Contributions to the following organizations are no longer deductible under section 170 of the Internal Revenue Code of 1954. Unless otherwise indicated these organizations are listed in the Cumulative List, IRS Publication No. 78, revised to June 30, 1957.

Cincinnati Bickford Foundation, The, Fond | Geist Foundation, Irving, Newark, N. J. du Lac, Wis. (Deductibility terminated (Deductibility terminated as of January as of June 2, 1958.) 1, 1955.)

Davella Mills Foundation, The, Montclair, N. J. (Deductibility terminated as of October 31, 1957.)

Wayne Engineering Research Institute, Detroit, Mich. (Deductibility terminated as of June 21, 1957.)

This is not a new organization. The name should have appeared in the Cumulative List (IRS Publication No. 78) revised to June 30, 1957.

Correction to the organization name or address previously published.

Correction to the entry published in IRB 1958-26, 44, which shows no limited period for deduction of contributions.

The prior published listing of this organization which shows contributions deductible for a limited period is amended.

U. S. GOVERNMENT PRINTING OFFICE: 1959

HIGHLIGHTS OF THIS ISSUE

INCOME TAX:
Income earned by a certain nonprofit corporation or-
ganized for the purpose of acquiring and operating
a water works system for a city is not subject to tax;
interest on the bonds issued by the corporation to
finance the purchase of the system is exempt from

tax.

Expenditures for clearing brush from productive land
are not expenditures for soil or water conservation
deductible under section 175 of the 1954 Code, but
represent ordinary and necessary business expenses
deductible under section 162 of the Code.

Rev. Rul. 59-41, page 8.

Rev. Rul. 59-12, page 10.

Rev. Rul. 59-43, page 12.

For purposes of determining the personal holding com-
pany status of a corporation, an individual stock-
holder is not considered as constructively owning the
stock owned by his aunt or uncle.
Bonds of different local housing authorities, issued Rev. Rul. 59-44,
under agreement with the Federal Public Housing
Administration, are not “substantially identical" se-
curities within the meaning of section 1091 of the
Code, which relates to wash sales of stock or securities.

page 13.

page 73.

Payments to be made under a decree of divorce or sepa- Rev. Rul. 59-45,
rate maintenance over a period of less than ten years,
but which are subject to certain contingencies, qualify
as periodic payments of alimony under both the
1939 and the 1954 Codes.

The regulations have been amended to extend the 30-
percent corporate normal-tax rate to taxable years
beginning before July 1, 1959.

EMPLOYMENT TAXES:

T.D. 6350,

page 7.

59-11, page 80.

For purposes of credit against the Federal unemploy- Announcement
ment tax for 1958, the Secretary of Labor has certified
the 48 States, Alaska, Hawaii, and the District of
Columbia, and the unemployment compensation laws
thereof.

(Continued on page 3)

Index page 74

TREASURY DEPARTMENT • INTERNAL REVENUE SERVICE

494287-59-1

INTRODUCTION

The Internal Revenue Bulletin is the authoritative instrument of the Commissioner of Internal Revenue for the announcement of official rulings and procedures of the Internal Revenue Service, and for the publication of Treasury Decisions, Executive Orders, tax conventions, legislation, and court decisions pertaining to internal revenue matters. Other items considered to be of general interest are also published in the Bulletin, such as announcements relating to proposed regulations published with notice of proposed rulemaking, announcements relating to decisions of the Tax Court of the United States, announcements of the disbarment and suspension of attorneys and agents from practice before the Treasury Department, Delegation Orders, etc.

It is the policy of the Service to publish in the Bulletin all substantive and procedural rulings of importance or of general interest, the publication of which is considered necessary to promote a uniform application of the laws administered by the Service. It is also the policy to publish all rulings and statements of procedures which supersede, revoke, modify, or amend any published ruling or procedure. Except where otherwise indicated, published rulings and procedures apply retroactively. Rulings and statements of procedures relating solely to matters of internal management are not published. However, statements of internal practices and procedures affecting rights or duties of taxpayers, or industry regulation, which appear in internal management documents, are published. Revenue Rulings and Revenue Procedures are based upon rulings and internal management documents prepared in the various divisions of the National Office, including the Office of the Chief Counsel for the Internal Revenue Service. In the preparation of these, caution is exercised to conceal the identity of the taxpayer, as well as any confidential personal and business information. All Revenue Rulings published in the Bulletin have received the consideration and concurrence of the Chief Counsel.

Revenue Rulings and Revenue Procedures reported in the Bulletin do not have the force and effect of Treasury Department Regulations (including Treasury Decisions), but are published to provide precedents to be used in the disposition of other cases, and may be cited and relied upon for that purpose. Since each published ruling represents the conclusion of the Service as to the application of the law to the entire state of facts involved, Service personnel and others concerned are cautioned against reaching the same conclusions in other cases unless the facts and circumstances are substantially the same. In applying rulings and procedures published in the Bulletin, personnel of the Service and others concerned must consider the

(Continued on page 3)

DEPOSITED BY THE

STATES OF AMERICA

3

INTRODUCTION-(Continued from page 2)

effect of subsequent legislation, regulations, court decisions, rulings and procedures.

Each published ruling is designated as a "Revenue Ruling," and each published procedure is designated as a "Revenue Procedure." These should be cited by reference to the year of issuance and the Bulletin and page where reported. Thus, Revenue Ruling No. 11 for 1958, which is reported on page 8 of Bulletin No. 2 for 1958, should be cited as "Rev. Rul. 58-11, I. R. B. 1958-2, 8," until it appears in the Cumulative Bulletin, when it should be cited as "Rev. Rul. 58-11, C. B. 1958-1, -." Similarly, Revenue Procedure No. 1 for 1958, which is reported on page 15 of Bulletin No. 3 for 1958, should be cited as "Rev. Proc. 58-1, I. R. B. 1958-3, 15," until such time as it appears in the Cumulative Bulletin. Revenue Rulings are keyed to the applicable sections of the Internal Revenue Code and regulations. The Bulletin is published weekly, and the contents thereof are consolidated at least semiannually into a permanent Cumulative Bulletin. Persons so desiring may subscribe to the Bulletin through the Superintendent of Documents, as indicated below.

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 25, D. C. Price 20 cents (single copy). Subscription price: $6 a year; $2.75 additional for foreign mailing.

HIGHLIGHTS OF THIS ISSUE-Continued from page 1

EXCISE TAXES:

Regulations relating to documentary stamp taxes have T.D. 6351,
been adopted.

So-called “manhole covers” for automobile truck tank
and trailer tank bodies are considered to be automo-
bile parts or accessories for purposes of the manu-
facturers tax.

page 17. Rev. Rul. 59–46,

Page 16.

Announcement of action on decisions of the Tax Court of Page 5. the United States.

ANNOUNCEMENT RELATING TO PROPOSED REGULATIONS PUBLISHED WITH NOTICE OF PROPOSED RULEMAKING

Under the Administrative Procedure Act, changes in regulations are (with certain exceptions described in such act) published in the Federal Register in tentative or proposed form to provide interested parties with an opportunity to file their objections or suggestions for consideration prior to final adoption of such regulations. The Internal Revenue Service will announce in the Internal Revenue Bulletin the issuance of tentative or proposed regulations relating to internal revenue matters which have been published in the Federal Register with notice of proposed rulemaking. These announcements will appear in the Bulletin during the period which has been prescribed for the submission and consideration of any views, arguments, or suggestions pertaining to the proposed regulations so published. Statement of such views, arguments or suggestions should be submitted in writing in duplicate to the Commissioner of Internal Revenue, Washington 25, D. C.