Lone PineCommunity of the Lone PineReservation, California

Pala Band of Luiseno Mission Indians ofthe Pala Reservation, California

Pascua Yaqui Tribe of Arizona

Paskenta Band of Nomlaki Indians ofCalifornia

Passamaquoddy Tribe of Maine

Pauma Band of Luiseno Mission Indians ofthe Pauma and Yuima Reservation,California

Pawnee Nation of Oklahoma

Pechanga Band of Luiseno MissionIndians of the Pechanga Reservation,California

Penobscot Tribe of Maine

Peoria Tribe of Indians of Oklahoma

Picayune Rancheria of ChukchansiIndians of California

Pinoleville Rancheria of Pomo Indians ofCalifornia

Pit River Tribe, California (includes BigBend, Lookout, Montgomery Creek &Roaring Creek Rancherias & XL Ranch)

Poarch Band of Creek Indians of Alabama

Pokagon Band of Potawatomi Indians,Michigan and Indiana (previously listedas the Pokagon Band of PotawatomiIndians of Michigan)

Ponca Tribe of Indians of Oklahoma

Ponca Tribe of Nebraska

Port Gamble Indian Community of the PortGamble Reservation, Washington

Potter Valley Rancheria of Pomo Indians ofCalifornia

Prairie Band of Potawatomi Nation,Kansas (formerly the Prairie Band ofPotawatomi Indians)

Prairie Island Indian Community in theState of Minnesota (previously listed asthe Prairie Island Indian Community ofMinnesota Mdewakanton Sioux Indiansof the Prairie Island Reservation,Minnesota)

Pueblo of Acoma, New Mexico

Pueblo of Cochiti, New Mexico

Pueblo of Isleta, New Mexico

Pueblo of Jemez, New Mexico

Pueblo of Laguna, New Mexico

2002–42 I.R.B. 720 October 21, 2002

Pueblo of Nambe, New Mexico

Pueblo of Picuris, New Mexico

Pueblo of Pojoaque, New Mexico

Pueblo of San Felipe, New Mexico

Pueblo of San Juan, New Mexico

Pueblo of San Ildefonso, New Mexico

Pueblo of Sandia, New Mexico

Pueblo of Santa Ana, New Mexico

Pueblo of Santa Clara, New Mexico

Pueblo of Santo Domingo, New Mexico

Pueblo of Taos, New Mexico

Pueblo of Tesuque, New Mexico

Pueblo of Zia, New Mexico

Puyallup Tribe of the PuyallupReservation, Washington

Pyramid Lake Paiute Tribe of thePyramid Lake Reservation, Nevada

Quapaw Tribe of Indians, Oklahoma

Quartz Valley Indian Community of theQuartz Valley Reservation of California

Quechan Tribe of the Fort Yuma IndianReservation, California and Arizona

Quileute Tribe of the QuileuteReservation, Washington

Quinault Tribe of the QuinaultReservation, Washington

Ramona Band or Village of CahuillaMission Indians of California

Red Cliff Band of Lake Superior ChippewaIndians of Wisconsin

Red Lake Band of Chippewa Indians,Minnesota (previously listed as the RedLake Band of Chippewa Indians of theRed Lake Reservation, Minnesota)

Redding Rancheria, California

Redwood Valley Rancheria of PomoIndians of California

Reno-Sparks Indian Colony, Nevada

Resighini Rancheria, California (formerlythe Coast Indian Community of YurokIndians of the Resighini Rancheria)

Rincon Band of Luiseno Mission Indiansof the Rincon Reservation, California

Robinson Rancheria of Pomo Indians ofCalifornia

Rosebud Sioux Tribe of the RosebudIndian Reservation, South Dakota

Round Valley Indian Tribes of the RoundValley Reservation, California (formerlythe Covelo Indian Community)

Rumsey Indian Rancheria of WintunIndians of California

Sac and Fox Tribe of the Mississippi inIowa

Sac and Fox Nation of Missouri inKansas and Nebraska

Sac and Fox Nation, Oklahoma

Saginaw Chippewa Indian Tribe ofMichigan (previously listed as theSaginaw Chippewa Indian Tribe ofMichigan, Isabella Reservation)

St. Croix Chippewa Indians of Wisconsin(previously listed as the St. CroixChippewa Indians of Wisconsin, St. CroixReservation)

St. Regis Band of Mohawk Indians of NewYork

Salt River Pima-Maricopa IndianCommunity of the Salt RiverReservation, Arizona

Samish Indian Tribe, Washington

San Carlos Apache Tribe of theSan Carlos Reservation, Arizona

San Juan Southern Paiute Tribe ofArizona

San Manuel Band of Serrano MissionIndians of the San Manuel Reservation,California

San Pasqual Band of Diegueno MissionIndians of California

Santa Rosa Indian Community of the SantaRosa Rancheria, California

Santa Rosa Band of Cahuilla MissionIndians of the Santa Rosa Reservation,California

Santa Ynez Band of Chumash MissionIndians of the Santa Ynez Reservation,California

Santa Ysabel Band of Diegueno MissionIndians of the Santa YsabelReservation, California

Santee Sioux Tribe of the SanteeReservation of Nebraska

Sauk-Suiattle Indian Tribe of Washington

Sault Ste. Marie Tribe of ChippewaIndians of Michigan

Scotts Valley Band of Pomo Indians ofCalifornia

Seminole Nation of Oklahoma

Seminole Tribe of Florida, Dania, BigCypress, Brighton, Hollywood and TampaReservations

Seneca Nation of New York

Seneca-Cayuga Tribe of Oklahoma

Shakopee Mdewakanton SiouxCommunity of Minnesota (previouslylisted as the Shakopee MdewakantonSioux Community of Minnesota (PriorLake))

Shawnee Tribe, Oklahoma

Sherwood Valley Rancheria of PomoIndians of California

Shingle Springs Band of Miwok Indians,Shingle Springs Rancheria (Verona Tract),California

Shoalwater Bay Tribe of the ShoalwaterBay Indian Reservation, Washington

Shoshone Tribe of the Wind RiverReservation, Wyoming

Shoshone-Bannock Tribes of the Fort HallReservation of Idaho

Shoshone-Paiute Tribes of the DuckValley Reservation, Nevada

Sisseton-Wahpeton Sioux Tribe of the LakeTraverse Reservation, South Dakota

Skokomish Indian Tribe of theSkokomish Reservation, Washington

Skull Valley Band of Goshute Indians ofUtah

Smith River Rancheria, California

Snoqualmie Tribe, Washington

Soboba Band of Luiseno Indians,California (formerly the Soboba Band ofLuiseno Mission Indians of the SobobaReservation)

Sokaogon Chippewa Community,Wisconsin (previously listed as theSokaogon Chippewa Community of theMole Lake Band of Chippewa Indians,Wisconsin)

Southern Ute Indian Tribe of theSouthern Ute Reservation, Colorado

Spirit Lake Tribe, North Dakota

Spokane Tribe of the SpokaneReservation, Washington

Squaxin Island Tribe of the SquaxinIsland Reservation, Washington

October 21, 2002 721 2002–42 I.R.B.

