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 suggestons 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. ANNOUNCEMENT RELATING TO DECISIONS OF THE TAX COURT OF THE UNITED STATES It is the policy of the Internal Revenue Service to announce in the Internal Revenue Bulletin at the earliest practicable date the determination of the Commissioner to acquiesce or not acquiesce in a decision of The Tax Court of the United States which disallows a deficiency in tax determined by the Commissioner to be due. Notice that the Commissioner has acquiesced or nonacquiesced in a decision of The Tax Court relates only to the issue or issues decided adversely to the Government. Actions of the acquiescences in adverse decisions should be relied on by Revenue officers and others concerned as conclusions of the Service only to the application of the law to the facts in the particular case. Caution should be exercised in extending the application of the decision to a similar case unless the facts and circumstances are substantially the same, and consideration should be given to the effect of new legislation, regulations, and rulings as well as subsequent court decisions and actions thereon. Acquiescence in a decision means acceptance by the Service of the conclusion reached, and does not necessarily mean acceptance and approval of any or all of the reasons assigned by the Court for its conclusions. No announcements are made in the Bulletin with respect to memorandum opinions of The Tax Court. The announcements published in the weekly Internal Revenue Bulletins are consolidated semiannually and annually. The semiannual consolidation appears in the first Bulletins for July and January and in the Cumulative Bulletin for the first half of the year, and the annual in the Cumulative Bulletin for the last half of the The Commissioner ACQUIESCES in the following decisions: year. Maurer, Inc., J. A. (Sept. 26, 1958). 56500 Sebat, Frankie L., executrix of estate of Eugene, 54755 30 684 28 1154 30 30 54756 Webb, Eugene Merrick, estate of (Sept. 10, 1958)". 54756 Webb, Eugene Merrick, estate of, and Frankie L. 30 54755 The Commissioner does NOT ACQUIESCE in the following decisions: The page citation of this decision which has not been reported will be published in the Cumulative Bulletin. For ready reference, the date of the decision is shown after the taxpayer's name. 1 Acquiescence relates to the issue whether interest on over assessments attributable to section 722 of the 1939 Code, which was held includable in the corporation's 1951 income, constituted abnormal income within the meaning of section 456 of the 1939 Code. Acquiescence does not imply that an allocation of the cxpenses concerned might not be required. PART I RULINGS AND DECISIONS UNDER THE INTERNAL REVENUE CODE OF 1954 Rulings and decisions published in Part I of the Internal Revenue Bulletin are based on the application of provisions of the Internal Revenue Code of 1954 and, unless otherwise stated in the rulings or decisions, are published without consideration as to any application of the provisions of the Internal Revenue Code of 1939 or related public laws. SECTION 547.-DEDUCTIONS FOR DEFICIENCY DIVIDENDS Procedure as to the suspension of assessment of personal holding company tax deficiencies in order to provide taxpayers with sufficient time for making payments of deficiency dividends where an agreement has been signed under the provisions of section 547 (c)(3) of the 1954 Code. See Rev. Proc. 59-1, page 61. SECTION 641.-IMPOSITION OF TAX 26 CFR 1.641: Termination of estates and trusts. T.D. 63531 TITLE 26-INTERNAL REVENUE, 1954.-CHAPTER I, SUBCHAPTER A, PART I.— INCOME TAX; TAXABLE YEARS BEGINNING AFTER DECEMBER 31, 1953 Amendments of regulations under section 641 (b) of the Internal DEPARTMENT OF THE TREASURY, OFFICE OF COMMISSIONER OF INTERNAL REVENUE, Washington 25, D.C. To Officers and Employees of the Internal Revenue Service and Others Concerned: On August 28, 1957, notice of proposed rule making regarding amendment to the Income Tax Regulations (26 CFR Part 1) under section 641 (b) of the Internal Revenue Code of 1954 was published in the Federal Register (22 F.R. 6917). After consideration of all such relevant matter as was presented by interested persons regarding the rules proposed, paragraph (c) of § 1.641(b)-3 of the Income Tax Regulations (26 CFR Part 1) is amended to read as follows: 81.641(b)-3 TERMINATION OF ESTATES AND TRUSTS. 124 F.R. 300. (c) (1) Except as provided in subparagraph (2) of this paragraph, during the period between the occurrence of an event which causes a trust to terminate and the time when the trust is considered as terminated under this section, whether or not the income and the excess of capital gains over capital losses of the trust are to be considered as amounts required to be distributed currently to the ultimate distributee for the year in which they are received depends upon the principles stated in § 1.651(a)-2. See § 1.663 et seq. for application of the separate share rule. (2) (i) Except in cases to which the last sentence of this subdivision applies, for taxable years of a trust ending before September 1, 1957, subparagraph (1) of this paragraph shall not apply and the rule of subdivision (ii) of this subparagraph shall apply unless the trustee elects to have subparagraph (1) of this paragraph apply. Such election shall be made by the trustee in a statement filed on or before April 15, 1959, with the district director with whom such trust's return for any such taxable year was filed. The election provided by this subdivision shall not be available if the treatment given the income and the excess of capital gains over capital losses for taxable years for which returns have been filed was consistent with the provisions of subparagraph (1) of this paragraph. (ii) The rule referred to in subdivision (i) of this subparagraph is as follows: During the period between the occurrence of an event which causes a trust to terminate and the time when a trust is considered as terminated under this section, the income and the excess of capital gains over capital losses of the trust are in general considered as amounts required to be distributed for the year in which they are received. For example, a trust instrument provides for the payment of income to A during her life, and upon her death for the payment of the corpus to B. The trust reports on the basis of the calendar year. A dies on November 1, 1955, but no distribution is made to B until January 15, 1956. The income of the trust and the excess of capital gains over capital losses for the entire year 1955, to the extent not paid, credited, or required to be distributed to A or A's estate, are treated under section 661 and 662 as amounts required to be distributed to B for the year 1955. (This Treasury Decision is issued under the authority contained in section 7805 of the Internal Revenue Code of 1954 (68A Stat. 917; 26 U.S.C. 7805).) Approved January 8, 1959. FRED C. SCRIBNER, JR., DANA LATHAM, Commissioner of Internal Revenue. Acting Secretary of the Treasury. (Filed by the Division of the Federal Register on January 13, 1959, 8:48 a. m., and published in the issue of the Federal Register for January 14, 1959, 24 F.R. 300.) 494366-59-2 |