Standing Rock Sioux Tribe of North andSouth Dakota

Stockbridge Munsee Community,Wisconsin (previously listed as theStockbridge-Munsee Community ofMohican Indians of Wisconsin)

Stillaguamish Tribe of Washington

Summit Lake Paiute Tribe of Nevada

Suquamish Indian Tribe of the PortMadison Reservation, Washington

Susanville Indian Rancheria, California

Swinomish Indians of the SwinomishReservation, Washington

Sycuan Band of Diegueno MissionIndians of California

Table Bluff Reservation—Wiyot Tribe,California

Table Mountain Rancheria of California

Te-Moak Tribes of Western ShoshoneIndians of Nevada (Four constituentbands: Battle Mountain Band; Elko Band;South Fork Band; and Wells ColonyBand)

Thlopthlocco Tribal Town, Oklahoma

Three Affiliated Tribes of the FortBerthold Reservation, North Dakota

Tohono O’odham Nation of Arizona

Tonawanda Band of Seneca Indians ofNew York

Tonkawa Tribe of Indians of Oklahoma

Tonto Apache Tribe of Arizona

Torres-Martinez Band of CahuillaMission Indians of California

Tulalip Tribes of the Tulalip Reservation,Washington

Tule River Indian Tribe of the Tule RiverReservation, California

Tunica-Biloxi Indian Tribe of Louisiana

Tuolumne Band of Me-Wuk Indians of theTuolumne Rancheria of California

Turtle Mountain Band of ChippewaIndians of North Dakota

Tuscarora Nation of New York

Twenty-Nine Palms Band of MissionIndians of California (previously listed asthe Twenty-Nine Palms Band of LuisenoMission Indians of California)

United Auburn Indian Community of theAuburn Rancheria of California

United Keetoowah Band of CherokeeIndians in Oklahoma (previously listed asthe United Keetoowah Band ofCherokee Indians of Oklahoma)

Upper Lake Band of Pomo Indians ofUpper Lake Rancheria of California

Upper Sioux Community, Minnesota (pre-viously listed as the Upper SiouxIndian Community of the Upper SiouxReservation, Minnesota)

Upper Skagit Indian Tribe of Washington

Ute Indian Tribe of the Uintah and OurayReservation, Utah

Ute Mountain Tribe of the Ute MountainReservation, Colorado, New Mexico andUtah

Utu Utu Gwaitu Paiute Tribe of theBenton Paiute Reservation, California

Walker River Paiute Tribe of the WalkerRiver Reservation, Nevada

Wampanoag Tribe of Gay Head(Aquinnah) of Massachusetts

Washoe Tribe of Nevada & California(Carson Colony, Dresslerville Colony,Woodfords Community, StewartCommunity, & Washoe Ranches)

White Mountain Apache Tribe of the FortApache Reservation, Arizona

Wichita and Affiliated Tribes (Wichita,Keechi, Waco & Tawakonie), Oklahoma

Winnebago Tribe of Nebraska

Winnemucca Indian Colony of Nevada

Wyandotte Tribe of Oklahoma

Yankton Sioux Tribe of South Dakota

Yavapai-Apache Nation of the CampVerde Indian Reservation, Arizona

Yavapai-Prescott Tribe of the YavapaiReservation, Arizona

Yerington Paiute Tribe of the YeringtonColony and Campbell Ranch, Nevada

Yomba Shoshone Tribe of the YombaReservation, Nevada

Ysleta Del Sur Pueblo of Texas

Yurok Tribe of the Yurok Reservation,California

Zuni tribe of the Zuni Reservation,New Mexico

ALASKA NATIVE ENTITIES

Afognak, Village of Afognak

Agdaagux Tribe of King Cove

Akhiok, Native Village of Akhiok

Akiachak Native Community

Akiak Native Community

Akutan, Native Village of Akutan

Alakanuk, Village of Alakanuk

Alatna Village

Aleknagik, Native Village of Aleknagik

Algaaciq Native Village of Algaaciq(St. Mary’s)

Allakaket Village

Ambler, Native Village of Ambler

Anaktuvuk Pass, Village of Anaktuvuk Pass

Andreafski, Yupiit of Andreafski

Angoon Community Association

Aniak, Village of Aniak

Anvik Village

Arctic Village (See Venetie, NativeVillage of Venetie Tribal Government)

Asa’carsarmiut Tribe (formerly theNative Village of Mountain Village)

Atka, Native Village of Atka

Atmautluak, Village of Atmautluak

Atqasuk Village (Atkasook)

Barrow, Native Village of Barrow InupiatTraditional Government

Beaver Village

Belkofski, Native Village of Belkofski

Bill Moore’s Slough, Village of BillMoore’s Slough

Birch Creek Tribe

Brevig Mission, Native Village of BrevigMission

Buckland, Native Village of Buckland

Cantwell, Native Village of Cantwell

Chanega, Native Village of Chanega(aka Chenega)

Chalkyitsik Village

Cheesh-Na Tribe (formerly the NativeVillage of Chistochina)

Chefornak, Village of Chefornak

Chevak Native Village

Chickaloon Native Village

Chignik, Native Village of Chignik

Chignik Lagoon, Native Village of ChignikLagoon

2002–42 I.R.B. 722 October 21, 2002

Chignik Lake Village

Chilkat Indian Village (Klukwan)

Chilkoot Indian Association (Haines)

Chinik Eskimo Community (Golovin)

Chitina, Native Village of Chitina

Chuathbaluk, Native Village ofChuathbaluk (Russian Mission,Kuskokwim)

Chuloonawick Native Village

Circle Native Community

Clarks Point, Village of Clarks Point(previously listed as the Village of Clark’sPoint)

Council, Native Village of Council

Craig Community Association

Crooked Creek, Village of Crooked Creek

Curyung Tribal Council (formerly NativeVillage of Dillingham)

Deering, Native Village of Deering

Diomede, Native Village of Diomede(aka Inalik)

Dot Lake, Village of Dot Lake

Douglas Indian Association

Eagle, Native Village of Eagle

Eek, Native Village of Eek

Egegik Village

Eklutna Native Village

Ekuk, Native Village of Ekuk

Ekwok Village

Elim, Native Village of Elim

Emmonak Village

Evansville Village (aka Bettles Field)

Eyak, Native Village of Eyak (Cordova)

False Pass, Native Village of False Pass

Fort Yukon, Native Village of Fort Yukon

Gakona, Native Village of Gakona

Galena Village (aka Louden Village)

Gambell, Native Village of Gambell

Georgetown, Native Village ofGeorgetown

Goodnews Bay, Native Village ofGoodnews Bay

Grayling, Organized Village of Grayling(aka Holikachuk)

Gulkana Village

Hamilton, Native Village of Hamilton

Healy Lake Village

Holy Cross Village

Hoonah Indian Association

Hooper Bay, Native Village of Hooper Bay

Hughes Village

Huslia Village

Hydaburg Cooperative Association

Igiugig Village

Iliamna, Village of Iliamna

Inupiat Community of the Arctic Slope

Iqurmuit Traditional Council (formerlyNative Village of Russian Mission)

Ivanoff Bay Village

Kaguyak Village

Kake, Organized Village of Kake

Kaktovik Village (aka Barter Island)

Kalskag, Village of Kalskag

Kaltag, Village of Kaltag

Kanatak, Native Village of Kanatak

Karluk, Native Village of Karluk

Kasaan, Organized Village of Kasaan

Kasigluk, Native Village of Kasigluk

Kenaitze Indian Tribe

Ketchikan Indian Corporation

Kiana, Native Village of Kiana

King Island Native Community

King Salmon Tribe

Kipnuk, Native Village of Kipnuk

Kivalina, Native Village of Kivalina

Klawock Cooperative Association

Kluti Kaah, Native Village of Kluti Kaah(aka Copper Center)

Knik Tribe

Kobuk, Native Village of Kobuk

Kokhanok Village

Kongiganak, Native Village ofKongiganak

Kotlik, Village of Kotlik

Kotzebue, Native Village of Kotzebue

Koyuk, Native Village of Koyuk

Koyukuk Native Village

Kwethluk, Organized Village ofKwethluk

Kwigillingok, Native Village ofKwigillingok

Kwinhagak, Native Village ofKwinhagak (aka Quinhagak)

Larsen Bay, Native Village of Larsen Bay

Levelock Village

Lesnoi Village (aka Woody Island)

Lime Village

Lower Kalskag, Village of LowerKalskag

Manley Hot Springs Village

Manokotak Village

Marshall, Native Village of Marshall (akaFortuna Ledge)

Mary’s Igloo, Native Village of Mary’sIgloo

McGrath Native Village

Mekoryuk, Native Village of Mekoryuk

Mentasta Traditional Council (formerlyMentasta Lake Village)

Metlakatla Indian Community, AnnetteIsland Reserve

Minto, Native Village of Minto

Naknek Native Village

Nanwalek, Native Village of Nanwalek (akaEnglish Bay)

Napaimute, Native Village of Napaimute

Napakiak, Native Village of Napakiak

Napaskiak, Native Village Napaskiak

Nelson Lagoon, Native Village of NelsonLagoon

Nenana Native Association

New Koliganek Village Council (formerlythe Koliganek Village)

New Stuyahok Village

Newhalen Village

Newtok Village

Nightmute, Native Village of Nightmute

Nikolai Village

Nikolski, Native Village of Nikolski

Ninilchik Village

Noatak, Native Village of Noatak

Nome Eskimo Community

Nondalton Village

Noorvik Native Community

Northway Village

Nuiqsut, Native Village of Nuiqsut(aka Nooiksut)

October 21, 2002 723 2002–42 I.R.B.

Nulato Village

Nunakauyarmiut Tribe (formerly theNative Village of Toksook Bay)

Nunapitchuk, Native Village of Nunapitchuk

Ohogamiut, Village of Ohogamiut

Old Harbor, Village of Old Harbor

Orutsararmuit Native Village (aka Bethel)

Oscarville Traditional Village

Ouzinkie, Native Village of Ouzinkie

Paimiut, Native Village of Paimiut

Pauloff Harbor Village

Pedro Bay Village

Perryville, Native Village of Perryville

Petersburg Indian Association

Pilot Point, Native Village of Pilot Point

Pilot Station Traditional Village

Pitka’s Point, Native Village of Pitka’s Point

Platinum Traditional Village

Point Hope, Native Village of Point Hope

Point Lay, Native Village of Point Lay

Port Graham, Native Village of PortGraham

Port Heiden, Native Village of Port Heiden

Port Lions, Native Village of Port Lions

Portage Creek Village (aka Ohgsenakale)

Pribilof Islands Aleut Communities ofSt. Paul and St. George Islands

Qagan Tayagungin Tribe of Sand PointVillage

Qawalangin Tribe of Unalaska

Rampart Village

Red Devil, Village of Red Devil

Ruby, Native Village of Ruby

Saint George Island (See Pribilof IslandsAleut Communities of St. Paul andSt. George Islands)

Saint Michael, Native Village of SaintMichael

Saint Paul Island (See Pribilof Islands AleutCommunities of St. Paul and St. GeorgeIslands)

Salamatoff, Village of Salamatoff

Savoonga, Native Village of Savoonga

Saxman, Organized Village of Saxman

Scammon Bay, Native Village ofScammon Bay

Selawik, Native Village of Selawik

Seldovia Village Tribe

Shageluk Native Village

Shaktoolik, Native Village of Shaktoolik

Sheldon’s Point, Native Village ofSheldon’s Point

Shishmaref, Native Village of Shishmaref

Shoonaq’ Tribe of Kodiak

Shungnak, Native Village of Shungnak

Sitka Tribe of Alaska

Skagway Village

Sleetmute, Village of Sleetmute

Solomon, Village of Solomon

South Naknek Village

Stebbins Community Association

Stevens, Native Village of Stevens

Stony River, Village of Stony River

Takotna Village

Tanacross, Native Village of Tanacross

Tanana, Native Village of Tanana

Tatitlek, Native Village of Tatitlek

Tazlina, Native Village of Tazlina

Telida Village

Teller, Native Village of Teller

Tetlin, Native Village of Tetlin

Tlingit and Haida, Central Council ofthe Tlingit and Haida Indian Tribes

Togiak, Traditional Village of Togiak

Tuluksak Native Community

Tuntutuliak, Native Village ofTuntutuliak

Tununak, Native Village of Tununak

Twin Hills Village

Tyonek, Native Village of Tyonek

Ugashik Village

Umkumiute Native Village

Unalakleet, Native Village of Unalakleet

Unga, Native Village of Unga

Village of Venetie (See Native Village ofVenetie Tribal Government)

Venetie, Native Village of Venetie TribalGovernment (Arctic Village and Villageof Venetie)

Wainwright, Village of Wainwright

Wales, Native Village of Wales

White Mountain, Native Village ofWhite Mountain.

Wrangell Cooperative Association

Yakutat Tlingit Tribe

SECTION 4. EFFECT ON OTHERDOCUMENTS

.01 Rev. Proc. 2001–15, 2001–1 C.B.465 is superseded. Letter rulings receivedby Indian tribal governments prior to theeffective date below are not affected by thisrevenue procedure.

SECTION 5. EFFECTIVE DATE

.01 This revenue procedure is effec-tive as of October 21, 2002.

SECTION 6. DRAFTINGINFORMATION

The principal author of this revenue pro-cedure is Carol Cook of the Office of Di-vision Counsel/Associate Chief Counsel(Tax Exempt and Government Entities). Formore information concerning this revenueprocedure, contact Ms. Cook at (202) 622–6080 (not a toll-free call).

26 CFR 601.105: Examination of returns and

claims for refund, credit or abatement; determina-

tion of correct tax liability.

Rev. Proc. 2002–66

SECTION 1. PURPOSE

.01 This revenue procedure updates Rev.Proc. 2001–52, 2001–2 C.B. 491, and iden-tifies circumstances under which the dis-closure on a taxpayer’s return of a positionwith respect to an item is adequate for thepurpose of reducing the understatement ofincome tax under § 6662(d) of the Inter-nal Revenue Code (relating to the substan-tial understatement aspect of the accuracy-related penalty), and for the purpose ofavoiding the preparer penalty under§ 6694(a) (relating to understatements dueto unrealistic positions). This revenue pro-cedure does not apply with respect to anyother penalty provisions (including the neg-ligence or disregard provisions of the § 6662accuracy-related penalty).

.02 This revenue procedure applies toany return filed on 2002 tax forms for a tax-able year beginning in 2002, and to any re-

2002–42 I.R.B. 724 October 21, 2002

turn filed on 2002 tax forms in 2003 forshort taxable years beginning in 2003.

SECTION 2. CHANGES FROM REV.PROC. 2001–52

Section 4.01(1)(d), concerning contri-butions on Form 1040, Schedule A, hasbeen revised and editorial changes havebeen made in updating Rev. Proc. 2001–52.

SECTION 3. BACKGROUND

.01 If § 6662 applies to any portion ofan underpayment of tax required to beshown on a return, an amount equal to 20percent of the portion of the underpay-ment to which the section applies is addedto the tax. (The penalty rate is 40 percentin the case of gross valuation misstate-ments under § 6662(h).) Under § 6662(b)(2),§ 6662 applies to the portion of an under-payment that is attributable to a substan-tial understatement of income tax.

.02 Section 6662(d)(1) provides thatthere is a substantial understatement of in-come tax if the amount of the understate-ment exceeds the greater of 10 percent ofthe amount of tax required to be shown onthe return for the taxable year or $5,000($10,000 in the case of a corporation otherthan an S corporation or a personal hold-ing company). Section 6662(d)(2) definesan understatement as the excess of theamount of tax required to be shown on thereturn for the taxable year over the amountof the tax that is shown on the return re-duced by any rebate (within the meaningof § 6211(b)(2)).

.03 In the case of an item not attribut-able to a tax shelter, § 6662(d)(2)(B)(ii) pro-vides that the amount of the understatementis reduced by the portion of the understate-ment attributable to any item with respectto which the relevant facts affecting theitem’s tax treatment are adequately dis-closed on the return or on a statement at-tached to the return, and there is areasonable basis for the tax treatment ofsuch item by the taxpayer.

.04 In general, this revenue procedureprovides guidance in determining when dis-closure is adequate for purposes of§ 6662(d). For purposes of this revenue pro-cedure, the taxpayer must furnish all re-quired information in accordance with theapplicable forms and instructions, and themoney amounts entered on these forms

must be verifiable. Guidance under§ 6662(d) for returns filed for 2001, 2000,and 1999 is provided in Rev. Proc. 2001–52; Rev. Proc. 2001–11, 2001–1 C.B. 275;and Rev. Proc. 99–41, 1999–2 C.B. 566, re-spectively.

SECTION 4. PROCEDURE

.01 Additional disclosure of facts rel-evant to, or positions taken with respect to,issues involving any of the items set forthbelow is unnecessary for purposes of re-ducing any understatement of income taxunder § 6662(d), provided that the formsand attachments are completed in a clearmanner and in accordance with their in-structions. The money amounts entered onthe forms must be verifiable, and the in-formation on the return must be disclosedin the manner described below. For pur-poses of this revenue procedure, a num-ber is verifiable if, on audit, the taxpayercan demonstrate the origin of the number(even if that number is not ultimately ac-cepted by the Internal Revenue Service) andthe taxpayer can show good faith in enter-ing that number on the applicable form.

(1) Form 1040, Schedule A, ItemizedDeductions:

(a) Medical and Dental Expenses: Com-plete lines 1 through 4, supplying all re-quired information.

(b) Taxes: Complete lines 5 through 9,supplying all required information. Line 8must list each type of tax and the amountpaid.

(c) Interest Expense: Complete lines 10through 14, supplying all required infor-mation. This section 4.01(1)(c) does not ap-ply to (I) amounts disallowed under§ 163(d) unless Form 4952, Investment In-terest Expense Deduction, is completed, or(ii) amounts disallowed under § 265.

(d) Contributions: Complete lines 15through 18, supplying all required infor-mation. Enter the amount of the gift re-duced by the value of any substantial benefit(goods or services) provided by the do-nee organization in consideration, in wholeor in part. Entering the amount of the giftunreduced by the value of the benefit re-ceived will not constitute adequate disclo-sure. If a contribution of $250 or more ismade, this section 4.01(1)(d) will not ap-ply unless a contemporaneous written ac-knowledgment, as required by § 170(f)(8),is obtained from the donee organization. Ifa contribution of property other than cash

is made and the amount claimed as a de-duction exceeds $500, attach a properlycompleted Form 8283, Noncash Chari-table Contributions, to the return.

(e) Casualty and Theft Losses: Com-plete Form 4684, Casualties and Thefts, andattach to the return. Each item or article forwhich a casualty or theft loss is claimedmust be listed on Form 4684.

(2) Certain Trade or Business Expenses(including, for purposes of this section4.01(2), the following six expenses as theyrelate to the rental of property):

(a) Casualty and Theft Losses: The pro-cedure outlined in section 4.01(1)(e) abovemust be followed.

(b) Legal Expenses: The amount claimedmust be stated. This section 4.01(2)(b) doesnot apply, however, to amounts properlycharacterized as capital expenditures, per-sonal expenses, or non-deductible lobby-ing or political expenditures, includingamounts that are required to be (or that are)amortized over a period of years.

(c) Specific Bad Debt Charge-off: Theamount written off must be stated.

(d) Reasonableness of Officers’Compensation: Form 1120, Schedule E,Compensation of Officers, must be com-pleted when required by its instructions. Thetime devoted to business must be expressedas a percentage as opposed to “part” or “asneeded.” This section 4.01(2)(d) does notapply to “golden parachute” payments, asdefined under § 280G. This section4.01(2)(d) will not apply to the extent thatremuneration paid or incurred exceeds the$1 million-employee-remuneration limita-tion, if applicable.

(e) Repair Expenses: The amountclaimed must be stated. This section4.01(2)(e) does not apply, however, to anyrepair expenses properly characterized ascapital expenditures or personal expenses.

(f) Taxes (other than foreign taxes): Theamount claimed must be stated.

(3) Form 1120, Schedule M–1, Recon-ciliation of Income (Loss) per Books WithIncome per Return, provided:

(a) The amount of the deviation from thefinancial books and records is not the re-sult of a computation that includes the net-ting of items; and

(b) The information provided reason-ably may be expected to apprise the Inter-nal Revenue Service of the nature of thepotential controversy concerning the taxtreatment of the item.

October 21, 2002 725 2002–42 I.R.B.

(4) Foreign Tax Items:(a) International Boycott Transactions:

Transactions disclosed on Form 5713, In-ternational Boycott Report.

(b) Treaty-Based Return Position: Trans-actions and amounts under § 6114 or§ 7701(b) as disclosed on Form 8833,Treaty-Based Return Position Disclosure.

(5) Other:(a) Moving Expenses: Complete Form

3903, Moving Expenses, and attach to thereturn.

(b) Employee Business Expenses: Com-plete Form 2106, Employee Business Ex-penses, or Form 2106-EZ, Unreimbursed

Employee Business Expenses, and attach tothe return. This section 4.01(5)(b) does notapply to club dues, or to travel expenses forany non-employee accompanying the tax-payer on the trip.

(c) Fuels Credit: Complete Form 4136,Credit for Federal Tax Paid on Fuels, andattach to the return.

(d) Investment Credit: Complete Form3468, Investment Credit, and attach to thereturn.

SECTION 5. EFFECTIVE DATE

This revenue procedure applies to anyreturn filed on 2002 tax forms for a tax-

able year beginning in 2002, and to any re-turn filed on 2002 tax forms in 2003 forshort taxable years beginning in 2003.

SECTION 6. DRAFTINGINFORMATION

The principal author of this revenue pro-cedure is John Moran of the Office of As-sociate Chief Counsel, Procedure &Administration (Administrative Provisions& Judicial Practice Division). For furtherinformation regarding this revenue proce-dure, contact Branch 2 of the Administra-tive Provisions & Judicial Practice Divisionat (202) 622–4940 (not a toll-free call).

2002–42 I.R.B. 726 October 21, 2002

Part IV. Items of General Interest

Exclusions From GrossIncome of ForeignCorporations; Correction

Announcement 2002–94

AGENCY: Internal Revenue Service(IRS), Treasury.

ACTION: Corrections to notice ofproposed rulemaking and notice ofpublic hearing.

SUMMARY: This document contains cor-rections to a notice of proposed rulemak-ing and notice of public hearing (REG–136311–01, 2002–36 I.R.B. 485 [67 FR50510]) that was published in the Fed-eral Register on Friday, August 2, 2002,relating to exclusions from gross income offoreign corporations.

FOR FURTHER INFORMATIONCONTACT: Patricia Bray (202)622–3880 (not a toll-free number).

SUPPLEMENTARY INFORMATION:

Background

The notice of proposed rulemaking andnotice of public hearing that is subject tothese corrections is under section 883 of theInternal Revenue Code.

Need for Correction

As published the notice of proposed rule-making and notice of public hearing con-tains errors that may prove to be misleadingand are in need of clarification.

Correction of Publication

Accordingly, the publication of the no-tice of proposed rulemaking and notice ofpublic hearing (REG–208280–86; REG–136311–01), which was the subject of FRDoc. 02–19127, is corrected as follows:

1. On page 50510, column 1, line 5 ofthe heading, the numbers “RIN 1545–AJ57;RIN 1545–BA07” is corrected to read “RIN1545–AJ57; RIN 1545–BB30” .

2. On page 50512, column 2, in the pre-amble under the paragraph heading “ii.Space or slot charters.”, first full para-graph, line 8 from the bottom of the para-graph, the language “ is incidental to the

operation ships or” is corrected to read “ isincidental to the operation of ships or” .

3. On page 50515, column 3, in the pre-amble under the heading “C. Comments Re-lating to § 1.883–2: Treatment of Publicly-Traded Corporations” , second paragraph,line 2 from the bottom of the paragraph, thelanguage “aggregate 50 percent of more ofthe” is corrected to read “aggregate 50 per-cent or more of the” .

4. On page 50518, column 2, in the pre-amble under the paragraph heading “3. Cer-tain limitation on benefits article restrictionsin income tax conventions applied to share-holders.” , line 3 from the top of the col-umn, the language “ limitation of benefitsarticle of the treaty” is corrected to read“ limitation on benefits article of the treaty” .

§ 1.883–1 [Corrected]

5. On page 50521, column 2, § 1.883–1(c)(3)(ii), line 6, the language “ under§ 1.883–2(f), 1.882–3(d) or 1.883–” is cor-rected to read “under §§1.883–2(f), 1.883–3(d) or 1.883–”.

6. On page 50525, column 2, § 1.883–1(h)(2), lines 5, 6 and 7, from the top ofthe column, the language “each category ofincome listed in (i) through (viii) of this sec-tion paragraph (h)(2)” is corrected to read“each category of income listed in para-graphs (h)(2)(I) through (viii) of this sec-tion” .


7. On page 50528, column 2, § 1.883–2(f)(2), line 3, the language “ that the stockis listed;” is corrected to read “ the stock islisted;” .


8. On page 50533, column 1, § 1.883–4(d)(3)(ii), lines 3 and 4, the language “ re-quirements of paragraphs (d)(3)(ii)(A) and(B) are satisfied. If the widely-held” is cor-rected to read “ requirements of paragraphs(d)(3)(ii)(A) and (B) of this section are sat-isfied. If the widely-held” .

9. On page 50534, column 2, § 1.883–4(d)(4)(iii)(B), line 3, the language “ that thestock is listed;” is corrected to read “ thestock is listed;” .

10. On page 50534, column 3, § 1.883–4(d)(4)(iv)(B), line 3, the language “this sec-

tion (as if it the language applied” iscorrected to read “ this section (as if the lan-guage applied” .

Cynthia E. Grigsby,Chief, Regulations Unit,Associate Chief Counsel

(Income Tax & Accounting).

(Filed by the Office of the Federal Register on September 13,2002, 8:45 a.m., and published in the issue of the Federal Reg-ister for September 16, 2002, 67 F.R. 58346)

Excise Taxes; Definition ofHighway Vehicle; Hearing

Announcement 2002–95

AGENCY: Internal Revenue Service(IRS), Treasury.

ACTION: Notice of public hearing onproposed rulemaking.

SUMMARY: This document contains a no-tice of public hearing on proposed regula-tions (REG–103829–99, 2002–27 I.R.B. 59)relating to the definition of a highway ve-hicle for purposes of various excise taxes.

DATES: The public hearing is beingheld on February 27, 2003, at 10 a.m.The IRS must receive written orelectronic outlines of the topics to bediscussed at the hearing by February 6,2003.

ADDRESSES: The public hearing isbeing held in Room 4718, InternalRevenue Building, 1111 ConstitutionAvenue NW, Washington, DC. Due tobuilding security procedures, visitorsmust enter at the Constitution Avenueentrance. In addition, all visitors mustpresent photo identification to enter thebuilding.

Mail outlines to: CC:ITA:RU (REG–103829–99), room 5226, Internal Rev-enue Service, POB 7604, Ben FranklinStation, Washington, DC 20044. Hand de-liver outlines Monday through Friday be-tween the hours of 8 a.m. and 5 p.m. to:CC:ITA:RU (REG–103829–99), Couri-er’s Desk, Internal Revenue Service, 1111Constitution Avenue, NW, Washington, DC.

October 21, 2002 727 2002–42 I.R.B.

Submit electronic outlines of oral com-ments to the IRS Internet site atwww.irs.gov/regs.

FOR FURTHER INFORMATIONCONTACT: Concerning submissions ofcomments, the hearing, and/or to beplaced on the building access list toattend the hearing Treena Garrett, (202)622–7180 (not a toll-free number).

SUPPLEMENTARY INFORMATION:

The subject of the public hearing is thenotice of proposed regulations (REG–

103829–99) that was published in the Fed-eral Register on June 6, 2002 (67 FR38913).

The rules of 26 CFR 601.601(a)(3) ap-ply to the hearing. Persons who have sub-mitted written comments and wish topresent oral comments at the hearing mustsubmit an outline of the topics to be dis-cussed and the amount of time to be de-voted to each topic (signed original andeight (8) copies) by February 6, 2003.

A period of 10 minutes is allotted to eachperson for presenting oral comments. Af-ter the deadline for receiving outlines haspassed, the IRS will prepare an agenda con-taining the schedule of speakers. Copies ofthe agenda will be made available, free of

charge, at the hearing. Because of accessrestrictions, the IRS will not admit visi-tors beyond the immediate entrance areamore than 30 minutes before the hearingstarts. For information about having yourname placed on the building access list toattend the hearing, see the “FOR FUR-THER INFORMATION CONTACT” sec-tion of this document.

Cynthia E. Grigsby,Chief, Regulations Unit,Associate Chief Counsel

(Income Tax and Accounting).

(Filed by the Office of the Federal Register on September 13,2002, 8:45 a.m., and published in the issue of the Federal Reg-ister for September 16, 2002, 67 F.R. 58346)

2002–42 I.R.B. 728 October 21, 2002

Definition of TermsRevenue rulings and revenue procedures(hereinafter referred to as“rulings”) thathave an effect on previous rulings use thefollowing defined terms to describe theeffect:

Amplified describes a situation whereno change is being made in a prior pub-lished position, but the prior position isbeing extended to apply to a variation ofthe fact situation set forth therein. Thus, ifan earlier ruling held that a principleapplied to A, and the new ruling holdsthat the same principle also applies to B,the earlier ruling is amplified. (Comparewith modified, below).

Clarified is used in those instanceswhere the language in a prior ruling isbeing made clear because the languagehas caused, or may cause, some confu-sion. It is not used where a position in aprior ruling is being changed.

Distinguished describes a situationwhere a ruling mentions a previouslypublished ruling and points out an essen-tial difference between them.

Modified is used where the substanceof a previously published position isbeing changed. Thus, if a prior rulingheld that a principle applied to A but notto B, and the new ruling holds that it

applies to both A and B, the prior rulingis modified because it corrects a pub-lished position. (Compare with amplifiedand clarified, above).

Obsoleted describes a previously pub-lished ruling that is not considered deter-minative with respect to future transac-tions. This term is most commonly usedin a ruling that lists previously publishedrulings that are obsoleted because ofchanges in law or regulations. A rulingmay also be obsoleted because the sub-stance has been included in regulationssubsequently adopted.

Revoked describes situations where theposition in the previously published rul-ing is not correct and the correct positionis being stated in the new ruling.

Superseded describes a situation wherethe new ruling does nothing more thanrestate the substance and situation of apreviously published ruling (or rulings).Thus, the term is used to republish underthe 1986 Code and regulations the sameposition published under the 1939 Codeand regulations. The term is also usedwhen it is desired to republish in a singleruling a series of situations, names, etc.,that were previously published over aperiod of time in separate rulings. If the

new ruling does more than restate thesubstance of a prior ruling, a combinationof terms is used. For example, modifiedand superseded describes a situationwhere the substance of a previously pub-lished ruling is being changed in part andis continued without change in part and itis desired to restate the valid portion ofthe previously published ruling in a newruling that is self contained. In this case,the previously published ruling is firstmodified and then, as modified, is super-seded.

Supplemented is used in situations inwhich a list, such as a list of the names ofcountries, is published in a ruling and thatlist is expanded by adding further namesin subsequent rulings. After the originalruling has been supplemented severaltimes, a new ruling may be published thatincludes the list in the original ruling andthe additions, and supersedes all prior rul-ings in the series.

Suspended is used in rare situations toshow that the previous published rulingswill not be applied pending some futureaction such as the issuance of new oramended regulations, the outcome ofcases in litigation, or the outcome of aService study.

AbbreviationsThe following abbreviations in currentuse and formerly used will appear inmaterial 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.—Statements 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.

October 21, 2002 i 2002–42 I.R.B.

Numerical Finding List1

Bulletin 2002–26 through 2002–41

Announcements:

2002–59, 2002–26 I.R.B. 282002–60, 2002–26 I.R.B. 282002–61, 2002–27 I.R.B. 722002–62, 2002–27 I.R.B. 722002–63, 2002–27 I.R.B. 722002–64, 2002–27 I.R.B. 722002–65, 2002–29 I.R.B. 1822002–66, 2002–29 I.R.B. 1832002–67, 2002–30 I.R.B. 2372002–68, 2002–31 I.R.B. 2832002–69, 2002–31 I.R.B. 2832002–70, 2002–31 I.R.B. 2842002–71, 2002–32 I.R.B. 3232002–72, 2002–32 I.R.B. 3232002–73, 2002–33 I.R.B. 3872002–74, 2000–33 I.R.B. 3872002–75, 2002–34 I.R.B. 4162002–76, 2002–35 I.R.B. 4712002–77, 2002–35 I.R.B. 4712002–78, 2002–36 I.R.B. 5142002–79, 2002–36 I.R.B. 5152002–80, 2002–36 I.R.B. 5152002–81, 2002–37 I.R.B. 5332002–82, 2002–37 I.R.B. 5332002–83, 2002–38 I.R.B. 5642002–84, 2002–37 I.R.B. 5332002–85, 2002–39 I.R.B. 6242002–86, 2002–39 I.R.B. 6242002–87, 2002–39 I.R.B. 6242002–88, 2002–38 I.R.B. 5642002–89, 2002–39 I.R.B. 6262002–90, 2002–40 I.R.B. 6842002–91, 2002–40 I.R.B. 6852002–92, 2002–41 I.R.B. 7092002–93, 2002–41 I.R.B. 709

Court Decisions:

2075, 2002–38 I.R.B. 548

Notices:

2002–42, 2002–27 I.R.B. 362002–43, 2002–27 I.R.B. 382002–44, 2002–27 I.R.B. 392002–45, 2002–28, I.R.B. 932002–46, 2002–28 I.R.B. 962002–47, 2002–28 I.R.B. 972002–48, 2002–29 I.R.B. 1302002–49, 2002–29 I.R.B. 1302002–50, 2002–28 I.R.B. 982002–51, 2002–29 I.R.B. 1312002–52, 2002–30 I.R.B. 1872002–53, 2002–30 I.R.B. 1872002–54, 2002–30 I.R.B. 1892002–55, 2002–36 I.R.B. 4812002–56, 2002–32 I.R.B. 3192002–57, 2002–33 I.R.B. 3792002–58, 2002–35 I.R.B. 4322002–59, 2002–36 I.R.B. 481

Notices—Continued:

2002–60, 2002–36 I.R.B. 4822002–61, 2002–38 I.R.B. 5632002–62, 2002–39 I.R.B. 5742002–63, 2002–40 I.R.B. 6442002–64, 2002–41 I.R.B. 6902002–65, 2002–41 I.R.B. 690

Proposed Regulations:

REG–248110–96, 2002–26 I.R.B. 19REG–110311–98, 2002–28 I.R.B. 109REG–103823–99, 2002–27 I.R.B. 44REG–103829–99, 2002–27 I.R.B. 59REG–103735–00, 2002–28 I.R.B. 109REG–106457–00, 2002–26 I.R.B. 23REG–106871–00, 2002–30 I.R.B. 190REG–106876–00, 2002–34 I.R.B. 392REG–106879–00, 2002–34 I.R.B. 402REG–107524–00, 2002–28 I.R.B. 110REG–115285–01, 2002–27 I.R.B. 62REG–115781–01, 2002–33 I.R.B. 380REG–116644–01, 2002–31 I.R.B. 268REG–123345–01, 2002–32 I.R.B. 321REG–126024–01, 2002–27 I.R.B. 64REG–136311–01, 2002–36 I.R.B. 485REG–164754–01, 2002–30 I.R.B. 212REG–165868–01, 2002–31 I.R.B. 270REG–106359–02, 2002–34 I.R.B. 405REG–122564–02, 2002–26 I.R.B. 25REG–123305–02, 2002–26 I.R.B. 26REG–124256–02, 2002–33 I.R.B. 383REG–133254–02, 2002–34 I.R.B. 412REG–134026–02, 2002–40 I.R.B. 684

Revenue Procedures:

2002–43, 2002–28 I.R.B. 992002–44, 2002–26 I.R.B. 102002–45, 2002–27 I.R.B. 402002–46, 2002–28 I.R.B. 1052002–47, 2002–29 I.R.B. 1332002–48, 2002–37 I.R.B. 5312002–49, 2002–29 I.R.B. 1722002–50, 2002–29 I.R.B. 1732002–51, 2002–29 I.R.B. 1752002–52, 2002–31 I.R.B. 2422002–53, 2002–31 I.R.B. 2532002–54, 2002–35 I.R.B. 4322002–55, 2002–35 I.R.B. 4352002–56, 2002–36 I.R.B. 4832002–57, 2002–39 I.R.B. 5752002–58, 2002–40 I.R.B. 6442002–59, 2002–39 I.R.B. 6152002–60, 2002–40 I.R.B. 6452002–61, 2002–39 I.R.B. 6162002–62, 2002–40 I.R.B. 6832002–63, 2002–41 I.R.B. 6912002–65, 2002–41 I.R.B. 700

Revenue Rulings:

2002–38, 2002–26 I.R.B. 42002–39, 2002–27 I.R.B. 332002–40, 2002–27 I.R.B. 302002–41, 2002–28 I.R.B. 75

Revenue Rulings—Continued:

2002–42, 2002–28 I.R.B. 762002–43, 2002–28 I.R.B. 852002–44, 2002–28 I.R.B. 842002–45, 2002–29 I.R.B. 1162002–46, 2002–29 I.R.B. 1172002–47, 2002–29 I.R.B. 1192002–48, 2002–31 I.R.B. 2392002–49, 2002–32 I.R.B. 2882002–50, 2002–32 I.R.B. 2922002–51, 2002–33 I.R.B. 3272002–52, 2002–34 I.R.B. 3882002–53, 2002–35 I.R.B. 4272002–54, 2002–37 I.R.B. 5272002–55, 2002–37 I.R.B. 5292002–56, 2002–37 I.R.B. 5262002–57, 2002–37 I.R.B. 5262002–58, 2002–38 I.R.B. 5412002–59, 2002–38 I.R.B. 5572002–60, 2002–40 I.R.B. 6412002–61, 2002–40 I.R.B. 6392002–64, 2002–41 I.R.B. 688

Treasury Decisions:

8997, 2002–26 I.R.B. 68998, 2002–26 I.R.B. 18999, 2002–28 I.R.B. 789000, 2002–28 I.R.B. 879001, 2002–29 I.R.B. 1289002, 2002–29 I.R.B. 1209003, 2002–32 I.R.B. 2949004, 2002–33 I.R.B. 3319005, 2002–32 I.R.B. 2909006, 2002–32 I.R.B. 3159007, 2002–33 I.R.B. 3499008, 2002–33 I.R.B. 3359009, 2002–33 I.R.B. 3289010, 2002–33 I.R.B. 3419011, 2002–33 I.R.B. 3569012, 2002–34 I.R.B. 3899013, 2002–38 I.R.B. 5429014, 2002–35 I.R.B. 4299015, 2002–40 I.R.B. 6429016, 2002–40 I.R.B. 628

1 A cumulative list of all revenue rulings, revenue

procedures, Treasury decisions, etc., published in

Internal Revenue Bulletins 2002–1 through 2002–25 is

in Internal Revenue Bulletin 2002–26, dated July 1, 2002.

2002–42 I.R.B. ii October 21, 2002

Finding List of Current Actionson Previously Published Items1

Bulletin 2002–26 through 2002–41

Announcements:

98–99Superseded byRev. Proc. 2002–44, 2002–26 I.R.B. 10

2000–4Modified byAnn. 2002–60, 2002–26 I.R.B. 28


Notices:

97–26Modified and superseded byNotice 2002–62, 2002–39 I.R.B. 574

2001–6Superseded byNotice 2002–63, 2002–40 I.R.B. 644

2001–62Modified and superseded byNotice 2002–62, 2002–39 I.R.B. 574

Proposed Regulations:

REG–208280–86Withdrawn byREG–136311–01, 2002–36 I.R.B. 485

REG–209114–90Corrected byAnn. 2002–65, 2002–29 I.R.B. 182


REG–103823–99Corrected byAnn. 2002–67, 2002–30 I.R.B. 237Ann. 2002–79, 2002–36 I.R.B. 515



REG–105369–00Clarified byNotice 2002–52, 2002–30 I.R.B. 187Corrected byAnn. 2002–67, 2002–30 I.R.B. 237



Proposed Regulations—Continued:









Revenue Procedures:


91–23Modified and superseded byRev. Proc. 2002–52, 2002–31 I.R.B. 242





96–53Amplified byRev. Proc. 2002–52, 2002–31 I.R.B. 242

2001–12Obsoleted byT.D. 9004, 2002–33 I.R.B. 331


Revenue Procedures—Continued:



2001–46Modified and amplified byRev. Proc. 2002–65, 2002–41 I.R.B. 700




2002–9Modified and amplified byRev. Proc. 2002–46, 2002–28 I.R.B. 105Rev. Proc. 2002–65, 2002–41 I.R.B. 700Amplified, clarified, and modified byRev. Proc. 2002–54, 2002–35 I.R.B. 432

2002–13Modified byRev. Proc. 2002–45, 2002–27 I.R.B. 40

2002–15Modified and superseded byRev. Proc. 2002–59, 2002-39 I.R.B. 615

2002–19Amplified and clarified byRev. Proc. 2002–54, 2002–35 I.R.B. 432

Revenue Rulings:


55–534Distinguished byRev. Rul. 2002–60, 2002–40 I.R.B. 641





1 A cumulative list of current actions on previously published

items in Internal Revenue Bulletins 2002–1 through 2002–25 is

in Internal Revenue Bulletin 2002–26, dated July 1, 2002.

October 21, 2002 iii 2002–42 I.R.B.

Revenue Rulings—Continued:


69–259Modified and superseded byRev. Rul. 2002–50, 2002–32 I.R.B. 292

69–595Obsoleted in part byT.D. 9010, 2002–33 I.R.B. 341

70–608Obsoleted in part byT.D. 9010, 2002–33 I.R.B. 341


76–225Revoked byREG–115781–01, 2002–33 I.R.B. 380


85–50Obsoleted byT.D. 2002–33 I.R.B. 341

92–17Amplified byRev. Rul. 2002–49, 2002–32 I.R.B. 288

92–75Clarified byRev. Proc. 2002–52, 2002–31 I.R.B. 242


94–76Amplified byRev. Rul. 2002–42, 2002–28 I.R.B. 76

Treasury Decisions:

8925Corrected byAnn. 2002–89, 2002–39 I.R.B. 626




2002–42 I.R.B. iv October 21, 2002�� 496-919/60053